Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001130144 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-33063 | ||
Entity Registrant Name | SIERRA BANCORP | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 33-0937517 | ||
Entity Address, Address Line One | 86 North Main Street | ||
Entity Address, City or Town | Porterville | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 93257 | ||
City Area Code | 559 | ||
Local Phone Number | 782-4900 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 380 | ||
Title of 12(b) Security | Common Stock, No Par Value | ||
Trading Symbol | BSRR | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 15,296,888 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 65,556 | $ 72,439 |
Interest-bearing deposits in banks | 14,521 | 1,693 |
Cash and cash equivalents | 80,077 | 74,132 |
Securities available-for-sale | 600,799 | 560,479 |
Loans and leases: | ||
Gross loans and leases | 1,762,565 | 1,731,928 |
Allowance for loan and lease losses | (9,923) | (9,750) |
Deferred loan and lease costs, net | 2,896 | 2,602 |
Net loans and leases | 1,755,538 | 1,724,780 |
Foreclosed assets | 800 | 1,082 |
Premises and equipment, net | 27,435 | 29,500 |
Goodwill | 27,357 | 27,357 |
Other intangible assets, net | 5,381 | 6,455 |
Company owned life insurance | 50,517 | 48,153 |
Other assets | 45,915 | 50,564 |
Total assets | 2,593,819 | 2,522,502 |
Deposits: | ||
Non-interest bearing | 690,950 | 662,527 |
Interest bearing | 1,477,424 | 1,453,813 |
Total deposits | 2,168,374 | 2,116,340 |
Repurchase agreements | 25,711 | 16,359 |
Short-term borrowings | 20,000 | 56,100 |
Subordinated debentures, net | 34,945 | 34,767 |
Other liabilities | 35,504 | 25,912 |
Total liabilities | 2,284,534 | 2,249,478 |
Commitments and contingent liabilities (Notes 6 & 13) | ||
Shareholders' equity | ||
Serial Preferred stock, no par value; 10,000,000 shares authorized; none issued; | ||
Common stock, no par value; 24,000,000 shares authorized; 15,284,538 and 15,300,460 shares issued and outstanding in 2019 and 2018, respectively | 113,179 | 112,507 |
Additional paid-in capital | 3,307 | 3,066 |
Retained earnings | 186,867 | 164,117 |
Accumulated other comprehensive gain (loss), net of taxes of $2,490 in 2019 and $(2,798) in 2018 | 5,932 | (6,666) |
Total shareholders' equity | 309,285 | 273,024 |
Total liabilities and shareholder's equity | $ 2,593,819 | $ 2,522,502 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 24,000,000 | 24,000,000 |
Common Stock, Shares, Issued | 15,284,538 | 15,300,460 |
Common Stock, Shares, Outstanding | 15,284,538 | 15,300,460 |
Accumulated Other Comprehensive Income Loss Tax | $ 2,490 | $ (2,798) |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Interest and dividend income | |||||
Loans and leases, including fees | $ 95,898 | $ 87,792 | $ 68,227 | ||
Taxable securities | 10,139 | 9,548 | 8,614 | ||
Tax-exempt securities | 4,534 | 4,060 | 3,711 | ||
Dividend income on securities | 16 | ||||
Federal funds sold and other | 376 | 238 | 356 | ||
Total interest income | 110,947 | 101,638 | 80,924 | ||
Interest expense | |||||
Deposits | 11,380 | 7,260 | 3,762 | ||
Short-term borrowings | 362 | 253 | 93 | ||
Subordinated debentures | 1,836 | 1,731 | 1,368 | ||
Total interest expense | 13,578 | 9,244 | 5,223 | ||
Net interest income | 97,369 | 92,394 | 75,701 | ||
Provision (benefit) for loan losses | 2,550 | 4,350 | (1,140) | ||
Net interest income after provision for loan and lease losses | 94,819 | 88,044 | 76,841 | ||
Non-interest income | |||||
Service charges on deposits | 12,742 | 12,439 | 11,230 | ||
Gain on sale of loans | 3 | ||||
Checkcard fees | 6,584 | 5,878 | 4,955 | ||
Net (losses) gains on sale of securities available-for-sale | (198) | [1] | 2 | [1] | 500 |
Increase in cash surrender value of life insurance | 2,184 | 591 | 1,640 | ||
Other income | 2,165 | 2,654 | 3,451 | ||
Total non-interest income | 23,477 | 21,564 | 21,779 | ||
Non-interest expense | |||||
Salaries and employee benefits | 35,978 | [1] | 36,133 | [1] | 31,506 |
Occupancy and equipment | 9,845 | [1] | 10,295 | [1] | 9,590 |
Acquisition costs | 22 | 449 | 2,225 | ||
Other | 24,733 | 23,147 | 22,120 | ||
Total non-interest expense | 70,578 | 70,024 | 65,441 | ||
Income before income taxes | 47,718 | 39,584 | 33,179 | ||
Provision for income taxes | 11,757 | 9,907 | 13,640 | ||
Net income | $ 35,961 | $ 29,677 | $ 19,539 | ||
Earnings per share | |||||
Basic | $ 2.35 | $ 1.94 | $ 1.38 | ||
Diluted | $ 2.33 | $ 1.92 | $ 1.36 | ||
Weighted average shares outstanding, basic | 15,311,113 | 15,261,794 | 14,172,196 | ||
Weighted average shares outstanding, diluted | 15,437,111 | 15,432,120 | 14,357,782 | ||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 35,961 | $ 29,677 | $ 19,539 | |
Unrealized gain (loss) on securities: | ||||
Unrealized holding gain (loss) arising during period | 17,686 | (6,154) | 231 | |
Reclassification adjustment for losses (gains) included in net income | [1] | 198 | (2) | (500) |
Other comprehensive gain (loss), before tax | 17,884 | (6,156) | (269) | |
Income tax (expense) benefit related to items of other comprehensive income | (5,286) | 1,820 | 112 | |
Total other comprehensive gain (loss), net of tax | 12,598 | (4,336) | (157) | |
Comprehensive income | $ 48,559 | $ 25,341 | $ 19,382 | |
[1] | Amounts are included in net losses (gains) on securities available-for-sale on the Consolidated Statements of Income in non-interest income. Income tax expense (benefit) associated with the reclassification adjustment for the years ended 2019, 2018 and 2017 was $(59,000), $1,000 and $210,000 respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Reclassification adjustment for (losses) gains on securities available-for-sale included in net income, tax | $ (59) | $ 1 | $ 210 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Total |
Balance at Dec. 31, 2016 | $ 72,626 | $ 2,832 | $ 132,180 | $ (1,760) | $ 205,878 |
Balance (in shares) at Dec. 31, 2016 | 13,776,589 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 19,539 | 19,539 | |||
Other comprehensive gain (loss), net of tax | (157) | (157) | |||
Tax act reclassification | 413 | (413) | |||
Exercise of stock options | $ 1,141 | (377) | 764 | ||
Exercise of stock options (in shares) | 70,340 | ||||
Stock compensation costs | 476 | 476 | |||
Stock issued-acquisition | $ 37,371 | 6 | 37,377 | ||
Stock issued-acquisition (in shares) | 1,376,431 | ||||
Cash dividends | (7,935) | (7,935) | |||
Balance at Dec. 31, 2017 | $ 111,138 | 2,937 | 144,197 | (2,330) | 255,942 |
Balance (in shares) at Dec. 31, 2017 | 15,223,360 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 29,677 | 29,677 | |||
Other comprehensive gain (loss), net of tax | (4,336) | (4,336) | |||
Exercise of stock options | $ 1,369 | (238) | 1,131 | ||
Exercise of stock options (in shares) | 77,100 | ||||
Stock compensation costs | 373 | 373 | |||
Stock issued-acquisition | (6) | (6) | |||
Cash dividends | (9,757) | (9,757) | |||
Balance at Dec. 31, 2018 | $ 112,507 | 3,066 | 164,117 | (6,666) | 273,024 |
Balance (in shares) at Dec. 31, 2018 | 15,300,460 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 35,961 | 35,961 | |||
Other comprehensive gain (loss), net of tax | 12,598 | 12,598 | |||
Exercise of stock options | $ 1,337 | (249) | 1,088 | ||
Exercise of stock options (in shares) | 82,681 | ||||
Stock compensation costs | 490 | 490 | |||
Stock repurchase | $ (665) | (1,879) | $ (2,544) | ||
Stock repurchase (in shares) | (98,603) | (98,603) | |||
Cash dividends | (11,332) | $ (11,332) | |||
Balance at Dec. 31, 2019 | $ 113,179 | $ 3,307 | $ 186,867 | $ 5,932 | $ 309,285 |
Balance (in shares) at Dec. 31, 2019 | 15,284,538 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.74 | $ 0.64 | $ 0.56 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 35,961 | $ 29,677 | $ 19,539 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (gain) on sales of securities | 198 | (2) | (500) |
Gain on sale of loans | 0 | 0 | (3) |
Loss on disposal of fixed assets | 28 | 16 | 136 |
Gain on sale of foreclosed assets | (107) | (1,423) | (56) |
Writedown of foreclosed assets | 77 | 439 | 95 |
Share-based compensation expense | 490 | 373 | 476 |
Provision (benefit) for loan losses | 2,550 | 4,350 | (1,140) |
Depreciation and amortization | 2,988 | 3,174 | 3,030 |
Net amortization on securities premiums and discounts | 4,449 | 5,452 | 6,749 |
Accretion of discounts for loans acquired and net deferred loan fees | (1,023) | (1,647) | (1,384) |
Increase in cash surrender value of life insurance policies | (2,184) | (591) | (1,640) |
Amortization of core deposit intangible | 1,074 | 1,020 | 508 |
(Increase) decrease in interest receivable and other assets | (9,224) | (6,106) | 10,402 |
Increase (decrease) in other liabilities | 9,662 | (5,420) | 4,100 |
Deferred income tax benefit | (97) | (308) | (1,130) |
Increase in equity securities | (232) | (1,183) | 0 |
Net amortization of partnership investment | 2,127 | 2,625 | 1,497 |
Net cash provided by operating activities | 46,737 | 30,446 | 40,679 |
Cash flows from investing activities: | |||
Maturities and calls of securities available for sale | 9,809 | 9,730 | 9,493 |
Proceeds from sales of securities available for sale | 60,510 | 6,838 | 40,166 |
Purchases of securities available for sale | (190,168) | (122,818) | (179,092) |
Principal paydowns on securities available for sale | 92,766 | 92,494 | 100,161 |
Net purchases of FHLB stock | (833) | (300) | (1,689) |
Loan originations and payments, net | (32,376) | (183,737) | (76,129) |
Purchases of premises and equipment, net | (783) | (3,123) | (2,141) |
Proceeds from sales of fixed assets | 10 | 0 | 0 |
Proceeds from sales of foreclosed assets | 7,955 | 13,188 | 443 |
Purchase of bank owned life insurance | (440) | (454) | (455) |
Liquidation of bank-owned life insurance | 260 | 0 | 0 |
Proceeds from BOLI death benefit | 0 | 0 | 999 |
Net increase in partnership investment | 0 | 0 | (5,000) |
Net cash from bank acquisition | 0 | (6) | 61,571 |
Net cash used in investing activities | (53,290) | (188,188) | (51,673) |
Cash flows from financing activities: | |||
Increase in deposits | 52,034 | 127,954 | 35,304 |
Increase (decrease) in borrowed funds | (36,100) | 34,200 | (67,500) |
Increase (decrease) in repurchase agreements | 9,352 | 8,209 | 56 |
Cash dividends paid | (11,332) | (9,757) | (7,935) |
Repurchases of common stock | (2,544) | 0 | 0 |
Stock options exercised | 1,088 | 1,131 | 764 |
Net cash provided by financing activities | 12,498 | 161,737 | (39,311) |
(Decrease) increase in cash and due from banks | 5,945 | 3,995 | (50,305) |
Cash and cash equivalents, beginning of year | 74,132 | 70,137 | 120,442 |
Cash and cash equivalents, end of year | 80,077 | 74,132 | 70,137 |
Supplemental disclosure of cash flow information: | |||
Interest | 13,769 | 8,707 | 5,000 |
Income taxes | 12,000 | 11,300 | 7,147 |
Supplemental noncash disclosures: | |||
Real estate acquired through foreclosure | 27 | 7,805 | 666 |
Change in unrealized net gains (losses) on securities available-for-sale | 17,884 | (6,156) | (269) |
Operating right-of-use asset pursuant to adoption on ASU 2016-02 | 8,308 | 0 | 0 |
Operating lease liability pursuant to adoption of ASU 2016-02 | 8,915 | 0 | 0 |
Assets acquired (liabilities assumed) in bank acquisition: | |||
Cash and cash equivalents | 0 | 0 | 62,374 |
Securities | 0 | 0 | 5,492 |
Loans | 0 | 0 | 217,807 |
Premises and equipment | 0 | 0 | 1,342 |
Foreclosed assets | 0 | 0 | 3,072 |
Core deposit intangibles | 0 | 0 | 3,939 |
Goodwill | 0 | 0 | 19,089 |
Other assets | 0 | 0 | 10,479 |
Deposits | 0 | 0 | (257,611) |
Other liabilities | 0 | 0 | (3,404) |
Borrowings | 0 | 0 | (24,400) |
Subordinated debentures | $ 0 | $ 0 | $ 0 |
The Business of Sierra Bancorp
The Business of Sierra Bancorp | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Business of Sierra Bancorp | 1. THE BUSINESS OF SIERRA BANCORP Sierra Bancorp (the “Company”) is a California corporation registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, and is headquartered in Porterville, California. The Company was incorporated in November 2000 and acquired all of the outstanding shares of Bank of the Sierra (the “Bank”) in August 2001. The Company’s principal subsidiary is the Bank, and the Company exists primarily for the purpose of holding the stock of the Bank and of such other subsidiaries it may acquire or establish. The Company’s only other direct subsidiaries are Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II, which were formed solely to facilitate the issuance of capital trust pass-through securities. At December 31, 2019, the Bank operated 40 full service branch offices, an online branch and Agricultural, SBA and Mortgage Warehouse lending divisions. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable legal limits. The Bank maintains a diversified loan portfolio comprised of agricultural, commercial, consumer, real estate construction and mortgage loans. Loans are made in California within the market area of the South Central San Joaquin Valley, the Central Coast, Ventura County and neighboring communities. These areas have diverse economies with principal industries being agriculture, real estate and light manufacturing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years’ balances to conform to classifications used in 2019. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. In accordance with U.S. GAAP, the Company’s investments in Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company’s consolidated balance sheet. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and lease losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies and monitors economic conditions. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions with original maturities within 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. Securities Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Debt securities available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. Although the Company currently has the intent and the ability to hold the securities in its investment portfolio to maturity, the securities are all marketable and are currently classified as “available for sale” to allow maximum flexibility with regard to interest rate risk and liquidity management. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. FHLB Stock and Other Investments The Bank is a member of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost in other assets, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank’s investment in FHLB stock was approximately $10,727,000 and $9,894,000 at December 31, 2019 and 2018, respectively. Pursuant to the adoption of ASU 2016‑01 on January 1, 2018, the Company elected the measurement alternative for measuring equity securities without readily determinable fair values at cost less impairment, plus or minus observable price changes in orderly transactions. The carrying amount of equity securities without readily determinable fair values is $2,016,000 and $1,784,000 at December 31, 2019 and 2018, respectively. Equity securities primarily consist of an investment in Pacific Coast Bankers’ Bank (“PCBB”). A remeasurement gain of $232,000 and $1,183,000 was recorded to income during the years ended December 31, 2019 and 2018, on PCBB stock. $1,415,000 in cummulative remeasurement gains have been recorded as of December 31, 2019 on PCBB stock. Adjustments to the carrying value of PCBB stock were based on observable activity in the stock. Loans Held for Sale The Company may originate loans intended to be sold on the secondary market. Loans originated and intended for sale in the secondary market are carried at cost which approximates fair value since these loans are typically sold shortly after origination. The loan’s cost basis includes unearned deferred fees and costs, and premiums and discounts. If loans held for sale remain on our books for an extended period of time the fair value of those loans is determined using quoted secondary market prices. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans that might be held for sale by the Company typically consist of residential real estate loans. Loans classified as held for sale, if any, are disclosed in Note 4 to the consolidated financial statements. Gains and losses on sales of loans are recognized at the time of sale and are calculated based on the difference between the selling price and the allocated book value of loans sold. Book value allocations are determined in accordance with U.S. GAAP. Any inherent risk of loss on loans sold is transferred to the buyer at the date of sale. The Company has issued various representations and warranties associated with the sale of loans. These representations and warranties may require the Company to repurchase loans with underwriting deficiencies as defined per the applicable sales agreements and certain past due loans within 90 days of the sale. The Company did not experience losses during the years ended December 31, 2019, 2018, or 2017 regarding these representations and warranties. Loans and Leases (Financing Receivables) Our credit quality classifications of Loans and Leases include Pass, Special Mention, Substandard and Impaired. These classifications are defined in Note 4 to the consolidated financial statements. Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premiums and discounts, write-downs, and an allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans and leases over the contractual life of the loan using both the effective interest and straight line methods without anticipating prepayments. Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on non-accrual. Once a loan is on non-accrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans and leases are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Impaired loans are classified as either nonaccrual or accrual, depending on individual circumstances regarding the collectability of interest and principal according to the contractual terms. Purchased Credit Impaired Loans The Company purchases individual loans and groups of loans, some of which may show evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, since there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows for the loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when due to a borrower’s financial difficulties the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. A TDR is generally considered to be in default when it appears likely that the customer will not be able to repay all principal and interest pursuant to the terms of the restructured agreement. Allowance for Loan and Lease Losses The allowance for loan and lease losses is maintained at a level which, in management’s judgment, is adequate to absorb loan and lease losses inherent in the loan and lease portfolio. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and by principal recovered on charged-off balances. It is reduced by principal charge-offs. The amount of the allowance is based on management’s evaluation of the collectability of the loan and lease portfolio, changes in its risk profile, credit concentrations, historical trends, and economic conditions. This evaluation also considers the balance of impaired loans and leases. A loan or lease is impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan or lease agreement. The impairment on certain individually identified loans or leases is measured based on the present value of expected future cash flows discounted at the original effective interest rate of the loan or lease. As a practical expedient, impairment may be measured based on the loan’s or lease’s observable market price or the fair value of collateral if the loan or lease is collateral dependent. The amount of impairment, if any, is recorded through the provision for loan and lease losses and is added to the allowance for loan and lease losses, with any changes over time recognized as additional bad debt expense in our provision for loan losses. Impaired loans with homogenous characteristics, such as one-to-four family residential mortgages and consumer installment loans, may be subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, historical loss experience, and other factors. General reserves cover non-impaired loans and are based on historical net loss rates for each portfolio segment by call report code, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments; changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in quality of the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit; and the effect of the other external factors such as competition and legal and regulatory requirements. Most of the Company’s business activity is with customers located in California within the Southern Central San Joaquin Valley; in the corridor stretching between Santa Paula and Santa Clarita in Southern California, and on the Central Coast. Therefore the Company’s exposure to credit risk is significantly affected by changes in the economy in those regions. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for loan losses. Portfolio segments identified by the Company include Agricultural, Commercial and Industrial, Real Estate, Small Business Administration, and Consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans; and credit scores, debt-to-income ratios, collateral type and loan-to-value ratios for consumer loans. Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Business Oversight, as an integral part of their examination processes, review the allowance for loan and lease losses. These agencies may require additions to the allowance for loan and lease losses based on their judgment about information available at the time of their examinations. Reserve for Off-Balance Sheet Commitments In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, mortgage warehouse lines of credit, construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of the ALLL. The reserve for off-balance sheet commitments is an estimated loss contingency which is included in other liabilities on the Consolidated Balance Sheets. The adjustments to the reserve for off-balance sheet commitments are reported as a noninterest expense. This reserve is for estimated losses that could occur when the Company is contractually obligated to make a payment under these instruments and must seek repayment from a party that may not be as financially sound in the current period as it was when the commitment was originally made. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five to thirty-nine years. The useful lives of furniture, fixtures and equipment range between three to twenty years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. Foreclosed Assets Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for loan and lease losses. A valuation allowance for losses on foreclosed assets is maintained to provide for declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other non-interest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other non-interest expense as incurred. Operating costs after acquisition are expensed. The Company had one foreclosed residential real estate property recorded at December 31, 2019, as a result of obtaining physical possession of the property. At December 31, 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $1,089,000. Goodwill and Other Intangible Assets The Company acquired Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank and the Woodlake Branch of Citizen’s Business Bank in 2017. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected December 31, 2019 as the date to perform the annual impairment test for 2019. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2019, 2018, and 2017. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company’s other intangible assets consist solely of core deposit intangible assets (CDI’s) arising from the acquisitions of Santa Clara Valley Bank, Coast National Bank, a Citizen’s Business Bank Porterville branch deposit portfolio, Ojai Community Bank, the Woodlake Branch of Citizen’s Business Bank and the Lompoc branch of Santa Maria Community Bank. All of the CDI’s are being amortized on a straight line basis over eight years, except for the Citizen’s Business Bank Porterville branch deposit portfolio which is being amortized on a straightline basis over five years. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 13 to the consolidated financial statements. Income Taxes The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2019 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. Salary Continuation Agreements and Directors’ Retirement Plan The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director’s or executive’s expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director’s or employee’s services to that date. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available for sale securities are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. Stock-Based Compensation At December 31, 2019, the Company had one stock-based compensation plan, the Sierra Bancorp 2017 Stock Incentive Plan (the “2017 Plan”), which was adopted by the Company’s Board of Directors on March 16, 2017 and approved by the Company’s shareholders on May 24, 2017. The 2017 Plan replaced the Company’s 2007 Stock Incentive Plan (the “2007” Plan), which expired by its own terms on March 15, 2017. Options to purchase shares granted under the 2007 Plan that remained outstanding were unaffected by that plan’s termination. The 2017 Plan covers 850,000 shares of the Company’s authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2017 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. We have not issued, nor do we currently have plans to issue, restricted stock awards. Compensation cost and director’s expense is recognized for stock options issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to value stock options. The “multiple option” approach is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding subsequent to vesting, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of each option is estimated on the date of grant using the following assumptions: Years Ended December 31, 2019 2018 2017 Dividend yield Expected Volatility Risk-free interest rate Expected option life 5.4 years 5.3 years 5.0 years Revenue Recognition Revenue from contracts with customers comprises the noninterest income earned by the Company in exchange for services provided to customers. Income associated with customer contracts generally involve transaction prices that are fixed and performance obligations which are satisfied as services are rendered. In most cases recognition occurs within a single financial reporting period as there is little or no judgement involved in the timing of revenues. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. Service Charges on Deposit Accounts comprise charges on retail and business accounts. Business customers can earn credits depending on account type and deposit balances maintained with the Company, which may be used to offset fees. Fees and credits are based on predetermined, agreed-upon rates. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and those related costs to provide services on a gross basis in our financial statements. Debit card interchange income is derived from our customers’ use of various interchange and ATM/debit card networks which are the primary sources of revenue generated in an agent capacity. Recent Accounting Pronouncements In January 2016 the FASB issued ASU 2016‑01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other things, the guidance in this ASU (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements, and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities are required to apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, except for the amendment related to equity securities without readily determinable fair values which sh |
Securities Available-for-Sale
Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | 3. SECURITIES AVAILABLE-FOR-SALE The amortized cost and fair value of the securities available-for-sale are as follows (dollars in thousands): December 31, 2019 Amortized Gross Gross Fair Value U.S. government agencies $ 12,125 $ 124 $ (104) $ 12,145 Mortgage-backed securities 398,353 3,354 (1,318) 400,389 State and political subdivisions 181,900 6,478 (113) 188,265 Total securities $ 592,378 $ 9,956 $ (1,535) $ 600,799 December 31, 2018 Amortized Gross Gross Fair Value U.S. government agencies $ 15,553 $ 12 $ (353) $ 15,212 Mortgage-backed securities 414,208 398 (9,873) 404,733 State and political subdivisions 140,181 1,206 (853) 140,534 Total securities $ 569,942 $ 1,616 $ (11,079) $ 560,479 For the years ended December 31, 2019, 2018, and 2017, proceeds from sales of securities available-for-sale were $60.5 million, $6.8 million, and $40.2 million, respectively. Gains and losses on the sale of investment securities are recorded on the trade date and are determined using the specific identification method. Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): December 31, 2019 2018 2017 Gross gains on sales and calls of securities $ 230 $ 21 $ 1,024 Gross losses on sales and calls of securities (428) (19) (524) Net (losses) gains on sales and calls of securities $ (198) $ 2 $ 500 The Company has reviewed all sectors and securities in the portfolio for impairment. During the year ended December 31, 2019 the Company realized gains through earnings from the sale and call of 74 debt securities for $230,000. The securities were sold with 108 other debt securities, for which a $428,000 loss was realized, to improve the structure of the portfolio at year end. During the year ended December 31, 2018, the Company realized gains through earnings from the sale and call of 11 debt securities for $21,000. The securities were sold with 8 other debt securities, for which a $19,000 loss was realized, to improve the structure of the portfolio at year-end. At December 31, 2019 and 2018, the Company had 198 and 552 securities with unrealized gross losses, respectively. Information pertaining to these securities aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands): December 31, 2019 Less than twelve months Twelve months or longer Gross Fair Value Gross Fair Value U.S. government agencies $ (32) $ 3,240 $ (72) $ 2,689 Mortgage-backed securities (494) 100,518 (824) 78,538 State and political subdivisions (113) 19,762 — — Total $ (639) $ 123,520 $ (896) $ 81,227 December 31, 2018 Less than twelve months Twelve months or longer Gross Fair Value Gross Fair Value U.S. government agencies $ (54) $ 2,815 $ (299) $ 10,764 Mortgage-backed securities (717) 69,686 (9,156) 273,230 State and political subdivisions (249) 33,864 (604) 22,213 Total $ (1,020) $ 106,365 $ (10,059) $ 306,207 The Company has concluded as of December 31, 2019 that all remaining securities, currently in an unrealized loss position, are not other-than-temporarily-impaired. This assessment was based on the following factors: 1) the Company has the ability to hold the securities, 2) the Company does not intend to sell the securities, 3) the Company does not anticipate it will be required to sell the securities before recovery, 4) and the Company expects to eventually recover the entire amortized cost basis of the securities. The amortized cost and estimated fair value of securities available-for-sale at December 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties (dollars in thousands): Amortized Cost Fair Value Maturing within one year $ 7,155 $ 7,244 Maturing after one year through five years 17,008 17,171 Maturing after five years through ten years 33,805 34,881 Maturing after ten years 136,057 141,114 Mortgage-backed securities 189,554 190,488 Collateralized mortgage obligations 208,799 209,901 $ 592,378 $ 600,799 Securities available-for-sale with amortized costs totaling $232,969,000 and estimated fair values totaling $234,787,000 were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2019 (see Note 10). Securities available-for-sale with amortized costs totaling $222,548,000 and estimated fair values totaling $217,421,000 were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2018 (see Note 10). At December 31, 2019, the Company’s investment portfolio included securities issued by 298 different government municipalities and agencies located within 31 states with a fair value of $188,265,000. The largest exposure to any single municipality or agency was $2.2 million (fair value) in five bonds issued for the renovation, modernization and construction of various school facilities by the Lindsay Unified School District, to be repaid by future tax revenues. The Company’s investments in bonds issued by states, municipalities and political subdivisions are evaluated in accordance with Supervision and Regulation Letter 12‑15 (SR 12‑15) issued by the Board of Governors of the Federal Reserve System, “Investing in Securities without Reliance on Nationally Recognized Statistical Rating Organization Ratings”, and other regulatory guidance. Credit ratings are considered in our analysis only as a guide to the historical default rate associated with similarly-rated bonds. There have been no significant differences in our internal analyses compared with the ratings assigned by the third party credit rating agencies. The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations (dollars in thousands): December 31, 2019 December 31, 2018 General obligation bonds Amortized Cost Fair Value Amortized Cost Fair Value State of Issuance: Texas $ 59,439 $ 61,519 $ 36,331 $ 36,199 Washington 23,392 24,313 16,036 16,062 California 23,882 25,030 26,928 27,357 Ohio 7,144 7,271 8,639 8,601 Other (23 and 22 states, respectively) 42,182 43,454 28,357 28,414 Total general obligation bonds 156,039 161,587 116,291 116,633 Revenue bonds State of Issuance: Texas 6,298 7,526 7,506 Washington 1,737 1,751 1,780 California 365 380 367 374 Ohio 2,069 2,066 — — Other (12 and 12 states, respectively) 15,655 16,078 14,246 14,241 Total revenue bonds 25,861 26,678 23,890 23,901 Total obligations of states and political subdivisions $ 181,900 $ 188,265 $ 140,181 $ 140,534 The following table summarizes the amortized cost and fair value of revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the revenue source of repayment for our largest source concentrations (dollars in thousands): December 31, 2019 December 31, 2018 Revenue bonds Amortized Cost Fair Value Amortized Cost Fair Value Revenue Source: Water $ 7,515 $ 7,775 $ 6,942 $ 6,946 Sewer 4,760 4,811 1,392 1,398 College & university 1,997 2,019 2,583 2,604 Sales tax 1,949 1,995 2,932 2,901 Electric & power 1,421 1,521 1,027 1,047 Lease 3,596 3,678 2,053 2,068 Other (9 and 12 sources, respectively) 4,623 4,879 6,961 6,937 Total revenue bonds $ 25,861 $ 26,678 $ 23,890 $ 23,901 |
Loans and Leases
Loans and Leases | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Leases | 4. LOANS AND LEASES The composition of the loan and lease portfolio is as follows (dollars in thousands): December 31, 2019 2018 Real estate: Secured by commercial and professional office properties, including construction and development $ 847,865 $ 848,691 Secured by residential properties 410,216 453,698 Secured by farm land 144,033 151,541 Total real estate loans 1,402,114 1,453,930 Agricultural 48,036 49,103 Commercial and industrial 115,532 128,220 Mortgage warehouse lines 189,103 91,813 Consumer 7,780 8,862 Total loans 1,762,565 1,731,928 Deferred loan and lease origination cost, net 2,896 2,602 Allowance for loan and lease losses (9,923) (9,750) Loans, net $ 1,755,538 $ 1,724,780 The Company monitors the credit quality of loans on a continuous basis using the regulatory and accounting classifications of pass, special mention, substandard and impaired to characterize and qualify the associated credit risk. Loans classified as “loss” are immediately charged-off. The Company uses the following definitions of risk classifications: Pass – Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. Special Mention – Loans classified as special mention have the potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position and some future date. Substandard – Loans classified as substandard are those loans with clear and well-defined weaknesses such as a highly leveraged position, unfavorable financial operating results and/or trends, or uncertain repayment sources or poor financial condition, which may jeopardize ultimate recoverability of the debt. Impaired – A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings are considered impaired. Credit quality classifications as of December 31, 2019 were as follows (dollars in thousands): Pass Special Substandard Impaired Total Real estate: 1-4 family residential construction $ 105,979 $ — $ — $ — $ 105,979 Other construction/land 90,761 98 — 554 91,413 1-4 family - closed-end 194,572 2,425 164 3,020 200,181 Equity lines 43,111 1,995 72 4,421 49,599 Multi-family residential 54,104 — — 353 54,457 Commercial real estate owner occupied 334,460 4,005 3,384 2,034 343,883 Commercial real estate non-owner occupied 409,289 1,164 11 2,105 412,569 Farmland 142,594 1,048 132 259 144,033 Total real estate 1,374,870 10,735 3,763 12,746 1,402,114 Agricultural 47,814 217 — 5 48,036 Commercial and industrial 100,584 13,415 556 977 115,532 Mortgage warehouse lines 189,103 — — — 189,103 Consumer loans 7,245 85 25 425 7,780 Total gross loans and leases $ 1,719,616 $ 24,452 $ 4,344 $ 14,153 $ 1,762,565 Credit quality classifications as of December 31, 2018 were as follows (dollars in thousands): Pass Special Substandard Impaired Total Real estate: 1-4 family residential construction $ 105,676 $ — $ — $ — $ 105,676 Other construction/land 108,304 231 — 488 109,023 1-4 family - closed-end 230,022 1,861 1,310 3,632 236,825 Equity lines 49,346 2,194 64 4,716 56,320 Multi-family residential 54,504 — — 373 54,877 Commercial real estate owner occupied 292,886 4,192 3,021 1,225 301,324 Commercial real estate non-owner occupied 429,835 2,730 4,354 1,425 438,344 Farmland 148,680 1,073 146 1,642 151,541 Total real estate 1,419,253 12,281 8,895 13,501 1,453,930 Agricultural 48,517 580 — 6 49,103 Commercial and industrial 110,413 15,686 377 1,744 128,220 Mortgage warehouse lines 91,813 — — — 91,813 Consumer loans 7,851 151 39 821 8,862 Total gross loans and leases $ 1,677,847 $ 28,698 $ 9,311 $ 16,072 $ 1,731,928 Loans may or may not be collateralized, and collection efforts are continuously pursued. Loans or leases may be restructured by management when a borrower has experienced some change in financial status causing an inability to meet the original repayment terms and where the Company believes the borrower will eventually overcome those circumstances and make full restitution. Loans and leases are charged off when they are deemed to be uncollectible, while recoveries are generally recorded only when cash payments are received subsequent to the charge-off. The following tables present the activity in the allowance for loan losses and the recorded investment in loans and impairment method by portfolio segment for each of the years ending December 31, 2019, 2018, and 2017 (dollars in thousands): Commercial and Real Estate Agricultural Industrial (1) Consumer Unallocated Total Allowance for credit losses: Balance, December 31, 2016 $ 3,548 209 4,279 1,208 457 9,701 Charge-offs (101) (154) (669) (2,161) — (3,085) Recoveries 2,235 5 310 1,017 — 3,567 Provision (896) 148 (1,148) 1,167 (411) (1,140) Balance, December 31, 2017 4,786 208 2,772 1,231 46 9,043 Charge-offs (2,474) — (608) (2,226) — (5,308) Recoveries 374 23 148 1,120 — 1,665 Provision 3,145 25 82 1,114 (16) 4,350 Balance, December 31, 2018 5,831 256 2,394 1,239 30 9,750 Charge-offs (1,190) — (1,274) (2,409) — (4,873) Recoveries 647 — 690 1,159 — 2,496 Provision 347 (63) 875 1,289 102 2,550 Balance, December 31, 2019 $ 5,635 $ 193 $ 2,685 $ 1,278 $ 132 $ 9,923 (1) Includes mortgage warehouse lines Loans evaluated for impairment: December 31, 2019 December 31, 2018 December 31, 2017 Individually Collectively Individually Collectively Individually Collectively Real estate $ 12,745 $ 1,389,368 $ 13,501 $ 1,440,429 $ 13,072 $ 1,213,644 Agricultural 5 48,031 6 49,097 — 46,796 Commercial and industrial (1) 977 303,658 1,744 218,289 2,064 271,618 Consumer 425 7,355 821 8,041 1,277 9,349 Total loans $ 14,152 $ 1,748,412 $ 16,072 $ 1,715,856 $ 16,413 $ 1,541,407 (2) Includes mortgage warehouse lines Reserves based on method of evaluation for impairment: December 31, 2019 December 31, 2018 December 31, 2017 Specific General Specific General Specific General Real estate $ 493 $ 5,142 $ 937 $ 4,894 $ 728 $ 4,058 Agricultural 1 192 2 254 — 208 Commercial and industrial (1) 219 2,466 918 1,476 188 2,584 Consumer 114 1,164 151 1,088 237 994 Unallocated — 132 — 30 — 46 Total loan loss reserves $ 827 $ 9,096 $ 2,008 $ 7,742 $ 1,153 $ 7,890 (1) Includes mortgage warehouse lines The following tables present the recorded investment in nonaccrual loans and loans past due over 30 days as of December 31, 2019 and December 31, 2018 (dollars in thousands, except footnotes): December 31, 2019 30-59 Days 60-89 Days 90 Days Or Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 105,979 $ 105,979 $ — Other construction/land 16 — — 16 91,397 91,413 31 1-4 family - closed-end 485 380 659 1,524 198,657 200,181 741 Equity lines 177 10 78 265 49,334 49,599 480 Multi-family residential — — — — 54,457 54,457 — Commercial real estate owner occupied 1,552 — 88 1,640 342,243 343,883 1,440 Commercial real estate non-owner occupied 500 — 1,605 2,105 410,464 412,569 2,105 Farmland — — — — 144,033 144,033 258 Total real estate loans 2,730 390 2,430 5,550 1,396,564 1,402,114 5,055 Agricultural — — — — 48,036 48,036 — Commercial and industrial 160 215 — 375 115,157 115,532 651 Mortgage warehouse lines — — — — 189,103 189,103 — Consumer loans 55 12 2 69 7,711 7,780 31 Total gross loans and leases $ 2,945 $ 617 $ 2,432 $ 5,994 $ 1,756,571 $ 1,762,565 $ 5,737 (1) Included in Total Financing Receivables (2) As of December 31, 2019 there were no loans over 90 days past due and still accruing . December 31, 2018 30-59 Days 60-89 Days 90 Days Or Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 105,676 $ 105,676 $ — Other construction/land 210 — 27 237 108,786 109,023 82 1-4 family - closed-end 319 — 775 1,094 235,731 236,825 799 Equity lines 1,471 — 57 1,528 54,792 56,320 408 Multi-family residential — — — — 54,877 54,877 — Commercial real estate owner occupied 183 — 102 285 301,039 301,324 605 Commercial real estate non-owner occupied 49 — — 49 438,295 438,344 49 Farmland 1,555 — — 1,555 149,986 151,541 1,642 Total real estate loans 3,787 — 961 4,748 1,449,182 1,453,930 3,585 Agricultural — — — — 49,103 49,103 — Commercial and industrial 1,567 83 886 2,536 125,684 128,220 1,425 Mortgage warehouse lines — — — — 91,813 91,813 — Consumer loans 95 45 56 196 8,666 8,862 146 Total gross loans and leases $ 5,449 $ 128 $ 1,903 $ 7,480 $ 1,724,448 $ 1,731,928 $ 5,156 (1) Included in Total Financing Receivables (2) As of December 31, 2018 there were no loans over 90 days past due and still accruing. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. Subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Individually impaired loans as of December 31, 2019 and December 31, 2018 were as follows (dollars in thousands): December 31, 2019 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 656 537 157 563 32 1-4 family - closed-end 2,298 2,298 58 2,365 146 Equity lines 4,173 4,120 252 4,185 200 Multifamily residential 353 353 17 361 23 Commercial real estate - owner occupied 593 593 6 606 38 Commercial real estate - non-owner occupied — — — — — Farmland 237 237 3 256 — Total real estate 8,310 8,138 493 8,336 439 Agricultural 5 5 1 6 — Commercial and industrial 915 896 219 1,140 29 Consumer loans 464 425 114 469 35 9,694 9,464 827 9,951 503 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 52 17 — 577 4 1-4 family - closed-end 755 722 — 726 — Equity lines 326 301 — 310 5 Multifamily residential — — — — — Commercial real estate - owner occupied 1,560 1,440 — 1,477 — Commercial real estate - non-owner occupied 3,295 2,105 — 3,267 — Farmland 22 22 — 25 — Total real estate 6,010 4,607 — 6,382 9 Agricultural — — — — — Commercial and industrial 102 81 — 162 — Consumer loans 9 — — 140 15 6,121 4,688 — 6,684 24 Total $ 15,815 $ 14,152 $ 827 $ 16,635 $ 527 (1) Contractual principal balance due from customer. (2) Principal balance on Company’s books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. December 31, 2018 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 593 438 44 648 40 1-4 family - closed-end 3,325 3,325 75 3,182 175 Equity lines 4,603 4,550 656 4,368 206 Multifamily residential 373 373 25 359 20 Commercial real estate- owner occupied 842 723 135 740 40 Commercial real estate- non-owner occupied 1,572 1,425 3 1,644 107 Farmland — — — — — Total real estate 11,308 10,834 938 10,941 588 Agricultural 6 6 1 6 — Commercial and industrial 1,724 1,534 918 1,965 40 Consumer loans 813 764 151 909 61 13,851 13,138 2,008 13,821 689 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 54 50 — 58 — 1-4 family - closed-end 357 307 — 375 3 Equity Lines 224 166 — 221 — Multifamily residential — — — — — Commercial real estate- owner occupied 502 502 — 478 — Commercial real estate- non-owner occupied — — — — — Farmland 1,642 1,642 — 1,538 — Total real estate 2,779 2,667 — 2,670 3 Agricultural — — — — — Commercial and industrial 238 211 — 838 — Consumer loans 182 56 — 273 1 3,199 2,934 — 3,781 4 Total $ 17,050 $ 16,072 $ 2,008 $ 17,602 $ 693 (1) Contractual principal balance due from customer. (2) Principal balance on Company’s books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. Included in loans above are troubled debt restructurings that were classified as impaired. The Company had $470,000 and $602,000 in commercial loans, $8,179,000 and $10,630,000 in real estate secured loans and $407,000 and $705,000 in consumer loans, which were modified as troubled debt restructurings and consequently classified as impaired at December 31, 2019 and 2018, respectively. Additional commitments to existing customers with restructured loans totaled $37,000 and $1,834,000 at December 31, 2019 and 2018, respectively. Interest income recognized on impaired loans was $527,000, $693,000, and $784,000, for the years ended December 31, 2019, 2018, and 2017, respectively. There was no interest income recognized on a cash basis on impaired loans for the years ended December 31, 2019, 2018, and 2017, respectively. The following is a summary of interest income from non-accrual loans in the portfolio at year-end that was not recognized (dollars in thousands): Years Ended December 31, 2019 2018 2017 Interest that would have been recorded under the loans’ original terms $ 650 $ 484 $ 361 Less gross interest recorded 289 167 103 Foregone interest $ 361 $ 317 $ 258 Certain loans have been pledged to secure short-term borrowing arrangements (see Note 10). These loans totaled $777,685,000 and $804,705,000 at December 31, 2019 and 2018, respectively. Salaries and employee benefits totaling $3,678,000, $4,173,000, and $3,854,000, have been deferred as loan and lease origination costs to be amortized over the estimated lives of the related loans and leases for the years ended December 31, 2019, 2018, and 2017, respectively. During the periods ended December 31, 2019 and 2018, the terms of certain loans were modified as troubled debt restructurings. Types of modifications applied to these loans include a reduction of the stated interest rate, a modification of term, an agreement to collect only interest rather than principal and interest for a specified period, or any combination thereof. The following tables present troubled debt restructurings by type of modification during the period ending December 31, 2019 and December 31, 2018 (dollars in thousands): December 31, 2019 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ 163 $ — $ — $ 163 1-4 family - closed-end — — — — — Equity lines — 344 — — 344 Multi-family residential — — — — — Commercial real estate owner occupied — — — — — Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 507 — — 507 Agricultural — — — — — Commercial and industrial 94 255 — 52 401 Consumer loans — 9 — 50 59 $ 94 $ 771 $ — $ 102 $ 967 December 31, 2018 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — Equity lines — 460 504 — 964 Multi-family residential — — — — — Commercial real estate owner occupied — — — — — Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 460 504 — 964 Agricultural — 7 — — 7 Commercial and industrial — 73 25 225 323 Consumer loans — — 10 — 10 $ — $ 540 $ 539 $ 225 $ 1,304 The following tables present loans by class modified as troubled debt restructurings including any subsequent defaults during the period ending December 31, 2019 and December 31, 2018 (dollars in thousands): Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Reserve December 31, 2019 Loans Investment Investment Difference (1) Real estate: Other construction/land 1 $ 163 $ 163 $ 74 1-4 family - closed-end — — — — Equity lines 2 344 344 — Multi-family residential — — — — Commercial real estate - owner occupied — — — — Commercial real estate - non-owner occupied — — — — Farmland — — — — Total real estate loans 507 507 74 Agricultural — — — — Commercial and industrial 7 401 401 (59) Consumer loans 2 59 59 (47) $ 967 $ 967 $ (32) (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Reserve December 31, 2018 Loans Investment Investment Difference (1) Real estate: Other construction/land — $ — $ — $ — 1-4 family - closed-end — — — — Equity lines 8 964 964 4 Multi-family residential — — — — Commercial real estate - owner occupied — — — — Commercial real estate - non-owner occupied — — — — Farmland — — — — Total real estate loans 964 964 4 Agricultural 1 7 7 2 Commercial and industrial 4 323 323 — Consumer loans 1 10 10 — $ 1,304 $ 1,304 $ 6 (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. In the tables above, there were no TDRs that subsequently defaulted necessitating an increase in the allowance for loan and lease losses for the years ended December 31, 2019 and 2018. The total allowance for loan and lease losses specifically allocated to the balances that were classified as TDRs during the year ended December 31, 2019 and 2018 is $648,000 and $1,048,000, respectively. Purchased Credit Impaired Loans As part of the acquisitions described in Note 22 Business Combinations , the Company has purchased loans, some of which have shown evidence of credit deterioration since origination and it was probable at acquisition that all contractually required payments would not be collected. The carrying amount and unpaid principal balance of those loans are as follows (dollars in thousands): December 31, 2019 Unpaid Principal Balance Carrying Value Real estate secured $ 88 $ — Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 88 $ — December 31, 2018 Unpaid Principal Balance Carrying Value Real estate secured $ 103 $ — Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 103 $ — For those purchased credit impaired loans disclosed above, the Company did not increase the allowance for loan losses during 2019, 2018 and 2017. There is no accretable yield, or income expected to be collected on these purchased credit impaired loans. During the years ended December 31, 2019 and 2018, there were no purchased credit impaired loans acquired. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 5. PREMISES AND EQUIPMENT Premises and equipment at cost consisted of the following (dollars in thousands): December 31, 2019 2018 Land $ 5,751 $ 5,751 Buildings and improvements 21,526 21,579 Furniture, fixtures and equipment 17,798 18,958 Leasehold improvements 15,357 15,023 60,432 61,311 Less accumulated depreciation and amortization 33,041 32,712 Construction in progress 44 901 $ 27,435 $ 29,500 Depreciation and amortization included in occupancy and equipment expense totaled $2,810,000, $2,995,000, and $2,852,000, for the years ended December 31, 2019, 2018, and 2017, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | 6. OPERATING LEASES We lease space under non-cancelable operating leases for 21 branch locations, three off-site ATM locations, one administrative building and a warehouse. Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs). Payments for taxes and insurance as well as non-lease components are not included in the accounting of the lease component, but are separately accounted for in occupancy expense. The Company recognized lease expense of $2.227 million for the year ended December 31, 2019. On January 1, 2019, we adopted a new accounting standard which required the recognition of certain operating leases on our balance sheet as lease right–of-use assets (reported as a component of other assets) and related lease liabilities (reported as a component of other liabilities). See Note 2–Summary of Significant Accounting Policies. Lease expense for the years ending December 31, 2018, and 2017 prior to the adoption of ASU 2016‑02, was $2.257 million and $2.482 million, respectively. Most leases include one or more renewal options available to exercise. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we used our incremental borrowing rate in determining the present value of the lease payments. There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the year ending December 31, 2019. At December 31, 2019, the Company’s right-of-use assets and operating lease liabilities were $8.308 million and $8.915 million, respectively. The weighted average remaining lease term for the lease liabilities was 7.1 years, and the weighted average discount rate of remaining payments was 5.5 percent. There were no lease liabilities from new right-of-use assets obtained during the year ending December 31, 2019. Cash paid on operating leases was $2.199 million for the year ending December 31, 2019. Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2019 are as follows (dollars in thousands): Year Ending December 31, 2020 $ 2,235 2021 2,023 2022 1,574 2023 1,113 2024 749 Thereafter 3,196 Total undiscounted lease payments $ 10,890 Less: imputed interest (1,975) Net lease liabilities $ 8,915 The Company generally has options to renew its properties facilities after the initial leases expire. The renewal options range from one to ten years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill The change in goodwill during the year is as follows (dollars in thousands): Years Ended December 31, 2019 2018 2017 Balance at January 1 $ 27,357 $ 27,357 $ 8,268 Acquired goodwill — — 19,089 Impairment — — — Balance at December 31 $ 27,357 $ 27,357 $ 27,357 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. Bank of the Sierra (the “Bank”) is the only subsidiary of the Company that meets the materiality criteria necessary to be deemed an operating segment, and because the Company exists primarily for the purpose of holding the stock of the Bank we have determined that only one unified operating segment (the consolidated Company) exists. At December 31, 2019, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the Company exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Acquired Intangible Assets Acquired intangible assets were as follows at year-end (dollars in thousands): Years Ended December 31, 2019 2018 Gross Accumulated Gross Accumulated Core deposit intangibles $ 8,401 $ 3,020 $ 8,401 $ 1,946 Aggregate amortization expense was $1,074,000, $1,020,000, and $508,000 for 2019, 2018, and 2017. Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): 2020 $ 1,074 2021 1,032 2022 1,000 2023 876 2024 781 Thereafter $ 618 $ 5,381 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | 8. OTHER ASSETS Other assets consisted of the following (dollars in thousands): December 31, 2019 2018 Accrued interest receivable $ 8,229 $ 8,587 Deferred tax assets 3,463 8,654 Investment in qualified affordable housing projects 4,104 5,905 Investment in limited partnerships 2,722 3,049 Federal Home Loan Bank stock, at cost 10,727 9,894 Other 16,670 14,475 $ 45,915 $ 50,564 The Company has invested in limited partnerships that operate qualified affordable housing projects to receive tax benefits in the form of tax deductions from operating losses and tax credits. The Company accounts for these investments under the cost method and management analyzes these investments annually for potential impairment. The Company had $2,906,000 in remaining capital commitments to these partnerships at December 31, 2019. The Company holds certain equity investments that are not readily marketable securities and thus are classified as “other assets” on the Company’s balance sheet. These include investments in Pacific Coast Bankers Bancshares, California Economic Development Lending Initiative, and the Federal Home Loan Bank (“FHLB”). The largest of these is the Company’s $10,727,000 investment in FHLB stock, carried at cost. Quarterly, the FHLB evaluates and adjusts the Company’s minimum stock requirement based on the Company’s borrowing activity and membership requirements. Any stock deemed in excess is automatically repurchased by the FHLB at cost. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | 9. DEPOSITS Interest-bearing deposits consisted of the following (dollars in thousands): December 31, 2019 2018 Interest bearing demand deposits $ 91,212 $ 101,243 NOW 458,600 434,483 Savings 294,317 283,953 Money market 118,933 123,807 Time, under $250,000 261,916 262,901 Time, $250,000 or more 252,446 247,426 $ 1,477,424 $ 1,453,813 Aggregate annual maturities of time deposits were as follows (dollars in thousands): Year Ending December 31, 2020 $ 503,956 2021 5,654 2022 1,155 2023 2,534 2024 241 Thereafter 822 $ 514,362 Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Interest bearing demand deposits $ 316 $ 364 $ 417 NOW 524 478 427 Savings 308 314 258 Money market 181 146 157 CDAR's — — — Time deposits 8,931 5,653 2,503 Brokered Deposits 1,120 305 — $ 11,380 $ 7,260 $ 3,762 |
Other Borrowing Arrangements
Other Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Other Borrowing Arrangements | 10. OTHER BORROWING ARRANGEMENTS At year end, short-term borrowings consisted of the following (dollars in thousands): 2019 2018 Average Amount Average Maximum Weighted Average Amount Average Maximum Weighted As of December 31: Repurchase agreements $ 22,090 $ 25,711 .40% $ 27,712 .40% $ 14,332 $ 16,359 .40% $ 17,672 .40% Overnight federal home loan bank advances 12,408 — 63,700 — 8,967 56,100 56,100 Short-term federal home loan bank advances 822 20,000 20,000 — — — — — Fed funds purchased 313 — — 850 — 22 — — 850 — $ 35,633 $ 45,711 $ 112,262 $ 23,321 $ 72,459 $ 74,622 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $777,685,000 of first mortgage loans under a blanket lien arrangement at year end 2019. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to the total of $511,060,000 at year-end 2019, with a remaining borrowing capacity of $534,078,000 if sufficient additional collateral was pledged. The Company had no borrowings at December 31, 2019 and 2018, respectively from the FRB. The Company was eligible to borrow up to $59,198,000 at year end 2019, which was collateralized by $87,638,000 in first mortgage loans under a blanket lien arrangement. The Company had no long-term borrowings at December 31, 2019 and 2018, respectively. The Company had unsecured lines of credit with its correspondent banks which, in the aggregate, amounted to $80,000,000 at December 31, 2019 and 2018, respectively, at interest rates which vary with market conditions. There was nothing outstanding under these lines of credit at December 31, 2019 and December 31, 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The provision for income taxes follows (dollars in thousands): Year Ended December 31, 2019 2018 2017 Federal: Current $ 7,081 $ 5,780 $ 8,456 Effect of tax act — — 2,710 Deferred (228) 179 (828) 6,853 5,959 10,338 State: Current 4,771 3,819 3,604 Deferred 133 129 (302) 4,904 3,948 3,302 $ 11,757 $ 9,907 $ 13,640 The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,934 $ 2,882 Foreclosed assets 200 704 Deferred compensation 3,895 3,538 Accrued reserves 312 421 Non accrual loans 181 205 Net operating loss carryforward 1,909 2,131 Net unrealized loss on securities available-for-sale — 2,798 Other 3,536 3,510 Total deferred tax assets 12,967 16,189 Deferred tax liabilities: Premises and equipment (324) (833) Deferred loan costs (2,656) (2,656) Net unrealized gain on securities available-for-sale (2,490) — Other (4,034) (4,046) Total deferred tax liabilities (9,504) (7,535) Net deferred tax assets $ 3,463 $ 8,654 The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Income tax expense at federal statutory rate $ 10,021 $ 8,313 $ 11,613 Increase (decrease) resulting from: State franchise tax expense, net of federal tax effect 3,872 3,390 2,363 Tax exempt municipal income (952) (852) (1,299) Affordable housing tax credits (538) (632) (711) Effect of the tax act — — 2,710 Excess tax benefit of stock-based compensation (133) (177) (248) Other (513) (135) (788) 11,757 9,907 13,640 Effective tax rate The Company is subject to federal income tax and income tax of the state of California. Our federal income tax returns for the years ended December 31, 2016, 2017 and 2018 are open to audit by the federal authorities and our California state tax returns for the years ended December 31, 2015, 2016, 2017 and 2018 are open to audit by the state authorities. The Company has net operating loss carry forwards of approximately $6,288,000 for federal income and approximately $6,869,000 for California franchise tax purposes. Net operating loss carry forwards, to the extent not used will begin to expire in 2031. Net operating loss carry forwards available from acquisitions are substantially limited by Section 382 of the Internal Revenue Code and benefits not expected to be realized due to the limitation have been excluded from the deferred tax asset and net operating loss carry forward amounts noted above. There were no recorded interest or penalties related to uncertain tax positions as part of income tax for the years ended December 31, 2019, 2018, and 2017, respectively. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease within the next twelve months. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | 12. SUBORDINATED DEBENTURES Sierra Statutory Trust II (“Trust II”), Sierra Capital Trust III (“Trust III”), and Coast Bancorp Statutory Trust II (“Trust IV”), (collectively, the “Trusts”) exist solely for the purpose of issuing trust preferred securities fully and unconditionally guaranteed by the Company. For financial reporting purposes, the Trusts are not consolidated and the Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) held by the Trusts and issued and guaranteed by the Company are reflected in the Company’s consolidated balance sheet in accordance with provisions of ASC Topic 810. Under applicable regulatory guidance, the amount of trust preferred securities that is eligible as Tier 1 capital is limited to twenty-five percent of the Company’s Tier 1 capital on a pro forma basis. At December 31, 2019, all $34,945,000 of the Company’s trust preferred securities qualified as Tier 1 capital. During the first quarter of 2004, Sierra Statutory Trust II issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS II), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust II in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, re-pricing and payment terms as the TRUPS II. The Subordinated Debentures, purchased by Trust II, represent the sole assets of the Trust II. Those Subordinated Debentures mature on March 17, 2034, bear a current interest rate of 4.65% (based on 3‑month LIBOR plus 2.75%), with re-pricing and payments due quarterly. Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 17 th , June 17 th , September 17 th , or December 17 th . The redemption price is par plus accrued and unpaid interest, except in the case of redemption under a special event which is defined in the debenture. The TRUPS II are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on March 17, 2034. Trust II has the option to defer payment of the distributions for a period of up to five years, subject to certain conditions, including that the Company may not pay dividends on its common stock during such period. The TRUPS II issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS II. During the second quarter of 2006, Sierra Capital Trust III issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS III), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust III in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, repricing and payment terms as the TRUPS III. The Subordinated Debentures, purchased by Trust III, represent the sole assets of the Trust III. Those Subordinated Debentures mature on September 23, 2036, bear a current interest rate of 3.33% (based on 3‑month LIBOR plus 1.40%), with repricing and payments due quarterly. Those Subordinated Debentures are redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 23 rd , June 23 rd , September 23 rd , or December 23 rd . The redemption price is par plus accrued and unpaid interest, except in the case of redemption under a special event which is defined in the debenture. The TRUPS III are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on September 23, 2036. Trust III has the option to defer payment of the distributions for a period of up to five years, subject to certain conditions, including that the Company may not pay dividends on its common stock during such period. The TRUPS III issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS III. During the third quarter of 2016, the Company acquired Coast Bancorp Statutory Trust II, which had issued 7,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS IV), with a liquidation value of $1,000 per security, for gross proceeds of $7,000,000. The entire proceeds of the issuance were invested by Trust IV in $7,217,000 of Subordinated Debentures issued by Coast Bancorp with identical maturity, re-pricing and payment terms as the TRUPS IV. The Subordinated Debentures, purchased by Trust IV, represent the sole assets of the Trust IV. Those Subordinated Debentures mature on December 15, 2037, bear a current interest rate of 3.39% (based on 3‑month LIBOR plus 1.50%), with re-pricing and payments due quarterly. Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 15 th , June 15 th , September 15 th , or December 15 th . The redemption price is par plus accrued and unpaid interest, except in the case of redemption under a special event which is defined in the debenture. The TRUPS IV are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on December 15, 2037. Coast Bancorp Statutory Trust II has the option to defer payment of the distributions for a period of up to five years, subject to certain conditions, including that the Company may not pay dividends on its common stock during such period. The TRUPS IV issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS IV. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Letter of Credit The Company holds two letters of credit with the Federal Home Loan Bank of San Francisco totaling $104,854,000. An $100,000,000 letter of credit is pledged to secure public deposits at December 31, 2019 and a $4,854,000 standby letter of credit was obtained on behalf of one of our customers to guarantee financial performance. Should the standby letter of credit be drawn upon, the customer would reimburse the Company from an existing line of credit. Federal Reserve Requirements Banks are required to maintain reserves with the Federal Reserve Bank equal to a specified percentage of their reservable deposits less vault cash. Reserve balances maintained at the Federal Reserve Bank by the Company were $-0- and $2,674,000 at December 31, 2019 and 2018, respectively. Financial Instruments with Off-Balance-Sheet Risk The Company is a party to financial instruments with off‑balance‑sheet risk in the normal course of business. These financial instruments consist of commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and letters of credit as it does for loans included on the balance sheet. The following financial instruments represent off‑balance‑sheet credit risk (dollars in thousands): December 31, 2019 2018 Fixed-rate commitments to extend credit $ 80,674 $ 96,648 Variable-rate commitments to extend credit $ 411,366 $ 685,339 Standby letters of credit $ 8,619 $ 8,966 Commitments to extend credit consist primarily of the unused or unfunded portions of the following: home equity lines of credit; commercial real estate construction loans, where disbursements are made over the course of construction; commercial revolving lines of credit; mortgage warehouse lines of credit; unsecured personal lines of credit; and formalized (disclosed) deposit account overdraft lines. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to extend credit are made at both fixed and variable rates of interest as stated in the table above. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party, while commercial letters of credit represent the Company’s commitment to pay a third party on behalf of a customer upon fulfillment of contractual requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Concentration in Real Estate Lending At December 31, 2019, in management’s judgment the Company had, a concentration of loans secured by real estate. At that date, approximately 80% of the Company’s loans were real estate related. Balances secured by commercial buildings and construction and development loans represented 60% of all real estate loans, while loans secured by non-construction residential properties accounted for 29%, and loans secured by farmland were 10% of real estate loans. Although management believes the loans within these concentrations have no more than the normal risk of collectability, a decline in the performance of the economy in general or a decline in real estate values in the Company’s primary market areas, in particular, could have an adverse impact on collectability. Concentration by Geographic Location The Company extends commercial, real estate mortgage, real estate construction and consumer loans to customers primarily in the South Central San Joaquin Valley of California, specifically Tulare, Fresno, Kern, Kings and Madera counties; the Southern California corridor between Santa Paula and Santa Clarita in the counties of Ventura and Los Angeles; and the Coastal counties of San Luis Obispo, Ventura and Santa Barbara. The ability of a substantial portion of the Company’s customers to honor their contracts is dependent on the economy in these areas. Although the Company’s loan portfolio is diversified, there is a relationship in those regions between the local agricultural economy and the economic performance of loans made to non-agricultural customers. Contingencies The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 14. SHAREHOLDERS’ EQUITY Share Repurchase Plan At December 31, 2019, the Company had a stock repurchase plan which has no expiration date. During the year ended December 31, 2019, the Company repurchased 98,603 shares. The total number of shares available for repurchase at December 31, 2019 was 380,551. Repurchases are generally made in the open market at market prices. Earnings Per Share A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows: For the Years Ended December 31, 2019 2018 2017 Basic Earnings Per Share Net income (dollars in thousands) $ 35,961 $ 29,677 $ 19,539 Weighted average shares outstanding 15,311,113 15,261,794 14,172,196 Basic earnings per share $ 2.35 $ 1.94 $ 1.38 Diluted Earnings Per Share Net income (dollars in thousands) $ 35,961 $ 29,677 $ 19,539 Weighted average shares outstanding 15,311,113 15,261,794 14,172,196 Effect of dilutive stock options 125,998 170,326 185,586 Weighted average shares outstanding 15,437,111 15,432,120 14,357,782 Diluted earnings per share $ 2.33 $ 1.92 $ 1.36 Stock options for 243,657, 157,532, and 90,000 shares of common stock were not considered in computing diluted earnings per common share for 2019, 2018, and 2017, respectively, because they were antidilutive. Stock Options On March 16, 2017 the Company’s Board of Directors approved and adopted the 2017 Stock Incentive Plan (the “2017 Plan”), which became effective May 24, 2017 pursuant to the approval of the Company’s shareholders. The 2017 Plan replaced the Company’s 2007 Stock Incentive Plan (the “2007 Plan”), which expired by its own terms on March 15, 2017. Options to purchase 376,220 shares that were granted under the 2007 Plan were still outstanding as of December 31, 2019, and remain unaffected by that plan’s expiration. The 2017 Plan provides for the issuance of both “incentive” and “nonqualified” stock options to officers and employees, and of “nonqualified” stock options to non-employee directors and consultants of the Company. The 2017 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants, although no restricted stock awards have ever been issued by the Company. The total number of shares of the Company’s authorized but unissued stock reserved for issuance pursuant to awards under the 2017 Plan was initially 850,000 shares, and the number remaining available for grant as of December 31, 2019 was 672,600. All options granted under the 2017 and 2007 Plans have been or will be granted at an exercise price of not less than 100% of the fair market value of the stock on the date of grant, exercisable in installments as provided in individual stock option agreements. In the event of a “Change in Control” as defined in the Plans, all outstanding options shall become exercisable in full (subject to certain notification requirements), and shall terminate if not exercised within a specified period of time unless such options are assumed by the successor corporation or substitute options are granted. Options also terminate in the event an optionee ceases to be employed by or to serve as a director of the Company or its subsidiaries, and the vested portion thereof must be exercised within a specified period after such cessation of employment or service. A summary of the Company’s stock option activity follows (shares in thousands, except exercise price): 2019 2018 2017 Shares Weighted Average Aggregate (1) Shares Weighted Average Shares Weighted Average Outstanding, beginning of year 453 $ 18.45 455 $ 16.33 467 $ 14.12 Exercised (83) $ 13.07 (77) $ 14.67 (70) $ 12.42 Granted 102 $ 26.97 84 $ 27.35 91 $ 28.21 Canceled (14) $ 26.77 (9) $ 26.73 (33) $ 26.41 Outstanding, end of year 458 $ 21.08 $ 3,684 453 $ 18.45 455 $ 16.33 Exercisable, end of year (2) 322 $ 18.89 $ 3,297 330 $ 15.77 400 $ 15.57 (1) The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2019. This amount changes based on changes in the market value of the Company’s stock. (2) The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2019 was 6.1 years and 5.1 years, respectively. Information related to stock options during each year follows: 2019 2018 2017 Weighted-average grant-date fair value per share $ 6.60 $ 5.94 $ 6.13 Total intrinsic value of stock options exercised $ 1,150,000 $ 988,000 $ 1,042,000 Total fair value of stock options vested $ 438,000 $ 55,000 $ 494,000 Cash received from the exercise of 83,261 shares was $1,088,000 for the period ended December 31, 2019 with a related tax benefit of $278,000. The Company is using the Black-Scholes model to value stock options. In accordance with U.S. GAAP, charges of $491,000, $373,000, and $476,000 are reflected in the Company’s income statements for the years ended December 31, 2019, 2018, and 2017, respectively, as pre-tax compensation and directors’ expense related to stock options. The related tax benefit of these options is $81,000, $67,000, and $141,000 for the years ended December 31, 2019, 2018, and 2017, respectively. Unamortized compensation expense associated with unvested stock options outstanding at December 31, 2019 was $314,000, which will be recognized over a weighted average period of 3.3 years. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | 15. REGULATORY MATTERS The Company and the Bank are subject to certain regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and the FDIC. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company 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 being phased in from 0.0% for 2015 to 2.50% by 2019. The net unrealized loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2019, the Company and the Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end December 31, 2019 and 2018, notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. Actual and required capital amounts (in thousands) and ratios are presented below at year end. 2019 2018 Capital Amount Ratio Capital Amount Ratio Leverage Ratio Sierra Bancorp and subsidiary $ 306,744 $ 282,484 Minimum requirement for "Well-Capitalized" institutions 128,769 122,962 Minimum regulatory requirement 103,016 98,370 Bank of the Sierra $ 301,963 $ 280,184 Minimum requirement for "Well-Capitalized" institutions 128,753 140,092 Minimum regulatory requirement 103,002 98,364 2019 2018 Capital Amount Ratio Capital Amount Ratio Common Equity Tier 1 Capital Ratio Sierra Bancorp and subsidiary $ 271,799 $ 247,717 Minimum requirements for "Well-Capitalized" institutions 133,095 127,709 Minimum regulatory requirement 92,143 88,414 Bank of the Sierra $ 301,963 $ 280,184 Minimum requirements for "Well-Capitalized" institutions 133,077 127,776 Minimum regulatory requirement 92,130 88,461 Tier 1 Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 306,744 $ 282,484 Minimum requirement for "Well-Capitalized" institutions 163,809 157,181 Minimum regulatory requirement 122,857 117,885 Bank of the Sierra $ 301,963 $ 280,184 Minimum requirement for "Well-Capitalized" institutions 163,787 157,263 Minimum regulatory requirement 122,840 117,947 Total Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 316,981 $ 292,618 Minimum requirement for "Well-Capitalized" institutions 204,762 196,476 Minimum regulatory requirement 163,809 157,181 Bank of the Sierra $ 312,200 $ 290,318 Minimum requirement for "Well-Capitalized" institutions 204,734 196,579 Minimum regulatory requirement 163,787 157,263 Under current rules of the Federal Reserve Board, qualified trust preferred securities are one of several “restricted” core capital elements which may be included in Tier 1 capital in an aggregate amount limited to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Amounts of restricted core capital elements in excess of these limits generally may be included in Tier 2 capital. Since the Company had less than $15 billion in assets at December 31, 2019, under the Dodd-Frank Act the Company will be able to continue to include its existing trust preferred securities in Tier 1 Capital to the extent permitted by FRB guidelines. Dividend Restrictions The Company’s ability to pay cash dividends is dependent on dividends paid to it by the Bank, and is also limited by state corporation law. California law allows a California corporation to pay dividends if the company’s retained earnings equal at least the amount of the proposed dividend plus any preferred dividend arrears amount. If a California corporation does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after the dividend the value of the company’s assets would equal or exceed the sum of its total liabilities plus any preferred dividend arrears amount. Dividends from the Bank to the Company are restricted under California law to the lesser of the Bank’s retained earnings or the Bank’s net income for the latest three fiscal years, less dividends previously declared during that period, or, with the approval of the Department of Business Oversight, to the greater of the retained earnings of the Bank, the net income of the Bank for its last fiscal year, or the net income of the Bank for its current fiscal year. As of December 31, 2019, the maximum amount available for dividend distribution under this restriction was approximately $48,956,000. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 16. BENEFIT PLANS Salary Continuation Agreements, Directors’ Retirement and Officer Supplemental Life Insurance Plans The Company has entered into salary continuation agreements with its executive officers, and has established retirement plans for qualifying members of the Board of Directors. The plans provide for annual benefits for up to fifteen years after retirement or death. The benefit obligation under these plans totaled $5,276,000 and $5,229,000 and was fully accrued for the years ended December 31, 2019 and 2018, respectively. The expense recognized under these arrangements totaled $329,000, $375,000 and $325,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Salary continuation benefits paid to former directors or executives of the Company or their beneficiaries totaled $281,000, $296,000 and $254,000 for the years ended December 31, 2019, 2018 and 2017. Certain officers of the Company have supplemental life insurance policies with death benefits available to the officers’ beneficiaries. In connection with these plans the Company has purchased, or acquired through the merger, single premium life insurance policies with cash surrender values totaling $42,528,000 and $41,561,000 at December 31, 2019 and 2018, respectively. Officer and Director Deferred Compensation Plan The Company has established a deferred compensation plan for certain members of the management group and a deferred fee plan for directors for the purpose of providing the opportunity for participants to defer compensation. The Company bears the costs for the plan’s administration and the interest earned on participant deferrals. The related administrative expense was not material for the years ended December 31, 2019, 2018 and 2017. In connection with this plan, life insurance policies with cash surrender values totaling $7,989,000 and $6,592,000 at December 31, 2019 and 2018, respectively, are included on the consolidated balance sheet in other assets. 401(k) Savings Plan The 401(k) savings plan (the “Plan”) allows participants to defer, on a pre-tax basis, up to 15% of their salary (subject to Internal Revenue Service limitations) and accumulate tax-deferred earnings as a retirement fund. The Bank may make a discretionary contribution to match a specified percentage of the first 6% of the participants’ contributions annually. The amount of the matching contribution was 95% for the year ended December 31, 2019 and 75%, for the years ended December 31, 2018 and 2017. The matching contribution is discretionary, vests over a period of five years from the participants’ hire date, and is subject to the approval of the Board of Directors. The Company contributed $1,134,000, $934,000, and $745,000 to the Plan in 2019, 2018 and 2017, respectively. |
Non-interest Income
Non-interest Income | 12 Months Ended |
Dec. 31, 2019 | |
Non-Interest Revenue [Abstract] | |
Non-interest Income | 17. NON-INTEREST INCOME The major grouping of non-interest revenue on the consolidated income statements includes several specific items: service charges on deposit accounts, gains on the sale of loans, credit card fees, check card fees, the net gain (loss) on sales and calls of investment securities available for sale, and the net increase (decrease) in the cash surrender value of life insurance. Non-interest income also includes one general category of “other income” of which the following are major components (dollars in thousands): Year Ended December 31, 2019 2018 2017 Included in other income: Amortization of limited partnerships $ (2,079) $ (2,561) $ (961) Dividends on equity investments 789 961 761 Unrealized gains recognized on equity investments 232 1,183 — Other 3,223 3,071 3,651 Total other non-interest income $ 2,165 $ 2,654 $ 3,451 |
Other Non-interest Expense
Other Non-interest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Non-interest Expense | 18. OTHER NON-INTEREST EXPENSE Other non-interest expense consisted of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Legal, audit and professional $ 4,039 $ 3,032 $ 3,289 Data processing 4,564 5,015 4,365 Advertising and promotional 2,568 2,748 2,514 Deposit services 7,962 5,413 4,426 Stationery and supplies 318 1,387 1,309 Telephone and data communication 1,529 1,479 1,654 Loan and credit card processing 675 1,142 1,029 Foreclosed assets expense (income), net 35 (730) 270 Postage 436 997 1,064 Other 2,082 1,808 1,691 Assessments 525 856 509 Total other non-interest expense $ 24,733 $ 23,147 $ 22,120 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. RELATED PARTY TRANSACTIONS During the normal course of business, the Bank enters into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): Year Ended December 31, 2019 2018 2017 Balance, beginning of year $ 2,544 $ 3,047 $ 2,253 Disbursements 18,681 13,873 15,223 Amounts repaid (18,494) (14,376) (14,429) Balance, end of year $ 2,731 $ 2,544 $ 3,047 Undisbursed commitments to related parties $ 1,829 $ 2,130 $ 2,559 Deposits from related parties held by the Bank at December 31, 2019 and 2018 amounted to $7,574,000 and $5,069,000, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 20. FAIR VALUE Fair value is defined by U.S. GAAP as the exchange price that would be received for an asset or paid to transfer a liability (an 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. U.S. GAAP also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: · Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. · Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. · Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair values for each category of financial asset noted below: Securities : The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities. Collateral-dependent impaired loans : A specific loss allowance is created for collateral dependent impaired loans, representing the difference between the face value of the loan and its current appraised value less estimated disposition costs. Foreclosed assets : Repossessed real estate (OREO) and other assets are carried at the lower of cost or fair value. Fair value is the appraised value less expected selling costs for OREO and some other assets such as mobile homes, and for all other assets fair value is represented by the estimated sales proceeds as determined using reasonably available sources. Foreclosed assets for which appraisals can be feasibly obtained are periodically measured for impairment using updated appraisals. Fair values for other foreclosed assets are adjusted as necessary, subsequent to a periodic re-evaluation of expected cash flows and the timing of resolution. If impairment is determined to exist, the book value of a foreclosed asset is immediately written down to its estimated impaired value through the income statement, thus the carrying amount is equal to the fair value and there is no valuation allowance. Assets and liabilities measured at fair value on a recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below (dollars in thousands): Fair Value Measurements at December 31, 2019, using Quoted Prices in Significant Significant Total Realized Securities: U.S. government agencies $ — $ 12,145 $ — $ 12,145 $ — Mortgage-backed securities — 400,389 — 400,389 — State and political subdivisions — 188,265 — 188,265 — Total available-for-sale securities $ — $ 600,799 $ — $ 600,799 $ — Fair Value Measurements at December 31, 2018, using Quoted Prices in Significant Significant Total Realized Securities: U.S. government agencies $ — $ 15,212 $ — $ 15,212 $ — Mortgage-backed securities — 404,733 — 404,733 — State and political subdivisions — 140,534 — 140,534 — Total available-for-sale securities $ — $ 560,479 $ — $ 560,479 $ — Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): Year Ended December 31, 2019 Quoted Prices in Significant Significant Total Collateral dependent impaired loans $ — $ 1,692 $ — $ 1,692 Foreclosed assets $ — $ 800 $ — $ 800 Year Ended December 31, 2018 Quoted Prices in Significant Significant Total Collateral dependent impaired loans $ — $ 205 $ — $ 205 Foreclosed assets $ — $ 1,082 $ — $ 1,082 |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Disclosures about Fair Value of Financial Instruments | 21. DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Disclosures include estimated fair values for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the 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 any of these estimates. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at December 31, 2019 and 2018: Cash and cash equivalents, and fed funds sold : For cash and cash equivalents and fed funds sold, the carrying amount is estimated to be fair value. Securities : The fair values of investment securities are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities when quoted prices for specific securities are not readily available. Loans and leases : Fair values of loans, excluding loans held for sale, are based on the exit price notion set forth by ASU 2016‑01 effective January 1, 2018 and estimated using discounted cash flow analyses. The estimation of fair values of loans results in a Level 3 classification as it requires various assumptions and considerable judgement to incorporate factors relevant when selling loans to market participants, such as funding costs, return requirements of likely buyers and performance expectations of the loans given the current market environment and quality of loans. Loans held for sale : Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are thus not relevant for reporting purposes. If available-for-sale loans stay on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices. Deposits : Fair values for non-maturity deposits are equal to the amount payable on demand at the reporting date, which is the carrying amount. Fair values for fixed-rate certificates of deposit are estimated using a cash flow analysis, discounted at interest rates being offered at each reporting date by the Bank for certificates with similar remaining maturities. Short-term borrowings: The carrying amounts approximate fair values for federal funds purchased, overnight FHLB advances, borrowings under repurchase agreements, and other short-term borrowings maturing within ninety days of the reporting dates. Fair values of other short-term borrowings are estimated by discounting projected cash flows at the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Long-term borrowings: The fair values of the Company’s long-term borrowings are estimated using projected cash flows discounted at the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Subordinated debentures : The fair values of subordinated debentures are determined based on the current market value for like instruments of a similar maturity and structure. Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2019 Estimated Fair Value Carrying Quoted Prices in Significant Significant Total Financial Assets: Cash and cash equivalents $ 80,077 $ 80,076 $ — $ — $ 80,076 Securities available for sale 600,799 — 600,799 — 600,799 Loans and leases held for investment 1,753,846 — — 1,761,461 1,761,461 Collateral dependent impaired loans 1,692 — 1,692 — 1,692 Financial Liabilities: Deposits: Non-interest-bearing $ 690,950 $ 690,950 $ — $ — $ 690,950 Interest-bearing 1,477,424 — 1,477,497 — 1,477,497 Fed funds purchased and repurchase agreements 25,711 — 25,711 — 25,711 Short-term borrowings 20,000 — 20,000 — 20,000 Subordinated debentures 34,945 — 30,564 — 30,564 Notional Off-balance-sheet financial instruments: Commitments to extend credit $ 492,040 Standby letters of credit 8,619 Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2018 Estimated Fair Value Carrying Quoted Prices in Significant Significant Total Financial Assets: Cash and cash equivalents $ 74,132 $ 74,132 $ — $ — $ 74,132 Securities available for sale 560,479 — 560,479 — 560,479 Loans and leases held for investment 1,724,575 — — 1,707,463 1,707,463 Collateral dependent impaired loans 205 — 205 — 205 Financial Liabilities: Deposits: Noninterest-bearing $ 662,527 $ 662,527 $ — $ — $ 662,527 Interest-bearing 1,453,813 — 1,453,048 — 1,453,048 Fed funds purchased and repurchase agreements 16,359 — 16,359 — 16,359 Short-term borrowings 56,100 — 56,100 — 56,100 Subordinated debentures 34,767 — 30,311 — 30,311 Notional Off-balance-sheet financial instruments: Commitments to extend credit $ 781,987 Standby letters of credit 8,966 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 22. BUSINESS COMBINATIONS On October 1, 2017, the Company acquired 100% of the outstanding common shares of Ojai Community Bancorp (OCB) in exchange for $809,000 in cash and 1,376,431 shares of stock. OCB results of operations were included in the Company’s results beginning October 1, 2017. Acquisition related costs of $22,000 and $41,000 are included in other operating expense in the Company’s income statement for the years ended December 31, 2019 and 2018. In accordance with GAAP, the Company recorded $18,464,000 of goodwill and $3,453,000 of core deposit intangibles. Goodwill represents the excess of the consideration transferred (cash) at the acquisition date over the fair values of the identifiable net assets acquired. The core deposit intangible is being amortized using a straight line basis over eight years. For tax purposes goodwill and core deposit intangibles are both non-deductible. The acquisition has provided the Company an opportunity to expand its market presence further in Ventura County and into Santa Barbara. Synergies and cost savings resulting from the combined operations along with the introduction of the Company’s existing products and services into the new region have provided growth opportunities and the potential to increase profitability. The following table summarizes the consideration paid for OCB and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ 809 Equity Instruments 37,370 Fair value of total consideration transferred $ 38,179 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 37,108 Securities 5,492 Loans 217,800 Premises and equipment 873 Real estate owned 3,072 Core deposit intangibles 3,453 Other assets 10,479 Total assets acquired 278,277 Deposits 230,950 Borrowed funds 24,400 Other liabilities 3,212 Total liabilities assumed 258,562 Total identifiable net assets 19,715 Goodwill 18,464 $ 38,179 On November 3, 2017, the Company acquired certain deposits of the Woodlake branch of Citizen’s Business Bank (CBB). Results of operations were included in the Company’s results beginning November 3, 2017. Acquisition related costs of $-0- and $2,000 are included in other operating expense in the Company’s income statement for the years ended December 31, 2019 and 2018. In accordance with GAAP, the Company recorded $625,000 of goodwill and $486,000 of core deposit intangibles. Goodwill represents the excess of the consideration transferred (cash) at the acquisition date over the fair values of the identifiable net assets acquired. The core deposit intangible is being amortized using a straight line basis over eight years. For tax purposes goodwill and core deposit intangibles are both non-deductible. The acquisition has provided the Company an opportunity to expand its market presence in Tulare County. Synergies and cost savings resulting from the combined operations along with the introduction of the Company’s existing products and services into the new region have provided growth opportunities and the potential to increase profitability. The following table summarizes the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ — Equity instruments — Fair value of total consideration transferred $ — Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 25,266 Loans 7 Premises and equipment 469 Core deposit intangibles 486 Total assets acquired 26,228 Deposits 26,661 Other liabilities 192 Total liabilities assumed 26,853 Total identifiable net assets (625) Goodwill 625 $ — In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was that of acquired loans. The excess of expected cash flows above the fair value of the majority of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB Accounting Standards Codification (ASC) 310‑20 (formerly SFAS 91). The Company believes that all contractual cash flows related to these loans will be collected. As such, these loans were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Loans acquired from OCB that were not subject to these requirements had a fair value and gross contractual amounts receivable of $217,800,000 and $223,036,000, as of the date of acquisition. Certain loans, for which specific credit-related deterioration, since origination, was identified, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these “purchased credit-impaired” loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on non-accrual status and have no accretable yield. These loans are discussed in further detail in Note 4 Purchased Credit Impaired Loans. In accordance with GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by OCB. The Company recorded a deferred income tax asset of $741,000 for OCB. The deferred income tax asset was related to net operating loss carry-forward, as well as other tax attributes of OCB, along with the effects of fair value adjustments resulting from applying the acquisition method of accounting. The fair value of savings and transaction deposit accounts acquired from OCB were assumed to approximate their carry value, as these accounts have no stated maturity and are payable on demand. The operating results of the Company for the twelve months ending December 31, 2019, 2018 and 2017 include the operating results of OCB since their respective acquisition dates. The following table presents the net interest and other income, basic earnings per share and diluted earnings per share as if the acquisition with OCB was effective as of January 1, 2019, 2018 and 2017 for the respective year in which the acquisition was closed. The unaudited pro forma information in the following table is intended for informational purposes only and is not necessarily indicative of our future operating results for operating results that would have occurred had the mergers been completed at the beginning of each respective year. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions. Unaudited pro forma net interest income, net income and earnings per share presented below (dollars in thousands, except per share data): Pro Forma Pro Forma Pro Forma Year Ended Year Ended Year Ended 2019 2018 2017 Net interest income $ 97,369 $ 92,394 $ 82,985 Net income $ 35,961 $ 29,677 $ 19,416 Basic earnings per share $ 2.35 $ 1.94 $ 1.37 Diluted earnings per share $ 2.33 $ 1.92 $ 1.35 |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Qualified Affordable Housing Project Investments | 23. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS T he Company invests in qualified affordable housing projects. At December 31, 2019 and 2018, the balance of the investment for qualified affordable housing projects totaled $4,104,000 and $5,905,000, respectively. These balances are reflected in the other assets line on the consolidated balance sheet. Unfunded commitments related to these investments in qualified affordable housing projects totaled $1,251,000 and $1,958,000 at December 31, 2019 and 2018, respectively. During the years ended December 31, 2019, 2018 and 2017, the Company recognized amortization expense on these investments of $1,801,000, $2,535,000, and $961,000, respectively which was included within pretax income on the consolidated statements of income. Additionally, during the years ended December 31, 2019 and 2018, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $538,000 and $632,000, respectively. The Company had no impairment losses during the years ended December 31, 2019 and 2018. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | 24. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-interest Income. The following table presents the Company’s sources of Non-interest Income for the twelve months ended December 31, 2019 and 2018. Items outside the scope of ASC 606 are noted as such. Year Ended December 31, 2019 2018 Non-interest income Service charges on deposits Returned item and overdraft fees $ 6,854 $ 6,574 Other service charges on deposits 5,888 5,865 Debit card interchange income 6,584 5,878 Loss on limited partnerships (1) (2,079) (2,561) Dividends on equity investments (1) 789 961 Unrealized gains recognized on equity investments (1) 232 1,183 Net gains (losses) on sale of securities (1) (198) 2 Other (1) 5,407 3,662 Total non-interest income $ 23,477 $ 21,564 Non-interest expense Salaries and employee benefits (1) $ 35,978 $ 36,133 Occupancy expense (1) 9,845 10,295 Gains on sale or OREO (107) (1,423) Other (1) 24,862 25,019 Total non-interest expense $ 70,578 $ 70,024 (1) Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financial
Parent Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Only Condensed Financial Statements | 25. PARENT ONLY CONDENSED FINANCIAL STATEMENTS BALANCE SHEETS Years Ended December 31, 2019 and 2018 (dollars in thousands) 2019 2018 ASSETS Cash and due from banks $ 4,818 $ 2,338 Investments in bank subsidiary 339,449 305,492 Investment in trust subsidiaries 1,145 1,145 Other assets 21 20 $ 345,433 $ 308,995 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Other liabilities $ 1,203 $ 1,204 Subordinated debentures 34,945 34,767 Total liabilities 36,148 35,971 Shareholders' equity: Common stock 116,486 115,573 Retained earnings 186,867 164,117 Accumulated other comprehensive income, net of taxes 5,932 (6,666) Total shareholders' equity 309,285 273,024 $ 345,433 $ 308,995 STATEMENTS OF INCOME Years Ended December 31, 2019, 2018 and 2017 (dollars in thousands) 2019 2018 2017 Income: Dividend from subsidiary $ 17,200 $ 7,750 $ 15,500 Gain on sale of securities — — 918 Other operating income — — 16 Total income 17,200 7,750 16,434 Expense Salaries and employee benefits 582 516 481 Other expenses 2,664 2,533 2,276 Total expenses 3,246 3,049 2,757 Income before income taxes 13,954 4,701 13,677 Income tax benefit (1,138) (1,150) (1,602) Income before equity in undistributed income of subsidiary 15,092 5,851 15,279 Equity in undistributed income of subsidiary 20,869 23,826 4,260 Net income $ 35,961 $ 29,677 $ 19,539 STATEMENTS OF CASH FLOWS Years Ended December 31, 2019, 2018 and 2017 (dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 35,961 $ 29,677 $ 19,539 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net loss of subsidiary (20,869) (23,826) (4,260) Gain on sale of securities — — (918) Increase (decrease) in other assets 178 183 170 (Decrease) increase in other liabilities (2) 28 (757) Net cash provided for operating activities 15,268 6,062 13,774 Cash flows from investing activities: Sales of securities — — 1,480 Cash paid from acquisitions, net — (6) (7,061) Net cash provided by investing activities — (6) (5,581) Cash flows from financing activities: Change in other borrowings — — — Stock options exercised 1,088 1,131 764 Repurchase of common stock (2,544) — — Dividends paid (11,332) (9,757) (7,935) Net cash used in by financing activities (12,788) (8,626) (7,171) Net decrease (increase) in cash and cash equivalents 2,480 (2,570) 1,022 Cash and cash equivalents, beginning of year 2,338 4,908 3,886 Cash and cash equivalents, end of year $ 4,818 $ 2,338 $ 4,908 |
Condensed Quarterly Results of
Condensed Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Condensed Quarterly Results of Operations | 26. CONDENSED QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth the Company’s unaudited results of operations for the four quarters of 2019 and 2018. In management’s opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). 2019 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 27,775 $ 27,901 $ 27,788 $ 27,483 Interest expense 2,953 3,526 3,589 3,510 Net interest income 24,822 24,375 24,199 23,973 Provision for loan and lease losses 500 1,350 400 300 Non-interest income 5,847 5,869 5,855 5,906 Non-interest expense 17,982 17,088 17,656 17,852 Net income before taxes 12,187 11,806 11,998 11,727 Provision for taxes 2,902 2,854 3,169 2,832 Net income $ 9,285 $ 8,952 $ 8,829 $ 8,895 Diluted earnings per share $ 0.60 $ 0.58 $ 0.57 $ 0.58 Cash dividend per share $ 0.19 $ 0.19 $ 0.18 $ 0.18 2018 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 27,042 $ 26,236 $ 24,883 $ 23,476 Interest expense 2,984 2,460 2,083 1,716 Net interest income 24,058 23,776 22,800 21,760 Provision for loan and lease losses 1,400 2,450 300 200 Non-interest income 5,279 5,723 5,429 5,133 Non-interest expense 17,036 17,807 17,294 17,887 Net income before taxes 10,901 9,242 10,635 8,806 Provision for taxes 2,997 2,171 2,643 2,096 Net income $ 7,904 $ 7,071 $ 7,992 $ 6,710 Diluted earnings per share $ 0.51 $ 0.46 $ 0.52 $ 0.44 Cash dividend per share $ 0.16 $ 0.16 $ 0.16 $ 0.16 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years’ balances to conform to classifications used in 2019. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. In accordance with U.S. GAAP, the Company’s investments in Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company’s consolidated balance sheet. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and lease losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies and monitors economic conditions. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions with original maturities within 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. |
Securities | Securities Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Debt securities available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. Although the Company currently has the intent and the ability to hold the securities in its investment portfolio to maturity, the securities are all marketable and are currently classified as “available for sale” to allow maximum flexibility with regard to interest rate risk and liquidity management. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
FHLB Stock and Other Investments | FHLB Stock and Other Investments The Bank is a member of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost in other assets, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank’s investment in FHLB stock was approximately $10,727,000 and $9,894,000 at December 31, 2019 and 2018, respectively. Pursuant to the adoption of ASU 2016‑01 on January 1, 2018, the Company elected the measurement alternative for measuring equity securities without readily determinable fair values at cost less impairment, plus or minus observable price changes in orderly transactions. The carrying amount of equity securities without readily determinable fair values is $2,016,000 and $1,784,000 at December 31, 2019 and 2018, respectively. Equity securities primarily consist of an investment in Pacific Coast Bankers’ Bank (“PCBB”). A remeasurement gain of $232,000 and $1,183,000 was recorded to income during the years ended December 31, 2019 and 2018, on PCBB stock. $1,415,000 in cummulative remeasurement gains have been recorded as of December 31, 2019 on PCBB stock. Adjustments to the carrying value of PCBB stock were based on observable activity in the stock. |
Loans Held for Sale | Loans Held for Sale The Company may originate loans intended to be sold on the secondary market. Loans originated and intended for sale in the secondary market are carried at cost which approximates fair value since these loans are typically sold shortly after origination. The loan’s cost basis includes unearned deferred fees and costs, and premiums and discounts. If loans held for sale remain on our books for an extended period of time the fair value of those loans is determined using quoted secondary market prices. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans that might be held for sale by the Company typically consist of residential real estate loans. Loans classified as held for sale, if any, are disclosed in Note 4 to the consolidated financial statements. Gains and losses on sales of loans are recognized at the time of sale and are calculated based on the difference between the selling price and the allocated book value of loans sold. Book value allocations are determined in accordance with U.S. GAAP. Any inherent risk of loss on loans sold is transferred to the buyer at the date of sale. The Company has issued various representations and warranties associated with the sale of loans. These representations and warranties may require the Company to repurchase loans with underwriting deficiencies as defined per the applicable sales agreements and certain past due loans within 90 days of the sale. The Company did not experience losses during the years ended December 31, 2019, 2018, or 2017 regarding these representations and warranties. |
Loans and Leases (Financing Receivables) | Loans and Leases (Financing Receivables) Our credit quality classifications of Loans and Leases include Pass, Special Mention, Substandard and Impaired. These classifications are defined in Note 4 to the consolidated financial statements. Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premiums and discounts, write-downs, and an allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans and leases over the contractual life of the loan using both the effective interest and straight line methods without anticipating prepayments. Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on non-accrual. Once a loan is on non-accrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans and leases are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Impaired loans are classified as either nonaccrual or accrual, depending on individual circumstances regarding the collectability of interest and principal according to the contractual terms. |
Purchased Credit Impaired Loans | Purchased Credit Impaired Loans The Company purchases individual loans and groups of loans, some of which may show evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, since there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows for the loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income |
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when due to a borrower’s financial difficulties the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. A TDR is generally considered to be in default when it appears likely that the customer will not be able to repay all principal and interest pursuant to the terms of the restructured agreement. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses is maintained at a level which, in management’s judgment, is adequate to absorb loan and lease losses inherent in the loan and lease portfolio. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and by principal recovered on charged-off balances. It is reduced by principal charge-offs. The amount of the allowance is based on management’s evaluation of the collectability of the loan and lease portfolio, changes in its risk profile, credit concentrations, historical trends, and economic conditions. This evaluation also considers the balance of impaired loans and leases. A loan or lease is impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan or lease agreement. The impairment on certain individually identified loans or leases is measured based on the present value of expected future cash flows discounted at the original effective interest rate of the loan or lease. As a practical expedient, impairment may be measured based on the loan’s or lease’s observable market price or the fair value of collateral if the loan or lease is collateral dependent. The amount of impairment, if any, is recorded through the provision for loan and lease losses and is added to the allowance for loan and lease losses, with any changes over time recognized as additional bad debt expense in our provision for loan losses. Impaired loans with homogenous characteristics, such as one-to-four family residential mortgages and consumer installment loans, may be subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, historical loss experience, and other factors. General reserves cover non-impaired loans and are based on historical net loss rates for each portfolio segment by call report code, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments; changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in quality of the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit; and the effect of the other external factors such as competition and legal and regulatory requirements. Most of the Company’s business activity is with customers located in California within the Southern Central San Joaquin Valley; in the corridor stretching between Santa Paula and Santa Clarita in Southern California, and on the Central Coast. Therefore the Company’s exposure to credit risk is significantly affected by changes in the economy in those regions. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for loan losses. Portfolio segments identified by the Company include Agricultural, Commercial and Industrial, Real Estate, Small Business Administration, and Consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans; and credit scores, debt-to-income ratios, collateral type and loan-to-value ratios for consumer loans. Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Business Oversight, as an integral part of their examination processes, review the allowance for loan and lease losses. These agencies may require additions to the allowance for loan and lease losses based on their judgment about information available at the time of their examinations. |
Reserve for Off-Balance Sheet Commitments | Reserve for Off-Balance Sheet Commitments In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, mortgage warehouse lines of credit, construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of the ALLL. The reserve for off-balance sheet commitments is an estimated loss contingency which is included in other liabilities on the Consolidated Balance Sheets. The adjustments to the reserve for off-balance sheet commitments are reported as a noninterest expense. This reserve is for estimated losses that could occur when the Company is contractually obligated to make a payment under these instruments and must seek repayment from a party that may not be as financially sound in the current period as it was when the commitment was originally made. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five to thirty-nine years. The useful lives of furniture, fixtures and equipment range between three to twenty years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. |
Foreclosed Assets | Foreclosed Assets Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for loan and lease losses. A valuation allowance for losses on foreclosed assets is maintained to provide for declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other non-interest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other non-interest expense as incurred. Operating costs after acquisition are expensed. The Company had one foreclosed residential real estate property recorded at December 31, 2019, as a result of obtaining physical possession of the property. At December 31, 2019, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process was $1,089,000. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company acquired Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank and the Woodlake Branch of Citizen’s Business Bank in 2017. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected December 31, 2019 as the date to perform the annual impairment test for 2019. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2019, 2018, and 2017. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company’s other intangible assets consist solely of core deposit intangible assets (CDI’s) arising from the acquisitions of Santa Clara Valley Bank, Coast National Bank, a Citizen’s Business Bank Porterville branch deposit portfolio, Ojai Community Bank, the Woodlake Branch of Citizen’s Business Bank and the Lompoc branch of Santa Maria Community Bank. All of the CDI’s are being amortized on a straight line basis over eight years, except for the Citizen’s Business Bank Porterville branch deposit portfolio which is being amortized on a straightline basis over five years. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 13 to the consolidated financial statements. |
Income Taxes | Income Taxes The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2019 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. |
Salary Continuation Agreements and Directors' Retirement Plan | Salary Continuation Agreements and Directors’ Retirement Plan The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director’s or executive’s expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director’s or employee’s services to that date. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available for sale securities are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2019, the Company had one stock-based compensation plan, the Sierra Bancorp 2017 Stock Incentive Plan (the “2017 Plan”), which was adopted by the Company’s Board of Directors on March 16, 2017 and approved by the Company’s shareholders on May 24, 2017. The 2017 Plan replaced the Company’s 2007 Stock Incentive Plan (the “2007” Plan), which expired by its own terms on March 15, 2017. Options to purchase shares granted under the 2007 Plan that remained outstanding were unaffected by that plan’s termination. The 2017 Plan covers 850,000 shares of the Company’s authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2017 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. We have not issued, nor do we currently have plans to issue, restricted stock awards. Compensation cost and director’s expense is recognized for stock options issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to value stock options. The “multiple option” approach is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding subsequent to vesting, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of each option is estimated on the date of grant using the following assumptions: Years Ended December 31, 2019 2018 2017 Dividend yield Expected Volatility Risk-free interest rate Expected option life 5.4 years 5.3 years 5.0 years |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016 the FASB issued ASU 2016‑01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other things, the guidance in this ASU (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements, and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities are required to apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, except for the amendment related to equity securities without readily determinable fair values which should be applied prospectively to equity investments that exist as of the date of adoption. The Company adopted ASU 2016‑01 effective January 1, 2018, and recorded an increase in equity securities without readily determinable values and non-interest revenue for $1,183,000. In accordance with (iv) above, the Company measured the fair value of its loan portfolio at December 31, 2019 using an exit price notion. See Note 20 Fair Value . In February 25, 2016, the FASB issued Accounting Standards Update 2016‑02, Leases (Topic 842). The new standard is being issued to increase the transparency and comparability around lease obligations. Previously unrecorded off-balance sheet obligations will now be brought more prominently to light by presenting lease liabilities on the face of the balance sheet, accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. This Update is generally effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has several lease agreements, including 21 branch locations, one administrative office and three offsite ATM locations which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. Effective January 1, 2019 the Company adopted ASU 2016‑02 recording a right of use asset totaling approximately $10 million, and a corresponding lease liability . See Note 6 to the consolidated financial statements for more detailed information. In September 2016 the FASB issued ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which eliminates the probable initial recognition threshold for credit losses in current U.S. GAAP, and instead requires an organization to record a current estimate of all expected credit losses over the contractual term for financial assets carried at amortized cost. This is commonly referred to as the current expected credit losses (“CECL”) methodology. Expected credit losses for financial assets held at the reporting date will be measured based on historical experience, current conditions, and reasonable and supportable forecasts. Another change from existing U.S. GAAP involves the treatment of purchased credit deteriorated assets, which are more broadly defined than purchased credit impaired assets in current accounting standards. When such assets are purchased, institutions will estimate and record an allowance for credit losses that is added to the purchase price rather than being reported as a credit loss expense. Furthermore, ASU 2016‑13 updates the measurement of credit losses on available-for-sale debt securities, by mandating that institutions record credit losses on available-for-sale debt securities through an allowance for credit losses rather than the current practice of writing down securities for other-than-temporary impairment. ASU 2016‑13 will also require the enhancement of financial statement disclosures regarding estimates used in calculating credit losses. ASU 2016‑13 does not change the existing write-off principle in U.S. GAAP or current nonaccrual practices, nor does it change accounting requirements for loans held for sale or certain other financial assets which are measured at the lower of amortized cost or fair value. As a public business entity that is an SEC filer, ASU 2016‑13 becomes effective for the Company on January 1, 2020, although early application is permitted for 2019. On the effective date, institutions will apply the new accounting standard as follows: for financial assets carried at amortized cost, a cumulative-effect adjustment will be recognized on the balance sheet for any change in the related allowance for loan and lease losses generated by the adoption of the new standard; financial assets classified as purchased credit impaired assets prior to the effective date will be reclassified as purchased credit deteriorated assets as of the effective date, and will be grossed up for the related allowance for expected credit losses created as of the effective date; and, debt securities on which other-than-temporary impairment had been recognized prior to the effective date will transition to the new guidance prospectively with no change in their amortized cost basis. The Company adopted ASU 2016-13 on January 1, 2020 and while the exact extent of the impact has not yet been definitively determined, initial estimates indicate that our allowance for loan and lease losses will increase by $12,000,000 relative to current levels utilizing a discounted cash flow methodology with forecasting. In January 2017 the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment . This guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation, and goodwill impairment will simply be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. We have not been required to record any goodwill impairment to date, and after a preliminary review do not expect that this guidance would require us to do so given current circumstances. Nevertheless, we will continue to evaluate ASU 2017‑04 to more definitely determine its potential impact on the Company’s consolidated financial position, results of operations and cash flows. In March 2017 the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities . The amendments in this update shorten the amortization period for certain callable debt securities held at a premium, by requiring the premium to be amortized to the earliest call date. Under current guidance, the premium on a callable debt security is generally amortized as an adjustment to yield over the contractual life of the instrument, and any unamortized premium is recorded as a loss in earnings upon the debtor’s exercise of a call provision. Under ASU 2017‑08, because the premium will be amortized to the earliest call date, entities will no longer recognize a loss in earnings if a debt security is called prior to the contractual maturity date. The amendments do not require an accounting change for securities held at a discount; discounts will continue to be amortized as an adjustment to yield over the contractual life of the debt instrument. ASU 2017‑08 is effective for public business entities, including the Company, for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. To apply ASU 2017‑08, entities must use a modified retrospective approach, with the cumulative-effect adjustment recognized to retained earnings at the beginning of the period of adoption. Entities are also required to provide disclosures about a change in accounting principle in the period of adoption. The Company adopted ASU 2017‑08 effective January 1, 2019 with no material impact on our financial statements or operations. In February 2018 the FASB issued ASU 2018‑02, Income Statement - Reporting Comprehensive Income (Topic 220) : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This ASU requires a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (Tax Act), which was enacted on December 22, 2017. The Tax Act included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We have adopted the guidance during the first quarter of 2018, retrospectively to December 31, 2017. The change in accounting principle will be accounted for as a cumulative-effect adjustment to the balance sheet resulting in a $413,000 increase to retained earnings and a corresponding decrease to AOCI on December 31, 2017. In August 2018 the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, as part of its disclosure framework project. Pursuant to this guidance, disclosures that will no longer be required include the following: transfers between Level 1 and Level 2 of the fair value hierarchy; transfers in and out of Level 3 for nonpublic entities, as well as purchases and issuances and the Level 3 roll forward; a company’s policy for determining when transfers between any of the three levels have occurred; the valuation processes used for Level 3 measurements; and, the changes in unrealized gains or losses presented in earnings for Level 3 instruments held at the balance sheet date for nonpublic entities. The following are additional disclosure requirements: for public entities, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 instruments held at the balance sheet date; for public entities, the range and weighted average of significant unobservable inputs used for Level 3 measurements, although for certain unobservable inputs the entity will be allowed to disclose other quantitative information in place of the weighted average to the extent that it would be a more reasonable and rational method to reflect the distribution of unobservable inputs; for nonpublic entities, some form of quantitative information about significant unobservable inputs used in Level 3 fair value measurements; and, for certain investments in entities that calculate the net asset value, disclosures will be required about the timing of liquidation and redemption restrictions lapsing if the latter has been communicated to the reporting entity. The guidance also clarifies that the Level 3 measurement uncertainty disclosure should communicate information about the uncertainty at the balance sheet date. ASU 2018‑13 is effective for all entities in fiscal years beginning after December 15, 2019, including interim periods. Early adoption is permitted. In addition, an entity may early adopt any of the removed or modified disclosures immediately and delay adoption of the new disclosures until the effective date. The Company adopted ASU 2018-13 effective January 1, 2020 which impacts the disclosure requirements for fair value measurement. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326) , which provides transition relief for entities adopting ASU 2016-13. ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date, in order to maintain the same amortized cost basis before and after the effective date of this update. Amounts previously recognized in accumulated other comprehensive income as of the date of adoption that relate to improvements in cash flows expected to be collected should continue to be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after the date of adoption should be recorded in earnings when received. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. For public business entities that are SEC filers, including the Company, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has evaluated the potential impact of this guidance, and does not expect the adoption of ASU 2019-05 to have a material impact on our financial statements or operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Share-based Compensation, Fair Value Assumptions | The fair value of each option is estimated on the date of grant using the following assumptions: Years Ended December 31, 2019 2018 2017 Dividend yield Expected Volatility Risk-free interest rate Expected option life 5.4 years 5.3 years 5.0 years Revenue Recognition Revenue from contracts with customers comprises the noninterest income earned by the Company in exchange for services provided to customers. Income associated with customer contracts generally involve transaction prices that are fixed and performance obligations which are satisfied as services are rendered. In most cases recognition occurs within a single financial reporting period as there is little or no judgement involved in the timing of revenues. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. Service Charges on Deposit Accounts comprise charges on retail and business accounts. Business customers can earn credits depending on account type and deposit balances maintained with the Company, which may be used to offset fees. Fees and credits are based on predetermined, agreed-upon rates. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and those related costs to provide services on a gross basis in our financial statements. Debit card interchange income is derived from our customers’ use of various interchange and ATM/debit card networks which are the primary sources of revenue generated in an agent capacity. |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Value of Available-For-Sale Investment Securities | The amortized cost and fair value of the securities available-for-sale are as follows (dollars in thousands): December 31, 2019 Amortized Gross Gross Fair Value U.S. government agencies $ 12,125 $ 124 $ (104) $ 12,145 Mortgage-backed securities 398,353 3,354 (1,318) 400,389 State and political subdivisions 181,900 6,478 (113) 188,265 Total securities $ 592,378 $ 9,956 $ (1,535) $ 600,799 December 31, 2018 Amortized Gross Gross Fair Value U.S. government agencies $ 15,553 $ 12 $ (353) $ 15,212 Mortgage-backed securities 414,208 398 (9,873) 404,733 State and political subdivisions 140,181 1,206 (853) 140,534 Total securities $ 569,942 $ 1,616 $ (11,079) $ 560,479 |
Realized Gain (Loss) on Investments | Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): December 31, 2019 2018 2017 Gross gains on sales and calls of securities $ 230 $ 21 $ 1,024 Gross losses on sales and calls of securities (428) (19) (524) Net (losses) gains on sales and calls of securities $ (198) $ 2 $ 500 |
Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position | At December 31, 2019 and 2018, the Company had 198 and 552 securities with unrealized gross losses, respectively. Information pertaining to these securities aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands): December 31, 2019 Less than twelve months Twelve months or longer Gross Fair Value Gross Fair Value U.S. government agencies $ (32) $ 3,240 $ (72) $ 2,689 Mortgage-backed securities (494) 100,518 (824) 78,538 State and political subdivisions (113) 19,762 — — Total $ (639) $ 123,520 $ (896) $ 81,227 December 31, 2018 Less than twelve months Twelve months or longer Gross Fair Value Gross Fair Value U.S. government agencies $ (54) $ 2,815 $ (299) $ 10,764 Mortgage-backed securities (717) 69,686 (9,156) 273,230 State and political subdivisions (249) 33,864 (604) 22,213 Total $ (1,020) $ 106,365 $ (10,059) $ 306,207 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at December 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties (dollars in thousands): Amortized Cost Fair Value Maturing within one year $ 7,155 $ 7,244 Maturing after one year through five years 17,008 17,171 Maturing after five years through ten years 33,805 34,881 Maturing after ten years 136,057 141,114 Mortgage-backed securities 189,554 190,488 Collateralized mortgage obligations 208,799 209,901 $ 592,378 $ 600,799 |
Summary of Amortized Cost and Fair Values of General Obligation and Revenue Bonds | The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations (dollars in thousands): December 31, 2019 December 31, 2018 General obligation bonds Amortized Cost Fair Value Amortized Cost Fair Value State of Issuance: Texas $ 59,439 $ 61,519 $ 36,331 $ 36,199 Washington 23,392 24,313 16,036 16,062 California 23,882 25,030 26,928 27,357 Ohio 7,144 7,271 8,639 8,601 Other (23 and 22 states, respectively) 42,182 43,454 28,357 28,414 Total general obligation bonds 156,039 161,587 116,291 116,633 Revenue bonds State of Issuance: Texas 6,298 7,526 7,506 Washington 1,737 1,751 1,780 California 365 380 367 374 Ohio 2,069 2,066 — — Other (12 and 12 states, respectively) 15,655 16,078 14,246 14,241 Total revenue bonds 25,861 26,678 23,890 23,901 Total obligations of states and political subdivisions $ 181,900 $ 188,265 $ 140,181 $ 140,534 The following table summarizes the amortized cost and fair value of revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the revenue source of repayment for our largest source concentrations (dollars in thousands): December 31, 2019 December 31, 2018 Revenue bonds Amortized Cost Fair Value Amortized Cost Fair Value Revenue Source: Water $ 7,515 $ 7,775 $ 6,942 $ 6,946 Sewer 4,760 4,811 1,392 1,398 College & university 1,997 2,019 2,583 2,604 Sales tax 1,949 1,995 2,932 2,901 Electric & power 1,421 1,521 1,027 1,047 Lease 3,596 3,678 2,053 2,068 Other (9 and 12 sources, respectively) 4,623 4,879 6,961 6,937 Total revenue bonds $ 25,861 $ 26,678 $ 23,890 $ 23,901 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Participating Mortgage Loans | The composition of the loan and lease portfolio is as follows (dollars in thousands): December 31, 2019 2018 Real estate: Secured by commercial and professional office properties, including construction and development $ 847,865 $ 848,691 Secured by residential properties 410,216 453,698 Secured by farm land 144,033 151,541 Total real estate loans 1,402,114 1,453,930 Agricultural 48,036 49,103 Commercial and industrial 115,532 128,220 Mortgage warehouse lines 189,103 91,813 Consumer 7,780 8,862 Total loans 1,762,565 1,731,928 Deferred loan and lease origination cost, net 2,896 2,602 Allowance for loan and lease losses (9,923) (9,750) Loans, net $ 1,755,538 $ 1,724,780 |
Credit Quality Classifications for Loan Balances | Credit quality classifications as of December 31, 2019 were as follows (dollars in thousands): Pass Special Substandard Impaired Total Real estate: 1-4 family residential construction $ 105,979 $ — $ — $ — $ 105,979 Other construction/land 90,761 98 — 554 91,413 1-4 family - closed-end 194,572 2,425 164 3,020 200,181 Equity lines 43,111 1,995 72 4,421 49,599 Multi-family residential 54,104 — — 353 54,457 Commercial real estate owner occupied 334,460 4,005 3,384 2,034 343,883 Commercial real estate non-owner occupied 409,289 1,164 11 2,105 412,569 Farmland 142,594 1,048 132 259 144,033 Total real estate 1,374,870 10,735 3,763 12,746 1,402,114 Agricultural 47,814 217 — 5 48,036 Commercial and industrial 100,584 13,415 556 977 115,532 Mortgage warehouse lines 189,103 — — — 189,103 Consumer loans 7,245 85 25 425 7,780 Total gross loans and leases $ 1,719,616 $ 24,452 $ 4,344 $ 14,153 $ 1,762,565 Credit quality classifications as of December 31, 2018 were as follows (dollars in thousands): Pass Special Substandard Impaired Total Real estate: 1-4 family residential construction $ 105,676 $ — $ — $ — $ 105,676 Other construction/land 108,304 231 — 488 109,023 1-4 family - closed-end 230,022 1,861 1,310 3,632 236,825 Equity lines 49,346 2,194 64 4,716 56,320 Multi-family residential 54,504 — — 373 54,877 Commercial real estate owner occupied 292,886 4,192 3,021 1,225 301,324 Commercial real estate non-owner occupied 429,835 2,730 4,354 1,425 438,344 Farmland 148,680 1,073 146 1,642 151,541 Total real estate 1,419,253 12,281 8,895 13,501 1,453,930 Agricultural 48,517 580 — 6 49,103 Commercial and industrial 110,413 15,686 377 1,744 128,220 Mortgage warehouse lines 91,813 — — — 91,813 Consumer loans 7,851 151 39 821 8,862 Total gross loans and leases $ 1,677,847 $ 28,698 $ 9,311 $ 16,072 $ 1,731,928 |
Allowance for Credit Losses on Financing Receivables | The following tables present the activity in the allowance for loan losses and the recorded investment in loans and impairment method by portfolio segment for each of the years ending December 31, 2019, 2018, and 2017 (dollars in thousands): Commercial and Real Estate Agricultural Industrial (1) Consumer Unallocated Total Allowance for credit losses: Balance, December 31, 2016 $ 3,548 209 4,279 1,208 457 9,701 Charge-offs (101) (154) (669) (2,161) — (3,085) Recoveries 2,235 5 310 1,017 — 3,567 Provision (896) 148 (1,148) 1,167 (411) (1,140) Balance, December 31, 2017 4,786 208 2,772 1,231 46 9,043 Charge-offs (2,474) — (608) (2,226) — (5,308) Recoveries 374 23 148 1,120 — 1,665 Provision 3,145 25 82 1,114 (16) 4,350 Balance, December 31, 2018 5,831 256 2,394 1,239 30 9,750 Charge-offs (1,190) — (1,274) (2,409) — (4,873) Recoveries 647 — 690 1,159 — 2,496 Provision 347 (63) 875 1,289 102 2,550 Balance, December 31, 2019 $ 5,635 $ 193 $ 2,685 $ 1,278 $ 132 $ 9,923 (1) Includes mortgage warehouse lines Loans evaluated for impairment: December 31, 2019 December 31, 2018 December 31, 2017 Individually Collectively Individually Collectively Individually Collectively Real estate $ 12,745 $ 1,389,368 $ 13,501 $ 1,440,429 $ 13,072 $ 1,213,644 Agricultural 5 48,031 6 49,097 — 46,796 Commercial and industrial (1) 977 303,658 1,744 218,289 2,064 271,618 Consumer 425 7,355 821 8,041 1,277 9,349 Total loans $ 14,152 $ 1,748,412 $ 16,072 $ 1,715,856 $ 16,413 $ 1,541,407 (2) Includes mortgage warehouse lines Reserves based on method of evaluation for impairment: December 31, 2019 December 31, 2018 December 31, 2017 Specific General Specific General Specific General Real estate $ 493 $ 5,142 $ 937 $ 4,894 $ 728 $ 4,058 Agricultural 1 192 2 254 — 208 Commercial and industrial (1) 219 2,466 918 1,476 188 2,584 Consumer 114 1,164 151 1,088 237 994 Unallocated — 132 — 30 — 46 Total loan loss reserves $ 827 $ 9,096 $ 2,008 $ 7,742 $ 1,153 $ 7,890 (1) Includes mortgage warehouse lines |
Aging of Loan Balances by Number of Days Past Due | The following tables present the recorded investment in nonaccrual loans and loans past due over 30 days as of December 31, 2019 and December 31, 2018 (dollars in thousands, except footnotes): December 31, 2019 30-59 Days 60-89 Days 90 Days Or Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 105,979 $ 105,979 $ — Other construction/land 16 — — 16 91,397 91,413 31 1-4 family - closed-end 485 380 659 1,524 198,657 200,181 741 Equity lines 177 10 78 265 49,334 49,599 480 Multi-family residential — — — — 54,457 54,457 — Commercial real estate owner occupied 1,552 — 88 1,640 342,243 343,883 1,440 Commercial real estate non-owner occupied 500 — 1,605 2,105 410,464 412,569 2,105 Farmland — — — — 144,033 144,033 258 Total real estate loans 2,730 390 2,430 5,550 1,396,564 1,402,114 5,055 Agricultural — — — — 48,036 48,036 — Commercial and industrial 160 215 — 375 115,157 115,532 651 Mortgage warehouse lines — — — — 189,103 189,103 — Consumer loans 55 12 2 69 7,711 7,780 31 Total gross loans and leases $ 2,945 $ 617 $ 2,432 $ 5,994 $ 1,756,571 $ 1,762,565 $ 5,737 (1) Included in Total Financing Receivables (2) As of December 31, 2019 there were no loans over 90 days past due and still accruing . December 31, 2018 30-59 Days 60-89 Days 90 Days Or Total Financing Non-Accrual Past Due Past Due Due (2) Total Past Due Current Receivables Loans (1) Real Estate: 1-4 family residential construction $ — $ — $ — $ — $ 105,676 $ 105,676 $ — Other construction/land 210 — 27 237 108,786 109,023 82 1-4 family - closed-end 319 — 775 1,094 235,731 236,825 799 Equity lines 1,471 — 57 1,528 54,792 56,320 408 Multi-family residential — — — — 54,877 54,877 — Commercial real estate owner occupied 183 — 102 285 301,039 301,324 605 Commercial real estate non-owner occupied 49 — — 49 438,295 438,344 49 Farmland 1,555 — — 1,555 149,986 151,541 1,642 Total real estate loans 3,787 — 961 4,748 1,449,182 1,453,930 3,585 Agricultural — — — — 49,103 49,103 — Commercial and industrial 1,567 83 886 2,536 125,684 128,220 1,425 Mortgage warehouse lines — — — — 91,813 91,813 — Consumer loans 95 45 56 196 8,666 8,862 146 Total gross loans and leases $ 5,449 $ 128 $ 1,903 $ 7,480 $ 1,724,448 $ 1,731,928 $ 5,156 (1) Included in Total Financing Receivables (2) As of December 31, 2018 there were no loans over 90 days past due and still accruing. |
Impaired Financing Receivables | Individually impaired loans as of December 31, 2019 and December 31, 2018 were as follows (dollars in thousands): December 31, 2019 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 656 537 157 563 32 1-4 family - closed-end 2,298 2,298 58 2,365 146 Equity lines 4,173 4,120 252 4,185 200 Multifamily residential 353 353 17 361 23 Commercial real estate - owner occupied 593 593 6 606 38 Commercial real estate - non-owner occupied — — — — — Farmland 237 237 3 256 — Total real estate 8,310 8,138 493 8,336 439 Agricultural 5 5 1 6 — Commercial and industrial 915 896 219 1,140 29 Consumer loans 464 425 114 469 35 9,694 9,464 827 9,951 503 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 52 17 — 577 4 1-4 family - closed-end 755 722 — 726 — Equity lines 326 301 — 310 5 Multifamily residential — — — — — Commercial real estate - owner occupied 1,560 1,440 — 1,477 — Commercial real estate - non-owner occupied 3,295 2,105 — 3,267 — Farmland 22 22 — 25 — Total real estate 6,010 4,607 — 6,382 9 Agricultural — — — — — Commercial and industrial 102 81 — 162 — Consumer loans 9 — — 140 15 6,121 4,688 — 6,684 24 Total $ 15,815 $ 14,152 $ 827 $ 16,635 $ 527 (1) Contractual principal balance due from customer. (2) Principal balance on Company’s books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. December 31, 2018 Unpaid Principal Recorded Average Recorded Interest Income Balance (1) Investment (2) Related Allowance Investment Recognized (3) With an Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 593 438 44 648 40 1-4 family - closed-end 3,325 3,325 75 3,182 175 Equity lines 4,603 4,550 656 4,368 206 Multifamily residential 373 373 25 359 20 Commercial real estate- owner occupied 842 723 135 740 40 Commercial real estate- non-owner occupied 1,572 1,425 3 1,644 107 Farmland — — — — — Total real estate 11,308 10,834 938 10,941 588 Agricultural 6 6 1 6 — Commercial and industrial 1,724 1,534 918 1,965 40 Consumer loans 813 764 151 909 61 13,851 13,138 2,008 13,821 689 With no Related Allowance Recorded Real estate: 1-4 family residential construction $ — $ — $ — $ — $ — Other construction/land 54 50 — 58 — 1-4 family - closed-end 357 307 — 375 3 Equity Lines 224 166 — 221 — Multifamily residential — — — — — Commercial real estate- owner occupied 502 502 — 478 — Commercial real estate- non-owner occupied — — — — — Farmland 1,642 1,642 — 1,538 — Total real estate 2,779 2,667 — 2,670 3 Agricultural — — — — — Commercial and industrial 238 211 — 838 — Consumer loans 182 56 — 273 1 3,199 2,934 — 3,781 4 Total $ 17,050 $ 16,072 $ 2,008 $ 17,602 $ 693 (1) Contractual principal balance due from customer. (2) Principal balance on Company’s books, less any direct charge offs. (3) Interest income is recognized on performing balances on a regular accrual basis. |
Schedule of Loans and Leases Receivable Impaired Interest Income and Lost from Non Accrual Loans | The following is a summary of interest income from non-accrual loans in the portfolio at year-end that was not recognized (dollars in thousands): Years Ended December 31, 2019 2018 2017 Interest that would have been recorded under the loans’ original terms $ 650 $ 484 $ 361 Less gross interest recorded 289 167 103 Foregone interest $ 361 $ 317 $ 258 |
Troubled Debt Restructurings, by Type of Loan Modification | The following tables present troubled debt restructurings by type of modification during the period ending December 31, 2019 and December 31, 2018 (dollars in thousands): December 31, 2019 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ 163 $ — $ — $ 163 1-4 family - closed-end — — — — — Equity lines — 344 — — 344 Multi-family residential — — — — — Commercial real estate owner occupied — — — — — Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 507 — — 507 Agricultural — — — — — Commercial and industrial 94 255 — 52 401 Consumer loans — 9 — 50 59 $ 94 $ 771 $ — $ 102 $ 967 December 31, 2018 Rate Term Interest Only Rate & Term Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — Equity lines — 460 504 — 964 Multi-family residential — — — — — Commercial real estate owner occupied — — — — — Commercial real estate non-owner occupied — — — — — Farmland — — — — — Total real estate loans — 460 504 — 964 Agricultural — 7 — — 7 Commercial and industrial — 73 25 225 323 Consumer loans — — 10 — 10 $ — $ 540 $ 539 $ 225 $ 1,304 |
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Reserve December 31, 2019 Loans Investment Investment Difference (1) Real estate: Other construction/land 1 $ 163 $ 163 $ 74 1-4 family - closed-end — — — — Equity lines 2 344 344 — Multi-family residential — — — — Commercial real estate - owner occupied — — — — Commercial real estate - non-owner occupied — — — — Farmland — — — — Total real estate loans 507 507 74 Agricultural — — — — Commercial and industrial 7 401 401 (59) Consumer loans 2 59 59 (47) $ 967 $ 967 $ (32) (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Reserve December 31, 2018 Loans Investment Investment Difference (1) Real estate: Other construction/land — $ — $ — $ — 1-4 family - closed-end — — — — Equity lines 8 964 964 4 Multi-family residential — — — — Commercial real estate - owner occupied — — — — Commercial real estate - non-owner occupied — — — — Farmland — — — — Total real estate loans 964 964 4 Agricultural 1 7 7 2 Commercial and industrial 4 323 323 — Consumer loans 1 10 10 — $ 1,304 $ 1,304 $ 6 (1) This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. |
Purchased Credit Impaired Loans [Member] | |
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | December 31, 2019 Unpaid Principal Balance Carrying Value Real estate secured $ 88 $ — Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 88 $ — December 31, 2018 Unpaid Principal Balance Carrying Value Real estate secured $ 103 $ — Commercial and industrial — — Consumer — — Total purchased credit impaired loans $ 103 $ — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Premises and equipment at cost consisted of the following (dollars in thousands): December 31, 2019 2018 Land $ 5,751 $ 5,751 Buildings and improvements 21,526 21,579 Furniture, fixtures and equipment 17,798 18,958 Leasehold improvements 15,357 15,023 60,432 61,311 Less accumulated depreciation and amortization 33,041 32,712 Construction in progress 44 901 $ 27,435 $ 29,500 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Maturities for Operating Lease Liabilities - ASC 842 | Year Ending December 31, 2020 $ 2,235 2021 2,023 2022 1,574 2023 1,113 2024 749 Thereafter 3,196 Total undiscounted lease payments $ 10,890 Less: imputed interest (1,975) Net lease liabilities $ 8,915 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of change in goodwill | The change in goodwill during the year is as follows (dollars in thousands): Years Ended December 31, 2019 2018 2017 Balance at January 1 $ 27,357 $ 27,357 $ 8,268 Acquired goodwill — — 19,089 Impairment — — — Balance at December 31 $ 27,357 $ 27,357 $ 27,357 |
Schedule of acquired intangible assets | Acquired intangible assets were as follows at year-end (dollars in thousands): Years Ended December 31, 2019 2018 Gross Accumulated Gross Accumulated Core deposit intangibles $ 8,401 $ 3,020 $ 8,401 $ 1,946 |
Schedule of estimated amortization expense for each of the next five years and thereafter | Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): 2020 $ 1,074 2021 1,032 2022 1,000 2023 876 2024 781 Thereafter $ 618 $ 5,381 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (dollars in thousands): December 31, 2019 2018 Accrued interest receivable $ 8,229 $ 8,587 Deferred tax assets 3,463 8,654 Investment in qualified affordable housing projects 4,104 5,905 Investment in limited partnerships 2,722 3,049 Federal Home Loan Bank stock, at cost 10,727 9,894 Other 16,670 14,475 $ 45,915 $ 50,564 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule Of Interest Bearing Deposit Liabilities Domestic By Component | Interest-bearing deposits consisted of the following (dollars in thousands): December 31, 2019 2018 Interest bearing demand deposits $ 91,212 $ 101,243 NOW 458,600 434,483 Savings 294,317 283,953 Money market 118,933 123,807 Time, under $250,000 261,916 262,901 Time, $250,000 or more 252,446 247,426 $ 1,477,424 $ 1,453,813 |
Schedule Of Maturities Of Times Deposit | Aggregate annual maturities of time deposits were as follows (dollars in thousands): Year Ending December 31, 2020 $ 503,956 2021 5,654 2022 1,155 2023 2,534 2024 241 Thereafter 822 $ 514,362 |
Schedule Of Interest Expense Recognized In Interest Bearing Deposit | Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Interest bearing demand deposits $ 316 $ 364 $ 417 NOW 524 478 427 Savings 308 314 258 Money market 181 146 157 CDAR's — — — Time deposits 8,931 5,653 2,503 Brokered Deposits 1,120 305 — $ 11,380 $ 7,260 $ 3,762 |
Other Borrowing Arrangements (T
Other Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | At year end, short-term borrowings consisted of the following (dollars in thousands): 2019 2018 Average Amount Average Maximum Weighted Average Amount Average Maximum Weighted As of December 31: Repurchase agreements $ 22,090 $ 25,711 .40% $ 27,712 .40% $ 14,332 $ 16,359 .40% $ 17,672 .40% Overnight federal home loan bank advances 12,408 — 63,700 — 8,967 56,100 56,100 Short-term federal home loan bank advances 822 20,000 20,000 — — — — — Fed funds purchased 313 — — 850 — 22 — — 850 — $ 35,633 $ 45,711 $ 112,262 $ 23,321 $ 72,459 $ 74,622 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes follows (dollars in thousands): Year Ended December 31, 2019 2018 2017 Federal: Current $ 7,081 $ 5,780 $ 8,456 Effect of tax act — — 2,710 Deferred (228) 179 (828) 6,853 5,959 10,338 State: Current 4,771 3,819 3,604 Deferred 133 129 (302) 4,904 3,948 3,302 $ 11,757 $ 9,907 $ 13,640 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,934 $ 2,882 Foreclosed assets 200 704 Deferred compensation 3,895 3,538 Accrued reserves 312 421 Non accrual loans 181 205 Net operating loss carryforward 1,909 2,131 Net unrealized loss on securities available-for-sale — 2,798 Other 3,536 3,510 Total deferred tax assets 12,967 16,189 Deferred tax liabilities: Premises and equipment (324) (833) Deferred loan costs (2,656) (2,656) Net unrealized gain on securities available-for-sale (2,490) — Other (4,034) (4,046) Total deferred tax liabilities (9,504) (7,535) Net deferred tax assets $ 3,463 $ 8,654 |
Schedule of Effective Income Tax Rate Reconciliation | The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Income tax expense at federal statutory rate $ 10,021 $ 8,313 $ 11,613 Increase (decrease) resulting from: State franchise tax expense, net of federal tax effect 3,872 3,390 2,363 Tax exempt municipal income (952) (852) (1,299) Affordable housing tax credits (538) (632) (711) Effect of the tax act — — 2,710 Excess tax benefit of stock-based compensation (133) (177) (248) Other (513) (135) (788) 11,757 9,907 13,640 Effective tax rate |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Financial Instruments Representing Off-Balance-Sheet Credit Risk | The following financial instruments represent off‑balance‑sheet credit risk (dollars in thousands): December 31, 2019 2018 Fixed-rate commitments to extend credit $ 80,674 $ 96,648 Variable-rate commitments to extend credit $ 411,366 $ 685,339 Standby letters of credit $ 8,619 $ 8,966 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows: For the Years Ended December 31, 2019 2018 2017 Basic Earnings Per Share Net income (dollars in thousands) $ 35,961 $ 29,677 $ 19,539 Weighted average shares outstanding 15,311,113 15,261,794 14,172,196 Basic earnings per share $ 2.35 $ 1.94 $ 1.38 Diluted Earnings Per Share Net income (dollars in thousands) $ 35,961 $ 29,677 $ 19,539 Weighted average shares outstanding 15,311,113 15,261,794 14,172,196 Effect of dilutive stock options 125,998 170,326 185,586 Weighted average shares outstanding 15,437,111 15,432,120 14,357,782 Diluted earnings per share $ 2.33 $ 1.92 $ 1.36 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the Company’s stock option activity follows (shares in thousands, except exercise price): 2019 2018 2017 Shares Weighted Average Aggregate (1) Shares Weighted Average Shares Weighted Average Outstanding, beginning of year 453 $ 18.45 455 $ 16.33 467 $ 14.12 Exercised (83) $ 13.07 (77) $ 14.67 (70) $ 12.42 Granted 102 $ 26.97 84 $ 27.35 91 $ 28.21 Canceled (14) $ 26.77 (9) $ 26.73 (33) $ 26.41 Outstanding, end of year 458 $ 21.08 $ 3,684 453 $ 18.45 455 $ 16.33 Exercisable, end of year (2) 322 $ 18.89 $ 3,297 330 $ 15.77 400 $ 15.57 (1) The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2019. This amount changes based on changes in the market value of the Company’s stock. (2) The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2019 was 6.1 years and 5.1 years, respectively. |
Schedule of Options Indexed to Issuer Equity | Information related to stock options during each year follows: 2019 2018 2017 Weighted-average grant-date fair value per share $ 6.60 $ 5.94 $ 6.13 Total intrinsic value of stock options exercised $ 1,150,000 $ 988,000 $ 1,042,000 Total fair value of stock options vested $ 438,000 $ 55,000 $ 494,000 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital amounts (in thousands) and ratios are presented below at year end. 2019 2018 Capital Amount Ratio Capital Amount Ratio Leverage Ratio Sierra Bancorp and subsidiary $ 306,744 $ 282,484 Minimum requirement for "Well-Capitalized" institutions 128,769 122,962 Minimum regulatory requirement 103,016 98,370 Bank of the Sierra $ 301,963 $ 280,184 Minimum requirement for "Well-Capitalized" institutions 128,753 140,092 Minimum regulatory requirement 103,002 98,364 2019 2018 Capital Amount Ratio Capital Amount Ratio Common Equity Tier 1 Capital Ratio Sierra Bancorp and subsidiary $ 271,799 $ 247,717 Minimum requirements for "Well-Capitalized" institutions 133,095 127,709 Minimum regulatory requirement 92,143 88,414 Bank of the Sierra $ 301,963 $ 280,184 Minimum requirements for "Well-Capitalized" institutions 133,077 127,776 Minimum regulatory requirement 92,130 88,461 Tier 1 Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 306,744 $ 282,484 Minimum requirement for "Well-Capitalized" institutions 163,809 157,181 Minimum regulatory requirement 122,857 117,885 Bank of the Sierra $ 301,963 $ 280,184 Minimum requirement for "Well-Capitalized" institutions 163,787 157,263 Minimum regulatory requirement 122,840 117,947 Total Risk-Based Capital Ratio Sierra Bancorp and subsidiary $ 316,981 $ 292,618 Minimum requirement for "Well-Capitalized" institutions 204,762 196,476 Minimum regulatory requirement 163,809 157,181 Bank of the Sierra $ 312,200 $ 290,318 Minimum requirement for "Well-Capitalized" institutions 204,734 196,579 Minimum regulatory requirement 163,787 157,263 |
Non-interest Income (Tables)
Non-interest Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Non-Interest Revenue [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Non-interest income also includes one general category of “other income” of which the following are major components (dollars in thousands): Year Ended December 31, 2019 2018 2017 Included in other income: Amortization of limited partnerships $ (2,079) $ (2,561) $ (961) Dividends on equity investments 789 961 761 Unrealized gains recognized on equity investments 232 1,183 — Other 3,223 3,071 3,651 Total other non-interest income $ 2,165 $ 2,654 $ 3,451 |
Other Non-interest Expense (Tab
Other Non-interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | Other non-interest expense consisted of the following (dollars in thousands): Year Ended December 31, 2019 2018 2017 Legal, audit and professional $ 4,039 $ 3,032 $ 3,289 Data processing 4,564 5,015 4,365 Advertising and promotional 2,568 2,748 2,514 Deposit services 7,962 5,413 4,426 Stationery and supplies 318 1,387 1,309 Telephone and data communication 1,529 1,479 1,654 Loan and credit card processing 675 1,142 1,029 Foreclosed assets expense (income), net 35 (730) 270 Postage 436 997 1,064 Other 2,082 1,808 1,691 Assessments 525 856 509 Total other non-interest expense $ 24,733 $ 23,147 $ 22,120 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of the Aggregate Activity Involving Related Party Borrowers | During the normal course of business, the Bank enters into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): Year Ended December 31, 2019 2018 2017 Balance, beginning of year $ 2,544 $ 3,047 $ 2,253 Disbursements 18,681 13,873 15,223 Amounts repaid (18,494) (14,376) (14,429) Balance, end of year $ 2,731 $ 2,544 $ 3,047 Undisbursed commitments to related parties $ 1,829 $ 2,130 $ 2,559 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets reported at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below (dollars in thousands): Fair Value Measurements at December 31, 2019, using Quoted Prices in Significant Significant Total Realized Securities: U.S. government agencies $ — $ 12,145 $ — $ 12,145 $ — Mortgage-backed securities — 400,389 — 400,389 — State and political subdivisions — 188,265 — 188,265 — Total available-for-sale securities $ — $ 600,799 $ — $ 600,799 $ — Fair Value Measurements at December 31, 2018, using Quoted Prices in Significant Significant Total Realized Securities: U.S. government agencies $ — $ 15,212 $ — $ 15,212 $ — Mortgage-backed securities — 404,733 — 404,733 — State and political subdivisions — 140,534 — 140,534 — Total available-for-sale securities $ — $ 560,479 $ — $ 560,479 $ — |
Schedule of assets reported at fair value on a nonrecurring basis | Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): Year Ended December 31, 2019 Quoted Prices in Significant Significant Total Collateral dependent impaired loans $ — $ 1,692 $ — $ 1,692 Foreclosed assets $ — $ 800 $ — $ 800 Year Ended December 31, 2018 Quoted Prices in Significant Significant Total Collateral dependent impaired loans $ — $ 205 $ — $ 205 Foreclosed assets $ — $ 1,082 $ — $ 1,082 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Carrying Amount And Estimated Fair Values of Financial Instruments | Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2019 Estimated Fair Value Carrying Quoted Prices in Significant Significant Total Financial Assets: Cash and cash equivalents $ 80,077 $ 80,076 $ — $ — $ 80,076 Securities available for sale 600,799 — 600,799 — 600,799 Loans and leases held for investment 1,753,846 — — 1,761,461 1,761,461 Collateral dependent impaired loans 1,692 — 1,692 — 1,692 Financial Liabilities: Deposits: Non-interest-bearing $ 690,950 $ 690,950 $ — $ — $ 690,950 Interest-bearing 1,477,424 — 1,477,497 — 1,477,497 Fed funds purchased and repurchase agreements 25,711 — 25,711 — 25,711 Short-term borrowings 20,000 — 20,000 — 20,000 Subordinated debentures 34,945 — 30,564 — 30,564 Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): Year Ended December 31, 2018 Estimated Fair Value Carrying Quoted Prices in Significant Significant Total Financial Assets: Cash and cash equivalents $ 74,132 $ 74,132 $ — $ — $ 74,132 Securities available for sale 560,479 — 560,479 — 560,479 Loans and leases held for investment 1,724,575 — — 1,707,463 1,707,463 Collateral dependent impaired loans 205 — 205 — 205 Financial Liabilities: Deposits: Noninterest-bearing $ 662,527 $ 662,527 $ — $ — $ 662,527 Interest-bearing 1,453,813 — 1,453,048 — 1,453,048 Fed funds purchased and repurchase agreements 16,359 — 16,359 — 16,359 Short-term borrowings 56,100 — 56,100 — 56,100 Subordinated debentures 34,767 — 30,311 — 30,311 |
Schedule of Financial Instruments | Notional Off-balance-sheet financial instruments: Commitments to extend credit $ 492,040 Standby letters of credit 8,619 Notional Off-balance-sheet financial instruments: Commitments to extend credit $ 781,987 Standby letters of credit 8,966 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition, Pro Forma Information | Unaudited pro forma net interest income, net income and earnings per share presented below (dollars in thousands, except per share data): Pro Forma Pro Forma Pro Forma Year Ended Year Ended Year Ended 2019 2018 2017 Net interest income $ 97,369 $ 92,394 $ 82,985 Net income $ 35,961 $ 29,677 $ 19,416 Basic earnings per share $ 2.35 $ 1.94 $ 1.37 Diluted earnings per share $ 2.33 $ 1.92 $ 1.35 |
Ojai Community Bancorp [Member] | |
Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed | The following table summarizes the consideration paid for OCB and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ 809 Equity Instruments 37,370 Fair value of total consideration transferred $ 38,179 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 37,108 Securities 5,492 Loans 217,800 Premises and equipment 873 Real estate owned 3,072 Core deposit intangibles 3,453 Other assets 10,479 Total assets acquired 278,277 Deposits 230,950 Borrowed funds 24,400 Other liabilities 3,212 Total liabilities assumed 258,562 Total identifiable net assets 19,715 Goodwill 18,464 $ 38,179 |
Woodlake Branch of Citizen's Business Bank [Member] | |
Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed | The following table summarizes the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): Consideration Cash $ — Equity instruments — Fair value of total consideration transferred $ — Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 25,266 Loans 7 Premises and equipment 469 Core deposit intangibles 486 Total assets acquired 26,228 Deposits 26,661 Other liabilities 192 Total liabilities assumed 26,853 Total identifiable net assets (625) Goodwill 625 $ — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Sources of Non-interest Income | The following table presents the Company’s sources of Non-interest Income for the twelve months ended December 31, 2019 and 2018. Items outside the scope of ASC 606 are noted as such. Year Ended December 31, 2019 2018 Non-interest income Service charges on deposits Returned item and overdraft fees $ 6,854 $ 6,574 Other service charges on deposits 5,888 5,865 Debit card interchange income 6,584 5,878 Loss on limited partnerships (1) (2,079) (2,561) Dividends on equity investments (1) 789 961 Unrealized gains recognized on equity investments (1) 232 1,183 Net gains (losses) on sale of securities (1) (198) 2 Other (1) 5,407 3,662 Total non-interest income $ 23,477 $ 21,564 Non-interest expense Salaries and employee benefits (1) $ 35,978 $ 36,133 Occupancy expense (1) 9,845 10,295 Gains on sale or OREO (107) (1,423) Other (1) 24,862 25,019 Total non-interest expense $ 70,578 $ 70,024 Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_2
Parent Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | BALANCE SHEETS Years Ended December 31, 2019 and 2018 (dollars in thousands) 2019 2018 ASSETS Cash and due from banks $ 4,818 $ 2,338 Investments in bank subsidiary 339,449 305,492 Investment in trust subsidiaries 1,145 1,145 Other assets 21 20 $ 345,433 $ 308,995 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Other liabilities $ 1,203 $ 1,204 Subordinated debentures 34,945 34,767 Total liabilities 36,148 35,971 Shareholders' equity: Common stock 116,486 115,573 Retained earnings 186,867 164,117 Accumulated other comprehensive income, net of taxes 5,932 (6,666) Total shareholders' equity 309,285 273,024 $ 345,433 $ 308,995 |
Schedule of Condensed Income Statement | STATEMENTS OF INCOME Years Ended December 31, 2019, 2018 and 2017 (dollars in thousands) 2019 2018 2017 Income: Dividend from subsidiary $ 17,200 $ 7,750 $ 15,500 Gain on sale of securities — — 918 Other operating income — — 16 Total income 17,200 7,750 16,434 Expense Salaries and employee benefits 582 516 481 Other expenses 2,664 2,533 2,276 Total expenses 3,246 3,049 2,757 Income before income taxes 13,954 4,701 13,677 Income tax benefit (1,138) (1,150) (1,602) Income before equity in undistributed income of subsidiary 15,092 5,851 15,279 Equity in undistributed income of subsidiary 20,869 23,826 4,260 Net income $ 35,961 $ 29,677 $ 19,539 |
Schedule of Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS Years Ended December 31, 2019, 2018 and 2017 (dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 35,961 $ 29,677 $ 19,539 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net loss of subsidiary (20,869) (23,826) (4,260) Gain on sale of securities — — (918) Increase (decrease) in other assets 178 183 170 (Decrease) increase in other liabilities (2) 28 (757) Net cash provided for operating activities 15,268 6,062 13,774 Cash flows from investing activities: Sales of securities — — 1,480 Cash paid from acquisitions, net — (6) (7,061) Net cash provided by investing activities — (6) (5,581) Cash flows from financing activities: Change in other borrowings — — — Stock options exercised 1,088 1,131 764 Repurchase of common stock (2,544) — — Dividends paid (11,332) (9,757) (7,935) Net cash used in by financing activities (12,788) (8,626) (7,171) Net decrease (increase) in cash and cash equivalents 2,480 (2,570) 1,022 Cash and cash equivalents, beginning of year 2,338 4,908 3,886 Cash and cash equivalents, end of year $ 4,818 $ 2,338 $ 4,908 |
Condensed Quarterly Results o_2
Condensed Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Results of Operations Activities Disclosure | The following table sets forth the Company’s unaudited results of operations for the four quarters of 2019 and 2018. In management’s opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). 2019 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 27,775 $ 27,901 $ 27,788 $ 27,483 Interest expense 2,953 3,526 3,589 3,510 Net interest income 24,822 24,375 24,199 23,973 Provision for loan and lease losses 500 1,350 400 300 Non-interest income 5,847 5,869 5,855 5,906 Non-interest expense 17,982 17,088 17,656 17,852 Net income before taxes 12,187 11,806 11,998 11,727 Provision for taxes 2,902 2,854 3,169 2,832 Net income $ 9,285 $ 8,952 $ 8,829 $ 8,895 Diluted earnings per share $ 0.60 $ 0.58 $ 0.57 $ 0.58 Cash dividend per share $ 0.19 $ 0.19 $ 0.18 $ 0.18 2018 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 27,042 $ 26,236 $ 24,883 $ 23,476 Interest expense 2,984 2,460 2,083 1,716 Net interest income 24,058 23,776 22,800 21,760 Provision for loan and lease losses 1,400 2,450 300 200 Non-interest income 5,279 5,723 5,429 5,133 Non-interest expense 17,036 17,807 17,294 17,887 Net income before taxes 10,901 9,242 10,635 8,806 Provision for taxes 2,997 2,171 2,643 2,096 Net income $ 7,904 $ 7,071 $ 7,992 $ 6,710 Diluted earnings per share $ 0.51 $ 0.46 $ 0.52 $ 0.44 Cash dividend per share $ 0.16 $ 0.16 $ 0.16 $ 0.16 |
The Business of Sierra Bancorp
The Business of Sierra Bancorp (Details) | Dec. 31, 2019item |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of full service branch offices | 40 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - FHLB Stock and Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Federal Home Loan Bank stock, at cost | $ 10,727 | $ 9,894 | |
Carrying amount of equity securities without readily determinable fair values | 2,016 | 1,784 | |
Increase in equity securities | 232 | $ 1,183 | $ 0 |
Cumulative remeasurement gain | $ 1,415 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Losses on representations and warranties associated with sale of loans | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Purchased Credit Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Purchased Credit Impaired Loans [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Allowance for loan losses | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Foreclosed Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financing Receivable Impaired [Line Items] | |||
Number of foreclosed residential real estate properties | item | 1 | ||
Proceeds from sales of foreclosed assets | $ 7,955 | $ 13,188 | $ 443 |
Residential Real Estate [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Proceeds from sales of foreclosed assets | $ 1,089 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets - Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Asset Impairment [Abstract] | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets - Useful Lives (Details) - Core Deposits [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Citizen's Business Bank Porterville Branch [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Stock-Based Compensation - General Information (Details) | Dec. 31, 2019shares |
2017 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 850,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Stock-Based Compensation - Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield (as a percent) | 2.62% | 2.12% | 1.70% |
Expected Volatility (as a percent) | 34.57% | 26.26% | 26.47% |
Risk-free interest rate (as a percent) | 2.70% | 2.38% | 1.92% |
Expected option life | 5 years 4 months 24 days | 5 years 3 months 18 days | 5 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Recent Accounting Pronouncements - Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Increase in equity securities | $ 232 | $ 1,183 | $ 0 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Recent Accounting Pronouncements - Leases (Details) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2019store | Dec. 31, 2019Office | Dec. 31, 2019item | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) |
Assets and Liabilities, Lessee [Abstract] | ||||||
Number of branch locations | 21 | 21 | ||||
Number of administration offices | Office | 1 | |||||
Number of ATM locations | 3 | 3 | ||||
Right-of-use assets | $ 8,308 | $ 10,000 | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position | us-gaap:OtherAssets | us-gaap:OtherAssets | ||||
Operating lease liabilities | $ 8,915 | $ 10,000 | ||||
Operating Lease, Liability, Statement of Financial Position | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Recent Accounting Pronouncements - Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable, Net Amount [Abstract] | |||
Allowance for loan and lease losses | $ 9,923 | $ 9,750 | |
Accounting Standards Update 2016-13 [Member] | Restatement Adjustment [Member] | Forecast [Member] | |||
Loans and Leases Receivable, Net Amount [Abstract] | |||
Allowance for loan and lease losses | $ 12,000 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Recent Accounting Pronouncements - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Corporate income tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Accounting Standards Update 2018-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in accounting principle cumulative-effect adjustment to the balance sheet | $ 413 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Standards Update 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2018 | Jan. 1, 2018 |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2019 | |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Accounting Standards Update 2016-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false | |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Accounting Standards Update 2017-04 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false | |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Accounting Standards Update 2017-08 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2019 | |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Accounting Standards Update 2018-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Dec. 31, 2017 | |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected | Retrospective | |
Accounting Standards Update 2018-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false | |
Change in Accounting Principle, Accounting Standards Update, Early Adoption | false | |
Accounting Standards Update 2019-05 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false |
Securities Available-for-Sale -
Securities Available-for-Sale - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 592,378 | $ 569,942 |
Gross Unrealized Gains | 9,956 | 1,616 |
Gross Unrealized Losses | (1,535) | (11,079) |
Estimated Fair Value | 600,799 | 560,479 |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 12,125 | 15,553 |
Gross Unrealized Gains | 124 | 12 |
Gross Unrealized Losses | (104) | (353) |
Estimated Fair Value | 12,145 | 15,212 |
Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 398,353 | 414,208 |
Gross Unrealized Gains | 3,354 | 398 |
Gross Unrealized Losses | (1,318) | (9,873) |
Estimated Fair Value | 400,389 | 404,733 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 181,900 | 140,181 |
Gross Unrealized Gains | 6,478 | 1,206 |
Gross Unrealized Losses | (113) | (853) |
Estimated Fair Value | $ 188,265 | $ 140,534 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Proceeds from Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale [Abstract] | |||
Proceeds from sales of securities available for sale | $ 60,510 | $ 6,838 | $ 40,166 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Realized Gains (Losses) - Tabular Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | |||||
Gross gains on sales, calls and maturities of securities available for sale | $ 230 | $ 21 | $ 1,024 | ||
Gross losses on sales, calls and maturities of securities available for sale | (428) | (19) | (524) | ||
Net (losses) gains on sales and calls of securities | $ (198) | [1] | $ 2 | [1] | $ 500 |
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Securities Available-for-Sale_4
Securities Available-for-Sale - Realized Gains (Losses) - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Gross gains on sales and calls of securities | $ 230 | $ 21 | $ 1,024 |
Available-for-sale Securities, Gross Realized Losses | $ 428 | $ 19 | $ 524 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 198 | 552 | |
Securities available-for-sale | $ 592,378 | $ 569,942 | |
Investment securities available for sale | 600,799 | $ 560,479 | |
States and Political Subdivisions [Member] | |||
Securities available-for-sale | $ 188,265 | ||
U.S. Government Agencies [Member] | |||
Number Of Securities With Realized Gross Gains | security | 74 | 11 | |
Gross gains on sales and calls of securities | $ 230,000 | $ 21,000 | |
Securities available-for-sale | 12,125 | 15,553 | |
Investment securities available for sale | $ 12,145 | $ 15,212 | |
Other Securities [Member] | |||
Number Of Securities With Unrealized Gross Losses | security | 108 | 8 | |
Available-for-sale Securities, Gross Realized Losses | $ 428,000 | $ 19,000 | |
States and Political Subdivisions [Member] | |||
Investment securities available for sale | $ 2,200 |
Securities Available-for-Sale_5
Securities Available-for-Sale - Gross Unrealized Losses - General Information (Details) - security | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | 198 | 552 |
Securities Available-for-Sale_6
Securities Available-for-Sale - Gross Unrealized Losses - Tabular Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less than twelve months | $ (639) | $ (1,020) |
Fair Value, Less than twelve months | 123,520 | 106,365 |
Gross Unrealized Losses, Twelve months or more | (896) | (10,059) |
Fair Value, Twelve months or more | 81,227 | 306,207 |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less than twelve months | (32) | (54) |
Fair Value, Less than twelve months | 3,240 | 2,815 |
Gross Unrealized Losses, Twelve months or more | (72) | (299) |
Fair Value, Twelve months or more | 2,689 | 10,764 |
Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less than twelve months | (494) | (717) |
Fair Value, Less than twelve months | 100,518 | 69,686 |
Gross Unrealized Losses, Twelve months or more | (824) | (9,156) |
Fair Value, Twelve months or more | 78,538 | 273,230 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Gross Unrealized Losses, Less than twelve months | (113) | (249) |
Fair Value, Less than twelve months | $ 19,762 | 33,864 |
Gross Unrealized Losses, Twelve months or more | (604) | |
Fair Value, Twelve months or more | $ 22,213 |
Securities Available-for-Sale_7
Securities Available-for-Sale - Estimated Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Maturing within one year, Amortized Cost | $ 7,155 | |
Maturing after one year through five years, Amortized Cost | 17,008 | |
Maturing after five years through ten years, Amortized Cost | 33,805 | |
Maturing after ten years, Amortized Cost | 136,057 | |
Amortized Cost | 592,378 | $ 569,942 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Maturing within one year, Fair Value | 7,244 | |
Maturing after one year through five years, Fair Value | 17,171 | |
Maturing after five years through ten years, Fair Value | 34,881 | |
Maturing after ten years, Fair Value | 141,114 | |
Fair Value, Total | 600,799 | 560,479 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized Cost | 181,900 | 140,181 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Fair Value, Total | 188,265 | 140,534 |
Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Investment securities not due at a single maturity date, Amortized Cost | 189,554 | |
Amortized Cost | 398,353 | 414,208 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Investment securities not due at a single maturity date, Fair Value | 190,488 | |
Fair Value, Total | 400,389 | $ 404,733 |
Collateralized Mortgage Obligations [Member] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Investment securities not due at a single maturity date, Amortized Cost | 208,799 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Investment securities not due at a single maturity date, Fair Value | $ 209,901 |
Securities Available-for-Sale_8
Securities Available-for-Sale - Securities Pledged (Details) - Other Contractual Obligations And Short Term Borrowing Arrangements [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pledged Financial Instruments, Not Separately Reported, Securities, Total | $ 232,969 | $ 222,548 |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value, Total | $ 234,787 | $ 217,421 |
Securities Available-for-Sale_9
Securities Available-for-Sale - Revenue and General Obligation Bonds (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities available-for-sale | $ 600,799 | $ 560,479 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities available-for-sale | 188,265 | 140,534 |
General Obligation Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities available-for-sale | $ 161,587 | $ 116,633 |
Securities Available-for-Sal_10
Securities Available-for-Sale - Revenue and General Obligation Bonds by Location (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 592,378 | $ 569,942 |
Fair Market Value | 600,799 | 560,479 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 181,900 | 140,181 |
Fair Market Value | 188,265 | 140,534 |
General Obligation Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 156,039 | 116,291 |
Fair Market Value | 161,587 | 116,633 |
General Obligation Bonds [Member] | Texas [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,439 | 36,331 |
Fair Market Value | 61,519 | 36,199 |
General Obligation Bonds [Member] | California [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,882 | 26,928 |
Fair Market Value | 25,030 | 27,357 |
General Obligation Bonds [Member] | Washington [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,392 | 16,036 |
Fair Market Value | 24,313 | 16,062 |
General Obligation Bonds [Member] | Ohio [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,144 | 8,639 |
Fair Market Value | 7,271 | 8,601 |
General Obligation Bonds [Member] | Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,182 | 28,357 |
Fair Market Value | 43,454 | 28,414 |
Revenue Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,861 | 23,890 |
Fair Market Value | 26,678 | 23,901 |
Revenue Bonds [Member] | Texas [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,035 | 7,526 |
Fair Market Value | 6,298 | 7,506 |
Revenue Bonds [Member] | California [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 365 | 367 |
Fair Market Value | 380 | 374 |
Revenue Bonds [Member] | Washington [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,737 | 1,751 |
Fair Market Value | 1,856 | 1,780 |
Revenue Bonds [Member] | Ohio [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,069 | |
Fair Market Value | 2,066 | |
Revenue Bonds [Member] | Other [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,655 | 14,246 |
Fair Market Value | $ 16,078 | $ 14,241 |
Securities Available-for-Sal_11
Securities Available-for-Sale - Revenue Bonds by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 592,378 | $ 569,942 |
Fair Market Value | 600,799 | 560,479 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 181,900 | 140,181 |
Fair Market Value | 188,265 | 140,534 |
Revenue Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,861 | 23,890 |
Fair Market Value | 26,678 | 23,901 |
Revenue Bonds [Member] | Water [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,515 | 6,942 |
Fair Market Value | 7,775 | 6,946 |
Revenue Bonds [Member] | College & University [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,997 | 2,583 |
Fair Market Value | 2,019 | 2,604 |
Revenue Bonds [Member] | Sales Tax [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,949 | 2,932 |
Fair Market Value | 1,995 | 2,901 |
Revenue Bonds [Member] | Lease [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,596 | 2,053 |
Fair Market Value | 3,678 | 2,068 |
Revenue Bonds [Member] | Electricity [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,421 | 1,027 |
Fair Market Value | 1,521 | 1,047 |
Revenue Bonds [Member] | Sewer [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,760 | 1,392 |
Fair Market Value | 4,811 | 1,398 |
Revenue Bonds [Member] | Other Revenue Source [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,623 | 6,961 |
Fair Market Value | $ 4,879 | $ 6,937 |
Loans and Leases - Schedule of
Loans and Leases - Schedule of Participating Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans, net | ||
Gross loans and leases | $ 1,762,565 | $ 1,731,928 |
Deferred loan and lease origination cost, net | 2,896 | 2,602 |
Allowance for loan and lease losses | (9,923) | (9,750) |
Loans, net | 1,755,538 | 1,724,780 |
Real Estate Sector [Member] | ||
Loans, net | ||
Gross loans and leases | 1,402,114 | 1,453,930 |
Real Estate Sector [Member] | Secured By Commercial And Professional Office Properties Including Construction And Development [Member] | ||
Loans, net | ||
Gross loans and leases | 847,865 | 848,691 |
Real Estate Sector [Member] | Residential Real Estate [Member] | ||
Loans, net | ||
Gross loans and leases | 410,216 | 453,698 |
Real Estate Sector [Member] | Secured by farm land [Member] | ||
Loans, net | ||
Gross loans and leases | 144,033 | 151,541 |
Agricultural Sector [Member] | ||
Loans, net | ||
Gross loans and leases | 48,036 | 49,103 |
Commercial and Industrial Sector [Member] | ||
Loans, net | ||
Gross loans and leases | 115,532 | 128,220 |
Financial Services Sector [Member] | Financial Institutions Borrower [Member] | ||
Loans, net | ||
Gross loans and leases | 189,103 | 91,813 |
Financial Services Sector [Member] | Consumer Borrower [Member] | ||
Loans, net | ||
Gross loans and leases | $ 7,780 | $ 8,862 |
Loans and Leases - Credit Quali
Loans and Leases - Credit Quality Classifications (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 1,762,565 | $ 1,731,928 |
Real Estate Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,402,114 | 1,453,930 |
Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 105,979 | 105,676 |
Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 91,413 | 109,023 |
Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 200,181 | 236,825 |
Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 49,599 | 56,320 |
Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 54,457 | 54,877 |
Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 343,883 | 301,324 |
Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 412,569 | 438,344 |
Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 144,033 | 151,541 |
Agricultural Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 48,036 | 49,103 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 115,532 | 128,220 |
Mortgage Warehouse Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 189,103 | 91,813 |
Consumer Loans Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 7,780 | 8,862 |
Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,719,616 | 1,677,847 |
Pass [Member] | Real Estate Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,374,870 | 1,419,253 |
Pass [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 105,979 | 105,676 |
Pass [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 90,761 | 108,304 |
Pass [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 194,572 | 230,022 |
Pass [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 43,111 | 49,346 |
Pass [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 54,104 | 54,504 |
Pass [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 334,460 | 292,886 |
Pass [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 409,289 | 429,835 |
Pass [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 142,594 | 148,680 |
Pass [Member] | Agricultural Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 47,814 | 48,517 |
Pass [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 100,584 | 110,413 |
Pass [Member] | Mortgage Warehouse Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 189,103 | 91,813 |
Pass [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 7,245 | 7,851 |
Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 24,452 | 28,698 |
Special Mention [Member] | Real Estate Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 10,735 | 12,281 |
Special Mention [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 98 | 231 |
Special Mention [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,425 | 1,861 |
Special Mention [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,995 | 2,194 |
Special Mention [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,005 | 4,192 |
Special Mention [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,164 | 2,730 |
Special Mention [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,048 | 1,073 |
Special Mention [Member] | Agricultural Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 217 | 580 |
Special Mention [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 13,415 | 15,686 |
Special Mention [Member] | Mortgage Warehouse Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 85 | 151 |
Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,344 | 9,311 |
Substandard [Member] | Real Estate Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,763 | 8,895 |
Substandard [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 164 | 1,310 |
Substandard [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 72 | 64 |
Substandard [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,384 | 3,021 |
Substandard [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 11 | 4,354 |
Substandard [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 132 | 146 |
Substandard [Member] | Agricultural Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 556 | 377 |
Substandard [Member] | Mortgage Warehouse Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 25 | 39 |
Impaired [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 14,153 | 16,072 |
Impaired [Member] | Real Estate Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 12,746 | 13,501 |
Impaired [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Impaired [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 554 | 488 |
Impaired [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,020 | 3,632 |
Impaired [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,421 | 4,716 |
Impaired [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 353 | 373 |
Impaired [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,034 | 1,225 |
Impaired [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,105 | 1,425 |
Impaired [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 259 | 1,642 |
Impaired [Member] | Agricultural Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 5 | 6 |
Impaired [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 977 | 1,744 |
Impaired [Member] | Mortgage Warehouse Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Impaired [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 425 | $ 821 |
Loans and Leases - Allowance fo
Loans and Leases - Allowance for Credit Losses - Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 9,750 | $ 9,043 | $ 9,701 | |
Charge-offs | (4,873) | (5,308) | (3,085) | |
Recoveries | 2,496 | 1,665 | 3,567 | |
Provision | 2,550 | 4,350 | (1,140) | |
Ending balance | 9,923 | 9,750 | 9,043 | |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 30 | 46 | 457 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision | 102 | (16) | (411) | |
Ending balance | 132 | 30 | 46 | |
Real Estate Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 5,831 | 4,786 | 3,548 | |
Charge-offs | (1,190) | (2,474) | (101) | |
Recoveries | 647 | 374 | 2,235 | |
Provision | 347 | 3,145 | (896) | |
Ending balance | 5,635 | 5,831 | 4,786 | |
Agricultural Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 256 | 208 | 209 | |
Charge-offs | 0 | 0 | (154) | |
Recoveries | 0 | 23 | 5 | |
Provision | (63) | 25 | 148 | |
Ending balance | 193 | 256 | 208 | |
Commercial and Industrial and Mortgage Warehouse Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | [1] | 2,394 | 2,772 | 4,279 |
Charge-offs | [1] | (1,274) | (608) | (669) |
Recoveries | [1] | 690 | 148 | 310 |
Provision | [1] | 875 | 82 | (1,148) |
Ending balance | [1] | 2,685 | 2,394 | 2,772 |
Consumer Loans Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,239 | 1,231 | 1,208 | |
Charge-offs | (2,409) | (2,226) | (2,161) | |
Recoveries | 1,159 | 1,120 | 1,017 | |
Provision | 1,289 | 1,114 | 1,167 | |
Ending balance | $ 1,278 | $ 1,239 | $ 1,231 | |
[1] | Includes mortgage warehouse lines |
Loans and Leases - Activity in
Loans and Leases - Activity in Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually | $ 14,152 | $ 16,072 | $ 16,413 | |
Collectively | 1,748,412 | 1,715,856 | 1,541,407 | |
Total Financing Receivables | 1,762,565 | 1,731,928 | ||
Real Estate Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually | 12,745 | 13,501 | 13,072 | |
Collectively | 1,389,368 | 1,440,429 | 1,213,644 | |
Total Financing Receivables | 1,402,114 | 1,453,930 | ||
Agricultural Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually | 5 | 6 | ||
Collectively | 48,031 | 49,097 | 46,796 | |
Total Financing Receivables | 48,036 | 49,103 | ||
Commercial and Industrial and Mortgage Warehouse Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually | [1] | 977 | 1,744 | 2,064 |
Collectively | [1] | 303,658 | 218,289 | 271,618 |
Consumer Loans Sector [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually | 425 | 821 | 1,277 | |
Collectively | 7,355 | 8,041 | $ 9,349 | |
Total Financing Receivables | $ 7,780 | $ 8,862 | ||
[1] | Includes mortgage warehouse lines |
Loans and Leases - Allowance _2
Loans and Leases - Allowance for Credit Losses - Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Specific | $ 827 | $ 2,008 | $ 1,153 | ||
General | 9,096 | 7,742 | 7,890 | ||
Ending balance | 9,923 | 9,750 | 9,043 | $ 9,701 | |
Unallocated [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
General | 132 | 30 | 46 | ||
Ending balance | 132 | 30 | 46 | 457 | |
Real Estate Sector [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Specific | 493 | 937 | 728 | ||
General | 5,142 | 4,894 | 4,058 | ||
Ending balance | 5,635 | 5,831 | 4,786 | 3,548 | |
Agricultural Sector [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Specific | 1 | 2 | |||
General | 192 | 254 | 208 | ||
Ending balance | 193 | 256 | 208 | 209 | |
Commercial and Industrial and Mortgage Warehouse Sector [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Specific | 219 | 918 | 188 | ||
General | 2,466 | 1,476 | 2,584 | ||
Ending balance | [1] | 2,685 | 2,394 | 2,772 | 4,279 |
Consumer Loans Sector [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Specific | 114 | 151 | 237 | ||
General | 1,164 | 1,088 | 994 | ||
Ending balance | $ 1,278 | $ 1,239 | $ 1,231 | $ 1,208 | |
[1] | Includes mortgage warehouse lines |
Loans and Leases - Past Due and
Loans and Leases - Past Due and Nonaccrual Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | $ 5,994 | $ 7,480 | |||
Current | 1,756,571 | 1,724,448 | |||
Total Financing Receivables | 1,762,565 | 1,731,928 | |||
Non-Accrual Loans | [1] | 5,737 | 5,156 | ||
Real Estate Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 5,550 | 4,748 | |||
Current | 1,396,564 | 1,449,182 | |||
Total Financing Receivables | 1,402,114 | 1,453,930 | |||
Non-Accrual Loans | [1] | 5,055 | 3,585 | ||
Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 105,979 | 105,676 | |||
Total Financing Receivables | 105,979 | 105,676 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Real Estate Sector [Member] | Other construction/land [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 16 | 237 | |||
Current | 91,397 | 108,786 | |||
Total Financing Receivables | 91,413 | 109,023 | |||
Non-Accrual Loans | [1] | 31 | 82 | ||
Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,524 | 1,094 | |||
Current | 198,657 | 235,731 | |||
Total Financing Receivables | 200,181 | 236,825 | |||
Non-Accrual Loans | [1] | 741 | 799 | ||
Real Estate Sector [Member] | Equity Lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 265 | 1,528 | |||
Current | 49,334 | 54,792 | |||
Total Financing Receivables | 49,599 | 56,320 | |||
Non-Accrual Loans | [1] | 480 | 408 | ||
Real Estate Sector [Member] | Multi-Family Residential [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 54,457 | 54,877 | |||
Total Financing Receivables | 54,457 | 54,877 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,640 | 285 | |||
Current | 342,243 | 301,039 | |||
Total Financing Receivables | 343,883 | 301,324 | |||
Non-Accrual Loans | [1] | 1,440 | 605 | ||
Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 2,105 | 49 | |||
Current | 410,464 | 438,295 | |||
Total Financing Receivables | 412,569 | 438,344 | |||
Non-Accrual Loans | [1] | 2,105 | 49 | ||
Real Estate Sector [Member] | Farmland [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 1,555 | |||
Current | 144,033 | 149,986 | |||
Total Financing Receivables | 144,033 | 151,541 | |||
Non-Accrual Loans | [1] | 258 | 1,642 | ||
Agricultural Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 48,036 | 49,103 | |||
Total Financing Receivables | 48,036 | 49,103 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Commercial and Industrial Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 375 | 2,536 | |||
Current | 115,157 | 125,684 | |||
Total Financing Receivables | 115,532 | 128,220 | |||
Non-Accrual Loans | [1] | 651 | 1,425 | ||
Mortgage Warehouse Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Current | 189,103 | 91,813 | |||
Total Financing Receivables | 189,103 | 91,813 | |||
Non-Accrual Loans | [1] | 0 | 0 | ||
Consumer Loans Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 69 | 196 | |||
Current | 7,711 | 8,666 | |||
Total Financing Receivables | 7,780 | 8,862 | |||
Non-Accrual Loans | [1] | 31 | 146 | ||
30-59 Days Past Due [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 2,945 | 5,449 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 2,730 | 3,787 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | Other construction/land [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 16 | 210 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 485 | 319 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | Equity Lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 177 | 1,471 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,552 | 183 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 500 | 49 | |||
30-59 Days Past Due [Member] | Real Estate Sector [Member] | Farmland [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 1,555 | |||
30-59 Days Past Due [Member] | Agricultural Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 160 | 1,567 | |||
30-59 Days Past Due [Member] | Mortgage Warehouse Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
30-59 Days Past Due [Member] | Consumer Loans Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 55 | 95 | |||
60-89 Days Past Due [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 617 | 128 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 390 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | Other construction/land [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 380 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | Equity Lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 10 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Real Estate Sector [Member] | Farmland [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Agricultural Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 215 | 83 | |||
60-89 Days Past Due [Member] | Mortgage Warehouse Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
60-89 Days Past Due [Member] | Consumer Loans Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 12 | 45 | |||
90 Days Or More Past Due [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 2,432 | [2] | 1,903 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 2,430 | [2] | 961 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | Other construction/land [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 27 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 659 | [2] | 775 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | Equity Lines [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 78 | [2] | 57 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 88 | [2] | 102 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 1,605 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Real Estate Sector [Member] | Farmland [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Agricultural Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Commercial and Industrial Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 886 | [3] | |
90 Days Or More Past Due [Member] | Mortgage Warehouse Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | 0 | [2] | 0 | [3] | |
90 Days Or More Past Due [Member] | Consumer Loans Sector [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Total Past Due | $ 2 | [2] | $ 56 | [3] | |
[1] | Included in Total Financing Receivables | ||||
[2] | As of December 31, 2019 there were no loans over 90 days past due and still accruing . | ||||
[3] | As of December 31, 2018 there were no loans over 90 days past due and still accruing. |
Loans and Leases - Past Due a_2
Loans and Leases - Past Due and Nonaccrual Loans - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Loans and Leases - Individually
Loans and Leases - Individually Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | $ 9,694 | $ 13,851 | |||
With an Allowance Recorded Recorded Investment | [2] | 9,464 | 13,138 | |||
With an Allowance Recorded Related Allowance | 827 | 2,008 | ||||
With an Allowance Recorded Average Recorded Investment | 9,951 | 13,821 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 503 | 689 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 6,121 | 3,199 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 4,688 | 2,934 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 6,684 | 3,781 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 24 | 4 | |||
Individually impaired loans Unpaid Principal Balance | [1] | 15,815 | 17,050 | |||
Total impaired loans | [2] | 14,152 | 16,072 | |||
Individually impaired loans Related Allowance | 827 | 2,008 | ||||
Individually impaired loans Average Recorded Investment | 16,635 | 17,602 | ||||
Individually impaired loans Interest Income Recognized | 527 | [3] | 693 | [3] | $ 784 | |
Real Estate Sector [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 8,310 | 11,308 | |||
With an Allowance Recorded Recorded Investment | [2] | 8,138 | 10,834 | |||
With an Allowance Recorded Related Allowance | 493 | 938 | ||||
With an Allowance Recorded Average Recorded Investment | 8,336 | 10,941 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 439 | 588 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 6,010 | 2,779 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 4,607 | 2,667 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 6,382 | 2,670 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 9 | 3 | |||
Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With an Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With an Allowance Recorded Related Allowance | 0 | 0 | ||||
With an Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Sector [Member] | Other construction/land [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 656 | 593 | |||
With an Allowance Recorded Recorded Investment | [2] | 537 | 438 | |||
With an Allowance Recorded Related Allowance | 157 | 44 | ||||
With an Allowance Recorded Average Recorded Investment | 563 | 648 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 32 | 40 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 52 | 54 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 17 | 50 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 577 | 58 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 4 | 0 | |||
Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 2,298 | 3,325 | |||
With an Allowance Recorded Recorded Investment | [2] | 2,298 | 3,325 | |||
With an Allowance Recorded Related Allowance | 58 | 75 | ||||
With an Allowance Recorded Average Recorded Investment | 2,365 | 3,182 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 146 | 175 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 755 | 357 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 722 | 307 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 726 | 375 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 3 | |||
Real Estate Sector [Member] | Equity Lines [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 4,173 | 4,603 | |||
With an Allowance Recorded Recorded Investment | [2] | 4,120 | 4,550 | |||
With an Allowance Recorded Related Allowance | 252 | 656 | ||||
With an Allowance Recorded Average Recorded Investment | 4,185 | 4,368 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 200 | 206 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 326 | 224 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 301 | 166 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 310 | 221 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 5 | 0 | |||
Real Estate Sector [Member] | Multi-Family Residential [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 353 | 373 | |||
With an Allowance Recorded Recorded Investment | [2] | 353 | 373 | |||
With an Allowance Recorded Related Allowance | 17 | 25 | ||||
With an Allowance Recorded Average Recorded Investment | 361 | 359 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 23 | 20 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 593 | 842 | |||
With an Allowance Recorded Recorded Investment | [2] | 593 | 723 | |||
With an Allowance Recorded Related Allowance | 6 | 135 | ||||
With an Allowance Recorded Average Recorded Investment | 606 | 740 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 38 | 40 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 1,560 | 502 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 1,440 | 502 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 1,477 | 478 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 0 | 1,572 | |||
With an Allowance Recorded Recorded Investment | [2] | 0 | 1,425 | |||
With an Allowance Recorded Related Allowance | 0 | 3 | ||||
With an Allowance Recorded Average Recorded Investment | 0 | 1,644 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 107 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 3,295 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 2,105 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 3,267 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Real Estate Sector [Member] | Farmland [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 237 | 0 | |||
With an Allowance Recorded Recorded Investment | [2] | 237 | 0 | |||
With an Allowance Recorded Related Allowance | 3 | 0 | ||||
With an Allowance Recorded Average Recorded Investment | 256 | 0 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 22 | 1,642 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 22 | 1,642 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 25 | 1,538 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Agricultural Sector [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 5 | 6 | |||
With an Allowance Recorded Recorded Investment | [2] | 5 | 6 | |||
With an Allowance Recorded Related Allowance | 1 | 1 | ||||
With an Allowance Recorded Average Recorded Investment | 6 | 6 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 0 | 0 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 0 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 0 | 0 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Commercial and Industrial Sector [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 915 | 1,724 | |||
With an Allowance Recorded Recorded Investment | [2] | 896 | 1,534 | |||
With an Allowance Recorded Related Allowance | 219 | 918 | ||||
With an Allowance Recorded Average Recorded Investment | 1,140 | 1,965 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 29 | 40 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 102 | 238 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 81 | 211 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 162 | 838 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | 0 | 0 | |||
Consumer Loans Sector [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 464 | 813 | |||
With an Allowance Recorded Recorded Investment | [2] | 425 | 764 | |||
With an Allowance Recorded Related Allowance | 114 | 151 | ||||
With an Allowance Recorded Average Recorded Investment | 469 | 909 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | 35 | 61 | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 9 | 182 | |||
With no Related Allowance Recorded Recorded Investment | [2] | 0 | 56 | |||
With no Related Allowance Recorded Related Allowance | 0 | 0 | ||||
With no Related Allowance Recorded Average Recorded Investment | 140 | 273 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | $ 15 | $ 1 | |||
[1] | Contractual principal balance due from customer. | |||||
[2] | Principal balance on Company’s books, less any direct charge offs. | |||||
[3] | Interest income is recognized on performing balances on a regular accrual basis. |
Loans and Leases - Impaired Tro
Loans and Leases - Impaired Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | $ 470 | $ 602 |
Real Estate Sector [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 8,179 | 10,630 |
Consumer Loans Sector [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | $ 407 | $ 705 |
Loans and Leases - Additional C
Loans and Leases - Additional Commitments to Existing Customers with Restructured Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Additional Commitments To Financing Receivable Modifications Amount | $ 37 | $ 1,834 |
Loans and Leases - Interest Inc
Loans and Leases - Interest Income Recognized on Impaired Loans (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Receivables [Abstract] | |||||
Impaired Financing Receivable, Interest Income, Accrual Method, Total | $ 527,000 | [1] | $ 693,000 | [1] | $ 784,000 |
Interest income recognized on a cash basis on impaired loans | $ 0 | $ 0 | $ 0 | ||
[1] | Interest income is recognized on performing balances on a regular accrual basis. |
Loans and Leases - Schedule o_2
Loans and Leases - Schedule of Loans and Leases Receivable Impaired Interest Income and Lost from Non Accrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Interest that would have been recorded under the loans' original terms | $ 650 | $ 484 | $ 361 |
Less gross interest recorded | 289 | 167 | 103 |
Foregone interest | $ 361 | $ 317 | $ 258 |
Loans and Leases - Loans Pledge
Loans and Leases - Loans Pledged to Secure Short-term Borrowing Arrangements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 777,685 | $ 804,705 |
Loans and Leases - Deferred Sal
Loans and Leases - Deferred Salaries and Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Deferred Salaries And Benefits | $ 3,678 | $ 4,173 | $ 3,854 |
Loans and Leases - Troubled Deb
Loans and Leases - Troubled Debt Restructurings, by Type of Loan Modification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | $ 967 | $ 1,304 |
Real Estate Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 507 | 964 |
Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 163 | 0 |
Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 344 | 964 |
Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Agricultural Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 7 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 401 | 323 |
Consumer Loans Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 59 | 10 |
Troubled Debt Restructurings Rate Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 94 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 94 | 0 |
Troubled Debt Restructurings Rate Modifications [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 771 | 540 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 507 | 460 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 163 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 344 | 460 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Term Modifications [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 7 |
Troubled Debt Restructurings Term Modifications [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 255 | 73 |
Troubled Debt Restructurings Term Modifications [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 9 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 539 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 504 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 504 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Interest Only Modification [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 25 |
Troubled Debt Restructurings Interest Only Modification [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 10 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 102 | 225 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 0 | 0 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | 52 | 225 |
Troubled Debt Restructurings Rate And Term Modifications [Member] | Consumer Loans Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable Modifications Post Modification Recorded Investment During Period | $ 50 | $ 0 |
Loans and Leases - Troubled D_2
Loans and Leases - Troubled Debt Restructurings - Tabular Disclosure (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | ||
Financing Receivable, Modifications [Line Items] | |||
Pre-Modification Outstanding Recorded Investment | $ 967 | $ 1,304 | |
Post-Modification Outstanding Recorded Investment | 967 | 1,304 | |
Reserve Difference | [1] | $ (32) | $ 6 |
Real Estate Sector [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 507 | $ 964 | |
Post-Modification Outstanding Recorded Investment | 507 | 964 | |
Reserve Difference | [1] | $ 74 | $ 4 |
Real Estate Sector [Member] | Other construction/land [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 163 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 163 | 0 | |
Reserve Difference | [1] | $ 74 | $ 0 |
Real Estate Sector [Member] | 1-4 Family - Closed-End [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Sector [Member] | Equity Lines [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | 8 | |
Pre-Modification Outstanding Recorded Investment | $ 344 | $ 964 | |
Post-Modification Outstanding Recorded Investment | 344 | 964 | |
Reserve Difference | [1] | $ 0 | $ 4 |
Real Estate Sector [Member] | Multi-Family Residential [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Sector [Member] | Commercial Real Estate Owner Occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Real Estate Sector [Member] | Farmland [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Reserve Difference | [1] | $ 0 | $ 0 |
Agricultural Sector [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 7 | |
Post-Modification Outstanding Recorded Investment | 0 | 7 | |
Reserve Difference | [1] | $ 0 | $ 2 |
Commercial and Industrial Sector [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 7 | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 401 | $ 323 | |
Post-Modification Outstanding Recorded Investment | 401 | 323 | |
Reserve Difference | [1] | $ (59) | $ 0 |
Consumer Loans Sector [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 59 | $ 10 | |
Post-Modification Outstanding Recorded Investment | 59 | 10 | |
Reserve Difference | [1] | $ (47) | $ 0 |
[1] | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. |
Loans and Leases - Total Allowa
Loans and Leases - Total Allowance for Loan and Lease Losses Specifically Allocated to Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Allowance for Loan and Lease Losses, Adjustments, Other | $ 648 | $ 1,048 |
Loans and Leases - Purchased Cr
Loans and Leases - Purchased Credit Impaired Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance, Total | [1] | $ 15,815 | $ 17,050 |
Impaired Financing Receivable, Carrying Value, Total | [2] | 14,152 | 16,072 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance, Total | 88 | 103 | |
Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance, Total | $ 88 | $ 103 | |
[1] | Contractual principal balance due from customer. | ||
[2] | Principal balance on Company’s books, less any direct charge offs. |
Loans and Leases - Purchased _2
Loans and Leases - Purchased Credit Impaired Loans - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Purchased credit impaired loans acquired | $ 0 | $ 0 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 60,432 | $ 61,311 |
Less accumulated depreciation and amortization | 33,041 | 32,712 |
Construction in progress | 44 | 901 |
Property, Plant and Equipment, Net, Total | 27,435 | 29,500 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,751 | 5,751 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 21,526 | 21,579 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 17,798 | 18,958 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 15,357 | $ 15,023 |
Premises and Equipment - Deprec
Premises and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation, Depletion and Amortization [Abstract] | |||
Depreciation and amortization | $ 2,810 | $ 2,995 | $ 2,852 |
Operating Leases - General Info
Operating Leases - General Information (Details) - Dec. 31, 2019 | store | Office | item |
Lessee Disclosure [Abstract] | |||
Number of branch locations | 21 | 21 | |
Number of ATM locations | 3 | 3 | |
Number of administration offices | 1 |
Operating Leases - Lease Expens
Operating Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income and Expenses, Lessee [Abstract] | |||
Operating lease, expense | $ 2,227 | ||
Operating Leases, Rent Expense, Net [Abstract] | |||
Rent expense | $ 2,257 | $ 2,482 |
Operating Leases - Assets and L
Operating Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Assets and Liabilities, Lessee [Abstract] | ||
Right-of-use assets | $ 8,308 | $ 10,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating lease liabilities | $ 8,915 | $ 10,000 |
Operating Lease, Liability, Statement of Financial Position | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Weighted average lease term (in years) | 7 years 1 month 6 days |
Weighted average discount rate (as a percent) | 5.50% |
Lease liabilities from new right-of-use assets obtained during the year | $ 0 |
Cash paid on operating leases | $ 2,199 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Undiscounted Lease Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,235 |
2021 | 2,023 |
2022 | 1,574 |
2023 | 1,113 |
2024 | 749 |
Thereafter | 3,196 |
Total undiscounted lease payments | $ 10,890 |
Operating Leases - Lease Liabil
Operating Leases - Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Lease Liabilities, Gross Difference, Amount [Abstract] | ||
Total undiscounted lease payments | $ 10,890 | |
Less: imputed interest | (1,975) | |
Operating lease liabilities | $ 8,915 | $ 10,000 |
Operating Leases - Renewal Term
Operating Leases - Renewal Terms (Details) | Dec. 31, 2019 |
Minimum [Member] | |
Lessee, Operating Lease, Description [Abstract] | |
Lessee, Operating Lease, Renewal Term | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Description [Abstract] | |
Lessee, Operating Lease, Renewal Term | 10 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Change in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Beginning Balance | $ 27,357 | $ 27,357 | $ 8,268 |
Acquired goodwill | 0 | 0 | 19,089 |
Impairment | 0 | 0 | 0 |
Goodwill, Ending Balance | $ 27,357 | $ 27,357 | $ 27,357 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Impairment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($)segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||
Number of Operating Segments | segment | 1 | 1 | 1 |
Goodwill and Intangible Asset Impairment [Abstract] | |||
Impairment | $ | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - Core Deposits [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,401 | $ 8,401 |
Accumulated Amortization | $ 3,020 | $ 1,946 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization [Abstract] | |||
Amortization of Intangible Assets | $ 1,074 | $ 1,020 | $ 508 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 | $ 1,074 |
2021 | 1,032 |
2022 | 1,000 |
2023 | 876 |
2024 | 781 |
Thereafter | 618 |
Total | $ 5,381 |
Other Assets - Tabular Disclosu
Other Assets - Tabular Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Accrued interest receivable | $ 8,229 | $ 8,587 |
Deferred tax assets | 3,463 | 8,654 |
Investment in qualified affordable housing projects | 4,104 | 5,905 |
Investment in limited partnerships | 2,722 | 3,049 |
Federal Home Loan Bank stock, at cost | 10,727 | 9,894 |
Other | 16,670 | 14,475 |
Other Assets, Total | $ 45,915 | $ 50,564 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Qualified affordable housing projects capital commitment | $ 2,906 | |
Federal Home Loan Bank stock, at cost | $ 10,727 | $ 9,894 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest-bearing Deposit Liabilities, by Component [Abstract] | ||
Interest bearing demand deposits | $ 91,212 | $ 101,243 |
NOW | 458,600 | 434,483 |
Savings | 294,317 | 283,953 |
Money market | 118,933 | 123,807 |
Time, under $250,000 | 261,916 | 262,901 |
Time, $250,000 or more | 252,446 | 247,426 |
Interest-bearing Deposit Liabilities, Total | $ 1,477,424 | $ 1,453,813 |
Deposits - Maturities of Times
Deposits - Maturities of Times Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2020 | $ 503,956 |
2021 | 5,654 |
2022 | 1,155 |
2023 | 2,534 |
2024 | 241 |
Thereafter | 822 |
Time Deposits | $ 514,362 |
Deposits - Interest Expense Rec
Deposits - Interest Expense Recognized on Interest Bearing Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Expense, Deposits [Abstract] | |||
Interest bearing demand deposits | $ 316 | $ 364 | $ 417 |
NOW | 524 | 478 | 427 |
Savings | 308 | 314 | 258 |
Money market | 181 | 146 | 157 |
CDAR's | 0 | 0 | 0 |
Time deposits | 8,931 | 5,653 | 2,503 |
Brokered Deposits | 1,120 | 305 | 0 |
Interest Expense, Deposits, Total | $ 11,380 | $ 7,260 | $ 3,762 |
Other Borrowing Arrangements -
Other Borrowing Arrangements - Tabular Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 35,633 | $ 23,321 |
Amount | 45,711 | 72,459 |
Maximum month-end balance during the year | 112,262 | 74,622 |
Repurchase Agreements [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | 22,090 | 14,332 |
Amount | $ 25,711 | $ 16,359 |
Average interest rate during the year | 0.40% | 0.40% |
Maximum month-end balance during the year | $ 27,712 | $ 17,672 |
Weighted average interest rate | 0.40% | 0.40% |
Overnight Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 12,408 | $ 8,967 |
Amount | $ 0 | $ 56,100 |
Average interest rate during the year | 2.09% | 2.19% |
Maximum month-end balance during the year | $ 63,700 | $ 56,100 |
Weighted average interest rate | 0.00% | 2.43% |
Short Term Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 822 | $ 0 |
Amount | $ 20,000 | $ 0 |
Average interest rate during the year | 1.69% | 0.00% |
Maximum month-end balance during the year | $ 20,000 | $ 0 |
Weighted average interest rate | 1.69% | 0.00% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 313 | $ 22 |
Amount | $ 0 | $ 0 |
Average interest rate during the year | 0.00% | 0.00% |
Maximum month-end balance during the year | $ 850 | $ 850 |
Weighted average interest rate | 0.00% | 0.00% |
Other Borrowing Arrangements _2
Other Borrowing Arrangements - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | $ 777,685,000 | |
Maximum borrowing capacity | 511,060,000 | |
Remaining borrowing capacity | 534,078,000 | |
Unused lines of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Long-term Line of Credit | 0 | $ 0 |
Unsecured line of credit facility, amount | 80,000,000 | 80,000,000 |
FRB [Member] | ||
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | 87,638,000 | |
Maximum borrowing capacity | 59,198,000 | |
Long-term Line of Credit | $ 0 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal (Current) | $ 7,081 | $ 5,780 | $ 8,456 | ||||||||
Effect of tax act | 0 | 0 | 2,710 | ||||||||
Federal (Deferred) | (228) | 179 | (828) | ||||||||
Federal | 6,853 | 5,959 | 10,338 | ||||||||
State (Current) | 4,771 | 3,819 | 3,604 | ||||||||
State (Deferred) | 133 | 129 | (302) | ||||||||
State | 4,904 | 3,948 | 3,302 | ||||||||
Income Tax Expense (Benefit), Total | $ 2,902 | $ 2,854 | $ 3,169 | $ 2,832 | $ 2,997 | $ 2,171 | $ 2,643 | $ 2,096 | $ 11,757 | $ 9,907 | $ 13,640 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,934 | $ 2,882 |
Foreclosed assets | 200 | 704 |
Deferred compensation | 3,895 | 3,538 |
Accrued reserves | 312 | 421 |
Non accrual loans | 181 | 205 |
Net operating loss carryforward | 1,909 | 2,131 |
Net unrealized loss on securities available-for-sale | 0 | 2,798 |
Other | 3,536 | 3,510 |
Total deferred tax assets | 12,967 | 16,189 |
Deferred tax liabilities: | ||
Premises and equipment | (324) | (833) |
Deferred loan costs | (2,656) | (2,656) |
Net unrealized gain on securities available-for-sale | (2,490) | 0 |
Other | (4,034) | (4,046) |
Total deferred tax liabilities | (9,504) | (7,535) |
Net deferred tax assets | $ 3,463 | $ 8,654 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at federal statutory rate | $ 10,021 | $ 8,313 | $ 11,613 | ||||||||
State franchise tax expense, net of federal tax effect | 3,872 | 3,390 | 2,363 | ||||||||
Tax exempt municipal income | (952) | (852) | (1,299) | ||||||||
Affordable housing tax credits | (538) | (632) | (711) | ||||||||
Effect of the tax act | 0 | 0 | 2,710 | ||||||||
Excess tax benefit of stock-based compensation | (133) | (177) | (248) | ||||||||
Other | (513) | (135) | (788) | ||||||||
Income Tax Expense (Benefit), Total | $ 2,902 | $ 2,854 | $ 3,169 | $ 2,832 | $ 2,997 | $ 2,171 | $ 2,643 | $ 2,096 | $ 11,757 | $ 9,907 | $ 13,640 |
Effective tax rate | 24.60% | 25.00% | 41.10% |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carry Forwards (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 6,288 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 6,869 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Recorded interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2006 | Mar. 31, 2004 | Dec. 31, 2019 | |
Subordinated Debt [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Proceeds from Issuance of Subordinated Long-term Debt | $ 7,217,000 | $ 15,464,000 | $ 15,464,000 | |
Subordinated Borrowing, Due Date | Dec. 15, 2037 | Sep. 23, 2036 | Mar. 17, 2034 | |
Subordinated Borrowing, Interest Rate | 3.39% | 3.33% | 4.65% | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.40% | 2.75% | |
Statutory Trust [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Trust Preferred Securities Qualified As Tier One Capital | $ 34,945,000 | |||
Sierra Statutory Trust II [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Floating Rate Capital Trust Pass Through Securities Issued During Period | 15,000 | 15,000 | ||
Floating rate capital trust pass through securities liquidation value per securities | $ 1,000 | $ 1,000 | ||
Proceeds from Issuance of Mandatory Redeemable Capital Securities | $ 15,000,000 | $ 15,000,000 | ||
Coast Bancorp Statutory Trust II [Member] | ||||
Subordinated Borrowings [Line Items] | ||||
Floating Rate Capital Trust Pass Through Securities Issued During Period | 7,000 | |||
Floating rate capital trust pass through securities liquidation value per securities | $ 1,000 | |||
Proceeds from Issuance of Mandatory Redeemable Capital Securities | $ 7,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - General Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Federal Reserve Bank Reserve Balance | $ 0 | $ 2,674,000 |
Letter of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advances from Federal Home Loan Banks, Total | 104,854,000 | |
Secure Public Deposits [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advances from Federal Home Loan Banks, Total | 100,000,000 | |
Guarantee Financial Performance [Member] | ||
Commitments And Contingencies [Line Items] | ||
Advances from Federal Home Loan Banks, Total | $ 4,854,000 | |
Commercial Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 80.00% | |
Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 60.00% | |
Residential Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 29.00% | |
Farmland [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Financial Instruments Representing Off-Balance-Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed Rate Commitments to Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Financial instruments off-balance sheet credit risks | $ 80,674 | $ 96,648 |
Variable Rate Commitments To Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Financial instruments off-balance sheet credit risks | 411,366 | 685,339 |
Standby Letters of Credit [Member] | ||
Other Commitments [Line Items] | ||
Financial instruments off-balance sheet credit risks | $ 8,619 | $ 8,966 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 98,603 | |||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 380,551 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options outstanding | 458,000 | 453,000 | 455,000 | 467,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 1 month 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | |||
Stock Issued During Period Shares Stock Option Exercised | 83,000 | 77,000 | 70,000 | |
Stock Issued During Period, Value, Stock Options Exercised | $ 1,088 | $ 1,131 | $ 764 | |
Pre-tax charge | 491 | 373 | 476 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 81 | $ 67 | $ 141 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 314 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 3 months 18 days | |||
Stock Options [Member] | ||||
Class Of Stock [Line Items] | ||||
Shares of common stock were not considered in computing diluted earnings per common share | 243,657 | 157,532 | 90,000 | |
2007 Stock Option Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options outstanding | 376,220 | |||
Percentage of Share Based Compensation Arrangement by Share Based Payment Award Options Exercise Price to Fair Market Value | 100.00% | |||
2017 Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 850,000 | |||
Number of shares remained available for grant | 672,600 | |||
Percentage of Share Based Compensation Arrangement by Share Based Payment Award Options Exercise Price to Fair Market Value | 100.00% | |||
Stock Issued During Period Shares Stock Option Exercised | 83,261 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 1,088 | |||
Deferred Tax Expense from Stock Options Exercised | $ 278 |
Shareholders' Equity - Calculat
Shareholders' Equity - Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share | |||||||||||
Net income (dollars in thousands) | $ 9,285 | $ 8,952 | $ 8,829 | $ 8,895 | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 35,961 | $ 29,677 | $ 19,539 |
Weighted average shares outstanding | 15,311,113 | 15,261,794 | 14,172,196 | ||||||||
Basic earnings per share | $ 2.35 | $ 1.94 | $ 1.38 | ||||||||
Diluted Earnings Per Share | |||||||||||
Net income (dollars in thousands) | $ 9,285 | $ 8,952 | $ 8,829 | $ 8,895 | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 35,961 | $ 29,677 | $ 19,539 |
Weighted average shares outstanding | 15,311,113 | 15,261,794 | 14,172,196 | ||||||||
Effect of dilutive stock options | 125,998 | 170,326 | 185,586 | ||||||||
Weighted average shares outstanding | 15,437,111 | 15,432,120 | 14,357,782 | ||||||||
Diluted earnings per share | $ 0.60 | $ 0.58 | $ 0.57 | $ 0.58 | $ 0.51 | $ 0.46 | $ 0.52 | $ 0.44 | $ 2.33 | $ 1.92 | $ 1.36 |
Shareholders' Equity - Stock Op
Shareholders' Equity - Stock Options, Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Stockholders' Equity Note [Abstract] | ||||
Outstanding, beginning of year | 453 | 455 | 467 | |
Exercised, Shares | (83) | (77) | (70) | |
Granted, Shares | 102 | 84 | 91 | |
Canceled, Shares | (14) | (9) | (33) | |
Outstanding Shares, end of year | 458 | 453 | 455 | |
Exercisable Shares, end of year | [1] | 322 | 330 | 400 |
Outstanding, beginning of year, Weighted Average Exercise Price | $ 18.45 | $ 16.33 | $ 14.12 | |
Exercised, Weighted Average Exercise Price | 13.07 | 14.67 | 12.42 | |
Granted, Weighted Average Exercise Price | 26.97 | 27.35 | 28.21 | |
Canceled, Weighted Average Exercise Price | 26.77 | 26.73 | 26.41 | |
Outstanding, end of year, Weighted Average Exercise Price | 21.08 | 18.45 | 16.33 | |
Exercisable, end of year, Weighted Average Exercise Price | [1] | $ 18.89 | $ 15.77 | $ 15.57 |
Outstanding, end of year, Aggregate Intrinsic value | [2] | $ 3,684 | ||
Exercisable, end of year, Aggregate Intrinsic value | [1],[2] | $ 3,297 | ||
[1] | The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2019 was 6.1 years and 5.1 years, respectively. | |||
[2] | The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2019. This amount changes based on changes in the market value of the Company’s stock. |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Options Indexed to Issuer Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |||
Weighted-average grant-date fair value per share | $ 6.60 | $ 5.94 | $ 6.13 |
Total intrinsic value of stock options exercised | $ 1,150 | $ 988 | $ 1,042 |
Total fair value of stock options vested | $ 438 | $ 55 | $ 494 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2015 | |
Banking And Thrift [Line Items] | ||
Permitted Assets Value Requirement To Continue Include Trust Preferred Securities In Tier One Capital | $ 15,000,000 | |
Regulatory Restrictions on Payment of Dividends | If a California corporation does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after the dividend the value of the company's assets would equal or exceed the sum of its total liabilities plus any preferred dividend arrears amount. | |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | $ 48,956 | |
Statutory Trust [Member] | ||
Banking And Thrift [Line Items] | ||
Percentage Of Trust Preferred Securities To Tier One Capital | 25.00% | |
Statutory Trust [Member] | Maximum [Member] | ||
Banking And Thrift [Line Items] | ||
Excess Capital to Risk Weighted Assets | 2.50% | |
Statutory Trust [Member] | Minimum [Member] | ||
Banking And Thrift [Line Items] | ||
Excess Capital to Risk Weighted Assets | 0.00% |
Regulatory Matters - Compliance
Regulatory Matters - Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Sierra Bancorp And Subsidiary [Member] | ||
Leverage Ratio | ||
Sierra Bancorp and subsidiary | $ 306,744 | $ 282,484 |
Minimum requirement for "Well-Capitalized" institutions | 128,769 | 122,962 |
Minimum regulatory requirement | $ 103,016 | $ 98,370 |
Bank of the Sierra | 11.91% | 11.49% |
Minimum requirement for "Well-Capitalized" institutions | 5.00% | 5.00% |
Minimum regulatory requirement | 4.00% | 4.00% |
Common Equity Tier 1 Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 271,799 | $ 247,717 |
Minimum requirements for "Well-Capitalized" institutions | 133,095 | 127,709 |
Minimum regulatory requirement | $ 92,143 | $ 88,414 |
Bank of the Sierra | 13.27% | 12.61% |
Minimum requirements for "Well-Capitalized" institutions | 6.50% | 6.50% |
Minimum regulatory requirement | 4.50% | 4.50% |
Tier 1 Risk-Based Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 306,744 | $ 282,484 |
Minimum requirement for "Well-Capitalized" institutions | 163,809 | 157,181 |
Minimum regulatory requirement | $ 122,857 | $ 117,885 |
Bank of the Sierra | 14.98% | 14.38% |
Minimum requirement for "Well-Capitalized" institutions | 8.00% | 8.00% |
Minimum regulatory requirement | 6.00% | 6.00% |
Total Risk-Based Capital Ratio | ||
Capital | $ 316,981 | $ 292,618 |
Minimum requirement for "Well-Capitalized" institutions | 204,762 | 196,476 |
Minimum regulatory requirement | $ 163,809 | $ 157,181 |
Bank of the Sierra | 15.48% | 14.89% |
Minimum requirement for "Well-Capitalized" institutions | 10.00% | 10.00% |
Minimum regulatory requirement | 8.00% | 8.00% |
Bank Of Sierra [Member] | ||
Leverage Ratio | ||
Sierra Bancorp and subsidiary | $ 301,963 | $ 280,184 |
Minimum requirement for "Well-Capitalized" institutions | 128,753 | 140,092 |
Minimum regulatory requirement | $ 103,002 | $ 98,364 |
Bank of the Sierra | 11.73% | 11.39% |
Minimum requirement for "Well-Capitalized" institutions | 5.00% | 5.00% |
Minimum regulatory requirement | 4.00% | 4.00% |
Common Equity Tier 1 Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 301,963 | $ 280,184 |
Minimum requirements for "Well-Capitalized" institutions | 133,077 | 127,776 |
Minimum regulatory requirement | $ 92,130 | $ 88,461 |
Bank of the Sierra | 14.75% | 14.25% |
Minimum requirements for "Well-Capitalized" institutions | 6.50% | 6.50% |
Minimum regulatory requirement | 4.50% | 4.50% |
Tier 1 Risk-Based Capital Ratio | ||
Sierra Bancorp and subsidiary | $ 301,963 | $ 280,184 |
Minimum requirement for "Well-Capitalized" institutions | 163,787 | 157,263 |
Minimum regulatory requirement | $ 122,840 | $ 117,947 |
Bank of the Sierra | 14.75% | 14.25% |
Minimum requirement for "Well-Capitalized" institutions | 8.00% | 8.00% |
Minimum regulatory requirement | 6.00% | 6.00% |
Total Risk-Based Capital Ratio | ||
Capital | $ 312,200 | $ 290,318 |
Minimum requirement for "Well-Capitalized" institutions | 204,734 | 196,579 |
Minimum regulatory requirement | $ 163,787 | $ 157,263 |
Bank of the Sierra | 15.25% | 14.77% |
Minimum requirement for "Well-Capitalized" institutions | 10.00% | 10.00% |
Minimum regulatory requirement | 8.00% | 8.00% |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan annual benefit after retirement or death period | 15 years | ||
Pension and other postretirement benefit contributions, Total | $ 5,276 | $ 5,229 | |
Pension and other postretirement benefit expense, Total | 329 | 375 | $ 325 |
Defined benefit plan, Benefits paid | $ 281 | $ 296 | $ 254 |
Percentage Of Salary Deferred For Tax Deferred Savings Plan Maximum | 15.00% | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 6.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 95.00% | 75.00% | 75.00% |
Defined contribution plan employer matching contribution vesting period | 5 years | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,134 | $ 934 | $ 745 |
Premium Life Insurance Policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Surrender Value of Life Insurance | 42,528 | 41,561 | |
Deferred Compensation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Surrender Value of Life Insurance | $ 7,989 | $ 6,592 |
Non-interest Income (Details)
Non-interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Included in other income: | ||||||
Amortization of limited partnerships | $ (2,079) | $ (2,561) | $ (961) | |||
Dividends on equity investments | 789 | [1] | 961 | [1] | 761 | |
Unrealized gains recognized on equity investments | [1] | 232 | 1,183 | |||
Other | 3,223 | 3,071 | 3,651 | |||
Total other non-interest income | $ 2,165 | $ 2,654 | $ 3,451 | |||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Other Non-interest Expense (Det
Other Non-interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Legal, audit and professional | $ 4,039 | $ 3,032 | $ 3,289 |
Data processing | 4,564 | 5,015 | 4,365 |
Advertising and promotional | 2,568 | 2,748 | 2,514 |
Deposit services | 7,962 | 5,413 | 4,426 |
Stationery and supplies | 318 | 1,387 | 1,309 |
Telephone and data communication | 1,529 | 1,479 | 1,654 |
Loan and credit card processing | 675 | 1,142 | 1,029 |
Foreclosed assets expense (income), net | 35 | (730) | 270 |
Postage | 436 | 997 | 1,064 |
Other | 2,082 | 1,808 | 1,691 |
Assessments | 525 | 856 | 509 |
Total other non-interest expense | $ 24,733 | $ 23,147 | $ 22,120 |
Related Party Transactions - Su
Related Party Transactions - Summary of the Aggregate Activity Involving Related Party Borrowers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Balance, beginning of year | $ 2,544 | $ 3,047 | $ 2,253 |
Disbursements | 18,681 | 13,873 | 15,223 |
Amounts repaid | (18,494) | (14,376) | (14,429) |
Balance, end of year | 2,731 | 2,544 | 3,047 |
Undisbursed commitments to related parties | $ 1,829 | $ 2,130 | $ 2,559 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Deposit From Related Party | $ 7,574 | $ 5,069 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 600,799 | $ 560,479 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 12,145 | 15,212 |
Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 400,389 | 404,733 |
States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 188,265 | 140,534 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 600,799 | 560,479 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 12,145 | 15,212 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 400,389 | 404,733 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 188,265 | 140,534 |
Other-than-temporary impairment losses on equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 600,799 | 560,479 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 12,145 | 15,212 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 400,389 | 404,733 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 188,265 | 140,534 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value - Fair Value Measu_2
Fair Value - Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | [1] | $ 14,152 | $ 16,072 |
Foreclosed assets | 800 | 1,082 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 1,692 | 205 | |
Foreclosed assets | 800 | 1,082 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 0 | 0 | |
Foreclosed assets | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 1,692 | 205 | |
Foreclosed assets | 800 | 1,082 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 0 | 0 | |
Foreclosed assets | $ 0 | $ 0 | |
[1] | Principal balance on Company’s books, less any direct charge offs. |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Securities available-for-sale | $ 600,799 | $ 560,479 |
Financial liabilities: | ||
Repurchase agreements | 25,711 | 16,359 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 80,077 | 74,132 |
Securities available-for-sale | 600,799 | 560,479 |
Loans and leases, net held for investment | 1,753,846 | 1,724,575 |
Collateral dependent impaired loans | 1,692 | 205 |
Financial liabilities: | ||
Non-interest-bearing | 690,950 | 662,527 |
Interest-bearing | 1,477,424 | 1,453,813 |
Fed funds purchased and repurchase agreements | 25,711 | 16,359 |
Short term borrowings | 20,000 | 56,100 |
Subordinated debentures | 34,945 | 34,767 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 80,076 | 74,132 |
Securities available-for-sale | 600,799 | 560,479 |
Loans and leases, net held for investment | 1,761,461 | 1,707,463 |
Collateral dependent impaired loans | 1,692 | 205 |
Financial liabilities: | ||
Non-interest-bearing | 690,950 | 662,527 |
Interest-bearing | 1,477,497 | 1,453,048 |
Fed funds purchased and repurchase agreements | 25,711 | 16,359 |
Short term borrowings | 20,000 | 56,100 |
Subordinated debentures | 30,564 | 30,311 |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 80,076 | 74,132 |
Securities available-for-sale | 0 | 0 |
Loans and leases, net held for investment | 0 | 0 |
Collateral dependent impaired loans | 0 | 0 |
Financial liabilities: | ||
Non-interest-bearing | 690,950 | 662,527 |
Interest-bearing | 0 | 0 |
Fed funds purchased and repurchase agreements | 0 | 0 |
Short term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 600,799 | 560,479 |
Loans and leases, net held for investment | 0 | 0 |
Collateral dependent impaired loans | 1,692 | 205 |
Financial liabilities: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing | 1,477,497 | 1,453,048 |
Fed funds purchased and repurchase agreements | 25,711 | 16,359 |
Short term borrowings | 20,000 | 56,100 |
Subordinated debentures | 30,564 | 30,311 |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Loans and leases, net held for investment | 1,761,461 | 1,707,463 |
Collateral dependent impaired loans | 0 | 0 |
Financial liabilities: | ||
Non-interest-bearing | 0 | 0 |
Interest-bearing | 0 | 0 |
Fed funds purchased and repurchase agreements | 0 | 0 |
Short term borrowings | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 492,040 | $ 781,987 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 8,619 | $ 8,966 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) | Nov. 03, 2017 | Oct. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Business combination, Acquisition related costs | $ 22,000 | $ 449,000 | $ 2,225,000 | |||
Goodwill | 27,357,000 | 27,357,000 | $ 27,357,000 | $ 8,268,000 | ||
Purchased Credit Impaired Loans [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accretable yield | 0 | |||||
Allowance for loan losses | 0 | |||||
Ojai Community Bancorp [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Oct. 1, 2017 | |||||
Business acquisition, Percentage of voting interests acquired | 100.00% | |||||
Payments to acquire businesses, Gross | $ 809,000 | |||||
Business acquisition, Equity interest issued or issuable, Number of shares | 1,376,431 | |||||
Business combination, Acquisition related costs | 22,000 | 41,000 | ||||
Goodwill | $ 18,464,000 | |||||
Business combination, Recognized identifiable assets acquired and liabilities assumed, Intangible assets, Other than goodwill, Total | $ 3,453,000 | |||||
Business acquisition, Intangible, Useful life | 8 years | |||||
Business combination recognized identifiable assets acquired and liabilities assumed current assets loans fair value | $ 217,800,000 | |||||
Business combination recognized identifiable assets acquired and liabilities assumed current assets loans gross contractual amounts receivable | 223,036,000 | |||||
Allowance for loan losses | 0 | |||||
Business combination, Recognized identifiable assets acquired and liabilities assumed, Deferred tax assets noncurrent | $ 741,000 | |||||
Woodlake Branch of Citizen's Business Bank [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Nov. 3, 2017 | |||||
Payments to acquire businesses, Gross | $ 0 | |||||
Business combination, Acquisition related costs | $ 0 | $ 2,000 | ||||
Goodwill | 625,000 | |||||
Business combination, Recognized identifiable assets acquired and liabilities assumed, Intangible assets, Other than goodwill, Total | $ 486,000 | |||||
Business acquisition, Intangible, Useful life | 8 years |
Business Combinations - Summary
Business Combinations - Summary of Consideration Paid And Amounts of Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands | Nov. 03, 2017 | Oct. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||
Goodwill | $ 27,357 | $ 27,357 | $ 27,357 | $ 8,268 | ||
Ojai Community Bancorp [Member] | ||||||
Consideration | ||||||
Cash | $ 809 | |||||
Equity Instruments | 37,370 | |||||
Fair value of total consideration transferred | 38,179 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||
Cash and cash equivalents | 37,108 | |||||
Securities | 5,492 | |||||
Loans | 217,800 | |||||
Premises and equipment | 873 | |||||
Real estate owned | 3,072 | |||||
Core deposit intangibles | 3,453 | |||||
Other assets | 10,479 | |||||
Total assets acquired | 278,277 | |||||
Deposits | 230,950 | |||||
Borrowed funds | 24,400 | |||||
Other liabilities | 3,212 | |||||
Total liabilities assumed | 258,562 | |||||
Total identifiable net assets | 19,715 | |||||
Goodwill | 18,464 | |||||
Fair value of total consideration transferred | $ 38,179 | |||||
Woodlake Branch of Citizen's Business Bank [Member] | ||||||
Consideration | ||||||
Cash | $ 0 | |||||
Equity Instruments | 0 | |||||
Fair value of total consideration transferred | 0 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||
Cash and cash equivalents | 25,266 | |||||
Loans | 7 | |||||
Premises and equipment | 469 | |||||
Core deposit intangibles | 486 | |||||
Total assets acquired | 26,228 | |||||
Deposits | 26,661 | |||||
Other liabilities | 192 | |||||
Total liabilities assumed | 26,853 | |||||
Total identifiable net assets | (625) | |||||
Goodwill | 625 | |||||
Fair value of total consideration transferred | $ 0 |
Business Combinations - Busines
Business Combinations - Business Acquisition, Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pro forma financial information | |||
Net interest income | $ 97,369 | $ 92,394 | $ 82,985 |
Net income | $ 35,961 | $ 29,677 | $ 19,416 |
Basic earnings per share | $ 2.35 | $ 1.94 | $ 1.37 |
Diluted earnings per share | $ 2.33 | $ 1.92 | $ 1.35 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Banks [Abstract] | |||
Investment, book balance | $ 4,104,000 | $ 5,905,000 | |
Investment, remaining commitments for additional capital contributions | 1,251,000 | 1,958,000 | |
Investment, amortization expense | 1,801,000 | 2,535,000 | $ 961,000 |
Investment, tax credit | 538,000 | 632,000 | |
Impairment Loss | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Non-interest income | ||||||||||||||
Returned item and overdraft fees | $ 6,854 | $ 6,574 | ||||||||||||
Other service charges on deposits | 5,888 | 5,865 | ||||||||||||
Debit card interchange income | 6,584 | 5,878 | ||||||||||||
Loss on limited partnerships | (2,079) | (2,561) | ||||||||||||
Dividends on equity investments | 789 | [1] | 961 | [1] | $ 761 | |||||||||
Unrealized gains recognized on equity investments | [1] | 232 | 1,183 | |||||||||||
Net gains on sale of securities | (198) | [1] | 2 | [1] | 500 | |||||||||
Other | [1] | 5,407 | 3,662 | |||||||||||
Total non-interest income | $ 5,847 | $ 5,869 | $ 5,855 | $ 5,906 | $ 5,279 | $ 5,723 | $ 5,429 | $ 5,133 | 23,477 | 21,564 | 21,779 | |||
Non-interest expense | ||||||||||||||
Salaries and employee benefits | 35,978 | [1] | 36,133 | [1] | 31,506 | |||||||||
Occupancy expense | 9,845 | [1] | 10,295 | [1] | 9,590 | |||||||||
Gain on sale of foreclosed assets | (107) | (1,423) | (56) | |||||||||||
Other | [1] | 24,862 | 25,019 | |||||||||||
Total non-interest expense | $ 17,982 | $ 17,088 | $ 17,656 | $ 17,852 | $ 17,036 | $ 17,807 | $ 17,294 | $ 17,887 | $ 70,578 | $ 70,024 | $ 65,441 | |||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_3
Parent Only Condensed Financial Statements - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and due from banks | $ 65,556 | $ 72,439 | ||
Other assets | 45,915 | 50,564 | ||
Total assets | 2,593,819 | 2,522,502 | ||
Liabilities: | ||||
Other liabilities | 35,504 | 25,912 | ||
Subordinated debentures, net | 34,945 | 34,767 | ||
Total liabilities | 2,284,534 | 2,249,478 | ||
Shareholders' equity | ||||
Common stock | 113,179 | 112,507 | ||
Retained earnings | 186,867 | 164,117 | ||
Accumulated other comprehensive income, net of taxes | 5,932 | (6,666) | ||
Total shareholders' equity | 309,285 | 273,024 | $ 255,942 | $ 205,878 |
Total liabilities and shareholder's equity | 2,593,819 | 2,522,502 | ||
Parent [Member] | ||||
ASSETS | ||||
Cash and due from banks | 4,818 | 2,338 | ||
Other assets | 21 | 20 | ||
Total assets | 345,433 | 308,995 | ||
Liabilities: | ||||
Other liabilities | 1,203 | 1,204 | ||
Subordinated debentures, net | 34,945 | 34,767 | ||
Total liabilities | 36,148 | 35,971 | ||
Shareholders' equity | ||||
Common stock | 116,486 | 115,573 | ||
Retained earnings | 186,867 | 164,117 | ||
Accumulated other comprehensive income, net of taxes | 5,932 | (6,666) | ||
Total shareholders' equity | 309,285 | 273,024 | ||
Total liabilities and shareholder's equity | 345,433 | 308,995 | ||
Parent [Member] | Trust Subsidiaries [Member] | ||||
ASSETS | ||||
Investments in bank subsidiary | 1,145 | 1,145 | ||
Parent [Member] | Subsidiaries [Member] | ||||
ASSETS | ||||
Investments in bank subsidiary | $ 339,449 | $ 305,492 |
Parent Only Condensed Financi_4
Parent Only Condensed Financial Statements - Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income: | |||||||||||||
Dividend from subsidiary | $ 16 | ||||||||||||
Gain on sale of securities | $ (198) | [1] | $ 2 | [1] | 500 | ||||||||
Expense | |||||||||||||
Salaries and employee benefits | 35,978 | [1] | 36,133 | [1] | 31,506 | ||||||||
Income before income taxes | $ 12,187 | $ 11,806 | $ 11,998 | $ 11,727 | $ 10,901 | $ 9,242 | $ 10,635 | $ 8,806 | 47,718 | 39,584 | 33,179 | ||
Income tax benefit | 2,902 | 2,854 | 3,169 | 2,832 | 2,997 | 2,171 | 2,643 | 2,096 | 11,757 | 9,907 | 13,640 | ||
Net income | $ 9,285 | $ 8,952 | $ 8,829 | $ 8,895 | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | 35,961 | 29,677 | 19,539 | ||
Parent [Member] | |||||||||||||
Income: | |||||||||||||
Dividend from subsidiary | 17,200 | 7,750 | 15,500 | ||||||||||
Gain on sale of securities | 0 | 0 | 918 | ||||||||||
Other operating income | 0 | 0 | 16 | ||||||||||
Total income | 17,200 | 7,750 | 16,434 | ||||||||||
Expense | |||||||||||||
Salaries and employee benefits | 582 | 516 | 481 | ||||||||||
Other expenses | 2,664 | 2,533 | 2,276 | ||||||||||
Total expenses | 3,246 | 3,049 | 2,757 | ||||||||||
Income before income taxes | 13,954 | 4,701 | 13,677 | ||||||||||
Income tax benefit | (1,138) | (1,150) | (1,602) | ||||||||||
Income before equity in undistributed income of subsidiary | 15,092 | 5,851 | 15,279 | ||||||||||
Equity in undistributed income of subsidiary | 20,869 | 23,826 | 4,260 | ||||||||||
Net income | $ 35,961 | $ 29,677 | $ 19,539 | ||||||||||
[1] | Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_5
Parent Only Condensed Financial Statements - Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 9,285 | $ 8,952 | $ 8,829 | $ 8,895 | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 35,961 | $ 29,677 | $ 19,539 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Loss (gain) on sales of securities | 198 | (2) | (500) | ||||||||
Increase (decrease) in other assets | (9,224) | (6,106) | 10,402 | ||||||||
(Decrease) increase in other liabilities | 9,662 | (5,420) | 4,100 | ||||||||
Net cash provided by operating activities | 46,737 | 30,446 | 40,679 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash used in investing activities | (53,290) | (188,188) | (51,673) | ||||||||
Cash flows from financing activities: | |||||||||||
Stock options exercised | 1,088 | 1,131 | 764 | ||||||||
Repurchases of common stock | (2,544) | 0 | 0 | ||||||||
Net cash provided by financing activities | 12,498 | 161,737 | (39,311) | ||||||||
Cash and cash equivalents, beginning of year | 74,132 | 70,137 | 74,132 | 70,137 | 120,442 | ||||||
Cash and cash equivalents, end of year | 80,077 | 74,132 | 80,077 | 74,132 | 70,137 | ||||||
Parent [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 35,961 | 29,677 | 19,539 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed net loss of subsidiary | (20,869) | (23,826) | (4,260) | ||||||||
Loss (gain) on sales of securities | 0 | 0 | (918) | ||||||||
Increase (decrease) in other assets | 178 | 183 | 170 | ||||||||
(Decrease) increase in other liabilities | (2) | 28 | (757) | ||||||||
Net cash provided by operating activities | 15,268 | 6,062 | 13,774 | ||||||||
Cash flows from investing activities: | |||||||||||
Sales of securities | 0 | 0 | 1,480 | ||||||||
Cash paid from acquisitions, net | 0 | (6) | (7,061) | ||||||||
Net cash used in investing activities | 0 | (6) | (5,581) | ||||||||
Cash flows from financing activities: | |||||||||||
Change in other borrowings | 0 | 0 | 0 | ||||||||
Stock options exercised | 1,088 | 1,131 | 764 | ||||||||
Repurchases of common stock | (2,544) | 0 | 0 | ||||||||
Dividends paid | (11,332) | (9,757) | (7,935) | ||||||||
Net cash provided by financing activities | (12,788) | (8,626) | (7,171) | ||||||||
(Decrease) increase in cash and due from banks | 2,480 | (2,570) | 1,022 | ||||||||
Cash and cash equivalents, beginning of year | $ 2,338 | $ 4,908 | 2,338 | 4,908 | 3,886 | ||||||
Cash and cash equivalents, end of year | $ 4,818 | $ 2,338 | $ 4,818 | $ 2,338 | $ 4,908 |
Condensed Quarterly Results o_3
Condensed Quarterly Results of Operations (Unaudited)) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||
Interest income | $ 27,775 | $ 27,901 | $ 27,788 | $ 27,483 | $ 27,042 | $ 26,236 | $ 24,883 | $ 23,476 | $ 110,947 | $ 101,638 | $ 80,924 |
Interest expense | 2,953 | 3,526 | 3,589 | 3,510 | 2,984 | 2,460 | 2,083 | 1,716 | 13,578 | 9,244 | 5,223 |
Net interest income | 24,822 | 24,375 | 24,199 | 23,973 | 24,058 | 23,776 | 22,800 | 21,760 | 97,369 | 92,394 | 75,701 |
Provision for loan and lease losses | 500 | 1,350 | 400 | 300 | 1,400 | 2,450 | 300 | 200 | 2,550 | 4,350 | (1,140) |
Non-interest income | 5,847 | 5,869 | 5,855 | 5,906 | 5,279 | 5,723 | 5,429 | 5,133 | 23,477 | 21,564 | 21,779 |
Non-interest expense | 17,982 | 17,088 | 17,656 | 17,852 | 17,036 | 17,807 | 17,294 | 17,887 | 70,578 | 70,024 | 65,441 |
Net income before taxes | 12,187 | 11,806 | 11,998 | 11,727 | 10,901 | 9,242 | 10,635 | 8,806 | 47,718 | 39,584 | 33,179 |
Provision for income taxes | 2,902 | 2,854 | 3,169 | 2,832 | 2,997 | 2,171 | 2,643 | 2,096 | 11,757 | 9,907 | 13,640 |
Net income | $ 9,285 | $ 8,952 | $ 8,829 | $ 8,895 | $ 7,904 | $ 7,071 | $ 7,992 | $ 6,710 | $ 35,961 | $ 29,677 | $ 19,539 |
Diluted earnings per share | $ 0.60 | $ 0.58 | $ 0.57 | $ 0.58 | $ 0.51 | $ 0.46 | $ 0.52 | $ 0.44 | $ 2.33 | $ 1.92 | $ 1.36 |
Cash dividend per share | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |