Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GERMAN AMERICAN BANCORP, INC. | ||
Entity Central Index Key | 714,395 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | GABC | ||
Entity Common Stock, Shares Outstanding | 22,934,253 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 716,866,972 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and Due from Banks | $ 58,233 | $ 48,467 | |
Federal Funds Sold and Other Short-term Investments | 12,126 | 16,349 | |
Cash and Cash Equivalents | 70,359 | 64,816 | |
Securities Available-for-Sale, at Fair Value | 740,994 | 709,786 | |
Loans Held-for-Sale, at Fair Value | 6,719 | 15,273 | |
Loans | 2,145,019 | 1,993,404 | |
Less: | |||
Unearned Income | (3,381) | (3,449) | |
Allowance for Loan Losses | (15,694) | (14,808) | |
Loans, Net | 2,125,944 | 1,975,147 | |
Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost | 13,048 | 13,048 | |
Premises, Furniture and Equipment, Net | 54,246 | 48,230 | |
Other Real Estate | 54 | 242 | |
Goodwill | 54,058 | 54,058 | |
Intangible Assets | 2,102 | 2,835 | |
Company Owned Life Insurance | 46,385 | 46,642 | |
Accrued Interest Receivable and Other Assets | 30,451 | 25,917 | |
TOTAL ASSETS | 3,144,360 | 2,955,994 | |
LIABILITIES | |||
Non-interest-bearing Demand Deposits | 606,134 | 571,989 | |
Interest-bearing Demand, Savings, and Money Market Accounts | 1,490,033 | 1,399,381 | |
Time Deposits | 387,885 | 378,181 | |
Total Deposits | 2,484,052 | 2,349,551 | |
FHLB Advances and Other Borrowings | 275,216 | 258,114 | |
Accrued Interest Payable and Other Liabilities | 20,521 | 18,062 | |
TOTAL LIABILITIES | 2,779,789 | 2,625,727 | |
Commitments and Contingencies (Note 14) | |||
SHAREHOLDERS’ EQUITY | |||
Preferred Stock, no par value; 500,000 shares authorized, no shares issued | 0 | 0 | |
Common Stock, no par value, $1 stated value; 45,000,000 shares authorized (1) | 22,934 | 15,261 | |
Additional Paid-in Capital | 165,288 | 171,744 | |
Retained Earnings | 178,969 | 149,666 | |
Accumulated Other Comprehensive (Loss) Income | (2,620) | (6,404) | |
TOTAL SHAREHOLDERS’ EQUITY | 364,571 | 330,267 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,144,360 | $ 2,955,994 | |
End of period shares issued (in shares) | [1] | 22,934,403 | 22,904,157 |
[1] | Share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Statement of Financial Position [Abstract] | |||
Preferred Stock, shares authorized (in shares) | 500,000 | 500,000 | |
Preferred Stock, shares issued (in shares) | 0 | 0 | |
Common Stock, stated value (in dollars per share) | $ / shares | $ 1 | $ 1 | |
Common Stock, shares authorized (in shares) | [1] | 45,000,000 | 45,000,000 |
End of period shares outstanding (in shares) | [1] | 22,934,403 | 22,904,157 |
[1] | Share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. |
Consolidated Statements of Inco
Consolidated Statements of Income $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | ||
INTEREST INCOME | ||||
Interest and Fees on Loans | $ 91,745 | $ 86,202 | $ 66,740 | |
Interest on Federal Funds Sold and Other Short-term Investments | 134 | 74 | 13 | |
Interest and Dividends on Securities: | ||||
Taxable | 10,898 | 9,638 | 9,017 | |
Non-taxable | 8,253 | 7,451 | 5,850 | |
TOTAL INTEREST INCOME | 111,030 | 103,365 | 81,620 | |
INTEREST EXPENSE | ||||
Interest on Deposits | 7,094 | 5,187 | 3,976 | |
Interest on FHLB Advances and Other Borrowings | 4,027 | 3,274 | 2,092 | |
TOTAL INTEREST EXPENSE | 11,121 | 8,461 | 6,068 | |
NET INTEREST INCOME | 99,909 | 94,904 | 75,552 | |
Provision for Loan Losses | 1,750 | 1,200 | 0 | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 98,159 | 93,704 | 75,552 | |
NON-INTEREST INCOME | ||||
Trust and Investment Product Fees | 5,272 | 4,644 | 3,957 | |
Service Charges on Deposit Accounts | 6,178 | 5,973 | 4,826 | |
Insurance Revenues | 7,979 | 7,741 | 7,489 | |
Company Owned Life Insurance | 1,341 | 987 | 846 | |
Debit Interchange Fee Income | 4,567 | 3,627 | 3,110 | |
Other Operating Income | 2,641 | 3,703 | 3,532 | |
Net Gains on Sales of Loans | 3,280 | 3,359 | 2,959 | |
Net Gains on Securities | 596 | 1,979 | 725 | |
TOTAL NON-INTEREST INCOME | 31,854 | 32,013 | 27,444 | |
NON-INTEREST EXPENSE | ||||
Salaries and Employee Benefits | 46,642 | 43,961 | 35,042 | |
Occupancy Expense | 6,609 | 6,297 | 4,939 | |
Furniture and Equipment Expense | 2,621 | 2,261 | 1,873 | |
FDIC Premiums | 954 | 1,151 | 1,144 | |
Data Processing Fees | 4,276 | 5,686 | 3,541 | |
Professional Fees | 2,817 | 3,672 | 2,661 | |
Advertising and Promotion | 3,543 | 2,657 | 3,669 | |
Intangible Amortization | 942 | 1,062 | 790 | |
Other Operating Expenses | 9,399 | 9,840 | 7,667 | |
TOTAL NON-INTEREST EXPENSE | 77,803 | 76,587 | 61,326 | |
Income before Income Taxes | 52,210 | 49,130 | 41,670 | |
Income Tax Expense | 11,534 | 13,946 | 11,606 | |
NET INCOME | $ 40,676 | $ 35,184 | $ 30,064 | |
Basic Earnings per Share (in USD per share) | $ / shares | [1],[2] | $ 1.77 | $ 1.57 | $ 1.51 |
Diluted Earnings per Share (in USD per share) | $ / shares | [1],[2] | 1.77 | 1.57 | 1.51 |
Dividends per Share (in usd per share) | $ / shares | [1] | $ 0.52 | $ 0.48 | $ 0.45 |
[1] | Per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. | |||
[2] | Share and per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 40,676 | $ 35,184 | $ 30,064 |
Unrealized Gains (Losses) on Securities: | |||
Unrealized Holding Gain (Loss) Arising During the Period | 7,364 | (13,830) | 2,153 |
Reclassification Adjustment for Gains Included in Net Income | (596) | (1,979) | (725) |
Tax Effect | (2,377) | 5,607 | (496) |
Net of Tax | 4,391 | (10,202) | 932 |
Defined Benefit Pension Plans and Postretirement Benefit Obligation | |||
Net (Loss) Arising During the Period | (226) | (24) | (22) |
Reclassification Adjustment for Amortization of Prior Service Cost and Net Loss Included in Net Periodic Pension Cost | 8 | 6 | 5 |
Tax Effect | 80 | 4 | 7 |
Net of Tax | (138) | (14) | (10) |
Total Other Comprehensive Income (Loss) | 4,253 | (10,216) | 922 |
COMPREHENSIVE INCOME | $ 44,929 | $ 24,968 | $ 30,986 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
Beginning Balances (in shares) at Dec. 31, 2014 | 13,215,800 | |||||
Beginning Balance at Dec. 31, 2014 | $ 228,824 | $ 13,216 | $ 108,660 | $ 104,058 | $ 2,890 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 30,064 | 30,064 | ||||
Other Comprehensive Income (Loss) | 922 | 922 | ||||
Cash Dividends ($.52, $.48, $.45 per share) | [1] | (9,010) | (9,010) | |||
Issuance of Common Stock for: | ||||||
Exercise of Stock Options (in shares) | 12,985 | |||||
Exercise of Stock Options | 49 | $ 13 | 36 | |||
Restricted Share Grants (in shares) | 34,826 | |||||
Restricted Share Grants | 963 | $ 35 | 928 | |||
Employee Stock Purchase Plan (in shares) | 15,213 | |||||
Employee Stock Purchase Plan | 447 | $ 15 | 432 | |||
Income Tax Benefit From Restricted Share Vesting | 89 | 89 | ||||
Ending Balances (in shares) at Dec. 31, 2015 | 13,278,824 | |||||
Ending Balance at Dec. 31, 2015 | 252,348 | $ 13,279 | 110,145 | 125,112 | 3,812 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 35,184 | 35,184 | ||||
Other Comprehensive Income (Loss) | (10,216) | (10,216) | ||||
Cash Dividends ($.52, $.48, $.45 per share) | [1] | (10,630) | (10,630) | |||
Issuance of Common Stock for: | ||||||
Exercise of Stock Options (in shares) | 4,166 | |||||
Exercise of Stock Options | 55 | $ 4 | 51 | |||
Acquisition of River Valley Bancorp (in shares) | 1,942,429 | |||||
Acquisition of River Valley Bancorp | 61,919 | $ 1,942 | 59,977 | |||
Restricted Share Grants (in shares) | 36,012 | |||||
Restricted Share Grants | 1,407 | $ 36 | 1,371 | |||
Income Tax Benefit From Restricted Share Vesting | 200 | 200 | ||||
Ending Balances (in shares) at Dec. 31, 2016 | 15,261,431 | |||||
Ending Balance at Dec. 31, 2016 | 330,267 | $ 15,261 | 171,744 | 149,666 | (6,404) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 40,676 | 40,676 | ||||
Other Comprehensive Income (Loss) | 4,253 | 4,253 | ||||
Reclass Upon Adoption of ASU 2018-02 (See Note 1 - Summary of Significant Accounting Policies) | 0 | 469 | (469) | |||
Cash Dividends ($.52, $.48, $.45 per share) | [1] | (11,842) | (11,842) | |||
Issuance of Common Stock for: | ||||||
3-for-2 Stock Split (in shares) | 7,642,726 | |||||
3-for-2 Stock Split | (29) | $ 7,643 | (7,672) | |||
Restricted Share Grants (in shares) | 30,246 | |||||
Restricted Share Grants | 1,246 | $ 30 | 1,216 | |||
Income Tax Benefit From Restricted Share Vesting | 0 | 0 | ||||
Ending Balances (in shares) at Dec. 31, 2017 | 22,934,403 | |||||
Ending Balance at Dec. 31, 2017 | $ 364,571 | $ 22,934 | $ 165,288 | $ 178,969 | $ (2,620) | |
[1] | Per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, (in dollars per share) | $ 0.52 | $ 0.48 | $ 0.45 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 40,676 | $ 35,184 | $ 30,064 |
Adjustments to Reconcile Net Income to Net Cash from Operating Activities: | |||
Net Amortization on Securities | 3,543 | 3,675 | 2,548 |
Depreciation and Amortization | 4,687 | 4,315 | 4,264 |
Loans Originated for Sale | (122,518) | (138,192) | (137,687) |
Proceeds from Sales of Loans Held-for-Sale | 134,316 | 137,307 | 136,088 |
Provision for Loan Losses | 1,750 | 1,200 | 0 |
Gain on Sale of Loans, net | (3,280) | (3,359) | (2,959) |
Gain on Securities, net | (596) | (1,979) | (725) |
Loss (Gain) on Sales of Other Real Estate and Repossessed Assets | (17) | (55) | 63 |
Loss on Disposition and Donation of Premises and Equipment | 870 | 5 | 389 |
Post Retirement Medical Benefit | (34) | 7 | 15 |
Increase in Cash Surrender Value of Company Owned Life Insurance | (1,370) | (1,068) | (689) |
Equity Based Compensation | 1,246 | 1,407 | 963 |
Excess Tax Benefit from Restricted Share Grant | 240 | 200 | 89 |
Change in Assets and Liabilities: | |||
Interest Receivable and Other Assets | (4,528) | 5,813 | 172 |
Interest Payable and Other Liabilities | (110) | (2,547) | (1,328) |
Net Cash from Operating Activities | 54,875 | 41,913 | 31,267 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of Other Short-term Investments | 0 | (1,000) | 0 |
Proceeds from Maturity of Other Short-term Investments | 0 | 1,992 | 100 |
Proceeds from Maturities, Calls, Redemptions of Securities Available-for-Sale | 79,955 | 103,301 | 90,702 |
Proceeds from Sales of Securities Available-for-Sale | 49,459 | 165,102 | 18,999 |
Purchase of Securities Available-for-Sale | (156,802) | (225,456) | (116,942) |
Proceeds from Maturities of Securities Held-to-Maturity | 0 | 95 | 89 |
Purchase of Federal Home Loan Bank Stock | 0 | (1,350) | (2,395) |
Proceeds from Redemption of Federal Home Loan Bank Stock | 0 | 0 | 864 |
Purchase of Loans | (5,547) | (5,383) | (9,895) |
Proceeds from Sales of Loans | 1,106 | 2,029 | 0 |
Loans Made to Customers, net of Payments Received | (149,336) | (106,198) | (108,007) |
Proceeds from Sales of Other Real Estate | 1,435 | 1,429 | 1,170 |
Property and Equipment Expenditures | (11,183) | (5,234) | (1,614) |
Proceeds from Sales of Property and Equipment | 6 | 0 | 0 |
Proceeds from Life Insurance | 1,627 | 0 | 0 |
Acquisition of River Valley Bancorp | 0 | (1,016) | 0 |
Net Cash from Investing Activities | (189,280) | (71,689) | (126,929) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Change in Deposits | 134,737 | 118,231 | 46,630 |
Change in Short-term Borrowings | (4,054) | (40,163) | 36,244 |
Advances in Long-term Debt | 75,000 | 75,000 | |
Repayments of Long-term Debt | (53,864) | (24,910) | (44,135) |
Issuance (Retirement) of Common Stock | (29) | 55 | 49 |
Employee Stock Purchase Plan | 447 | ||
Dividends Paid | (11,842) | (10,630) | (9,010) |
Net Cash from Financing Activities | 139,948 | 42,583 | 105,225 |
Net Change in Cash and Cash Equivalents | 5,543 | 12,807 | 9,563 |
Cash and Cash Equivalents at Beginning of Year | 64,816 | 52,009 | 42,446 |
Cash and Cash Equivalents at End of Year | 70,359 | 64,816 | 52,009 |
Cash Paid During the Year for | |||
Interest | 10,852 | 8,348 | 6,146 |
Income Taxes | 12,462 | 9,254 | 9,083 |
Supplemental Non Cash Disclosures (See Note 18 for Business Combinations) | |||
Loans Transferred to Other Real Estate | 1,230 | 565 | 1,046 |
Reclassification of Land to Other Assets | $ 330 | $ 664 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business and Basis of Presentation German American Bancorp, Inc's. operations are primarily comprised of three business segments: core banking, trust and investment advisory services, and insurance operations. The accounting and reporting policies of German American Bancorp, Inc. and its subsidiaries conform to U.S. generally accepted accounting principles. The more significant policies are described below. The consolidated financial statements include the accounts of the Company and its subsidiaries after elimination of all material intercompany accounts and transactions. Certain prior year amounts have been reclassified to conform with current classifications. Reclassifications had no impact on shareholders' equity or net income. To prepare financial statements in conformity with accounting principles generally accepted in the United States of America management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Securities Securities classified as available-for-sale are securities that the Company intends to hold for an indefinite period of time, but not necessarily until maturity. These include securities that management may use as part of its asset/liability strategy, or that may be sold in response to changes in interest rates, changes in prepayment risk, or similar reasons. Equity securities with readily determinable fair values are classified as available-for-sale. Equity securities that do not have readily determinable fair values are carried at historical cost and evaluated for impairment on a periodic basis. Securities classified as available-for-sale are reported at fair value with unrealized gains or losses included as a separate component of equity, net of tax. Securities classified as held-to-maturity are securities that the Company has both the ability and positive intent to hold to maturity. Securities held-to-maturity are carried at amortized cost. Premium amortization is deducted from, and discount accretion is added to, interest income using the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on trade date and are computed on the identified securities method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Fair value is determined based on collateral value and prevailing market prices for loans with similar characteristics. Net unrealized gains or losses are recorded through earnings. Mortgage loans held for sale are generally sold on a servicing released basis. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Loans Loans that management originates and has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term without anticipating prepayments. All classes of loans are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection. Certain Purchased Loans The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or special mention. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors. Loan impairment is reported when full repayment under the terms of the loan is not expected. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Commercial and industrial loans, commercial real estate loans, and agricultural loans are evaluated individually for impairment. Smaller balance homogeneous loans are evaluated for impairment in total. Such loans include real estate loans secured by one-to-four family residences and loans to individuals for household, family and other personal expenditures. Individually evaluated loans on non-accrual are generally considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported at the fair value of the collateral net of disposition costs. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and risk classifications and is based on the actual loss history experienced by the Company over a 20 quarter average. The Company separately assigns allocations for substandard and special mention commercial and agricultural credits as well as other categories of loans based on migration analysis techniques. This actual loss experience is supplemented with other external and internal factors based on the risks present for each portfolio segment. These factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Commercial Loans and Retail Loans. Commercial Loans have been classified according to the following risk characteristics: Commercial and Industrial Loans and Leases, Commercial Real Estate, and Agricultural Loans. Commercial and Industrial loans are primarily based on the cash flows of the business operations and secured by assets being financed and other assets such as accounts receivable and inventory. Commercial Real Estate Loans and Agricultural Loans are primarily based on cash flow of the borrower and their business and further secured by real estate. All types of commercial and agricultural (real estate secured and non-real estate) may also come with personal guarantees of the borrowers and business owners. Retail Loans have been classified according to the following risk characteristics: Home Equity Loans, Consumer Loans and Residential Mortgage Loans. Retail loans are generally dependent on personal income of the customer, and repayment is dependent on borrower’s personal cash flow and employment status which can be affected by general economic conditions. Additionally, collateral values may fluctuate based on the impact of economic conditions on residential real estate values and other consumer type assets such as automobiles. Loans or portions of loans shall be charged off when there is a distinct probability of loss identified. A distinct probability of loss exists when it has been determined that any remaining sources of repayment are insufficient to cover all outstanding principal. The probable loss is immediately calculated based on the value of the remaining sources of repayment and charged to the allowance for loan loss. Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts when available or, alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Through the acquisition of River Valley Bancorp in 2016, German American acquired a portfolio of servicing rights on mortgage loans. The fair value of mortgage servicing rights were $547 and $611 at December 31, 2017 and 2016, respectively. On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. Servicing fee income is reported on the income statement as other operating income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of mortgage servicing right is netted against loan servicing fee income. Federal Home Loan Bank (FHLB) Stock The Bank is a member of the FHLB of Indianapolis. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Premises, Furniture and Equipment Land is carried at cost. Premises, furniture, and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging generally from 10 to 40 years. Furniture, fixtures, and equipment are depreciated using the straight-line method with useful lives ranging generally from 3 to 10 years. Other Real Estate Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Goodwill and Other Intangible Assets Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Company’s balance sheet. Other intangible assets consist of core deposit and acquired customer relationship intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives, which range from 6 to 10 years. Company Owned Life Insurance The Company has purchased life insurance policies on certain directors and executives. This life insurance is recorded at its cash surrender value or the amount that can be realized, which considers any adjustments or changes that are probable at settlement. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe currently that there are any such matters that will have a material impact on the financial statements. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Restrictions on Cash At December 31, 2017 and 2016, respectively, the Company was required to have $10,967 and $11,659 on deposit with the Federal Reserve, or as cash on hand. Long-term Assets Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Stock Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and changes in unrecognized amounts in pension and other postretirement benefits, which are also recognized as a separate component of equity. Income Taxes Income tax is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax liabilities and assets are determined at each balance sheet date and are the result of differences in the financial statement and tax bases of assets and liabilities. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Retirement Plans Pension expense under the suspended defined benefit plan is the net of interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. Earnings Per Share Earnings per share are based on net income divided by the weighted average number of shares outstanding during the period. Diluted earnings per share show the potential dilutive effect of additional common shares issuable under the Company’s stock based compensation plans. Earnings per share are retroactively restated for stock splits and stock dividends. Cash Flow Reporting The Company reports net cash flows for customer loan transactions, deposit transactions, deposits made with other financial institutions and short-term borrowings. Cash and cash equivalents are defined to include cash on hand, demand deposits in other institutions and Federal Funds Sold. Fair Values of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 15. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the "FASB") amended existing guidance (ASU 2014-09 Revenue From Contracts With Customers (Topic 606)) related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments allow for one of two transition methods: full retrospective or modified retrospective. The full retrospective approach requires application to all periods presented. The modified retrospective transition requires application to uncompleted contracts at the date of adoption. Periods prior to the date of adoption are not retrospectively revised, but a cumulative effect is recognized at the date of initial application on uncompleted contracts. The Company adopted the new guidance effective January 1, 2018 and intends to utilize the modified retrospective method. The Company established a task force for evaluating the impact of ASU 2014-09 on the Company's consolidated results. The new standard did not result in a material change in the manner in which it recognizes revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. Revenue streams within Other Noninterest Income that the Company evaluated primarily included Service Charges on Deposit Accounts, Trust and Investment Product Fees, and Insurance Revenues. This pronouncement will not have a material impact on the Company's consolidated results of operations and financial condition as the Company's core revenue does not fall under this guidance. Even though this pronouncement will not have a material impact on the Company's consolidated results, the Company will have additional disclosures in its Form 10-Q for the first quarter of 2018 as required by this guidance. In January 2016, the FASB amended existing guidance (ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities) that requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. It requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It eliminates that requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company notes that the impact of adoption is to carry the equity security at fair value through the income statement or at cost, less impairment when fair value is not readily determinable, with observable price changes being recognized in earnings. The Company doesn't expect the impact to have a material effect on the Company's operating results or financial condition; however, it will impact the fair value disclosures included in Note 15 - Fair Value. For additional information on this equity security, see Note 2 - Securities. In February 2016, the FASB amended existing guidance (ASU No. 2016-02, Leases (Topic 842)) that requires lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. These amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Based on our leases outstanding as of December 31, 2017, the Company does not expect this new guidance to have a material impact on the consolidated results of operation. However as a result of this new guidance, the Company anticipates an estimated increase in its Consolidated Balance Sheet of approximately $6,000 . This impact will vary based on the Company's future decisions to enter into new lease agreements or exit/renew current lease agreements prior to the date of implementation. In June 2016, the FASB issued guidance (ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326)) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. This standard will be effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Transition: • For debt securities with other-than-temporary impairment (OTTI), the guidance will be applied prospectively. • Existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. • For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has formed a CECL committee that is assessing data and system needs in order to evaluate the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but can not estimate the amount at this time. In August 2016, the FASB issued ASU (ASU No. 2016-15, Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments) to address the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows including the following: • Debt Prepayment or Debt Extinguishment Costs; • Settlement of Zero-Coupon Bonds or Debt with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate; • Contingent Consideration payments Made Soon After a Business Combination; • Proceeds From the Settlement of Insurance Claims; • Proceeds From the Settlement of BOLI and COLI Policies; • Distributions Received From Equity Method Investees; • Beneficial Interests in Securitization Transactions; and • Application of the Predominance Principle. These amendments are effective for public business entities beginning January 1, 2018. This guidance currently has no material impact on the Company's Consolidated Statements of Cash Flows; however, the Company will continue to monitor it going forward. In March 2017, the FASB amended existing guidance (ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20)) to amend the amortization period for certain purchased callable debt securities held at a premium. The amortization period has been shortened to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. These amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company early adopted this guidance in 2017 and it did not have a material impact on the Company's operating results or financial condition. In January 2018, the FASB issued new guidance (ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220)) to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. This amendment is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company early adopted this guidance in 2017 and it did not have a material impact on the Company's operating results or financial condition. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Securities | Securities The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of Securities Available-for-Sale were as follows: Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 2017 Obligations of State and Political Subdivisions $ 267,437 $ 6,733 $ (861 ) $ 273,309 MBS/CMO – Residential 476,205 416 (9,289 ) 467,332 Equity Securities 353 — — 353 Total $ 743,995 $ 7,149 $ (10,150 ) $ 740,994 2016 Obligations of State and Political Subdivisions $ 247,350 $ 3,847 $ (3,678 ) $ 247,519 MBS/CMO - Residential 471,852 480 (10,418 ) 461,914 Equity Securities 353 — — 353 Total $ 719,555 $ 4,327 $ (14,096 ) $ 709,786 Equity securities that do not have readily determinable fair values are included in the above totals and are evaluated for impairment on a periodic basis. All mortgage-backed securities in the above table are residential mortgage-backed securities and guaranteed by government sponsored entities. The amortized cost and fair value of Securities at December 31, 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed and Equity Securities are not due at a single maturity date and are shown separately. Amortized Cost Fair Value Securities Available-for-Sale: Due in one year or less $ 2,706 $ 2,739 Due after one year through five years 23,789 24,531 Due after five years through ten years 78,661 81,215 Due after ten years 162,281 164,824 MBS/CMO - Residential 476,205 467,332 Equity Securities 353 353 Total $ 743,995 $ 740,994 2017 2016 2015 Proceeds from the Sales of Securities are summarized below: Available- for-Sale Available- for-Sale Available- for-Sale Proceeds from Sales $ 49,459 $ 165,102 $ 18,999 Gross Gains on Sales 596 1,979 725 Income Taxes on Gross Gains 209 693 254 The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $165,404 and $186,572 as of December 31, 2017 and 2016, respectively. Below is a summary of securities with unrealized losses as of year-end 2017 and 2016, presented by length of time the securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss At December 31, 2017 Obligations of State and Political Subdivisions $ 33,230 $ (237 ) $ 24,161 $ (624 ) $ 57,391 $ (861 ) MBS/CMO - Residential 172,354 (2,048 ) 250,520 (7,241 ) 422,874 (9,289 ) Equity Securities — — — — — — Total $ 205,584 $ (2,285 ) $ 274,681 $ (7,865 ) $ 480,265 $ (10,150 ) Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss At December 31, 2016 Obligations of State and Political Subdivisions $ 108,918 $ (3,678 ) $ — $ — $ 108,918 $ (3,678 ) MBS/CMO - Residential 356,040 (8,782 ) 47,271 (1,636 ) 403,311 (10,418 ) Equity Securities — — — — — — Total $ 464,958 $ (12,460 ) $ 47,271 $ (1,636 ) $ 512,229 $ (14,096 ) Securities are written down to fair value when a decline in fair value is not considered temporary. In estimating other-than-temporary losses, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The Company doesn’t intend to sell or expect to be required to sell these securities, and the decline in fair value is largely due to changes in market interest rates, therefore, the Company does not consider these securities to be other-than-temporarily impaired. All mortgage-backed securities and collateralized mortgages obligations (MBS/CMO - Residential) in the Company’s portfolio are guaranteed by government sponsored entities, are investment grade, and are performing as expected. The Company’s equity securities consist of one non-controlling investment in a single banking organization at December 31, 2017 and 2016. The original investment totaled $1,350 and other-than-temporary impairment was previously recorded totaling $997 . When a decline in fair value below cost is deemed to be other-than-temporary, the unrealized loss must be recognized as a charge to earnings. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. The notional amounts of these interest rate swaps and the offsetting counterparty derivative instruments were $87.8 million and $67.9 million at December 31, 2017 and 2016, respectively. These interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions with approved, reputable, independent counterparties with substantially matching terms. The agreements are considered stand alone derivatives and changes in the fair value of derivatives are reported in earnings as non-interest income. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Company’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. There are provisions in the agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, the Company minimizes credit risk through credit approvals, limits, and monitoring procedures. The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of: December 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Included in Other Assets: Interest Rate Swaps $ 87,788 $ 1,564 $ 67,902 $ 1,291 Included in Other Liabilities: Interest Rate Swaps $ 87,788 $ 1,633 $ 67,902 $ 1,238 The following table presents the effect of derivative instruments on the Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Interest Rate Swaps: Included in Other Income $ 478 $ 1,207 $ 491 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | Loans Loans were comprised of the following classifications at December 31: 2017 2016 Commercial: Commercial and Industrial Loans and Leases $ 486,668 $ 457,372 Commercial Real Estate Loans 926,729 856,094 Agricultural Loans 333,227 303,128 Retail: Home Equity Loans 152,187 133,575 Consumer Loans 67,475 59,945 Residential Mortgage Loans 178,733 183,290 Subtotal 2,145,019 1,993,404 Less: Unearned Income (3,381 ) (3,449 ) Allowance for Loan Losses (15,694 ) (14,808 ) Loans, net $ 2,125,944 $ 1,975,147 The following tables present the activity in the allowance for loan losses by portfolio class for the years ended December 31, 2017, 2016, and 2015: Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total December 31, 2017 Beginning Balance $ 3,725 $ 5,452 $ 4,094 $ 283 $ 235 $ 329 $ 690 $ 14,808 Provision for Loan Losses 1,147 (689 ) 840 78 517 44 (187 ) 1,750 Recoveries 14 48 9 8 272 63 — 414 Loans Charged-off (151 ) (220 ) (49 ) (39 ) (726 ) (93 ) — (1,278 ) Ending Balance $ 4,735 $ 4,591 $ 4,894 $ 330 $ 298 $ 343 $ 503 $ 15,694 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total December 31, 2016 Beginning Balance $ 4,242 $ 6,342 $ 2,115 $ 383 $ 230 $ 414 $ 712 $ 14,438 Provision for Loan Losses (483 ) (846 ) 2,000 33 273 245 (22 ) 1,200 Recoveries 32 10 1 3 208 16 — 270 Loans Charged-off (66 ) (54 ) (22 ) (136 ) (476 ) (346 ) — (1,100 ) Ending Balance $ 3,725 $ 5,452 $ 4,094 $ 283 $ 235 $ 329 $ 690 $ 14,808 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total December 31, 2015 Beginning Balance $ 4,627 $ 7,273 $ 1,123 $ 246 $ 354 $ 622 $ 684 $ 14,929 Provision for Loan Losses (451 ) (688 ) 992 160 (48 ) 7 28 — Recoveries 102 107 — 10 236 18 — 473 Loans Charged-off (36 ) (350 ) — (33 ) (312 ) (233 ) — (964 ) Ending Balance $ 4,242 $ 6,342 $ 2,115 $ 383 $ 230 $ 414 $ 712 $ 14,438 In determining the adequacy of the allowance for loan loss, general allocations are made for pools of loans, including non-classified loans, homogeneous portfolios of consumer and residential real estate loans, and loans within certain industry categories believed to present unique risk of loss. General allocations of the allowance are primarily made based on historical averages for loan losses for these portfolios, judgmentally adjusted for current economic factors and portfolio trends. Loan impairment is reported when full repayment under the terms of the loan is not expected. This methodology is used for all loans, including loans acquired with deteriorated credit quality if such loans perform worse than what was expected at the time of acquisition. For purchased loans, the assessment is made at the time of acquisition as well as over the life of loan. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Commercial and industrial loans, commercial real estate loans, and agricultural loans are evaluated individually for impairment. Smaller balance homogeneous loans are evaluated for impairment in total. Such loans include real estate loans secured by one-to-four family residences and loans to individuals for household, family and other personal expenditures. Individually evaluated loans on non-accrual are generally considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Specific allocations on impaired loans are determined by comparing the loan balance to the present value of expected cash flows or expected collateral proceeds. Allocations are also applied to categories of loans not considered individually impaired but for which the rate of loss is expected to be greater than historical averages, including non-performing consumer or residential real estate loans. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of December 31, 2017 and 2016: December 31, 2017 Total Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Allowance for Loan Losses: Ending Allowance Balance Attributable to Loans: Individually Evaluated for Impairment $ 2,228 $ 1,399 $ 829 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 13,455 3,333 3,759 4,894 330 298 338 503 Acquired with Deteriorated Credit Quality 11 3 3 — — — 5 — Total Ending Allowance Balance $ 15,694 $ 4,735 $ 4,591 $ 4,894 $ 330 $ 298 $ 343 $ 503 Loans: Loans Individually Evaluated for Impairment $ 11,633 $ 5,918 $ 5,552 $ 163 $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 2,133,752 481,152 917,036 336,849 152,757 67,647 178,311 n/m (2) Loans Acquired with Deteriorated Credit Quality 9,117 988 6,452 789 — — 888 n/m (2) Total Ending Loans Balance (1) $ 2,154,502 $ 488,058 $ 929,040 $ 337,801 $ 152,757 $ 67,647 $ 179,199 n/m (2) (1) Total recorded investment in loans includes $9,483 in accrued interest. (2) n/m = not meaningful December 31, 2016 Total Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Allowance for Loan Losses: Ending Allowance Balance Attributable to Loans: Individually Evaluated for Impairment $ 255 $ 24 $ 231 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 14,448 3,698 5,172 4,046 283 230 329 690 Acquired with Deteriorated Credit Quality 105 3 49 48 — 5 — — Total Ending Allowance Balance $ 14,808 $ 3,725 $ 5,452 $ 4,094 $ 283 $ 235 $ 329 $ 690 Loans: Loans Individually Evaluated for Impairment $ 1,239 $ 113 $ 832 $ 294 $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 1,989,128 456,769 849,510 305,946 134,032 60,046 182,825 n/m (2) Loans Acquired with Deteriorated Credit Quality 11,048 1,656 7,688 706 — 53 945 n/m (2) Total Ending Loans Balance (1) $ 2,001,415 $ 458,538 $ 858,030 $ 306,946 $ 134,032 $ 60,099 $ 183,770 n/m (2) (1) Total recorded investment in loans includes $8,011 in accrued interest. (2) n/m = not meaningful The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2017 and 2016: Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated December 31, 2017 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 1,205 $ 1,166 $ — Commercial Real Estate Loans 1,812 1,495 — Agricultural Loans 919 749 — Subtotal 3,936 3,410 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 4,804 4,763 1,402 Commercial Real Estate Loans 4,489 4,465 832 Agricultural Loans — — — Subtotal 9,293 9,228 2,234 Total $ 13,229 $ 12,638 $ 2,234 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 1,255 $ 797 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 252 $ 208 $ 6 (1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts. Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated December 31, 2016 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 85 $ 29 $ — Commercial Real Estate Loans 1,278 784 — Agricultural Loans 356 294 — Subtotal 1,719 1,107 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 148 107 27 Commercial Real Estate Loans 839 827 280 Agricultural Loans 588 497 48 Subtotal 1,575 1,431 355 Total $ 3,294 $ 2,538 $ 355 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 1,018 $ 531 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 910 $ 768 $ 100 (1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts. The following tables present loans individually evaluated for impairment by class of loans for the years ended December 31, 2017, 2016 and 2015: Average Recorded Investment Interest Income Recognized Cash Basis Recognized December 31, 2017 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 635 $ 27 $ 2 Commercial Real Estate Loans 1,184 57 29 Agricultural Loans 690 24 16 Subtotal 2,509 108 47 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,986 4 2 Commercial Real Estate Loans 2,842 17 6 Agricultural Loans 363 — — Subtotal 5,191 21 8 Total $ 7,700 $ 129 $ 55 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 792 $ 25 $ 25 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 238 $ 19 $ 7 Average Recorded Investment Interest Income Recognized Cash Basis Recognized December 31, 2016 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 295 $ 29 $ 15 Commercial Real Estate Loans 1,688 92 73 Agricultural Loans 461 2 1 Subtotal 2,444 123 89 With An Allowance Recorded: Commercial and Industrial Loans and Leases 102 1 1 Commercial Real Estate Loans 1,587 6 2 Agricultural Loans 249 — — Subtotal 1,938 7 3 Total $ 4,382 $ 130 $ 92 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 489 $ 21 $ 10 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 711 $ — $ — Average Recorded Investment Interest Income Recognized Cash Basis Recognized December 31, 2015 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 447 $ 29 $ 29 Commercial Real Estate Loans 1,282 104 103 Agricultural Loans 9 1 1 Subtotal 1,738 134 133 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,726 89 89 Commercial Real Estate Loans 2,840 5 3 Agricultural Loans — — — Subtotal 4,566 94 92 Total $ 6,304 $ 228 $ 225 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 196 $ — $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — All classes of loans, including loans acquired with deteriorated credit quality, are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. For purchased loans, the determination is made at the time of acquisition as well as over the life of the loan. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection. The following tables present the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual by class of loans as of December 31, 2017 and 2016: Loans Past Due 90 Days or More Non-Accrual & Still Accruing 2017 2016 2017 2016 Commercial and Industrial Loans and Leases $ 4,753 $ 86 $ — $ 2 Commercial Real Estate Loans 4,618 1,408 474 — Agricultural Loans 748 792 268 — Home Equity Loans 199 73 — — Consumer Loans 286 85 — — Residential Mortgage Loans 487 1,349 — — Total $ 11,091 $ 3,793 $ 742 $ 2 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 866 $ 1,264 $ — $ — The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2017 and 2016: Total 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due December 31, 2017 Commercial and Industrial Loans and Leases $ 488,058 $ 209 $ 1,365 $ 905 $ 2,479 $ 485,579 Commercial Real Estate Loans 929,040 1,229 1,650 677 3,556 925,484 Agricultural Loans 337,801 27 — 268 295 337,506 Home Equity Loans 152,757 366 93 199 658 152,099 Consumer Loans 67,647 246 97 286 629 67,018 Residential Mortgage Loans 179,199 2,850 1,247 261 4,358 174,841 Total (1) $ 2,154,502 $ 4,927 $ 4,452 $ 2,596 $ 11,975 $ 2,142,527 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 9,117 $ 342 $ 74 $ 27 $ 443 $ 8,674 (1) Total recorded investment in loans includes $9,483 in accrued interest. Total 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due December 31, 2016 Commercial and Industrial Loans and Leases $ 458,538 $ 20 $ 4 $ 77 $ 101 $ 458,437 Commercial Real Estate Loans 858,030 1,509 21 330 1,860 856,170 Agricultural Loans 306,946 84 50 610 744 306,202 Home Equity Loans 134,032 707 16 73 796 133,236 Consumer Loans 60,099 175 147 85 407 59,692 Residential Mortgage Loans 183,770 3,470 1,251 806 5,527 178,243 Total (1) $ 2,001,415 $ 5,965 $ 1,489 $ 1,981 $ 9,435 $ 1,991,980 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 11,048 $ 130 $ — $ 627 $ 757 $ 10,291 Loans Acquired in Current Year (Included in the Total Above) $ 262,809 $ 2,752 $ 862 $ 1,126 $ 4,740 $ 258,069 (1) Total recorded investment in loans includes $8,011 in accrued interest. Troubled Debt Restructurings: In certain instances, the Company may choose to restructure the contractual terms of loans. A troubled debt restructuring occurs when the Bank grants a concession to the borrower that it would not otherwise consider due to a borrower’s financial difficulty. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification. This evaluation is performed under the Company’s internal underwriting policy. The Company uses the same methodology for loans acquired with deteriorated credit quality as for all other loans when determining whether the loan is a troubled debt restructuring. During the year ended December 31, 2017, there were three loans modified as troubled debt restructurings. During the year ended December 31, 2016, there were no loans modified as troubled debt restructurings. The following tables present the recorded investment of troubled debt restructurings by class of loans as of December 31, 2017 and 2016: Total Performing Non-Accrual (1) December 31, 2017 Commercial and Industrial Loans and Leases $ 258 $ 125 $ 133 Commercial Real Estate Loans 24 24 — Total $ 282 $ 149 $ 133 Total Performing Non-Accrual (1) December 31, 2016 Commercial and Industrial Loans and Leases $ 28 $ 28 $ — Commercial Real Estate Loans — — — Total $ 28 $ 28 $ — (1) The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page. The Company has no t committed to lending any additional amounts as of December 31, 2017 and 2016 to customers with outstanding loans that are classified as troubled debt restructurings. The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2017: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment December 31, 2017 Commercial and Industrial Loans and Leases 2 $ 477 $ 477 Commercial Real Estate Loans 1 28 28 Total 3 $ 505 $ 505 The troubled debt restructurings described above increased the allowance for loan losses by $149 and resulted in charge-offs of $0 during the year ending December 31, 2017. For the years ended December 31, 2016 and 2015, the Company had no loans modified as troubled debt restructurings. Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the years ended December 31, 2017, 2016 and 2015. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company classifies loans as to credit risk by individually analyzing loans. This analysis includes commercial and industrial loans, commercial real estate loans, and agricultural loans with an outstanding balance greater than $250. This analysis is typically performed on at least an annual basis. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful Total December 31, 2017 Commercial and Industrial Loans and Leases $ 462,212 $ 7,901 $ 17,945 $ — $ 488,058 Commercial Real Estate Loans 894,027 18,037 16,976 — 929,040 Agricultural Loans 304,032 27,288 6,481 — 337,801 Total $ 1,660,271 $ 53,226 $ 41,402 $ — $ 1,754,899 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ 2,604 $ 1,647 $ 3,978 $ — $ 8,229 Pass Special Mention Substandard Doubtful Total December 31, 2016 Commercial and Industrial Loans and Leases $ 437,353 $ 10,454 $ 10,731 $ — $ 458,538 Commercial Real Estate Loans 814,033 26,549 17,448 — 858,030 Agricultural Loans 287,975 14,670 4,301 — 306,946 Total $ 1,539,361 $ 51,673 $ 32,480 $ — $ 1,623,514 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ 1,897 $ 3,121 $ 5,032 $ — $ 10,050 Loans Acquired in Current Year (Included in the Total Above) $ 175,915 $ 11,638 $ 8,145 $ — $ 195,698 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For home equity, consumer and residential mortgage loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of December 31, 2017 and 2016: Home Equity Loans Consumer Loans Residential Mortgage Loans December 31, 2017 Performing $ 152,558 $ 67,361 $ 178,712 Nonperforming 199 286 487 Total $ 152,757 $ 67,647 $ 179,199 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ — $ — $ 888 Home Equity Loans Consumer Loans Residential Mortgage Loans December 31, 2016 Performing $ 133,959 $ 60,014 $ 182,421 Nonperforming 73 85 1,349 Total $ 134,032 $ 60,099 $ 183,770 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ — $ 53 $ 945 The following table presents financing receivables purchased and/or sold during the year by portfolio segment: Commercial and Industrial Loans and Leases Commercial Real Estate Loans Total December 31, 2017 Purchases $ 800 $ 4,747 $ 5,547 Sales — 1,106 1,106 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Total December 31, 2016 Purchases $ — $ 5,383 $ 5,383 Sales — 2,029 2,029 Contractually required payments receivable of loans purchased with evidence of credit deterioration during the year ended December 31, 2016 are included in the table below. The value of the purchased loans included in the table are as of acquisition date. There were no such loans purchased during the year ended December 31, 2017. 2017 2016 Commercial and Industrial Loans $ — $ 220 Commercial Real Estate Loans — 10,612 Agricultural Loans — 896 Home Equity Loans — — Consumer Loans — 87 Residential Mortgage Loans — 2,279 Total $ — $ 14,094 Cash Flows Expected to be Collected at Acquisition $ — $ 11,051 Fair Value of Acquired Loans at Acquisition — 8,807 The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans at December 31 in the years presented is as follows: 2017 2016 2015 Commercial and Industrial Loans $ 988 $ 1,656 $ 1,325 Commercial Real Estate Loans 6,452 7,688 5,363 Agricultural Loans 789 706 — Consumer Loans — 53 — Residential Mortgage Loans 888 945 867 Total $ 9,117 $ 11,048 $ 7,555 Carrying Amount, Net of Allowance $ 9,106 $ 10,943 $ 7,555 Accretable yield, or income expected to be collected, is as follows: 2017 2016 2015 Balance at January 1 $ 2,521 $ 1,279 $ 1,685 New Loans Purchased — 1,395 — Accretion of Income (425 ) (943 ) (483 ) Reclassifications from Non-accretable Difference 638 985 104 Charge-off of Accretable Yield — (195 ) (27 ) Balance at December 31 $ 2,734 $ 2,521 $ 1,279 For those purchased loans disclosed above, the Company increased the allowances for loan losses by $11 , $107 , and $0 during the years ended December 31, 2017, 2016, and 2015. The Company reversed allowances for loan losses of $110 , $ 2 , and $54 during the years ended December 31, 2017, 2016, and 2015. The carrying amount of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction totaled $14 and $202 as of December 31, 2017 and 2016. Certain directors, executive officers, and principal shareholders of the Company, including their immediate families and companies in which they are principal owners, were loan customers of the Company during 2017. A summary of the activity of these loans follows: Balance January 1, 2017 Additions Changes in Persons Included Deductions Balance December 31, 2017 Collected Charged-off $ 14,276 $ 11,340 $ — $ (9,754 ) $ — $ 15,862 |
Premises, Furniture, and Equipm
Premises, Furniture, and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises, Furniture, and Equipment | Premises, Furniture, and Equipment Premises, furniture, and equipment was comprised of the following classifications at December 31: 2017 2016 Land $ 11,541 $ 10,255 Buildings and Improvements 60,076 55,676 Furniture and Equipment 28,902 26,830 Total Premises, Furniture and Equipment 100,519 92,761 Less: Accumulated Depreciation (46,273 ) (44,531 ) Total $ 54,246 $ 48,230 Depreciation expense was $3,933 , $3,774 and $3,310 for 2017, 2016 and 2015, respectively. The Company leases three of its branch buildings under a capital lease. These lease arrangements require monthly payments through 2033 . The Company has included the leases in buildings and improvements as follows: 2017 2016 Capital Leases $ 4,219 $ 4,219 Less: Accumulated Depreciation (1,312 ) (1,102 ) Total $ 2,907 $ 3,117 The following is a schedule of future minimum lease payments under the capitalized leases, together with the present value of net minimum lease payments at year end 2017: 2018 $ 519 2019 519 2020 519 2021 519 2022 519 Thereafter 4,511 Total minimum lease payments 7,106 Less: Amount representing interest (3,456 ) Present Value of Net Minimum Lease Payments $ 3,650 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits At year end 2017, stated maturities of time deposits were as follows: 2018 $ 221,568 2019 55,575 2020 58,106 2021 37,081 2022 15,376 Thereafter 179 Total $ 387,885 Time deposits of $250 or more and Brokered CDs at December 31, 2017 and 2016 were $119,802 and $92,624 , respectively. Time deposits originated from outside the geographic area, generally through brokers, totaled $0 and $9,083 at December 31, 2017 and 2016, respectively. |
FHLB Advances and Other Borrowi
FHLB Advances and Other Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | |
FHLB Advances and Other Borrowings | FHLB Advances and Other Borrowings The Company’s funding sources include Federal Home Loan Bank advances, borrowings from other third party correspondent financial institutions, issuance and sale of subordinated debt and other capital securities, and repurchase agreements. Information regarding each of these types of borrowings or other indebtedness is as follows: December 31, 2017 2016 Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities $ 126,836 $ 105,820 Junior Subordinated Debentures assumed from American Community Bancorp, Inc. 5,624 5,474 Junior Subordinated Debentures assumed from River Valley Bancorp, Inc. 5,607 5,501 Capital Lease Obligation 3,650 3,765 Long-term Borrowings 141,717 120,560 Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities $ 92,000 $ 91,500 Federal Funds Purchased — 3,642 Repurchase Agreements 41,499 42,412 Short-term Borrowings 133,499 137,554 Total Borrowings $ 275,216 $ 258,114 Repurchase agreements, which are classified as secured borrowings, generally mature within one day of the transaction date. Repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the value of the underlying securities. 2017 2016 Average Daily Balance During the Year $ 40,476 $ 33,317 Average Interest Rate During the Year 0.47 % 0.39 % Maximum Month-end Balance During the Year $ 47,934 $ 45,313 Weighted Average Interest Rate at Year-end 0.50 % 0.50 % At December 31, 2017, interest rates on the fixed rate long-term FHLB advances ranged from 1.36% to 7.22% with a weighted average rate of 1.84% . At December 31, 2016 interest rates on the fixed rate long-term FHLB advances ranged from 0.92% to 7.22% with a weighted average rate of 1.67% . At December 31, 2017 and 2016, the Company had no advances containing options whereby the FHLB may convert a fixed rate advance to an adjustable rate advance. At December 31, 2016, the parent company had a $20 million line of credit with no outstanding balance. The line of credit matured December 27, 2017. Interest on the line of credit is based upon 90-day LIBOR plus 2.875% and includes an unused commitment fee of 0.25% . At December 31, 2017, scheduled principal payments on long-term FHLB Advances are as follows: 2018 $ 40,210 2019 31,075 2020 25,551 2021 5,000 2022 — Thereafter 25,000 Total $ 126,836 The Company assumed the obligations of junior subordinated debentures through the acquisitions of American Community Bancorp, Inc. and River Valley Bancorp. The junior subordinated debentures were issued to ACB Capital Trust I, ACB Capital Trust II and RIVR Statutory Trust I. The trusts are wholly owned by the Company. In accordance with accounting guidelines, the trusts are not consolidated with the Company's financials, but rather the subordinated debentures are shown as borrowings. The Company guarantees payment of distributions on the trust preferred securities issued by ACB Trust I, ACB Trust II and RIVR Statutory Trust I. Interest is payable on a quarterly basis. These securities qualify as Tier 1 capital (with certain limitations) for regulatory purposes. $11,060 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2017. $10,809 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2016. As a result of the acquisitions of American Community and River Valley these liabilities were recorded at fair value at the acquisition date with the discount amortizing into interest expense over the life of the liability, ultimately accreting to the issuance amount disclosed below. The following table summarizes the terms of each issuance: Date of Issuance Issuance Amount Carrying Amount at December 31, 2017 Variable Rate Rate as of December 31, 2017 Rate as of December 31, 2016 Maturity Date ACB Trust I 5/6/2005 $ 5,155 $ 3,553 90 day LIBOR + 2.15% 3.84 % 3.15 % May, 2035 ACB Trust II 7/15/2005 3,093 2,071 90 day LIBOR + 1.85% 3.30 % 2.77 % July, 2035 RIVR Statutory Trust 1 3/26/2003 7,217 5,607 3-Month LIBOR + 3.15% 4.82 % 4.15 % March, 2033 See also Note 5 regarding the capital lease obligation. Deposits from principal officers, directors, and their affiliates at year-end 2017 and 2016 were $ 49.9 million and $ 48.2 million, respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Banks and 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 final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi- year schedule and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0% for 2015 to 2.5% on January 1, 2019. The capital conservation buffer for 2017 is 1.25% and for 2016 is 0 .625% . The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. At December 31, 2017, the Company and Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications, including well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year end 2017 and 2016, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category. At December 31, 2017, consolidated and bank actual capital and minimum required levels are presented below: Actual: Minimum Required For Capital Adequacy Purposes: Minimum Required To Be Well-Capitalized Under Prompt Corrective Action Regulations: Amount Ratio Amount Ratio (1) Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 339,391 13.62 % $ 199,363 8.00 % N/A N/A Bank 305,773 12.29 199,093 8.00 $ 248,866 10.00 % Tier 1 (Core) Capital (to Risk Weighted Assets) Consolidated $ 323,697 12.99 % $ 149,522 6.00 % N/A N/A Bank 290,079 11.66 149,320 6.00 $ 199,093 8.00 % Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) Consolidated $ 312,637 12.55 % $ 112,142 4.50 % N/A N/A Bank 290,079 11.66 111,990 4.50 $ 161,763 6.50 % Tier 1 Core Capital (to Average Assets) Consolidated $ 323,697 10.71 % $ 120,862 4.00 % N/A N/A Bank 290,079 9.63 120,509 4.00 $ 150,637 5.00 % (1) Excludes capital conservation buffer. At December 31, 2016, consolidated and bank actual capital and minimum required levels are presented below: Actual: Minimum Required For Capital Adequacy Purposes: Minimum Required To Be Well-Capitalized Under Prompt Corrective Action Regulations: Amount Ratio Amount Ratio (1) Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 307,754 13.30 % $ 185,117 8.00 % N/A N/A Bank 288,793 12.48 185,104 8.00 $ 231,380 10.00 % Tier 1 (Core) Capital (to Risk Weighted Assets) Consolidated $ 292,946 12.66 % $ 138,838 6.00 % N/A N/A Bank 273,985 11.84 138,828 6.00 $ 185,104 8.00 % Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) Consolidated $ 282,138 12.19 % $ 104,129 4.50 % N/A N/A Bank 273,985 11.84 104,121 4.50 $ 150,397 6.50 % Tier 1 Core Capital (to Average Assets) Consolidated $ 292,946 10.09 % $ 116,165 4.00 % N/A N/A Bank 273,985 9.46 115,853 4.00 $ 144,816 5.00 % (1) Excludes capital conservation buffer. The Company and the bank at year end 2017 and 2016 were categorized as well-capitalized. There have been no conditions or events that management believes has changed the classification of the bank under the prompt corrective action regulations since the last notification from regulators. Regulations require the maintenance of certain capital levels at the bank, and may limit the dividends payable by the affiliate to the holding company, or by the holding company to its shareholders. At December 31, 2017 the bank had $64,000 in retained earnings available for payment of dividends to the parent company without prior regulatory approval. Equity Plans and Equity Based Compensation The Company maintains three equity incentive plans under which stock options, restricted stock, and other equity incentive awards can be granted. At December 31, 2017, the Company has reserved 386,754 shares of Common Stock (as adjusted for subsequent stock dividends and subject to further customary anti-dilution adjustments) for the purpose of issuance pursuant to outstanding and future grants of options, restricted stock, and other equity awards to officers, directors and other employees of the Company. Stock Options Options may be designated as incentive stock options or as nonqualified stock options. While the date after which options are first exercisable is determined by the appropriate committee of the Board of Directors of the Company or, in the case of options granted to directors, by the Board of Directors, no stock option may be exercised after ten years from the date of grant ( twenty years in the case of nonqualified stock options). The exercise price of stock options granted pursuant to the plans must be no less than the fair market value of the Common Stock on the date of the grant. The plans authorize an optionee to pay the exercise price of options in cash or in common shares of the Company or in some combination of cash and common shares. An optionee may tender already-owned common shares to the Company in exercise of an option. Certain of these plans authorize an optionee to surrender the value of an unexercised option in payment of an equivalent amount of the exercise price of the option. The Company typically issues authorized but unissued common shares upon the exercise of options. The following table presents information related to stock options under the Company’s equity incentive plan during the years ended 2017, 2016 and 2015: 2017 2016 2015 Intrinsic Value of Options Exercised $ — $ 137 $ 559 Cash Received from Option Exercises $ — $ — $ — Tax Benefit of Option Exercises $ — $ 54 $ 224 Weighted Average Fair Value of Options Granted $ — $ — $ — The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of common stock as of the reporting date. During 2017, 2016 and 2015, the Company granted no options, and recorded no stock compensation expense related to option grants. The Company recorded no other stock compensation expense applicable to options during the years ended December 31, 2017, 2016 and 2015 because all outstanding options were fully vested prior to 2007. Restricted Stock During the periods presented, awards of long-term incentives were granted in the form of restricted stock. Awards that were granted to management and selected other employees under a management and employee incentive plan were granted in tandem with cash credit entitlements (typically in the form of 60% restricted stock grants and 40% cash credit entitlements). The management and employee restricted stock grants and tandem cash credit entitlements awarded will vest in three equal installments of 33.3% with the first annual vesting on December 5 th of the year of the grant and on December 5 th of the next two succeeding years. Awards that were granted to directors as additional retainer for their services do not include any cash credit entitlement. These director restricted stock grants are subject to forfeiture in the event that the recipient of the grant does not continue in service as a director of the Company through December 5th of the year after grant or do not satisfy certain meeting attendance requirements, at which time they generally vest 100 percent . For measuring compensation costs, restricted stock awards are valued based upon the market value of the common shares on the date of grant. The following table presents expense recorded for restricted stock and cash entitlements as well as the related tax effect for the years ended 2017, 2016, and 2015: 2017 2016 2015 Restricted Stock Expense $ 1,246 $ 1,407 $ 963 Cash Entitlement Expense 657 570 580 Tax Effect (746 ) (782 ) (615 ) Net of Tax $ 1,157 $ 1,195 $ 928 Unrecognized expense associated with the restricted stock grants and cash entitlements totaled $1,983 , $1,774 , and $1,542 as of December 31, 2017, 2016, and 2015, respectively. The following table presents information on restricted stock grants outstanding for the period shown: Year Ended December 31, 2017 Restricted Shares Weighted Average Market Price at Grant Outstanding at Beginning of Period 53,163 $ 22.32 Granted 43,386 31.77 Issued and Vested (49,733 ) 24.79 Forfeited (510 ) 27.22 Outstanding at End of Period 46,306 $ 28.47 Employee Stock Purchase Plan The Company maintains an Employee Stock Purchase Plan whereby eligible employees have the option to purchase the Company’s common stock at a discount. The purchase price of the shares under this Plan has been set at 95% of the fair market value of the Company’s common stock as of the last day of the plan year. The plan provided for the purchase of up to 750,000 shares of common stock, which the Company may obtain by purchases on the open market or from private sources, or by issuing authorized but unissued common shares. At December 31, 2017, there were 557,203 shares available for future issuance under this plan. Funding for the purchase of common stock is from employee and Company contributions. In 2017, the Company recorded $32 of expense, $19 net of tax, for the employee stock purchase plan. In 2016, the Company recorded $82 of expense, $50 net of tax, for the employee stock purchase plan. In 2015, the Company recorded $22 of expense, $13 net of tax, for the employee stock purchase plan. There was no unrecognized compensation expense as of December 31, 2017, 2016 and 2015 for the Employee Stock Purchase Plan. Stock Repurchase Plan On April 26, 2001, the Company announced that its Board of Directors approved a stock repurchase program for up to 911,631 of the outstanding Common Shares of the Company. Shares may be purchased from time to time in the open market and in large block privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time before the maximum number of shares specified by the program are purchased. The Board of Directors established no expiration date for this program. As of December 31, 2017, the Company had purchased 502,447 shares under the program. No shares were purchased under the program during the years ended December 31, 2017, 2016 and 2015. Common Stock Split On March 27, 2017, the Company declared a 3-for-2 stock split on the Company's authorized and outstanding common shares. The stock split was distributed on April 21, 2017, to shareholders of record as of April 6, 2017. All share and per share data in this Annual Report on Form 10-K relating to a date or period that precedes April 21, 2017 have been adjusted to retroactively reflect the stock split. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides a contributory trusteed 401(k) deferred compensation and profit sharing plan, which covers substantially all employees. The Company agrees to match certain employee contributions under the 401(k) portion of the plan, while profit sharing contributions are discretionary and are subject to determination by the Board of Directors. Company contributions were $1,328 , $1,121 , and $999 for 2017, 2016, and 2015, respectively. The Company self-insures employee health benefits. Stop loss insurance covers annual losses exceeding $150 per covered family as well as an aggregating specific deductible of $255 for the Company. Management’s policy is to establish a reserve for claims not submitted by a charge to earnings based on prior experience. Charges to earnings were $4,192 , $3,153 , and $2,666 for 2017, 2016, and 2015, respectively. The Company maintains deferred compensation plans for the benefit of certain directors and officers. Under the plans, the Company agrees in return for the directors and officers deferring the receipt of a portion of their current compensation, to pay a retirement benefit computed as the amount of the compensation deferred plus accrued interest at a variable rate. Accrued benefits payable totaled $1,896 and $1,882 at December 31, 2017 and 2016. Deferred compensation expense was $187 , $297 , and $149 for 2017, 2016, and 2015, respectively. In conjunction with the plans, the Company purchased life insurance on certain directors and officers. The Company entered into early retirement agreements with certain officers of the Company. Accrued benefits payable as a result of the agreements totaled $84 and $136 at December 31, 2017 and 2016, respectively. Expense associated with these agreements totaled $48 , $ 0 , and $215 during 2017, 2016, and 2015, respectively. The benefits under the agreements will be paid through 2018. Postretirement Medical and Life Benefit Plan The Company has an unfunded postretirement benefit plan covering substantially all of its employees. The medical plan is contributory with the participants’ contributions adjusted annually; the life insurance plans are noncontributory. Changes in Accumulated Postretirement Benefit Obligations: 2017 2016 Obligation at the Beginning of Year $ 814 $ 783 Unrecognized Loss (Gain) 226 24 Components of Net Periodic Postretirement Benefit Cost Service Cost 50 41 Interest Cost 29 29 Net Expected Benefit Payments (58 ) (63 ) Obligation at End of Year $ 1,061 $ 814 Components of Postretirement Benefit Expense: 2017 2016 2015 Service Cost $ 50 $ 41 $ 42 Interest Cost 29 29 26 Amortization of Unrecognized Net (Gain) Loss 8 6 5 Net Postretirement Benefit Expense 87 76 73 Net (Gain) Loss During Period Recognized in Other Comprehensive Income (Loss) 218 18 17 Total Recognized in Net Postretirement Benefit Expense and Other Comprehensive Income $ 305 $ 94 $ 90 Assumptions Used to Determine Net Periodic Cost and Benefit Obligations: 2017 2016 2015 Discount Rate 3.35 % 3.72 % 3.82 % Assumed Health Care Cost Trend Rates at Year-end: 2017 2016 Health Care Cost Trend Rate Assumed for Next Year 8.00 % 8.00 % Rate that the Cost Trend Rate Gradually Declines to 5.00 % 5.00 % Year that the Rate Reaches the Rate it is Assumed to Remain at 2023 2022 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects as of December 31, 2017: One-Percentage-Point Increase One-Percentage-Point Decrease Effect on Total of Service and Interest Cost $ 7 $ (6 ) Effect on Postretirement Benefit Obligation $ 66 $ (59 ) Contributions The Company expects to contribute $84 to its postretirement medical and life insurance plan in 2018. Estimated Future Benefits The following postretirement benefit payments, which reflect expected future service, are expected to be paid: 2018 $ 84 2019 91 2020 86 2021 77 2022 85 2023-2027 547 Multi-Employer Pension Plan Through the acquisition of River Valley Bancorp, the Company acquired a participation in a multi-employer defined benefit pension plan. Effective December 31, 2015, the plan was frozen. Pension expense was approximately $ 63 and $ 54 during 2017 and 2016, respectively. Specific plan asset and accumulated benefit information for the Company's portion of the fund is not available. Under the Employee Retirement Income and Security Act of 1974 ("ERISA"), a contributor to a multi-employer pension plan may be liable in the event of complete or partial withdrawal for the benefit payments guaranteed under ERISA, but currently there is no intention to withdraw. The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (the "Pentegra DB Plan"), a tax-qualified defined-benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under ERISA and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. Total contributions made to the Pentegra DB Plan, as reported on Form 5500, equal $153,186 and $163,183 for the plan years ended June 30, 2016 and 2015, respectively. The Company's contributions to the Pentegra DB Plan for the fiscal year ending December 31, 2017 were not more than 5% of total contributions to the Pentegra DB Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: 2017 2016 2015 Current Federal $ 10,481 $ 11,468 $ 11,407 Current State 473 447 898 Deferred Federal 276 1,611 (920 ) Deferred State 304 420 221 Total $ 11,534 $ 13,946 $ 11,606 Income tax expense is reconciled to the 35% statutory rate applied to the pre-tax income for the years presented in the table below: 2017 2016 2015 Statutory Rate Times Pre-tax Income $ 18,274 $ 17,195 $ 14,585 Add (Subtract) the Tax Effect of: Income from Tax-exempt Loans and Investments (3,304 ) (2,929 ) (2,250 ) State Income Tax, Net of Federal Tax Effect 505 564 727 General Business Tax Credits (715 ) (621 ) (750 ) Company Owned Life Insurance (469 ) (346 ) (296 ) Revaluation of Deferred Tax Assets/Liabilities due to Tax Reform (2,284 ) — — Other Differences (473 ) 83 (410 ) Total Income Taxes $ 11,534 $ 13,946 $ 11,606 The net deferred tax liability at December 31 consists of the following: 2017 2016 Deferred Tax Assets: Allowance for Loan Losses $ 3,645 $ 5,269 Unrealized Loss on Securities 665 3,456 Deferred Compensation and Employee Benefits 702 1,146 Other-than-temporary Impairment 243 377 Accrued Expenses 645 956 Business Combination Fair Value Adjustments 1,041 2,838 Pension and Postretirement Plans 100 67 Non-Accrual Loan Interest Income 152 158 Net Operating Loss Carryforward — 196 Unused Tax Credits — 86 Other 302 472 Total Deferred Tax Assets 7,495 15,021 Deferred Tax Liabilities: Depreciation (1,309 ) (1,612 ) Leasing Activities, Net (7,343 ) (9,845 ) FHLB Stock Dividends (196 ) (304 ) Prepaid Expenses (368 ) (461 ) Intangibles (597 ) (1,113 ) Deferred Loan Fees (483 ) (691 ) Mortgage Servicing Rights (133 ) (231 ) General Business Tax Credits — (235 ) Other (1,098 ) (1,692 ) Total Deferred Tax Liabilities (11,527 ) (16,184 ) Valuation Allowance — — Net Deferred Tax Liability $ (4,032 ) $ (1,163 ) On December 22, 2017, the U.S. government enacted comprehensive tax reform legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). Among other things, the Tax Act includes significant changes to the U.S. corporate income tax system, including: reducing the federal corporate rate from 35% to 21%; modifying the rules regarding limitations on certain deductions for executive compensation; introducing a capital investment deduction in certain circumstances; placing certain limitations on the interest deduction; and modifying the rules regarding the usability of net operating losses. Based upon its initial analysis of the Tax Act, the Company revalued its deferred tax assets and deferred tax liabilities at December 31, 2017 and, as a result, recorded a $2,284 [reduction in income tax expense] during the fourth quarter of 2017. This benefit was based on reasonable estimates by the Company of certain income tax effects of the Tax Act. Under the Internal Revenue Code, through 1996 three acquired banking companies, which are now a part of the Company’s single banking subsidiary, were allowed a special bad debt deduction related to additions to tax bad debt reserves established for the purpose of absorbing losses. The acquired banks were formerly known as River Valley Financial Bank (acquired in March 2016), Peoples Community Bank (acquired in October 2005) and First American Bank (acquired in January 1999). Subject to certain limitations, these Banks were permitted to deduct from taxable income an allowance for bad debts based on a percentage of taxable income before such deductions or actual loss experience. The Banks generally computed its annual addition to its bad debt reserves using the percentage of taxable income method; however, due to certain limitations in 1996, the Banks were only allowed a deduction based on actual loss experience. Retained earnings at December 31, 2017, include approximately $5,095 for which no provision for federal income taxes has been made. This amount represents allocations of income for allowable bad debt deductions. Reduction of amounts so allocated for purposes other than tax bad debt losses will create taxable income, which will be subject to the then current corporate income tax rate. It is not contemplated that amounts allocated to bad debt deductions will be used in any manner to create taxable income. The unrecorded deferred income tax liability on the above amount at December 31, 2017 was approximately $1,070 . Unrecognized Tax Benefits The Company had no unrecognized tax benefits as of December 31, 2017, 2016, and 2015, and did no t recognize any increase in unrecognized benefits during 2017 relative to any tax positions taken in 2017. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in its income tax expense accounts; no such accruals existed as of December 31, 2017, 2016, and 2015. The Company and its corporate subsidiaries file a consolidated U.S. Federal income tax return, which is subject to examination for all years after 2013. The Company and its corporate subsidiaries doing business in Indiana file a combined Indiana unitary return, which is subject to examination for all years after 2013. |
Common Stock Split
Common Stock Split | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock Split | Shareholders’ Equity Banks and 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 final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi- year schedule and fully phased in by January 1, 2019. Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0% for 2015 to 2.5% on January 1, 2019. The capital conservation buffer for 2017 is 1.25% and for 2016 is 0 .625% . The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. At December 31, 2017, the Company and Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications, including well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year end 2017 and 2016, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category. At December 31, 2017, consolidated and bank actual capital and minimum required levels are presented below: Actual: Minimum Required For Capital Adequacy Purposes: Minimum Required To Be Well-Capitalized Under Prompt Corrective Action Regulations: Amount Ratio Amount Ratio (1) Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 339,391 13.62 % $ 199,363 8.00 % N/A N/A Bank 305,773 12.29 199,093 8.00 $ 248,866 10.00 % Tier 1 (Core) Capital (to Risk Weighted Assets) Consolidated $ 323,697 12.99 % $ 149,522 6.00 % N/A N/A Bank 290,079 11.66 149,320 6.00 $ 199,093 8.00 % Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) Consolidated $ 312,637 12.55 % $ 112,142 4.50 % N/A N/A Bank 290,079 11.66 111,990 4.50 $ 161,763 6.50 % Tier 1 Core Capital (to Average Assets) Consolidated $ 323,697 10.71 % $ 120,862 4.00 % N/A N/A Bank 290,079 9.63 120,509 4.00 $ 150,637 5.00 % (1) Excludes capital conservation buffer. At December 31, 2016, consolidated and bank actual capital and minimum required levels are presented below: Actual: Minimum Required For Capital Adequacy Purposes: Minimum Required To Be Well-Capitalized Under Prompt Corrective Action Regulations: Amount Ratio Amount Ratio (1) Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 307,754 13.30 % $ 185,117 8.00 % N/A N/A Bank 288,793 12.48 185,104 8.00 $ 231,380 10.00 % Tier 1 (Core) Capital (to Risk Weighted Assets) Consolidated $ 292,946 12.66 % $ 138,838 6.00 % N/A N/A Bank 273,985 11.84 138,828 6.00 $ 185,104 8.00 % Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) Consolidated $ 282,138 12.19 % $ 104,129 4.50 % N/A N/A Bank 273,985 11.84 104,121 4.50 $ 150,397 6.50 % Tier 1 Core Capital (to Average Assets) Consolidated $ 292,946 10.09 % $ 116,165 4.00 % N/A N/A Bank 273,985 9.46 115,853 4.00 $ 144,816 5.00 % (1) Excludes capital conservation buffer. The Company and the bank at year end 2017 and 2016 were categorized as well-capitalized. There have been no conditions or events that management believes has changed the classification of the bank under the prompt corrective action regulations since the last notification from regulators. Regulations require the maintenance of certain capital levels at the bank, and may limit the dividends payable by the affiliate to the holding company, or by the holding company to its shareholders. At December 31, 2017 the bank had $64,000 in retained earnings available for payment of dividends to the parent company without prior regulatory approval. Equity Plans and Equity Based Compensation The Company maintains three equity incentive plans under which stock options, restricted stock, and other equity incentive awards can be granted. At December 31, 2017, the Company has reserved 386,754 shares of Common Stock (as adjusted for subsequent stock dividends and subject to further customary anti-dilution adjustments) for the purpose of issuance pursuant to outstanding and future grants of options, restricted stock, and other equity awards to officers, directors and other employees of the Company. Stock Options Options may be designated as incentive stock options or as nonqualified stock options. While the date after which options are first exercisable is determined by the appropriate committee of the Board of Directors of the Company or, in the case of options granted to directors, by the Board of Directors, no stock option may be exercised after ten years from the date of grant ( twenty years in the case of nonqualified stock options). The exercise price of stock options granted pursuant to the plans must be no less than the fair market value of the Common Stock on the date of the grant. The plans authorize an optionee to pay the exercise price of options in cash or in common shares of the Company or in some combination of cash and common shares. An optionee may tender already-owned common shares to the Company in exercise of an option. Certain of these plans authorize an optionee to surrender the value of an unexercised option in payment of an equivalent amount of the exercise price of the option. The Company typically issues authorized but unissued common shares upon the exercise of options. The following table presents information related to stock options under the Company’s equity incentive plan during the years ended 2017, 2016 and 2015: 2017 2016 2015 Intrinsic Value of Options Exercised $ — $ 137 $ 559 Cash Received from Option Exercises $ — $ — $ — Tax Benefit of Option Exercises $ — $ 54 $ 224 Weighted Average Fair Value of Options Granted $ — $ — $ — The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of common stock as of the reporting date. During 2017, 2016 and 2015, the Company granted no options, and recorded no stock compensation expense related to option grants. The Company recorded no other stock compensation expense applicable to options during the years ended December 31, 2017, 2016 and 2015 because all outstanding options were fully vested prior to 2007. Restricted Stock During the periods presented, awards of long-term incentives were granted in the form of restricted stock. Awards that were granted to management and selected other employees under a management and employee incentive plan were granted in tandem with cash credit entitlements (typically in the form of 60% restricted stock grants and 40% cash credit entitlements). The management and employee restricted stock grants and tandem cash credit entitlements awarded will vest in three equal installments of 33.3% with the first annual vesting on December 5 th of the year of the grant and on December 5 th of the next two succeeding years. Awards that were granted to directors as additional retainer for their services do not include any cash credit entitlement. These director restricted stock grants are subject to forfeiture in the event that the recipient of the grant does not continue in service as a director of the Company through December 5th of the year after grant or do not satisfy certain meeting attendance requirements, at which time they generally vest 100 percent . For measuring compensation costs, restricted stock awards are valued based upon the market value of the common shares on the date of grant. The following table presents expense recorded for restricted stock and cash entitlements as well as the related tax effect for the years ended 2017, 2016, and 2015: 2017 2016 2015 Restricted Stock Expense $ 1,246 $ 1,407 $ 963 Cash Entitlement Expense 657 570 580 Tax Effect (746 ) (782 ) (615 ) Net of Tax $ 1,157 $ 1,195 $ 928 Unrecognized expense associated with the restricted stock grants and cash entitlements totaled $1,983 , $1,774 , and $1,542 as of December 31, 2017, 2016, and 2015, respectively. The following table presents information on restricted stock grants outstanding for the period shown: Year Ended December 31, 2017 Restricted Shares Weighted Average Market Price at Grant Outstanding at Beginning of Period 53,163 $ 22.32 Granted 43,386 31.77 Issued and Vested (49,733 ) 24.79 Forfeited (510 ) 27.22 Outstanding at End of Period 46,306 $ 28.47 Employee Stock Purchase Plan The Company maintains an Employee Stock Purchase Plan whereby eligible employees have the option to purchase the Company’s common stock at a discount. The purchase price of the shares under this Plan has been set at 95% of the fair market value of the Company’s common stock as of the last day of the plan year. The plan provided for the purchase of up to 750,000 shares of common stock, which the Company may obtain by purchases on the open market or from private sources, or by issuing authorized but unissued common shares. At December 31, 2017, there were 557,203 shares available for future issuance under this plan. Funding for the purchase of common stock is from employee and Company contributions. In 2017, the Company recorded $32 of expense, $19 net of tax, for the employee stock purchase plan. In 2016, the Company recorded $82 of expense, $50 net of tax, for the employee stock purchase plan. In 2015, the Company recorded $22 of expense, $13 net of tax, for the employee stock purchase plan. There was no unrecognized compensation expense as of December 31, 2017, 2016 and 2015 for the Employee Stock Purchase Plan. Stock Repurchase Plan On April 26, 2001, the Company announced that its Board of Directors approved a stock repurchase program for up to 911,631 of the outstanding Common Shares of the Company. Shares may be purchased from time to time in the open market and in large block privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time before the maximum number of shares specified by the program are purchased. The Board of Directors established no expiration date for this program. As of December 31, 2017, the Company had purchased 502,447 shares under the program. No shares were purchased under the program during the years ended December 31, 2017, 2016 and 2015. Common Stock Split On March 27, 2017, the Company declared a 3-for-2 stock split on the Company's authorized and outstanding common shares. The stock split was distributed on April 21, 2017, to shareholders of record as of April 6, 2017. All share and per share data in this Annual Report on Form 10-K relating to a date or period that precedes April 21, 2017 have been adjusted to retroactively reflect the stock split. |
Per Share Data
Per Share Data | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Per Share Data | Per Share Data The computation of Basic Earnings per Share and Diluted Earnings per Share are provided below: 2017 2016 2015 Basic Earnings per Share: (1) Net Income $ 40,676 $ 35,184 $ 30,064 Weighted Average Shares Outstanding 22,924,726 22,389,137 19,882,503 Basic Earnings per Share $ 1.77 $ 1.57 $ 1.51 Diluted Earnings per Share: (1) Net Income $ 40,676 $ 35,184 $ 30,064 Weighted Average Shares Outstanding 22,924,726 22,389,137 19,882,503 Stock Options, Net — 1,979 5,871 Diluted Weighted Average Shares Outstanding 22,924,726 22,391,116 19,888,374 Diluted Earnings per Share $ 1.77 $ 1.57 $ 1.51 (1) Share and per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. There were no anti-dilutive shares at December 31, 2017, 2016, and 2015. |
Operating Lease Commitments
Operating Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Operating Lease Commitments | Operating Lease Commitments The total rental expense for all operating leases for the years ended December 31, 2017, 2016, and 2015 was $1,213 , $1,215 , and $753 respectively, including amounts paid under short-term cancelable leases. The following is a schedule of future minimum lease payments under operating leases for premises and equipment at year end 2017: 2018 $ 1,050 2019 956 2020 843 2021 752 2022 638 Thereafter 2,980 Total $ 7,219 |
Commitments and Off-balance She
Commitments and Off-balance Sheet Items | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Off-balance Sheet Items | Commitments and Off-balance Sheet Items In the normal course of business, there are various commitments and contingent liabilities, such as commitments to extend credit and commitments to sell loans, which are not reflected in the accompanying consolidated financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policy to make commitments as it uses for on-balance sheet items. The Company’s exposure to credit risk for commitments to sell loans is dependent upon the ability of the counter-party to purchase the loans. This is generally assured by the use of government sponsored entity counterparts. These commitments are subject to market risk resulting from fluctuations in interest rates. Commitments and contingent liabilities are summarized as follows, at December 31: 2017 2016 Fixed Rate Variable Rate Fixed Variable Commitments to Fund Loans: Consumer Lines $ 10,997 $ 260,934 $ 10,081 $ 237,087 Commercial Operating Lines 19,267 308,381 24,598 274,619 Residential Mortgages 17,255 655 13,760 765 Total Commitments to Fund Loans $ 47,519 $ 569,970 $ 48,439 $ 512,471 Commitments to Sell Loans: Mandatory $ 681 $ — $ 973 $ — Non-mandatory $ 24,628 $ 188 $ 30,708 $ 677 Standby Letters of Credit $ 959 $ 4,736 $ 1,059 $ 7,869 The fixed rate commitments to fund loans have interest rates ranging from 2.00% to 18.00% and maturities ranging from less than 1 year to 32 years . Since many commitments to make loans expire without being used, these amounts do not necessarily represent future cash commitments. Collateral obtained upon exercise of the commitment is determined using management’s credit evaluation of the borrower, and may include accounts receivable, inventory, property, land, and other items. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant 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. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Level 3 pricing is obtained from a third-party based upon similar trades that are not traded frequently without adjustment by the Company. At December 31, 2017, the Company held $6.0 million in Level 3 securities which consist of $5.6 million of non-rated Obligations of State and Political Subdivisions and $353 thousand of equity securities that are not actively traded. Absent the credit rating, significant assumptions must be made such that the credit risk input becomes an unobservable input and thus these securities are reported by the Company in a Level 3 classification. Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Impaired Loans: Fair values for impaired collateral dependent loans are generally based on appraisals obtained from licensed real estate appraisers and in certain circumstances consideration of offers obtained to purchase properties prior to foreclosure. Appraisals for commercial real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value in the cost to replace the current property. Value of market comparison approach evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and an investor's required return. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Comparable sales adjustments are based on known sales prices of similar type and similar use properties and duration of time that the property has been on the market to sell. Such adjustments made in the appraisal process are typically significant and result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Company’s Risk Management Area reviews the assumptions and approaches utilized in the appraisal. In determining the value of impaired collateral dependent loans and other real estate owned, significant unobservable inputs may be used which include: physical condition of comparable properties sold, net operating income generated by the property and investor rates of return. Other Real Estate: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate (ORE) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property utilizing similar techniques as discussed above for Impaired Loans, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, impairment loss is recognized. Loan Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. Loans Held-for-Sale: The fair values of loans held for sale are determined by using quoted prices for similar assets, adjusted for specific attributes of that loan resulting in a Level 2 classification. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: Fair Value Measurements at December 31, 2017 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Obligations of State and Political Subdivisions $ — $ 267,660 $ 5,649 $ 273,309 MBS/CMO - Residential — 467,332 — 467,332 Equity Securities — — 353 353 Total Securities $ — $ 734,992 $ 6,002 $ 740,994 Loans Held-for-Sale $ — $ 6,719 $ — $ 6,719 Derivative Assets $ — $ 1,564 $ — $ 1,564 Mortgage Servicing Rights $ — $ 547 $ — $ 547 Derivative Liabilities $ — $ 1,633 $ — $ 1,633 Fair Value Measurements at December 31, 2016 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Obligations of State and Political Subdivisions $ — $ 240,495 $ 7,024 $ 247,519 MBS/CMO - Residential — 461,914 — 461,914 Equity Securities — — 353 353 Total Securities $ — $ 702,409 $ 7,377 $ 709,786 Loans Held-for-Sale $ — $ 15,273 $ — $ 15,273 Derivative Assets $ — $ 1,291 $ — $ 1,291 Mortgage Servicing Rights $ — $ 611 $ — $ 611 Derivative Liabilities $ — $ 1,238 $ — $ 1,238 There were no transfers between Level 1 and Level 2 for the periods ended December 31, 2017 and 2016. At December 31, 2017, the aggregate fair value of the Loans Held-for-Sale was $6,719 . Aggregate contractual principal balance was $6,576 with a difference of $143 . At December 31, 2016, the aggregate fair value of the Loans Held-for-Sale was $15,273 . Aggregate contractual principal balance was $14,983 with a difference of $290 . The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2016: Obligations of State and Political Subdivisions Equity Securities 2017 2016 2017 2016 Balance of Recurring Level 3 Assets at January 1 $ 7,024 $ 8,749 $ 353 $ 353 Total Gains or Losses Included in Other Comprehensive Income (60 ) (75 ) — — Maturities / Calls (1,315 ) (1,650 ) — — Purchases — — — — Balance of Recurring Level 3 Assets at December 31 $ 5,649 $ 7,024 $ 353 $ 353 Of the total gain/loss included in earnings for the years ended December 31, 2017 and 2016, ($60) and ($75) was attributable to other changes in fair value, respectively. Assets and Liabilities Measured on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2017 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Impaired Loans Commercial and Industrial Loans $ — $ — $ 3,354 $ 3,354 Commercial Real Estate Loans — — 3,438 3,438 Fair Value Measurements at December 31, 2016 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Assets: Impaired Loans Commercial and Industrial Loans $ — $ — $ 60 $ 60 Commercial Real Estate Loans — — 348 348 Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $9,020 with a valuation allowance of $2,228 , resulting in an increase to the provision for loan losses of $1,973 for the year ended December 31, 2017. Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $663 with a valuation allowance of $255 , resulting in an increase to the provision for loan losses of $115 for the year ended December 31, 2016. There was no Other Real Estate carried at fair value less costs to sell at December 31, 2017 and 2016. No charge to earnings was included in the year ended December 31, 2017. A charge to earnings through Other Operating Income of $ 75 was included in the year ended December 31, 2016. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2017 and 2016: December 31, 2017 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Impaired Loans - Commercial and Industrial Loans $ 3,354 Sales comparison approach Adjustment for physical condition of comparable properties sold 0% - 95% Impaired Loans - Commercial Real Estate Loans $ 3,438 Sales comparison approach Adjustment for physical condition of comparable properties sold 30% - 76% December 31, 2016 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Impaired Loans - Commercial and Industrial Loans $ 60 Sales comparison approach Adjustment for physical condition of comparable properties sold 0% - 100% Impaired Loans - Commercial Real Estate Loans $ 348 Sales comparison approach Adjustment for physical condition of comparable properties sold 33% - 77% The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending December 31, 2017 and 2016. Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the table. Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision. Fair Value Measurements at December 31, 2017 Using Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Short-term Investments $ 70,359 $ 58,233 $ 12,126 $ — $ 70,359 Loans, Net 2,119,152 — — 2,120,154 2,120,154 FHLB Stock and Other Restricted Stock 13,048 N/A N/A N/A N/A Accrued Interest Receivable 13,258 — 3,574 9,684 13,258 Financial Liabilities: Demand, Savings, and Money Market Deposits (2,096,167 ) (2,096,167 ) — — (2,096,167 ) Time Deposits (387,885 ) — (388,640 ) — (388,640 ) Short-term Borrowings (133,499 ) — (133,499 ) — (133,499 ) Long-term Debt (141,717 ) — (129,366 ) (11,052 ) (140,418 ) Accrued Interest Payable (1,058 ) — (1,042 ) (16 ) (1,058 ) Fair Value Measurements at December 31, 2016 Using Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Short-term Investments $ 64,816 $ 48,467 $ 16,349 $ — $ 64,816 Loans, Net 1,974,074 — — 1,980,523 1,980,523 FHLB Stock and Other Restricted Stock 13,048 N/A N/A N/A N/A Accrued Interest Receivable 11,413 — 3,289 8,124 11,413 Financial Liabilities: Demand, Savings, and Money Market Deposits (1,971,370 ) (1,971,370 ) — — (1,971,370 ) Time Deposits (378,181 ) — (378,000 ) — (378,000 ) Short-term Borrowings (137,554 ) — (137,554 ) — (137,554 ) Long-term Debt (120,560 ) — (109,709 ) (10,793 ) (120,502 ) Accrued Interest Payable (789 ) — (775 ) (14 ) (789 ) Cash and Short-Term Investments: The carrying amount of cash and short-term investments approximate fair values and are classified as Level 1 or Level 2. FHLB Stock and Other Restricted Stock: It is not practical to determine the fair values of FHLB stock and other restricted stock due to restrictions placed on their transferability. Loans: Fair values of loans, excluding loans held for sale and collateral dependent impaired loans carried at fair value, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued as described previously. The methods utilized to estimate fair value of loans do not necessarily represent an exit price. Accrued Interest Receivable: The carrying amount of accrued interest approximates fair value resulting in a Level 2 or Level 3 classification consistent with the asset they are associated with. Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for fixed rate time deposits are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Short-term Borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. Long-Term Debt: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. The fair values of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. Accrued Interest Payable: The carrying amount of accrued interest approximates fair value resulting in a Level 2 or Level 3 classification consistent with the liability they are associated with. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s operations include three primary segments: core banking, trust and investment advisory services, and insurance operations. The core banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in the Company’s local markets. The core banking segment also involves the sale of residential mortgage loans in the secondary market. The trust and investment advisory services segment involves providing trust, investment advisory, and brokerage services to customers. The insurance segment offers a full range of personal and corporate property and casualty insurance products, primarily in the Company’s banking subsidiary’s local markets. The core banking segment is comprised by the Company’s banking subsidiary, German American Bancorp, which operated through 53 banking offices at December 31, 2017. Net interest income from loans and investments funded by deposits and borrowings is the primary revenue for the core-banking segment. The trust and investment advisory services segment’s revenues are comprised primarily of fees generated by the trust operations of the Company's banking subsidiary and by German American Investment Services, Inc. These fees are derived by providing trust, investment advisory, and brokerage services to its customers. The insurance segment primarily consists of German American Insurance, Inc., which provides a full line of personal and corporate insurance products. Commissions derived from the sale of insurance products are the primary source of revenue for the insurance segment. The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the three segments are the same as those of the Company. The evaluation process for segments does not include holding company income and expense. Holding company amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the column labeled “Other” below, along with amounts to eliminate transactions between segments. Core Banking Trust and Investment Advisory Services Insurance Other Consolidated Totals Year Ended December 31, 2017 Net Interest Income $ 100,659 $ 6 $ 9 $ (765 ) $ 99,909 Net Gains on Sales of Loans 3,280 — — — 3,280 Net Gains on Securities 593 — — 3 596 Trust and Investment Product Fees 3 5,272 — (3 ) 5,272 Insurance Revenues 28 34 7,917 — 7,979 Noncash Items: Provision for Loan Losses 1,750 — — — 1,750 Depreciation and Amortization 4,351 4 76 256 4,687 Income Tax Expense (Benefit) 12,262 145 512 (1,385 ) 11,534 Segment Profit (Loss) 39,520 217 918 21 40,676 Segment Assets at December 31, 2017 3,142,096 1,987 10,078 (9,801 ) 3,144,360 Core Banking Trust and Investment Advisory Services Insurance Other Consolidated Totals Year Ended December 31, 2016 Net Interest Income $ 95,562 $ 1 $ 7 $ (666 ) $ 94,904 Net Gains on Sales of Loans 3,359 — — — 3,359 Net Gains on Securities 1,979 — — — 1,979 Trust and Investment Product Fees (3 ) 4,662 — (15 ) 4,644 Insurance Revenues 23 29 7,689 — 7,741 Noncash Items: Provision for Loan Losses 1,200 — — — 1,200 Depreciation and Amortization 4,002 3 72 238 4,315 Income Tax Expense (Benefit) 14,306 168 741 (1,269 ) 13,946 Segment Profit (Loss) 35,070 227 1,147 (1,260 ) 35,184 Segment Assets at December 31, 2016 2,958,585 1,851 8,494 (12,936 ) 2,955,994 Core Banking Trust and Investment Advisory Services Insurance Other Consolidated Totals Year Ended December 31, 2015 Net Interest Income $ 75,939 $ 8 $ 6 $ (401 ) $ 75,552 Net Gains on Sales of Loans 2,959 — — — 2,959 Net Gains on Securities 698 — — 27 725 Trust and Investment Product Fees 3 3,957 — (3 ) 3,957 Insurance Revenues 24 33 7,432 — 7,489 Noncash Items: Provision for Loan Losses — — — — — Depreciation and Amortization 3,994 13 107 150 4,264 Income Tax Expense (Benefit) 11,836 (24 ) 663 (869 ) 11,606 Segment Profit (Loss) 29,461 (70 ) 1,003 (330 ) 30,064 Segment Assets at December 31, 2015 2,367,296 1,338 7,022 (1,955 ) 2,373,701 |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The condensed financial statements of German American Bancorp, Inc. are presented below: CONDENSED BALANCE SHEETS December 31, 2017 2016 ASSETS Cash $ 24,777 $ 10,217 Securities Available-for-Sale, at Fair Value 353 353 Investment in Subsidiary Bank 342,054 322,138 Investment in Non-banking Subsidiaries 5,050 4,673 Other Assets 8,906 9,577 Total Assets $ 381,140 $ 346,958 LIABILITIES Borrowings $ 11,231 $ 10,975 Other Liabilities 5,338 5,716 Total Liabilities 16,569 16,691 SHAREHOLDERS’ EQUITY Common Stock 22,934 15,261 Additional Paid-in Capital 165,288 171,744 Retained Earnings 178,969 149,666 Accumulated Other Comprehensive Income (Loss) (2,620 ) (6,404 ) Total Shareholders’ Equity 364,571 330,267 Total Liabilities and Shareholders’ Equity $ 381,140 $ 346,958 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, 2017 2016 2015 INCOME Dividends from Subsidiaries Bank $ 25,000 $ 15,000 $ 15,900 Non-bank 975 1,000 1,504 Interest Income 34 20 30 Other Income (Loss) 25 (27 ) 21 Total Income 26,034 15,993 17,455 EXPENSES Salaries and Employee Benefits 533 1,006 500 Professional Fees 602 1,096 739 Occupancy and Equipment Expense 7 13 8 Interest Expense 877 742 491 Other Expenses 794 750 657 Total Expenses 2,813 3,607 2,395 INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 23,221 12,386 15,060 Income Tax Benefit 1,415 1,284 893 INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 24,636 13,670 15,953 Equity in Undistributed Income of Subsidiaries 16,040 21,514 14,111 NET INCOME 40,676 35,184 30,064 Other Comprehensive Income: Changes in Unrealized Gain (Loss) on Securities, Available-for-Sale 4,391 (10,202 ) 932 Changes in Unrecognized (Loss) in Postretirement Benefit Obligation, Net (138 ) (14 ) (10 ) TOTAL COMPREHENSIVE INCOME $ 44,929 $ 24,968 $ 30,986 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 40,676 $ 35,184 $ 30,064 Adjustments to Reconcile Net Income to Net Cash from Operations Change in Other Assets 431 2,085 (5,331 ) Change in Other Liabilities (122 ) 310 1,226 Equity Based Compensation 1,246 1,407 963 Excess Tax Benefit from Restricted Share Grant 240 200 89 Equity in Excess Undistributed Income of Subsidiaries (16,040 ) (21,514 ) (14,111 ) Net Cash from Operating Activities 26,431 17,672 12,900 CASH FLOWS FROM INVESTING ACTIVITIES Cash Used for Business Acquisitions — (15,992 ) — Net Cash from Investing Activities — (15,992 ) — CASH FLOWS FROM FINANCING ACTIVITIES Repayment of Long-term Debt — — (4,000 ) Issuance (Retirement) of Common Stock (29 ) 55 49 Employee Stock Purchase Plan — — 447 Dividends Paid (11,842 ) (10,630 ) (9,010 ) Net Cash from Financing Activities (11,871 ) (10,575 ) (12,514 ) Net Change in Cash and Cash Equivalents 14,560 (8,895 ) 386 Cash and Cash Equivalents at Beginning of Year 10,217 19,112 18,726 Cash and Cash Equivalents at End of Year $ 24,777 $ 10,217 $ 19,112 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations, Goodwill and Intangible Assets [Abstract] | |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Effective March 1, 2016, the Company acquired River Valley Bancorp ("River Valley") and its subsidiaries, including River Valley Financial Bank, pursuant to an Agreement and Plan of Reorganization dated October 26, 2015. The acquisition was accomplished by the merger of River Valley with and into the Company, immediately followed by the merger of River Valley Financial Bank with and into the Company's bank subsidiary, German American Bancorp. River Valley Financial Bank operated 14 banking offices in Southeast Indiana and 1 banking office in Northern Kentucky. River Valley's consolidated assets and equity (unaudited) as of February 29, 2016 totaled $516.3 million and $56.6 million , respectively. The Company accounted for the transaction under the acquisition method of accounting which means that the acquired assets and liabilities were recorded at fair value at the date of acquisition. In accordance with ASC 805, the Company has expensed approximately $4.3 million of direct acquisition costs and recorded $33.5 million of goodwill and $2.6 million of intangible assets. The intangible assets are related to core deposits and are being amortized over 8 years. For tax purposes, goodwill totaling $33.5 million is non-deductible but will be evaluated annually for impairment. The following table summarizes the fair value of the total consideration transferred as a part of the River Valley acquisition as well as the fair value of identifiable assets acquired and liabilities assumed as of the effective date of the transaction. Consideration Cash for Options and Fractional Shares $ 395 Cash Consideration 24,975 Equity Instruments 62,022 Fair Value of Total Consideration Transferred $ 87,392 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Cash $ 17,877 Federal Funds Sold and Other Short-term Investments 6,477 Interest-bearing Time Deposits with Banks 992 Securities 132,396 Loans 317,760 Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost 3,127 Premises, Furniture & Equipment 9,650 Other Real Estate 882 Intangible Assets 2,613 Company Owned Life Insurance 12,842 Accrued Interest Receivable and Other Assets 9,139 Deposits - Non-interest Bearing (9,584 ) Deposits - Interest Bearing (395,862 ) FHLB Advances and Other Borrowings (49,910 ) Accrued Interest Payable and Other Liabilities (4,529 ) Total Identifiable Net Assets $ 53,870 Goodwill $ 33,522 Under the terms of the merger agreement, the Company issued approximately 1,942,000 shares of its common stock to the former shareholders of River Valley. Each River Valley common shareholder of record at the effective time of the merger became entitled to receive 0.770 shares of common stock of the Company for each of their former shares of River Valley common stock. In connection with the closing of the merger, the Company paid to River Valley's shareholders of record at the close of business on February 29, 2016, cash consideration of $9.90 per River Valley share (an aggregate of $24,975 to shareholders) and the Company paid approximately $395 to persons who held options to purchase River Valley common stock (all of which rights were canceled at the effective time of the merger and were not assumed by the Company). This acquisition was consistent with the Company’s strategy to build a regional presence in Southern Indiana. The acquisition offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded region. The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted cash flows. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which are loans that have shown evidence of credit deterioration since origination. Receivables acquired that were not subject to these requirements include non-impaired loans and customer receivables with a fair value of $309.0 million and unpaid principal of $316.4 million on the date of acquisition. On January 1, 2017, the Company acquired certain assets of an existing insurance agency office located in Madison, Indiana. The assets became a part of German American Insurance, Inc., the Company's property and casualty insurance entity. The purchase price of this transaction was $ 209 in cash and resulted in $ 209 in customer list intangible. The customer relationship intangible is being amortized over seven years utilizing the straight-line method and deducted for tax purposes over 15 years using the straight-line method. Goodwill The changes in the carrying amount of goodwill for the periods ended December 31, 2017, 2016, and 2015, were classified as follows: 2017 2016 2015 Beginning of Year $ 54,058 $ 20,536 $ 20,536 Acquired Goodwill — 33,522 — Impairment — — — End of Year $ 54,058 $ 54,058 $ 20,536 Of the $54,058 carrying amount of goodwill, $52,726 is allocated to the core banking segment, and $1,332 is allocated to the insurance segment for the period ended December 31, 2017 and 2016. Of the $20,536 carrying amount of goodwill, $19,204 is allocated to the core banking segment, and $1,332 is allocated to the insurance segment for the periods ended December 31, 2015. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2017, the Company’s reporting units had positive equity, and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting units exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value. Acquired Intangible Assets Acquired intangible assets were as follows as of year end: 2017 Gross Amount Accumulated Amortization Core Banking Core Deposit Intangible $ 11,617 $ (9,694 ) Branch Acquisition Intangible 257 (257 ) Insurance Customer List 5,408 (5,229 ) Total $ 17,282 $ (15,180 ) Acquired intangible assets were as follows as of year end: 2016 Gross Amount Accumulated Amortization Core Banking Core Deposit Intangible $ 11,617 $ (8,782 ) Branch Acquisition Intangible 257 (257 ) Insurance Customer List 5,199 (5,199 ) Total $ 17,073 $ (14,238 ) Amortization Expense was $ 942 , $ 1,062 and $ 790 , for 2017, 2016 and 2015. Estimated amortization expense for each of the next five years is as follows: 2018 $ 753 2019 564 2020 383 2021 229 2022 114 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The tables below summarize the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2017 and 2016, net of tax: December 31, 2017 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total Beginning Balance $ (6,312 ) $ (92 ) $ (6,404 ) Other Comprehensive Income (Loss) Before Reclassification 4,778 (143 ) 4,635 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (387 ) 5 (382 ) Net Current Period Other Comprehensive Income (Loss) 4,391 (138 ) 4,253 ASU 2018-02 Adoption (414 ) (55 ) (469 ) Ending Balance $ (2,335 ) $ (285 ) $ (2,620 ) December 31, 2016 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total Beginning Balance $ 3,890 $ (78 ) $ 3,812 Other Comprehensive Income (Loss) Before Reclassification (8,916 ) (18 ) (8,934 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1,286 ) 4 (1,282 ) Net Current Period Other Comprehensive Income (Loss) (10,202 ) (14 ) (10,216 ) Ending Balance $ (6,312 ) $ (92 ) $ (6,404 ) The table below summarizes the classifications out of accumulated other comprehensive income (loss) by component for the year ended December 31, 2017: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented Unrealized Gains and Losses on Available-for-Sale Securities $ 596 Net Gain (Loss) on Securities (209 ) Income Tax Expense 387 Net of Tax Amortization of Post Retirement Plan Items Actuarial Gains (Losses) $ (8 ) Salaries and Employee Benefits 3 Income Tax Expense (5 ) Net of Tax Total Reclassifications for the Period $ 382 The table below summarizes the classifications out of accumulated other comprehensive income (loss) by component for the year ended December 31, 2016: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented Unrealized Gains and Losses on Available-for-Sale Securities $ 1,979 Net Gain (Loss) on Securities (693 ) Income Tax Expense 1,286 Net of Tax Amortization of Post Retirement Plan Items Actuarial Gains (Losses) $ (6 ) Salaries and Employee Benefits 2 Income Tax Expense (4 ) Net of Tax Total Reclassifications for the Period $ 1,282 The table below summarizes the classifications out of accumulated other comprehensive income (loss) by component for the year ended December 31, 2015: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented Unrealized Gains and Losses on Available-for-Sale Securities $ 725 Net Gain (Loss) on Securities (254 ) Income Tax Expense 471 Net of Tax Amortization of Post Retirement Plan Items Actuarial Gains (Losses) $ (5 ) Salaries and Employee Benefits 2 Income Tax Expense (3 ) Net of Tax Total Reclassifications for the Period $ 468 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table represents selected quarterly financial data for the Company: Interest Income Net Interest Income Net Income Basic Earnings per Share Diluted Earnings per Share 2017 First Quarter $ 27,033 $ 24,725 $ 9,556 $ 0.42 $ 0.42 Second Quarter 27,401 24,813 9,839 0.43 0.43 Third Quarter 27,986 24,917 9,660 0.42 0.42 Fourth Quarter 28,610 25,454 11,621 0.51 0.51 2016 First Quarter $ 22,680 $ 20,784 $ 5,146 $ 0.25 $ 0.25 Second Quarter 26,850 24,671 9,788 0.43 0.43 Third Quarter 26,734 24,560 10,185 0.45 0.45 Fourth Quarter 27,101 24,889 10,065 0.44 0.44 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 12, 2018, German American Bancorp entered into a Purchase and Assumption Agreement (the “Purchase Agreement”) with MainSource Bank, a wholly-owned subsidiary of MainSource Financial Group, Inc. (“MainSource”), which provides for the acquisition by German American Bancorp of five MainSource Bank branch locations ( four in Columbus, Indiana, and one in Greensburg, Indiana), and certain related assets, and the assumption by German American Bancorp of certain related liabilities. Pursuant to the Purchase Agreement, German American Bancorp has agreed to assume approximately $160 million in deposits and purchase approximately $134 million in loans associated with the five bank branches. German American Bancorp has agreed to pay a purchase price equal to the sum of: (i) 8.0% of the balances of certain checking accounts and other demand withdrawal accounts (excluding governmental accounts with public funds); (ii) 4.5% of the balances of governmental accounts with public funds, excluding time deposits; (iii) 4.5% of the balances of money market and savings deposits, excluding governmental accounts with public funds; (iv) the net book value of all assets, including loans but excluding any accrued interest on such loans; and (v) the accrued interest with respect to purchased loans. The purchase price will be adjusted to reflect increases or decreases in the deposit balances during the six month period following the closing date. Upon written notice, German American Bancorp will also have the ability to put loans back to MainSource Bank during such six month period. The expected premium to be paid for deposits under the Agreement is approximately $8 million . German American Bancorp is also assuming the obligations of MainSource Bank related to certain leases covering the five bank branches. The transaction is expected to close in the second quarter of 2018, subject to regulatory approval, the closing of the previously-announced pending merger of MainSource and First Financial Bancorp, and other customary closing conditions. Effective April 1, 2018, the legal name of German American Bancorp will be changed to German American Bank. The new name corresponds with the trade name already being used by the banking subsidiary and promotes further distinction in nomenclature between the banking subsidiary and the bank holding company, German American Bancorp, Inc. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation German American Bancorp, Inc's. operations are primarily comprised of three business segments: core banking, trust and investment advisory services, and insurance operations. The accounting and reporting policies of German American Bancorp, Inc. and its subsidiaries conform to U.S. generally accepted accounting principles. The more significant policies are described below. The consolidated financial statements include the accounts of the Company and its subsidiaries after elimination of all material intercompany accounts and transactions. Certain prior year amounts have been reclassified to conform with current classifications. Reclassifications had no impact on shareholders' equity or net income. To prepare financial statements in conformity with accounting principles generally accepted in the United States of America management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Securities | Securities Securities classified as available-for-sale are securities that the Company intends to hold for an indefinite period of time, but not necessarily until maturity. These include securities that management may use as part of its asset/liability strategy, or that may be sold in response to changes in interest rates, changes in prepayment risk, or similar reasons. Equity securities with readily determinable fair values are classified as available-for-sale. Equity securities that do not have readily determinable fair values are carried at historical cost and evaluated for impairment on a periodic basis. Securities classified as available-for-sale are reported at fair value with unrealized gains or losses included as a separate component of equity, net of tax. Securities classified as held-to-maturity are securities that the Company has both the ability and positive intent to hold to maturity. Securities held-to-maturity are carried at amortized cost. Premium amortization is deducted from, and discount accretion is added to, interest income using the level yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on trade date and are computed on the identified securities method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Fair value is determined based on collateral value and prevailing market prices for loans with similar characteristics. Net unrealized gains or losses are recorded through earnings. Mortgage loans held for sale are generally sold on a servicing released basis. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. |
Loans | Loans Loans that management originates and has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term without anticipating prepayments. All classes of loans are generally placed on non-accrual status when scheduled principal or interest payments are past due for 90 days or more or when the borrower’s ability to repay becomes doubtful. Uncollected accrued interest for each class of loans is reversed against income at the time a loan is placed on non-accrual. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All classes of loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans are typically charged-off at 180 days past due, or earlier if deemed uncollectible. Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection. |
Certain Purchased Loans | Certain Purchased Loans The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or special mention. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors. Loan impairment is reported when full repayment under the terms of the loan is not expected. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Commercial and industrial loans, commercial real estate loans, and agricultural loans are evaluated individually for impairment. Smaller balance homogeneous loans are evaluated for impairment in total. Such loans include real estate loans secured by one-to-four family residences and loans to individuals for household, family and other personal expenditures. Individually evaluated loans on non-accrual are generally considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported at the fair value of the collateral net of disposition costs. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and risk classifications and is based on the actual loss history experienced by the Company over a 20 quarter average. The Company separately assigns allocations for substandard and special mention commercial and agricultural credits as well as other categories of loans based on migration analysis techniques. This actual loss experience is supplemented with other external and internal factors based on the risks present for each portfolio segment. These factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Commercial Loans and Retail Loans. Commercial Loans have been classified according to the following risk characteristics: Commercial and Industrial Loans and Leases, Commercial Real Estate, and Agricultural Loans. Commercial and Industrial loans are primarily based on the cash flows of the business operations and secured by assets being financed and other assets such as accounts receivable and inventory. Commercial Real Estate Loans and Agricultural Loans are primarily based on cash flow of the borrower and their business and further secured by real estate. All types of commercial and agricultural (real estate secured and non-real estate) may also come with personal guarantees of the borrowers and business owners. Retail Loans have been classified according to the following risk characteristics: Home Equity Loans, Consumer Loans and Residential Mortgage Loans. Retail loans are generally dependent on personal income of the customer, and repayment is dependent on borrower’s personal cash flow and employment status which can be affected by general economic conditions. Additionally, collateral values may fluctuate based on the impact of economic conditions on residential real estate values and other consumer type assets such as automobiles. Loans or portions of loans shall be charged off when there is a distinct probability of loss identified. A distinct probability of loss exists when it has been determined that any remaining sources of repayment are insufficient to cover all outstanding principal. The probable loss is immediately calculated based on the value of the remaining sources of repayment and charged to the allowance for loan loss. |
Servicing Rights | Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts when available or, alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Through the acquisition of River Valley Bancorp in 2016, German American acquired a portfolio of servicing rights on mortgage loans. The fair value of mortgage servicing rights were $547 and $611 at December 31, 2017 and 2016, respectively. On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. Servicing fee income is reported on the income statement as other operating income. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of mortgage servicing right is netted against loan servicing fee income. |
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (FHLB) Stock The Bank is a member of the FHLB of Indianapolis. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Premises, Furniture and Equipment | Premises, Furniture and Equipment Land is carried at cost. Premises, furniture, and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives ranging generally from 10 to 40 years. Furniture, fixtures, and equipment are depreciated using the straight-line method with useful lives ranging generally from 3 to 10 years. |
Other Real Estate | Other Real Estate Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Company’s balance sheet. Other intangible assets consist of core deposit and acquired customer relationship intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives, which range from 6 to 10 years. |
Company Owned Life Insurance | Company Owned Life Insurance The Company has purchased life insurance policies on certain directors and executives. This life insurance is recorded at its cash surrender value or the amount that can be realized, which considers any adjustments or changes that are probable at settlement. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe currently that there are any such matters that will have a material impact on the financial statements. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Restrictions on Cash | Restrictions on Cash At December 31, 2017 and 2016, respectively, the Company was required to have $10,967 and $11,659 on deposit with the Federal Reserve, or as cash on hand. |
Long-term Assets | Long-term Assets Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and changes in unrecognized amounts in pension and other postretirement benefits, which are also recognized as a separate component of equity. |
Income Taxes | Income Taxes Income tax is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax liabilities and assets are determined at each balance sheet date and are the result of differences in the financial statement and tax bases of assets and liabilities. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. |
Retirement Plans | Retirement Plans Pension expense under the suspended defined benefit plan is the net of interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Earnings Per Share | Earnings Per Share Earnings per share are based on net income divided by the weighted average number of shares outstanding during the period. Diluted earnings per share show the potential dilutive effect of additional common shares issuable under the Company’s stock based compensation plans. Earnings per share are retroactively restated for stock splits and stock dividends. |
Cash Flow Reporting | Cash Flow Reporting The Company reports net cash flows for customer loan transactions, deposit transactions, deposits made with other financial institutions and short-term borrowings. Cash and cash equivalents are defined to include cash on hand, demand deposits in other institutions and Federal Funds Sold. |
Fair Value of Financial Instruments | Fair Values of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 15. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Fair Value Measurements | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant 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. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Level 3 pricing is obtained from a third-party based upon similar trades that are not traded frequently without adjustment by the Company. At December 31, 2017, the Company held $6.0 million in Level 3 securities which consist of $5.6 million of non-rated Obligations of State and Political Subdivisions and $353 thousand of equity securities that are not actively traded. Absent the credit rating, significant assumptions must be made such that the credit risk input becomes an unobservable input and thus these securities are reported by the Company in a Level 3 classification. Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Impaired Loans: Fair values for impaired collateral dependent loans are generally based on appraisals obtained from licensed real estate appraisers and in certain circumstances consideration of offers obtained to purchase properties prior to foreclosure. Appraisals for commercial real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value in the cost to replace the current property. Value of market comparison approach evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and an investor's required return. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Comparable sales adjustments are based on known sales prices of similar type and similar use properties and duration of time that the property has been on the market to sell. Such adjustments made in the appraisal process are typically significant and result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Company’s Risk Management Area reviews the assumptions and approaches utilized in the appraisal. In determining the value of impaired collateral dependent loans and other real estate owned, significant unobservable inputs may be used which include: physical condition of comparable properties sold, net operating income generated by the property and investor rates of return. Other Real Estate: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate (ORE) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property utilizing similar techniques as discussed above for Impaired Loans, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, impairment loss is recognized. Loan Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. Loans Held-for-Sale: The fair values of loans held for sale are determined by using quoted prices for similar assets, adjusted for specific attributes of that loan resulting in a Level 2 classification. Cash and Short-Term Investments: The carrying amount of cash and short-term investments approximate fair values and are classified as Level 1 or Level 2. FHLB Stock and Other Restricted Stock: It is not practical to determine the fair values of FHLB stock and other restricted stock due to restrictions placed on their transferability. Loans: Fair values of loans, excluding loans held for sale and collateral dependent impaired loans carried at fair value, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued as described previously. The methods utilized to estimate fair value of loans do not necessarily represent an exit price. Accrued Interest Receivable: The carrying amount of accrued interest approximates fair value resulting in a Level 2 or Level 3 classification consistent with the asset they are associated with. Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for fixed rate time deposits are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Short-term Borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. Long-Term Debt: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. The fair values of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. Accrued Interest Payable: The carrying amount of accrued interest approximates fair value resulting in a Level 2 or Level 3 classification consistent with the liability they are associated with. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the "FASB") amended existing guidance (ASU 2014-09 Revenue From Contracts With Customers (Topic 606)) related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments allow for one of two transition methods: full retrospective or modified retrospective. The full retrospective approach requires application to all periods presented. The modified retrospective transition requires application to uncompleted contracts at the date of adoption. Periods prior to the date of adoption are not retrospectively revised, but a cumulative effect is recognized at the date of initial application on uncompleted contracts. The Company adopted the new guidance effective January 1, 2018 and intends to utilize the modified retrospective method. The Company established a task force for evaluating the impact of ASU 2014-09 on the Company's consolidated results. The new standard did not result in a material change in the manner in which it recognizes revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. Revenue streams within Other Noninterest Income that the Company evaluated primarily included Service Charges on Deposit Accounts, Trust and Investment Product Fees, and Insurance Revenues. This pronouncement will not have a material impact on the Company's consolidated results of operations and financial condition as the Company's core revenue does not fall under this guidance. Even though this pronouncement will not have a material impact on the Company's consolidated results, the Company will have additional disclosures in its Form 10-Q for the first quarter of 2018 as required by this guidance. In January 2016, the FASB amended existing guidance (ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities) that requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. It requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. It requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It eliminates that requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company notes that the impact of adoption is to carry the equity security at fair value through the income statement or at cost, less impairment when fair value is not readily determinable, with observable price changes being recognized in earnings. The Company doesn't expect the impact to have a material effect on the Company's operating results or financial condition; however, it will impact the fair value disclosures included in Note 15 - Fair Value. For additional information on this equity security, see Note 2 - Securities. In February 2016, the FASB amended existing guidance (ASU No. 2016-02, Leases (Topic 842)) that requires lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. These amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Based on our leases outstanding as of December 31, 2017, the Company does not expect this new guidance to have a material impact on the consolidated results of operation. However as a result of this new guidance, the Company anticipates an estimated increase in its Consolidated Balance Sheet of approximately $6,000 . This impact will vary based on the Company's future decisions to enter into new lease agreements or exit/renew current lease agreements prior to the date of implementation. In June 2016, the FASB issued guidance (ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326)) to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. This standard will be effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Transition: • For debt securities with other-than-temporary impairment (OTTI), the guidance will be applied prospectively. • Existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance. • For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has formed a CECL committee that is assessing data and system needs in order to evaluate the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but can not estimate the amount at this time. In August 2016, the FASB issued ASU (ASU No. 2016-15, Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments) to address the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows including the following: • Debt Prepayment or Debt Extinguishment Costs; • Settlement of Zero-Coupon Bonds or Debt with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate; • Contingent Consideration payments Made Soon After a Business Combination; • Proceeds From the Settlement of Insurance Claims; • Proceeds From the Settlement of BOLI and COLI Policies; • Distributions Received From Equity Method Investees; • Beneficial Interests in Securitization Transactions; and • Application of the Predominance Principle. These amendments are effective for public business entities beginning January 1, 2018. This guidance currently has no material impact on the Company's Consolidated Statements of Cash Flows; however, the Company will continue to monitor it going forward. In March 2017, the FASB amended existing guidance (ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20)) to amend the amortization period for certain purchased callable debt securities held at a premium. The amortization period has been shortened to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. These amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company early adopted this guidance in 2017 and it did not have a material impact on the Company's operating results or financial condition. In January 2018, the FASB issued new guidance (ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220)) to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. This amendment is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company early adopted this guidance in 2017 and it did not have a material impact on the Company's operating results or financial condition. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Schedule of Securities Available-for-Sale | The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of Securities Available-for-Sale were as follows: Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 2017 Obligations of State and Political Subdivisions $ 267,437 $ 6,733 $ (861 ) $ 273,309 MBS/CMO – Residential 476,205 416 (9,289 ) 467,332 Equity Securities 353 — — 353 Total $ 743,995 $ 7,149 $ (10,150 ) $ 740,994 2016 Obligations of State and Political Subdivisions $ 247,350 $ 3,847 $ (3,678 ) $ 247,519 MBS/CMO - Residential 471,852 480 (10,418 ) 461,914 Equity Securities 353 — — 353 Total $ 719,555 $ 4,327 $ (14,096 ) $ 709,786 |
Schedule of Securities by Contractual Maturity | The amortized cost and fair value of Securities at December 31, 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed and Equity Securities are not due at a single maturity date and are shown separately. Amortized Cost Fair Value Securities Available-for-Sale: Due in one year or less $ 2,706 $ 2,739 Due after one year through five years 23,789 24,531 Due after five years through ten years 78,661 81,215 Due after ten years 162,281 164,824 MBS/CMO - Residential 476,205 467,332 Equity Securities 353 353 Total $ 743,995 $ 740,994 |
Schedule of Proceeds from the Sales of Securities | 2017 2016 2015 Proceeds from the Sales of Securities are summarized below: Available- for-Sale Available- for-Sale Available- for-Sale Proceeds from Sales $ 49,459 $ 165,102 $ 18,999 Gross Gains on Sales 596 1,979 725 Income Taxes on Gross Gains 209 693 254 |
Schedule of Securities with Unrealized Losses | Below is a summary of securities with unrealized losses as of year-end 2017 and 2016, presented by length of time the securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss At December 31, 2017 Obligations of State and Political Subdivisions $ 33,230 $ (237 ) $ 24,161 $ (624 ) $ 57,391 $ (861 ) MBS/CMO - Residential 172,354 (2,048 ) 250,520 (7,241 ) 422,874 (9,289 ) Equity Securities — — — — — — Total $ 205,584 $ (2,285 ) $ 274,681 $ (7,865 ) $ 480,265 $ (10,150 ) Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss At December 31, 2016 Obligations of State and Political Subdivisions $ 108,918 $ (3,678 ) $ — $ — $ 108,918 $ (3,678 ) MBS/CMO - Residential 356,040 (8,782 ) 47,271 (1,636 ) 403,311 (10,418 ) Equity Securities — — — — — — Total $ 464,958 $ (12,460 ) $ 47,271 $ (1,636 ) $ 512,229 $ (14,096 ) |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of: December 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Included in Other Assets: Interest Rate Swaps $ 87,788 $ 1,564 $ 67,902 $ 1,291 Included in Other Liabilities: Interest Rate Swaps $ 87,788 $ 1,633 $ 67,902 $ 1,238 |
Derivative Instruments Consolidated Statement | The following table presents the effect of derivative instruments on the Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015 are as follows: 2017 2016 2015 Interest Rate Swaps: Included in Other Income $ 478 $ 1,207 $ 491 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Classifications of Loans | Loans were comprised of the following classifications at December 31: 2017 2016 Commercial: Commercial and Industrial Loans and Leases $ 486,668 $ 457,372 Commercial Real Estate Loans 926,729 856,094 Agricultural Loans 333,227 303,128 Retail: Home Equity Loans 152,187 133,575 Consumer Loans 67,475 59,945 Residential Mortgage Loans 178,733 183,290 Subtotal 2,145,019 1,993,404 Less: Unearned Income (3,381 ) (3,449 ) Allowance for Loan Losses (15,694 ) (14,808 ) Loans, net $ 2,125,944 $ 1,975,147 |
Schedule of Activity in Allowance for Loan Losses | The following tables present the activity in the allowance for loan losses by portfolio class for the years ended December 31, 2017, 2016, and 2015: Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total December 31, 2017 Beginning Balance $ 3,725 $ 5,452 $ 4,094 $ 283 $ 235 $ 329 $ 690 $ 14,808 Provision for Loan Losses 1,147 (689 ) 840 78 517 44 (187 ) 1,750 Recoveries 14 48 9 8 272 63 — 414 Loans Charged-off (151 ) (220 ) (49 ) (39 ) (726 ) (93 ) — (1,278 ) Ending Balance $ 4,735 $ 4,591 $ 4,894 $ 330 $ 298 $ 343 $ 503 $ 15,694 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total December 31, 2016 Beginning Balance $ 4,242 $ 6,342 $ 2,115 $ 383 $ 230 $ 414 $ 712 $ 14,438 Provision for Loan Losses (483 ) (846 ) 2,000 33 273 245 (22 ) 1,200 Recoveries 32 10 1 3 208 16 — 270 Loans Charged-off (66 ) (54 ) (22 ) (136 ) (476 ) (346 ) — (1,100 ) Ending Balance $ 3,725 $ 5,452 $ 4,094 $ 283 $ 235 $ 329 $ 690 $ 14,808 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total December 31, 2015 Beginning Balance $ 4,627 $ 7,273 $ 1,123 $ 246 $ 354 $ 622 $ 684 $ 14,929 Provision for Loan Losses (451 ) (688 ) 992 160 (48 ) 7 28 — Recoveries 102 107 — 10 236 18 — 473 Loans Charged-off (36 ) (350 ) — (33 ) (312 ) (233 ) — (964 ) Ending Balance $ 4,242 $ 6,342 $ 2,115 $ 383 $ 230 $ 414 $ 712 $ 14,438 |
Schedule of Allowance for Loan Losses and Recorded Investment in Loans | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of December 31, 2017 and 2016: December 31, 2017 Total Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Allowance for Loan Losses: Ending Allowance Balance Attributable to Loans: Individually Evaluated for Impairment $ 2,228 $ 1,399 $ 829 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 13,455 3,333 3,759 4,894 330 298 338 503 Acquired with Deteriorated Credit Quality 11 3 3 — — — 5 — Total Ending Allowance Balance $ 15,694 $ 4,735 $ 4,591 $ 4,894 $ 330 $ 298 $ 343 $ 503 Loans: Loans Individually Evaluated for Impairment $ 11,633 $ 5,918 $ 5,552 $ 163 $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 2,133,752 481,152 917,036 336,849 152,757 67,647 178,311 n/m (2) Loans Acquired with Deteriorated Credit Quality 9,117 988 6,452 789 — — 888 n/m (2) Total Ending Loans Balance (1) $ 2,154,502 $ 488,058 $ 929,040 $ 337,801 $ 152,757 $ 67,647 $ 179,199 n/m (2) (1) Total recorded investment in loans includes $9,483 in accrued interest. (2) n/m = not meaningful December 31, 2016 Total Commercial and Industrial Loans and Leases Commercial Real Estate Loans Agricultural Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Allowance for Loan Losses: Ending Allowance Balance Attributable to Loans: Individually Evaluated for Impairment $ 255 $ 24 $ 231 $ — $ — $ — $ — $ — Collectively Evaluated for Impairment 14,448 3,698 5,172 4,046 283 230 329 690 Acquired with Deteriorated Credit Quality 105 3 49 48 — 5 — — Total Ending Allowance Balance $ 14,808 $ 3,725 $ 5,452 $ 4,094 $ 283 $ 235 $ 329 $ 690 Loans: Loans Individually Evaluated for Impairment $ 1,239 $ 113 $ 832 $ 294 $ — $ — $ — n/m (2) Loans Collectively Evaluated for Impairment 1,989,128 456,769 849,510 305,946 134,032 60,046 182,825 n/m (2) Loans Acquired with Deteriorated Credit Quality 11,048 1,656 7,688 706 — 53 945 n/m (2) Total Ending Loans Balance (1) $ 2,001,415 $ 458,538 $ 858,030 $ 306,946 $ 134,032 $ 60,099 $ 183,770 n/m (2) (1) Total recorded investment in loans includes $8,011 in accrued interest. (2) n/m = not meaningful |
Schedule of Loans Individually Evaluated for Impairment | The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2017 and 2016: Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated December 31, 2017 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 1,205 $ 1,166 $ — Commercial Real Estate Loans 1,812 1,495 — Agricultural Loans 919 749 — Subtotal 3,936 3,410 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 4,804 4,763 1,402 Commercial Real Estate Loans 4,489 4,465 832 Agricultural Loans — — — Subtotal 9,293 9,228 2,234 Total $ 13,229 $ 12,638 $ 2,234 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 1,255 $ 797 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 252 $ 208 $ 6 (1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts. Unpaid Principal Balance (1) Recorded Investment Allowance for Loan Losses Allocated December 31, 2016 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 85 $ 29 $ — Commercial Real Estate Loans 1,278 784 — Agricultural Loans 356 294 — Subtotal 1,719 1,107 — With An Allowance Recorded: Commercial and Industrial Loans and Leases 148 107 27 Commercial Real Estate Loans 839 827 280 Agricultural Loans 588 497 48 Subtotal 1,575 1,431 355 Total $ 3,294 $ 2,538 $ 355 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 1,018 $ 531 $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 910 $ 768 $ 100 (1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts. The following tables present loans individually evaluated for impairment by class of loans for the years ended December 31, 2017, 2016 and 2015: Average Recorded Investment Interest Income Recognized Cash Basis Recognized December 31, 2017 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 635 $ 27 $ 2 Commercial Real Estate Loans 1,184 57 29 Agricultural Loans 690 24 16 Subtotal 2,509 108 47 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,986 4 2 Commercial Real Estate Loans 2,842 17 6 Agricultural Loans 363 — — Subtotal 5,191 21 8 Total $ 7,700 $ 129 $ 55 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 792 $ 25 $ 25 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 238 $ 19 $ 7 Average Recorded Investment Interest Income Recognized Cash Basis Recognized December 31, 2016 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 295 $ 29 $ 15 Commercial Real Estate Loans 1,688 92 73 Agricultural Loans 461 2 1 Subtotal 2,444 123 89 With An Allowance Recorded: Commercial and Industrial Loans and Leases 102 1 1 Commercial Real Estate Loans 1,587 6 2 Agricultural Loans 249 — — Subtotal 1,938 7 3 Total $ 4,382 $ 130 $ 92 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 489 $ 21 $ 10 Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ 711 $ — $ — Average Recorded Investment Interest Income Recognized Cash Basis Recognized December 31, 2015 With No Related Allowance Recorded: Commercial and Industrial Loans and Leases $ 447 $ 29 $ 29 Commercial Real Estate Loans 1,282 104 103 Agricultural Loans 9 1 1 Subtotal 1,738 134 133 With An Allowance Recorded: Commercial and Industrial Loans and Leases 1,726 89 89 Commercial Real Estate Loans 2,840 5 3 Agricultural Loans — — — Subtotal 4,566 94 92 Total $ 6,304 $ 228 $ 225 Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above) $ 196 $ — $ — Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above) $ — $ — $ — |
Schedule of Recorded Investment in Non-accrual Loans | The following tables present the recorded investment in non-accrual loans and loans past due 90 days or more still on accrual by class of loans as of December 31, 2017 and 2016: Loans Past Due 90 Days or More Non-Accrual & Still Accruing 2017 2016 2017 2016 Commercial and Industrial Loans and Leases $ 4,753 $ 86 $ — $ 2 Commercial Real Estate Loans 4,618 1,408 474 — Agricultural Loans 748 792 268 — Home Equity Loans 199 73 — — Consumer Loans 286 85 — — Residential Mortgage Loans 487 1,349 — — Total $ 11,091 $ 3,793 $ 742 $ 2 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 866 $ 1,264 $ — $ — |
Schedule of Aging of Recorded Investment in Past Due Loans | The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2017 and 2016: Total 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due December 31, 2017 Commercial and Industrial Loans and Leases $ 488,058 $ 209 $ 1,365 $ 905 $ 2,479 $ 485,579 Commercial Real Estate Loans 929,040 1,229 1,650 677 3,556 925,484 Agricultural Loans 337,801 27 — 268 295 337,506 Home Equity Loans 152,757 366 93 199 658 152,099 Consumer Loans 67,647 246 97 286 629 67,018 Residential Mortgage Loans 179,199 2,850 1,247 261 4,358 174,841 Total (1) $ 2,154,502 $ 4,927 $ 4,452 $ 2,596 $ 11,975 $ 2,142,527 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 9,117 $ 342 $ 74 $ 27 $ 443 $ 8,674 (1) Total recorded investment in loans includes $9,483 in accrued interest. Total 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Loans Not Past Due December 31, 2016 Commercial and Industrial Loans and Leases $ 458,538 $ 20 $ 4 $ 77 $ 101 $ 458,437 Commercial Real Estate Loans 858,030 1,509 21 330 1,860 856,170 Agricultural Loans 306,946 84 50 610 744 306,202 Home Equity Loans 134,032 707 16 73 796 133,236 Consumer Loans 60,099 175 147 85 407 59,692 Residential Mortgage Loans 183,770 3,470 1,251 806 5,527 178,243 Total (1) $ 2,001,415 $ 5,965 $ 1,489 $ 1,981 $ 9,435 $ 1,991,980 Loans Acquired With Deteriorated Credit Quality (Included in the Total Above) $ 11,048 $ 130 $ — $ 627 $ 757 $ 10,291 Loans Acquired in Current Year (Included in the Total Above) $ 262,809 $ 2,752 $ 862 $ 1,126 $ 4,740 $ 258,069 (1) Total recorded investment in loans includes $8,011 in accrued interest. |
Schedule of Recorded Investment of Troubled Debt Restructurings | The following tables present the recorded investment of troubled debt restructurings by class of loans as of December 31, 2017 and 2016: Total Performing Non-Accrual (1) December 31, 2017 Commercial and Industrial Loans and Leases $ 258 $ 125 $ 133 Commercial Real Estate Loans 24 24 — Total $ 282 $ 149 $ 133 Total Performing Non-Accrual (1) December 31, 2016 Commercial and Industrial Loans and Leases $ 28 $ 28 $ — Commercial Real Estate Loans — — — Total $ 28 $ 28 $ — (1) The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page. |
Schedule of Loans by Class Modified as Troubled Debt Restructuring | The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended December 31, 2017: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment December 31, 2017 Commercial and Industrial Loans and Leases 2 $ 477 $ 477 Commercial Real Estate Loans 1 28 28 Total 3 $ 505 $ 505 The troubled debt restructurings described above increased the allowance for loan losses by $149 and resulted in charge-offs of $0 during the year ending December 31, 2017. |
Schedule of Risk Category of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful Total December 31, 2017 Commercial and Industrial Loans and Leases $ 462,212 $ 7,901 $ 17,945 $ — $ 488,058 Commercial Real Estate Loans 894,027 18,037 16,976 — 929,040 Agricultural Loans 304,032 27,288 6,481 — 337,801 Total $ 1,660,271 $ 53,226 $ 41,402 $ — $ 1,754,899 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ 2,604 $ 1,647 $ 3,978 $ — $ 8,229 Pass Special Mention Substandard Doubtful Total December 31, 2016 Commercial and Industrial Loans and Leases $ 437,353 $ 10,454 $ 10,731 $ — $ 458,538 Commercial Real Estate Loans 814,033 26,549 17,448 — 858,030 Agricultural Loans 287,975 14,670 4,301 — 306,946 Total $ 1,539,361 $ 51,673 $ 32,480 $ — $ 1,623,514 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ 1,897 $ 3,121 $ 5,032 $ — $ 10,050 Loans Acquired in Current Year (Included in the Total Above) $ 175,915 $ 11,638 $ 8,145 $ — $ 195,698 |
Schedule of Recorded Investment in Home Equity, Consumer and Residential Mortgage Loans | The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of December 31, 2017 and 2016: Home Equity Loans Consumer Loans Residential Mortgage Loans December 31, 2017 Performing $ 152,558 $ 67,361 $ 178,712 Nonperforming 199 286 487 Total $ 152,757 $ 67,647 $ 179,199 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ — $ — $ 888 Home Equity Loans Consumer Loans Residential Mortgage Loans December 31, 2016 Performing $ 133,959 $ 60,014 $ 182,421 Nonperforming 73 85 1,349 Total $ 134,032 $ 60,099 $ 183,770 Loans Acquired with Deteriorated Credit Quality (Included in the Total Above) $ — $ 53 $ 945 |
Schedule of Loans Purchased/Sold During the Period | The following table presents financing receivables purchased and/or sold during the year by portfolio segment: Commercial and Industrial Loans and Leases Commercial Real Estate Loans Total December 31, 2017 Purchases $ 800 $ 4,747 $ 5,547 Sales — 1,106 1,106 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Total December 31, 2016 Purchases $ — $ 5,383 $ 5,383 Sales — 2,029 2,029 |
Schedule of Contractually Required Payments on Loans Purchased with Deteriorated Credit Quality | Contractually required payments receivable of loans purchased with evidence of credit deterioration during the year ended December 31, 2016 are included in the table below. The value of the purchased loans included in the table are as of acquisition date. There were no such loans purchased during the year ended December 31, 2017. 2017 2016 Commercial and Industrial Loans $ — $ 220 Commercial Real Estate Loans — 10,612 Agricultural Loans — 896 Home Equity Loans — — Consumer Loans — 87 Residential Mortgage Loans — 2,279 Total $ — $ 14,094 Cash Flows Expected to be Collected at Acquisition $ — $ 11,051 Fair Value of Acquired Loans at Acquisition — 8,807 |
Schedule of Carrying Amount of Loans with Deterioration of Credit Quality | The recorded investment of those loans at December 31 in the years presented is as follows: 2017 2016 2015 Commercial and Industrial Loans $ 988 $ 1,656 $ 1,325 Commercial Real Estate Loans 6,452 7,688 5,363 Agricultural Loans 789 706 — Consumer Loans — 53 — Residential Mortgage Loans 888 945 867 Total $ 9,117 $ 11,048 $ 7,555 Carrying Amount, Net of Allowance $ 9,106 $ 10,943 $ 7,555 |
Schedule of Accretable Yield, or Income Expected to be Collected | Accretable yield, or income expected to be collected, is as follows: 2017 2016 2015 Balance at January 1 $ 2,521 $ 1,279 $ 1,685 New Loans Purchased — 1,395 — Accretion of Income (425 ) (943 ) (483 ) Reclassifications from Non-accretable Difference 638 985 104 Charge-off of Accretable Yield — (195 ) (27 ) Balance at December 31 $ 2,734 $ 2,521 $ 1,279 |
Schedule of Loans to Shareholders | A summary of the activity of these loans follows: Balance January 1, 2017 Additions Changes in Persons Included Deductions Balance December 31, 2017 Collected Charged-off $ 14,276 $ 11,340 $ — $ (9,754 ) $ — $ 15,862 |
Premises, Furniture, and Equi34
Premises, Furniture, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises, Furniture and Equipment | Premises, furniture, and equipment was comprised of the following classifications at December 31: 2017 2016 Land $ 11,541 $ 10,255 Buildings and Improvements 60,076 55,676 Furniture and Equipment 28,902 26,830 Total Premises, Furniture and Equipment 100,519 92,761 Less: Accumulated Depreciation (46,273 ) (44,531 ) Total $ 54,246 $ 48,230 |
Schedule of Capital Leased Assets | The Company has included the leases in buildings and improvements as follows: 2017 2016 Capital Leases $ 4,219 $ 4,219 Less: Accumulated Depreciation (1,312 ) (1,102 ) Total $ 2,907 $ 3,117 |
Schedule of Future Minimum Lease Payments under Capitalized Leases | The following is a schedule of future minimum lease payments under the capitalized leases, together with the present value of net minimum lease payments at year end 2017: 2018 $ 519 2019 519 2020 519 2021 519 2022 519 Thereafter 4,511 Total minimum lease payments 7,106 Less: Amount representing interest (3,456 ) Present Value of Net Minimum Lease Payments $ 3,650 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits Maturities | At year end 2017, stated maturities of time deposits were as follows: 2018 $ 221,568 2019 55,575 2020 58,106 2021 37,081 2022 15,376 Thereafter 179 Total $ 387,885 |
FHLB Advances and Other Borro36
FHLB Advances and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of Borrowings, Debt and Repurchase Agreements | Information regarding each of these types of borrowings or other indebtedness is as follows: December 31, 2017 2016 Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities $ 126,836 $ 105,820 Junior Subordinated Debentures assumed from American Community Bancorp, Inc. 5,624 5,474 Junior Subordinated Debentures assumed from River Valley Bancorp, Inc. 5,607 5,501 Capital Lease Obligation 3,650 3,765 Long-term Borrowings 141,717 120,560 Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities $ 92,000 $ 91,500 Federal Funds Purchased — 3,642 Repurchase Agreements 41,499 42,412 Short-term Borrowings 133,499 137,554 Total Borrowings $ 275,216 $ 258,114 |
Schedule of Repurchase Agreements | 2017 2016 Average Daily Balance During the Year $ 40,476 $ 33,317 Average Interest Rate During the Year 0.47 % 0.39 % Maximum Month-end Balance During the Year $ 47,934 $ 45,313 Weighted Average Interest Rate at Year-end 0.50 % 0.50 % |
Schedule of Principal Payments on Long-Term Borrowings | At December 31, 2017, scheduled principal payments on long-term FHLB Advances are as follows: 2018 $ 40,210 2019 31,075 2020 25,551 2021 5,000 2022 — Thereafter 25,000 Total $ 126,836 |
Schedule of Issuance of Subordinated Debentures | The following table summarizes the terms of each issuance: Date of Issuance Issuance Amount Carrying Amount at December 31, 2017 Variable Rate Rate as of December 31, 2017 Rate as of December 31, 2016 Maturity Date ACB Trust I 5/6/2005 $ 5,155 $ 3,553 90 day LIBOR + 2.15% 3.84 % 3.15 % May, 2035 ACB Trust II 7/15/2005 3,093 2,071 90 day LIBOR + 1.85% 3.30 % 2.77 % July, 2035 RIVR Statutory Trust 1 3/26/2003 7,217 5,607 3-Month LIBOR + 3.15% 4.82 % 4.15 % March, 2033 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Consolidated and Bank Actual Capital and Minimum Required Levels | At December 31, 2017, consolidated and bank actual capital and minimum required levels are presented below: Actual: Minimum Required For Capital Adequacy Purposes: Minimum Required To Be Well-Capitalized Under Prompt Corrective Action Regulations: Amount Ratio Amount Ratio (1) Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 339,391 13.62 % $ 199,363 8.00 % N/A N/A Bank 305,773 12.29 199,093 8.00 $ 248,866 10.00 % Tier 1 (Core) Capital (to Risk Weighted Assets) Consolidated $ 323,697 12.99 % $ 149,522 6.00 % N/A N/A Bank 290,079 11.66 149,320 6.00 $ 199,093 8.00 % Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) Consolidated $ 312,637 12.55 % $ 112,142 4.50 % N/A N/A Bank 290,079 11.66 111,990 4.50 $ 161,763 6.50 % Tier 1 Core Capital (to Average Assets) Consolidated $ 323,697 10.71 % $ 120,862 4.00 % N/A N/A Bank 290,079 9.63 120,509 4.00 $ 150,637 5.00 % (1) Excludes capital conservation buffer. At December 31, 2016, consolidated and bank actual capital and minimum required levels are presented below: Actual: Minimum Required For Capital Adequacy Purposes: Minimum Required To Be Well-Capitalized Under Prompt Corrective Action Regulations: Amount Ratio Amount Ratio (1) Amount Ratio Total Capital (to Risk Weighted Assets) Consolidated $ 307,754 13.30 % $ 185,117 8.00 % N/A N/A Bank 288,793 12.48 185,104 8.00 $ 231,380 10.00 % Tier 1 (Core) Capital (to Risk Weighted Assets) Consolidated $ 292,946 12.66 % $ 138,838 6.00 % N/A N/A Bank 273,985 11.84 138,828 6.00 $ 185,104 8.00 % Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) Consolidated $ 282,138 12.19 % $ 104,129 4.50 % N/A N/A Bank 273,985 11.84 104,121 4.50 $ 150,397 6.50 % Tier 1 Core Capital (to Average Assets) Consolidated $ 292,946 10.09 % $ 116,165 4.00 % N/A N/A Bank 273,985 9.46 115,853 4.00 $ 144,816 5.00 % (1) Excludes capital conservation buffer. |
Schedule of Stock Option Activity under Equity Incentive Plan | The following table presents information related to stock options under the Company’s equity incentive plan during the years ended 2017, 2016 and 2015: 2017 2016 2015 Intrinsic Value of Options Exercised $ — $ 137 $ 559 Cash Received from Option Exercises $ — $ — $ — Tax Benefit of Option Exercises $ — $ 54 $ 224 Weighted Average Fair Value of Options Granted $ — $ — $ — |
Schedule of Restricted Stock and Cash Entitlements Expense | The following table presents expense recorded for restricted stock and cash entitlements as well as the related tax effect for the years ended 2017, 2016, and 2015: 2017 2016 2015 Restricted Stock Expense $ 1,246 $ 1,407 $ 963 Cash Entitlement Expense 657 570 580 Tax Effect (746 ) (782 ) (615 ) Net of Tax $ 1,157 $ 1,195 $ 928 |
Schedule of Restricted Stock Grants Outstanding | The following table presents information on restricted stock grants outstanding for the period shown: Year Ended December 31, 2017 Restricted Shares Weighted Average Market Price at Grant Outstanding at Beginning of Period 53,163 $ 22.32 Granted 43,386 31.77 Issued and Vested (49,733 ) 24.79 Forfeited (510 ) 27.22 Outstanding at End of Period 46,306 $ 28.47 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Accumulated Postretirement Benefits Obligations | Changes in Accumulated Postretirement Benefit Obligations: 2017 2016 Obligation at the Beginning of Year $ 814 $ 783 Unrecognized Loss (Gain) 226 24 Components of Net Periodic Postretirement Benefit Cost Service Cost 50 41 Interest Cost 29 29 Net Expected Benefit Payments (58 ) (63 ) Obligation at End of Year $ 1,061 $ 814 |
Schedule of Components of Postretirement Benefit Expense | Components of Postretirement Benefit Expense: 2017 2016 2015 Service Cost $ 50 $ 41 $ 42 Interest Cost 29 29 26 Amortization of Unrecognized Net (Gain) Loss 8 6 5 Net Postretirement Benefit Expense 87 76 73 Net (Gain) Loss During Period Recognized in Other Comprehensive Income (Loss) 218 18 17 Total Recognized in Net Postretirement Benefit Expense and Other Comprehensive Income $ 305 $ 94 $ 90 |
Schedule of Assumptions Used to Determine Net Periodic Cost and Benefit Obligations | Assumptions Used to Determine Net Periodic Cost and Benefit Obligations: 2017 2016 2015 Discount Rate 3.35 % 3.72 % 3.82 % |
Schedule of Assumption of Health Care Cost Trend Rates at Year-end | Assumed Health Care Cost Trend Rates at Year-end: 2017 2016 Health Care Cost Trend Rate Assumed for Next Year 8.00 % 8.00 % Rate that the Cost Trend Rate Gradually Declines to 5.00 % 5.00 % Year that the Rate Reaches the Rate it is Assumed to Remain at 2023 2022 |
Schedule of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects as of December 31, 2017: One-Percentage-Point Increase One-Percentage-Point Decrease Effect on Total of Service and Interest Cost $ 7 $ (6 ) Effect on Postretirement Benefit Obligation $ 66 $ (59 ) |
Schedule of Estimated Future Benefits | The following postretirement benefit payments, which reflect expected future service, are expected to be paid: 2018 $ 84 2019 91 2020 86 2021 77 2022 85 2023-2027 547 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: 2017 2016 2015 Current Federal $ 10,481 $ 11,468 $ 11,407 Current State 473 447 898 Deferred Federal 276 1,611 (920 ) Deferred State 304 420 221 Total $ 11,534 $ 13,946 $ 11,606 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense is reconciled to the 35% statutory rate applied to the pre-tax income for the years presented in the table below: 2017 2016 2015 Statutory Rate Times Pre-tax Income $ 18,274 $ 17,195 $ 14,585 Add (Subtract) the Tax Effect of: Income from Tax-exempt Loans and Investments (3,304 ) (2,929 ) (2,250 ) State Income Tax, Net of Federal Tax Effect 505 564 727 General Business Tax Credits (715 ) (621 ) (750 ) Company Owned Life Insurance (469 ) (346 ) (296 ) Revaluation of Deferred Tax Assets/Liabilities due to Tax Reform (2,284 ) — — Other Differences (473 ) 83 (410 ) Total Income Taxes $ 11,534 $ 13,946 $ 11,606 |
Schedule of Net Deferred Tax Liability | The net deferred tax liability at December 31 consists of the following: 2017 2016 Deferred Tax Assets: Allowance for Loan Losses $ 3,645 $ 5,269 Unrealized Loss on Securities 665 3,456 Deferred Compensation and Employee Benefits 702 1,146 Other-than-temporary Impairment 243 377 Accrued Expenses 645 956 Business Combination Fair Value Adjustments 1,041 2,838 Pension and Postretirement Plans 100 67 Non-Accrual Loan Interest Income 152 158 Net Operating Loss Carryforward — 196 Unused Tax Credits — 86 Other 302 472 Total Deferred Tax Assets 7,495 15,021 Deferred Tax Liabilities: Depreciation (1,309 ) (1,612 ) Leasing Activities, Net (7,343 ) (9,845 ) FHLB Stock Dividends (196 ) (304 ) Prepaid Expenses (368 ) (461 ) Intangibles (597 ) (1,113 ) Deferred Loan Fees (483 ) (691 ) Mortgage Servicing Rights (133 ) (231 ) General Business Tax Credits — (235 ) Other (1,098 ) (1,692 ) Total Deferred Tax Liabilities (11,527 ) (16,184 ) Valuation Allowance — — Net Deferred Tax Liability $ (4,032 ) $ (1,163 ) |
Per Share Data (Tables)
Per Share Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Basic Earnings Per Share and Diluted Earnings Per Share | The computation of Basic Earnings per Share and Diluted Earnings per Share are provided below: 2017 2016 2015 Basic Earnings per Share: (1) Net Income $ 40,676 $ 35,184 $ 30,064 Weighted Average Shares Outstanding 22,924,726 22,389,137 19,882,503 Basic Earnings per Share $ 1.77 $ 1.57 $ 1.51 Diluted Earnings per Share: (1) Net Income $ 40,676 $ 35,184 $ 30,064 Weighted Average Shares Outstanding 22,924,726 22,389,137 19,882,503 Stock Options, Net — 1,979 5,871 Diluted Weighted Average Shares Outstanding 22,924,726 22,391,116 19,888,374 Diluted Earnings per Share $ 1.77 $ 1.57 $ 1.51 |
Operating Lease Commitments (Ta
Operating Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Premises and Equipment | The following is a schedule of future minimum lease payments under operating leases for premises and equipment at year end 2017: 2018 $ 1,050 2019 956 2020 843 2021 752 2022 638 Thereafter 2,980 Total $ 7,219 |
Commitments and Off-balance S42
Commitments and Off-balance Sheet Items (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingent Liabilities | Commitments and contingent liabilities are summarized as follows, at December 31: 2017 2016 Fixed Rate Variable Rate Fixed Variable Commitments to Fund Loans: Consumer Lines $ 10,997 $ 260,934 $ 10,081 $ 237,087 Commercial Operating Lines 19,267 308,381 24,598 274,619 Residential Mortgages 17,255 655 13,760 765 Total Commitments to Fund Loans $ 47,519 $ 569,970 $ 48,439 $ 512,471 Commitments to Sell Loans: Mandatory $ 681 $ — $ 973 $ — Non-mandatory $ 24,628 $ 188 $ 30,708 $ 677 Standby Letters of Credit $ 959 $ 4,736 $ 1,059 $ 7,869 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: Fair Value Measurements at December 31, 2017 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Obligations of State and Political Subdivisions $ — $ 267,660 $ 5,649 $ 273,309 MBS/CMO - Residential — 467,332 — 467,332 Equity Securities — — 353 353 Total Securities $ — $ 734,992 $ 6,002 $ 740,994 Loans Held-for-Sale $ — $ 6,719 $ — $ 6,719 Derivative Assets $ — $ 1,564 $ — $ 1,564 Mortgage Servicing Rights $ — $ 547 $ — $ 547 Derivative Liabilities $ — $ 1,633 $ — $ 1,633 Fair Value Measurements at December 31, 2016 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Obligations of State and Political Subdivisions $ — $ 240,495 $ 7,024 $ 247,519 MBS/CMO - Residential — 461,914 — 461,914 Equity Securities — — 353 353 Total Securities $ — $ 702,409 $ 7,377 $ 709,786 Loans Held-for-Sale $ — $ 15,273 $ — $ 15,273 Derivative Assets $ — $ 1,291 $ — $ 1,291 Mortgage Servicing Rights $ — $ 611 $ — $ 611 Derivative Liabilities $ — $ 1,238 $ — $ 1,238 |
Schedule of Reconciliation of all Assets Measured at Fair Value on Recurring Basis, Using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2016: Obligations of State and Political Subdivisions Equity Securities 2017 2016 2017 2016 Balance of Recurring Level 3 Assets at January 1 $ 7,024 $ 8,749 $ 353 $ 353 Total Gains or Losses Included in Other Comprehensive Income (60 ) (75 ) — — Maturities / Calls (1,315 ) (1,650 ) — — Purchases — — — — Balance of Recurring Level 3 Assets at December 31 $ 5,649 $ 7,024 $ 353 $ 353 |
Schedule of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2017 Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Impaired Loans Commercial and Industrial Loans $ — $ — $ 3,354 $ 3,354 Commercial Real Estate Loans — — 3,438 3,438 Fair Value Measurements at December 31, 2016 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Assets: Impaired Loans Commercial and Industrial Loans $ — $ — $ 60 $ 60 Commercial Real Estate Loans — — 348 348 |
Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis Validation Techniques | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2017 and 2016: December 31, 2017 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Impaired Loans - Commercial and Industrial Loans $ 3,354 Sales comparison approach Adjustment for physical condition of comparable properties sold 0% - 95% Impaired Loans - Commercial Real Estate Loans $ 3,438 Sales comparison approach Adjustment for physical condition of comparable properties sold 30% - 76% December 31, 2016 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average) Impaired Loans - Commercial and Industrial Loans $ 60 Sales comparison approach Adjustment for physical condition of comparable properties sold 0% - 100% Impaired Loans - Commercial Real Estate Loans $ 348 Sales comparison approach Adjustment for physical condition of comparable properties sold 33% - 77% |
Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending December 31, 2017 and 2016. Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the table. Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision. Fair Value Measurements at December 31, 2017 Using Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Short-term Investments $ 70,359 $ 58,233 $ 12,126 $ — $ 70,359 Loans, Net 2,119,152 — — 2,120,154 2,120,154 FHLB Stock and Other Restricted Stock 13,048 N/A N/A N/A N/A Accrued Interest Receivable 13,258 — 3,574 9,684 13,258 Financial Liabilities: Demand, Savings, and Money Market Deposits (2,096,167 ) (2,096,167 ) — — (2,096,167 ) Time Deposits (387,885 ) — (388,640 ) — (388,640 ) Short-term Borrowings (133,499 ) — (133,499 ) — (133,499 ) Long-term Debt (141,717 ) — (129,366 ) (11,052 ) (140,418 ) Accrued Interest Payable (1,058 ) — (1,042 ) (16 ) (1,058 ) Fair Value Measurements at December 31, 2016 Using Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Short-term Investments $ 64,816 $ 48,467 $ 16,349 $ — $ 64,816 Loans, Net 1,974,074 — — 1,980,523 1,980,523 FHLB Stock and Other Restricted Stock 13,048 N/A N/A N/A N/A Accrued Interest Receivable 11,413 — 3,289 8,124 11,413 Financial Liabilities: Demand, Savings, and Money Market Deposits (1,971,370 ) (1,971,370 ) — — (1,971,370 ) Time Deposits (378,181 ) — (378,000 ) — (378,000 ) Short-term Borrowings (137,554 ) — (137,554 ) — (137,554 ) Long-term Debt (120,560 ) — (109,709 ) (10,793 ) (120,502 ) Accrued Interest Payable (789 ) — (775 ) (14 ) (789 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the three segments are the same as those of the Company. The evaluation process for segments does not include holding company income and expense. Holding company amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the column labeled “Other” below, along with amounts to eliminate transactions between segments. Core Banking Trust and Investment Advisory Services Insurance Other Consolidated Totals Year Ended December 31, 2017 Net Interest Income $ 100,659 $ 6 $ 9 $ (765 ) $ 99,909 Net Gains on Sales of Loans 3,280 — — — 3,280 Net Gains on Securities 593 — — 3 596 Trust and Investment Product Fees 3 5,272 — (3 ) 5,272 Insurance Revenues 28 34 7,917 — 7,979 Noncash Items: Provision for Loan Losses 1,750 — — — 1,750 Depreciation and Amortization 4,351 4 76 256 4,687 Income Tax Expense (Benefit) 12,262 145 512 (1,385 ) 11,534 Segment Profit (Loss) 39,520 217 918 21 40,676 Segment Assets at December 31, 2017 3,142,096 1,987 10,078 (9,801 ) 3,144,360 Core Banking Trust and Investment Advisory Services Insurance Other Consolidated Totals Year Ended December 31, 2016 Net Interest Income $ 95,562 $ 1 $ 7 $ (666 ) $ 94,904 Net Gains on Sales of Loans 3,359 — — — 3,359 Net Gains on Securities 1,979 — — — 1,979 Trust and Investment Product Fees (3 ) 4,662 — (15 ) 4,644 Insurance Revenues 23 29 7,689 — 7,741 Noncash Items: Provision for Loan Losses 1,200 — — — 1,200 Depreciation and Amortization 4,002 3 72 238 4,315 Income Tax Expense (Benefit) 14,306 168 741 (1,269 ) 13,946 Segment Profit (Loss) 35,070 227 1,147 (1,260 ) 35,184 Segment Assets at December 31, 2016 2,958,585 1,851 8,494 (12,936 ) 2,955,994 Core Banking Trust and Investment Advisory Services Insurance Other Consolidated Totals Year Ended December 31, 2015 Net Interest Income $ 75,939 $ 8 $ 6 $ (401 ) $ 75,552 Net Gains on Sales of Loans 2,959 — — — 2,959 Net Gains on Securities 698 — — 27 725 Trust and Investment Product Fees 3 3,957 — (3 ) 3,957 Insurance Revenues 24 33 7,432 — 7,489 Noncash Items: Provision for Loan Losses — — — — — Depreciation and Amortization 3,994 13 107 150 4,264 Income Tax Expense (Benefit) 11,836 (24 ) 663 (869 ) 11,606 Segment Profit (Loss) 29,461 (70 ) 1,003 (330 ) 30,064 Segment Assets at December 31, 2015 2,367,296 1,338 7,022 (1,955 ) 2,373,701 |
Parent Company Financial Stat45
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | The condensed financial statements of German American Bancorp, Inc. are presented below: CONDENSED BALANCE SHEETS December 31, 2017 2016 ASSETS Cash $ 24,777 $ 10,217 Securities Available-for-Sale, at Fair Value 353 353 Investment in Subsidiary Bank 342,054 322,138 Investment in Non-banking Subsidiaries 5,050 4,673 Other Assets 8,906 9,577 Total Assets $ 381,140 $ 346,958 LIABILITIES Borrowings $ 11,231 $ 10,975 Other Liabilities 5,338 5,716 Total Liabilities 16,569 16,691 SHAREHOLDERS’ EQUITY Common Stock 22,934 15,261 Additional Paid-in Capital 165,288 171,744 Retained Earnings 178,969 149,666 Accumulated Other Comprehensive Income (Loss) (2,620 ) (6,404 ) Total Shareholders’ Equity 364,571 330,267 Total Liabilities and Shareholders’ Equity $ 381,140 $ 346,958 |
Condensed Statements of Income and Comprehensive Income | The condensed financial statements of German American Bancorp, Inc. are presented below: CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, 2017 2016 2015 INCOME Dividends from Subsidiaries Bank $ 25,000 $ 15,000 $ 15,900 Non-bank 975 1,000 1,504 Interest Income 34 20 30 Other Income (Loss) 25 (27 ) 21 Total Income 26,034 15,993 17,455 EXPENSES Salaries and Employee Benefits 533 1,006 500 Professional Fees 602 1,096 739 Occupancy and Equipment Expense 7 13 8 Interest Expense 877 742 491 Other Expenses 794 750 657 Total Expenses 2,813 3,607 2,395 INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 23,221 12,386 15,060 Income Tax Benefit 1,415 1,284 893 INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 24,636 13,670 15,953 Equity in Undistributed Income of Subsidiaries 16,040 21,514 14,111 NET INCOME 40,676 35,184 30,064 Other Comprehensive Income: Changes in Unrealized Gain (Loss) on Securities, Available-for-Sale 4,391 (10,202 ) 932 Changes in Unrecognized (Loss) in Postretirement Benefit Obligation, Net (138 ) (14 ) (10 ) TOTAL COMPREHENSIVE INCOME $ 44,929 $ 24,968 $ 30,986 |
Condensed Statements of Cash Flows | The condensed financial statements of German American Bancorp, Inc. are presented below: CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 40,676 $ 35,184 $ 30,064 Adjustments to Reconcile Net Income to Net Cash from Operations Change in Other Assets 431 2,085 (5,331 ) Change in Other Liabilities (122 ) 310 1,226 Equity Based Compensation 1,246 1,407 963 Excess Tax Benefit from Restricted Share Grant 240 200 89 Equity in Excess Undistributed Income of Subsidiaries (16,040 ) (21,514 ) (14,111 ) Net Cash from Operating Activities 26,431 17,672 12,900 CASH FLOWS FROM INVESTING ACTIVITIES Cash Used for Business Acquisitions — (15,992 ) — Net Cash from Investing Activities — (15,992 ) — CASH FLOWS FROM FINANCING ACTIVITIES Repayment of Long-term Debt — — (4,000 ) Issuance (Retirement) of Common Stock (29 ) 55 49 Employee Stock Purchase Plan — — 447 Dividends Paid (11,842 ) (10,630 ) (9,010 ) Net Cash from Financing Activities (11,871 ) (10,575 ) (12,514 ) Net Change in Cash and Cash Equivalents 14,560 (8,895 ) 386 Cash and Cash Equivalents at Beginning of Year 10,217 19,112 18,726 Cash and Cash Equivalents at End of Year $ 24,777 $ 10,217 $ 19,112 |
Business Combinations, Goodwi46
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations, Goodwill and Intangible Assets [Abstract] | |
Schedule of Total Consideration Transferred and Fair Value of Identifiable Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the total consideration transferred as a part of the River Valley acquisition as well as the fair value of identifiable assets acquired and liabilities assumed as of the effective date of the transaction. Consideration Cash for Options and Fractional Shares $ 395 Cash Consideration 24,975 Equity Instruments 62,022 Fair Value of Total Consideration Transferred $ 87,392 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Cash $ 17,877 Federal Funds Sold and Other Short-term Investments 6,477 Interest-bearing Time Deposits with Banks 992 Securities 132,396 Loans 317,760 Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost 3,127 Premises, Furniture & Equipment 9,650 Other Real Estate 882 Intangible Assets 2,613 Company Owned Life Insurance 12,842 Accrued Interest Receivable and Other Assets 9,139 Deposits - Non-interest Bearing (9,584 ) Deposits - Interest Bearing (395,862 ) FHLB Advances and Other Borrowings (49,910 ) Accrued Interest Payable and Other Liabilities (4,529 ) Total Identifiable Net Assets $ 53,870 Goodwill $ 33,522 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the periods ended December 31, 2017, 2016, and 2015, were classified as follows: 2017 2016 2015 Beginning of Year $ 54,058 $ 20,536 $ 20,536 Acquired Goodwill — 33,522 — Impairment — — — End of Year $ 54,058 $ 54,058 $ 20,536 |
Schedule of Acquired Intangible Assets | Acquired Intangible Assets Acquired intangible assets were as follows as of year end: 2017 Gross Amount Accumulated Amortization Core Banking Core Deposit Intangible $ 11,617 $ (9,694 ) Branch Acquisition Intangible 257 (257 ) Insurance Customer List 5,408 (5,229 ) Total $ 17,282 $ (15,180 ) Acquired intangible assets were as follows as of year end: 2016 Gross Amount Accumulated Amortization Core Banking Core Deposit Intangible $ 11,617 $ (8,782 ) Branch Acquisition Intangible 257 (257 ) Insurance Customer List 5,199 (5,199 ) Total $ 17,073 $ (14,238 ) |
Schedule of Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows: 2018 $ 753 2019 564 2020 383 2021 229 2022 114 |
Other Comprehensive Income (L47
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below summarize the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2017 and 2016, net of tax: December 31, 2017 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total Beginning Balance $ (6,312 ) $ (92 ) $ (6,404 ) Other Comprehensive Income (Loss) Before Reclassification 4,778 (143 ) 4,635 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (387 ) 5 (382 ) Net Current Period Other Comprehensive Income (Loss) 4,391 (138 ) 4,253 ASU 2018-02 Adoption (414 ) (55 ) (469 ) Ending Balance $ (2,335 ) $ (285 ) $ (2,620 ) December 31, 2016 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total Beginning Balance $ 3,890 $ (78 ) $ 3,812 Other Comprehensive Income (Loss) Before Reclassification (8,916 ) (18 ) (8,934 ) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1,286 ) 4 (1,282 ) Net Current Period Other Comprehensive Income (Loss) (10,202 ) (14 ) (10,216 ) Ending Balance $ (6,312 ) $ (92 ) $ (6,404 ) |
Schedule of Classifications Out of Accumulated Other Comprehensive Income (Loss) by Component | The table below summarizes the classifications out of accumulated other comprehensive income (loss) by component for the year ended December 31, 2017: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented Unrealized Gains and Losses on Available-for-Sale Securities $ 596 Net Gain (Loss) on Securities (209 ) Income Tax Expense 387 Net of Tax Amortization of Post Retirement Plan Items Actuarial Gains (Losses) $ (8 ) Salaries and Employee Benefits 3 Income Tax Expense (5 ) Net of Tax Total Reclassifications for the Period $ 382 The table below summarizes the classifications out of accumulated other comprehensive income (loss) by component for the year ended December 31, 2016: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented Unrealized Gains and Losses on Available-for-Sale Securities $ 1,979 Net Gain (Loss) on Securities (693 ) Income Tax Expense 1,286 Net of Tax Amortization of Post Retirement Plan Items Actuarial Gains (Losses) $ (6 ) Salaries and Employee Benefits 2 Income Tax Expense (4 ) Net of Tax Total Reclassifications for the Period $ 1,282 The table below summarizes the classifications out of accumulated other comprehensive income (loss) by component for the year ended December 31, 2015: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented Unrealized Gains and Losses on Available-for-Sale Securities $ 725 Net Gain (Loss) on Securities (254 ) Income Tax Expense 471 Net of Tax Amortization of Post Retirement Plan Items Actuarial Gains (Losses) $ (5 ) Salaries and Employee Benefits 2 Income Tax Expense (3 ) Net of Tax Total Reclassifications for the Period $ 468 |
Quarterly Financial Data (Una48
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | The following table represents selected quarterly financial data for the Company: Interest Income Net Interest Income Net Income Basic Earnings per Share Diluted Earnings per Share 2017 First Quarter $ 27,033 $ 24,725 $ 9,556 $ 0.42 $ 0.42 Second Quarter 27,401 24,813 9,839 0.43 0.43 Third Quarter 27,986 24,917 9,660 0.42 0.42 Fourth Quarter 28,610 25,454 11,621 0.51 0.51 2016 First Quarter $ 22,680 $ 20,784 $ 5,146 $ 0.25 $ 0.25 Second Quarter 26,850 24,671 9,788 0.43 0.43 Third Quarter 26,734 24,560 10,185 0.45 0.45 Fourth Quarter 27,101 24,889 10,065 0.44 0.44 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)segmentquarter | Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($) | Feb. 29, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Number of segments | segment | 3 | ||||
Periods used to calculate general component for allowance for loan losses (in quarters) | quarter | 20 | ||||
Required cash on deposit at Federal Reserve | $ 10,967 | $ 11,659 | |||
Assets | 3,144,360 | 2,955,994 | $ 2,373,701 | ||
Liabilities and Equity | 3,144,360 | 2,955,994 | |||
ASU 2016-02 | Scenario, Forecast | |||||
Property, Plant and Equipment [Line Items] | |||||
Assets | $ 6,000 | ||||
Liabilities and Equity | $ 6,000 | ||||
River Valley Bancorp | |||||
Property, Plant and Equipment [Line Items] | |||||
Fair value of mortgage servicing rights | $ 547 | $ 611 | |||
Assets | $ 516,300 | ||||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Finite-lived intangible asset, useful life | 6 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Finite-lived intangible asset, useful life | 10 years | ||||
Buildings and related components | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises, furniture, and equipment, useful life | 10 years | ||||
Buildings and related components | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises, furniture, and equipment, useful life | 40 years | ||||
Furniture, fixtures and equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises, furniture, and equipment, useful life | 3 years | ||||
Furniture, fixtures and equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises, furniture, and equipment, useful life | 10 years |
Securities (Schedule of Securit
Securities (Schedule of Securities Available-for-Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 743,995 | $ 719,555 |
Gross Unrealized Gains | 7,149 | 4,327 |
Gross Unrealized Losses | (10,150) | (14,096) |
Fair Value | 740,994 | 709,786 |
Obligations of State and Political Subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 267,437 | 247,350 |
Gross Unrealized Gains | 6,733 | 3,847 |
Gross Unrealized Losses | (861) | (3,678) |
Fair Value | 273,309 | 247,519 |
MBS/CMO – Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 476,205 | 471,852 |
Gross Unrealized Gains | 416 | 480 |
Gross Unrealized Losses | (9,289) | (10,418) |
Fair Value | 467,332 | 461,914 |
Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 353 | 353 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 353 | $ 353 |
Securities (Schedule of Secur51
Securities (Schedule of Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Available-for-Sale: Amortized cost | ||
Due in one year or less | $ 2,706 | |
Due after one year through five years | 23,789 | |
Due after five years through ten years | 78,661 | |
Due after ten years | 162,281 | |
Total Amortized Cost | 743,995 | $ 719,555 |
Securities Available-for-Sale: Fair Value | ||
Due in one year or less | 2,739 | |
Due after one year through five years | 24,531 | |
Due after five years through ten years | 81,215 | |
Due after ten years | 164,824 | |
Fair Value | 740,994 | 709,786 |
MBS/CMO – Residential | ||
Securities Available-for-Sale: Amortized cost | ||
Available-for-Sale, amortized cost | 476,205 | |
Total Amortized Cost | 476,205 | 471,852 |
Securities Available-for-Sale: Fair Value | ||
Available-for-Sale, Fair Value | 467,332 | |
Fair Value | 467,332 | 461,914 |
Equity Securities | ||
Securities Available-for-Sale: Amortized cost | ||
Available-for-Sale, amortized cost | 353 | |
Total Amortized Cost | 353 | 353 |
Securities Available-for-Sale: Fair Value | ||
Available-for-Sale, Fair Value | 353 | |
Fair Value | $ 353 | $ 353 |
Securities (Schedule of Proceed
Securities (Schedule of Proceeds from the Sales of Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-Sale | |||
Proceeds from Sales | $ 49,459 | $ 165,102 | $ 18,999 |
Gross Gains on Sales | 596 | 1,979 | 725 |
Income Taxes on Gross Gains | 209 | 693 | $ 254 |
Carrying amount of securities pledged | $ 165,404 | $ 186,572 |
Securities (Schedule of Secur53
Securities (Schedule of Securities with Unrealized Losses) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2009USD ($) | Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($)investment | |
Less than 12 Months | |||
Fair Value | $ 205,584 | $ 464,958 | |
Unrealized Loss | (2,285) | (12,460) | |
12 Months or More | |||
Fair Value | 274,681 | 47,271 | |
Unrealized Loss | (7,865) | (1,636) | |
Total | |||
Fair Value | 480,265 | 512,229 | |
Unrealized Loss | (10,150) | $ (14,096) | |
Number of equity securities held in non-controlling investment banking | investment | 1 | ||
Original investment of equity security | $ 1,350 | ||
Obligations of State and Political Subdivisions | |||
Less than 12 Months | |||
Fair Value | 33,230 | $ 108,918 | |
Unrealized Loss | (237) | (3,678) | |
12 Months or More | |||
Fair Value | 24,161 | 0 | |
Unrealized Loss | (624) | 0 | |
Total | |||
Fair Value | 57,391 | 108,918 | |
Unrealized Loss | (861) | (3,678) | |
MBS/CMO – Residential | |||
Less than 12 Months | |||
Fair Value | 172,354 | 356,040 | |
Unrealized Loss | (2,048) | (8,782) | |
12 Months or More | |||
Fair Value | 250,520 | 47,271 | |
Unrealized Loss | (7,241) | (1,636) | |
Total | |||
Fair Value | 422,874 | 403,311 | |
Unrealized Loss | (9,289) | (10,418) | |
Equity Securities | |||
Less than 12 Months | |||
Fair Value | 0 | 0 | |
Unrealized Loss | 0 | 0 | |
12 Months or More | |||
Fair Value | 0 | 0 | |
Unrealized Loss | 0 | 0 | |
Total | |||
Fair Value | 0 | 0 | |
Unrealized Loss | $ 0 | $ 0 | |
Number of equity securities held in non-controlling investment banking | investment | 1 | ||
Other than temporary impairment losses in available for sale securities recognized | $ 997 |
Derivatives (Derivative Instrum
Derivatives (Derivative Instruments and Hedging Activities) (Details) - Interest Rate Swaps - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Included in Other Assets: | ||
Interest Rate Swaps, Notional Amount | $ 87,800 | $ 67,900 |
Other Assets | ||
Included in Other Assets: | ||
Interest Rate Swaps, Notional Amount | 87,788 | 67,902 |
Interest Rate Swaps, Fair Value | 1,564 | 1,291 |
Other Liabilities | ||
Included in Other Liabilities: | ||
Interest Rate Swaps, Notional Amount | 87,788 | 67,902 |
Interest Rate Swaps, Fair Value | $ 1,633 | $ 1,238 |
Derivatives (Derivative Instr55
Derivatives (Derivative Instruments Consolidated Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Rate Swaps | Other Income | |||
Derivative [Line Items] | |||
Included in Other Income | $ 478 | $ 1,207 | $ 491 |
Loans (Classifications of Loans
Loans (Classifications of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 2,145,019 | $ 1,993,404 | ||
Less: Unearned Income | (3,381) | (3,449) | ||
Allowance for Loan Losses | (15,694) | (14,808) | $ (14,438) | $ (14,929) |
Loans, Net | 2,125,944 | 1,975,147 | ||
Commercial and Industrial Loans and Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan Losses | (4,735) | (3,725) | (4,242) | (4,627) |
Commercial Real Estate Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan Losses | (4,591) | (5,452) | (6,342) | (7,273) |
Agricultural Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan Losses | (4,894) | (4,094) | (2,115) | (1,123) |
Home Equity Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan Losses | (330) | (283) | (383) | (246) |
Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan Losses | (298) | (235) | (230) | (354) |
Residential Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan Losses | (343) | (329) | $ (414) | $ (622) |
Commercial | Commercial and Industrial Loans and Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 486,668 | 457,372 | ||
Commercial | Commercial Real Estate Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 926,729 | 856,094 | ||
Commercial | Agricultural Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 333,227 | 303,128 | ||
Retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,145,019 | 1,993,404 | ||
Retail | Home Equity Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 152,187 | 133,575 | ||
Retail | Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 67,475 | 59,945 | ||
Retail | Residential Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 178,733 | $ 183,290 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans modified as debt restructurings | loan | 3 | 0 | 0 |
Troubled debt restructuring, additional lending amount | $ 0 | $ 0 | |
Number of loans that subsequently default after modification | loan | 0 | 0 | 0 |
Mortgage loans in process of foreclosure | $ 14,000 | $ 202,000 | |
Loans Acquired with Deteriorated Credit Quality | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase in allowance for loans that subsequently default after modification | 11,000 | 107,000 | $ 0 |
Loans Purchased | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses, reversal | $ 110,000 | $ 2,000 | $ 54,000 |
Loans (Schedule of Allowance fo
Loans (Schedule of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 14,808 | $ 14,438 | $ 14,929 |
Provision for Loan Losses | 1,750 | 1,200 | 0 |
Recoveries | 414 | 270 | 473 |
Loans Charged-off | (1,278) | (1,100) | (964) |
Ending Balance | 15,694 | 14,808 | 14,438 |
Commercial and Industrial Loans and Leases | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 3,725 | 4,242 | 4,627 |
Provision for Loan Losses | 1,147 | (483) | (451) |
Recoveries | 14 | 32 | 102 |
Loans Charged-off | (151) | (66) | (36) |
Ending Balance | 4,735 | 3,725 | 4,242 |
Commercial Real Estate Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 5,452 | 6,342 | 7,273 |
Provision for Loan Losses | (689) | (846) | (688) |
Recoveries | 48 | 10 | 107 |
Loans Charged-off | (220) | (54) | (350) |
Ending Balance | 4,591 | 5,452 | 6,342 |
Agricultural Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 4,094 | 2,115 | 1,123 |
Provision for Loan Losses | 840 | 2,000 | 992 |
Recoveries | 9 | 1 | 0 |
Loans Charged-off | (49) | (22) | 0 |
Ending Balance | 4,894 | 4,094 | 2,115 |
Home Equity Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 283 | 383 | 246 |
Provision for Loan Losses | 78 | 33 | 160 |
Recoveries | 8 | 3 | 10 |
Loans Charged-off | (39) | (136) | (33) |
Ending Balance | 330 | 283 | 383 |
Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 235 | 230 | 354 |
Provision for Loan Losses | 517 | 273 | (48) |
Recoveries | 272 | 208 | 236 |
Loans Charged-off | (726) | (476) | (312) |
Ending Balance | 298 | 235 | 230 |
Residential Mortgage Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 329 | 414 | 622 |
Provision for Loan Losses | 44 | 245 | 7 |
Recoveries | 63 | 16 | 18 |
Loans Charged-off | (93) | (346) | (233) |
Ending Balance | 343 | 329 | 414 |
Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 690 | 712 | 684 |
Provision for Loan Losses | (187) | (22) | 28 |
Recoveries | 0 | 0 | 0 |
Loans Charged-off | 0 | 0 | 0 |
Ending Balance | $ 503 | $ 690 | $ 712 |
Loans (Schedule of Allowance 59
Loans (Schedule of Allowance for Loan Losses and Recorded Investment in Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | $ 2,228 | $ 255 | ||||
Collectively Evaluated for Impairment | 13,455 | 14,448 | ||||
Total Ending Allowance Balance | 15,694 | 14,808 | $ 14,438 | $ 14,929 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 11,633 | 1,239 | ||||
Loans Collectively Evaluated for Impairment | 2,133,752 | 1,989,128 | ||||
Loans, net of deferred income | 2,154,502 | [1] | 2,001,415 | [2] | ||
Accrued interest receivable included in total recorded investment in loans and leases | 9,483 | 8,011 | ||||
Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 11 | 105 | ||||
Loans: | ||||||
Loans, net of deferred income | 9,117 | 11,048 | 7,555 | |||
Commercial and Industrial Loans and Leases | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 1,399 | 24 | ||||
Collectively Evaluated for Impairment | 3,333 | 3,698 | ||||
Total Ending Allowance Balance | 4,735 | 3,725 | 4,242 | 4,627 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 5,918 | 113 | ||||
Loans Collectively Evaluated for Impairment | 481,152 | 456,769 | ||||
Loans, net of deferred income | 488,058 | [1] | 458,538 | [2] | ||
Commercial and Industrial Loans and Leases | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 3 | 3 | ||||
Loans: | ||||||
Loans, net of deferred income | 988 | 1,656 | 1,325 | |||
Commercial Real Estate Loans | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 829 | 231 | ||||
Collectively Evaluated for Impairment | 3,759 | 5,172 | ||||
Total Ending Allowance Balance | 4,591 | 5,452 | 6,342 | 7,273 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 5,552 | 832 | ||||
Loans Collectively Evaluated for Impairment | 917,036 | 849,510 | ||||
Loans, net of deferred income | 929,040 | [1] | 858,030 | [2] | ||
Commercial Real Estate Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 3 | 49 | ||||
Loans: | ||||||
Loans, net of deferred income | 6,452 | 7,688 | 5,363 | |||
Agricultural Loans | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 4,894 | 4,046 | ||||
Total Ending Allowance Balance | 4,894 | 4,094 | 2,115 | 1,123 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 163 | 294 | ||||
Loans Collectively Evaluated for Impairment | 336,849 | 305,946 | ||||
Loans, net of deferred income | 337,801 | [1] | 306,946 | [2] | ||
Agricultural Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 0 | 48 | ||||
Loans: | ||||||
Loans, net of deferred income | 789 | 706 | 0 | |||
Home Equity Loans | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 330 | 283 | ||||
Total Ending Allowance Balance | 330 | 283 | 383 | 246 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 152,757 | 134,032 | ||||
Loans, net of deferred income | 152,757 | [1] | 134,032 | [2] | ||
Home Equity Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 0 | 0 | ||||
Loans: | ||||||
Loans, net of deferred income | 0 | 0 | ||||
Consumer Loans | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 298 | 230 | ||||
Total Ending Allowance Balance | 298 | 235 | 230 | 354 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 67,647 | 60,046 | ||||
Loans, net of deferred income | 67,647 | [1] | 60,099 | [2] | ||
Consumer Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 0 | 5 | ||||
Loans: | ||||||
Loans, net of deferred income | 0 | 53 | 0 | |||
Residential Mortgage Loans | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 338 | 329 | ||||
Total Ending Allowance Balance | 343 | 329 | 414 | 622 | ||
Loans: | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | ||||
Loans Collectively Evaluated for Impairment | 178,311 | 182,825 | ||||
Loans, net of deferred income | 179,199 | [1] | 183,770 | [2] | ||
Residential Mortgage Loans | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | 5 | 0 | ||||
Loans: | ||||||
Loans, net of deferred income | 888 | 945 | 867 | |||
Unallocated | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Individually Evaluated for Impairment | 0 | 0 | ||||
Collectively Evaluated for Impairment | 503 | 690 | ||||
Total Ending Allowance Balance | 503 | 690 | $ 712 | $ 684 | ||
Unallocated | Loans Acquired with Deteriorated Credit Quality | ||||||
Ending Allowance Balance Attributable to Loans: | ||||||
Acquired with Deteriorated Credit Quality | $ 0 | $ 0 | ||||
[1] | Total recorded investment in loans includes $9,483 in accrued interest. | |||||
[2] | Total recorded investment in loans includes $8,011 in accrued interest. |
Loans (Schedule of Loans Indivi
Loans (Schedule of Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
With No Related Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | $ 3,936 | $ 1,719 | |
Recorded Investment | 3,410 | 1,107 | ||
Average Recorded Investment | 2,509 | 2,444 | $ 1,738 | |
Interest Income Recognized | 108 | 123 | 134 | |
Cash Basis Recognized | 47 | 89 | 133 | |
With An Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 9,293 | 1,575 | |
Recorded Investment | 9,228 | 1,431 | ||
Allowance for Loan Losses Allocated | 2,234 | 355 | ||
Average Recorded Investment | 5,191 | 1,938 | 4,566 | |
Interest Income Recognized | 21 | 7 | 94 | |
Cash Basis Recognized | 8 | 3 | 92 | |
Recorded Investment | 12,638 | 2,538 | ||
Unpaid Principal Balance | [1] | 13,229 | 3,294 | |
Average Recorded Investment | 7,700 | 4,382 | 6,304 | |
Interest Income Recognized | 129 | 130 | 228 | |
Cash Basis Recognized | 55 | 92 | 225 | |
Loans Acquired with Deteriorated Credit Quality | ||||
With No Related Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 1,255 | 1,018 | |
Recorded Investment | 797 | 531 | ||
Average Recorded Investment | 792 | 489 | 196 | |
Interest Income Recognized | 25 | 21 | 0 | |
Cash Basis Recognized | 25 | 10 | 0 | |
With An Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 252 | 910 | |
Recorded Investment | 208 | 768 | ||
Allowance for Loan Losses Allocated | 6 | 100 | ||
Average Recorded Investment | 238 | 711 | 0 | |
Interest Income Recognized | 19 | 0 | 0 | |
Cash Basis Recognized | 7 | 0 | 0 | |
Commercial and Industrial Loans and Leases | ||||
With No Related Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 1,205 | 85 | |
Recorded Investment | 1,166 | 29 | ||
Average Recorded Investment | 635 | 295 | 447 | |
Interest Income Recognized | 27 | 29 | 29 | |
Cash Basis Recognized | 2 | 15 | 29 | |
With An Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 4,804 | 148 | |
Recorded Investment | 4,763 | 107 | ||
Allowance for Loan Losses Allocated | 1,402 | 27 | ||
Average Recorded Investment | 1,986 | 102 | 1,726 | |
Interest Income Recognized | 4 | 1 | 89 | |
Cash Basis Recognized | 2 | 1 | 89 | |
Commercial Real Estate Loans | ||||
With No Related Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 1,812 | 1,278 | |
Recorded Investment | 1,495 | 784 | ||
Average Recorded Investment | 1,184 | 1,688 | 1,282 | |
Interest Income Recognized | 57 | 92 | 104 | |
Cash Basis Recognized | 29 | 73 | 103 | |
With An Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 4,489 | 839 | |
Recorded Investment | 4,465 | 827 | ||
Allowance for Loan Losses Allocated | 832 | 280 | ||
Average Recorded Investment | 2,842 | 1,587 | 2,840 | |
Interest Income Recognized | 17 | 6 | 5 | |
Cash Basis Recognized | 6 | 2 | 3 | |
Agricultural Loans | ||||
With No Related Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 919 | 356 | |
Recorded Investment | 749 | 294 | ||
Average Recorded Investment | 690 | 461 | 9 | |
Interest Income Recognized | 24 | 2 | 1 | |
Cash Basis Recognized | 16 | 1 | 1 | |
With An Allowance Recorded: | ||||
Unpaid Principal Balance | [1] | 0 | 588 | |
Recorded Investment | 0 | 497 | ||
Allowance for Loan Losses Allocated | 0 | 48 | ||
Average Recorded Investment | 363 | 249 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | |
Cash Basis Recognized | $ 0 | $ 0 | $ 0 | |
[1] | Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts. |
Loans (Schedule of Recorded Inv
Loans (Schedule of Recorded Investment in Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | $ 11,091 | $ 3,793 |
Loans Past Due 90 Days or More & Still Accruing | 742 | 2 |
Commercial and Industrial Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 4,753 | 86 |
Loans Past Due 90 Days or More & Still Accruing | 0 | 2 |
Commercial Real Estate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 4,618 | 1,408 |
Loans Past Due 90 Days or More & Still Accruing | 474 | 0 |
Agricultural Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 748 | 792 |
Loans Past Due 90 Days or More & Still Accruing | 268 | 0 |
Home Equity Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 199 | 73 |
Loans Past Due 90 Days or More & Still Accruing | 0 | 0 |
Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 286 | 85 |
Loans Past Due 90 Days or More & Still Accruing | 0 | 0 |
Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 487 | 1,349 |
Loans Past Due 90 Days or More & Still Accruing | 0 | 0 |
Loans Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual | 866 | 1,264 |
Loans Past Due 90 Days or More & Still Accruing | $ 0 | $ 0 |
Loans (Schedule of Aging of Rec
Loans (Schedule of Aging of Recorded Investment in Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | $ 2,154,502 | [1] | $ 2,001,415 | [2] | |
Total Past Due | 11,975 | [1] | 9,435 | [2] | |
Loans Not Past Due | 2,142,527 | [1] | 1,991,980 | [2] | |
Accrued interest receivable included in total recorded investment in loans and leases | 9,483 | 8,011 | |||
Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 488,058 | [1] | 458,538 | [2] | |
Total Past Due | 2,479 | 101 | |||
Loans Not Past Due | 485,579 | 458,437 | |||
Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 929,040 | [1] | 858,030 | [2] | |
Total Past Due | 3,556 | 1,860 | |||
Loans Not Past Due | 925,484 | 856,170 | |||
Agricultural Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 337,801 | [1] | 306,946 | [2] | |
Total Past Due | 295 | 744 | |||
Loans Not Past Due | 337,506 | 306,202 | |||
Home Equity Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 152,757 | [1] | 134,032 | [2] | |
Total Past Due | 658 | 796 | |||
Loans Not Past Due | 152,099 | 133,236 | |||
Consumer Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 67,647 | [1] | 60,099 | [2] | |
Total Past Due | 629 | 407 | |||
Loans Not Past Due | 67,018 | 59,692 | |||
Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 179,199 | [1] | 183,770 | [2] | |
Total Past Due | 4,358 | 5,527 | |||
Loans Not Past Due | 174,841 | 178,243 | |||
30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 4,927 | [1] | 5,965 | [2] | |
30-59 Days Past Due | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 209 | 20 | |||
30-59 Days Past Due | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,229 | 1,509 | |||
30-59 Days Past Due | Agricultural Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 27 | 84 | |||
30-59 Days Past Due | Home Equity Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 366 | 707 | |||
30-59 Days Past Due | Consumer Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 246 | 175 | |||
30-59 Days Past Due | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 2,850 | 3,470 | |||
60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 4,452 | [1] | 1,489 | [2] | |
60-89 Days Past Due | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,365 | 4 | |||
60-89 Days Past Due | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,650 | 21 | |||
60-89 Days Past Due | Agricultural Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 50 | |||
60-89 Days Past Due | Home Equity Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 93 | 16 | |||
60-89 Days Past Due | Consumer Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 97 | 147 | |||
60-89 Days Past Due | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,247 | 1,251 | |||
90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 2,596 | [1] | 1,981 | [2] | |
90 Days or More Past Due | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 905 | 77 | |||
90 Days or More Past Due | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 677 | 330 | |||
90 Days or More Past Due | Agricultural Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 268 | 610 | |||
90 Days or More Past Due | Home Equity Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 199 | 73 | |||
90 Days or More Past Due | Consumer Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 286 | 85 | |||
90 Days or More Past Due | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 261 | 806 | |||
Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 9,117 | 11,048 | $ 7,555 | ||
Total Past Due | 443 | 757 | |||
Loans Not Past Due | 8,674 | 10,291 | |||
Loans Acquired with Deteriorated Credit Quality | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 988 | 1,656 | 1,325 | ||
Loans Acquired with Deteriorated Credit Quality | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 6,452 | 7,688 | 5,363 | ||
Loans Acquired with Deteriorated Credit Quality | Agricultural Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 789 | 706 | 0 | ||
Loans Acquired with Deteriorated Credit Quality | Home Equity Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 0 | |||
Loans Acquired with Deteriorated Credit Quality | Consumer Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 0 | 53 | 0 | ||
Loans Acquired with Deteriorated Credit Quality | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 888 | 945 | $ 867 | ||
Loans Acquired with Deteriorated Credit Quality | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 342 | 130 | |||
Loans Acquired with Deteriorated Credit Quality | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 74 | 0 | |||
Loans Acquired with Deteriorated Credit Quality | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 27 | 627 | |||
Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total | 262,809 | ||||
Total Past Due | 4,740 | ||||
Loans Not Past Due | 258,069 | ||||
Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 2,752 | ||||
Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 862 | ||||
Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | 90 Days or More Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 1,126 | ||||
[1] | Total recorded investment in loans includes $9,483 in accrued interest. | ||||
[2] | Total recorded investment in loans includes $8,011 in accrued interest. |
Loans (Schedule of Recorded I63
Loans (Schedule of Recorded Investment of Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | |||
Total | $ 282 | $ 28 | |
Commercial and Industrial Loans and Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Total | 258 | 28 | |
Commercial Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Total | 24 | 0 | |
Performing | |||
Financing Receivable, Modifications [Line Items] | |||
Total | 149 | 28 | |
Performing | Commercial and Industrial Loans and Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Total | 125 | 28 | |
Performing | Commercial Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Total | 24 | 0 | |
Non-Accrual | |||
Financing Receivable, Modifications [Line Items] | |||
Total | [1] | 133 | 0 |
Non-Accrual | Commercial and Industrial Loans and Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Total | [1] | 133 | 0 |
Non-Accrual | Commercial Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Total | [1] | $ 0 | $ 0 |
[1] | The non-accrual troubled debt restructurings are included in the Non-Accrual Loan table presented on a previous page. |
Loans (Schedule of Loans by Cla
Loans (Schedule of Loans by Class Modified as Debt Restructuring) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016loan | Dec. 31, 2015loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 3 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 505,000 | ||
Post-Modification Outstanding Recorded Investment | 505,000 | ||
Increase in allowance for loan losses for troubled debt restructurings | 149,000 | ||
Charge-offs due to troubled debt restructurings | $ 0 | ||
Commercial and Industrial Loans and Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 477,000 | ||
Post-Modification Outstanding Recorded Investment | $ 477,000 | ||
Commercial Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 28,000 | ||
Post-Modification Outstanding Recorded Investment | $ 28,000 |
Loans (Schedule of Risk Categor
Loans (Schedule of Risk Category of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | $ 2,154,502 | [1] | $ 2,001,415 | [2] | |
Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 488,058 | [1] | 458,538 | [2] | |
Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 929,040 | [1] | 858,030 | [2] | |
Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 337,801 | [1] | 306,946 | [2] | |
Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 9,117 | 11,048 | $ 7,555 | ||
Loans Acquired with Deteriorated Credit Quality | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 988 | 1,656 | 1,325 | ||
Loans Acquired with Deteriorated Credit Quality | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 6,452 | 7,688 | 5,363 | ||
Loans Acquired with Deteriorated Credit Quality | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 789 | 706 | $ 0 | ||
Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 262,809 | ||||
Pass | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 1,660,271 | 1,539,361 | |||
Pass | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 462,212 | 437,353 | |||
Pass | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 894,027 | 814,033 | |||
Pass | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 304,032 | 287,975 | |||
Pass | Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 2,604 | 1,897 | |||
Pass | Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 175,915 | ||||
Special Mention | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 53,226 | 51,673 | |||
Special Mention | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 7,901 | 10,454 | |||
Special Mention | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 18,037 | 26,549 | |||
Special Mention | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 27,288 | 14,670 | |||
Special Mention | Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 1,647 | 3,121 | |||
Special Mention | Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 11,638 | ||||
Substandard | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 41,402 | 32,480 | |||
Substandard | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 17,945 | 10,731 | |||
Substandard | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 16,976 | 17,448 | |||
Substandard | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 6,481 | 4,301 | |||
Substandard | Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 3,978 | 5,032 | |||
Substandard | Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 8,145 | ||||
Doubtful | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 0 | |||
Doubtful | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 0 | |||
Doubtful | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 0 | |||
Doubtful | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 0 | |||
Doubtful | Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 0 | |||
Doubtful | Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | ||||
Total | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 1,754,899 | 1,623,514 | |||
Total | Commercial and Industrial Loans and Leases | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 488,058 | 458,538 | |||
Total | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 929,040 | 858,030 | |||
Total | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 337,801 | 306,946 | |||
Total | Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | $ 8,229 | 10,050 | |||
Total | Loans Acquired with Deteriorated Credit Quality | River Valley Bancorp | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | $ 195,698 | ||||
[1] | Total recorded investment in loans includes $9,483 in accrued interest. | ||||
[2] | Total recorded investment in loans includes $8,011 in accrued interest. |
Loans (Schedule of Recorded I66
Loans (Schedule of Recorded Investment in Home Equity, Consumer and Residential Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | $ 2,154,502 | [1] | $ 2,001,415 | [2] | |
Home Equity Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 152,757 | [1] | 134,032 | [2] | |
Consumer Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 67,647 | [1] | 60,099 | [2] | |
Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 179,199 | [1] | 183,770 | [2] | |
Performing | Home Equity Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 152,558 | 133,959 | |||
Performing | Consumer Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 67,361 | 60,014 | |||
Performing | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 178,712 | 182,421 | |||
Nonperforming | Home Equity Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 199 | 73 | |||
Nonperforming | Consumer Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 286 | 85 | |||
Nonperforming | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 487 | 1,349 | |||
Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 9,117 | 11,048 | $ 7,555 | ||
Loans Acquired with Deteriorated Credit Quality | Home Equity Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 0 | |||
Loans Acquired with Deteriorated Credit Quality | Consumer Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | 0 | 53 | 0 | ||
Loans Acquired with Deteriorated Credit Quality | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans, net of deferred income | $ 888 | $ 945 | $ 867 | ||
[1] | Total recorded investment in loans includes $9,483 in accrued interest. | ||||
[2] | Total recorded investment in loans includes $8,011 in accrued interest. |
Loans (Schedule of Loans Purcha
Loans (Schedule of Loans Purchased/Sold During the Period) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Purchases | $ 5,547 | $ 5,383 |
Sales | 1,106 | 2,029 |
Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchases | 800 | 0 |
Sales | 0 | 0 |
Commercial Real Estate Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchases | 4,747 | 5,383 |
Sales | $ 1,106 | $ 2,029 |
Loans (Schedule of Contractuall
Loans (Schedule of Contractually Required Payments on Acquired Loans) (Details) - Loans Acquired with Deteriorated Credit Quality - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | $ 0 | $ 14,094 |
Cash Flows Expected to be Collected at Acquisition | 0 | 11,051 |
Fair Value of Acquired Loans at Acquisition | 0 | 8,807 |
Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | 0 | 220 |
Commercial Real Estate Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | 0 | 10,612 |
Agricultural Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | 0 | 896 |
Home Equity Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | 0 | 0 |
Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | 0 | 87 |
Residential Mortgage Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Contractually required payments on loans acquired with evidence of deteriorated credit quality | $ 0 | $ 2,279 |
Loans (Schedule of Carrying Amo
Loans (Schedule of Carrying Amount of Loans with Deterioration of Credit Quality) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | $ 2,154,502 | [1] | $ 2,001,415 | [2] | |
Commercial and Industrial Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 488,058 | [1] | 458,538 | [2] | |
Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 929,040 | [1] | 858,030 | [2] | |
Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 337,801 | [1] | 306,946 | [2] | |
Consumer Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 67,647 | [1] | 60,099 | [2] | |
Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 179,199 | [1] | 183,770 | [2] | |
Loans Acquired with Deteriorated Credit Quality | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 9,117 | 11,048 | $ 7,555 | ||
Carrying Amount, Net of Allowance | 9,106 | 10,943 | 7,555 | ||
Loans Acquired with Deteriorated Credit Quality | Commercial and Industrial Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 988 | 1,656 | 1,325 | ||
Loans Acquired with Deteriorated Credit Quality | Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 6,452 | 7,688 | 5,363 | ||
Loans Acquired with Deteriorated Credit Quality | Agricultural Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 789 | 706 | 0 | ||
Loans Acquired with Deteriorated Credit Quality | Consumer Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | 0 | 53 | 0 | ||
Loans Acquired with Deteriorated Credit Quality | Residential Mortgage Loans | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Total | $ 888 | $ 945 | $ 867 | ||
[1] | Total recorded investment in loans includes $9,483 in accrued interest. | ||||
[2] | Total recorded investment in loans includes $8,011 in accrued interest. |
Loans (Schedule of Accretable Y
Loans (Schedule of Accretable Yield, or Income Expected to be Collected) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at January 1 | $ 2,521 | $ 1,279 | $ 1,685 |
New Loans Purchased | 0 | 1,395 | 0 |
Accretion of Income | (425) | (943) | (483) |
Reclassifications from Non-accretable Difference | 638 | 985 | 104 |
Charge-off of Accretable Yield | 0 | (195) | (27) |
Balance at December 31 | $ 2,734 | $ 2,521 | $ 1,279 |
Loans (Schedule of Loans to Sha
Loans (Schedule of Loans to Shareholders Activity) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Balance January 1, 2017 | $ 14,276 |
Additions | 11,340 |
Changes in Persons Included | 0 |
Deductions, Collected | (9,754) |
Deductions, Charged-off | 0 |
Balance December 31, 2017 | $ 15,862 |
Premises, Furniture, and Equi72
Premises, Furniture, and Equipment (Schedule of Premises, Furniture and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total Premises, Furniture and Equipment | $ 100,519 | $ 92,761 | |
Less: Accumulated Depreciation | (46,273) | (44,531) | |
Total | 54,246 | 48,230 | |
Depreciation expense | 3,933 | 3,774 | $ 3,310 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total Premises, Furniture and Equipment | 11,541 | 10,255 | |
Buildings and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total Premises, Furniture and Equipment | 60,076 | 55,676 | |
Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total Premises, Furniture and Equipment | $ 28,902 | $ 26,830 |
Premises, Furniture, and Equi73
Premises, Furniture, and Equipment (Schedule of Capital Leased Assets) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)branch_building | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Abstract] | ||
Number of branch buildings under a capital lease | branch_building | 3 | |
Lease expiration date | Dec. 31, 2033 | |
Capital Leases | $ 4,219 | $ 4,219 |
Less: Accumulated Depreciation | (1,312) | (1,102) |
Total | $ 2,907 | $ 3,117 |
Premises, Furniture, and Equi74
Premises, Furniture, and Equipment (Schedule of Future Minimum Lease Payments under Capitalized Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 519 |
2,019 | 519 |
2,020 | 519 |
2,021 | 519 |
2,022 | 519 |
Thereafter | 4,511 |
Total minimum lease payments | 7,106 |
Less: Amount representing interest | (3,456) |
Present Value of Net Minimum Lease Payments | $ 3,650 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
2,018 | $ 221,568 | |
2,019 | 55,575 | |
2,020 | 58,106 | |
2,021 | 37,081 | |
2,022 | 15,376 | |
Thereafter | 179 | |
Total | 387,885 | $ 378,181 |
Time deposits of $250 or more and Brokered CDs | 119,802 | 92,624 |
Time deposits originated from outside the geographic area | $ 0 | $ 9,083 |
FHLB Advances and Other Borro76
FHLB Advances and Other Borrowings (Schedule of Repurchase Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities | $ 126,836 | $ 105,820 |
Capital Lease Obligation | 3,650 | 3,765 |
Long-term Borrowings | 141,717 | 120,560 |
Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities | 92,000 | 91,500 |
Federal Funds Purchased | 0 | 3,642 |
Repurchase Agreements | 41,499 | 42,412 |
Short-term Borrowings | 133,499 | 137,554 |
Total Borrowings | 275,216 | 258,114 |
American Community Bancorp | ||
Business Acquisition [Line Items] | ||
Junior Subordinated Debentures assumed from Business Acquisitions | 5,624 | 5,474 |
River Valley Bancorp | ||
Business Acquisition [Line Items] | ||
Junior Subordinated Debentures assumed from Business Acquisitions | $ 5,607 | $ 5,501 |
FHLB Advances and Other Borro77
FHLB Advances and Other Borrowings (Schedule of Additional Collateral) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | ||
Average Daily Balance During the Year | $ 40,476 | $ 33,317 |
Average Interest Rate During the Year | 0.47% | 0.39% |
Maximum Month-end Balance During the Year | $ 47,934 | $ 45,313 |
Weighted Average Interest Rate at Year-end | 0.50% | 0.50% |
FHLB Advances and Other Borro78
FHLB Advances and Other Borrowings (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Percentage over variable rate | 2.875% | |
Line of credit, maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 |
Line of credit, outstanding balance | $ 0 | 0 |
Line of credit, unused capacity, commitment fee percentage | 0.25% | |
Junior subordinated debt for Tier 1 capital purposes | $ 11,060,000 | 10,809,000 |
Deposits from principal officers, directors and their affiliates | $ 49,900,000 | $ 48,200,000 |
Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate on FHLB advances | 1.36% | 0.92% |
Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate on FHLB advances | 7.22% | 7.22% |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Interest rate on FHLB advances | 1.84% | 1.67% |
FHLB Advances and Other Borro79
FHLB Advances and Other Borrowings (Scheduled Principal Payments on Long-Term Borrowings) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Advances from Federal Home Loan Banks [Abstract] | |
2,018 | $ 40,210 |
2,019 | 31,075 |
2,020 | 25,551 |
2,021 | 5,000 |
2,022 | 0 |
Thereafter | 25,000 |
Total | $ 126,836 |
FHLB Advances and Other Borro80
FHLB Advances and Other Borrowings (Schedule of Issuance of Subordinated Debentures) (Details) - USD ($) | Jul. 15, 2005 | May 06, 2005 | Mar. 26, 2003 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||
Percentage over variable rate | 2.875% | ||||
ACB Trust I | |||||
Debt Instrument [Line Items] | |||||
Date of Issuance | May 6, 2005 | ||||
Issuance Amount | $ 5,155,000 | ||||
Carrying Amount at December 31, 2017 | $ 3,553,000 | ||||
Variable Rate | 90 day LIBOR + 2.15% | ||||
Rate as of December 31 | 3.84% | 3.15% | |||
Maturity Date | May 31, 2035 | ||||
ACB Trust I | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Percentage over variable rate | 2.15% | ||||
ACB Trust II | |||||
Debt Instrument [Line Items] | |||||
Date of Issuance | Jul. 15, 2005 | ||||
Issuance Amount | $ 3,093,000 | ||||
Carrying Amount at December 31, 2017 | $ 2,071,000 | ||||
Variable Rate | 90 day LIBOR + 1.85% | ||||
Rate as of December 31 | 3.30% | 2.77% | |||
Maturity Date | Jul. 31, 2035 | ||||
ACB Trust II | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Percentage over variable rate | 1.85% | ||||
RIVR Statutory Trust 1 | |||||
Debt Instrument [Line Items] | |||||
Date of Issuance | Mar. 26, 2003 | ||||
Issuance Amount | $ 7,217,000 | ||||
Carrying Amount at December 31, 2017 | $ 5,607,000 | ||||
Variable Rate | 3-Month LIBOR + 3.15% | ||||
Rate as of December 31 | 4.82% | 4.15% | |||
Maturity Date | Mar. 31, 2033 | ||||
RIVR Statutory Trust 1 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Percentage over variable rate | 3.15% |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Consolidated and Affiliate Bank Actual Capital and Minimum Required Levels) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Bank | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Minimum Capital Required for Capital Adequacy Ratio, Capital Conservation Buffer | 0.00% | |||||
Actual Capital Required for Capital Adequacy Ratio, Capital Conservation Buffer | 1.25% | 0.625% | ||||
Total Capital (to Risk Weighted Assets) | ||||||
Actual Amount of Total Capital (to Risk Weighted Assets) | $ 305,773 | $ 288,793 | ||||
Actual Ratio of Total Capital (to Risk Weighted Assets) | 12.29% | 12.48% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Total Capital | $ 199,093 | $ 185,104 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Total Capital (to Risk Weighted Assets) | [1] | 8.00% | 8.00% | |||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Amount, Total Capital (to Risk Weighted Assets) | $ 248,866 | $ 231,380 | ||||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Ratio, Total Capital (to Risk Weighted Assets) | 10.00% | 10.00% | ||||
Tier 1 (Core) Capital (to Risk Weighted Assets) | ||||||
Actual Amount of Tier 1 Capital (to Risk Weighted Assets) | $ 290,079 | $ 273,985 | ||||
Actual Ratio of Tier 1 Capital (to Risk Weighted Assets) | 11.66% | 11.84% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Tier 1 Capital (to Risk Weighted Assets) | $ 149,320 | $ 138,828 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Tier 1 Capital (to Risk Weighted Assets) | [1] | 6.00% | 6.00% | |||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Amount, Tier 1 Capital (to Risk Weighted Assets) | $ 199,093 | $ 185,104 | ||||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Ratio, Tier 1 Capital (to Risk Weighted Assets) | 8.00% | 8.00% | ||||
Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) | ||||||
Actual Amount of Common Tier 1 Capital (to Risk Weighted Assets) | $ 290,079 | $ 273,985 | ||||
Actual Ratio of Common Tier 1 Capital (to Risk Weighted Assets) | 11.66% | 11.84% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Common Tier 1 Capital (to Risk Weighted Assets) | $ 111,990 | $ 104,121 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Common Tier 1 Capital (to Risk Weighted Assets) | [1] | 4.50% | 4.50% | |||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Amount, Common Tier 1 Capital (to Risk Weighted Assets) | $ 161,763 | $ 150,397 | ||||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Ratio, Common Tier 1 Capital (to Risk Weighted Assets) | 6.50% | 6.50% | ||||
Tier 1 Core Capital (to Average Assets) | ||||||
Actual Amount of Tier 1 Capital (to Average Assets) | $ 290,079 | $ 273,985 | ||||
Actual Ratio of Tier 1 Capital (to Average Assets) | 9.63% | 9.46% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Tier 1 Capital (to Average Assets) | $ 120,509 | $ 115,853 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Tier 1 Capital (to Average Assets) | [1] | 4.00% | 4.00% | |||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Amount, Tier 1 Capital (to Average Assets) | $ 150,637 | $ 144,816 | ||||
Minimum Required To Be Well- Capitalized Under Prompt Corrective Action Regulations: Ratio, Tier 1 Capital (to Average Assets) | 5.00% | 5.00% | ||||
Bank | Scenario, Forecast | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Maximum Capital Required for Capital Adequacy Ratio, Capital Conservation Buffer | 2.50% | |||||
Consolidated | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Minimum Capital Required for Capital Adequacy Ratio, Capital Conservation Buffer | 0.00% | |||||
Actual Capital Required for Capital Adequacy Ratio, Capital Conservation Buffer | 1.25% | 0.625% | ||||
Total Capital (to Risk Weighted Assets) | ||||||
Actual Amount of Total Capital (to Risk Weighted Assets) | $ 339,391 | $ 307,754 | ||||
Actual Ratio of Total Capital (to Risk Weighted Assets) | 13.62% | 13.30% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Total Capital | $ 199,363 | $ 185,117 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Total Capital (to Risk Weighted Assets) | [1] | 8.00% | 8.00% | |||
Tier 1 (Core) Capital (to Risk Weighted Assets) | ||||||
Actual Amount of Tier 1 Capital (to Risk Weighted Assets) | $ 323,697 | $ 292,946 | ||||
Actual Ratio of Tier 1 Capital (to Risk Weighted Assets) | 12.99% | 12.66% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Tier 1 Capital (to Risk Weighted Assets) | $ 149,522 | $ 138,838 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Tier 1 Capital (to Risk Weighted Assets) | [1] | 6.00% | 6.00% | |||
Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets) | ||||||
Actual Amount of Common Tier 1 Capital (to Risk Weighted Assets) | $ 312,637 | $ 282,138 | ||||
Actual Ratio of Common Tier 1 Capital (to Risk Weighted Assets) | 12.55% | 12.19% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Common Tier 1 Capital (to Risk Weighted Assets) | $ 112,142 | $ 104,129 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Common Tier 1 Capital (to Risk Weighted Assets) | [1] | 4.50% | 4.50% | |||
Tier 1 Core Capital (to Average Assets) | ||||||
Actual Amount of Tier 1 Capital (to Average Assets) | $ 323,697 | $ 292,946 | ||||
Actual Ratio of Tier 1 Capital (to Average Assets) | 10.71% | 10.09% | ||||
Minimum Required For Capital Adequacy Purposes: Amount, Tier 1 Capital (to Average Assets) | $ 120,862 | $ 116,165 | ||||
Minimum Required For Capital Adequacy Purposes: Ratio, Tier 1 Capital (to Average Assets) | [1] | 4.00% | 4.00% | |||
Consolidated | Scenario, Forecast | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Maximum Capital Required for Capital Adequacy Ratio, Capital Conservation Buffer | 2.50% | |||||
[1] | Excludes capital conservation buffer. |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)installmentPlanshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Apr. 26, 2001shares | |
Number of equity incentive plans | Plan | 3 | |||
Share-based compensation, number of shares available for future grants (in shares) | shares | 386,754 | |||
Stock option expiration period | 10 years | |||
Stock compensation expense | $ 657,000 | $ 570,000 | $ 580,000 | |
Unrecognized expense related to restricted stock and cash entitlements | 1,983,000 | 1,774,000 | 1,542,000 | |
Stock compensation expense, net of tax | $ 1,157,000 | $ 1,195,000 | $ 928,000 | |
Common stock, authorized shares repurchase (in shares) | shares | 911,631 | |||
Total shares repurchased (in shares) | shares | 502,447 | |||
Common stock, shares repurchased (in shares) | shares | 0 | 0 | 0 | |
Bank | ||||
Retained earnings available for payment of dividends to parent company without prior regulatory approval | $ 64,000,000 | |||
Nonqualified Stock Options | ||||
Stock option expiration period | 20 years | |||
Employee Stock Option | ||||
Number of options granted (in shares) | shares | 0 | 0 | 0 | |
Stock compensation expense | $ 0 | $ 0 | $ 0 | |
Restricted Stock | ||||
Restricted stock as a percent of grant | 60.00% | |||
Cash credit entitlements as a percent of grant | 40.00% | |||
Number of installments | installment | 3 | |||
Restricted stock vesting percentage upon satisfaction of service requirement | 100.00% | |||
Restricted Stock | Year One | ||||
Percentage vested | 33.30% | |||
Restricted Stock | Year Two | ||||
Percentage vested | 33.30% | |||
Restricted Stock | Year Three | ||||
Percentage vested | 33.30% | |||
Employee Stock Purchase Plan | ||||
Share-based compensation, number of shares available for future grants (in shares) | shares | 557,203 | |||
Stock compensation expense | $ 32,000 | 82,000 | 22,000 | |
Unrecognized expense related to restricted stock and cash entitlements | $ 0 | 0 | 0 | |
Share-based compensation arrangement, purchase price discount from fair market value | 95.00% | |||
Share-based compensation arrangement, number of shares authorized (in shares) | shares | 750,000 | |||
Stock compensation expense, net of tax | $ 19,000 | $ 50,000 | $ 13,000 |
Shareholders' Equity (Schedul83
Shareholders' Equity (Schedule of Stock Option Activity under Equity Incentive Plan) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Intrinsic Value of Options Exercised | $ 0 | $ 137,000 | $ 559,000 |
Cash Received from Option Exercises | 0 | 0 | 0 |
Tax Benefit of Option Exercises | $ 0 | $ 54,000 | $ 224,000 |
Weighted Average Fair Value of Options Granted (in USD per share) | $ 0 | $ 0 | $ 0 |
Shareholders' Equity (Schedul84
Shareholders' Equity (Schedule of Restricted Stock And Cash Entitlements Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Restricted Stock Expense | $ 1,246 | $ 1,407 | $ 963 |
Cash Entitlement Expense | 657 | 570 | 580 |
Tax Effect | (746) | (782) | (615) |
Net of Tax | $ 1,157 | $ 1,195 | $ 928 |
Shareholders' Equity (Schedul85
Shareholders' Equity (Schedule of Restricted Stock Grants Outstanding) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Restricted Shares | |
Number of Shares Outstanding at Beginning of Period (in shares) | shares | 53,163 |
Number of Shares Granted (in shares) | shares | 43,386 |
Number of Shares Issued and Vested (in shares) | shares | (49,733) |
Number of Shares Forfeited (in shares) | shares | (510) |
Number of Shares Outstanding at End of Period (in shares) | shares | 46,306 |
Weighted Average Market Price at Grant | |
Weighted Average Market Price at Grant Outstanding at Beginning of Period (in USD per share) | $ / shares | $ 22.32 |
Weighted Average Market Price at Grant Granted (in USD per share) | $ / shares | 31.77 |
Weighted Average Market Price at Grant Issued and Vested (in USD per share) | $ / shares | 24.79 |
Weighted Average Market Price at Grant Forfeited (in USD per share) | $ / shares | 27.22 |
Weighted Average Market Price at Grant Outstanding at End of Period (in USD per share) | $ / shares | $ 28.47 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($)$ / Family | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
401(k) deferred compensation and profit sharing plan, company contributions | $ 1,328 | $ 1,121 | $ 999 | ||
Annual losses per covered family | $ / Family | 150,000 | ||||
Annual deductible per covered family | $ / Family | 255,000 | ||||
Charges to earnings for self-insurance reserve | $ 4,192 | 3,153 | 2,666 | ||
Pension expense | $ 63 | 54 | |||
River Valley Bancorp | The Pentegra DB Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total contributions under Defined Benefit Plan as reported on Form 5500 | $ 153,186 | $ 163,183 | |||
Multiemployer plan, maximum percentage of employer's contributions | 5.00% | ||||
Postretirement Medical and Life Benefit Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated future employer contributions in 2018 | $ 84 | ||||
Certain directors and officers | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accrued benefits payable | 1,896 | 1,882 | |||
Deferred compensation expense | 187 | 297 | 149 | ||
Certain officers | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accrued benefits payable | 84 | 136 | |||
Deferred compensation expense | $ 48 | $ 0 | $ 215 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Changes in Accumulated Postretirement Benefits Obligations) (Details) - Postretirement Medical and Life Benefit Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Obligation at the Beginning of Year | $ 814 | $ 783 | |
Unrecognized Loss (Gain) | 226 | 24 | |
Components of Net Periodic Postretirement Benefit Cost | |||
Service Cost | 50 | 41 | $ 42 |
Interest Cost | 29 | 29 | 26 |
Net Expected Benefit Payments | (58) | (63) | |
Obligation at End of Year | $ 1,061 | $ 814 | $ 783 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Postretirement Benefit Expense) (Details) - Postretirement Medical and Life Benefit Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $ 50 | $ 41 | $ 42 |
Interest Cost | 29 | 29 | 26 |
Amortization of Unrecognized Net (Gain) Loss | 8 | 6 | 5 |
Net Postretirement Benefit Expense | 87 | 76 | 73 |
Net (Gain) Loss During Period Recognized in Other Comprehensive Income (Loss) | 218 | 18 | 17 |
Total Recognized in Net Postretirement Benefit Expense and Other Comprehensive Income | $ 305 | $ 94 | $ 90 |
Employee Benefit Plans (Sched89
Employee Benefit Plans (Schedule of Assumptions used to Determine Net Periodic Cost and Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Postretirement Medical and Life Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 3.35% | 3.72% | 3.82% |
Employee Benefit Plans (Sched90
Employee Benefit Plans (Schedule of Assumption of Health Care Cost Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Health Care Cost Trend Rate Assumed for Next Year | 8.00% | 8.00% |
Rate that the Cost Trend Rate Gradually Declines to | 5.00% | 5.00% |
Year that the Rate Reaches the Rate it is Assumed to Remain at | 2,023 | 2,022 |
Employee Benefit Plans (Sched91
Employee Benefit Plans (Schedule of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Effect on Total of Service and Interest Cost, One-Percentage-Point Increase | $ 7 |
Effect on Postretirement Benefit Obligation, One-Percentage-Point Increase | 66 |
Effect on Total of Service and Interest Cost, One-Percentage-Point Decrease | (6) |
Effect on Postretirement Benefit Obligation, One-Percentage-Point Decrease | $ (59) |
Employee Benefit Plans (Sched92
Employee Benefit Plans (Schedule of Expected Benefit Payments) (Details) - Postretirement Medical and Life Benefit Plan $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 84 |
2,019 | 91 |
2,020 | 86 |
2,021 | 77 |
2,022 | 85 |
2023-2027 | $ 547 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 10,481 | $ 11,468 | $ 11,407 |
Current State | 473 | 447 | 898 |
Deferred Federal | 276 | 1,611 | (920) |
Deferred State | 304 | 420 | 221 |
Total Income Taxes | $ 11,534 | $ 13,946 | $ 11,606 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory Rate applied to the pre-tax income | 35.00% | 35.00% | 35.00% |
Statutory Rate Times Pre-tax Income | $ 18,274 | $ 17,195 | $ 14,585 |
Add (Subtract) the Tax Effect of: | |||
Income from Tax-exempt Loans and Investments | (3,304) | (2,929) | (2,250) |
State Income Tax, Net of Federal Tax Effect | 505 | 564 | 727 |
General Business Tax Credits | (715) | (621) | (750) |
Company Owned Life Insurance | (469) | (346) | (296) |
Revaluation of Deferred Tax Assets/Liabilities due to Tax Reform | (2,284) | ||
Other Differences | (473) | 83 | (410) |
Total Income Taxes | $ 11,534 | $ 13,946 | $ 11,606 |
Income Taxes (Schedule of Net D
Income Taxes (Schedule of Net Deferred Tax Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets: | ||
Allowance for Loan Losses | $ 3,645 | $ 5,269 |
Unrealized Loss on Securities | 665 | 3,456 |
Deferred Compensation and Employee Benefits | 702 | 1,146 |
Other-than-temporary Impairment | 243 | 377 |
Accrued Expenses | 645 | 956 |
Business Combination Fair Value Adjustments | 1,041 | 2,838 |
Pension and Postretirement Plans | 100 | 67 |
Non-Accrual Loan Interest Income | 152 | 158 |
Net Operating Loss Carryforward | 196 | |
Unused Tax Credits | 86 | |
Other | 302 | 472 |
Total Deferred Tax Assets | 7,495 | 15,021 |
Deferred Tax Liabilities: | ||
Depreciation | (1,309) | (1,612) |
Leasing Activities, Net | (7,343) | (9,845) |
FHLB Stock Dividends | (196) | (304) |
Prepaid Expenses | (368) | (461) |
Intangibles | (597) | (1,113) |
Deferred Loan Fees | (483) | (691) |
Mortgage Servicing Rights | (133) | (231) |
General Business Tax Credits | (235) | |
Other | (1,098) | (1,692) |
Total Deferred Tax Liabilities | (11,527) | (16,184) |
Valuation Allowance | 0 | 0 |
Net Deferred Tax Liability | $ (4,032) | $ (1,163) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)business | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Reduction in income tax expense based upon initial revaluation of deferred tax assets and liabilities as result of tax reform | $ 2,284,000 | |||
Number of acquired banking companies | business | 3 | |||
Amount of retained earnings which has no provision for federal income taxes | 5,095,000 | $ 5,095,000 | ||
Unrecorded deferred income tax liability | 1,070,000 | 1,070,000 | ||
Unrecognized tax benefits | 0 | 0 | $ 0 | $ 0 |
Increase in unrecognized tax benefits relative to tax positions taken | 0 | |||
Accrual of unrecognized tax benefit, income tax penalties and interest accrued | $ 0 | $ 0 | $ 0 | $ 0 |
Common Stock Split (Details)
Common Stock Split (Details) | Apr. 21, 2017 |
Equity [Abstract] | |
Stock split conversion ratio | 1.50 |
Per Share Data (Computation of
Per Share Data (Computation of Basic Earnings Per Share and Diluted Earnings Per Share) (Details) $ / shares in Units, $ in Thousands | Apr. 21, 2017 | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | ||||
Basic Earnings per Share:(1) | ||||||||||||||||
Net Income | $ | $ 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | $ 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | $ 40,676 | $ 35,184 | $ 30,064 | |||||
Weighted Average Shares Outstanding (in shares) | [1] | 22,924,726 | 22,389,137 | 19,882,503 | ||||||||||||
Basic Earnings per Share (in USD per share) | $ / shares | $ 0.51 | $ 0.42 | $ 0.43 | $ 0.42 | $ 0.44 | $ 0.45 | $ 0.43 | $ 0.25 | $ 1.77 | [1],[2] | $ 1.57 | [1],[2] | $ 1.51 | [1],[2] | ||
Diluted Earnings per Share: | ||||||||||||||||
Net Income | $ | $ 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | $ 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | $ 40,676 | $ 35,184 | $ 30,064 | |||||
Weighted Average Shares Outstanding (in shares) | [1] | 22,924,726 | 22,389,137 | 19,882,503 | ||||||||||||
Stock Options, Net (in shares) | [1] | 0 | 1,979 | 5,871 | ||||||||||||
Diluted Weighted Average Shares Outstanding (in shares) | [1] | 22,924,726 | 22,391,116 | 19,888,374 | ||||||||||||
Diluted Earnings per Share (in USD per share) | $ / shares | $ 0.51 | $ 0.42 | $ 0.43 | $ 0.42 | $ 0.44 | $ 0.45 | $ 0.43 | $ 0.25 | $ 1.77 | [1],[2] | $ 1.57 | [1],[2] | $ 1.51 | [1],[2] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | |||||||||||||
Stock split conversion ratio | 1.50 | |||||||||||||||
[1] | Share and per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. | |||||||||||||||
[2] | Per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. |
Operating Lease Commitments (De
Operating Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rental expense, operating leases | $ 1,213 | $ 1,215 | $ 753 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 1,050 | ||
2,019 | 956 | ||
2,020 | 843 | ||
2,021 | 752 | ||
2,022 | 638 | ||
Thereafter | 2,980 | ||
Total | $ 7,219 |
Commitments and Off-balance 100
Commitments and Off-balance Sheet Items (Summary of Commitments and Contingencies) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitment to Sell Loans, Mandatory | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | $ 681 | $ 973 |
Variable Rate | 0 | 0 |
Commitment to Sell Loans, Non-Mandatory | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | 24,628 | 30,708 |
Variable Rate | 188 | 677 |
Standby Letters of Credit | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | 959 | 1,059 |
Variable Rate | 4,736 | 7,869 |
Commitments to Fund Loans: | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | 47,519 | 48,439 |
Variable Rate | 569,970 | 512,471 |
Consumer Lines | Commitments to Fund Loans: | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | 10,997 | 10,081 |
Variable Rate | 260,934 | 237,087 |
Residential Mortgages | Commitments to Fund Loans: | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | 17,255 | 13,760 |
Variable Rate | 655 | 765 |
Commercial Operating Lines | Commitments to Fund Loans: | ||
Commitments and Contingent Liabilities [Line Items] | ||
Fixed Rate | 19,267 | 24,598 |
Variable Rate | $ 308,381 | $ 274,619 |
Commitments and Off-balance 101
Commitments and Off-balance Sheet Items (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Commitments and Contingent Liabilities [Line Items] | |
Loans and Leases Receivable Fixed Commitment Interest Rates | 2.00% |
Loans and Leases Receivable Fixed Commitment Maturity | 1 year |
Maximum | |
Commitments and Contingent Liabilities [Line Items] | |
Loans and Leases Receivable Fixed Commitment Interest Rates | 18.00% |
Loans and Leases Receivable Fixed Commitment Maturity | 32 years |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Held-for-Sale, fair value | $ 6,719,000 | $ 15,273,000 | |
Contractual principal balance of loans held-for-sale | 6,576,000 | 14,983,000 | |
Difference in amount of loan held-for-sale | 143,000 | 290,000 | |
Impaired loans, carrying amount | [1] | 9,293,000 | 1,575,000 |
Valuation allowance for loans losses | 2,234,000 | 355,000 | |
Other real estate, carrying value | 0 | 0 | |
Cost of real estate sales charged through operating income | 75,000 | ||
Impaired Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans, carrying amount | 9,020,000 | 663,000 | |
Valuation allowance for loans losses | 2,228,000 | 255,000 | |
Increase (decrease) in provision for loan losses | 1,973,000 | 115,000 | |
Obligations of State and Political Subdivisions | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other changes in fair value | (60,000) | (75,000) | |
Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities | 740,994,000 | 709,786,000 | |
Fair Value, Measurements, Recurring | Obligations of State and Political Subdivisions | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities | 273,309,000 | 247,519,000 | |
Fair Value, Measurements, Recurring | Equity Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities | 353,000 | 353,000 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities | 6,002,000 | 7,377,000 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Obligations of State and Political Subdivisions | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities | 5,649,000 | 7,024,000 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities | $ 353,000 | $ 353,000 | |
[1] | Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts. |
Fair Value (Schedule of Assets
Fair Value (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Securities | $ 740,994 | $ 709,786 |
Loans Held-for-Sale | 6,719 | 15,273 |
Derivative Assets | 1,564 | 1,291 |
Mortgage Servicing Rights | 547 | 611 |
Derivative Liabilities | 1,633 | 1,238 |
Obligations of State and Political Subdivisions | ||
Assets: | ||
Securities | 273,309 | 247,519 |
MBS/CMO – Residential | ||
Assets: | ||
Securities | 467,332 | 461,914 |
Equity Securities | ||
Assets: | ||
Securities | 353 | 353 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Securities | 0 | 0 |
Loans Held-for-Sale | 0 | 0 |
Derivative Assets | 0 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of State and Political Subdivisions | ||
Assets: | ||
Securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | MBS/CMO – Residential | ||
Assets: | ||
Securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | ||
Assets: | ||
Securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Securities | 734,992 | 702,409 |
Loans Held-for-Sale | 6,719 | 15,273 |
Derivative Assets | 1,564 | 1,291 |
Mortgage Servicing Rights | 547 | 611 |
Derivative Liabilities | 1,633 | 1,238 |
Significant Other Observable Inputs (Level 2) | Obligations of State and Political Subdivisions | ||
Assets: | ||
Securities | 267,660 | 240,495 |
Significant Other Observable Inputs (Level 2) | MBS/CMO – Residential | ||
Assets: | ||
Securities | 467,332 | 461,914 |
Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Assets: | ||
Securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Securities | 6,002 | 7,377 |
Loans Held-for-Sale | 0 | 0 |
Derivative Assets | 0 | 0 |
Mortgage Servicing Rights | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of State and Political Subdivisions | ||
Assets: | ||
Securities | 5,649 | 7,024 |
Significant Unobservable Inputs (Level 3) | MBS/CMO – Residential | ||
Assets: | ||
Securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity Securities | ||
Assets: | ||
Securities | $ 353 | $ 353 |
Fair Value (Reconciliation of a
Fair Value (Reconciliation of all Assets Measured at Fair Value on a Recurring Basis, Using Significant Unobservable Inputs (Level 3)) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Obligations of State and Political Subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance of Recurring Level 3 Assets at January 1 | $ 7,024 | $ 8,749 |
Total Gains or Losses Included in Other Comprehensive Income | (60) | (75) |
Maturities / Calls | (1,315) | (1,650) |
Purchases | 0 | 0 |
Balance of Recurring Level 3 Assets at December 31 | 5,649 | 7,024 |
Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance of Recurring Level 3 Assets at January 1 | 353 | 353 |
Total Gains or Losses Included in Other Comprehensive Income | 0 | 0 |
Maturities / Calls | 0 | 0 |
Purchases | 0 | 0 |
Balance of Recurring Level 3 Assets at December 31 | $ 353 | $ 353 |
Fair Value (Assets and Liabilit
Fair Value (Assets and Liabilities Measured at Fair Value on Non-Recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - Impaired Loans - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial and Industrial Loans and Leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 3,354 | $ 60 |
Commercial Real Estate Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,438 | 348 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and Industrial Loans and Leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Real Estate Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial and Industrial Loans and Leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial Real Estate Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial and Industrial Loans and Leases | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,354 | 60 |
Significant Unobservable Inputs (Level 3) | Commercial Real Estate Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 3,438 | $ 348 |
Fair Value (Fair Value Assets a
Fair Value (Fair Value Assets and Liabilities Measured on Nonrecurring Basis Validation Techniques) (Details) - Significant Unobservable Inputs (Level 3) - Impaired Loans - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial and Industrial Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,354 | $ 60 |
Commercial and Industrial Loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (Weighted Average) | 0.00% | 0.00% |
Commercial and Industrial Loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (Weighted Average) | 95.00% | 100.00% |
Commercial and Industrial Loans | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (Weighted Average) | 84.00% | 89.00% |
Commercial Real Estate Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,438 | $ 348 |
Commercial Real Estate Loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (Weighted Average) | 30.00% | 33.00% |
Commercial Real Estate Loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (Weighted Average) | 76.00% | 77.00% |
Commercial Real Estate Loans | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (Weighted Average) | 47.00% | 56.00% |
Fair Value (Carrying Amounts an
Fair Value (Carrying Amounts and Estimated Fair Values of Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Loans, Net | $ 2,125,944 | $ 1,975,147 |
FHLB Stock and Other Restricted Stock | 13,048 | 13,048 |
Financial Liabilities: | ||
Time Deposits | (387,885) | (378,181) |
Short-term Borrowings | (133,499) | (137,554) |
Long-term Debt | (141,717) | (120,560) |
Reported Value Measurement | ||
Financial Assets: | ||
Cash and Short-term Investments | 70,359 | 64,816 |
Loans, Net | 2,119,152 | 1,974,074 |
FHLB Stock and Other Restricted Stock | 13,048 | 13,048 |
Accrued Interest Receivable | 13,258 | 11,413 |
Financial Liabilities: | ||
Demand, Savings, and Money Market Deposits | (2,096,167) | (1,971,370) |
Time Deposits | (387,885) | (378,181) |
Short-term Borrowings | (133,499) | (137,554) |
Long-term Debt | (141,717) | (120,560) |
Accrued Interest Payable | (1,058) | (789) |
Estimate of Fair Value Measurement | ||
Financial Assets: | ||
Cash and Short-term Investments | 70,359 | 64,816 |
Loans, Net | 2,120,154 | 1,980,523 |
Accrued Interest Receivable | 13,258 | 11,413 |
Financial Liabilities: | ||
Demand, Savings, and Money Market Deposits | (2,096,167) | (1,971,370) |
Time Deposits | (388,640) | (378,000) |
Short-term Borrowings | (133,499) | (137,554) |
Long-term Debt | (140,418) | (120,502) |
Accrued Interest Payable | (1,058) | (789) |
Estimate of Fair Value Measurement | Level 1 | ||
Financial Assets: | ||
Cash and Short-term Investments | 58,233 | 48,467 |
Loans, Net | 0 | 0 |
Accrued Interest Receivable | 0 | 0 |
Financial Liabilities: | ||
Demand, Savings, and Money Market Deposits | (2,096,167) | (1,971,370) |
Time Deposits | 0 | 0 |
Short-term Borrowings | 0 | 0 |
Long-term Debt | 0 | 0 |
Accrued Interest Payable | 0 | 0 |
Estimate of Fair Value Measurement | Level 2 | ||
Financial Assets: | ||
Cash and Short-term Investments | 12,126 | 16,349 |
Loans, Net | 0 | 0 |
Accrued Interest Receivable | 3,574 | 3,289 |
Financial Liabilities: | ||
Demand, Savings, and Money Market Deposits | 0 | 0 |
Time Deposits | (388,640) | (378,000) |
Short-term Borrowings | (133,499) | (137,554) |
Long-term Debt | (129,366) | (109,709) |
Accrued Interest Payable | (1,042) | (775) |
Estimate of Fair Value Measurement | Level 3 | ||
Financial Assets: | ||
Cash and Short-term Investments | 0 | 0 |
Loans, Net | 2,120,154 | 1,980,523 |
Accrued Interest Receivable | 9,684 | 8,124 |
Financial Liabilities: | ||
Demand, Savings, and Money Market Deposits | 0 | 0 |
Time Deposits | 0 | 0 |
Short-term Borrowings | 0 | 0 |
Long-term Debt | (11,052) | (10,793) |
Accrued Interest Payable | $ (16) | $ (14) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)office | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segmentoffice | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of primary segments | segment | 3 | ||||||||||
Net Interest Income | $ 25,454 | $ 24,917 | $ 24,813 | $ 24,725 | $ 24,889 | $ 24,560 | $ 24,671 | $ 20,784 | $ 99,909 | $ 94,904 | $ 75,552 |
Net Gains on Sales of Loans | 3,280 | 3,359 | 2,959 | ||||||||
Net Gains on Securities | 596 | 1,979 | 725 | ||||||||
Trust and Investment Product Fees | 5,272 | 4,644 | 3,957 | ||||||||
Insurance Revenues | 7,979 | 7,741 | 7,489 | ||||||||
Noncash Items: | |||||||||||
Provision for Loan Losses | 1,750 | 1,200 | 0 | ||||||||
Depreciation and Amortization | 4,687 | 4,315 | 4,264 | ||||||||
Income Tax Expense (Benefit) | 11,534 | 13,946 | 11,606 | ||||||||
Segment Profit (Loss) | 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | 40,676 | 35,184 | 30,064 |
Segment Assets | 3,144,360 | 2,955,994 | 3,144,360 | 2,955,994 | 2,373,701 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | (765) | (666) | (401) | ||||||||
Net Gains on Sales of Loans | 0 | 0 | 0 | ||||||||
Net Gains on Securities | 3 | 0 | 27 | ||||||||
Trust and Investment Product Fees | (3) | (15) | (3) | ||||||||
Insurance Revenues | 0 | 0 | 0 | ||||||||
Noncash Items: | |||||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Depreciation and Amortization | 256 | 238 | 150 | ||||||||
Income Tax Expense (Benefit) | (1,385) | (1,269) | (869) | ||||||||
Segment Profit (Loss) | 21 | (1,260) | (330) | ||||||||
Segment Assets | $ (9,801) | (12,936) | $ (9,801) | (12,936) | (1,955) | ||||||
Core Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of banking offices | office | 53 | 53 | |||||||||
Core Banking | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | $ 100,659 | 95,562 | 75,939 | ||||||||
Net Gains on Sales of Loans | 3,280 | 3,359 | 2,959 | ||||||||
Net Gains on Securities | 593 | 1,979 | 698 | ||||||||
Trust and Investment Product Fees | 3 | (3) | 3 | ||||||||
Insurance Revenues | 28 | 23 | 24 | ||||||||
Noncash Items: | |||||||||||
Provision for Loan Losses | 1,750 | 1,200 | 0 | ||||||||
Depreciation and Amortization | 4,351 | 4,002 | 3,994 | ||||||||
Income Tax Expense (Benefit) | 12,262 | 14,306 | 11,836 | ||||||||
Segment Profit (Loss) | 39,520 | 35,070 | 29,461 | ||||||||
Segment Assets | $ 3,142,096 | 2,958,585 | 3,142,096 | 2,958,585 | 2,367,296 | ||||||
Trust and Investment Advisory Services | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | 6 | 1 | 8 | ||||||||
Net Gains on Sales of Loans | 0 | 0 | 0 | ||||||||
Net Gains on Securities | 0 | 0 | 0 | ||||||||
Trust and Investment Product Fees | 5,272 | 4,662 | 3,957 | ||||||||
Insurance Revenues | 34 | 29 | 33 | ||||||||
Noncash Items: | |||||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Depreciation and Amortization | 4 | 3 | 13 | ||||||||
Income Tax Expense (Benefit) | 145 | 168 | (24) | ||||||||
Segment Profit (Loss) | 217 | 227 | (70) | ||||||||
Segment Assets | 1,987 | 1,851 | 1,987 | 1,851 | 1,338 | ||||||
Insurance | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Interest Income | 9 | 7 | 6 | ||||||||
Net Gains on Sales of Loans | 0 | 0 | 0 | ||||||||
Net Gains on Securities | 0 | 0 | 0 | ||||||||
Trust and Investment Product Fees | 0 | 0 | 0 | ||||||||
Insurance Revenues | 7,917 | 7,689 | 7,432 | ||||||||
Noncash Items: | |||||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Depreciation and Amortization | 76 | 72 | 107 | ||||||||
Income Tax Expense (Benefit) | 512 | 741 | 663 | ||||||||
Segment Profit (Loss) | 918 | 1,147 | 1,003 | ||||||||
Segment Assets | $ 10,078 | $ 8,494 | $ 10,078 | $ 8,494 | $ 7,022 |
Parent Company Financial Sta109
Parent Company Financial Statements (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Securities Available-for-Sale, at Fair Value | $ 740,994 | $ 709,786 | ||
Other Assets | 30,451 | 25,917 | ||
TOTAL ASSETS | 3,144,360 | 2,955,994 | $ 2,373,701 | |
LIABILITIES | ||||
Borrowings | 275,216 | 258,114 | ||
TOTAL LIABILITIES | 2,779,789 | 2,625,727 | ||
SHAREHOLDERS’ EQUITY | ||||
Common Stock | 22,934 | 15,261 | ||
Additional Paid-in Capital | 165,288 | 171,744 | ||
Retained Earnings | 178,969 | 149,666 | ||
Accumulated Other Comprehensive Income (Loss) | (2,620) | (6,404) | ||
TOTAL SHAREHOLDERS’ EQUITY | 364,571 | 330,267 | $ 252,348 | $ 228,824 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,144,360 | 2,955,994 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 24,777 | 10,217 | ||
Securities Available-for-Sale, at Fair Value | 353 | 353 | ||
Investment in Subsidiary Bank | 342,054 | 322,138 | ||
Investment in Non-banking Subsidiaries | 5,050 | 4,673 | ||
Other Assets | 8,906 | 9,577 | ||
TOTAL ASSETS | 381,140 | 346,958 | ||
LIABILITIES | ||||
Borrowings | 11,231 | 10,975 | ||
Other Liabilities | 5,338 | 5,716 | ||
TOTAL LIABILITIES | 16,569 | 16,691 | ||
SHAREHOLDERS’ EQUITY | ||||
Common Stock | 22,934 | 15,261 | ||
Additional Paid-in Capital | 165,288 | 171,744 | ||
Retained Earnings | 178,969 | 149,666 | ||
Accumulated Other Comprehensive Income (Loss) | (2,620) | (6,404) | ||
TOTAL SHAREHOLDERS’ EQUITY | 364,571 | 330,267 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 381,140 | $ 346,958 |
Parent Company Financial Sta110
Parent Company Financial Statements (Condensed Statements of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EXPENSES | |||||||||||
Salaries and Employee Benefits | $ 46,642 | $ 43,961 | $ 35,042 | ||||||||
Professional Fees | 2,817 | 3,672 | 2,661 | ||||||||
Interest Expense | 11,121 | 8,461 | 6,068 | ||||||||
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES | 52,210 | 49,130 | 41,670 | ||||||||
Income Tax Benefit | (11,534) | (13,946) | (11,606) | ||||||||
NET INCOME | $ 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | $ 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | 40,676 | 35,184 | 30,064 |
Other Comprehensive Income: | |||||||||||
COMPREHENSIVE INCOME | 44,929 | 24,968 | 30,986 | ||||||||
Parent Company | |||||||||||
INCOME | |||||||||||
Interest Income | 34 | 20 | 30 | ||||||||
Other Income (Loss) | 25 | (27) | 21 | ||||||||
Total Income | 26,034 | 15,993 | 17,455 | ||||||||
EXPENSES | |||||||||||
Salaries and Employee Benefits | 533 | 1,006 | 500 | ||||||||
Professional Fees | 602 | 1,096 | 739 | ||||||||
Occupancy and Equipment Expense | 7 | 13 | 8 | ||||||||
Interest Expense | 877 | 742 | 491 | ||||||||
Other Expenses | 794 | 750 | 657 | ||||||||
Total Expenses | 2,813 | 3,607 | 2,395 | ||||||||
INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES | 23,221 | 12,386 | 15,060 | ||||||||
Income Tax Benefit | 1,415 | 1,284 | 893 | ||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES | 24,636 | 13,670 | 15,953 | ||||||||
Equity in Undistributed Income of Subsidiaries | 16,040 | 21,514 | 14,111 | ||||||||
NET INCOME | 40,676 | 35,184 | 30,064 | ||||||||
Other Comprehensive Income: | |||||||||||
Changes in Unrealized Gain (Loss) on Securities, Available-for-Sale | 4,391 | (10,202) | 932 | ||||||||
Changes in Unrecognized (Loss) in Postretirement Benefit Obligation, Net | (138) | (14) | (10) | ||||||||
COMPREHENSIVE INCOME | 44,929 | 24,968 | 30,986 | ||||||||
Parent Company | Bank | |||||||||||
INCOME | |||||||||||
Dividends from Subsidiaries | 25,000 | 15,000 | 15,900 | ||||||||
Parent Company | Non-bank | |||||||||||
INCOME | |||||||||||
Dividends from Subsidiaries | $ 975 | $ 1,000 | $ 1,504 |
Parent Company Financial Sta111
Parent Company Financial Statements (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net Income | $ 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | $ 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | $ 40,676 | $ 35,184 | $ 30,064 |
Adjustments to Reconcile Net Income to Net Cash from Operations | |||||||||||
Interest Receivable and Other Assets | (4,528) | 5,813 | 172 | ||||||||
Change in Other Liabilities | (110) | (2,547) | (1,328) | ||||||||
Equity Based Compensation | 1,246 | 1,407 | 963 | ||||||||
Excess Tax Benefit from Restricted Share Grant | 240 | 200 | 89 | ||||||||
Net Cash from Operating Activities | 54,875 | 41,913 | 31,267 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Cash Used for Business Acquisitions | 0 | (1,016) | 0 | ||||||||
Net Cash from Investing Activities | (189,280) | (71,689) | (126,929) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Repayment of Long-term Debt | (53,864) | (24,910) | (44,135) | ||||||||
Issuance (Retirement) of Common Stock | (29) | 55 | 49 | ||||||||
Employee Stock Purchase Plan | 447 | ||||||||||
Dividends Paid | (11,842) | (10,630) | (9,010) | ||||||||
Net Cash from Financing Activities | 139,948 | 42,583 | 105,225 | ||||||||
Net Change in Cash and Cash Equivalents | 5,543 | 12,807 | 9,563 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 64,816 | 52,009 | 64,816 | 52,009 | 42,446 | ||||||
Cash and Cash Equivalents at End of Year | 70,359 | 64,816 | 70,359 | 64,816 | 52,009 | ||||||
Parent Company | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net Income | 40,676 | 35,184 | 30,064 | ||||||||
Adjustments to Reconcile Net Income to Net Cash from Operations | |||||||||||
Interest Receivable and Other Assets | 431 | 2,085 | (5,331) | ||||||||
Change in Other Liabilities | (122) | 310 | 1,226 | ||||||||
Equity Based Compensation | 1,246 | 1,407 | 963 | ||||||||
Excess Tax Benefit from Restricted Share Grant | 240 | 200 | 89 | ||||||||
Equity in Excess Undistributed Income of Subsidiaries | (16,040) | (21,514) | (14,111) | ||||||||
Net Cash from Operating Activities | 26,431 | 17,672 | 12,900 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Cash Used for Business Acquisitions | 0 | (15,992) | 0 | ||||||||
Net Cash from Investing Activities | 0 | (15,992) | 0 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Repayment of Long-term Debt | 0 | 0 | (4,000) | ||||||||
Issuance (Retirement) of Common Stock | (29) | 55 | 49 | ||||||||
Employee Stock Purchase Plan | 447 | ||||||||||
Dividends Paid | (11,842) | (10,630) | (9,010) | ||||||||
Net Cash from Financing Activities | (11,871) | (10,575) | (12,514) | ||||||||
Net Change in Cash and Cash Equivalents | 14,560 | (8,895) | 386 | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 10,217 | $ 19,112 | 10,217 | 19,112 | 18,726 | ||||||
Cash and Cash Equivalents at End of Year | $ 24,777 | $ 10,217 | $ 24,777 | $ 10,217 | $ 19,112 |
Business Combinations, Goodw112
Business Combinations, Goodwill and Intangible Assets (Narrative) (Details) $ / shares in Units, $ in Thousands | Mar. 01, 2016USD ($)officeshares | Feb. 29, 2016USD ($)$ / shares | Jan. 31, 2017USD ($) | Sep. 30, 2016 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||
Assets | $ 3,144,360 | $ 2,955,994 | $ 2,373,701 | |||||
Equity | 364,571 | 330,267 | 252,348 | $ 228,824 | ||||
Goodwill | 54,058 | 54,058 | 20,536 | $ 20,536 | ||||
Amortization of expense intangible assets | 942 | 1,062 | 790 | |||||
Core Banking | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 52,726 | 52,726 | 19,204 | |||||
Insurance | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 1,332 | $ 1,332 | $ 1,332 | |||||
River Valley Bancorp | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets | $ 516,300 | |||||||
Equity | $ 56,600 | |||||||
Direct acquisition costs | $ 4,300 | |||||||
Goodwill | 33,522 | |||||||
Intangible assets | $ 2,613 | |||||||
Shares of common stock issued for acquisition (in shares) | shares | 1,942,000 | |||||||
Number of the Company's common stock for each share of RIVR converted (in shares) | shares | 0.770 | |||||||
Cash portion, cash per share for RIVR common stock converted (USD per share) | $ / shares | $ 9.90 | |||||||
Cash consideration | $ 24,975 | $ 24,975 | ||||||
Cash for options and fractional shares | 395 | $ 395 | ||||||
Fair value of non-impaired loans and customers receivables acquired | 309,000 | |||||||
Unpaid principal balance non-impaired loans and customers receivables acquired | $ 316,400 | |||||||
River Valley Bancorp | Core Deposit Intangible | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible assets, weighted average useful live | 8 years | |||||||
River Valley Bancorp | INDIANA | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of banking offices | office | 14 | |||||||
River Valley Bancorp | KENTUCKY | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of banking offices | office | 1 | |||||||
Insurance Agency, Madison, Indiana | INDIANA | German American Insurance, Inc. | Affiliated Entity | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived intangible assets, weighted average useful live | 7 years | |||||||
Cash consideration | $ 209 | |||||||
Insurance Agency, Madison, Indiana | INDIANA | German American Insurance, Inc. | Customer Relationships | Affiliated Entity | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 209 |
Business Combinations, Goodw113
Business Combinations, Goodwill and Intangible Assets (Fair Value of Assets and Liabilities Acquired) (Details) - USD ($) $ in Thousands | Mar. 01, 2016 | Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: | ||||||
Goodwill | $ 54,058 | $ 54,058 | $ 20,536 | $ 20,536 | ||
River Valley Bancorp | ||||||
Consideration | ||||||
Cash for Options and Fractional Shares | $ 395 | $ 395 | ||||
Cash Consideration | 24,975 | $ 24,975 | ||||
Equity Instruments | 62,022 | |||||
Fair Value of Total Consideration Transferred | 87,392 | |||||
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: | ||||||
Cash | 17,877 | |||||
Federal Funds Sold and Other Short-term Investments | 6,477 | |||||
Interest-bearing Time Deposits with Banks | 992 | |||||
Securities | 132,396 | |||||
Loans | 317,760 | |||||
Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost | 3,127 | |||||
Premises, Furniture & Equipment | 9,650 | |||||
Other Real Estate | 882 | |||||
Intangible Assets | 2,613 | |||||
Company Owned Life Insurance | 12,842 | |||||
Accrued Interest Receivable and Other Assets | 9,139 | |||||
Deposits - Non-interest Bearing | (9,584) | |||||
Deposits - Interest Bearing | (395,862) | |||||
FHLB Advances and Other Borrowings | (49,910) | |||||
Accrued Interest Payable and Other Liabilities | (4,529) | |||||
Total Identifiable Net Assets | 53,870 | |||||
Goodwill | $ 33,522 |
Business Combinations, Goodw114
Business Combinations, Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Beginning of Year | $ 54,058 | $ 20,536 | $ 20,536 |
Acquired Goodwill | 0 | 33,522 | 0 |
Impairment | 0 | 0 | 0 |
End of Year | $ 54,058 | $ 54,058 | $ 20,536 |
Business Combinations, Goodw115
Business Combinations, Goodwill and Intangible Assets (Schedule of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Gross Amount | $ 17,282 | $ 17,073 |
Accumulated Amortization | (15,180) | (14,238) |
Core Banking | Core Deposit Intangible | ||
Business Acquisition [Line Items] | ||
Gross Amount | 11,617 | 11,617 |
Accumulated Amortization | (9,694) | (8,782) |
Core Banking | Branch Acquisition Intangible | ||
Business Acquisition [Line Items] | ||
Gross Amount | 257 | 257 |
Accumulated Amortization | (257) | (257) |
Insurance | Customer List | ||
Business Acquisition [Line Items] | ||
Gross Amount | 5,408 | 5,199 |
Accumulated Amortization | $ (5,229) | $ (5,199) |
Business Combinations, Goodw116
Business Combinations, Goodwill and Intangible Assets (Estimated Amortization Expense) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Estimated amortization expense for each of the next five years is as follows: | |
2,018 | $ 753 |
2,019 | 564 |
2,020 | 383 |
2,021 | 229 |
2,022 | $ 114 |
Other Comprehensive Income (117
Other Comprehensive Income (Loss) (Schedule of Other Comprehensive Income Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 330,267 | $ 252,348 | $ 228,824 |
Other Comprehensive Income (Loss) Before Reclassification | 4,635 | (8,934) | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (382) | (1,282) | |
Comprehensive Income (Loss) | 4,253 | (10,216) | |
ASU 2018-02 Adoption | (469) | ||
Ending Balance | 364,571 | 330,267 | 252,348 |
Unrealized Gains and Losses on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (6,312) | 3,890 | |
Other Comprehensive Income (Loss) Before Reclassification | 4,778 | (8,916) | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (387) | (1,286) | |
Comprehensive Income (Loss) | 4,391 | (10,202) | |
ASU 2018-02 Adoption | (414) | ||
Ending Balance | (2,335) | (6,312) | 3,890 |
Postretirement Benefit Items | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (92) | (78) | |
Other Comprehensive Income (Loss) Before Reclassification | (143) | (18) | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 5 | 4 | |
Comprehensive Income (Loss) | (138) | (14) | |
ASU 2018-02 Adoption | (55) | ||
Ending Balance | (285) | (92) | (78) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (6,404) | 3,812 | 2,890 |
Ending Balance | $ (2,620) | $ (6,404) | $ 3,812 |
Other Comprehensive Income (118
Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income Tax Expense | $ (11,534) | $ (13,946) | $ (11,606) | ||||||||
Net Income | $ 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | $ 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | 40,676 | 35,184 | 30,064 |
Salaries and Employee Benefits | (46,642) | (43,961) | (35,042) | ||||||||
Total Reclassifications for the Period | 382 | 1,282 | |||||||||
Unrealized Gains and Losses on Available-for-Sale Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total Reclassifications for the Period | 387 | 1,286 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total Reclassifications for the Period | 382 | 1,282 | 468 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-for-Sale Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net Gain (Loss) on Securities | 596 | 1,979 | 725 | ||||||||
Income Tax Expense | (209) | (693) | (254) | ||||||||
Net Income | 387 | 1,286 | 471 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Post Retirement Plan Items Actuarial Gains (Losses) | Postretirement Medical and Life Benefit Plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income Tax Expense | 3 | 2 | 2 | ||||||||
Net Income | (5) | (4) | (3) | ||||||||
Salaries and Employee Benefits | $ (8) | $ (6) | $ (5) |
Quarterly Financial Data (Un119
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Interest Income | $ 28,610 | $ 27,986 | $ 27,401 | $ 27,033 | $ 27,101 | $ 26,734 | $ 26,850 | $ 22,680 | $ 111,030 | $ 103,365 | $ 81,620 | |||
Net Interest Income | 25,454 | 24,917 | 24,813 | 24,725 | 24,889 | 24,560 | 24,671 | 20,784 | 99,909 | 94,904 | 75,552 | |||
Net Income | $ 11,621 | $ 9,660 | $ 9,839 | $ 9,556 | $ 10,065 | $ 10,185 | $ 9,788 | $ 5,146 | $ 40,676 | $ 35,184 | $ 30,064 | |||
Basic Earnings per Share (in USD per share) | $ 0.51 | $ 0.42 | $ 0.43 | $ 0.42 | $ 0.44 | $ 0.45 | $ 0.43 | $ 0.25 | $ 1.77 | [1],[2] | $ 1.57 | [1],[2] | $ 1.51 | [1],[2] |
Diluted Earnings per Share (in USD per share) | $ 0.51 | $ 0.42 | $ 0.43 | $ 0.42 | $ 0.44 | $ 0.45 | $ 0.43 | $ 0.25 | $ 1.77 | [1],[2] | $ 1.57 | [1],[2] | $ 1.51 | [1],[2] |
[1] | Per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. | |||||||||||||
[2] | Share and per share data has been adjusted to reflect a 3-for-2 stock split on April 21, 2017. |
Subsequent Events (Details)
Subsequent Events (Details) - Scenario, Forecast - Subsequent Event - MainSource Bank $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)office | |
Subsequent Event [Line Items] | |
Purchase price, percentage of certain checking and other demand withdrawal accounts | 8.00% |
Purchase price, percentage of balances of governmental accounts with public funds, excluding time deposits | 4.50% |
Purchase price, percentage of balances of money market and saving deposits, excluding governmental accounts with public funds | 4.50% |
Period adjustment for consideration transferred following closing date | 6 months |
Core Deposit Intangible | |
Subsequent Event [Line Items] | |
Expected premium to be paid for deposits under the purchase agreement | $ | $ 8 |
INDIANA | |
Subsequent Event [Line Items] | |
Number of banking offices | office | 5 |
Columbus, Indiana | |
Subsequent Event [Line Items] | |
Number of banking offices | office | 4 |
Deposits acquired | $ | $ 160 |
Loans acquired | $ | $ 134 |
Greensburg, Indiana | |
Subsequent Event [Line Items] | |
Number of banking offices | office | 1 |