Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 11, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | Bank First Corp | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,155,856 | |
Entity Central Index Key | 0001746109 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Trading Symbol | BFC |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 27,659 | $ 33,817 |
Interest-bearing deposits | 556 | 19,242 |
Federal funds sold | 25,938 | 33,393 |
Cash and cash equivalents | 54,153 | 86,452 |
Securities held to maturity, at amortized cost ($46,988 and $44,803 fair value at March 31, 2020 and December 31, 2019, respectively) | 43,732 | 43,734 |
Securities available for sale, at fair value | 172,070 | 181,506 |
Loans held for sale | 2,659 | 587 |
Loans, net | 1,752,275 | 1,724,947 |
Premises and equipment, net | 36,615 | 35,286 |
Goodwill | 43,456 | 43,456 |
Other investments | 7,332 | 4,933 |
Cash value of life insurance | 25,105 | 24,945 |
Identifiable intangible assets, net | 9,333 | 9,666 |
Other real estate owned ("OREO") | 4,530 | 6,888 |
Investment in minority-owned subsidiaries | 41,267 | 40,287 |
Other assets | 7,793 | 7,481 |
TOTAL ASSETS | 2,200,320 | 2,210,168 |
Deposits: | ||
Interest-bearing deposits | 1,370,618 | 1,366,846 |
Noninterest-bearing deposits | 476,591 | 476,465 |
Total deposits | 1,847,209 | 1,843,311 |
Securities sold under repurchase agreements | 35,786 | 45,865 |
Notes payable | 48,792 | 49,790 |
Subordinated notes | 18,585 | 18,622 |
Other liabilities | 12,266 | 22,369 |
Total liabilities | 1,962,638 | 1,979,957 |
Stockholders' equity: | ||
Serial preferred stock - $0.01 par value Authorized - 5,000,000 shares | 0 | 0 |
Common stock - $0.01 par value Authorized - 20,000,000 shares Issued - 7,902,742 shares as of March 31, 2020 and December 31, 2019 Outstanding - 7,155,955 and 7,084,728 shares as of March 31, 2020 and December 31, 2019, respectively | 79 | 79 |
Additional paid-in capital | 62,672 | 63,085 |
Retained earnings | 195,329 | 189,494 |
Treasury stock, at cost - 746,787 and 818,014 shares as of March 31, 2020 and December 31, 2019, respectively | (23,913) | (24,941) |
Accumulated other comprehensive income | 3,515 | 2,494 |
Total stockholders' equity | 237,682 | 230,211 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,200,320 | $ 2,210,168 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Fair Value | $ 46,988 | $ 44,803 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 7,902,742 | 7,902,742 |
Common Stock, Shares, Outstanding | 7,155,955 | 7,084,728 |
Treasury Stock, Shares | 746,787 | 818,014 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Loans, including fees | $ 21,672 | $ 18,226 |
Securities: | ||
Taxable | 1,086 | 744 |
Tax-exempt | 425 | 426 |
Other | 113 | 327 |
Total interest income | 23,296 | 19,723 |
Interest expense: | ||
Deposits | 4,110 | 4,225 |
Securities sold under repurchase agreements | 103 | 130 |
Borrowed funds | 440 | 168 |
Total interest expense | 4,653 | 4,523 |
Net interest income | 18,643 | 15,200 |
Provision for loan losses | 975 | 625 |
Net interest income after provision for loan losses | 17,668 | 14,575 |
Noninterest income: | ||
Service charges | 916 | 679 |
Income from Ansay and Associates, LLC ("Ansay") | 891 | 875 |
Income from UFS, LLC ("UFS") | 897 | 594 |
Loan servicing income | 462 | 223 |
Net gain on sales of mortgage loans | 460 | 87 |
Net gain on sale of other investments | 234 | |
Noninterest income from strategic alliances | 17 | 19 |
Other | 254 | 829 |
Total noninterest income | 3,897 | 3,540 |
Noninterest expense: | ||
Salaries, commissions, and employee benefits | 6,452 | 5,310 |
Occupancy | 1,275 | 849 |
Data processing | 1,199 | 913 |
Postage, stationery, and supplies | 172 | 123 |
Net loss on sales and valuations of OREO | 976 | 36 |
Advertising | 55 | 74 |
Charitable contributions | 123 | 131 |
Outside service fees | 801 | 684 |
Amortization of intangibles | 334 | 161 |
Other | 1,354 | 1,255 |
Total noninterest expense | 12,741 | 9,536 |
Income before provision for income taxes | 8,824 | 8,579 |
Provision for income taxes | 1,558 | 1,992 |
Net Income | $ 7,266 | $ 6,587 |
Earnings per share - basic | $ 1.03 | $ 1 |
Earnings per share - diluted | 1.02 | 1 |
Dividends per share | $ 0.20 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Comprehensive Income | ||
Net Income | $ 7,266 | $ 6,587 |
Unrealized gains (losses) on available for sale securities: | ||
Unrealized holding gains arising during period | 1,588 | 2,357 |
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity | (10) | (11) |
Income tax expense | (557) | (493) |
Total other comprehensive income | 1,021 | 1,853 |
Comprehensive income | $ 8,287 | $ 8,440 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Serial Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2018 | $ 0 | $ 74 | $ 27,601 | $ 168,363 | $ (21,349) | $ (366) | $ 174,323 |
Net income | 0 | 0 | 0 | 6,587 | 0 | 0 | 6,587 |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 1,853 | 1,853 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,489) | 0 | (2,489) |
Issuance of treasury stock as deferred compensation payout | 0 | 0 | 14 | 0 | 43 | 0 | 57 |
Cash dividends | 0 | 0 | 0 | (1,306) | 0 | 0 | (1,306) |
Amortization of stock-based compensation | 0 | 0 | 152 | 0 | 0 | 0 | 152 |
Vesting of restricted stock awards | 0 | 0 | (462) | 0 | 462 | 0 | 0 |
Balance at Mar. 31, 2019 | 0 | 74 | 27,305 | 173,644 | (23,333) | 1,487 | 179,177 |
Balance at Dec. 31, 2019 | 0 | 79 | 63,085 | 189,494 | (24,941) | 2,494 | 230,211 |
Net income | 0 | 0 | 0 | 7,266 | 0 | 0 | 7,266 |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 1,021 | 1,021 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,968) | 0 | (2,968) |
Issuance of treasury stock as deferred compensation payout | 0 | 0 | 0 | 0 | 3,368 | 0 | 3,368 |
Cash dividends | 0 | 0 | 0 | (1,431) | 0 | 0 | (1,431) |
Amortization of stock-based compensation | 0 | 0 | 215 | 0 | 0 | 0 | 215 |
Vesting of restricted stock awards | 0 | 0 | (628) | 0 | 628 | 0 | 0 |
Balance at Mar. 31, 2020 | $ 0 | $ 79 | $ 62,672 | $ 195,329 | $ (23,913) | $ 3,515 | $ 237,682 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
Consolidated Statement of Stockholders' Equity | ||
Dividends Payable, Amount Per Share | $ 0.20 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 7,266 | $ 6,587 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 975 | 625 |
Depreciation and amortization of premises and equipment | 423 | 277 |
Amortization of intangibles | 334 | 161 |
Net amortization of securities | 118 | 94 |
Amortization of stock-based compensation | 215 | 152 |
Accretion of purchase accounting valuations | (705) | (1,024) |
Net change in deferred loan fees and costs | (45) | (99) |
Change in fair value of mortgage servicing rights ("MSR") and other investments | 186 | (536) |
Loss from sale and disposal of premises and equipment | 23 | |
Loss on sale of OREO and valuation allowance | 976 | 36 |
Proceeds from sales of mortgage loans | 31,371 | 7,382 |
Originations of mortgage loans held for sale | (33,226) | (7,977) |
Gain on sales of mortgage loans | (460) | (87) |
Realized gain on sale of other investments | (234) | |
Undistributed income of UFS joint venture | (897) | (594) |
Undistributed income of Ansay joint venture | (891) | (875) |
Net earnings on life insurance | (160) | (153) |
Increase in other assets | (869) | (366) |
Decrease in other liabilities | (6,725) | (4,786) |
Net cash used in operating activities | (2,114) | (1,394) |
Activity in securities available for sale and held to maturity: | ||
Maturities, prepayments, and calls | 23,541 | 1,411 |
Purchases | (12,643) | (3,015) |
Net increase in loans | (27,710) | (3,314) |
Dividends received from UFS | 435 | 284 |
Dividends received from Ansay | 373 | 319 |
Proceeds from sale of OREO | 1,468 | 402 |
Proceeds from sales of other investments | 984 | |
Net purchases of Federal Home Loan Bank ("FHLB") stock | (640) | |
Net purchases of Federal Reserve Bank ("FRB") stock | (1,702) | |
Proceeds from sale of premises and equipment | 25 | 0 |
Purchases of premises and equipment | (1,782) | (999) |
Net cash used in investing activities | (18,635) | (3,928) |
Cash flows from financing activities, net of effects of business combination: | ||
Net increase in deposits | 3,928 | 16,557 |
Net decrease in securities sold under repurchase agreements | (10,079) | (6,005) |
Proceeds from advances of borrowed funds | 73,000 | 0 |
Repayment of borrowed funds | (74,000) | 0 |
Dividends paid | (1,431) | (1,306) |
Repurchase of common stock | (2,968) | (2,489) |
Net cash provided by (used in) financing activities | (11,550) | 6,757 |
Net increase (decrease) in cash and cash equivalents | (32,299) | 1,435 |
Cash and cash equivalents at beginning of period | 86,452 | 107,743 |
Cash and cash equivalents at end of period | 54,153 | 109,178 |
Cash paid during the period for: | ||
Interest | 4,809 | 4,211 |
Supplemental schedule of noncash activities: | ||
Loans transferred to OREO | 91 | 726 |
MSR resulting from sale of loans | 243 | 78 |
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity recognized in other comprehensive income, net of tax | (8) | (9) |
Change in unrealized gains and losses on investment securities available for sale, net of tax | 1,029 | 1,862 |
Payment of deferred compensation through issuance of treasury stock | $ 3,368 | $ 57 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION Bank First Corporation (the “Company”) provides a variety of financial services to individual and corporate customers through its wholly-owned subsidiary, Bank First, N.A. (the “Bank”). The Bank operates as a full-service financial institution with a primary market area including, but not limited to, the counties in which the Bank’s branches are located. The Bank has twenty-three locations located in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca, Ozaukee, Monroe, Jefferson and Barron counties in Wisconsin. The Company and Bank are subject to the regulations of certain federal agencies and undergo periodic examinations by those regulatory authorities. These interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Quarterly Report on Form 10‑Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures required by GAAP have been omitted or abbreviated. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019 (“Annual Report”). The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for loan losses (“ALL”), valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, other-than-temporary impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the ALL, the determination and assessment of deferred tax assets and liabilities, and the valuation of loans acquired in acquisition transactions; therefore, these are critical accounting policies. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as previously disclosed in the Company’s Annual Report. Recent Accounting Developments Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU were issued to address concerns over the cost and complexity of the two-step goodwill impairment test and resulted in the removal of the second step of the test. The amendments require an entity to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance did not amend the optional qualitative assessment of goodwill impairment. This ASU is intended to reduce the cost and complexity of the two-step goodwill impairment test and is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for testing performed after January 1, 2017. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. Recently Issued Not Yet Effective Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Certain aspects of this ASU were updated in November 2018 by the issuance of ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. The main objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in the ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. During 2019 FASB issued ASU 2019-10 which delayed the effective date of ASU 2016-13 for smaller, publicly traded companies, until interim and annual periods beginning after December 15, 2022. This delay applies to the Company as it was classified as a “Smaller reporting company” as defined in Rule 12b-2 of the Exchange Act as of the date ASU 2019-10 was enacted. Management is currently evaluating the potential impact of this update, although the general expectation in the banking industry is that the implementation of this standard will result in higher required balances in the ALL. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2020 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 2 – ACQUISITIONS On July 12, 2019, the Company completed a merger with Partnership Community Bancshares, Inc. (“Partnership”), a bank holding company headquartered in Cedarburg, Wisconsin, pursuant to the Agreement and Plan of Bank Merger (“Merger Agreement”), dated as of January 22, 2019 and as amended on April 30, 2019, by and among the Company and Partnership, whereby Partnership merged with and into the Company, and Partnership Bank, Partnership’s wholly-owned banking subsidiary, merged with and into the Bank. Partnership’s principal activity was the ownership and operation of Partnership Bank, a state-chartered banking institution that operated four (4) branches in Wisconsin at the time of closing. The merger consideration totaled approximately $49.6 million. Pursuant to the terms of the Merger Agreement, Partnership shareholders had the option to receive either 0.34879 shares of the Company’s common stock or $17.3001 in cash for each outstanding share of Partnership common stock, and cash in lieu of any remaining fractional share. The stock versus cash elections by the Partnership shareholders were subject to final consideration being made up of approximately $14.3 million in cash and 534,731 shares of Company common stock, valued at approximately $35.3 million (based on a value of $66.03 per share on the closing date). For more information concerning this acquisition, see “Note 2 – Acquisition” in the Company’s audited consolidated financial statements included in the Company’s Annual Report. On November 20, 2019, the Company entered into an Agreement and Plan of Merger with Tomah Bancshares, Inc. (“Timberwood”), a Wisconsin Corporation, under which Timberwood will merge with and into the Company and Timberwood’s banking subsidiary, Timberwood Bank, will merge with and into the Bank. The transaction is expected to close on May 15, 2020. Merger consideration consists of 100% common stock of the Company, and will total roughly $32.6 million subject to the fair market valuation of the Company’s common stock on the date of closing. Based on results as of March 31, 2020, the combined company would have total assets of approximately $2.4 billion, loans of approximately $1.8 billion and deposits of approximately $2.0 billion. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 3 – EARNINGS PER SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. There were no anti-dilutive stock options for the three months ended March 31, 2020 or 2019. The following table presents the factors used in the earnings per share computations for the period indicated. Three Months Ended March 31, 2020 2019 Basic Net income available to common shareholders $ 7,266 $ 6,587 Less: Earnings allocated to participating securities (56) (52) Net income allocated to common shareholders $ 7,210 $ 6,535 Weighted average common shares outstanding including participating securities 7,083,520 6,574,362 Less: Participating securities (1) (54,830) (52,176) Average shares 7,028,690 6,522,186 Basic earnings per common shares $ 1.03 $ 1.00 Diluted Net income available to common shareholders $ 7,266 $ 6,587 Weighted average common shares outstanding for basic earnings per common share 7,028,690 6,522,186 Add: Dilutive effects of stock based compensation awards 99,556 54,148 Average shares and dilutive potential common shares 7,128,246 6,576,334 Diluted earnings per common share $ 1.02 $ 1.00 (1) Participating securities are restricted stock awards whereby the stock certificates have been issued, are included in outstanding shares, receive dividends and can be voted, but have not vested. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
SECURITIES | |
SECURITIES | NOTE 4 – SECURITIES The Company’s securities available for sale as of March 31, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2020 Obligations of U.S. Government sponsored agencies $ 13,431 $ 33 $ (63) $ 13,401 Obligations of states and political subdivisions 59,442 2,655 (36) 62,061 Mortgage-backed securities 52,418 1,847 (22) 54,243 Corporate notes 42,060 401 (96) 42,365 Total available for sale securities $ 167,351 $ 4,936 $ (217) $ 172,070 December 31, 2019 Obligations of U.S. Government sponsored agencies $ 12,218 $ — $ (158) $ 12,060 Obligations of states and political subdivisions 52,594 2,197 (20) 54,771 Mortgage-backed securities 50,770 988 (38) 51,720 Corporate notes 62,794 172 (11) 62,955 Total available for sale securities $ 178,376 $ 3,357 $ (227) $ 181,506 The Company’s securities held to maturity as of March 31, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2020 U.S. Treasury securities $ 33,525 $ 3,243 $ — $ 36,768 Obligations of states and political subdivisions 10,207 13 — 10,220 Total held to maturity securities $ 43,732 $ 3,256 $ — $ 46,988 December 31, 2019 U.S. Treasury securities $ 33,527 $ 1,076 $ (22) $ 34,581 Obligations of states and political subdivisions 10,207 15 — 10,222 Total held to maturity securities $ 43,734 $ 1,091 $ (22) $ 44,803 The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2020 - Available for Sale Obligations of U.S. Government sponsored agencies $ 11,076 $ (63) $ — $ — $ 11,076 $ (63) Obligations of states and political subdivisions 3,467 (36) — — 3,467 (36) Mortgage-backed securities 2,918 (17) 1,731 (5) 4,649 (22) Corporate notes 3,851 (96) — — 3,851 (96) Totals $ 21,312 $ (212) $ 1,731 $ (5) $ 23,043 $ (217) December 31, 2019 - Available for Sale Obligations of U.S. Government sponsored agencies $ 12,059 $ (158) $ — $ — $ 12,059 $ (158) Obligations of states and political subdivisions 5,636 (19) 999 (1) 6,635 (20) Mortgage-backed securities 4,038 (26) 2,187 (12) 6,225 (38) Corporate notes 3,925 (11) — — 3,925 (11) Totals $ 25,658 $ (214) $ 3,186 $ (13) $ 28,844 $ (227) December 31, 2019 - Held to Maturity U.S. Treasury securities $ 2,958 $ (22) $ — $ — $ 2,958 $ (22) As of March 31, 2020, the Company does not consider its securities with unrealized losses to be other-than-temporarily impaired, as the unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The Company has the intent and ability to hold its securities to maturity or until par is recovered. There were no other-than-temporary impairments charged to earnings during the three months ended March 31, 2020 or 2019. The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of March 31, 2020. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 26,344 $ 26,347 $ 4,134 $ 4,177 Due after one year through 5 years 21,833 22,298 13,470 14,137 Due after 5 years through ten years 12,963 13,509 23,219 25,765 Due after 10 years 53,793 55,673 2,909 2,909 Subtotal 114,933 117,827 43,732 46,988 Mortgage-backed securities 52,418 54,243 — — Total $ 167,351 $ 172,070 $ 43,732 $ 46,988 There were no sales of securities available for sale during the three months ended March 31, 2020 or 2019. |
LOANS, ALLOWANCE FOR LOAN LOSSE
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | 3 Months Ended |
Mar. 31, 2020 | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | NOTE 5 – LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY The following table presents total loans by portfolio segment and class of loan as of March 31, 2020 and December 31, 2019: March 31, December 31, 2020 2019 Commercial/industrial $ 313,448 $ 302,538 Commercial real estate - owner occupied 458,490 459,782 Commercial real estate - non-owner occupied 375,871 353,723 Construction and development 140,991 132,296 Residential 1‑4 family 442,375 448,605 Consumer 27,936 29,462 Other 6,588 10,440 Subtotals 1,765,699 1,736,846 ALL (12,967) (11,396) Loans, net of ALL 1,752,732 1,725,450 Deferred loan fees and costs (457) (503) Loans, net $ 1,752,275 $ 1,724,947 The ALL by loan type as of March 31, 2020 and 2019 is summarized as follows: Commercial Commercial Real Estate - Construction Commercial / Real Estate - Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Total ALL - January 1, 2020 $ 2,320 $ 4,587 $ 1,578 $ 548 $ 2,169 $ 141 $ 53 $ 11,396 Charge-offs (1) (77) — — — — (5) (83) Recoveries — 640 1 — 34 — 4 679 Provision 315 271 223 75 107 1 (17) 975 ALL - March 31, 2020 ALL ending balance individually evaluated for impairment 830 410 — — — — — 1,240 ALL ending balance collectively evaluated for impairment $ 1,804 $ 5,011 $ 1,802 $ 623 $ 2,310 $ 142 $ 35 $ 11,727 Loans outstanding - March 31, 2020 $ 313,448 $ 458,490 $ 375,871 $ 140,991 $ 442,375 $ 27,936 $ 6,588 $ 1,765,699 Loans ending balance individually evaluated for impairment 1,872 5,235 — — — — — 7,107 Loans ending balance collectively evaluated for impairment $ 311,576 $ 453,255 $ 375,871 $ 140,991 $ 442,375 $ 27,936 $ 6,588 $ 1,758,592 Commercial Commercial Real Estate - Construction Commercial / Real Estate – Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Total ALL - January 1, 2019 $ 3,021 $ 3,750 $ 2,100 $ 725 $ 2,472 $ 148 $ 32 $ 12,248 Charge-offs (586) (78) (54) — (8) (11) (5) (742) Recoveries — 1 — — 78 1 2 82 Provision (166) 1,755 (136) (329) (508) (3) 12 625 ALL - March 31, 2019 2,269 5,428 1,910 396 2,034 135 41 12,213 ALL ending balance individually evaluated for impairment — 2,058 — — — — — 2,058 ALL ending balance collectively evaluated for impairment $ 2,269 $ 3,370 $ 1,910 $ 396 $ 2,034 $ 135 $ 41 $ 10,155 Loans outstanding - March 31, 2019 $ 293,220 $ 412,126 $ 258,310 $ 67,537 $ 367,518 $ 27,242 $ 6,165 $ 1,432,118 Loans ending balance individually evaluated for impairment — 9,786 — — 179 — — 9,965 Loans ending balance collectively evaluated for impairment $ 293,220 $ 402,340 $ 258,310 $ 67,537 $ 367,339 $ 27,242 $ 6,165 $ 1,422,153 The Company’s past due loans as of March 31, 2020 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 1,536 $ 80 $ 1,887 $ 3,503 Commercial real estate - owner occupied 433 1,134 3,412 4,979 Commercial real estate - non-owner occupied 316 — 74 390 Construction and development 46 — — 46 Residential 1‑4 family 2,050 214 555 2,819 Consumer 142 1 32 175 Other — — — — $ 4,523 $ 1,429 $ 5,960 $ 11,912 The Company’s past due loans as of December 31, 2019 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 235 $ — $ 1,923 $ 2,158 Commercial real estate - owner occupied 1,124 — 2,513 3,637 Commercial real estate - non-owner occupied — — 75 75 Construction and development 768 11 — 779 Residential 1‑4 family 805 307 550 1,662 Consumer 70 36 32 138 Other — — — — $ 3,002 $ 354 $ 5,093 $ 8,449 The Company utilizes a numerical risk rating system for commercial relationships. All other types of relationships (ex: residential, consumer, other) are assigned a “Pass” rating, unless they have fallen 90 days past due or more, at which time they receive a rating of 7. The Company uses split ratings for government guaranties on loans. The portion of a loan that is supported by a government guaranty is included with other Pass credits. The determination of a commercial loan risk rating begins with completion of a matrix, which assigns scores based on the strength of the borrower’s debt service coverage, collateral coverage, balance sheet leverage, industry outlook, and customer concentration. A weighted average is taken of these individual scores to arrive at the overall rating. This rating is subject to adjustment by the loan officer based on facts and circumstances pertaining to the borrower. Risk ratings are subject to independent review. Commercial borrowers with ratings between 1 and 5 are considered Pass credits, with 1 being most acceptable and 5 being just above the minimum level of acceptance. Commercial borrowers rated 6 have potential weaknesses which may jeopardize repayment ability. Borrowers rated 7 have a well-defined weakness or weaknesses such as the inability to demonstrate significant cash flow for debt service based on analysis of the company’s financial information. These loans remain on accrual status provided full collection of principal and interest is reasonably expected. Otherwise they are deemed impaired and placed on nonaccrual status. Borrowers rated 8 are the same as 7 rated credits with one exception: collection or liquidation in full is not probable. The breakdown of loans by risk rating as of March 31, 2020 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 302,998 $ 6,001 $ 4,449 $ — $ 313,448 Commercial real estate - owner occupied 423,568 4,771 30,151 — 458,490 Commercial real estate - non-owner occupied 364,938 10,543 390 — 375,871 Construction and development 140,961 — 30 — 140,991 Residential 1‑4 family 440,481 254 1,640 — 442,375 Consumer 27,904 — 32 — 27,936 Other 6,588 — — — 6,588 $ 1,707,438 $ 21,569 $ 36,692 $ — $ 1,765,699 The breakdown of loans by risk rating as of December 31, 2019 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 290,180 $ 5,329 $ 7,029 $ — $ 302,538 Commercial real estate - owner occupied 422,336 5,603 31,843 — 459,782 Commercial real estate - non-owner occupied 344,278 8,774 671 — 353,723 Construction and development 132,266 — 30 — 132,296 Residential 1‑4 family 447,630 256 719 — 448,605 Consumer 29,430 — 32 — 29,462 Other 10,440 — — — 10,440 $ 1,676,560 $ 19,962 $ 40,324 $ — $ 1,736,846 The ALL represents management’s estimate of probable and inherent credit losses in the loan portfolio. Estimating the amount of the ALL requires the exercise of significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of other qualitative factors such as current economic trends and conditions, all of which may be susceptible to significant change. The loan portfolio also represents the largest asset on the consolidated balance sheets. Loan losses are charged off against the ALL, while recoveries of amounts previously charged off are credited to the ALL. A provision for loan losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. The ALL consists of specific reserves for certain individually evaluated impaired loans and general reserves for collectively evaluated non-impaired loans. Specific reserves reflect estimated losses on impaired loans from management’s analyses developed through specific credit allocations. The specific reserves are based on regular analyses of impaired, non-homogenous loans greater than $250,000. These analyses involve a high degree of judgment in estimating the amount of loss associated with specific loans, including estimating the amount and timing of future cash flows and collateral values. The general reserve is based in part on the Bank’s historical loss experience which is updated quarterly. The general reserve portion of the ALL also includes consideration of certain qualitative factors such as 1) changes in lending policies and/or underwriting practices, 2) national and local economic conditions, 3) changes in portfolio volume and nature, 4) experience, ability and depth of lending management and other relevant staff, 5) levels of and trends in past-due and nonaccrual loans and quality, 6) changes in loan review and oversight, 7) impact and effects of concentrations and 8) other issues deemed relevant. There are many factors affecting ALL; some are quantitative while others require qualitative judgment. The process for determining the ALL (which management believes adequately considers potential factors which might possibly result in credit losses) includes subjective elements and, therefore, may be susceptible to significant change. To the extent actual outcomes differ from management estimates, additional provisions for loan losses could be required that could adversely affect the Company’s earnings or financial position in future periods. Allocations of the ALL may be made for specific loans but the entire ALL is available for any loan that, in management’s judgment, should be charged off or for which an actual loss is realized. As an integral part of their examination process, various regulatory agencies review the ALL as well. Such agencies may require that changes in the ALL be recognized when such regulators’ credit evaluations differ from those of management based on information available to the regulators at the time of their examinations. A summary of impaired loans individually evaluated as of March 31, 2020 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non – Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Unallocated Total With an allowance recorded: Recorded investment $ 1,872 $ 3,591 $ — $ — $ — $ — $ — $ — $ 5,463 Unpaid principal balance 1,872 3,591 — — — — — — 5,463 Related allowance 830 410 — — — — — — 1,240 With no related allowance recorded: Recorded investment $ — $ 1,644 $ — $ — $ — $ — $ — $ — $ 1,644 Unpaid principal balance — 1,644 — — — — — — 1,644 Related allowance — — — — — — — — — Total: Recorded investment $ 1,872 $ 5,235 $ — $ — $ — $ — $ — $ — $ 7,107 Unpaid principal balance 1,872 5,235 — — — — — — 7,107 Related allowance 830 410 — — — — — — 1,240 Average recorded investment $ 1,875 $ 4,567 $ — $ — $ — $ — $ — $ — $ 6,442 A summary of impaired loans individually evaluated as of December 31, 2019 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non – Owner and Residential Industrial Occupied Occupied Development 1‑4 Family Consumer Other Unallocated Total With an allowance recorded: Recorded investment $ 1,878 $ 960 $ — $ — $ — $ — $ — $ — $ 2,838 Unpaid principal balance 1,878 960 — — — — — — 2,838 Related allowance 760 80 — — — — — — 840 With no related allowance recorded: Recorded investment $ — $ 2,938 $ — $ — $ — $ — $ — $ — $ 2,938 Unpaid principal balance — 2,938 — — — — — — 2,938 Related allowance — — — — — — — — — Total: Recorded investment $ 1,878 $ 3,898 $ — $ — $ — $ — $ — $ — $ 5,776 Unpaid principal balance 1,878 3,898 — — — — — — 5,776 Related allowance 760 80 — — — — — — 840 Average recorded investment $ 3,773 $ 5,847 $ — $ — $ 351 $ — $ — $ — $ 9,971 Interest recognized while these loans were impaired is considered immaterial to the consolidated financial statements for the three months ended March 31, 2020 and 2019. The following table presents loans acquired with deteriorated credit quality as of March 31, 2020 and December 31, 2019. No loans in this table had a related allowance at either date, and therefore, the below disclosures were not expanded to include loans with and without a related allowance. March 31, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Commercial & Industrial $ 144 $ 165 $ 191 $ 212 Commercial real estate - owner occupied 171 402 518 785 Commercial real estate - non-owner occupied 358 391 — — Construction and development 92 102 213 237 Residential 1‑4 family 894 1,022 901 1,031 Consumer — — — — Other — — — — $ 1,659 $ 2,082 $ 1,823 $ 2,265 Due to the nature of these loan relationships, prepayment expectations have not been considered in the determination of future cash flows. Management regularly monitors these loan relationships, and if information becomes available that indicates expected cash flows will differ from initial expectations, it may necessitate reclassification between accretable and non-accretable components of the original discount calculation. The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality for the three months ended March 31, 2020, and year ended December 31, 2019: March 31, 2020 December 31, 2019 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 222 $ 220 $ 318 $ 745 Acquired balance, net — — 44 333 Reclassifications between accretable and non-accretable 5 (5) 858 (858) Accretion to loan interest income (19) — (998) — Balance at end of period $ 208 $ 215 $ 222 $ 220 A troubled debt restructuring (TDR) includes a loan modification where a borrower is experiencing financial difficulty and we grant a concession to that borrower that we would not otherwise consider except for the borrower’s financial difficulties. A TDR may be either on accrual or nonaccrual status based upon the performance of the borrower and management’s assessment of collectability. If a TDR is placed on nonaccrual status, it remains there until a sufficient period of performance under the restructured terms has occurred at which time it is returned to accrual status, generally six months. As of March 31, 2020 and December 31, 2019 the Company had specific reserves of $-0- and $80,000 for TDRs, respectively, and none of them have subsequently defaulted. The following table presents the TDRs during the three months ended March 31, 2020. There were no TDRs during the same period in 2019. Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commerical Real Estate 1 $ 115 $ 115 |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2020 | |
MORTGAGE SERVICING RIGHTS | |
MORTGAGE SERVICING RIGHTS | NOTE 6 – MORTGAGE SERVICING RIGHTS Loans serviced for others are not included in the accompanying consolidated balance sheets. MSRs are recognized as separate assets when loans sold in the secondary market are sold with servicing retained. The Company utilizes a third-party consulting firm to determine an accurate assessment of the MSRs fair value. The third-party firm collects relevant data points from numerous sources. Some of these data points relate directly to the pricing level or relative value of the mortgage servicing while other data points relate to the assumptions used to derive fair value. In addition, the valuation evaluates specific collateral types, and current and historical performance of the collateral in question. The valuation process focuses on the non-distressed secondary servicing market, common industry practices and current regulatory standards. The primary determinants of the fair value of MSRs are servicing fee percentage, ancillary income, expected loan life or prepayment speeds, discount rates, costs to service, delinquency rates, foreclosure losses and recourse obligations. The valuation data also contains interest rate shock analyses for monitoring fair value changes in differing interest rate environments. Following is an analysis of activity in the MSR asset: Three Months Ended Year Ended March 31, 2020 December 31, 2019 Fair value at beginning of period $ 4,287 $ 3,085 MSR asset acquired — 1,859 Servicing asset additions 243 740 Loan payments and payoffs (272) (821) Changes in valuation inputs and assumptions used in the valuation model 29 (576) Amount recognized through earnings — (657) Fair value at end of period $ 4,287 $ 4,287 Unpaid principal balance of loans serviced for others (in thousands) $ 568,584 $ 554,374 Mortgage servicing rights as a percent of loans serviced for others 0.75 0.77 The primary economic assumptions utilized by the Company in measuring the value of MSRs were constant prepayment speeds of 14.3 and 12.1 months as of March 31, 2020 and December 31, 2019, respectively, and discount rates of 9.8%and 10% as of each period end. |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2020 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE 7 – NOTES PAYABLE March 31, December 31, Maturity Rate 2020 2019 Fixed rate, fixed term 01/27/2020 1.42 % $ — $ 1,000 Fixed rate, fixed term 11/02/2020 1.28 % 400 400 Fixed rate, fixed term 01/22/2021 1.67 % 2,000 2,000 Fixed rate, fixed term 01/25/2021 2.37 % 5,000 5,000 Fixed rate, fixed term 01/27/2021 1.60 % 1,000 1,000 Fixed rate, fixed term 11/03/2021 1.46 % 400 400 Fixed rate, fixed term 08/08/2022 1.76 % 10,000 10,000 Fixed rate, fixed term 08/08/2023 1.74 % 10,000 10,000 Fixed rate, fixed term 08/08/2024 1.75 % 10,000 10,000 $ 38,800 $ 39,800 From time to time the Company utilizes FHLB advances to fund liquidity. At March 31, 2020 and December, 31, 2019, the Company had outstanding balances borrowed from the FHLB of$38.8 million and $39.8 million, respectively. The advances, rate, and maturities of FHLB advances were as follows: Future maturities of borrowings were as follows: March 31, December 31, 2020 2019 1 year or less $ 8,400 $ 1,400 1 to 2 years 400 8,400 2 to 3 years 10,000 10,000 3 to 4 years 10,000 10,000 4 to 5 years 10,000 10,000 $ 38,800 $ 39,800 The Company maintains a $5.0 million line of credit with a commercial bank. At March 31, 2020 and December 31, 2019 the Company had outstanding balances on this note of $5.0 million.The note requires monthly payments of interest at a variable rate, and is due in full on May 25, 2020. The Company maintains a $5.0 million line of credit with another commercial bank. At March 31, 2020 and December 31, 2019 the Company had outstanding balances on this note of $5.0 million.The note requires monthly payments of interest at a variable rate, and is due in full on May 19, 2020. |
SUBORDINATED NOTES
SUBORDINATED NOTES | 3 Months Ended |
Mar. 31, 2020 | |
SUBORDINATED NOTES | |
SUBORDINATED NOTES | NOTE 8 – SUBORDINATED NOTES During September 2017, the Company entered into subordinated note agreements with three separate commercial banks. The Company had outstanding balances of $11.5 million under these agreements as of March 31, 2020 and December 31, 2019. These notes were all issued with 10‑year maturities, carry interest at a variable rate payable quarterly, are callable on or after the sixth anniversary of the issuance dates, and qualify for Tier 2 capital for regulatory purposes. As a part of the Partnership acquisition, further detailed in Note 2, the Company assumed a subordinated note agreement with outstanding balance of $7.0 million, and a fair market value adjustment of $0.2 million ($0.1 million as of March 31, 2020 and December 31, 2019). The total amount outstanding was $7.1 million at March 31, 2020 and December 31, 2019. The note matures on October 1, 2025, requires quarterly interest-only payments at a rate of 7.1% prior to maturity, and can be prepaid without penalty after October 1, 2020. |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended |
Mar. 31, 2020 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 9 – REGULATORY MATTERS Banks and certain bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. 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 judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law in May 2018 raised the threshold for those bank holding companies subject to the Federal Reserve’s Small Bank Holding Company Policy Statement to $3 billion. As a result, as of the effective date of that change in 2018, the Company was no longer required to comply with the risk-based capital rules applicable to the Bank. The Federal Reserve may, however, require smaller bank holding companies to maintain certain minimum capital levels, depending upon general economic conditions and a bank holding company’s particular condition, risk profile and growth plans. Under regulatory guidance for non-advanced approaches institutions, the Bank is required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of March 31, 2020 and December 31, 2019, the Bank met all capital adequacy requirements to which they are subject. Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer was fully phased in January 1, 2019 at 2.50%. Actual and required capital amounts and ratios are presented below at period-end: To Be Well Minimum Capital Capitalized Under For Capital Adeqaucy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total capital (to risk-weighted assets): Corporation $ 218,198 10.76 % NA NA NA NA NA NA Bank $ 225,087 11.11 % $ 162,142 8.00 % $ 212,811 10.50 % $ 202,678 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 186,646 9.20 % NA NA NA NA NA NA Bank $ 212,120 10.47 % $ 121,607 6.00 % $ 172,276 8.50 % $ 162,142 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 186,646 9.20 % NA NA NA NA NA NA Bank $ 212,120 10.47 % $ 91,205 4.50 % $ 141,874 7.00 % $ 131,740 6.50 % Tier 1 capital (to average assets): Corporation $ 186,646 8.68 % NA NA NA NA NA NA Bank $ 212,120 9.91 % $ 85,606 4.00 % $ 85,606 4.00 % $ 107,008 5.00 % December 31, 2019 Total capital (to risk-weighted assets): Corporation $ 208,900 10.35 % NA NA NA NA NA NA Bank $ 215,347 10.69 % $ 161,163 8.00 % $ 211,527 10.50 % $ 201,454 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 120,872 6.00 % $ 171,236 8.50 % $ 161,163 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 90,654 4.50 % $ 141,018 7.00 % $ 130,945 6.50 % Tier 1 capital (to average assets): Corporation $ 178,882 8.46 % NA NA NA NA NA NA Bank $ 203,951 9.67 % $ 84,390 4.00 % 84,390 4.00 % $ 105,487 5.00 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS AND CONTINGENCIES The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Rate-lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements and for fixed rate commitments also considers the difference between current levels of interest rates and committed rates. The notional amount of rate-lock commitments at March 31, 2020 and December 31, 2019 was approximately $68.8 million and $14.8 million, respectively. The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual or notional amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding: Notional Amount March 31, 2020 December 31, 2019 Commitments to extend credit: Fixed $ 44,700 $ 49,741 Variable 341,993 333,468 Credit card arrangements 9,641 11,148 Letters of credit 17,186 17,121 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 11 – FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy 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) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Information regarding the fair value of assets measured at fair value on a recurring basis is as follows: Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2020 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 13,401 $ — $ 13,401 $ — Obligations of states and political subdivisions 62,061 — 62,061 — Mortgage-backed securities 54,243 — 54,243 — Corporate notes 42,365 — 42,365 — Mortgage servicing rights 4,287 — 4,287 — December 31, 2019 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 12,060 $ — $ 12,060 $ — Obligations of states and political subdivisions 54,771 — 54,771 — Mortgage-backed securities 51,720 — 51,720 — Corporate notes 62,955 — 62,955 — Mortgage servicing rights 4,287 — 4,287 — Fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) are as follows: March 31, 2020 December 31, 2019 Total securities at beginning of period $ — $ 400 Included in earnings — — Included in other comprehensive income — — Purchases, issuance, and settlements — (400) Transfer in and/or out of level 3 — — Total securities at end of period $ — $ — Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows: Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2020 OREO $ 4,530 $ — $ — $ 4,530 Impaired Loans, net of impairment reserve 7,551 — — 7,551 $ 12,081 $ — $ — $ 12,081 December 31, 2019 OREO $ 6,888 $ — $ — $ 6,888 Impaired Loans, net of impairment reserve 6,847 — — 6,847 $ 13,735 $ — $ — $ 13,735 The following is a description of the valuation methodologies used by the Company for the items noted in the table above, including the general classification of such instruments in the fair value hierarchy. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets: Weighted Valuation Unobservable Range of Average Technique Inputs Discounts Discount As of March 31, 2020 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 56% 32.3 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% 5.3 % As of December 31, 2019 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 61% 33.5 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% 6.1 % The following methods and assumptions were used by the Company to estimate fair value of financial instruments. Cash and cash equivalents — Fair value approximates the carrying amount. Securities — The fair value measurement is obtained from an independent pricing service and is based on recent sales of similar securities and other observable market data. Loans held for sale - Fair value is based on commitments on hand from investors or prevailing market prices. Loans — Fair value of variable rate loans that reprice frequently are based on carrying value. Fair value of other loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings. Fair value of impaired and other nonperforming loans are estimated using discounted expected future cash flows or the fair value of the underlying collateral, if applicable. Other investments — The carrying amount reported in the consolidated balance sheets for other investments approximates the fair value of these assets. Mortgage servicing rights — Fair values were determined using the present value of future cash flows. Cash value of life insurance — The carrying amount approximates its fair value. Deposits — Fair value of deposits with no stated maturity, such as demand deposits, savings, and money market accounts, by definition, is the amount payable on demand on the reporting date. Fair value of fixed-rate time deposits is estimated using discounted cash flows applying interest rates currently offered on similar time deposits. Securities sold under repurchase agreements — The fair value of securities sold under repurchase agreements with variable rates or due on demand is the amount payable at the reporting date. The fair value of securities sold under repurchase agreements with fixed terms is estimated using discounted cash flows with discount rates at interest rates currently offered for securities sold under repurchase agreements of similar remaining values. Notes payable and subordinated notes — Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Fair value of borrowings is estimated by discounting future cash flows using the current rates at which similar borrowings would be made. Fair value of borrowed funds due on demand is the amount payable at the reporting date. Off-balance-sheet instruments — Fair value is based on quoted market prices of similar financial instruments where available. If a quoted market price is not available, fair value is based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the company’s credit standing. Since this amount is immaterial, no amounts for fair value are presented. The carrying value and estimated fair value of financial instruments at March 31, 2020 and December 31, 2019 follows: Fair Value Carrying March 31, 2020 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 54,153 $ 54,153 $ — $ — $ 54,153 Securities held to maturity 43,732 — 46,988 — 46,988 Securities available for sale 172,070 — 172,070 — 172,070 Loans held for sale 2,659 — — 2,659 2,659 Loans, net 1,752,275 — — 1,774,641 1,774,641 Other investments, at cost 7,332 — — 7,332 7,332 Mortgage servicing rights 4,287 — 4,287 — 4,287 Cash surrender value of life insurance 25,105 25,105 — — 25,105 Deposits $ 1,847,209 $ — $ — $ 1,821,582 $ 1,821,582 Securities sold under repurchase agreements 35,786 — 35,786 — 35,786 Notes payable 48,792 — 48,792 — 48,792 Subordinated notes 18,585 — 18,585 — 18,585 Fair Value Carrying December 31, 2019 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 86,452 $ 86,452 $ — $ — $ 86,452 Securities held to maturity 43,734 — 44,803 — 44,803 Securities available for sale 181,506 — 181,506 — 181,506 Loans held for sale 587 — — 587 587 Loans, net 1,724,947 — — 1,723,542 1,723,542 Other investments, at cost 4,933 — — 4,933 4,933 Mortgage servicing rights 4,287 — 4,287 — 4,287 Cash surrender value of life insurance 24,945 24,945 — — 24,945 Financial liabilities: Deposits $ 1,843,311 $ — $ — $ 1,783,638 $ 1,783,638 Securities sold under repurchase agreements 45,865 — 45,865 — 45,865 Notes payable 49,790 — 49,790 — 49,790 Subordinated notes 18,622 — 18,622 — 18,622 The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the consolidated balance sheet. Significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 12 – STOCK BASED COMPENSATION The Company has made restricted share grants pursuant to the Bank First Corporation 2011 Equity Plan. The purpose of the Plan is to provide financial incentives for selected employees and for the non-employee Directors of the Company, thereby promoting the long-term growth and financial success of the Company. The Company stock to be offered under the Plan pursuant to Stock Appreciation Rights, performance unit awards, and restricted stock and unrestricted Company stock awards must be Company stock previously issued and outstanding and reacquired by the Company. The number of shares of Company stock that may be issued pursuant to awards under the Plan shall not exceed, in the aggregate, 659,250. As of March 31, 2020 and December 31, 2019, 202,569 and 177,462 shares of Company stock have been awarded under the Plan, respectively. Compensation expense for restricted stock is based on the fair value of the awards of Bank First Corporation common stock at the time of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting periods. For the three months ended March 31, 2020 and 2019, compensation expense of $0.2 million was recognized related to restricted stock awards. As of March 31, 2020, there was $2.9 million of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted average period of 3.24 years. The aggregate grant date fair value of restricted stock awards that vested during the three months ended March 31, 2020, was approximately $0.6 million. For the three months ended March 31, 2020 For the three months ended March 31, 2019 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 50,676 $ 43.03 51,776 $ 34.27 Granted 25,107 61.49 17,015 56.62 Vested (16,800) 37.38 (16,039) 28.82 Forfeited or cancelled — — (176) 22.90 Outstanding at end of year 58,983 $ 52.50 52,576 $ 43.31 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
LEASES | NOTE 13 – LEASES Accounting standards require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements, establishing a right-of-use (“ROU”) model that requires a lessee to recognize a ROU lease asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessee Leases The Company’s lessee leases are operating leases, and consist of leased real estate for branches. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Rent escalations are generally specified by a payment schedule, or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. Accounting standards require the use of the lease interest rate; however, this rate is typically not known. As an alternative, the use of an entity’s fully secured incremental borrowing rate is permitted. The Company is electing to utilize the Wall Street Journal Prime Rate on the date of lease commencement. Three-month period ended March 31, 2020 March 31, 2019 Amortization of ROU Assets - Operating Leases $ 10 $ 16 Interest on Lease Liabilities - Operating Leases 23 16 Operating Lease Cost (Cost resulting from lease payments) 33 32 ROU Assets - Operating Leases at beginning of period 1,699 — New ROU Assets - Operating Leases — 1,744 ROU Assets - Operating Leases at March 31, 1,689 1,744 Weighted Average Lease Term (Years) - Operating Leases 31.54 31.68 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of March 31, 2020 is as follows: March 31, 2020 Operating lease payments due: Within one year $ 136 After one but within two years 136 After two but within three years 103 After three but within four years 86 After four years but within five years 86 After five years 3,389 Total undiscounted cash flows 3,936 Discount on cash flows (2,247) Total operating lease liabilities $ 1,689 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 14 – SUBSEQUENT EVENTS COVID-19 In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. In late March in response to the COVID-19 pandemic, the government of Wisconsin and of most other states took preventative or protective actions, such as imposing restrictions on travel and business operations, advising or requiring individuals to limit or forego their time outside of their homes, and ordering temporary closures of businesses that have been deemed to be non-essential. While banks such as Bank First have been designated an essential business, which allows us to continue to serve our customers, we serve many customers that have been deemed, or who are employed by businesses that have been deemed, to be non-essential. Many of our customers that have been categorized to date as essential businesses, or who are employed by businesses that have been categorized as essential businesses, have also been adversely affected by the COVID-19 pandemic. The impact of the COVID-19 pandemic on the economy continues to evolve. The COVID-19 pandemic and its associated impacts on trade, travel, unemployment, consumer spending, and other economic activities has resulted in less economic activity and could have an adverse effect on our business, financial condition and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and our customers. Our business, financial condition and results of operations generally rely upon the ability of our borrowers to repay their loans, the value of collateral underlying our secured loans, and demand for loans and other products and services we offer, which are highly dependent on the business environment in our primary markets. We have actively reached out to our customers to provide guidance, direction and assistance in these uncertain times. We have also extended credit to our customers related to the Payroll Protection Program (“PPP”). As of May 11, 2020, we have secured funding of approximately 1,635 loans totaling approximately $266.8 million. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of Earnings Per Common Share | The following table presents the factors used in the earnings per share computations for the period indicated. Three Months Ended March 31, 2020 2019 Basic Net income available to common shareholders $ 7,266 $ 6,587 Less: Earnings allocated to participating securities (56) (52) Net income allocated to common shareholders $ 7,210 $ 6,535 Weighted average common shares outstanding including participating securities 7,083,520 6,574,362 Less: Participating securities (1) (54,830) (52,176) Average shares 7,028,690 6,522,186 Basic earnings per common shares $ 1.03 $ 1.00 Diluted Net income available to common shareholders $ 7,266 $ 6,587 Weighted average common shares outstanding for basic earnings per common share 7,028,690 6,522,186 Add: Dilutive effects of stock based compensation awards 99,556 54,148 Average shares and dilutive potential common shares 7,128,246 6,576,334 Diluted earnings per common share $ 1.02 $ 1.00 (1) Participating securities are restricted stock awards whereby the stock certificates have been issued, are included in outstanding shares, receive dividends and can be voted, but have not vested. |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SECURITIES | |
Schedule of securities available for sale | The Company’s securities available for sale as of March 31, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2020 Obligations of U.S. Government sponsored agencies $ 13,431 $ 33 $ (63) $ 13,401 Obligations of states and political subdivisions 59,442 2,655 (36) 62,061 Mortgage-backed securities 52,418 1,847 (22) 54,243 Corporate notes 42,060 401 (96) 42,365 Total available for sale securities $ 167,351 $ 4,936 $ (217) $ 172,070 December 31, 2019 Obligations of U.S. Government sponsored agencies $ 12,218 $ — $ (158) $ 12,060 Obligations of states and political subdivisions 52,594 2,197 (20) 54,771 Mortgage-backed securities 50,770 988 (38) 51,720 Corporate notes 62,794 172 (11) 62,955 Total available for sale securities $ 178,376 $ 3,357 $ (227) $ 181,506 |
Schedule of securities held to maturity | The Company’s securities held to maturity as of March 31, 2020 and December 31, 2019 is summarized as follows: Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2020 U.S. Treasury securities $ 33,525 $ 3,243 $ — $ 36,768 Obligations of states and political subdivisions 10,207 13 — 10,220 Total held to maturity securities $ 43,732 $ 3,256 $ — $ 46,988 December 31, 2019 U.S. Treasury securities $ 33,527 $ 1,076 $ (22) $ 34,581 Obligations of states and political subdivisions 10,207 15 — 10,222 Total held to maturity securities $ 43,734 $ 1,091 $ (22) $ 44,803 |
Schedule of fair value and gross unrealized lossess of securities | The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2020 - Available for Sale Obligations of U.S. Government sponsored agencies $ 11,076 $ (63) $ — $ — $ 11,076 $ (63) Obligations of states and political subdivisions 3,467 (36) — — 3,467 (36) Mortgage-backed securities 2,918 (17) 1,731 (5) 4,649 (22) Corporate notes 3,851 (96) — — 3,851 (96) Totals $ 21,312 $ (212) $ 1,731 $ (5) $ 23,043 $ (217) December 31, 2019 - Available for Sale Obligations of U.S. Government sponsored agencies $ 12,059 $ (158) $ — $ — $ 12,059 $ (158) Obligations of states and political subdivisions 5,636 (19) 999 (1) 6,635 (20) Mortgage-backed securities 4,038 (26) 2,187 (12) 6,225 (38) Corporate notes 3,925 (11) — — 3,925 (11) Totals $ 25,658 $ (214) $ 3,186 $ (13) $ 28,844 $ (227) December 31, 2019 - Held to Maturity U.S. Treasury securities $ 2,958 $ (22) $ — $ — $ 2,958 $ (22) |
Schedule of amortized cost and estimated fair value of securities | The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of March 31, 2020. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 26,344 $ 26,347 $ 4,134 $ 4,177 Due after one year through 5 years 21,833 22,298 13,470 14,137 Due after 5 years through ten years 12,963 13,509 23,219 25,765 Due after 10 years 53,793 55,673 2,909 2,909 Subtotal 114,933 117,827 43,732 46,988 Mortgage-backed securities 52,418 54,243 — — Total $ 167,351 $ 172,070 $ 43,732 $ 46,988 |
LOANS, ALLOWANCE FOR LOAN LOS_2
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |
Schedule of total loans by portfolio segment and class of loan | The following table presents total loans by portfolio segment and class of loan as of March 31, 2020 and December 31, 2019: March 31, December 31, 2020 2019 Commercial/industrial $ 313,448 $ 302,538 Commercial real estate - owner occupied 458,490 459,782 Commercial real estate - non-owner occupied 375,871 353,723 Construction and development 140,991 132,296 Residential 1‑4 family 442,375 448,605 Consumer 27,936 29,462 Other 6,588 10,440 Subtotals 1,765,699 1,736,846 ALL (12,967) (11,396) Loans, net of ALL 1,752,732 1,725,450 Deferred loan fees and costs (457) (503) Loans, net $ 1,752,275 $ 1,724,947 |
Schedule of ALL by loan type | The ALL by loan type as of March 31, 2020 and 2019 is summarized as follows: Commercial Commercial Real Estate - Construction Commercial / Real Estate - Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Total ALL - January 1, 2020 $ 2,320 $ 4,587 $ 1,578 $ 548 $ 2,169 $ 141 $ 53 $ 11,396 Charge-offs (1) (77) — — — — (5) (83) Recoveries — 640 1 — 34 — 4 679 Provision 315 271 223 75 107 1 (17) 975 ALL - March 31, 2020 ALL ending balance individually evaluated for impairment 830 410 — — — — — 1,240 ALL ending balance collectively evaluated for impairment $ 1,804 $ 5,011 $ 1,802 $ 623 $ 2,310 $ 142 $ 35 $ 11,727 Loans outstanding - March 31, 2020 $ 313,448 $ 458,490 $ 375,871 $ 140,991 $ 442,375 $ 27,936 $ 6,588 $ 1,765,699 Loans ending balance individually evaluated for impairment 1,872 5,235 — — — — — 7,107 Loans ending balance collectively evaluated for impairment $ 311,576 $ 453,255 $ 375,871 $ 140,991 $ 442,375 $ 27,936 $ 6,588 $ 1,758,592 Commercial Commercial Real Estate - Construction Commercial / Real Estate – Non – Owner and Residential Industrial Owner Occupied Occupied Development 1‑4 Family Consumer Other Total ALL - January 1, 2019 $ 3,021 $ 3,750 $ 2,100 $ 725 $ 2,472 $ 148 $ 32 $ 12,248 Charge-offs (586) (78) (54) — (8) (11) (5) (742) Recoveries — 1 — — 78 1 2 82 Provision (166) 1,755 (136) (329) (508) (3) 12 625 ALL - March 31, 2019 2,269 5,428 1,910 396 2,034 135 41 12,213 ALL ending balance individually evaluated for impairment — 2,058 — — — — — 2,058 ALL ending balance collectively evaluated for impairment $ 2,269 $ 3,370 $ 1,910 $ 396 $ 2,034 $ 135 $ 41 $ 10,155 Loans outstanding - March 31, 2019 $ 293,220 $ 412,126 $ 258,310 $ 67,537 $ 367,518 $ 27,242 $ 6,165 $ 1,432,118 Loans ending balance individually evaluated for impairment — 9,786 — — 179 — — 9,965 Loans ending balance collectively evaluated for impairment $ 293,220 $ 402,340 $ 258,310 $ 67,537 $ 367,339 $ 27,242 $ 6,165 $ 1,422,153 |
Schedule of past due loans | The Company’s past due loans as of March 31, 2020 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 1,536 $ 80 $ 1,887 $ 3,503 Commercial real estate - owner occupied 433 1,134 3,412 4,979 Commercial real estate - non-owner occupied 316 — 74 390 Construction and development 46 — — 46 Residential 1‑4 family 2,050 214 555 2,819 Consumer 142 1 32 175 Other — — — — $ 4,523 $ 1,429 $ 5,960 $ 11,912 The Company’s past due loans as of December 31, 2019 is summarized as follows: 90 Days 30‑89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 235 $ — $ 1,923 $ 2,158 Commercial real estate - owner occupied 1,124 — 2,513 3,637 Commercial real estate - non-owner occupied — — 75 75 Construction and development 768 11 — 779 Residential 1‑4 family 805 307 550 1,662 Consumer 70 36 32 138 Other — — — — $ 3,002 $ 354 $ 5,093 $ 8,449 |
Schedule of loans by risk rating | The breakdown of loans by risk rating as of March 31, 2020 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 302,998 $ 6,001 $ 4,449 $ — $ 313,448 Commercial real estate - owner occupied 423,568 4,771 30,151 — 458,490 Commercial real estate - non-owner occupied 364,938 10,543 390 — 375,871 Construction and development 140,961 — 30 — 140,991 Residential 1‑4 family 440,481 254 1,640 — 442,375 Consumer 27,904 — 32 — 27,936 Other 6,588 — — — 6,588 $ 1,707,438 $ 21,569 $ 36,692 $ — $ 1,765,699 The breakdown of loans by risk rating as of December 31, 2019 is as follows: Pass (1‑5) 6 7 8 Total Commercial/industrial $ 290,180 $ 5,329 $ 7,029 $ — $ 302,538 Commercial real estate - owner occupied 422,336 5,603 31,843 — 459,782 Commercial real estate - non-owner occupied 344,278 8,774 671 — 353,723 Construction and development 132,266 — 30 — 132,296 Residential 1‑4 family 447,630 256 719 — 448,605 Consumer 29,430 — 32 — 29,462 Other 10,440 — — — 10,440 $ 1,676,560 $ 19,962 $ 40,324 $ — $ 1,736,846 |
Schedule of impaired loans individually | A summary of impaired loans individually evaluated as of March 31, 2020 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non – Owner and Residential Industrial Occupied Occupied Development 1-4 Family Consumer Other Unallocated Total With an allowance recorded: Recorded investment $ 1,872 $ 3,591 $ — $ — $ — $ — $ — $ — $ 5,463 Unpaid principal balance 1,872 3,591 — — — — — — 5,463 Related allowance 830 410 — — — — — — 1,240 With no related allowance recorded: Recorded investment $ — $ 1,644 $ — $ — $ — $ — $ — $ — $ 1,644 Unpaid principal balance — 1,644 — — — — — — 1,644 Related allowance — — — — — — — — — Total: Recorded investment $ 1,872 $ 5,235 $ — $ — $ — $ — $ — $ — $ 7,107 Unpaid principal balance 1,872 5,235 — — — — — — 7,107 Related allowance 830 410 — — — — — — 1,240 Average recorded investment $ 1,875 $ 4,567 $ — $ — $ — $ — $ — $ — $ 6,442 A summary of impaired loans individually evaluated as of December 31, 2019 is as follows: Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non – Owner and Residential Industrial Occupied Occupied Development 1‑4 Family Consumer Other Unallocated Total With an allowance recorded: Recorded investment $ 1,878 $ 960 $ — $ — $ — $ — $ — $ — $ 2,838 Unpaid principal balance 1,878 960 — — — — — — 2,838 Related allowance 760 80 — — — — — — 840 With no related allowance recorded: Recorded investment $ — $ 2,938 $ — $ — $ — $ — $ — $ — $ 2,938 Unpaid principal balance — 2,938 — — — — — — 2,938 Related allowance — — — — — — — — — Total: Recorded investment $ 1,878 $ 3,898 $ — $ — $ — $ — $ — $ — $ 5,776 Unpaid principal balance 1,878 3,898 — — — — — — 5,776 Related allowance 760 80 — — — — — — 840 Average recorded investment $ 3,773 $ 5,847 $ — $ — $ 351 $ — $ — $ — $ 9,971 |
Schedule of Change in the accretable and non accretable Components of Discounts on Loans | The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality for the three months ended March 31, 2020, and year ended December 31, 2019: March 31, 2020 December 31, 2019 Accretable Non-accretable Accretable Non-accretable discount discount discount discount Balance at beginning of period $ 222 $ 220 $ 318 $ 745 Acquired balance, net — — 44 333 Reclassifications between accretable and non-accretable 5 (5) 858 (858) Accretion to loan interest income (19) — (998) — Balance at end of period $ 208 $ 215 $ 222 $ 220 |
Schedule of troubled debt restructurings | The following table presents the TDRs during the three months ended March 31, 2020. There were no TDRs during the same period in 2019. Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commerical Real Estate 1 $ 115 $ 115 |
Financial Asset Acquired with Credit Deterioration [Member] | |
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY | |
Schedule of impaired loans individually | The following table presents loans acquired with deteriorated credit quality as of March 31, 2020 and December 31, 2019. No loans in this table had a related allowance at either date, and therefore, the below disclosures were not expanded to include loans with and without a related allowance. March 31, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance Commercial & Industrial $ 144 $ 165 $ 191 $ 212 Commercial real estate - owner occupied 171 402 518 785 Commercial real estate - non-owner occupied 358 391 — — Construction and development 92 102 213 237 Residential 1‑4 family 894 1,022 901 1,031 Consumer — — — — Other — — — — $ 1,659 $ 2,082 $ 1,823 $ 2,265 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
MORTGAGE SERVICING RIGHTS | |
Schedule of analysis of activity in the MSR asset | Following is an analysis of activity in the MSR asset: Three Months Ended Year Ended March 31, 2020 December 31, 2019 Fair value at beginning of period $ 4,287 $ 3,085 MSR asset acquired — 1,859 Servicing asset additions 243 740 Loan payments and payoffs (272) (821) Changes in valuation inputs and assumptions used in the valuation model 29 (576) Amount recognized through earnings — (657) Fair value at end of period $ 4,287 $ 4,287 Unpaid principal balance of loans serviced for others (in thousands) $ 568,584 $ 554,374 Mortgage servicing rights as a percent of loans serviced for others 0.75 0.77 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
NOTES PAYABLE | |
Schedule of advance rate and maturities Table Text Block | March 31, December 31, Maturity Rate 2020 2019 Fixed rate, fixed term 01/27/2020 1.42 % $ — $ 1,000 Fixed rate, fixed term 11/02/2020 1.28 % 400 400 Fixed rate, fixed term 01/22/2021 1.67 % 2,000 2,000 Fixed rate, fixed term 01/25/2021 2.37 % 5,000 5,000 Fixed rate, fixed term 01/27/2021 1.60 % 1,000 1,000 Fixed rate, fixed term 11/03/2021 1.46 % 400 400 Fixed rate, fixed term 08/08/2022 1.76 % 10,000 10,000 Fixed rate, fixed term 08/08/2023 1.74 % 10,000 10,000 Fixed rate, fixed term 08/08/2024 1.75 % 10,000 10,000 $ 38,800 $ 39,800 |
Schedule of Future maturities of borrowings Table Text Block | March 31, December 31, 2020 2019 1 year or less $ 8,400 $ 1,400 1 to 2 years 400 8,400 2 to 3 years 10,000 10,000 3 to 4 years 10,000 10,000 4 to 5 years 10,000 10,000 $ 38,800 $ 39,800 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REGULATORY MATTERS | |
Schedule of Actual and required capital amounts and ratios | Actual and required capital amounts and ratios are presented below at period-end: To Be Well Minimum Capital Capitalized Under For Capital Adeqaucy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total capital (to risk-weighted assets): Corporation $ 218,198 10.76 % NA NA NA NA NA NA Bank $ 225,087 11.11 % $ 162,142 8.00 % $ 212,811 10.50 % $ 202,678 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 186,646 9.20 % NA NA NA NA NA NA Bank $ 212,120 10.47 % $ 121,607 6.00 % $ 172,276 8.50 % $ 162,142 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 186,646 9.20 % NA NA NA NA NA NA Bank $ 212,120 10.47 % $ 91,205 4.50 % $ 141,874 7.00 % $ 131,740 6.50 % Tier 1 capital (to average assets): Corporation $ 186,646 8.68 % NA NA NA NA NA NA Bank $ 212,120 9.91 % $ 85,606 4.00 % $ 85,606 4.00 % $ 107,008 5.00 % December 31, 2019 Total capital (to risk-weighted assets): Corporation $ 208,900 10.35 % NA NA NA NA NA NA Bank $ 215,347 10.69 % $ 161,163 8.00 % $ 211,527 10.50 % $ 201,454 10.00 % Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 120,872 6.00 % $ 171,236 8.50 % $ 161,163 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Corporation $ 178,882 8.86 % NA NA NA NA NA NA Bank $ 203,951 10.12 % $ 90,654 4.50 % $ 141,018 7.00 % $ 130,945 6.50 % Tier 1 capital (to average assets): Corporation $ 178,882 8.46 % NA NA NA NA NA NA Bank $ 203,951 9.67 % $ 84,390 4.00 % 84,390 4.00 % $ 105,487 5.00 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Commitments and contingencies outstanding | The following commitments were outstanding: Notional Amount March 31, 2020 December 31, 2019 Commitments to extend credit: Fixed $ 44,700 $ 49,741 Variable 341,993 333,468 Credit card arrangements 9,641 11,148 Letters of credit 17,186 17,121 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of assets measured at fair value on a recurring basis | Information regarding the fair value of assets measured at fair value on a recurring basis is as follows: Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2020 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 13,401 $ — $ 13,401 $ — Obligations of states and political subdivisions 62,061 — 62,061 — Mortgage-backed securities 54,243 — 54,243 — Corporate notes 42,365 — 42,365 — Mortgage servicing rights 4,287 — 4,287 — December 31, 2019 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 12,060 $ — $ 12,060 $ — Obligations of states and political subdivisions 54,771 — 54,771 — Mortgage-backed securities 51,720 — 51,720 — Corporate notes 62,955 — 62,955 — Mortgage servicing rights 4,287 — 4,287 — |
Schedule of fair value of assets measured on a recurring basis using significant unobservable inputs | Fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) are as follows: March 31, 2020 December 31, 2019 Total securities at beginning of period $ — $ 400 Included in earnings — — Included in other comprehensive income — — Purchases, issuance, and settlements — (400) Transfer in and/or out of level 3 — — Total securities at end of period $ — $ — |
Schedule of fair value of assets measured on a non-recurring basis | Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows: Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) March 31, 2020 OREO $ 4,530 $ — $ — $ 4,530 Impaired Loans, net of impairment reserve 7,551 — — 7,551 $ 12,081 $ — $ — $ 12,081 December 31, 2019 OREO $ 6,888 $ — $ — $ 6,888 Impaired Loans, net of impairment reserve 6,847 — — 6,847 $ 13,735 $ — $ — $ 13,735 |
Schedule of fair value measurement on inputs and valuation techniques | The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets: Weighted Valuation Unobservable Range of Average Technique Inputs Discounts Discount As of March 31, 2020 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 56% 32.3 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% 5.3 % As of December 31, 2019 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0% - 61% 33.5 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 100% 6.1 % |
Schedule of carrying value and estimated fair value of financial instruments | The carrying value and estimated fair value of financial instruments at March 31, 2020 and December 31, 2019 follows: Fair Value Carrying March 31, 2020 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 54,153 $ 54,153 $ — $ — $ 54,153 Securities held to maturity 43,732 — 46,988 — 46,988 Securities available for sale 172,070 — 172,070 — 172,070 Loans held for sale 2,659 — — 2,659 2,659 Loans, net 1,752,275 — — 1,774,641 1,774,641 Other investments, at cost 7,332 — — 7,332 7,332 Mortgage servicing rights 4,287 — 4,287 — 4,287 Cash surrender value of life insurance 25,105 25,105 — — 25,105 Deposits $ 1,847,209 $ — $ — $ 1,821,582 $ 1,821,582 Securities sold under repurchase agreements 35,786 — 35,786 — 35,786 Notes payable 48,792 — 48,792 — 48,792 Subordinated notes 18,585 — 18,585 — 18,585 Fair Value Carrying December 31, 2019 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 86,452 $ 86,452 $ — $ — $ 86,452 Securities held to maturity 43,734 — 44,803 — 44,803 Securities available for sale 181,506 — 181,506 — 181,506 Loans held for sale 587 — — 587 587 Loans, net 1,724,947 — — 1,723,542 1,723,542 Other investments, at cost 4,933 — — 4,933 4,933 Mortgage servicing rights 4,287 — 4,287 — 4,287 Cash surrender value of life insurance 24,945 24,945 — — 24,945 Financial liabilities: Deposits $ 1,843,311 $ — $ — $ 1,783,638 $ 1,783,638 Securities sold under repurchase agreements 45,865 — 45,865 — 45,865 Notes payable 49,790 — 49,790 — 49,790 Subordinated notes 18,622 — 18,622 — 18,622 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
STOCK BASED COMPENSATION | |
Schedule of share-based compensation, restricted stock and restricted stock units activity | For the three months ended March 31, 2020 For the three months ended March 31, 2019 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 50,676 $ 43.03 51,776 $ 34.27 Granted 25,107 61.49 17,015 56.62 Vested (16,800) 37.38 (16,039) 28.82 Forfeited or cancelled — — (176) 22.90 Outstanding at end of year 58,983 $ 52.50 52,576 $ 43.31 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Schedule of lease cost and other information related to leases | Three-month period ended March 31, 2020 March 31, 2019 Amortization of ROU Assets - Operating Leases $ 10 $ 16 Interest on Lease Liabilities - Operating Leases 23 16 Operating Lease Cost (Cost resulting from lease payments) 33 32 ROU Assets - Operating Leases at beginning of period 1,699 — New ROU Assets - Operating Leases — 1,744 ROU Assets - Operating Leases at March 31, 1,689 1,744 Weighted Average Lease Term (Years) - Operating Leases 31.54 31.68 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % |
Schedule of maturity analysis of operating lease liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of March 31, 2020 is as follows: March 31, 2020 Operating lease payments due: Within one year $ 136 After one but within two years 136 After two but within three years 103 After three but within four years 86 After four years but within five years 86 After five years 3,389 Total undiscounted cash flows 3,936 Discount on cash flows (2,247) Total operating lease liabilities $ 1,689 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) | Nov. 20, 2019 | Jul. 12, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 22, 2019 |
Payments to Acquire Businesses, Gross | $ 14,300,000 | ||||
Business Combination Consideration Transferred Number of Shares Issuable | 0.34879 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 17.3001 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 534,731 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 35,300,000 | ||||
Business Acquisition, Share Price | $ 66.03 | ||||
Assets | $ 2,200,320,000 | $ 2,210,168,000 | |||
Loans and Leases Receivable, Net Amount | 1,752,275,000 | 1,724,947,000 | |||
Deposits. | 1,847,209,000 | $ 1,843,311,000 | |||
Partnership Community Bancshares [Member] | |||||
Business Combination, Contingent Consideration, Liability | $ 49,600,000 | ||||
Tomah Bancshares [Member] | |||||
Business Combination Contingent Consideration Percentage Of Equity Issued | 100.00% | ||||
Business Combination, Contingent Consideration, Liability | $ 32,600,000 | ||||
Assets | 2,400,000,000 | ||||
Loans and Leases Receivable, Net Amount | 1,800,000,000 | ||||
Deposits. | $ 2,000,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic | ||
Net income available to common shareholders | $ 7,266 | $ 6,587 |
Less: Earnings allocated to participating securities | (56) | (52) |
Net income allocated to common shareholders | $ 7,210 | $ 6,535 |
Weighted average common shares outstanding including participating securities | 7,083,520 | 6,574,362 |
Less: Participating securities (1) | (54,830) | (52,176) |
Average shares | 7,028,690 | 6,522,186 |
Basic earnings per common shares | $ 1.03 | $ 1 |
Diluted | ||
Net income available to common shareholders | $ 7,266 | $ 6,587 |
Weighted average common shares outstanding for basic earnings per common share | 7,028,690 | 6,522,186 |
Add: Dilutive effects of stock based compensation awards | 99,556 | 54,148 |
Average shares and dilutive potential common shares | 7,128,246 | 6,576,334 |
Diluted earnings per common shares | $ 1.02 | $ 1 |
SECURITIES - Securities availab
SECURITIES - Securities available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Available for sale securities, Amortized Cost | $ 167,351 | $ 178,376 |
Available for sale securities, Gross Unrealized Gains | 4,936 | 3,357 |
Available for sale securities, Gross Unrealized Losses | (217) | (227) |
Available for sale securities, Estimated Fair Value | 172,070 | 181,506 |
Corporate notes [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 42,060 | 62,794 |
Available for sale securities, Gross Unrealized Gains | 401 | 172 |
Available for sale securities, Gross Unrealized Losses | (96) | (11) |
Available for sale securities, Estimated Fair Value | 42,365 | 62,955 |
Obligations of U.S. Government sponsored agencies | ||
Marketable Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 13,431 | 12,218 |
Available for sale securities, Gross Unrealized Gains | 33 | |
Available for sale securities, Gross Unrealized Losses | (63) | (158) |
Available for sale securities, Estimated Fair Value | 13,401 | 12,060 |
Obligations of states and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 59,442 | 52,594 |
Available for sale securities, Gross Unrealized Gains | 2,655 | 2,197 |
Available for sale securities, Gross Unrealized Losses | (36) | (20) |
Available for sale securities, Estimated Fair Value | 62,061 | 54,771 |
Mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 52,418 | 50,770 |
Available for sale securities, Gross Unrealized Gains | 1,847 | 988 |
Available for sale securities, Gross Unrealized Losses | (22) | (38) |
Available for sale securities, Estimated Fair Value | $ 54,243 | $ 51,720 |
SECURITIES - Securities held to
SECURITIES - Securities held to maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | $ 43,732 | $ 43,734 |
Held to maturity securities, Gross Unrealized Gains | 3,256 | 1,091 |
Held to maturity securities, Gross Unrealized Losses | 0 | (22) |
Held to Maturity Total, Estimated Fair Value | 46,988 | 44,803 |
U.S. Treasury securities [Member] | ||
Marketable Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | 33,525 | 33,527 |
Held to maturity securities, Gross Unrealized Gains | 3,243 | 1,076 |
Held to maturity securities, Gross Unrealized Losses | 0 | (22) |
Held to Maturity Total, Estimated Fair Value | 36,768 | 34,581 |
Obligations of states and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | 10,207 | 10,207 |
Held to maturity securities, Gross Unrealized Gains | 13 | 15 |
Held to maturity securities, Gross Unrealized Losses | 0 | 0 |
Held to Maturity Total, Estimated Fair Value | $ 10,220 | $ 10,222 |
SECURITIES - Fair value and gro
SECURITIES - Fair value and gross unrealized losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 1,731 | $ 3,186 |
Available for Sale, Greater Than 12 Months Unrealized Losses | (5) | (13) |
Available for Sale, Less Than 12 Months Fair Value | 21,312 | 25,658 |
Available for Sale, Total Fair Value | 23,043 | 28,844 |
Available for Sale, Less Than 12 Months Unrealized Losses | (212) | (214) |
Available for Sale, Total Unrealized Losses | (217) | (227) |
Corporate notes [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available for Sale, Greater Than 12 Months Unrealized Losses | 0 | 0 |
Available for Sale, Less Than 12 Months Fair Value | 3,851 | 3,925 |
Available for Sale, Total Fair Value | 3,851 | 3,925 |
Available for Sale, Less Than 12 Months Unrealized Losses | (96) | (11) |
Available for Sale, Total Unrealized Losses | (96) | (11) |
Obligations of U.S. Government sponsored agencies | ||
Marketable Securities [Line Items] | ||
Available for Sale, Greater Than 12 Months Unrealized Losses | 0 | 0 |
Available for Sale, Less Than 12 Months Fair Value | 11,076 | 12,059 |
Available for Sale, Total Fair Value | 11,076 | 12,059 |
Available for Sale, Less Than 12 Months Unrealized Losses | (63) | (158) |
Available for Sale, Total Unrealized Losses | (63) | (158) |
Obligations of states and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 999 |
Available for Sale, Greater Than 12 Months Unrealized Losses | 0 | (1) |
Available for Sale, Less Than 12 Months Fair Value | 3,467 | 5,636 |
Available for Sale, Total Fair Value | 3,467 | 6,635 |
Available for Sale, Less Than 12 Months Unrealized Losses | (36) | (19) |
Available for Sale, Total Unrealized Losses | (36) | (20) |
Mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,731 | 2,187 |
Available for Sale, Greater Than 12 Months Unrealized Losses | (5) | (12) |
Available for Sale, Less Than 12 Months Fair Value | 2,918 | 4,038 |
Available for Sale, Total Fair Value | 4,649 | 6,225 |
Available for Sale, Less Than 12 Months Unrealized Losses | (17) | (26) |
Available for Sale, Total Unrealized Losses | $ (22) | (38) |
U.S. Treasury securities [Member] | ||
Marketable Securities [Line Items] | ||
Held to Maturity, Less Than 12 Months Fair Value | 2,958 | |
Held to Maturity, Greater Than 12 Months Fair Value | 0 | |
Held to Maturity, Total Fair Value | 2,958 | |
Held to Maturity, Less Than 12 Months Unrealized Losses | (22) | |
Held to Maturity, Greater Than 12 Months Unrealized Losses | 0 | |
Held to Maturity, Total Unrealized Losses | $ (22) |
SECURITIES - Summary of amortiz
SECURITIES - Summary of amortized cost and estimated fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
SECURITIES | ||
Available for Sale Due in one year or less, Amortized Cost | $ 26,344 | |
Available for Sale Due after one year through five years, Amortized Cost | 21,833 | |
Available for Sale Due after five years through ten years, Amortized Cost | 12,963 | |
Available for Sale Due after ten years, Amortized Cost | 53,793 | |
Available for Sale Subtotal, Amortized Cost | 114,933 | |
Available for Sale Mortgage-backed securities, Amortized Cost | 52,418 | |
Available for sale securities, Amortized Cost | 167,351 | $ 178,376 |
Available for Sale Due in one year or less, Estimated Fair Value | 26,347 | |
Available for Sale Due after one year through five years, Estimated Fair Value | 22,298 | |
Available for Sale Due after five years through ten years, Estimated Fair Value | 13,509 | |
Available for Sale Due after ten years, Estimated Fair Value | 55,673 | |
Available for Sale Subtotal, Estimated Fair Value | 117,827 | |
Available for Sale Mortgage-backed securities, Estimated Fair Value | 54,243 | |
Available for sale securities, Estimated Fair Value | 172,070 | 181,506 |
Held to Maturity Due in one year or less, Amortized Cost | 4,134 | |
Held to Maturity Due after one year through five years, Amortized Cost | 13,470 | |
Held to Maturity Due after five years through ten years, Amortized Cost | 23,219 | |
Held to Maturity Due after ten years, Amortized Cost | 2,909 | |
Held to Maturity Subtotal, Amortized Cost | 43,732 | |
Held to Maturity Mortgage-backed securities, Amortized Cost | 0 | |
Held to maturity securities, Amortized Cost | 43,732 | 43,734 |
Held to Maturity Due in one year or less, Estimated Fair Value | 4,177 | |
Held to Maturity Due after one year through five years, Estimated Fair Value | 14,137 | |
Held to Maturity Due after five years through ten years, Estimated Fair Value | 25,765 | |
Held to Maturity Due after ten years, Estimated Fair Value | 2,909 | |
Held to Maturity Subtotal, Estimated Fair Value | 46,988 | |
Held to Maturity Mortgage-backed securities, Estimated Fair Value | 0 | |
Held to Maturity Total, Estimated Fair Value | $ 46,988 | $ 44,803 |
SECURITIES - Summary of proceed
SECURITIES - Summary of proceeds from sales securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
SECURITIES | ||
Sale of securities available for sale | 0 | 0 |
LOANS, ALLOWANCE FOR LOAN LOS_3
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable, Gross | $ 1,765,699 | $ 1,736,846 | $ 1,432,118 | |
ALL | (12,967) | (11,396) | (12,213) | $ (12,248) |
Loans, net of ALL | 1,752,732 | 1,725,450 | ||
Deferred loan fees and costs | (457) | (503) | ||
Loans, net | 1,752,275 | 1,724,947 | ||
Other | ||||
Loans and Leases Receivable, Gross | 6,588 | 10,440 | 6,165 | |
ALL | (35) | (53) | (41) | (32) |
Construction and Development | ||||
Loans and Leases Receivable, Gross | 140,991 | 132,296 | 67,537 | |
ALL | (623) | (548) | (396) | (725) |
Commercial/Industrial | ||||
Loans and Leases Receivable, Gross | 313,448 | 302,538 | 293,220 | |
ALL | (2,634) | (2,320) | (2,269) | (3,021) |
Commercial Real Estate-Owner Occupied | ||||
Loans and Leases Receivable, Gross | 458,490 | 459,782 | 412,126 | |
ALL | (5,421) | (4,587) | (5,428) | (3,750) |
Commercial Real Estate-Non-Owner Occupied | ||||
Loans and Leases Receivable, Gross | 375,871 | 353,723 | 258,310 | |
ALL | (1,802) | (1,578) | (1,910) | (2,100) |
Residential 14 Family | ||||
Loans and Leases Receivable, Gross | 442,375 | 448,605 | 367,518 | |
ALL | (2,310) | (2,169) | (2,034) | (2,472) |
Consumer | ||||
Loans and Leases Receivable, Gross | 27,936 | 29,462 | 27,242 | |
ALL | $ (142) | $ (141) | $ (135) | $ (148) |
LOANS, ALLOWANCE FOR LOAN LOS_4
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - ALL by loan type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
ALL - Beginning Balance | $ 11,396 | $ 12,248 | |
Charge-offs | (83) | (742) | |
Recoveries | 679 | 82 | |
Provision | 975 | 625 | |
ALL - Ending Balance | 12,967 | 12,213 | |
ALL ending balance individually evaluated for impairment | 1,240 | 2,058 | |
ALL ending balance collectively evaluated for impairment | 11,727 | 10,155 | |
Loans outstanding - Ending Balance | 1,765,699 | 1,432,118 | $ 1,736,846 |
Loans ending balance individually evaluated for impairment | 7,107 | 9,965 | |
Loans ending balance collectively evaluated for impairment | 1,758,592 | 1,422,153 | |
Other | |||
ALL - Beginning Balance | 53 | 32 | |
Charge-offs | (5) | (5) | |
Recoveries | 4 | 2 | |
Provision | (17) | 12 | |
ALL - Ending Balance | 35 | 41 | |
ALL ending balance individually evaluated for impairment | 0 | 0 | |
ALL ending balance collectively evaluated for impairment | 35 | 41 | |
Loans outstanding - Ending Balance | 6,588 | 6,165 | 10,440 |
Loans ending balance individually evaluated for impairment | 0 | 0 | |
Loans ending balance collectively evaluated for impairment | 6,588 | 6,165 | |
Construction and Development | |||
ALL - Beginning Balance | 548 | 725 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 75 | (329) | |
ALL - Ending Balance | 623 | 396 | |
ALL ending balance individually evaluated for impairment | 0 | 0 | |
ALL ending balance collectively evaluated for impairment | 623 | 396 | |
Loans outstanding - Ending Balance | 140,991 | 67,537 | 132,296 |
Loans ending balance individually evaluated for impairment | 0 | 0 | |
Loans ending balance collectively evaluated for impairment | 140,991 | 67,537 | |
Commercial/Industrial | |||
ALL - Beginning Balance | 2,320 | 3,021 | |
Charge-offs | (1) | (586) | |
Recoveries | 0 | 0 | |
Provision | 315 | (166) | |
ALL - Ending Balance | 2,634 | 2,269 | |
ALL ending balance individually evaluated for impairment | 830 | 0 | |
ALL ending balance collectively evaluated for impairment | 1,804 | 2,269 | |
Loans outstanding - Ending Balance | 313,448 | 293,220 | 302,538 |
Loans ending balance individually evaluated for impairment | 1,872 | 0 | |
Loans ending balance collectively evaluated for impairment | 311,576 | 293,220 | |
Commercial Real Estate-Owner Occupied | |||
ALL - Beginning Balance | 4,587 | 3,750 | |
Charge-offs | (77) | (78) | |
Recoveries | 640 | 1 | |
Provision | 271 | 1,755 | |
ALL - Ending Balance | 5,421 | 5,428 | |
ALL ending balance individually evaluated for impairment | 410 | 2,058 | |
ALL ending balance collectively evaluated for impairment | 5,011 | 3,370 | |
Loans outstanding - Ending Balance | 458,490 | 412,126 | 459,782 |
Loans ending balance individually evaluated for impairment | 5,235 | 9,786 | |
Loans ending balance collectively evaluated for impairment | 453,255 | 402,340 | |
Commercial Real Estate-Non-Owner Occupied | |||
ALL - Beginning Balance | 1,578 | 2,100 | |
Charge-offs | 0 | (54) | |
Recoveries | 1 | 0 | |
Provision | 223 | (136) | |
ALL - Ending Balance | 1,802 | 1,910 | |
ALL ending balance individually evaluated for impairment | 0 | 0 | |
ALL ending balance collectively evaluated for impairment | 1,802 | 1,910 | |
Loans outstanding - Ending Balance | 375,871 | 258,310 | 353,723 |
Loans ending balance individually evaluated for impairment | 0 | 0 | |
Loans ending balance collectively evaluated for impairment | 375,871 | 258,310 | |
Residential 14 Family | |||
ALL - Beginning Balance | 2,169 | 2,472 | |
Charge-offs | 0 | (8) | |
Recoveries | 34 | 78 | |
Provision | 107 | (508) | |
ALL - Ending Balance | 2,310 | 2,034 | |
ALL ending balance individually evaluated for impairment | 0 | 0 | |
ALL ending balance collectively evaluated for impairment | 2,310 | 2,034 | |
Loans outstanding - Ending Balance | 442,375 | 367,518 | 448,605 |
Loans ending balance individually evaluated for impairment | 0 | 179 | |
Loans ending balance collectively evaluated for impairment | 442,375 | 367,339 | |
Consumer | |||
ALL - Beginning Balance | 141 | 148 | |
Charge-offs | 0 | (11) | |
Recoveries | 0 | 1 | |
Provision | 1 | (3) | |
ALL - Ending Balance | 142 | 135 | |
ALL ending balance individually evaluated for impairment | 0 | 0 | |
ALL ending balance collectively evaluated for impairment | 142 | 135 | |
Loans outstanding - Ending Balance | 27,936 | 27,242 | $ 29,462 |
Loans ending balance individually evaluated for impairment | 0 | 0 | |
Loans ending balance collectively evaluated for impairment | $ 27,936 | $ 27,242 |
LOANS, ALLOWANCE FOR LOAN LOS_5
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 11,912 | $ 8,449 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 5,960 | 5,093 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Construction and Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 46 | 779 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Commercial/Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,503 | 2,158 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,887 | 1,923 |
Commercial Real Estate-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,979 | 3,637 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,412 | 2,513 |
Commercial Real Estate-Non-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 390 | 75 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 74 | 75 |
Residential 14 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,819 | 1,662 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 555 | 550 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 175 | 138 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 32 | 32 |
30-89 Days Past Due Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,523 | 3,002 |
30-89 Days Past Due Accruing | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
30-89 Days Past Due Accruing | Construction and Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 46 | 768 |
30-89 Days Past Due Accruing | Commercial/Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,536 | 235 |
30-89 Days Past Due Accruing | Commercial Real Estate-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 433 | 1,124 |
30-89 Days Past Due Accruing | Commercial Real Estate-Non-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 316 | 0 |
30-89 Days Past Due Accruing | Residential 14 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,050 | 805 |
30-89 Days Past Due Accruing | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 142 | 70 |
90 Days Past Due Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,429 | 354 |
90 Days Past Due Accruing | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
90 Days Past Due Accruing | Construction and Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 11 |
90 Days Past Due Accruing | Commercial/Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 80 | 0 |
90 Days Past Due Accruing | Commercial Real Estate-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,134 | 0 |
90 Days Past Due Accruing | Commercial Real Estate-Non-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
90 Days Past Due Accruing | Residential 14 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 214 | 307 |
90 Days Past Due Accruing | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 1 | $ 36 |
LOANS, ALLOWANCE FOR LOAN LOS_6
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY- Breakdown of loans by risk rating (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Loans and Leases Receivable, Gross | $ 1,765,699 | $ 1,736,846 | $ 1,432,118 |
Other | |||
Loans and Leases Receivable, Gross | 6,588 | 10,440 | 6,165 |
Construction and Development | |||
Loans and Leases Receivable, Gross | 140,991 | 132,296 | 67,537 |
Commercial/Industrial | |||
Loans and Leases Receivable, Gross | 313,448 | 302,538 | 293,220 |
Commercial Real Estate-Owner Occupied | |||
Loans and Leases Receivable, Gross | 458,490 | 459,782 | 412,126 |
Commercial Real Estate-Non-Owner Occupied | |||
Loans and Leases Receivable, Gross | 375,871 | 353,723 | 258,310 |
Residential 14 Family | |||
Loans and Leases Receivable, Gross | 442,375 | 448,605 | 367,518 |
Consumer | |||
Loans and Leases Receivable, Gross | 27,936 | 29,462 | $ 27,242 |
Pass (1-5) | |||
Loans and Leases Receivable, Gross | 1,707,438 | 1,676,560 | |
Pass (1-5) | Other | |||
Loans and Leases Receivable, Gross | 6,588 | 10,440 | |
Pass (1-5) | Construction and Development | |||
Loans and Leases Receivable, Gross | 140,961 | 132,266 | |
Pass (1-5) | Commercial/Industrial | |||
Loans and Leases Receivable, Gross | 302,998 | 290,180 | |
Pass (1-5) | Commercial Real Estate-Owner Occupied | |||
Loans and Leases Receivable, Gross | 423,568 | 422,336 | |
Pass (1-5) | Commercial Real Estate-Non-Owner Occupied | |||
Loans and Leases Receivable, Gross | 364,938 | 344,278 | |
Pass (1-5) | Residential 14 Family | |||
Loans and Leases Receivable, Gross | 440,481 | 447,630 | |
Pass (1-5) | Consumer | |||
Loans and Leases Receivable, Gross | 27,904 | 29,430 | |
Pass 6 | |||
Loans and Leases Receivable, Gross | 21,569 | 19,962 | |
Pass 6 | Other | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 6 | Construction and Development | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 6 | Commercial/Industrial | |||
Loans and Leases Receivable, Gross | 6,001 | 5,329 | |
Pass 6 | Commercial Real Estate-Owner Occupied | |||
Loans and Leases Receivable, Gross | 4,771 | 5,603 | |
Pass 6 | Commercial Real Estate-Non-Owner Occupied | |||
Loans and Leases Receivable, Gross | 10,543 | 8,774 | |
Pass 6 | Residential 14 Family | |||
Loans and Leases Receivable, Gross | 254 | 256 | |
Pass 6 | Consumer | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 7 | |||
Loans and Leases Receivable, Gross | 36,692 | 40,324 | |
Pass 7 | Other | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 7 | Construction and Development | |||
Loans and Leases Receivable, Gross | 30 | 30 | |
Pass 7 | Commercial/Industrial | |||
Loans and Leases Receivable, Gross | 4,449 | 7,029 | |
Pass 7 | Commercial Real Estate-Owner Occupied | |||
Loans and Leases Receivable, Gross | 30,151 | 31,843 | |
Pass 7 | Commercial Real Estate-Non-Owner Occupied | |||
Loans and Leases Receivable, Gross | 390 | 671 | |
Pass 7 | Residential 14 Family | |||
Loans and Leases Receivable, Gross | 1,640 | 719 | |
Pass 7 | Consumer | |||
Loans and Leases Receivable, Gross | 32 | 32 | |
Pass 8 | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Other | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Construction and Development | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Commercial/Industrial | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Commercial Real Estate-Owner Occupied | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Commercial Real Estate-Non-Owner Occupied | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Residential 14 Family | |||
Loans and Leases Receivable, Gross | 0 | 0 | |
Pass 8 | Consumer | |||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOS_7
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY -Summary of impaired loans individually (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
With an allowance recorded: | ||
Recorded investment | $ 5,463 | $ 2,838 |
Unpaid principal balance | 5,463 | 2,838 |
Related allowance | 1,240 | 840 |
With no related allowance recorded: | ||
Recorded investment | 1,644 | 2,938 |
Unpaid principal balance | 1,644 | 2,938 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 7,107 | 5,776 |
Unpaid principal balance | 7,107 | 5,776 |
Related allowance | 1,240 | 840 |
Average recorded investment | 6,442 | 9,971 |
Other | ||
With an allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Construction and Development | ||
With an allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Commercial/Industrial | ||
With an allowance recorded: | ||
Recorded investment | 1,872 | 1,878 |
Unpaid principal balance | 1,872 | 1,878 |
Related allowance | 830 | 760 |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 1,872 | 1,878 |
Unpaid principal balance | 1,872 | 1,878 |
Related allowance | 830 | 760 |
Average recorded investment | 1,875 | 3,773 |
Commercial Real Estate-Owner Occupied | ||
With an allowance recorded: | ||
Recorded investment | 3,591 | 960 |
Unpaid principal balance | 3,591 | 960 |
Related allowance | 410 | 80 |
With no related allowance recorded: | ||
Recorded investment | 1,644 | 2,938 |
Unpaid principal balance | 1,644 | 2,938 |
Related allowance | 0 | |
Total: | ||
Recorded investment | 5,235 | 3,898 |
Unpaid principal balance | 5,235 | 3,898 |
Related allowance | 410 | 80 |
Average recorded investment | 4,567 | 5,847 |
Commercial Real Estate-Non-Owner Occupied | ||
With an allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Residential 14 Family | ||
With an allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 351 |
Consumer | ||
With an allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Total: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Unallocated | ||
With an allowance recorded: | ||
Recorded investment | 0 | |
Unpaid principal balance | 0 | |
Related allowance | 0 | |
With no related allowance recorded: | ||
Recorded investment | 0 | 0 |
Unpaid principal balance | $ 0 | 0 |
Related allowance | 0 | |
Total: | ||
Recorded investment | 0 | |
Unpaid principal balance | 0 | |
Related allowance | 0 | |
Average recorded investment | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOS_8
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Credit Deterioration (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Impaired Financing Receivable, Recorded Investment | $ 7,107 | $ 5,776 |
Impaired Financing Receivable, Unpaid Principal Balance | 7,107 | 5,776 |
Other | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Construction and Development | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Commercial/Industrial | ||
Impaired Financing Receivable, Recorded Investment | 1,872 | 1,878 |
Impaired Financing Receivable, Unpaid Principal Balance | 1,872 | 1,878 |
Commercial Real Estate-Owner Occupied | ||
Impaired Financing Receivable, Recorded Investment | 5,235 | 3,898 |
Impaired Financing Receivable, Unpaid Principal Balance | 5,235 | 3,898 |
Commercial Real Estate-Non-Owner Occupied | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Residential 14 Family | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Consumer | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Impaired Financing Receivable, Recorded Investment | 1,659 | 1,823 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,082 | 2,265 |
Financial Asset Acquired with Credit Deterioration [Member] | Other | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Construction and Development | ||
Impaired Financing Receivable, Recorded Investment | 92 | 213 |
Impaired Financing Receivable, Unpaid Principal Balance | 102 | 237 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial/Industrial | ||
Impaired Financing Receivable, Recorded Investment | 144 | 191 |
Impaired Financing Receivable, Unpaid Principal Balance | 165 | 212 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate-Owner Occupied | ||
Impaired Financing Receivable, Recorded Investment | 171 | 518 |
Impaired Financing Receivable, Unpaid Principal Balance | 402 | 785 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate-Non-Owner Occupied | ||
Impaired Financing Receivable, Recorded Investment | 358 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 391 | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Residential 14 Family | ||
Impaired Financing Receivable, Recorded Investment | 894 | 901 |
Impaired Financing Receivable, Unpaid Principal Balance | 1,022 | 1,031 |
Financial Asset Acquired with Credit Deterioration [Member] | Consumer | ||
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | $ 0 | $ 0 |
LOANS, ALLOWANCE FOR LOAN LOS_9
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Change in the accretable and non accretable Components of Discounts on Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accretable Discount [Member] | ||
Balance at beginning of period | $ 222 | $ 318 |
Acquired balance, net | 0 | 44 |
Reclassifications between accretable and non-accretable | 5 | 858 |
Accretion to loan interest income | (19) | (998) |
Balance at end of period | 208 | 222 |
Non Accretable Discount [Member] | ||
Balance at beginning of period | 220 | 745 |
Acquired balance, net | 0 | 333 |
Reclassifications between accretable and non-accretable | (5) | (858) |
Accretion to loan interest income | 0 | 0 |
Balance at end of period | $ 215 | $ 220 |
LOANS, ALLOWANCE FOR LOAN LO_10
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Schedule of troubled debt restructurings (Details) - Commercial Real Estate $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)contract | |
Number of Contracts | contract | 1 |
Pre-Modification Outstanding Recorded Investment | $ 115 |
Post-Modification Outstanding Recorded Investment | $ 115 |
LOANS, ALLOWANCE FOR LOAN LO_11
LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY - Additional Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable, Allowance | $ 12,967,000 | $ 11,396,000 | $ 12,213,000 | $ 12,248,000 |
Troubled Debt Restructuring Reserve | 0 | $ 80,000 | ||
Minimum [Member] | ||||
Loans and Leases Receivable, Allowance | $ 250,000,000 |
MORTGAGE SERVICING RIGHTS (Deta
MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair value at beginning of period | $ 4,287 | |
MSR asset acquired | $ 1,859 | |
Servicing asset additions | 243 | 740 |
Loan payments and payoffs | (272) | (821) |
Changes in valuation inputs and assumptions used in the valuation model | 29 | (576) |
Amount recognized through earnings | 0 | (657) |
Fair value at end of period | 4,287 | 4,287 |
Unpaid principal balance of loans serviced for others | 7,107 | 5,776 |
Other | ||
Unpaid principal balance of loans serviced for others | $ 0 | $ 0 |
Mortgage servicing rights as a percent of loans serviced for others | 0.75% | 0.77% |
Other | Mortgage Servicing Rights [Member] | ||
Unpaid principal balance of loans serviced for others | $ 568,584 | $ 554,374 |
MORTGAGE SERVICING RIGHTS - Add
MORTGAGE SERVICING RIGHTS - Additional Information (Details) - M | Mar. 31, 2020 | Dec. 31, 2019 |
Measurement Input, Discount Rate [Member] | ||
Mortgage Servicing Rights Discount Rate | 10.00% | 9.80% |
Measurement Input, Prepayment Rate [Member] | ||
Servicing Asset, Measurement Input | 14.3 | 12.1 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 38,800 | $ 39,800 |
Long-term Debt | $ 38,800 | 39,800 |
Maturity of Fixed Term one Member | ||
Long-term Debt | 1,000 | |
Debt Instrument, Basis Spread on Variable Rate | 1.42% | |
Maturity of Fixed Term Two Member | ||
Long-term Debt | $ 400 | 400 |
Debt Instrument, Basis Spread on Variable Rate | 1.28% | |
Maturity of Fixed Term Three Member | ||
Long-term Debt | $ 2,000 | 2,000 |
Debt Instrument, Basis Spread on Variable Rate | 1.67% | |
Maturity of Fixed Term Four Member | ||
Long-term Debt | $ 5,000 | 5,000 |
Debt Instrument, Basis Spread on Variable Rate | 2.37% | |
Maturity of Fixed Term Five Member | ||
Long-term Debt | $ 1,000 | 1,000 |
Debt Instrument, Basis Spread on Variable Rate | 1.60% | |
Maturity of Fixed Term Six Member | ||
Long-term Debt | $ 400 | 400 |
Debt Instrument, Basis Spread on Variable Rate | 1.46% | |
Maturity of Fixed Term Seven Member | ||
Long-term Debt | $ 10,000 | 10,000 |
Debt Instrument, Basis Spread on Variable Rate | 1.76% | |
Maturity of Fixed Term Eight Member | ||
Long-term Debt | $ 10,000 | 10,000 |
Debt Instrument, Basis Spread on Variable Rate | 1.74% | |
Maturity of Fixed Term Nine Member | ||
Long-term Debt | $ 10,000 | 10,000 |
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Commercial Bank One [Member] | ||
Line of credit with bank | $ 5,000 | |
Long-term Line of Credit | 5,000 | 5,000 |
Commercial Bank Two [Member] | ||
Line of credit with bank | 5,000 | |
Long-term Line of Credit | $ 5,000 | $ 5,000 |
NOTES PAYABLE - Future maturiti
NOTES PAYABLE - Future maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
NOTES PAYABLE | ||
1 year or less | $ 8,400 | $ 1,400 |
1 to 2 years | 400 | 8,400 |
2 to 3 years | 10,000 | 10,000 |
3 to 4 years | 10,000 | 10,000 |
4 to 5 years | 10,000 | 10,000 |
Long-term Debt, Total | $ 38,800 | $ 39,800 |
SUBORDINATED NOTES (Details)
SUBORDINATED NOTES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Subordinated Borrowing [Line Items] | ||
Subordinated Debt | $ 18,585 | $ 18,622 |
Long-term Debt, Gross | 7,100 | 7,100 |
Subordinated Debt [Member] | ||
Subordinated Borrowing [Line Items] | ||
Subordinated Debt | $ 11,500 | 11,500 |
Debt Instrument, Term | 10 years | |
Long-term Debt, Gross | $ 7,000 | |
Liabilities, Fair Value Adjustment | $ 200 | |
Debt Instrument, Interest Rate During Period | 7.10% | |
Subordinated debt acquired | $ 100 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total capital (to risk-weighted assets): | ||
Capital | $ 225,087 | $ 215,347 |
Capital to Risk Weighted Assets | 11.11% | 10.69% |
Capital Required for Capital Adequacy | $ 162,142 | $ 161,163 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Excess Capital | $ 212,811 | $ 211,527 |
Excess Capital to Risk Weighted Assets | 10.50% | 10.50% |
Capital Required to be Well Capitalized | $ 202,678 | $ 201,454 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | $ 212,120 | $ 203,951 |
Tier One Risk Based Capital to Risk Weighted Assets | 10.47% | 10.12% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 121,607 | $ 120,872 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Excess Tier One Risk Based Capital | $ 172,276 | $ 171,236 |
Excess Tier One Risk Based Capital to Risk Weighted Assets | 8.50% | 8.50% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 162,142 | $ 161,163 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common Equity Tier One Capital [Abstract] | ||
Common Equity Tier One Capital | $ 212,120 | $ 203,951 |
Common Equity Tier One Capital Ratio | 10.47% | 10.12% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 91,205 | $ 90,654 |
Common Equity Tier One Capital Required for Capital Adequacy To Risk Weighted Assets | 4.50% | 4.50% |
Excess Common Equity Tier One Capital | $ 141,874 | $ 141,018 |
Excess Common Equity Tier One Capital to Risk Weighted Assets | 7.00% | 7.00% |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 131,740 | $ 130,945 |
Common Equity Tier One Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | $ 212,120 | $ 203,951 |
Tier One Leverage Capital to Average Assets | 9.91% | 9.67% |
Tier One Leverage Capital Required for Capital Adequacy | $ 85,606 | $ 84,390 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Excess Tier One Leverage Capital | $ 85,606 | $ 84,390 |
Excess Tier One Leverage Capital to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 107,008 | $ 105,487 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Company [Member] | ||
Total capital (to risk-weighted assets): | ||
Capital | $ 218,198 | $ 208,900 |
Capital to Risk Weighted Assets | 10.76% | 10.35% |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | $ 186,646 | $ 178,882 |
Tier One Risk Based Capital to Risk Weighted Assets | 9.20% | 8.86% |
Common Equity Tier One Capital [Abstract] | ||
Common Equity Tier One Capital | $ 186,646 | $ 178,882 |
Common Equity Tier One Capital Ratio | 9.20% | 8.86% |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | $ 186,646 | $ 178,882 |
Tier One Leverage Capital to Average Assets | 8.68% | 8.46% |
REGULATORY MATTERS - Additional
REGULATORY MATTERS - Additional Information (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Jan. 01, 2019 |
REGULATORY MATTERS | ||
Capital Conservative Buffer | 2.50% | |
Threshold Amount Subject To Federal Reserve | $ 3 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
COMMITMENTS AND CONTINGENCIES | ||
Fixed | $ 44,700 | $ 49,741 |
Variable | 341,993 | 333,468 |
Credit card arrangements | 9,641 | 11,148 |
Letters of credit | $ 17,186 | $ 17,121 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Interest Rate Lock Commitments [Member] | ||
Derivative, Notional Amount | $ 68.8 | $ 14.8 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Securities available for sale | |||
Mortgage servicing rights | $ 4,287 | $ 4,287 | $ 3,085 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Securities available for sale | |||
Mortgage servicing rights | 0 | 0 | |
Other investments | 0 | 0 | |
Significant Other Other Inputs (Level 2) | |||
Securities available for sale | |||
Mortgage servicing rights | 4,287 | 4,287 | |
Other investments | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Securities available for sale | |||
Mortgage servicing rights | 0 | 0 | |
Other investments | 7,332 | 4,933 | |
Corporate notes [Member] | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 42,365 | 62,955 | |
Corporate notes [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Corporate notes [Member] | Significant Other Other Inputs (Level 2) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 42,365 | 62,955 | |
Corporate notes [Member] | Significant Unobservable Inputs (Level 3) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Obligations of U.S. Government sponsored agencies | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 13,401 | 12,060 | |
Obligations of U.S. Government sponsored agencies | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Obligations of U.S. Government sponsored agencies | Significant Other Other Inputs (Level 2) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 13,401 | 12,060 | |
Obligations of U.S. Government sponsored agencies | Significant Unobservable Inputs (Level 3) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Obligations of states and political subdivisions [Member] | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 62,061 | 54,771 | |
Obligations of states and political subdivisions [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Obligations of states and political subdivisions [Member] | Significant Other Other Inputs (Level 2) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 62,061 | 54,771 | |
Obligations of states and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Mortgage-backed securities [Member] | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 54,243 | 51,720 | |
Mortgage-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 0 | 0 | |
Mortgage-backed securities [Member] | Significant Other Other Inputs (Level 2) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | 54,243 | 51,720 | |
Mortgage-backed securities [Member] | Significant Unobservable Inputs (Level 3) | |||
Securities available for sale | |||
Instruments Measured At Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value of assets measured on a recurring basis (Details) - Obligations of states and political subdivisions [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Total securities at beginning of period | $ 0 | $ 400 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases, issuance, and settlements | 0 | (400) |
Transfer in and/or out of level 3 | 0 | 0 |
Total securities at end of period | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair value of assets measured on a non-recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
OREO | $ 4,530 | $ 6,888 |
Impaired Loans, net of impairment reserve | 7,551 | 6,847 |
Assets, Fair Value Disclosure | 12,081 | 13,735 |
Fair Value, Measurements, Nonrecurring [Member] | ||
OREO | 4,530 | 6,888 |
Impaired Loans, net of impairment reserve | 7,551 | 6,847 |
Assets, Fair Value Disclosure | 12,081 | 13,735 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Impaired Loans, net of impairment reserve | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring [Member] | ||
OREO | 0 | 0 |
Impaired Loans, net of impairment reserve | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Significant Other Other Inputs (Level 2) | ||
Impaired Loans, net of impairment reserve | 0 | 0 |
Significant Other Other Inputs (Level 2) | Fair Value, Measurements, Nonrecurring [Member] | ||
OREO | 0 | 0 |
Impaired Loans, net of impairment reserve | 0 | 0 |
Assets, Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai_3
FAIR VALUE MEASUREMENTS - Fair value measurement on inputs and valuation techniques (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Third party appraisals, sales contracts or brokered price options | ||
Other real estate owned | Collateral discounts and estimated costs to sell | Collateral discounts and estimated costs to sell |
Third party appraisals, sales contracts or brokered price options | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Other real estate owned | 56 | 61 |
Third party appraisals, sales contracts or brokered price options | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Other real estate owned | 0 | 0 |
Third party appraisals, sales contracts or brokered price options | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Other real estate owned | 32.3 | 33.5 |
Third party appraisals and discounted cash flows | ||
Impaired Loans, Unobservable Inputs | Collateral discounts and discount rates | Collateral discounts and discount rates |
Third party appraisals and discounted cash flows | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Loans Held-for-sale, Measurement Input | 100 | 100 |
Third party appraisals and discounted cash flows | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Loans Held-for-sale, Measurement Input | 0 | 0 |
Third party appraisals and discounted cash flows | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||
Loans Held-for-sale, Measurement Input | 5.3 | 6.1 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Financial assets: | |||
Securities held to maturity | $ 46,988 | $ 44,803 | |
Securities available for sale | 172,070 | 181,506 | |
Loans, net | 7,551 | 6,847 | |
Mortgage servicing rights | 4,287 | 4,287 | $ 3,085 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 54,153 | 86,452 | |
Securities held to maturity | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Other investments, at cost | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Cash surrender value of life insurance | 25,105 | 24,945 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Securities sold under repurchase agreements | 0 | 0 | |
Notes Payable | 0 | 0 | |
Subordinated notes | 0 | 0 | |
Significant Other Other Inputs (Level 2) | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities held to maturity | 46,988 | 44,803 | |
Securities available for sale | 172,070 | 181,506 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Other investments, at cost | 0 | 0 | |
Mortgage servicing rights | 4,287 | 4,287 | |
Cash surrender value of life insurance | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Securities sold under repurchase agreements | 35,786 | 45,865 | |
Notes Payable | 48,792 | 49,790 | |
Subordinated notes | 18,585 | 18,622 | |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities held to maturity | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Loans held for sale | 2,659 | 587 | |
Loans, net | 1,774,641 | 1,723,542 | |
Other investments, at cost | 7,332 | 4,933 | |
Mortgage servicing rights | 0 | 0 | |
Cash surrender value of life insurance | 0 | 0 | |
Financial liabilities: | |||
Deposits | 1,821,582 | 1,783,638 | |
Securities sold under repurchase agreements | 0 | 0 | |
Notes Payable | 0 | 0 | |
Subordinated notes | 0 | 0 | |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 54,153 | 86,452 | |
Securities held to maturity | 43,732 | 43,734 | |
Securities available for sale | 172,070 | 181,506 | |
Loans held for sale | 2,659 | 587 | |
Loans, net | 1,752,275 | 1,724,947 | |
Other investments, at cost | 7,332 | 4,933 | |
Mortgage servicing rights | 4,287 | 4,287 | |
Cash surrender value of life insurance | 25,105 | 24,945 | |
Financial liabilities: | |||
Deposits | 1,847,209 | 1,843,311 | |
Securities sold under repurchase agreements | 35,786 | 45,865 | |
Notes Payable | 48,792 | 49,790 | |
Subordinated notes | 18,585 | 18,622 | |
Estimated Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 54,153 | 86,452 | |
Securities held to maturity | 46,988 | 44,803 | |
Securities available for sale | 172,070 | 181,506 | |
Loans held for sale | 2,659 | 587 | |
Loans, net | 1,774,641 | 1,723,542 | |
Other investments, at cost | 7,332 | 4,933 | |
Mortgage servicing rights | 4,287 | 4,287 | |
Cash surrender value of life insurance | 25,105 | 24,945 | |
Financial liabilities: | |||
Deposits | 1,821,582 | 1,783,638 | |
Securities sold under repurchase agreements | 35,786 | 45,865 | |
Notes Payable | 48,792 | 49,790 | |
Subordinated notes | $ 18,585 | $ 18,622 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
STOCK BASED COMPENSATION | ||
Restricted Stock, Shares Outstanding at beginning of period | 50,676 | 51,776 |
Restricted Stock, Shares Granted | 25,107 | 17,015 |
Restricted Stock, Shares Vested | (16,800) | (16,039) |
Restricted Stock, Shares Forfeited or cancelled | (176) | |
Restricted Stock, Shares Outstanding at end of period | 58,983 | 52,576 |
Weighted-Average Grant-Date Fair Value, Outstanding at beginning of period | $ 43.03 | $ 34.27 |
Weighted-Average Grant-Date Fair Value, Granted | 61.49 | 56.62 |
Weighted-Average Grant-Date Fair Value, Vested | 37.38 | 28.82 |
Weighted-Average Grant-Date Fair Value, Forfeited or cancelled | 22.90 | |
Weighted-Average Grant-Date Fair Value, Outstanding at end of period | $ 52.50 | $ 43.31 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2.9 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 2 months 27 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0.6 | ||
Restricted Stock or Unit Expense | $ 0.2 | $ 0.2 | |
2011 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 659,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 202,569 | 177,462 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
LEASES | ||||
Amortization of ROU Assets - Finance Leases | $ 10 | $ 16 | ||
Interest on Lease Liabilities - Finance Leases | 23 | 16 | ||
Operating Lease Cost (Cost resulting from lease payments) | 33 | 32 | ||
ROU Assets - Operating Leases at beginning of period | 1,699 | |||
New ROU Assets - Operating Leases | 1,689 | 1,744 | $ 1,689 | $ 1,744 |
ROU Assets - Operating Leases at March 31, | $ 1,689 | $ 1,744 | ||
Weighted Average Lease Term (Years) - Operating Leases | 31 years 6 months 15 days | 31 years 8 months 5 days | ||
Weighted Average Discount Rate - Operating Leases | 5.50% | 5.50% |
LEASES - Operating Lease (Detai
LEASES - Operating Lease (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating lease payments due: | |
Within one year | $ 136 |
After one but within two years | 136 |
After two but within three years | 103 |
After three but within four years | 86 |
After four years but within five years | 86 |
After five years | 3,389 |
Total undiscounted cash flows | 3,936 |
Discount on cash flows | (2,247) |
Total operating lease liabilities | $ 1,689 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Events $ in Millions | May 11, 2020USD ($)loan |
Subsequent Events | |
Number of secured funding loans | loan | 1,635 |
Secured funding of loans | $ | $ 266.8 |