Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 0-11487 | ||
Entity Registrant Name | LAKELAND FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-1559596 | ||
Entity Address, Address Line One | 202 East Center Street | ||
Entity Address, Address Line Two | P.O. Box 1387 | ||
Entity Address, City or Town | Warsaw | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 46581 | ||
City Area Code | 574 | ||
Local Phone Number | 267-6144 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | LKFN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,128,651,235 | ||
Entity Common Stock, Shares Outstanding | 25,701,115 | ||
Entity Central Index Key | 0000721994 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 68,605 | $ 192,290 |
Short-term investments | 30,776 | 24,632 |
Total cash and cash equivalents | 99,381 | 216,922 |
Securities available-for-sale (carried at fair value) | 608,233 | 585,549 |
Real estate mortgage loans held-for-sale | 4,527 | 2,293 |
Loans, net of allowance for loan losses of $50,652 and $48,453 | 4,015,176 | 3,866,292 |
Land, premises and equipment, net | 60,154 | 58,097 |
Bank owned life insurance | 83,848 | 77,106 |
Federal Reserve and Federal Home Loan Bank Stock | 13,772 | 13,772 |
Accrued interest receivable | 15,391 | 15,518 |
Goodwill | 4,970 | 4,970 |
Other assets | 41,293 | 34,735 |
Total assets | 4,946,745 | 4,875,254 |
LIABILITIES | ||
Noninterest bearing deposits | 983,307 | 946,838 |
Interest bearing deposits | 3,150,512 | 3,097,227 |
Total deposits | 4,133,819 | 4,044,065 |
Securities sold under agreements to repurchase | 0 | 75,555 |
Federal Home Loan Bank advances | 170,000 | 170,000 |
Subordinated debentures | 0 | 30,928 |
Total borrowings | 170,000 | 276,483 |
Accrued interest payable | 11,604 | 10,404 |
Other liabilities | 33,222 | 22,598 |
Total liabilities | 4,348,645 | 4,353,550 |
Commitments, off-balance sheet risks and contingencies (Notes 1 and 18) | ||
STOCKHOLDERS' EQUITY | ||
Common stock: 90,000,000 shares authorized, no par value 25,623,016 shares issued and 25,444,275 outstanding as of December 31, 2019 25,301,732 shares issued and 25,128,773 outstanding as of December 31, 2018 | 114,858 | 112,383 |
Retained earnings | 475,247 | 419,179 |
Accumulated other comprehensive income (loss) | 12,059 | (6,191) |
Treasury stock, at cost (178,741 shares and 172,959 shares as of December 31, 2019 and 2018, respectively) | (4,153) | (3,756) |
Total stockholders' equity | 598,011 | 521,615 |
Noncontrolling interest | 89 | 89 |
Total equity | 598,100 | 521,704 |
Total liabilities and equity | $ 4,946,745 | $ 4,875,254 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Valuation allowance | $ 50,652 | $ 48,453 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares issued (in shares) | 25,623,016 | 25,301,732 |
Common stock, shares outstanding (in shares) | 25,444,275 | 25,128,773 |
Treasury stock, at cost | 178,741 | 172,959 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and fees on loans | |||
Taxable | $ 196,733 | $ 181,451 | $ 150,295 |
Tax exempt | 951 | 814 | 729 |
Interest and dividends on securities | |||
Taxable | 8,909 | 9,717 | 9,218 |
Tax exempt | 7,127 | 6,079 | 5,102 |
Interest on short-term investments | 1,490 | 909 | 354 |
Total interest income | 215,210 | 198,970 | 165,698 |
Interest on deposits | 57,148 | 44,913 | 27,026 |
Interest on borrowings | |||
Short-term | 1,311 | 1,143 | 1,446 |
Long-term | 1,704 | 1,643 | 1,334 |
Total interest expense | 60,163 | 47,699 | 29,806 |
NET INTEREST INCOME | 155,047 | 151,271 | 135,892 |
Provision for loan losses | 3,235 | 6,400 | 3,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 151,812 | 144,871 | 132,892 |
NONINTEREST INCOME | |||
Wealth advisory fees | 6,835 | 6,344 | 5,481 |
Investment brokerage fees | 1,687 | 1,458 | 1,273 |
Service charges on deposit accounts | 15,717 | 15,831 | 13,696 |
Loan and service fees | 9,911 | 9,291 | 7,900 |
Merchant and interchange fee income | 2,641 | 2,461 | 2,279 |
Bank owned life insurance income | 1,890 | 1,244 | 1,768 |
Mortgage banking income | 1,626 | 1,150 | 982 |
Net securities gains (losses) | 142 | (50) | 32 |
Other income | 4,548 | 2,573 | 2,629 |
Total noninterest income | 44,997 | 40,302 | 36,040 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 49,434 | 48,353 | 45,306 |
Net occupancy expense | 5,295 | 5,149 | 4,595 |
Equipment costs | 5,521 | 5,243 | 4,629 |
Data processing fees and supplies | 10,407 | 9,685 | 8,233 |
Corporate and business development | 4,371 | 5,066 | 4,744 |
FDIC insurance and other regulatory fees | 638 | 1,701 | 1,798 |
Professional fees | 4,644 | 3,798 | 3,574 |
Other expense | 9,114 | 7,234 | 6,419 |
Total noninterest expense | 89,424 | 86,229 | 79,298 |
INCOME BEFORE INCOME TAX EXPENSE | 107,385 | 98,944 | 89,634 |
Income tax expense | 20,338 | 18,533 | 32,304 |
NET INCOME | $ 87,047 | $ 80,411 | $ 57,330 |
BASIC WEIGHTED AVERAGE COMMON SHARES | 25,588,404 | 25,288,533 | 25,181,208 |
BASIC EARNINGS PER COMMON SHARE | $ 3.40 | $ 3.18 | $ 2.28 |
DILUTED WEIGHTED AVERAGE COMMON SHARES | 25,758,893 | 25,727,831 | 25,663,381 |
DILUTED EARNINGS PER COMMON SHARE | $ 3.38 | $ 3.13 | $ 2.23 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 87,047 | $ 80,411 | $ 57,330 |
Change in securities available-for-sale: | |||
Unrealized holding gain (loss) on securities available-for-sale arising during the period | 23,438 | (7,339) | 2,245 |
Reclassification adjustment for (gains) losses included in net income | (142) | 50 | (32) |
Net securities gain (loss) activity during the period | 23,296 | (7,289) | 2,213 |
Tax effect | (4,893) | 1,637 | (707) |
Net of tax amount | 18,403 | (5,652) | 1,506 |
Defined benefit pension plans: | |||
Net gain (loss) on defined benefit pension plans | (409) | 269 | 97 |
Amortization of net actuarial loss | 205 | 266 | 265 |
Net gain (loss) on activity during the period | (204) | 535 | 362 |
Tax effect | 51 | (163) | (151) |
Net of tax amount | (153) | 372 | 211 |
Total other comprehensive income (loss), net of tax | 18,250 | (5,280) | 1,717 |
Comprehensive income | $ 105,297 | $ 75,131 | $ 59,047 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders' Equity | Noncontrolling Interest | Total |
Balance at Dec. 31, 2016 | $ 104,405 | $ 327,873 | $ (2,387) | $ (2,913) | $ 426,978 | $ 89 | $ 427,067 |
Balance (in shares) at Dec. 31, 2016 | 24,937,865 | ||||||
Net income | 57,330 | 57,330 | 57,330 | ||||
Other comprehensive income (loss), net of tax | 1,717 | 1,717 | 1,717 | ||||
Cash dividends declared | (21,409) | (21,409) | (21,409) | ||||
Treasury shares purchased under deferred directors' plan | $ 495 | (495) | 0 | 0 | |||
Treasury shares purchased under deferred directors' plan (in shares) | (10,748) | ||||||
Stock activity under equity incentive plans | $ (1,736) | (1,736) | (1,736) | ||||
Stock activity under equity incentive plans (in shares) | 98,816 | ||||||
Stock based compensation expense | $ 5,698 | 5,698 | 5,698 | ||||
Balance at Dec. 31, 2017 | $ 108,862 | 363,794 | (670) | (3,408) | 468,578 | 89 | 468,667 |
Balance (in shares) at Dec. 31, 2017 | 25,025,933 | ||||||
Adoption of ASU | Accounting Standards Update 2018-02 | 173 | (173) | 0 | 0 | |||
Adoption of ASU | Accounting Standards Update 2014-09 | 24 | 24 | 24 | ||||
Adoption of ASU | Accounting Standards Update 2016-01 | 68 | (68) | 0 | 0 | |||
Net income | 80,411 | 80,411 | 80,411 | ||||
Other comprehensive income (loss), net of tax | (5,280) | (5,280) | (5,280) | ||||
Cash dividends declared | (25,291) | (25,291) | (25,291) | ||||
Treasury shares purchased under deferred directors' plan | $ 463 | (463) | 0 | 0 | |||
Treasury shares purchased under deferred directors' plan (in shares) | (9,625) | ||||||
Treasury shares sold and distributed under deferred directors' plan | $ (115) | 115 | 0 | 0 | |||
Treasury shares sold and distributed under deferred directors' plan (in shares) | 5,636 | ||||||
Stock activity under equity incentive plans | $ (2,435) | (2,435) | (2,435) | ||||
Stock activity under equity incentive plans (in shares) | 106,829 | ||||||
Stock based compensation expense | $ 5,608 | 5,608 | 5,608 | ||||
Balance at Dec. 31, 2018 | $ 112,383 | 419,179 | (6,191) | (3,756) | 521,615 | 89 | 521,704 |
Balance (in shares) at Dec. 31, 2018 | 25,128,773 | ||||||
Adoption of ASU | Accounting Standards Update 2017-08 | (1,327) | (1,327) | (1,327) | ||||
Net income | 87,047 | 87,047 | 87,047 | ||||
Other comprehensive income (loss), net of tax | 18,250 | 18,250 | 18,250 | ||||
Cash dividends declared | (29,652) | (29,652) | (29,652) | ||||
Cashless exercise of warrents | $ 0 | 0 | 0 | ||||
Cashless exercise of warrents (in shares) | 224,066 | ||||||
Treasury shares purchased under deferred directors' plan | $ 515 | (515) | 0 | 0 | |||
Treasury shares purchased under deferred directors' plan (in shares) | (11,481) | ||||||
Treasury shares sold and distributed under deferred directors' plan | $ (118) | 118 | 0 | 0 | |||
Treasury shares sold and distributed under deferred directors' plan (in shares) | 5,699 | ||||||
Stock activity under equity incentive plans | $ (2,109) | (2,109) | (2,109) | ||||
Stock activity under equity incentive plans (in shares) | 97,218 | ||||||
Stock based compensation expense | $ 4,187 | 4,187 | 4,187 | ||||
Balance at Dec. 31, 2019 | $ 114,858 | $ 475,247 | $ 12,059 | $ (4,153) | $ 598,011 | $ 89 | $ 598,100 |
Balance (in shares) at Dec. 31, 2019 | 25,444,275 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||
Cash dividends declared, per share | $ 1.16 | $ 1 | $ 0.85 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 87,047,000 | $ 80,411,000 | $ 57,330,000 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation | 5,930,000 | 5,654,000 | 5,119,000 |
Provision for loan losses | 3,235,000 | 6,400,000 | 3,000,000 |
Net loss on sale and write down of other real estate owned | 0 | 16,000 | 12,000 |
Amortization of loan servicing rights | 528,000 | 503,000 | 599,000 |
Loans originated for sale | (66,008,000) | (49,816,000) | (54,188,000) |
Net gain on sales of loans | (2,043,000) | (1,713,000) | (1,749,000) |
Proceeds from sale of loans | 64,820,000 | 51,715,000 | 57,621,000 |
Net (gain) loss on sale of premises and equipment | (3,000) | 1,000 | 79,000 |
Net (gain) loss on sales and calls of securities available-for-sale | (142,000) | 50,000 | (32,000) |
Net amortization of available-for-sale securities | 3,947,000 | 3,177,000 | 3,114,000 |
Stock based compensation expense | 4,187,000 | 5,608,000 | 5,698,000 |
Earnings on life insurance | (1,890,000) | (1,244,000) | (1,768,000) |
Gain on life insurance | (841,000) | (206,000) | 0 |
Tax benefit of stock award issuances | (529,000) | (761,000) | (964,000) |
Net change: | |||
Interest receivable and other assets | (4,733,000) | (3,301,000) | 787,000 |
Interest payable and other liabilities | 6,534,000 | 8,481,000 | 2,584,000 |
Total adjustments | 12,992,000 | 24,564,000 | 19,912,000 |
Net cash from operating activities | 100,039,000 | 104,975,000 | 77,242,000 |
Cash flows from investing activities: | |||
Proceeds from sale of securities available-for-sale | 57,114,000 | 15,302,000 | 40,877,000 |
Proceeds from maturities, calls and principal paydowns of securities available-for-sale | 67,818,000 | 53,817,000 | 61,745,000 |
Purchases of securities available-for-sale | (129,453,000) | (126,551,000) | (139,252,000) |
Purchase of life insurance | (5,552,000) | (423,000) | (580,000) |
Net increase in total loans | (152,119,000) | (101,670,000) | (347,217,000) |
Proceeds from sales of land, premises and equipment | 14,000 | 461,000 | 10,000 |
Purchases of land, premises and equipment | (7,998,000) | (7,968,000) | (9,582,000) |
Purchase of Federal Home Loan Bank Stock | 0 | 0 | (2,250,000) |
Proceeds from sales of other real estate owned | 0 | 21,000 | 199,000 |
Proceeds from life insurance | 1,483,000 | 569,000 | 0 |
Net cash from investing activities | (168,693,000) | (166,442,000) | (396,050,000) |
Cash flows from financing activities: | |||
Net increase in total deposits | 89,754,000 | 35,410,000 | 430,743,000 |
Net increase (decrease) in short-term borrowings | (75,555,000) | 174,903,000 | 20,607,000 |
Proceeds from short-term FHLB borrowings | 0 | 0 | 80,000,000 |
Payments on short term FHLB borrowings | 0 | (80,000,000) | (180,000,000) |
Payments on long-term FHLB borrowings | 0 | (30,000) | (2,000) |
Payments on subordinated debentures | (30,928,000) | 0 | 0 |
Common dividends paid | (29,639,000) | (25,278,000) | (21,396,000) |
Preferred dividends paid | (13,000) | (13,000) | (13,000) |
Payments related to equity incentive plan | (2,109,000) | (2,435,000) | (1,736,000) |
Purchase of treasury stock | (515,000) | (463,000) | (495,000) |
Sales of treasury stock | 118,000 | 115,000 | 0 |
Net cash from financing activities | (48,887,000) | 102,209,000 | 327,708,000 |
Net change in cash and cash equivalents | (117,541,000) | 40,742,000 | 8,900,000 |
Cash and cash equivalents at beginning of the year | 216,922,000 | 176,180,000 | 167,280,000 |
Cash and cash equivalents at end of the year | 99,381,000 | 216,922,000 | 176,180,000 |
Cash paid during the year for: | |||
Interest | 58,964,000 | 43,606,000 | 29,171,000 |
Income taxes | 21,035,000 | 19,033,000 | 29,120,000 |
Supplemental non-cash disclosures: | |||
Loans transferred to other real estate owned | 0 | 316,000 | 88,000 |
Property transferred to held for sale | 0 | 221,000 | 0 |
Right-of-use assets obtained in exchange for lease liabilities | $ 5,483,000 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation: The consolidated financial statements include Lakeland Financial Corporation (the “Holding Company”) and its wholly-owned subsidiaries, Lake City Bank (the “Bank”) and LCB Risk Management, Inc., together referred to as (the “Company”). On December 18, 2006, LCB Investments II, Inc. was formed as a wholly owned subsidiary of the Bank incorporated in Nevada to manage a portion of the Bank’s investment portfolio beginning in 2007. On December 21, 2006, LCB Funding, Inc., a real estate investment trust incorporated in Maryland, was formed as a wholly owned subsidiary of LCB Investments II, Inc. On December 28, 2012, LCB Risk Management, Inc., a captive insurance company incorporated in Nevada, was formed as a wholly owned subsidiary of the Holding Company. All intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through the Bank, a full-service commercial bank with 50 branch offices in fifteen counties in Northern and Central Indiana. The Company provides commercial, retail, trust and investment services to its customers. Commercial products include commercial loans and technology-driven solutions to meet commercial customers’ treasury management needs such as internet business banking and on-line treasury management services. Retail banking clients are provided a wide array of traditional retail banking services, including lending, deposit and investment services. Retail lending programs are focused on mortgage loans, home equity lines of credit and traditional retail installment loans. The Company provides credit card services to retail and commercial customers through its retail card program and merchant processing activity. The Company provides wealth advisory and trust clients with traditional personal and corporate trust services. The Company also provides retail brokerage services, including an array of financial and investment products such as annuities and life insurance. Other financial instruments, which represent potential concentrations of credit risk, include deposit accounts in other financial institutions. Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), 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 future results could differ. Cash Flows: Cash and cash equivalents include cash, demand deposits in other financial institutions and short-term investments and certificates of deposit with maturities of 90 days or less. Cash flows are reported net for customer loan and deposit transactions, and short-term borrowings. Securities: Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. Securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Purchase premiums or discounts are recognized in interest income using the interest method over the terms of the securities or overestimated lives for mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. 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) other-than-temporary impairment (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. Equity securities which are included in other assets, are carried at fair value with changes in fair value recorded through earnings. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Real Estate Mortgage Loans Held-for-Sale: Loans held for sale are reported at the lower of cost or fair value on an aggregate basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loan sales occur on the delivery date agreed to in the relevant commitment agreement. The Company retains servicing on the majority of loans sold. The carrying value of loans sold is reduced by the amount allocated to the servicing right. The gain or loss on the sale of loans is the difference between the carrying value of the loans sold and the funds received from the sale. Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. All classes of commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage loans for which collateral is insufficient to cover all principal and accrued interest are reclassified as nonaccrual loans, on or before the date when the loan becomes 90 days delinquent. When a loan is classified as a nonaccrual loan, interest on the loan is no longer accrued, all unpaid accrued interest is reversed and interest income is subsequently recorded on the cash-basis or cost-recovery method. Accrual status is resumed when all contractually due payments are brought current and future payments are reasonably assured. Other consumer loans are not placed on a nonaccrual status since these loans are charged-off when they have been delinquent from 90 to 180 days, and when the related collateral, if any, is not sufficient to offset the indebtedness. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The recorded investment in loans is the loan balance net of unamortized deferred loan fees and costs. The total amount of accrued interest on loans as of December 31, 2019 and 2018 was $11.5 million and $11.8 million. 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 inability to fully collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company has an established process to determine the adequacy of the allowance for loan losses that generally includes consideration of the following factors: changes in the nature and volume of the loan portfolio, overall portfolio quality and current economic conditions that may affect the borrowers’ ability to repay. Consideration is not limited to these factors, although they represent the most commonly cited factors. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available or as future events change. 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. The general component covers non-impaired loans and is based on historical loss experience, subject to a floor, adjusted for current factors. A detailed analysis is performed on loans that are classified but determined not to be impaired which incorporates different scenarios where the risk that the borrower will be unable or unwilling to repay its debt in full or on time is combined with an estimate of loss in the event the borrower cannot pay to develop non-specific allocations for such loan pools. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years, subject to a floor. This loss experience is supplemented with other environmental 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; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, 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 and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial, consumer 1-4 family mortgage and other consumer. The risk characteristics of each of the identified portfolio segments are as follows: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Commercial and Industrial Commercial Real Estate and Multi-Family Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified and a concession has been granted for borrowers experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired and may be either accruing or non-accruing. Nonaccrual troubled debt restructurings follow the same policy as described above for other loans. Impairment for troubled debt restructurings is measured at the present value of estimated future cash flows using the loan’s effective rate at inception or at discounted collateral value for collateral dependent loans. Impairment is evaluated individually or in total for smaller-balance loans of similar nature such as all classes of consumer 1-4 family and other consumer loans, and individually for all classes of commercial and industrial, commercial real estate and multi-family, agri-business and agricultural and other commercial loans. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is impaired, a portion of the allowance may be 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 less anticipated costs to sell if repayment is expected solely from the collateral. All classes of commercial and industrial, commercial real estate and multifamily residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage loans that become delinquent beyond 90 days are analyzed and a charge-off is taken when it is determined that the underlying collateral, if any, is not sufficient to offset the indebtedness. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Troubled debt restructured loans are considered for removal from troubled debt restructuring status in the year following modification or at time of subsequent restructuring for loans with cumulative principal forgiveness if the interest rate is considered a market rate at the time of modification and it has been performing according to the terms of the modification for a reasonable period of time long enough to observe an ability to repay under the modified terms. If removed from troubled debt restructuring status, the loan continues to be evaluated for impairment with either the present value of estimated future cash flows using the loan’s effective rate at inception or at discounted collateral value for collateral dependent loans. In addition, troubled debt restructured loans with subsequent modifications that do not have cumulative principal forgiveness are considered for removal from troubled debt restructuring status at the time of the subsequent modification if the following circumstances exist: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties; (2) under the terms of the subsequent restructuring agreement no concession has been granted to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for comparable new debt. Upon meeting these criteria, the loan is no longer individually evaluated for impairment and is no longer disclosed as a troubled debt restructuring. Investments in Limited Partnerships: The Company enters into and invests in limited partnerships in order to invest in affordable housing projects for the primary purpose of obtaining available tax benefits. The Company is a limited partner in these investments and, as such, the Company is not involved in the management or operation of such investments. These investments are accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the partnership’s earnings or losses in its income statement and adjusts the carrying amount of the investments on the consolidated balance sheet. These investments are evaluated for impairment when events indicate the carrying amount may not be recoverable. The investments recorded at December 31, 2019 and 2018 were $6.7 million and $7.0 million, respectively and are included with other assets in the consolidated balance sheet. The Company also has a commitment to fund an additional $1.6 million at December 31, 2019 in two of the limited partnerships compared to $2.1 million at December 31, 2018, which is included with other liabilities in the consolidated balance sheet. Foreclosed Assets: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs incurred after acquisition are expensed. At December 31, 2019 and 2018, the balance of other real estate owned was $316,000 and is included with other assets on the consolidated balance sheet. Land, Premises and Equipment, Net: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the useful lives of the assets. Premises and improvements assets have useful lives between 5 3 Loan Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value 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 noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The amortization of servicing rights is netted against mortgage banking income. Servicing fees totaled $1.1 million, $1.1 million and $1.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Late fees and ancillary fees related to loan servicing are not material. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as loan type, term and interest rate. Any impairment of a grouping is reported as a valuation allowance, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in the valuation allowance are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The carrying value of mortgage servicing rights, which is included with other assets in the consolidated balance sheet, was $3.8 million and $3.3 million as of December 31, 2019 and 2018. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $337.9 million and $343.5 million at December 31, 2019 and 2018. Custodial escrow balances maintained in connection with serviced loans were $1 Servicing fee income (loss), which is included in loan and service fees on the income statement, is recorded for fees earned for servicing loans. Fees earned for servicing loans are based on a contractual percentage of the outstanding principal amount of the loan and are recorded as income when earned. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Mortgage Banking Derivatives: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in fair values of these derivatives are included in mortgage banking income. Interest Rate Swap Derivatives: The Company offers a derivative product to certain creditworthy commercial banking customers. This product allows the commercial banking customers to enter into an agreement with the Company to swap a variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the borrower’s interest rate exposure. The extension of credit incurred in connection with these derivative products is subject to the same approval and underwriting standards as traditional credit products. The Company limits its risk exposure by simultaneously entering into a similar, offsetting swap agreement with a separate, well-capitalized and highly rated counterparty previously approved by the Company’s Asset Liability Committee. By using these interest rate swap arrangements, the Company is also better insulated from the interest rate risk associated with underwriting fixed-rate loans and is better able to meet customer demand for fixed rate loans. These derivative contracts are not designated against specific assets or liabilities and, therefore, do not qualify for hedge accounting. The derivatives are recorded as assets and liabilities on the balance sheet at fair value with changes in fair value recorded in non-interest income for both the commercial banking customer swaps and the related offsetting swaps. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820), resulting in some potential volatility in earnings each period. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The notional amount of the combined interest rate swaps with customers and counterparties at December 31, 2019 and 2018 was $349.6 million and $258.0 million, respectively. The fair value of the interest rate swap asset was $7.3 million and $3.9 million and the fair value of the interest rate swap liability was $7.9 million and $4.0 million at December 31, 2019 and 2018, respectively. Bank Owned Life Insurance: At December 31, 2019 and 2018, the Company owned $79.8 million and $73.9 million, respectively, of life insurance policies on certain officers to provide a life insurance benefit for these officers. At December 31, 2019 and 2018, the Company also owned $4.0 million and $3.2 million, respectively, of variable life insurance on certain officers related to a deferred compensation plan. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, i.e., the cash surrender value adjusted for other changes or other amounts due that are probable at settlement. Goodwill and Other Intangible Assets: All goodwill on the Company’s consolidated balance sheet resulted from business combinations prior to January 1, 2009 and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is not amortized, but assessed at least annually for impairment and any such impairment will be recognized in the period identified. FHLB and Federal Reserve Bank Stock: FHLB and Federal Reserve Bank stock are carried at cost in other assets, classified as a restricted security and are periodically evaluated for impairment based on ultimate recoverability of par value. Both cash and stock dividends are reported as income. Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. This product was discontinued during 2019. Long-term Assets: Premises and equipment, 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. Benefit Plans: The Company has a noncontributory defined benefit pension plan, which covered substantially all employees until the plan was frozen effective April 1, 2000. Funding of the plan equals or exceeds the minimum funding requirement determined by the actuary. Pension expense is the net of interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Benefits are based on years of service and compensation levels. The Company maintains a 401(k) profit sharing plan for all employees meeting certain age and service requirements. The Company contributions are based upon the percentage of budgeted net income earned during the year. An employee deferred compensation plan is available to certain employees with returns based on investments in mutual funds. The Company maintains a directors’ deferred compensation plan. Effective January 1, 2003, the directors’ deferred compensation plan was amended to restrict the deferral to be in stock only and deferred directors’ fees are included in equity. The Company acquires shares on the open market and records such shares as treasury stock. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Stock Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees, 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 Company’s common stock at the date of grant adjusted for the present value of expected dividends is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Certain of the restricted stock awards are performance based, as more fully discussed in Note 15 – Stock Based Compensation. Income Taxes: Annual consolidated federal and state income tax returns are filed by the Company. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Income tax expense is recorded based on the amount of taxes due on its tax return plus net deferred taxes computed based upon the expected future tax consequences of temporary differences between carrying amounts and tax basis of assets and liabilities, using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is more likely of being realized on examination than not. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Off-Balance Sheet Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby 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. The fair value of standby letters of credit is recorded as a liability during the commitment period. Earnings Per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, restricted stock awards and warrants. Earnings and dividends per share are restated for all stock splits and dividends through the date of issue of the financial statements. The common shares included in treasury stock for 2019 and 2018 include 178,741 and 172,959 shares, respectively, of Company common stock that has been purchased under the directors’ deferred compensation plan described above. Because these shares are held in trust for the participants, they are treated as outstanding when computing the weighted-average common shares outstanding for the calculation of both basic and diluted earnings per share. 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 the funded status of the pension plan, which are also recognized as separate components of equity. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there currently are such matters that will have a material effect on the financial statements. Restrictions on Cash: The Company was required to have $28.9 million and $6.4 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at year-end 2019 and 2018, respectively. The Company met this requirement both years. Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to its stockholders. These restrictions currently pose no practical limit on the ability of the Bank or Company to pay dividends at historical levels. Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5 - Fair Value. 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. Operating Segments: The Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. All of the Company’s financial service operations are similar and considered by management to be aggregated into one reportable operating segment. While the Company has assigned certain management responsibilities by region and business-line, the Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. The majority of the Company’s revenue is from the business of banking and the Company’s assigned regions have similar economic characteristics, products, services and customers. Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment. Adoption of New Accounting Standards: The Company accounts for leases in accordance with ASU 2016-02, “Leases”, which the Company adopted on January 1, 2019. This guidance replaced existing lease guidance in GAAP and requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. Lessees and lessors are required to recognize and measure leases that exist at the beginning of the earliest period presented using a modified retrospective approach. The Company recorded a right-of-use asset of $5.5 million and a lease liability of $5.5 million upon adoption, and there was no NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In March 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities.” This update amends the amortization period for certain purchased callable debt securities held at a premium. FASB has shortened the amortization period for the premium to the earliest call date. Under legacy GAAP, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company adopted this new account |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
SECURITIES | |
SECURITIES | NOTE 2 – SECURITIES Information related to the fair value and amortized cost of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31 is provided in the tables below. Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gain Losses Value 2019 Mortgage-backed securities: residential $ 283,817 $ 4,751 $ (387) $ 288,181 Mortgage-backed securities: commercial 36,712 262 (2) 36,972 State and municipal securities 270,480 12,828 (228) 283,080 Total $ 591,009 $ 17,841 $ (617) $ 608,233 2018 U.S. Treasury securities $ 994 $ 0 $ (7) $ 987 U.S. government sponsored agencies 4,435 0 (85) 4,350 Mortgage-backed securities: residential 329,516 1,392 (5,496) 325,412 Mortgage-backed securities: commercial 38,712 0 (571) 38,141 State and municipal securities 217,964 1,403 (2,708) 216,659 Total $ 591,621 $ 2,795 $ (8,867) $ 585,549 NOTE 2 – SECURITIES (continued) Information regarding the fair value and amortized cost of available-for-sale debt securities by maturity as of December 31, 2019, is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without prepayment penalty. Amortized Fair (dollars in thousands) Cost Value Due in one year or less $ 4,587 $ 4,610 Due after one year through five years 15,115 15,453 Due after five years through ten years 24,962 26,061 Due after ten years 225,816 236,956 270,480 283,080 Mortgage-backed securities 320,529 325,153 Total debt securities $ 591,009 $ 608,233 Security proceeds, gross gains and gross losses for 2019, 2018 and 2017 were as follows: (dollars in thousands) 2019 2018 2017 Sales of securities available-for-sale Proceeds $ 57,114 $ 15,302 $ 40,877 Gross gains 279 21 267 Gross losses (137) (71) (235) Number of securities 46 29 50 Securities with carrying values of $59.3 million and $164.7 million were pledged as of December 31, 2019 and 2018, respectively, as collateral for securities sold under agreements to repurchase, borrowings from the FHLB and for other purposes as permitted or required by law. Information regarding securities with unrealized losses as of December 31, 2019 and 2018, is presented below. The tables distribute the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more. Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Losses Value Losses Value Losses 2019 Mortgage-backed securities: residential $ 23,436 $ 112 $ 14,174 $ 275 $ 37,610 $ 387 Mortgage-backed securities: commercial 4,591 2 0 0 4,591 2 State and municipal securities 14,188 228 0 0 14,188 228 Total temporarily impaired $ 42,215 $ 342 $ 14,174 $ 275 $ 56,389 $ 617 2018 U.S. Treasury securities $ 0 $ 0 $ 987 $ 7 $ 987 $ 7 U.S. government sponsored agencies 0 0 4,350 85 4,350 85 Mortgage-backed securities: residential 11,619 12 217,182 5,484 228,801 5,496 Mortgage-backed securities: commercial 0 0 38,141 571 38,141 571 State and municipal securities 26,229 124 85,982 2,584 112,211 2,708 Total temporarily impaired $ 37,848 $ 136 $ 346,642 $ 8,731 $ 384,490 $ 8,867 NOTE 2 – SECURITIES (continued) The number of securities with unrealized losses as of December 31, 2019 and 2018 is presented below. Less than 12 months 12 months or more Total 2019 Mortgage-backed securities: residential 7 6 13 Mortgage-backed securities: commercial 1 0 1 State and municipal securities 11 0 11 Total temporarily impaired 19 6 25 2018 U.S. Treasury securities 0 1 1 U.S. government sponsored agencies 0 2 2 Mortgage-backed securities: residential 5 84 89 Mortgage-backed securities: commercial 0 9 9 State and municipal securities 35 111 146 Total temporarily impaired 40 207 247 There were no Ninety-nine percent of the securities are backed by the U.S. government, government agencies, government sponsored agencies or are rated above investment grade, except for certain non-local or local municipal securities, which are not rated. For the government, government-sponsored agency and municipal securities, management did not have concerns of credit losses and there was nothing to indicate that full principal will not be received. Management considered the unrealized losses on these securities to be primarily interest rate driven and does not expect material losses given current market conditions unless the securities are sold. However, at this time management does not have the intent to sell and it is more likely than not that it will not be required to sell these securities before the recovery of their amortized cost basis. The Company does not have a history of actively trading securities, but keeps the securities available-for-sale should liquidity for interest rate risk management or other needs develop that would warrant the sale of securities. While these securities are held in the available-for-sale portfolio, it is management’s current intent and ability to hold them until a recovery in fair value or maturity. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2019 | |
LOANS | |
LOANS | NOTE 3 – LOANS Total loans outstanding as of the years ended December 31, 2019 and 2018 consisted of the following: (dollars in thousands) 2019 2018 Commercial and industrial loans: Working capital lines of credit loans $ 709,849 $ 690,620 Non-working capital loans 717,019 714,759 Total commercial and industrial loans 1,426,868 1,405,379 Commercial real estate and multi-family residential loans: Construction and land development loans 287,641 266,805 Owner occupied loans 573,665 586,325 Nonowner occupied loans 571,364 520,901 Multi-family loans 240,652 195,604 Total commercial real estate and multi-family residential loans 1,673,322 1,569,635 Agri-business and agricultural loans: Loans secured by farmland 174,380 177,503 Loans for agricultural production 205,151 193,010 Total agri-business and agricultural loans 379,531 370,513 Other commercial loans 112,302 95,657 Total commercial loans 3,592,023 3,441,184 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 177,227 185,822 Open end and junior lien loans 186,552 187,030 Residential construction and land development loans 12,966 16,226 Total consumer 1-4 family mortgage loans 376,745 389,078 Other consumer loans 98,617 86,064 Total consumer loans 475,362 475,142 Gross loans 4,067,385 3,916,326 Less: Allowance for loan losses (50,652) (48,453) Net deferred loan fees (1,557) (1,581) Loans, net $ 4,015,176 $ 3,866,292 The recorded investment in loans does not include accrued interest. The Company had $1.6 million and $586,000 in residential real estate loans in process of foreclosure as of December 31, 2019 and 2018, respectively. |
ALLOWANCE FOR LOAN LOSSES AND C
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 12 Months Ended |
Dec. 31, 2019 | |
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | |
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | NOTE 4 – ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2019, 2018 and 2017: Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2019 Beginning balance $ 22,518 $ 15,393 $ 4,305 $ 368 $ 2,292 $ 283 $ 3,294 $ 48,453 Provision for loan losses 4,259 259 (444) 79 (219) 275 (974) 3,235 Loans charged-off (1,447) (17) 0 0 (110) (336) 0 (1,910) Recoveries 459 161 8 0 123 123 0 874 Net loans (charged-off) recovered (988) 144 8 0 13 (213) 0 (1,036) Ending balance $ 25,789 $ 15,796 $ 3,869 $ 447 $ 2,086 $ 345 $ 2,320 $ 50,652 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2018 Beginning balance $ 21,097 $ 14,714 $ 4,920 $ 577 $ 2,768 $ 379 $ 2,666 $ 47,121 Provision for loan losses 5,884 1,140 (657) (209) (536) 150 628 6,400 Loans charged-off (5,215) (491) 0 0 (48) (357) 0 (6,111) Recoveries 752 30 42 0 108 111 0 1,043 Net loans (charged-off) recovered (4,463) (461) 42 0 60 (246) 0 (5,068) Ending balance $ 22,518 $ 15,393 $ 4,305 $ 368 $ 2,292 $ 283 $ 3,294 $ 48,453 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2017 Beginning balance $ 20,272 $ 13,452 $ 3,532 $ 461 $ 2,827 $ 387 $ 2,787 $ 43,718 Provision for loan losses 614 997 1,365 116 (105) 134 (121) 3,000 Loans charged-off (842) (406) 0 0 (53) (259) 0 (1,560) Recoveries 1,053 671 23 0 99 117 0 1,963 Net loans (charged-off) recovered 211 265 23 0 46 (142) 0 403 Ending balance $ 21,097 $ 14,714 $ 4,920 $ 577 $ 2,768 $ 379 $ 2,666 $ 47,121 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following tables present balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018: Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 9,324 $ 538 $ 90 $ 0 $ 426 $ 6 $ 0 $ 10,384 Collectively evaluated for impairment 16,465 15,258 3,779 447 1,660 339 2,320 40,268 Total ending allowance balance $ 25,789 $ 15,796 $ 3,869 $ 447 $ 2,086 $ 345 $ 2,320 $ 50,652 Loans: Loans individually evaluated for impairment $ 19,580 $ 4,998 $ 445 $ 0 $ 2,789 $ 17 $ 0 $ 27,829 Loans collectively evaluated for impairment 1,407,246 1,665,842 379,186 112,166 375,210 98,349 0 4,037,999 Total ending loans balance $ 1,426,826 $ 1,670,840 $ 379,631 $ 112,166 $ 377,999 $ 98,366 $ 0 $ 4,065,828 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 8,552 $ 921 $ 73 $ 0 $ 457 $ 26 $ 0 $ 10,029 Collectively evaluated for impairment 13,966 14,472 4,232 368 1,835 257 3,294 38,424 Total ending allowance balance $ 22,518 $ 15,393 $ 4,305 $ 368 $ 2,292 $ 283 $ 3,294 $ 48,453 Loans: Loans individually evaluated for impairment $ 19,734 $ 4,266 $ 433 $ 0 $ 2,240 $ 44 $ 0 $ 26,717 Loans collectively evaluated for impairment 1,385,604 1,562,899 370,174 95,520 388,053 85,778 0 3,888,028 Total ending loans balance $ 1,405,338 $ 1,567,165 $ 370,607 $ 95,520 $ 390,293 $ 85,822 $ 0 $ 3,914,745 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019: Unpaid Allowance for Principal Recorded Loan Losses (dollars in thousands) Balance Investment Allocated With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 22 $ 22 $ 0 Non-working capital loans 2,130 735 0 Commercial real estate and multi-family residential loans: Owner occupied loans 3,189 3,010 0 Agri-business and agricultural loans: Loans secured by farmland 603 283 0 Loans for ag production 15 15 0 Consumer 1-4 family loans: Closed end first mortgage loans 411 330 0 Open end and junior lien loans 121 121 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 6,214 6,214 3,089 Non-working capital loans 13,230 12,609 6,235 Commercial real estate and multi-family residential loans: Owner occupied loans 1,988 1,988 538 Agri-business and agricultural loans: Loans secured by farmland 147 147 90 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,643 1,646 363 Open end and junior lien loans 641 640 53 Residential construction loans 51 52 10 Other consumer loans 17 17 6 Total $ 30,422 $ 27,829 $ 10,384 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018: Unpaid Allowance for Principal Recorded Loan Losses (dollars in thousands) Balance Investment Allocated With no related allowance recorded: Commercial and industrial loans: Non-working capital loans $ 3,284 $ 1,889 $ 0 Commercial real estate and multi-family residential loans: Owner occupied loans 1,773 1,527 0 Agri-business and agricultural loans: Loans secured by farmland 603 283 0 Consumer 1-4 family loans: Closed end first mortgage loans 583 502 0 Open end and junior lien loans 220 220 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 9,691 6,694 2,602 Non-working capital loans 11,099 11,151 5,950 Commercial real estate and multi-family residential loans: Construction and land development loans 291 291 142 Owner occupied loans 2,938 2,448 779 Agri-business and agricultural loans: Loans secured by farmland 150 150 73 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,517 1,518 457 Other consumer loans 45 44 26 Total $ 32,194 $ 26,717 $ 10,029 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2019: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 176 $ 9 $ 9 Non-working capital loans 1,170 40 30 Commercial real estate and multi-family residential loans: Owner occupied loans 2,354 34 34 Agri-business and agricultural loans: Loans secured by farmland 283 0 0 Loans for ag production 4 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 272 3 3 Open end and junior lien loans 133 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 6,335 143 81 Non-working capital loans 11,800 448 410 Commercial real estate and multi-family residential loans: Owner occupied loans 1,849 43 39 Agri-business and agricultural loans: Loans secured by farmland 147 3 1 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,643 45 43 Open end and junior lien loans 268 0 0 Residential construction loans 9 0 0 Other consumer loans 21 2 1 Total $ 26,464 $ 770 $ 651 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2018: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 785 $ 26 $ 23 Non-working capital loans 1,862 74 68 Commercial real estate and multi-family residential loans: Construction and land development loans 58 5 4 Owner occupied loans 2,291 36 37 Agri-business and agricultural loans: Loans secured by farmland 283 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 521 13 12 Open end and junior lien loans 205 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 3,307 74 12 Non-working capital loans 5,328 138 81 Commercial real estate and multi-family residential loans: Construction and land development loans 453 26 29 Owner occupied loans 1,631 9 1 Agri-business and agricultural loans: Loans secured by farmland 12 1 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,214 37 36 Open end and junior lien loans 38 0 0 Other consumer loans 47 3 3 Total $ 18,035 $ 442 $ 306 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2017: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 407 $ 46 $ 39 Non-working capital loans 1,341 57 51 Commercial real estate and multi-family residential loans: Construction and land development loans 110 5 5 Owner occupied loans 2,349 17 15 Nonowner occupied loans 3,009 294 284 Agri-business and agricultural loans: Loans secured by farmland 287 0 0 Consumer 1‑4 family loans: Closed end first mortgage loans 293 9 8 Open end and junior lien loans 103 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 2,083 17 17 Non-working capital loans 5,715 103 103 Commercial real estate and multi-family residential loans: Construction and land development loans 69 5 0 Owner occupied loans 1,664 3 2 Agri-business and agricultural loans: Loans secured by farmland 2 0 0 Consumer 1‑4 family mortgage loans: Closed end first mortgage loans 1,006 25 22 Open end and junior lien loans 80 0 0 Other consumer loans 52 3 3 Total $ 18,570 $ 584 $ 549 Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans: Greater than 30 ‑ 89 90 Days Past Total Past Loans Not Days Due and Still Due and (dollars in thousands) Past Due Past Due Accruing Nonaccrual Nonaccrual Total Commercial and industrial loans: Working capital lines of credit loans $ 703,737 $ 10 $ 0 $ 6,236 $ 6,246 $ 709,983 Non-working capital loans 710,557 4 0 6,282 6,286 716,843 Commercial real estate and multi-family residential loans: Construction and land development loans 286,534 0 0 0 0 286,534 Owner occupied loans 569,303 0 0 4,056 4,056 573,359 Nonowner occupied loans 570,687 0 0 0 0 570,687 Multi-family loans 240,260 0 0 0 0 240,260 Agri-business and agricultural loans: Loans secured by farmland 173,959 0 0 430 430 174,389 Loans for agricultural production 205,228 0 0 14 14 205,242 Other commercial loans 112,166 0 0 0 0 112,166 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 174,902 1,099 45 827 1,971 176,873 Open end and junior lien loans 187,255 188 0 761 949 188,204 Residential construction loans 12,870 0 0 52 52 12,922 Other consumer loans 98,176 173 0 17 190 98,366 Total $ 4,045,634 $ 1,474 $ 45 $ 18,675 $ 20,194 $ 4,065,828 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 by class of loans: Greater than 30‑89 90 Days Past Total Past Loans Not Days Due and Still Due and (dollars in thousands) Past Due Past Due Accruing Nonaccrual Nonaccrual Total Commercial and industrial loans: Working capital lines of credit loans $ 684,191 $ 4,328 $ 0 $ 2,245 $ 6,573 $ 690,764 Non-working capital loans 709,629 3,368 0 1,577 4,945 714,574 Commercial real estate and multi-family residential loans: Construction and land development loans 265,544 0 0 0 0 265,544 Owner occupied loans 583,214 486 0 2,269 2,755 585,969 Nonowner occupied loans 520,431 57 0 0 57 520,488 Multi-family loans 195,164 0 0 0 0 195,164 Agri-business and agricultural loans: Loans secured by farmland 177,080 150 0 283 433 177,513 Loans for agricultural production 193,094 0 0 0 0 193,094 Other commercial loans 95,520 0 0 0 0 95,520 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 183,420 1,370 0 671 2,041 185,461 Open end and junior lien loans 188,320 98 0 220 318 188,638 Residential construction loans 16,194 0 0 0 0 16,194 Other consumer loans 85,654 168 0 0 168 85,822 Total $ 3,897,455 $ 10,025 $ 0 $ 7,265 $ 17,290 $ 3,914,745 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) Troubled Debt Restructurings: Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $2.5 million and $3.7 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2019 and 2018. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring. (dollars in thousands) 2019 2018 Accruing troubled debt restructured loans $ 5,909 $ 8,016 Nonaccrual troubled debt restructured loans 3,188 4,384 Total troubled debt restructured loans $ 9,097 $ 12,400 During the year ending December 31, 2019, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal. Additional concessions were granted to borrowers during 2019 with previously identified troubled debt restructured loans. There were three commercial real estate loans with recorded investments totaling $1.9 million and five commercial and industrial loans with recorded investments totaling $2.4 million where the collateral values or cash flows were insufficient to support the loans. These troubled debt restructured loans with additional concessions decreased the allowance by $484,000 and resulted in no charge-offs for year ending December 31, 2019. These concessions are not included in the table below. The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2019: Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 1 $ 35 $ 35 1 1 Total 1 $ 35 $ 35 1 1 For the period ending December 31, 2019, the working capital line of credit loan troubled debt restructuring described above had no impact to the allowance and no charge-offs were recorded. During the year ending December 31, 2018, certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal. Additional concessions were granted to borrowers during 2018 with previously identified troubled debt restructured loans. There were three commercial real estate loans with recorded investments totaling $1.3 million and three commercial and industrial loans with recorded investments totaling $1.4 million where the collateral value and/or cash flows do not support those loans. The other three loans are to borrowers for investments in land for residential development which have not had sales activity to support loans with a recorded investments totaling $593,000. These troubled debt restructured loans with additional concessions increased the allowance by $189,000 and resulted in no charge-offs for year ending December 31, 2018. These concessions are not included in the table below. NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2018: Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 1 $ 600 $ 600 1 0 Non-working capital loans 7 4,628 4,628 7 0 6 Commercial real estate and multi-family residential loans: Construction and land development loans 1 824 824 1 12 Owner occupied loans 2 933 933 2 12 Consumer 1-4 family loans: Closed end first mortgage loans 1 198 197 1 239 Total 12 $ 7,183 $ 7,182 12 0 239 Additional concessions were granted to borrowers during 2017 with previously identified troubled debt restructured loans. There were four loans for commercial real estate buildings where the collateral value and cash flows from the companies occupying the buildings do not support the loans with recorded investments of $1.9 million. There were five loans for commercial and industrial non-working capital loans with recorded investments of $2.5 million. These concessions are not included in table below. The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2017: Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 1 $ 1,324 $ 1,324 1 9 Non-working capital loans 4 1,922 1,922 4 0 6 Commercial real estate and multi-family residential loans: Owner occupied loans 1 486 486 1 6 Consumer 1-4 family loans: Closed end first mortgage loans 2 120 122 2 198 350 Total 8 $ 3,852 $ 3,854 8 0 350 For the period ending December 31, 2017, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $513,000 and the commercial real estate and multi-family residential loan troubled debt restructurings increased the allowance for loan losses by $27,000. No charge-offs resulted from any troubled debt restructurings described above during the year ended December 31, 2017. NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The following table presents loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the period ending December 31, 2019, 2018 and 2017. 2019 2018 2017 Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Loans Investment Troubled Debt Restructurings that Subsequently Defaulted Commercial and industrial loans: Non-working capital loans 1 $ 601 0 $ 0 0 $ 0 Total 1 $ 601 0 $ 0 0 $ 0 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 analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. The Company uses the following definitions for risk ratings: Special Mention. Substandard. Doubtful. Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard consumer loans and consumer nonaccrual loans which are evaluated individually and listed with Not Rated loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $ 631,728 $ 40,551 $ 37,278 $ 0 $ 426 $ 709,983 Non-working capital loans 673,370 18,782 19,381 0 5,310 716,843 Commercial real estate and multi-family residential loans: Construction and land development loans 286,534 0 0 0 0 286,534 Owner occupied loans 535,496 14,804 23,059 0 0 573,359 Nonowner occupied loans 569,315 781 591 0 0 570,687 Multi-family loans 240,260 0 0 0 0 240,260 Agri-business and agricultural loans: Loans secured by farmland 165,005 7,952 1,432 0 0 174,389 Loans for agricultural production 191,489 13,738 15 0 0 205,242 Other commercial loans 112,166 0 0 0 0 112,166 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 47,405 0 1,976 0 127,492 176,873 Open end and junior lien loans 10,845 0 762 0 176,597 188,204 Residential construction loans 0 0 51 0 12,871 12,922 Other consumer loans 27,250 0 17 0 71,099 98,366 Total $ 3,490,863 $ 96,608 $ 84,562 $ 0 $ 393,795 $ 4,065,828 As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $ 618,612 $ 43,240 $ 28,563 $ 0 $ 349 $ 690,764 Non-working capital loans 664,787 15,992 27,548 0 6,247 714,574 Commercial real estate and multi-family residential loans: Construction and land development loans 264,900 353 291 0 0 265,544 Owner occupied loans 541,734 21,864 22,371 0 0 585,969 Nonowner occupied loans 517,356 2,491 641 0 0 520,488 Multi-family loans 194,948 216 0 0 0 195,164 Agri-business and agricultural loans: Loans secured by farmland 166,623 9,107 1,783 0 0 177,513 Loans for agricultural production 183,189 8,155 1,750 0 0 193,094 Other commercial loans 95,516 0 0 0 4 95,520 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 54,879 0 2,021 0 128,561 185,461 Open end and junior lien loans 8,810 0 220 0 179,608 188,638 Residential construction loans 0 0 0 0 16,194 16,194 Other consumer loans 12,700 0 44 0 73,078 85,822 Total $ 3,324,054 $ 101,418 $ 85,232 $ 0 $ 404,041 $ 3,914,745 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE | |
FAIR VALUE | NOTE 5 – 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 Level 2 Level 3 The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Securities: The Company’s Finance Department, which is responsible for all accounting and SEC compliance, and the Company’s Treasury Department, which is responsible for investment portfolio management and asset/liability modeling, are the two areas that determine the Company’s valuation policies and procedures. Both of these areas report directly to the Executive Vice President and Chief Financial Officer of the Company. For assets or liabilities that may be considered for Level 3 fair value measurement on a recurring basis, these two departments and the Executive Vice President and Chief Financial Officer determine the appropriate level of the assets or liabilities under consideration. If there are assets or liabilities that are determined to be Level 3 by this group, the Risk Management Committee of the Company and the Audit Committee of the board of directors (the “Board”) are made aware of such assets at their next scheduled meeting. Securities pricing is obtained on securities from a third party pricing service and all security prices are tested annually against prices from another third party provider and reviewed with a market value price tolerance variance that varies by sector: municipal securities +/- 5%, government mbs/cmo +/- 3% and U.S. treasuries +/-1%. If any securities fall outside the tolerance threshold and have a variance of $100,000 or more, a determination of materiality is made for the amount over the threshold. Any security that would have a material threshold difference would be further investigated to determine why the variance exists and if any action is needed concerning the security pricing for that individual security. Changes in market value are reviewed monthly in aggregate by security type and any material differences are reviewed to determine why they exist. At least annually, the pricing methodology of the pricing service is received and reviewed to support the fair value levels used by the Company. A detailed pricing evaluation is requested and reviewed on any security determined to be fair valued using unobservable inputs by the pricing service. Mortgage banking derivative: NOTE 5 – FAIR VALUE (continued) Interest rate swap derivatives: Impaired loans: Mortgage servicing rights: At December 31, 2019, the sensitivity of the current fair value of MSRs to an immediate 10% and 20% adverse change in the PSA and discount rate was ($124,000) and ($242,000), respectively for the PSA, and was ($170,000) and ($329,000), respectively for the discount rate. These sensitivities are hypothetical and should not be relied upon. As the figures indicate, changes in value based on a 10% and 20% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in value may not be linear. Also, in this example, the effect of a variation in a particular assumption on the value of the MSR is calculated without changing any other assumption; however, in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract the sensitivities. NOTE 5 – FAIR VALUE (continued) Other real estate owned: Real estate mortgage loans held-for-sale The table below presents the balances of assets and liabilities measured at fair value on a recurring basis: December 31, 2019 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets: Mortgage-backed securities: residential $ 0 $ 288,181 $ 0 $ 288,181 Mortgage-backed securities: commercial 0 36,972 0 36,972 State and municipal securities 0 282,935 145 283,080 Total Securities 0 608,088 145 608,233 Mortgage banking derivative 0 198 0 198 Interest rate swap derivative 0 7,263 0 7,263 Total assets $ 0 $ 615,549 $ 145 $ 615,694 Liabilities: Mortgage banking derivative 0 14 0 14 Interest rate swap derivative 0 7,860 0 7,860 Total liabilities $ 0 $ 7,874 $ 0 $ 7,874 December 31, 2018 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets: U.S. Treasury securities $ 987 $ 0 $ 0 $ 987 U.S. government sponsored agency securities 0 4,350 0 4,350 Mortgage-backed securities: residential 0 325,412 0 325,412 Mortgage-backed securities: commercial 0 38,141 0 38,141 State and municipal securities 0 216,509 150 216,659 Total Securities 987 584,412 150 585,549 Mortgage banking derivative 0 95 0 95 Interest rate swap derivative 0 3,869 0 3,869 Total assets $ 987 $ 588,376 $ 150 $ 589,513 Liabilities: Mortgage banking derivative 0 23 0 23 Interest rate swap derivative 0 4,025 0 4,025 Total liabilities $ 0 $ 4,048 $ 0 $ 4,048 There were no transfers between Level 1 and Level 2 during 2019 and 2018. NOTE 5 – FAIR VALUE (continued) The fair value of Level 3 available-for-sale securities was immaterial to warrant additional recurring fair value disclosures as of December 31, 2019 and 2018. The tables below present the amount of assets measured at fair value on a nonrecurring basis: December 31, 2019 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets Impaired loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 3,126 $ 3,126 Non-working capital loans 0 0 6,374 6,374 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 43 43 Owner occupied loans 0 0 1,449 1,449 Agri-business and agricultural loans: Loans secured by farmland 0 0 57 57 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 0 0 474 474 Open end and junior lien loans 0 0 587 587 Other consumer loans 0 0 11 11 Total impaired loans $ 0 $ 0 $ 12,121 $ 12,121 Other real estate owned 0 0 0 0 Total assets $ 0 $ 0 $ 12,121 $ 12,121 December 31, 2018 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets Impaired loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 4,092 $ 4,092 Non-working capital loans 0 0 4,967 4,967 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 148 148 Owner occupied loans 0 0 1,669 1,669 Agri-business and agricultural loans: Loans secured by farmland 0 0 77 77 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 0 0 553 553 Total impaired loans $ 0 $ 0 $ 11,506 $ 11,506 Other real estate owned 0 0 316 316 Total assets $ 0 $ 0 $ 11,822 $ 11,822 NOTE 5 – FAIR VALUE (continued) The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2019: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Impaired loans: Commercial and industrial $ 9,500 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 53 % 1% - 100% Impaired loans: Commercial real estate 1,492 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 27 % 7% - 61% Impaired loans: Agribusiness and agricultural 57 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 61 % Impaired loans: Consumer 1-4 family mortgage 1,061 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 14 % 5% - 100% Impaired loans: Other consumer 11 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 36 % NOTE 5 – FAIR VALUE (continued) The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2018: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Impaired loans: Commercial and industrial $ 9,059 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 48 % 4%-100% Impaired loans: Commercial real estate 1,817 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 34 % 6%-53% Impaired loans: Agribusiness and agricultural 77 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 49 % Impaired loans: Consumer 1-4 family mortgage 553 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 23 % 0%-64% Other real estate owned 316 Collateral based measurements Discount to reflect current market conditions 0 % NOTE 5 – FAIR VALUE (continued) Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $22.2 million, with a valuation allowance of $10.1 million at December 31, 2019, resulting in an increase in provision for loan losses of $600,000 for the year ended December 31, 2019. At December 31, 2018, impaired loans had a gross carrying amount of $21.0 million, with a valuation allowance of $9.5 million, resulting in an increase in provision for loan losses of $7.1 million for the year ended December 31, 2018. At December 31, 2019 and 2018, other real estate owned had a net carrying amount of $316,000. The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2019. Items which are not financial instruments are not included. December 31, 2019 Carrying Estimated Fair Value (dollars in thousands) Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 99,381 $ 96,603 $ 2,778 $ 0 $ 99,381 Securities available-for-sale 608,233 0 608,088 145 608,233 Real estate mortgages held-for-sale 4,527 0 4,614 0 4,614 Loans, net 4,015,176 0 0 3,979,006 3,979,006 Federal Reserve and Federal Home Loan Bank Stock 13,772 N/A N/A N/A N/A Accrued interest receivable 15,391 0 3,729 11,662 15,391 Financial Liabilities: Certificates of deposit (1,192,067) 0 (1,202,060) 0 (1,202,060) All other deposits (2,941,752) (2,941,752) 0 0 (2,941,752) Federal Home Loan Bank advances (170,000) 0 (169,998) 0 (169,998) Standby letters of credit (915) 0 0 (915) (915) Accrued interest payable (11,604) (102) (11,502) 0 (11,604) The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2018. Items which are not financial instruments are not included. December 31, 2018 Carrying Estimated Fair Value (dollars in thousands) Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 216,922 $ 214,452 $ 2,470 $ 0 $ 216,922 Securities available-for-sale 585,549 987 584,412 150 585,549 Real estate mortgages held-for-sale 2,293 0 2,314 0 2,314 Loans, net 3,866,292 0 0 3,786,175 3,786,175 Federal Reserve and Federal Home Loan Bank Stock 13,772 N/A N/A N/A N/A Accrued interest receivable 15,518 3 3,569 11,946 15,518 Financial Liabilities: Certificates of deposit (1,419,754) 0 (1,424,553) 0 (1,424,553) All other deposits (2,624,311) (2,624,311) 0 0 (2,624,311) Securities sold under agreements to repurchase (75,555) 0 (75,555) 0 (75,555) Federal Home Loan Bank advances (170,000) 0 (169,996) 0 (169,996) Subordinated debentures (30,928) 0 0 (31,195) (31,195) Standby letters of credit (978) 0 0 (978) (978) Accrued interest payable (10,404) (110) (10,289) (5) (10,404) |
LAND, PREMISES AND EQUIPMENT, N
LAND, PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
LAND, PREMISES AND EQUIPMENT, NET | |
LAND, PREMISES AND EQUIPMENT, NET | NOTE 6 – LAND, PREMISES AND EQUIPMENT, NET Land, premises and equipment and related accumulated depreciation were as follows at December 31, 2019 and 2018: (dollars in thousands) 2019 2018 Land $ 12,511 $ 12,302 Premises and improvements 53,213 49,064 Equipment and furniture 38,691 36,111 Total cost 104,415 97,477 Less accumulated depreciation 44,261 39,380 Land, premises and equipment, net $ 60,154 $ 58,097 The Company had land, premises and equipment of $100,000 held for sale and included in other assets as of December 31, 2019 and 2018. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill There have been no changes in the $5.0 million carrying amount of goodwill since 2002. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 of the impairment test includes the determination of the carrying value of our single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. The Company determined the fair value of our reporting unit and compared it to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, the Company is required to perform a second step to the impairment test. Our annual impairment analysis as of May 31, 2019, indicated that the Step 2 analysis was not necessary. Circumstances did not substantially change during the second half of the year such that the Company did not believe it was necessary to do an additional impairment analysis. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
DEPOSITS | |
DEPOSITS | NOTE 8 – DEPOSITS The following table details total deposits as of December 31, 2019 and 2018: (dollars in thousands) 2019 2018 Non-interest bearing demand deposits $ 983,307 $ 946,838 Savings and transaction accounts: Savings deposits 234,508 247,903 Interest bearing demand deposits 1,723,937 1,429,570 Time deposits: Other time deposits 281,934 273,533 Deposits of $100,000 to $250,000 291,805 268,058 Deposits of $250,000 or more 618,328 878,163 Total deposits $ 4,133,819 $ 4,044,065 NOTE 8 – DEPOSITS (continued) At December 31, 2019, the scheduled maturities of time deposits were as follows: (dollars in thousands) Amount Maturing in 2020 $ 895,601 Maturing in 2021 206,303 Maturing in 2022 35,181 Maturing in 2023 23,143 Maturing in 2024 29,747 Thereafter 2,092 Total time deposits $ 1,192,067 During 2019 the Bank entered into agreements with Promontory Interfinancial Network relative to their Insured Cash Sweep One-Way Buy program. As of December 31, 2019, the total amount available to the Bank via this program was $200.0 million, of which, $75.1 million was drawn. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
BORROWINGS | |
BORROWINGS | NOTE 9 – BORROWINGS For the years ending December 31, advances from the Federal Home Loan Bank were as follows: (dollars in thousands) 2019 2018 Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020 $ 170,000 $ 0 Federal Home Loan Bank of Indianapolis Advance, 2.52%, Due January 7, 2019 0 170,000 Total $ 170,000 $ 170,000 The outstanding FHLB advance at December 31, 2019 of $170.0 million is a fixed rate advance and may not be prepaid without penalty. All FHLB notes require monthly interest payments and are secured by residential real estate loans and securities with a carrying value of $453.2 million and $412.9 million at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, the Company owned $10.4 million of FHLB stock, which also secures debts owed to the FHLB. The Company is authorized by the Board to borrow up to $800.0 million at the FHLB, but availability is limited to $115.5 million based on collateral and outstanding borrowings. Federal Reserve Discount Window borrowings were secured by commercial loans with a carrying value of $446.9 million and $381.5 million as of December 31, 2019 and 2018. The Company had a borrowing capacity of $339.5 million and $286.5 million at the Federal Reserve Bank as of December 31, 2019 and 2018, respectively. There were no borrowings outstanding at the Federal Reserve Bank at December 31, 2019 and 2018. The Company had $325.0 million of availability in federal funds lines with twelve correspondent banks, none of which was drawn on as of December 31, 2019 and 2018. The Bank is also a member of the American Financial Exchange (AFX) where overnight fed funds purchased can be obtained from other banks on the Exchange that have approved the Bank for an unsecured, overnight line. These funds are only available if the approving banks have an ‘offer’ out to sell that day. As of December 31, 2019 and 2018, the total amount approved for the Bank via AFX banks was On August 2, 2019 the Company entered into an unsecured revolving credit agreement with another financial institution allowing the Company to borrow up to $30.0 million. Funds provided under the agreement may be used to repurchase shares of the Company’s common stock under the share repurchase program, which was reauthorized by the Company’s board of directors on January 14, 2020. The credit agreement includes a negative pledge agreement whereby the Company agrees not to pledge or otherwise encumber the stock of the Bank. The credit agreement has a one year term which may be amended, extended, modified or renewed. There was no amount drawn on the line as of December 31, 2019. NOTE 9 – BORROWINGS (continued) Securities sold under agreements to repurchase (“repo accounts”) represent collateralized borrowings with customers located primarily within the Company’s service area. The Bank discontinued offering this product in early 2019. All repo accounts at December 31, 2018 matured on demand. Repo accounts are not covered by federal deposit insurance and are secured by securities owned. The following is a schedule, at the end of the year indicated, of statistical information relating to securities sold under agreement to repurchase secured by either U.S. government agency securities or mortgage-backed securities classified as securities available-for-sale. There were no other categories of short-term borrowings for which the average balance outstanding during the period was 30 percent or more of stockholders' equity at the end of each period. (dollars in thousands) 2019 2018 2017 Securities sold under agreements to repurchase Outstanding at year end $ 0 $ 75,555 $ 70,652 Approximate average interest rate at year end 0.00 % 0.74 % 0.46 % Highest amount outstanding as of any month end during the year $ 72,814 $ 106,239 $ 77,886 Approximate average outstanding during the year 15,104 86,874 63,379 Approximate average interest rate during the year 0.86 % 0.58 % 0.39 % |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2019 | |
SUBORDINATED DEBENTURES | |
SUBORDINATED DEBENTURES | NOTE 10 – SUBORDINATED DEBENTURES Lakeland Statutory Trust II, a trust formed by the Company (the “Trust”), issued $30.0 million of floating rate trust preferred securities on October 1, 2003 as part of a privately placed offering of such securities. The Company issued $30.9 million of subordinated debentures to the Trust in exchange for the proceeds of the Trust. The Company held a controlling interest in the Trust, but did not have a majority of voting rights; therefore the Trust was considered a variable interest entity. The Company was not considered the primary beneficiary of this Trust; therefore, the Trust was not consolidated in the Company’s financial statements, but rather the subordinated debentures was shown as a liability. The Company’s investment in the common stock of the Trust was included in other assets and was $0 and $928,000 as of December 31, 2019 and 2018, respectively. Subject to the Company having received prior approval of the Federal Reserve, the Company was able to redeem the subordinated debentures, in whole or in part, but in all cases in a principal amount with integral multiples of $1,000, on any interest payment date on or after October 1, 2008 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures were required to be redeemed no later than 2033. These securities were considered Tier I capital (with certain limitations applicable) under current regulatory guidelines and, subject to certain limitations, were also considered Tier 1 capital under Basel III. On December 31, 2019, the Company redeemed $30.0 million of trust preferred securities of the Trust. The trust preferred securities were redeemed, along with $928,000 in common securities issued by the Trust and held by the Company, as a result of the concurrent redemption of 100% of the Company’s junior subordinated debentures due 2033 and held by the Trust, which underlie the trust preferred securities. The redemption price for the junior subordinated debentures was equal to 100% of the principal amount plus accrued interest up to, but not including, the redemption date. The proceeds from the redemption of the junior subordinated debentures were simultaneously applied to redeem all of the outstanding common securities and the outstanding trust preferred securities at a price of 100% of the aggregate liquidation amount of the trust preferred securities plus accumulated but unpaid distributions up to, but not including, the redemption date. The redemption was pursuant to the optional redemption provisions of the underlying indenture. The floating rate of the trust preferred securities and subordinated debentures was equal to the three-month London Interbank Offered Rate (“LIBOR”) plus 3.05%, which was 5.85% at December 31, 2018. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER BENEFIT PLANS | |
PENSION AND OTHER POSTRETIREMENT PLANS | NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS In April 2000, the Lakeland Financial Corporation Pension Plan was frozen. The Company also maintains a Supplemental Executive Retirement Plan (“SERP”) for select officers that was established as a funded, non-qualified deferred compensation plan. Currently, six retired officers are the only participants in the SERP. The measurement date for both the pension plan and SERP is December 31, 2019 and 2018. Information as to the Company’s employee benefit plans at December 31, 2019 and 2018 is as follows: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2019 2018 Change in benefit obligation: Beginning benefit obligation $ 2,118 $ 2,862 $ 924 $ 1,086 Interest cost 87 93 37 34 Actuarial (gain) loss 631 (325) 164 (62) Benefits paid (121) (512) (134) (134) Ending benefit obligation 2,715 2,118 991 924 Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value: Beginning plan assets 2,151 2,356 885 1,047 Actual return 415 (61) 163 (28) Employer contribution 27 368 0 0 Benefits paid (121) (512) (134) (134) Ending plan assets 2,472 2,151 914 885 Funded status at end of year $ (243) $ 33 $ (77) $ (39) Amounts recognized in the consolidated balance sheets consist of: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2019 2018 Funded status included in other liabilities $ (243) $ 33 $ (77) $ (39) Amounts recognized in accumulated other comprehensive income (loss) consist of: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2019 2018 Net actuarial loss $ 1,464 $ 1,242 $ 597 $ 615 The accumulated benefit obligation for the pension plan was $2.7 million and $2.1 million for December 31, 2019 and 2018, respectively. The accumulated benefit obligation for the SERP was $1.0 million and $900,000 for December 31, 2019 and 2018, respectively. NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued) Net period benefit cost and other amounts recognized in other comprehensive income (loss) include the following: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2017 2019 2018 2017 Net pension expense: Service cost $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Interest cost 87 93 104 37 34 40 Expected return on plan assets (137) (138) (143) (55) (61) (63) Recognized net actuarial loss 132 193 185 73 73 80 Settlement cost 0 224 0 0 0 0 Net pension expense $ 82 $ 372 $ 146 $ 55 $ 46 $ 57 Net (gain) loss $ 353 $ (296) $ (36) $ 56 $ 27 $ (61) Amortization of net loss (132) (193) (185) (73) (73) (80) Total recognized in other comprehensive income (loss) 221 (489) (221) (17) (46) (141) Total recognized in net pension expense and other comprehensive income (loss) $ 303 $ (117) $ (75) $ 38 $ 0 $ (84) The estimated net loss (gain) for the defined benefit pension plan and SERP that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $172,000 for the pension plan and $80,000 for the SERP. The settlement costs in 2018 were related to participants taking lump sum distributions from the pension plan during those years. For 2019, 2018 and 2017, the assumed form of payment elected by active participants upon retirement was a lump sum to reflect participant trends. The lump sum assumed interest rates, below, for December 31, 2019, 2018 and 2017 reflect the mortality table in effect for 2019, 2018 and 2017, respectively. For 2019, the mortality assumption was changed to the PRI-2012 White Collar Mortality Table, with full generational Projection Scale MP-2019 as of December 31, 2019, to reflect improved mortality expectations. For 2018, the mortality assumption was changed to the RP-2014 Mortality Table, adjusted to 2006, with full generational Projection Scale MP-2018 as of December 31, 2018, to reflect improved mortality expectations. For 2017, the mortality assumption was changed to the RP-2014 Mortality Table, adjusted to 2006, with full generational Projection Scale MP-2017 as of December 31, 2017, to reflect improved mortality expectations. Pension Benefits SERP Benefits 2019 2018 2017 2019 2018 2017 The following assumptions were used in calculating the net benefit obligation: Weighted average discount rate 2.98 % 4.08 % 3.46 % 2.98 % 4.08 % 3.46 % Rate of increase in future compensation N/A N/A N/A N/A N/A N/A Lump sum assumed interest rates First 5 years 2.01 % 3.33 % 2.05 % N/A N/A N/A Next 15 years 3.06 % 4.39 % 3.61 % N/A N/A N/A All future years 3.65 % 4.72 % 4.27 % N/A N/A N/A The following assumptions were used in calculating the net pension expense: Weighted average discount rate 4.08 % 3.46 % 3.86 % 4.08 % 3.46 % 3.86 % Rate of increase in future compensation N/A N/A N/A N/A N/A N/A Expected long-term rate of return 6.50 % 6.50 % 6.50 % 6.50 % 6.50 % 6.50 % NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued) Pension Plan and SERP Assets The Company's investment strategies are to invest in a prudent manner for the purpose of providing benefits to participants in the pension plan and the SERP. The investment strategies are targeted to maximize the total return of the portfolio net of inflation, spending and expenses. Risk is controlled through diversification of asset types and investments in domestic and international equities and fixed income securities. The target allocations for plan assets are shown in the tables below. Equity securities primarily include investments in common stocks. Debt securities include government agency and commercial bonds. Other investments consist of money market mutual funds. The weighted average expected long-term rate of return on pension plan and SERP assets is developed in consultation with the plans actuary. It is primarily based upon industry trends and consensus rates of return which are then adjusted to reflect the specific asset allocations and historical rates of return of the Company's plan assets. The following assumptions were used in determining the total long term rate of return: equity securities were assumed to have a long-term rate of return of approximately 8.85% and debt securities were assumed to have a long-term rate of return of approximately 3.0%. These rates of return were adjusted to reflect an approximate target allocation of 60% equity securities and 40% debt securities with a small downward adjustment due to investments in the “Other” category, which consist of low yielding money market mutual funds. Certain asset types and investment strategies are prohibited including, the investment in commodities, options, futures, short sales, margin transactions and non-marketable securities. The Company's pension plan asset allocation at year-end 2019 and 2018, target allocation for 2020, and expected long-term rate of return by asset category are as follows: Percentage of Plan Weighted Target Assets Average Expected Allocation at Year End Long-Term Rate Asset Category 2020 2019 2018 of Return Equity securities 55-65 % 61 % 59 % 8.85 % Debt securities 35-45 % 36 % 40 % 3.00 % Other 5-10 % 3 % 1 % 0.10 % Total 100 % 100 % 6.50 % The Company’s SERP plan asset allocation at year-end 2019 and 2018, target allocation for 2020, and expected long-term rate of return by asset category are as follows: Percentage of Plan Weighted Target Assets Average Expected Allocation at Year End Long-Term Rate Asset Category 2020 2019 2018 of Return Equity securities 55-65 % 65 % 58 % 8.85 % Debt securities 35-45 % 34 % 40 % 3.00 % Other 5-10 % 1 % 2 % 0.10 % Total 100 % 100 % 6.50 % NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued) Fair Value of Pension Plan and SERP Assets Fair value is the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. Also a fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Equity and debt securities: The fair values of securities are determined on a recurring basis by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or pricing models, which utilize significant observable inputs such as matrix pricing. This is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair values of the Company’s pension plan assets at December 31, 2019, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 912 $ 912 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 115 115 0 0 Equity securities - US small cap stock mutual funds 119 119 0 0 Equity securities - international stock mutual funds 257 257 0 0 Equity securities - emerging markets stock mutual funds 111 111 0 0 Debt securities - intermediate term bond mutual funds 402 402 0 0 Debt securities - short term bond mutual funds 480 480 0 0 Cash - money market account 74 74 0 0 Total $ 2,470 $ 2,470 $ 0 $ 0 Total pension plan assets available for benefits also include $2,000 in accrued interest and dividend income. The fair values of the Company’s pension plan assets at December 31, 2018, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2 ) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 784 $ 784 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 107 107 0 0 Equity securities - US small cap stock mutual funds 114 114 0 0 Equity securities - international stock mutual funds 225 225 0 0 Equity securities - emerging markets stock mutual funds 49 49 0 0 Debt securities - intermediate term bond mutual funds 309 309 0 0 Debt securities - short term bond mutual funds 543 543 0 0 Cash - money market account 17 17 0 0 Total $ 2,148 $ 2,148 $ 0 $ 0 NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued) Total pension plan assets available for benefits also include $3,000 in accrued interest and dividend income. There were no Level 2 or 3 securities during either year. The fair values of the Company’s SERP assets at December 31, 2019, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2 ) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 353 $ 353 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 46 46 0 0 Equity securities - US small cap stock mutual funds 47 47 0 0 Equity securities - emerging markets stock mutual funds 43 43 0 0 Equity securities - international stock mutual funds 100 100 0 0 Debt securities - intermediate term bond mutual funds 156 156 0 0 Debt securities - short term bond mutual funds 155 155 0 0 Cash - money market account 13 13 0 0 Total $ 913 $ 913 $ 0 $ 0 Total SERP plan assets available for benefits also include $1,000 in accrued interest and dividend income. The fair values of the Company's SERP assets at December 31, 2018, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 322 $ 322 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 43 43 0 0 Equity securities - US small cap stock mutual funds 43 43 0 0 Equity securities - emerging markets stock mutual funds 18 18 0 0 Equity securities - international stock mutual funds 89 89 0 0 Debt securities - intermediate term bond mutual funds 123 123 0 0 Debt securities - short term bond mutual funds 231 231 0 0 Cash - money market account 15 15 0 0 Total $ 884 $ 884 $ 0 $ 0 Total SERP plan assets available for benefits also include $1,000 in accrued interest and dividend income. There were no Level 2 or 3 securities during either year. Contributions The Company does not expect to contribute to its pension or SERP plans in 2020. NOTE 11 – PENSION AND OTHER POSTRETIREMENT PLANS (continued) Estimated Future Benefit Payments The following benefit payments are expected to be paid over the next ten years: Pension SERP Plan Year Benefits Benefits (dollars in thousands) 2020 $ 259 $ 132 2021 220 126 2022 228 120 2023 205 112 2024 202 103 2025-2029 870 364 |
OTHER BENEFIT PLANS
OTHER BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER BENEFIT PLANS | |
OTHER BENEFIT PLANS | NOTE 12 – OTHER BENEFIT PLANS 401(k) Plan The Company maintains a 401(k) profit sharing plan for all employees meeting certain age and service requirements. The 401(k) plan allows employees to contribute up to the maximum amount allowable under the Internal Revenue Code, which are matched based upon the percentage of budgeted net income earned during the year on the first 6% of the compensation contributed. The expense recognized from matching was $1.8 million, $1.8 million and $1.7 million in 2019, 2018 and 2017, respectively. Deferred Compensation Plan Effective January 1, 2004, the Company adopted the Lake City Bank Deferred Compensation Plan. The purpose of the deferred compensation plan is to extend full 401(k) type retirement benefits to certain individuals without regard to statutory limitations under tax qualified plans. A liability is accrued by the Company for its obligation under this plan. The (income) expense recognized was $461,000, ($31,000) and $456,000 during the years ended December 31, 2019, 2018 and 2017, respectively. This resulted in a deferred compensation liability of $4.2 million and $3.3 million as of year-end 2019 and 2018, respectively. The deferred compensation plan is funded solely by participant contributions and does not receive a Company match. Employee Agreements Under employment agreements with certain executives, certain events leading to separation from the Company could result in cash payments totaling $5.3 million as of December 31, 2019. On December 31, 2019, no amounts were accrued on these contingent obligations. Directors’ Deferred Compensation and Cash Plans The Company maintains a directors’ deferred compensation plan and a cash plan. The amount owed to directors for fees under the deferred directors’ compensation and cash plans as of December 31, 2019 and 2018 was $4.4 million and $4.0 million, respectively. The related expense for the deferred directors’ compensation and cash plans for the years ended December 31, 2019, 2018 and 2017 was $515,000, $486,000 and $491,000, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | NOTE 13 – INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (“Act”) was enacted into law and, among other items, reduces the corporate income tax rate from 35% to 21%, effective January 1, 2018. The enactment of this law resulted in a lower federal income tax rate resulting in a reduction of the benefit provided by the Company’s existing deferred tax assets. In accordance with ASC Topic 740, “Income Taxes”, the Company revalued its net deferred tax asset based on facts and circumstances available for the reporting period ending December 31, 2017 in which the Act was enacted and through the time the Company issues its financial statements for that reporting period. As a result of this revaluation, the Company recorded an income tax provision of $4.1 million for the period ending December 31, 2017. In addition, through the preparation the Company’s 2017 corporate tax return and the completion of cost segregation studies on new construction projects, the Company recognized a tax benefit of $408,000 for the year ending December 31, 2018. Income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following: (dollars in thousands) 2019 2018 2017 Current federal $ 19,430 $ 16,871 $ 27,064 Deferred federal (408) 707 (199) Revalue deferred taxes due to tax reform 0 (408) 4,137 Current state 1,394 1,462 1,559 Deferred state (78) (99) (257) Total income tax expense $ 20,338 $ 18,533 $ 32,304 The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% for 2019 and 2018 and 35% for 2017 to income before income taxes were as follows: (dollars in thousands) 2019 2018 2017 Income taxes at statutory federal rate of 21% (2019 and 2018) and 35% (2017) $ 22,551 $ 20,778 $ 31,372 Increase (decrease) in taxes resulting from: Tax exempt income (1,682) (1,434) (2,015) Nondeductible expense 194 165 193 State income tax, net of federal tax effect 1,040 1,077 846 Captive insurance premium income (310) (292) (378) Tax credits (548) (412) (326) Bank owned life insurance (573) (303) (619) Long - term incentive plan (421) (641) (854) Revaluation deferred tax asset at 21% rate 0 (408) 4,137 Other 87 3 (52) Total income tax expense $ 20,338 $ 18,533 $ 32,304 NOTE 13 – INCOME TAXES (continued) The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2019 and 2018 consisted of the following: (dollars in thousands) 2019 2018 Deferred tax assets: Bad debts $ 12,945 $ 12,478 Pension and deferred compensation liability 1,505 1,188 Nonaccrual loan interest 1,104 937 Long-term incentive plan 2,281 2,357 Lease liability 1,303 0 Other 510 506 19,648 17,466 Deferred tax liabilities: Depreciation 4,741 4,583 Loan servicing rights 1,019 877 State taxes 464 447 Intangible assets 1,270 1,280 REIT spillover dividend 1,401 1,231 Prepaid expenses 795 786 Lease Right of Use 1,303 0 Other 382 475 11,375 9,679 Valuation allowance 0 0 Net deferred tax asset $ 8,273 $ 7,787 In addition to the net deferred tax assets included above, the deferred income tax asset (liability) allocated to the unrealized net gain (loss) on securities available-for-sale included in equity was ($3.6) million and $1.3 million for 2019 and 2018, respectively. The deferred income tax asset allocated to the pension plan and SERP included in equity was $512,000 and $462,000 for 2019 and 2018, respectively. The Company evaluated its deferred tax asset at year end 2019 and has concluded that it is more likely than not that it will be realized. The Company expects to have taxable income in the future such that the deferred tax asset will be realized. Therefore, no valuation allowance is required. Unrecognized Tax Benefits The Company did not have any unrecognized tax benefits at December 31, 2019 or 2018. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No interest or penalties were recorded in the income statement and no amount was accrued for interest and penalties for the period ending December 31, 2019, 2018 and 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 taxes accounts. The Company and its subsidiaries file a consolidated U.S. federal tax return and a combined unitary return in the States of Indiana and Michigan. These returns are subject to examinations by authorities for all years after 2015. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 14 – RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates as of December 31, 2019 and 2018 were as follows: (dollars in thousands) 2019 2018 Beginning balance $ 83,546 $ 105,242 New loans and advances 55,465 94,542 Effect of changes in related parties (5,967) 0 Repayments and renewals (49,064) (116,238) Ending balance $ 83,980 $ 83,546 Deposits from principal officers, directors, and their affiliates at year-end 2019 were $33.3 million and there were no securities sold under agreements to repurchase. Deposits from principal officers, directors, and their affiliates at year-end 2018 were $12.1 million plus an additional $1.9 million included in securities sold under agreements to repurchase. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 15 – STOCK BASED COMPENSATION Effective April 8, 2008, the Company adopted the Lakeland Financial Corporation 2008 Equity Incentive Plan (the “2008 Plan”), which was approved by the Company’s stockholders. At its inception there were 1,125,000 shares of common stock reserved for grants of stock options, stock appreciation rights, stock awards and cash incentive awards to employees of the Company, its subsidiaries and Board. Effective April 9, 2013, the Company adopted the Lakeland Financial Corporation 2013 Equity Incentive Plan (the “2013 Plan”), which was also approved by the Company’s stockholders. At its inception the remaining shares of common stock available to grant under the 2008 Plan of 435,867 were transferred to the 2013 Plan and reserved for grants of stock options, stock appreciation rights, stock awards and cash incentive awards to employees of the Company, its subsidiaries and Board. Non-vested shares from the 2008 Plan that are unused at vesting are added to the shares available to grant of the 2013 Plan. Effective April 12, 2017, the Company adopted the Lakeland Financial Corporation 2017 Equity Incentive Plan (the “2017 Plan”), which was also approved by the Company’s stockholders. At its inception there were 1,000,000 shares of common stock reserved for grants of stock options, stock appreciation rights, stock awards and cash incentive awards to employees of the Company, its subsidiaries and Board. As of December 31, 2019, 684,926 shares were available for future grants. Certain stock awards provide for accelerated vesting if there is a change in control. The Company has a policy of issuing new shares to satisfy exercises of stock awards. Included in net income for the years ended December 31, 2019, 2018 and 2017 was employee stock compensation expense of $4.2 million, $5.6 million and $5.7 million, and a related tax benefit of $1.1 million, $1.5 million and $2.2 million, respectively. Stock Options The equity incentive plan requires that the exercise price for options be the market price on the date the options are granted. The maximum option term is ten years and the awards usually vest over three years. The fair value of each stock option is estimated with the Black Scholes pricing model, using the following weighted-average assumptions as of the grant date for stock options granted during the years presented. Expected volatilities are based on historical volatility of the Company’s stock over the immediately preceding expected life period, as well as other factors known on the grant date that would have a significant effect on the stock price during the expected life period. The expected stock option life used is the historical option life of the similar employee base or Board. The turnover rate is based on historical data of the similar employee base as a group and the Board as a group. The risk-free interest rate is the Treasury rate on the date of grant corresponding to the expected life period of the stock option. There were no stock option grants in 2019, 2018 or 2017. Also, there were no modifications of stock option awards during the years ended December 31, 2019, 2018 and 2017. As of December 31, 2019, there was no unrecognized compensation cost related to non-vested stock options granted under the plan. NOTE 15 – STOCK BASED COMPENSATION (continued) All outstanding stock options were exercised during the year ended December 31, 2018. The following table presents information on stock awards exercised for the years ended December 31, 2019, 2018, and 2017. (dollars in thousands) 2019 2018 2017 Total intrinsic value $ 0 $ 243 $ 44 Cash received 0 118 24 Actual tax benefit realized for tax deductions 0 0 0 Restricted Stock Awards and Units The fair value of restricted stock awards and units is the closing price of the Company’s common stock on the date of grant adjusted for the present value of expected dividends. The restricted stock awards fully vest based upon a schedule determined at the grant date, with the exception of 15,600 shares included as vested, below, which vested on the grant date. A summary of the changes in the Company’s non-vested shares for the year follows: Weighted-Average Grant-Date Nonvested Shares Shares Fair Value Nonvested at January 1, 2019 1,000 $ 48.14 Granted 19,100 44.59 Vested (16,600) 44.56 Nonvested at December 31, 2019 3,500 $ 45.70 As of December 31, 2019, there was $135,000 of total unrecognized compensation cost related to non-vested shares granted under the plan. The cost is expected to be recognized over a weighted period of 1.01 years. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was $737,000, $726,000 and $1.2 million, respectively. Performance Stock Units The fair value of stock awards is the closing price of the Company’s common stock on the date of grant adjusted for the present value of expected dividends. The expected dividend rate is assumed to be the most recent dividend rate declared by the Board on the grant date. The grant date fair value of stock awards is assumed at the target payout rate. The stock awards fully vest on the third anniversary of the grant date. The 2019-2021, 2018-2020 and 2017-2019 Long-Term Incentive Plans must be paid in stock and have performance conditions which include revenue growth, diluted earnings per share growth and average return on beginning equity. Shares granted below include the number of shares assumed granted based on actual performance criteria of the 2019-2021, 2018-2020 and 2017-2019 Long-Term Incentive Plans at December 31, 2019. Weighted-Average Grant-Date Nonvested Shares Shares Fair Value Nonvested at January 1, 2019 368,503 $ 39.83 Granted 39,715 41.78 Vested (126,672) 29.23 Forfeited (4,461) 45.42 Nonvested at December 31, 2019 277,085 $ 44.86 As of December 31, 2019, there was $3.4 million of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted period of 1.55 years. The total fair value of shares vested during the year ended December 31, 2019, 2018 and 2017 was $5.7 million, $6.6 million and $5.1 million, respectively. During the years ended December 31, 2019, 2018 and 2017, 126,672, 137,472 and 112,055 shares vested, respectively. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | NOTE 16 – CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS The Company became a financial holding company effective May 30, 2012 and is now required to be well capitalized under the applicable regulatory guidelines. The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet certain heightened minimum capital requirements can initiate certain mandatory, and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. The capital adequacy requirements were heightened by the Basel III Rules, which went into effect on January 1, 2015 with a phase-in period for certain aspects of the rule through 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 0.000% for 2015 to 2.50% by 2019. The capital conservation buffer for 2019 and 2018 was 2.50% and 1.875%, respectively. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. The quantitative measures established by regulation to ensure capital adequacy that were in effect on December 31, 2019 and 2018, require the Company and the Bank to maintain minimum capital amounts and ratios (set forth in the following table) of Total, Tier I and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulation), and of Tier I capital (as defined in the regulation) to average assets (as defined). Management believes, as of the years ended December 31, 2019 and 2018, that the Company and the Bank met all capital adequacy requirements to which they are subject. NOTE 16 – CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (continued) As of December 31, 2019, the most recent notification from the federal regulators categorized the Company and the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Company and the Bank must maintain minimum Total risk-based capital ratios, Tier I risk-based capital ratios and Tier I leverage capital ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Company and the Bank’s category. Minimum Required to Minimum Required For Capital Adequacy Be Well Capitalized For Capital Purposes Plus Capital Under Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total Capital (to Risk Weighted Assets) Consolidated $ 631,723 14.36 % $ 351,894 8.00 % $ 461,862 N/A N/A N/A Bank $ 616,386 14.04 % $ 351,227 8.00 % $ 460,985 10.50 % $ 439,034 10.00 % Tier I Capital (to Risk Weighted Assets) Consolidated $ 580,982 13.21 % $ 263,921 6.00 % $ 373,887 N/A N/A N/A Bank $ 565,645 12.88 % $ 263,420 6.00 % $ 373,179 8.50 % $ 351,227 8.00 % Common Equity Tier 1 (CET1) Consolidated $ 580,982 13.21 % $ 197,941 4.50 % $ 307,908 N/A N/A N/A Bank $ 565,645 12.88 % $ 197,565 4.50 % $ 307,324 7.00 % $ 285,372 6.50 % Tier I Capital (to Average Assets) Consolidated $ 580,982 11.67 % $ 199,099 4.00 % $ 199,099 N/A N/A N/A Bank $ 565,645 11.43 % $ 197,923 4.00 % $ 197,923 4.00 % $ 247,404 5.00 % As of December 31, 2018: Total Capital (to Risk Weighted Assets) Consolidated $ 601,379 14.20 % $ 338,690 8.00 % $ 418,070 N/A N/A N/A Bank $ 583,206 13.80 % $ 338,098 8.00 % $ 417,340 9.875 % $ 422,623 10.00 % Tier I Capital (to Risk Weighted Assets) Consolidated $ 552,836 13.06 % $ 254,017 6.00 % $ 333,398 N/A N/A N/A Bank $ 534,664 12.65 % $ 253,574 6.00 % $ 332,815 7.875 % $ 338,098 8.00 % Common Equity Tier 1 (CET1) Consolidated $ 522,836 12.35 % $ 190,513 4.50 % $ 269,893 N/A N/A N/A Bank $ 534,664 12.65 % $ 190,180 4.50 % $ 269,422 6.375 % $ 274,705 6.50 % Tier I Capital (to Average Assets) Consolidated $ 552,836 11.44 % $ 193,305 4.00 % $ 193,305 N/A N/A N/A Bank $ 534,664 11.06 % $ 193,312 4.00 % $ 193,312 4.00 % $ 241,639 5.00 % The Bank is required to obtain the approval of the Indiana Department of Financial Institutions for the payment of any dividend if the total amount of all dividends declared by the Bank during the calendar year, including the proposed dividend, would exceed the sum of the retained net income for the year-to-date combined with the retained net income for the previous two years. Indiana law defines “retained net income” to mean the net income of a specified period, calculated under the consolidated report of income instructions, less the total amount of all dividends declared for the specified period. As of December 31, 2019, approximately $89.1 million was available to be paid as dividends to the Company by the Bank. The payment of dividends by any financial institution or its holding company is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. As described above, the Bank exceeded its minimum capital requirements under applicable guidelines as of December 31, 2019. Notwithstanding the availability of funds for dividends however, the FDIC may prohibit the payment of any dividends by the Bank if the FDIC determines such payment would constitute an unsafe or unsound practice. |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OFFSETTING ASSETS AND LIABILITIES | |
OFFSETTING ASSETS AND LIABILITIES | NOTE 17 – OFFSETTING ASSETS AND LIABILITIES The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at December 31, 2019 and 2018. December 31, 2019 Gross Gross Amounts Net Amounts Gross Amounts Not Amounts of Offset in the presented in Offset in the Statement Recognized Statement of the Statement of Financial Position Assets/ Financial of Financial Financial Cash Collateral Net (dollars in thousands) Liabilities Position Position Instruments Position Amount Assets Interest Rate Swap Derivatives $ 7,263 $ 0 $ 7,263 $ 0 $ 0 $ 7,263 Total Assets $ 7,263 $ 0 $ 7,263 $ 0 $ 0 $ 7,263 Liabilities Interest Rate Swap Derivatives $ 7,860 $ 0 $ 7,860 $ 0 $ (7,560) $ 300 Repurchase Agreements 0 0 0 0 0 0 Total Liabilities $ 7,860 $ 0 $ 7,860 $ 0 $ (7,560) $ 300 December 31, 2018 Gross Gross Amounts Net Amounts Gross Amounts Not Amounts of Offset in the presented in Offset in the Statement Recognized Statement of the Statement of Financial Position Assets/ Financial of Financial Financial Cash Collateral Net (dollars in thousands) Liabilities Position Position Instruments Position Amount Assets Interest Rate Swap Derivatives $ 3,869 $ 0 $ 3,869 $ 0 $ (760) $ 3,109 Total Assets $ 3,869 $ 0 $ 3,869 $ 0 $ (760) $ 3,109 Liabilities Interest Rate Swap Derivatives $ 4,025 $ 0 $ 4,025 $ 0 $ (560) $ 3,465 Repurchase Agreements 75,555 0 75,555 (75,555) 0 0 Total Liabilities $ 79,580 $ 0 $ 79,580 $ (75,555) $ (560) $ 3,465 If an event of default occurs causing an early termination of an interest rate swap derivative, any early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. |
COMMITMENTS, OFF-BALANCE SHEET
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | |
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | NOTE 18 – COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES During the normal course of business, the Company becomes a party to financial instruments with off-balance sheet risk in order to meet the financing needs of its customers. These financial instruments include commitments to make loans and open-ended revolving lines of credit. Amounts as of the years ended December 31, 2019 and 2018, were as follows: 2019 2018 Fixed Variable Fixed Variable (dollars in thousands) Rate Rate Rate Rate Commercial loan lines of credit $ 39,104 $ 1,451,704 $ 63,625 $ 1,337,437 Commercial letters of credit 0 0 0 3,245 Standby letters of credit 0 70,932 0 81,512 Real estate mortgage loans 4,448 1,488 2,811 2,881 Real estate construction mortgage loans 478 2,139 400 2,189 Home equity mortgage open-ended revolving lines 0 247,562 0 232,362 Consumer loan open-ended revolving lines 180 17,116 215 14,468 Total $ 44,210 $ 1,790,941 $ 67,051 $ 1,674,094 The index on variable rate commercial loan commitments is principally the national prime rate. Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2019 and 2018, were as follows: 2019 2018 Fixed Variable Fixed Variable Rate Rate Rate Rate Commercial loan 0.75 - 14.50 % 2.65 - 9.25 % 0.75-14.50 % 2.65-10.00 % Real estate mortgage loan 3.13 - 4.00 % 3.75 - 4.25 % 3.75-6.13 % 3.75-11.00 % Consumer loan open-ended revolving line 15.00 % 3.88 - 15.00 % 15.00 % 3.88-15.00 % Commitments, excluding open-ended revolving lines, generally have fixed expiration dates of one year or less. Open-ended revolving lines are monitored for proper performance and compliance on a monthly basis. Since many commitments expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company follows the same credit policy (including requiring collateral, if deemed appropriate) to make such commitments as it follows for those loans that are recorded in its financial statements. The Company’s exposure to credit losses in the event of nonperformance is represented by the contractual amount of the commitments. Management does not expect any significant losses as a result of these commitments. |
PARENT COMPANY STATEMENTS
PARENT COMPANY STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY STATEMENTS | |
PARENT COMPANY STATEMENTS | NOTE 19 – PARENT COMPANY STATEMENTS The Company operates primarily in the banking industry, which accounts for substantially all of its revenues, operating income and assets. Presented below are parent only financial statements: CONDENSED BALANCE SHEETS December 31, (dollars in thousands) 2019 2018 ASSETS Deposits with Lake City Bank $ 1,762 $ 1,283 Deposits with other depository institutions 2,104 7,613 Cash 3,866 8,896 Investments in banking subsidiary 582,674 533,442 Investments in other subsidiaries 3,276 3,992 Other assets 8,457 6,468 Total assets $ 598,273 $ 552,798 LIABILITIES Dividends payable and other liabilities $ 262 $ 255 Subordinated debt 0 30,928 STOCKHOLDERS’ EQUITY 598,011 521,615 Total liabilities and stockholders’ equity $ 598,273 $ 552,798 NOTE 19 – PARENT COMPANY STATEMENTS (continued) CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (dollars in thousands) 2019 2018 2017 Dividends from Lake City Bank $ 57,842 $ 27,933 $ 21,822 Dividends from non-bank subsidiaries 1,302 1,010 1,030 Other income 155 171 57 Interest expense on subordinated debt (1,720) (1,643) (1,349) Miscellaneous expense (5,321) (6,422) (6,491) INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 52,258 21,049 15,069 Income tax benefit 2,256 2,795 2,688 INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 54,514 23,844 17,757 Equity in undistributed income of subsidiaries 32,533 56,567 39,573 NET INCOME $ 87,047 $ 80,411 $ 57,330 COMPREHENSIVE INCOME $ 105,297 $ 75,131 $ 59,047 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 87,047 $ 80,411 $ 57,330 Adjustments to net cash from operating activities: Equity in undistributed income of subsidiaries (32,533) (56,567) (39,573) Other changes 3,529 7,294 3,586 Net cash from operating activities 58,043 31,138 21,343 Cash flows from financing activities Repayment of long-term debt (30,928) 0 0 Payments related to equity incentive plans (2,109) (2,435) (1,736) Purchase of treasury stock (515) (463) (495) Sales of treasury stock 118 115 0 Dividends paid (29,639) (25,278) (21,396) Cash flows from financing activities (63,073) (28,061) (23,627) Net increase (decrease) in cash and cash equivalents (5,030) 3,077 (2,284) Cash and cash equivalents at beginning of the year 8,896 5,819 8,103 Cash and cash equivalents at end of the year $ 3,866 $ 8,896 $ 5,819 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 20 – EARNINGS PER SHARE Following are the factors used in the earnings per share computations: (dollars in thousand except share and per share data) 2019 2018 2017 Basic earnings per common share: Net income $ 87,047 $ 80,411 $ 57,330 Weighted-average common shares outstanding 25,588,404 25,288,533 25,181,208 Basic earnings per common share $ 3.40 $ 3.18 $ 2.28 Diluted earnings per common share: Net income $ 87,047 $ 80,411 $ 57,330 Weighted-average common shares outstanding for basic earnings per common share 25,588,404 25,288,533 25,181,208 Add: Dilutive effect of assumed exercise of warrant 0 225,831 219,273 Add: Dilutive effect of assumed exercises of stock options and awards 170,489 213,467 262,900 Average shares and dilutive potential common shares 25,758,893 25,727,831 25,663,381 Diluted earnings per common share $ 3.38 $ 3.13 $ 2.23 There were no antidilutive stock options for 2019, 2018 and 2017. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 21 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for December 31, 2019 and 2018 all shown net of tax: Unrealized Gains and (Losses) on Defined Available- Benefit for-Sales Pension (dollars in thousands) Securities Items Total Balance at December 31, 2018 $ (4,796) $ (1,395) $ (6,191) Other comprehensive income (loss) before reclassification 18,515 (306) 18,209 Amounts reclassified from accumulated other comprehensive income (loss) (112) 153 41 Net current period other comprehensive income (loss) 18,403 (153) 18,250 Balance at December 31, 2019 $ 13,607 $ (1,548) $ 12,059 Unrealized Gains and (Losses) on Defined Available- Benefit for-Sales Pension (dollars in thousands) Securities Items Total Balance at December 31, 2017 $ 784 $ (1,454) $ (670) Other comprehensive income (loss) before reclassification (5,691) 175 (5,516) Amounts reclassified from accumulated other comprehensive income (loss) 39 197 236 Net current period other comprehensive income (loss) (5,652) 372 (5,280) Adoption of ASU 2018-02 140 (313) (173) Adoption of ASU 2016-01 (68) 0 (68) Balance at December 31, 2018 $ (4,796) $ (1,395) $ (6,191) NOTE 21 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (continued) Reclassifications out of accumulated comprehensive income for the years ended December 31, 2019, 2018 and 2017 are as follows: Details about Amount Affected Line Item Accumulated Other Reclassified From in the Statement Comprehensive Accumulated Other Where Net Income (Loss) Components Comprehensive Income (Loss) Income is Presented 2019 (dollars in thousands) Realized gains and losses on available-for-sale securities $ 142 Net securities gains (losses) Tax effect (30) Income tax expense Subtotal 112 Net of tax Amortization of defined benefit pension items (1) (205) Salaries and employee benefits Tax effect 52 Income tax expense Subtotal (153) Net of tax Total reclassifications for the period $ (41) Net income 2018 (dollars in thousands) Realized gains and losses on available-for-sale securities $ (50) Net securities gains (losses) Tax effect 11 Income tax expense Subtotal (39) Net of tax Amortization of defined benefit pension items (1) (266) Salaries and employee benefits Tax effect 69 Income tax expense Subtotal (197) Net of tax Total reclassifications for the period $ (236) Net income 2017 (dollars in thousands) Realized gains and losses on available-for-sale securities $ 32 Net securities gains (losses) Tax effect (13) Income tax expense Subtotal 19 Net of tax Amortization of defined benefit pension items (1) (265) Salaries and employee benefits Tax effect 104 Income tax expense Subtotal (161) Net of tax Total reclassifications for the period $ (142) Net income (1) Included in the computation of net pension plan expense as more fully discussed in Note 11 – Pension and Other Postretirement Plans. |
SELECTED QUARTERLY DATA (UNAUDI
SELECTED QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
SELECTED QUARTERLY DATA (UNAUDITED) | |
SELECTED QUARTERLY DATA (UNAUDITED) | NOTE 22 – SELECTED QUARTERLY DATA (UNAUDITED) (in thousands except per share data) 4th 3rd 2nd 1st 2019 Quarter Quarter Quarter Quarter Interest income $ 52,312 $ 54,769 $ 54,635 $ 53,494 Interest expense 13,430 15,224 16,224 15,285 Net interest income 38,882 39,545 38,411 38,209 Provision for loan losses 250 1,000 785 1,200 Net interest income after provision 38,632 38,545 37,626 37,009 Noninterest income 11,119 10,765 11,588 11,525 Noninterest expense 22,122 22,737 22,092 22,473 Income tax expense 5,431 5,119 5,409 4,379 Net income $ 22,198 $ 21,454 $ 21,713 $ 21,682 Basic earnings per common share $ 0.86 $ 0.84 $ 0.85 $ 0.85 Diluted earnings per common share $ 0.86 $ 0.83 $ 0.85 $ 0.84 4th 3rd 2nd 1st 2018 Quarter Quarter Quarter Quarter Interest income $ 53,728 $ 50,379 $ 48,795 $ 46,068 Interest expense 14,138 12,454 11,262 9,845 Net interest income 39,590 37,925 37,533 36,223 Provision for loan losses 300 1,100 1,700 3,300 Net interest income after provision 39,290 36,825 35,833 32,923 Noninterest income 10,077 10,624 9,722 9,879 Noninterest expense 22,524 22,200 20,303 21,202 Income tax expense 5,480 4,679 5,110 3,264 Net income $ 21,363 $ 20,570 $ 20,142 $ 18,336 Basic earnings per common share $ 0.84 $ 0.81 $ 0.80 $ 0.73 Diluted earnings per common share $ 0.83 $ 0.80 $ 0.79 $ 0.71 |
WARRANT
WARRANT | 12 Months Ended |
Dec. 31, 2019 | |
WARRANT | |
WARRANT | NOTE 23 – WARRANT On February 27, 2009, the Company entered into a Letter Agreement with the Treasury, pursuant to which the Company issued (i) 56,044 shares of the Company’s Series A Preferred Stock and (ii) the Warrant to purchase 396,538 shares of the Company’s common stock, no par value, for an aggregate purchase price of $56,044,000 in cash. This transaction was conducted in accordance with the CPP. On June 9, 2010, the Company redeemed the Series A Preferred Stock and accreted the remaining unamortized discount on these shares. The Company did not repurchase the Warrant, and the Warrant was sold by Treasury to an independent, third party. The Warrant had a 10-year term and was immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments, equal to $21.20 per share of the common stock (trailing 20-day Lakeland average closing price as of December 17, 2008, which was the last trading day prior to date of receipt of Treasury’s preliminary approval for our participation in the CPP). The Warrant was valued using the Black-Scholes model with the following assumptions: market price of $17.45; exercise price of $21.20; risk-free interest rate of 3.02%; expected life of 10 years; expected dividend rate on common stock of 4.5759% and volatility of common stock price of 41.8046%. This resulted in a value of $4.4433 per share of common stock underlying the Warrant. On December 3, 2009, the Company was notified by Treasury that, as a result of the Company’s completion of our November 18, 2009 Qualified Equity Offering, the amount of the Warrant was reduced by 50% to 198,269 shares. In accordance with the terms of the Warrant, the number of shares issuable upon exercise and the exercise price were adjusted each time the Company paid a dividend to its stockholders in excess of the dividend paid at the time the warrant was issued. Based on the formula set forth in the warrant, at December 31, 2018, the number of shares issuable upon exercise of the Warrant were 314,846 and the exercise price was $13.3503. NOTE 23 – WARRANT (continued) On February 4, 2019 the Company was notified that the holder of the Warrant was initiating the exercise on a cashless basis. At the time of exercise, the holder was entitled to 315,961 shares of common stock. The cost to exercise the Warrant was approximately $4.2 million, which was the equivalent of 91,894 shares of common stock with a fair value of $45.74 per share. On February 8, 2019, the Company issued 224,066 shares to the Warrant holder as a cashless exercise and the Warrant was retired. The issuance of the shares was exempt from registration pursuant to Section 3(a)(9) under the Securities Act of 1933. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 24 – REVENUE RECOGNITION All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended 2019, 2018 and 2017. Items outside of scope of ASC 606 are noted as such. Year Ended December 31, 2019 2018 2017 (2) NONINTEREST INCOME Wealth advisory fees $ 6,835 $ 6,344 $ 5,481 Investment brokerage fees 1,687 1,458 1,273 Service charges on deposit accounts Service charges on commercial deposit acounts 10,082 10,234 8,230 Service charges on retail deposit acounts 880 879 905 Overdrafts, net 3,585 3,581 3,452 Other 1,170 1,137 1,109 Loan and service fees Debit card interchange fees 6,344 5,883 4,663 Loan fees (1) 2,544 2,423 2,231 Other 1,023 985 1,006 Merchant card fee income 2,641 2,461 2,279 Bank owned life insurance income (1) 1,890 1,244 1,768 Mortgage banking income (1) 1,626 1,150 982 Net securities gains (losses) (1) 142 (50) 32 Other income 4,548 2,573 2,629 Total noninterest income $ 44,997 $ 40,302 $ 36,040 (1) Not within scope of ASC 606 (2) The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. As a result of this new standard, the only revenue streams with changes in reporting in the current periods compared to the prior year comparable periods are loan and service fees and other income. The following is a description of principal activities from which we generate revenue. Revenues are recognized as the Company satisfies its obligations with our customers, in an amount that reflects the consideration that we expect to receive in exchange for those services. Wealth advisory fees The Company provides wealth advisory services to its customers and earns fees from its contracts with trust customers to manage assets for investment and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted monthly, quarterly, or annual services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at month-end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed. Other related services, such as escrow accounts that are based on a fixed schedule, are recognized when the services are rendered. NOTE 24 – REVENUE RECOGNITION (continued) Investment brokerage services The Company provides investment brokerage services through a full service brokerage and investment and advisory firm, Cetera Investment Services LLC (“Cetera”). The Company receives commissions from Cetera on a monthly basis based upon customer activity for the month. The fees are recognized monthly and a receivable is recorded until commissions are generally paid by the 5th business day of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the Cetera and (ii) does not control the services to the customers, investment brokerage service fees are presented net of Cetera’s related costs. Service charges on deposit accounts The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s balance. Interchange income The Company provides the ability to transact on certain deposit accounts through the use of debit cards by outsourcing the services through third party service providers. Performance obligations are met on a transactional basis and income is recognized monthly based on transaction type and volume. Under the accounting standards in effect in the prior period, revenue was previously recognized net of the third party’s costs. Under ASC 606, fees from interchange income related to its customers use of debit cards will be reported gross in loan and service fees under noninterest income. The cost of using third party providers for these interchange services will be reported in data processing fees and supplies under noninterest expense, which has no effect on net income for the period. Gain on sale of other real estate (OREO) owned financed by seller On occasion, the Company underwrites a loan to purchase property owned by the Company. Under the accounting standards in effect in the prior period, the gain on the sale of the Company owned property was deferred and recognized over the life of the loan. Under ASC 606, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. As a result of the adoption of ASC 606, the Company reported a net increase of $24,000 to opening retained earnings as of January 1, 2018. Debit card incentive rebates The Company receives incentive rebates based on debit card transaction volume. Performance obligations are met on a transactional basis and income is recognized monthly based on transaction volume. Under the accounting standards in effect in the prior period, revenue was previously recognized in other income under noninterest income. Under ASC 606, these rebates related to debit card transaction volume will be reported as a contra expense in data processing fees and supplies under noninterest expense, which has no effect on net income for the period. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | NOTE 25 – LEASES The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2029 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use (“ROU”) lease assets and are included in other assets on the consolidated balance sheet. The Company’s corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as practical expedient of the standard. The following is a maturity analysis of the operating lease liabilities as of December 31, 2019: Operating Lease Years ending December 31, (in thousands) Obligation 2020 $ 561 2021 581 2022 595 2023 606 2024 622 2025 and thereafter 2,873 Total undiscounted lease payments 5,838 Less imputed interest (738) Lease liability $ 5,100 Right-of-use asset $ 5,100 Year Ended December 31,2019 Lease cost Operating lease cost $ 498 Short-term lease cost 24 Total lease cost $ 522 Other information Operating cash outflows from operating leases $ 498 Weighted-average remaining lease term - operating leases 9.8 years Weighted average discount rate - operating leases 2.8 % |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation: The consolidated financial statements include Lakeland Financial Corporation (the “Holding Company”) and its wholly-owned subsidiaries, Lake City Bank (the “Bank”) and LCB Risk Management, Inc., together referred to as (the “Company”). On December 18, 2006, LCB Investments II, Inc. was formed as a wholly owned subsidiary of the Bank incorporated in Nevada to manage a portion of the Bank’s investment portfolio beginning in 2007. On December 21, 2006, LCB Funding, Inc., a real estate investment trust incorporated in Maryland, was formed as a wholly owned subsidiary of LCB Investments II, Inc. On December 28, 2012, LCB Risk Management, Inc., a captive insurance company incorporated in Nevada, was formed as a wholly owned subsidiary of the Holding Company. All intercompany transactions and balances are eliminated in consolidation. The Company provides financial services through the Bank, a full-service commercial bank with 50 branch offices in fifteen counties in Northern and Central Indiana. The Company provides commercial, retail, trust and investment services to its customers. Commercial products include commercial loans and technology-driven solutions to meet commercial customers’ treasury management needs such as internet business banking and on-line treasury management services. Retail banking clients are provided a wide array of traditional retail banking services, including lending, deposit and investment services. Retail lending programs are focused on mortgage loans, home equity lines of credit and traditional retail installment loans. The Company provides credit card services to retail and commercial customers through its retail card program and merchant processing activity. The Company provides wealth advisory and trust clients with traditional personal and corporate trust services. The Company also provides retail brokerage services, including an array of financial and investment products such as annuities and life insurance. Other financial instruments, which represent potential concentrations of credit risk, include deposit accounts in other financial institutions. |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), 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 future results could differ. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash, demand deposits in other financial institutions and short-term investments and certificates of deposit with maturities of 90 days or less. Cash flows are reported net for customer loan and deposit transactions, and short-term borrowings. |
Securities | Securities: Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of tax. Securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Purchase premiums or discounts are recognized in interest income using the interest method over the terms of the securities or overestimated lives for mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. 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) other-than-temporary impairment (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. Equity securities which are included in other assets, are carried at fair value with changes in fair value recorded through earnings. |
Real Estate Mortgage Loans Held-for-Sale | Real Estate Mortgage Loans Held-for-Sale: Loans held for sale are reported at the lower of cost or fair value on an aggregate basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loan sales occur on the delivery date agreed to in the relevant commitment agreement. The Company retains servicing on the majority of loans sold. The carrying value of loans sold is reduced by the amount allocated to the servicing right. The gain or loss on the sale of loans is the difference between the carrying value of the loans sold and the funds received from the sale. |
Loans | Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred loan fees and costs, and an allowance for loan losses. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. All classes of commercial and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage loans for which collateral is insufficient to cover all principal and accrued interest are reclassified as nonaccrual loans, on or before the date when the loan becomes 90 days delinquent. When a loan is classified as a nonaccrual loan, interest on the loan is no longer accrued, all unpaid accrued interest is reversed and interest income is subsequently recorded on the cash-basis or cost-recovery method. Accrual status is resumed when all contractually due payments are brought current and future payments are reasonably assured. Other consumer loans are not placed on a nonaccrual status since these loans are charged-off when they have been delinquent from 90 to 180 days, and when the related collateral, if any, is not sufficient to offset the indebtedness. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The recorded investment in loans is the loan balance net of unamortized deferred loan fees and costs. The total amount of accrued interest on loans as of December 31, 2019 and 2018 was $11.5 million and $11.8 million. |
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 inability to fully collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company has an established process to determine the adequacy of the allowance for loan losses that generally includes consideration of the following factors: changes in the nature and volume of the loan portfolio, overall portfolio quality and current economic conditions that may affect the borrowers’ ability to repay. Consideration is not limited to these factors, although they represent the most commonly cited factors. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available or as future events change. 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. The general component covers non-impaired loans and is based on historical loss experience, subject to a floor, adjusted for current factors. A detailed analysis is performed on loans that are classified but determined not to be impaired which incorporates different scenarios where the risk that the borrower will be unable or unwilling to repay its debt in full or on time is combined with an estimate of loss in the event the borrower cannot pay to develop non-specific allocations for such loan pools. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years, subject to a floor. This loss experience is supplemented with other environmental 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; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, 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 and industrial, commercial real estate and multi-family residential, agri-business and agricultural, other commercial, consumer 1-4 family mortgage and other consumer. The risk characteristics of each of the identified portfolio segments are as follows: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Commercial and Industrial Commercial Real Estate and Multi-Family Residential Agri-business and Agricultural Other Commercial Consumer 1-4 Family Mortgage Other Consumer A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified and a concession has been granted for borrowers experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired and may be either accruing or non-accruing. Nonaccrual troubled debt restructurings follow the same policy as described above for other loans. Impairment for troubled debt restructurings is measured at the present value of estimated future cash flows using the loan’s effective rate at inception or at discounted collateral value for collateral dependent loans. Impairment is evaluated individually or in total for smaller-balance loans of similar nature such as all classes of consumer 1-4 family and other consumer loans, and individually for all classes of commercial and industrial, commercial real estate and multi-family, agri-business and agricultural and other commercial loans. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is impaired, a portion of the allowance may be 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 less anticipated costs to sell if repayment is expected solely from the collateral. All classes of commercial and industrial, commercial real estate and multifamily residential, agri-business and agricultural, other commercial and consumer 1-4 family mortgage loans that become delinquent beyond 90 days are analyzed and a charge-off is taken when it is determined that the underlying collateral, if any, is not sufficient to offset the indebtedness. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Troubled debt restructured loans are considered for removal from troubled debt restructuring status in the year following modification or at time of subsequent restructuring for loans with cumulative principal forgiveness if the interest rate is considered a market rate at the time of modification and it has been performing according to the terms of the modification for a reasonable period of time long enough to observe an ability to repay under the modified terms. If removed from troubled debt restructuring status, the loan continues to be evaluated for impairment with either the present value of estimated future cash flows using the loan’s effective rate at inception or at discounted collateral value for collateral dependent loans. In addition, troubled debt restructured loans with subsequent modifications that do not have cumulative principal forgiveness are considered for removal from troubled debt restructuring status at the time of the subsequent modification if the following circumstances exist: (1) at the time of the subsequent restructuring, the borrower is not experiencing financial difficulties; (2) under the terms of the subsequent restructuring agreement no concession has been granted to the borrower; and (3) the subsequent restructuring agreement includes market terms that are no less favorable than those that would be offered for comparable new debt. Upon meeting these criteria, the loan is no longer individually evaluated for impairment and is no longer disclosed as a troubled debt restructuring. |
Investments in Limited Partnerships | Investments in Limited Partnerships: The Company enters into and invests in limited partnerships in order to invest in affordable housing projects for the primary purpose of obtaining available tax benefits. The Company is a limited partner in these investments and, as such, the Company is not involved in the management or operation of such investments. These investments are accounted for using the equity method of accounting. Under the equity method of accounting, the Company records its share of the partnership’s earnings or losses in its income statement and adjusts the carrying amount of the investments on the consolidated balance sheet. These investments are evaluated for impairment when events indicate the carrying amount may not be recoverable. The investments recorded at December 31, 2019 and 2018 were $6.7 million and $7.0 million, respectively and are included with other assets in the consolidated balance sheet. The Company also has a commitment to fund an additional $1.6 million at December 31, 2019 in two of the limited partnerships compared to $2.1 million at December 31, 2018, which is included with other liabilities in the consolidated balance sheet. |
Foreclosed Assets | Foreclosed Assets: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs incurred after acquisition are expensed. At December 31, 2019 and 2018, the balance of other real estate owned was $316,000 and is included with other assets on the consolidated balance sheet. |
Land, Premises and Equipment, Net | Land, Premises and Equipment, Net: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the useful lives of the assets. Premises and improvements assets have useful lives between 5 3 |
Loan Servicing Rights | Loan Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in mortgage banking income. Fair value 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 noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The amortization of servicing rights is netted against mortgage banking income. Servicing fees totaled $1.1 million, $1.1 million and $1.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Late fees and ancillary fees related to loan servicing are not material. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as loan type, term and interest rate. Any impairment of a grouping is reported as a valuation allowance, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in the valuation allowance are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The carrying value of mortgage servicing rights, which is included with other assets in the consolidated balance sheet, was $3.8 million and $3.3 million as of December 31, 2019 and 2018. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $337.9 million and $343.5 million at December 31, 2019 and 2018. Custodial escrow balances maintained in connection with serviced loans were $1 Servicing fee income (loss), which is included in loan and service fees on the income statement, is recorded for fees earned for servicing loans. Fees earned for servicing loans are based on a contractual percentage of the outstanding principal amount of the loan and are recorded as income when earned. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in fair values of these derivatives are included in mortgage banking income. |
Interest Rate Swap Derivatives | Interest Rate Swap Derivatives: The Company offers a derivative product to certain creditworthy commercial banking customers. This product allows the commercial banking customers to enter into an agreement with the Company to swap a variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the borrower’s interest rate exposure. The extension of credit incurred in connection with these derivative products is subject to the same approval and underwriting standards as traditional credit products. The Company limits its risk exposure by simultaneously entering into a similar, offsetting swap agreement with a separate, well-capitalized and highly rated counterparty previously approved by the Company’s Asset Liability Committee. By using these interest rate swap arrangements, the Company is also better insulated from the interest rate risk associated with underwriting fixed-rate loans and is better able to meet customer demand for fixed rate loans. These derivative contracts are not designated against specific assets or liabilities and, therefore, do not qualify for hedge accounting. The derivatives are recorded as assets and liabilities on the balance sheet at fair value with changes in fair value recorded in non-interest income for both the commercial banking customer swaps and the related offsetting swaps. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820), resulting in some potential volatility in earnings each period. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The notional amount of the combined interest rate swaps with customers and counterparties at December 31, 2019 and 2018 was $349.6 million and $258.0 million, respectively. The fair value of the interest rate swap asset was $7.3 million and $3.9 million and the fair value of the interest rate swap liability was $7.9 million and $4.0 million at December 31, 2019 and 2018, respectively. |
Bank Owned Life Insurance | Bank Owned Life Insurance: At December 31, 2019 and 2018, the Company owned $79.8 million and $73.9 million, respectively, of life insurance policies on certain officers to provide a life insurance benefit for these officers. At December 31, 2019 and 2018, the Company also owned $4.0 million and $3.2 million, respectively, of variable life insurance on certain officers related to a deferred compensation plan. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, i.e., the cash surrender value adjusted for other changes or other amounts due that are probable at settlement. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: All goodwill on the Company’s consolidated balance sheet resulted from business combinations prior to January 1, 2009 and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is not amortized, but assessed at least annually for impairment and any such impairment will be recognized in the period identified. |
FHLB and Federal Reserve Bank Stock | FHLB and Federal Reserve Bank Stock: FHLB and Federal Reserve Bank stock are carried at cost in other assets, classified as a restricted security and are periodically evaluated for impairment based on ultimate recoverability of par value. Both cash and stock dividends are reported as income. |
Repurchase Agreements | Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. This product was discontinued during 2019. |
Long-term Assets | Long-term Assets: Premises and equipment, 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. |
Benefit Plans | Benefit Plans: The Company has a noncontributory defined benefit pension plan, which covered substantially all employees until the plan was frozen effective April 1, 2000. Funding of the plan equals or exceeds the minimum funding requirement determined by the actuary. Pension expense is the net of interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Benefits are based on years of service and compensation levels. The Company maintains a 401(k) profit sharing plan for all employees meeting certain age and service requirements. The Company contributions are based upon the percentage of budgeted net income earned during the year. An employee deferred compensation plan is available to certain employees with returns based on investments in mutual funds. The Company maintains a directors’ deferred compensation plan. Effective January 1, 2003, the directors’ deferred compensation plan was amended to restrict the deferral to be in stock only and deferred directors’ fees are included in equity. The Company acquires shares on the open market and records such shares as treasury stock. |
Stock Based Compensation | Stock Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees, 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 Company’s common stock at the date of grant adjusted for the present value of expected dividends is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Certain of the restricted stock awards are performance based, as more fully discussed in Note 15 – Stock Based Compensation. |
Income Taxes | Income Taxes: Annual consolidated federal and state income tax returns are filed by the Company. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Income tax expense is recorded based on the amount of taxes due on its tax return plus net deferred taxes computed based upon the expected future tax consequences of temporary differences between carrying amounts and tax basis of assets and liabilities, using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is more likely of being realized on examination than not. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby 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. The fair value of standby letters of credit is recorded as a liability during the commitment period. |
Earnings Per Common Share | Earnings Per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, restricted stock awards and warrants. Earnings and dividends per share are restated for all stock splits and dividends through the date of issue of the financial statements. The common shares included in treasury stock for 2019 and 2018 include 178,741 and 172,959 shares, respectively, of Company common stock that has been purchased under the directors’ deferred compensation plan described above. Because these shares are held in trust for the participants, they are treated as outstanding when computing the weighted-average common shares outstanding for the calculation of both basic and diluted earnings per share. |
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 the funded status of the pension plan, which are also recognized as separate components of equity. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there currently are such matters that will have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash: The Company was required to have $28.9 million and $6.4 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements at year-end 2019 and 2018, respectively. The Company met this requirement both years. |
Dividend Restriction | Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to its stockholders. These restrictions currently pose no practical limit on the ability of the Bank or Company to pay dividends at historical levels. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 5 - Fair Value. 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. |
Operating Segments | Operating Segments: The Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. All of the Company’s financial service operations are similar and considered by management to be aggregated into one reportable operating segment. While the Company has assigned certain management responsibilities by region and business-line, the Company’s chief decision-makers monitor and evaluate financial performance on a Company-wide basis. The majority of the Company’s revenue is from the business of banking and the Company’s assigned regions have similar economic characteristics, products, services and customers. Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards: The Company accounts for leases in accordance with ASU 2016-02, “Leases”, which the Company adopted on January 1, 2019. This guidance replaced existing lease guidance in GAAP and requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. Lessees and lessors are required to recognize and measure leases that exist at the beginning of the earliest period presented using a modified retrospective approach. The Company recorded a right-of-use asset of $5.5 million and a lease liability of $5.5 million upon adoption, and there was no NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In March 2017, the FASB issued ASU No. 2017-08, “Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities.” This update amends the amortization period for certain purchased callable debt securities held at a premium. FASB has shortened the amortization period for the premium to the earliest call date. Under legacy GAAP, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company adopted this new accounting standard on January 1, 2019. The effect of adoption was a reduction in retained earnings of approximately $1.3 million to reflect the acceleration of amortization of premiums on available-for-sale debt securities. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities”. The purpose of this updated guidance is to better align a company's financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted ASU 2017-12 on January 1, 2019. ASU 2017-12 required a modified retrospective transition method in which the Company recognized the cumulative effect of the change on the opening balance of each affected component of equity in the consolidated balance sheet as of the date of adoption. Adopting this standard did not have an impact on the Company’s financial condition or operations. |
Newly Issued But Not Yet Effective Accounting Standards | Newly Issued But Not Yet Effective Accounting Standards: In June 2016, the FASB issued guidance related to credit losses on financial instruments. This update, commonly referred to as the current expected credit losses methodology (“CECL”), will change the accounting for credit losses on loans and debt securities. Under the new guidance, the Company’s measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. For loans, this measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current GAAP, which delays recognition until it is probable a loss has been incurred. In addition, the guidance will modify the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which will allow for reversal of credit impairments in future periods. This guidance is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods in those fiscal years. This amendment is required to be adopted using a modified retrospective approach with a cumulative-effect adjustment to beginning retained earnings, as of the beginning of the first reporting period in which the guidance is effective. The Company formed a cross-functional committee that has evaluated existing technology and other solutions to assist with calculating losses under this new standard, selected a vendor to validate data currently loaded in the technology solution, and reviewed the validation assessment report. Additionally, the committee has selected a probability of default/loss given default model, run parallel calculations and evaluated changes to the overall internal control structure under the new model. Upon adoption of this standard, the Company will recognize credit losses earlier than it historically has done under the current incurred loss model. The Company will utilize a one to two year reasonable and supportable forecast period. Due to this change in methodology, the Company anticipates larger increases in credit loss allowances for its longer-lived retail portfolios and smaller increases for its shorter-lived commercial portfolio. Based upon the Company’s loan portfolio composition at December 31, 2019, and the current economic environment and management’s current forecast and qualitative adjustment assumptions, the Company estimates an 8% - 13% increase in its allowance for credit losses upon adoption of this standard. The final impact of CECL on its allowance for credit losses, effective January 1, 2020, will depend on refinements to key assumptions including forecasting and qualitative factors. Once final, the calculation will require approval by the loan review committee and governance in accordance with the Company’s internal controls over financial reporting. Additionally, the Company has evaluated the need to recognize an allowance for credit impairment for available-for-sale debt securities. The impact on available-for-sale debt securities is subject to a limitation, which is based on the fair value of the debt securities. When evaluating the credit quality of our existing portfolio, the Company does not expect the allowance for credit impairment for available-for-sale securities to be significant. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In January 2017, the FASB issued ASU No. 2017-04 "Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment." These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 should be adopted on a prospective basis. Management does not expect the adoption of this new accounting standard to have a material impact on our financial statements. |
Reclassifications | Reclassifications: Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders’ equity as previously reported. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SECURITIES | |
Schedule of Available-For-Sale Securities | Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gain Losses Value 2019 Mortgage-backed securities: residential $ 283,817 $ 4,751 $ (387) $ 288,181 Mortgage-backed securities: commercial 36,712 262 (2) 36,972 State and municipal securities 270,480 12,828 (228) 283,080 Total $ 591,009 $ 17,841 $ (617) $ 608,233 2018 U.S. Treasury securities $ 994 $ 0 $ (7) $ 987 U.S. government sponsored agencies 4,435 0 (85) 4,350 Mortgage-backed securities: residential 329,516 1,392 (5,496) 325,412 Mortgage-backed securities: commercial 38,712 0 (571) 38,141 State and municipal securities 217,964 1,403 (2,708) 216,659 Total $ 591,621 $ 2,795 $ (8,867) $ 585,549 |
Schedule of Available-For-Sale Securities By Maturity | Amortized Fair (dollars in thousands) Cost Value Due in one year or less $ 4,587 $ 4,610 Due after one year through five years 15,115 15,453 Due after five years through ten years 24,962 26,061 Due after ten years 225,816 236,956 270,480 283,080 Mortgage-backed securities 320,529 325,153 Total debt securities $ 591,009 $ 608,233 |
Schedule of Security proceeds, gross gains and gross losses | (dollars in thousands) 2019 2018 2017 Sales of securities available-for-sale Proceeds $ 57,114 $ 15,302 $ 40,877 Gross gains 279 21 267 Gross losses (137) (71) (235) Number of securities 46 29 50 |
Schedule of Available-For-Sale Securities Continuous Unrealized Loss Position | Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Losses Value Losses Value Losses 2019 Mortgage-backed securities: residential $ 23,436 $ 112 $ 14,174 $ 275 $ 37,610 $ 387 Mortgage-backed securities: commercial 4,591 2 0 0 4,591 2 State and municipal securities 14,188 228 0 0 14,188 228 Total temporarily impaired $ 42,215 $ 342 $ 14,174 $ 275 $ 56,389 $ 617 2018 U.S. Treasury securities $ 0 $ 0 $ 987 $ 7 $ 987 $ 7 U.S. government sponsored agencies 0 0 4,350 85 4,350 85 Mortgage-backed securities: residential 11,619 12 217,182 5,484 228,801 5,496 Mortgage-backed securities: commercial 0 0 38,141 571 38,141 571 State and municipal securities 26,229 124 85,982 2,584 112,211 2,708 Total temporarily impaired $ 37,848 $ 136 $ 346,642 $ 8,731 $ 384,490 $ 8,867 |
Schedule of securities with unrealized losses | Less than 12 months 12 months or more Total 2019 Mortgage-backed securities: residential 7 6 13 Mortgage-backed securities: commercial 1 0 1 State and municipal securities 11 0 11 Total temporarily impaired 19 6 25 2018 U.S. Treasury securities 0 1 1 U.S. government sponsored agencies 0 2 2 Mortgage-backed securities: residential 5 84 89 Mortgage-backed securities: commercial 0 9 9 State and municipal securities 35 111 146 Total temporarily impaired 40 207 247 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOANS | |
Schedule of Loans | Total loans outstanding as of the years ended December 31, 2019 and 2018 consisted of the following: (dollars in thousands) 2019 2018 Commercial and industrial loans: Working capital lines of credit loans $ 709,849 $ 690,620 Non-working capital loans 717,019 714,759 Total commercial and industrial loans 1,426,868 1,405,379 Commercial real estate and multi-family residential loans: Construction and land development loans 287,641 266,805 Owner occupied loans 573,665 586,325 Nonowner occupied loans 571,364 520,901 Multi-family loans 240,652 195,604 Total commercial real estate and multi-family residential loans 1,673,322 1,569,635 Agri-business and agricultural loans: Loans secured by farmland 174,380 177,503 Loans for agricultural production 205,151 193,010 Total agri-business and agricultural loans 379,531 370,513 Other commercial loans 112,302 95,657 Total commercial loans 3,592,023 3,441,184 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 177,227 185,822 Open end and junior lien loans 186,552 187,030 Residential construction and land development loans 12,966 16,226 Total consumer 1-4 family mortgage loans 376,745 389,078 Other consumer loans 98,617 86,064 Total consumer loans 475,362 475,142 Gross loans 4,067,385 3,916,326 Less: Allowance for loan losses (50,652) (48,453) Net deferred loan fees (1,557) (1,581) Loans, net $ 4,015,176 $ 3,866,292 |
ALLOWANCE FOR LOAN LOSSES AND_2
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | |
Schedule of Allowance For Loan Losses and Recorded Investment In Loans By Portfolio Segment | The following tables present the activity and balance in the allowance for loan losses by portfolio segment for the year ended December 31, 2019, 2018 and 2017: Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2019 Beginning balance $ 22,518 $ 15,393 $ 4,305 $ 368 $ 2,292 $ 283 $ 3,294 $ 48,453 Provision for loan losses 4,259 259 (444) 79 (219) 275 (974) 3,235 Loans charged-off (1,447) (17) 0 0 (110) (336) 0 (1,910) Recoveries 459 161 8 0 123 123 0 874 Net loans (charged-off) recovered (988) 144 8 0 13 (213) 0 (1,036) Ending balance $ 25,789 $ 15,796 $ 3,869 $ 447 $ 2,086 $ 345 $ 2,320 $ 50,652 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2018 Beginning balance $ 21,097 $ 14,714 $ 4,920 $ 577 $ 2,768 $ 379 $ 2,666 $ 47,121 Provision for loan losses 5,884 1,140 (657) (209) (536) 150 628 6,400 Loans charged-off (5,215) (491) 0 0 (48) (357) 0 (6,111) Recoveries 752 30 42 0 108 111 0 1,043 Net loans (charged-off) recovered (4,463) (461) 42 0 60 (246) 0 (5,068) Ending balance $ 22,518 $ 15,393 $ 4,305 $ 368 $ 2,292 $ 283 $ 3,294 $ 48,453 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2017 Beginning balance $ 20,272 $ 13,452 $ 3,532 $ 461 $ 2,827 $ 387 $ 2,787 $ 43,718 Provision for loan losses 614 997 1,365 116 (105) 134 (121) 3,000 Loans charged-off (842) (406) 0 0 (53) (259) 0 (1,560) Recoveries 1,053 671 23 0 99 117 0 1,963 Net loans (charged-off) recovered 211 265 23 0 46 (142) 0 403 Ending balance $ 21,097 $ 14,714 $ 4,920 $ 577 $ 2,768 $ 379 $ 2,666 $ 47,121 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following tables present balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018: Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 9,324 $ 538 $ 90 $ 0 $ 426 $ 6 $ 0 $ 10,384 Collectively evaluated for impairment 16,465 15,258 3,779 447 1,660 339 2,320 40,268 Total ending allowance balance $ 25,789 $ 15,796 $ 3,869 $ 447 $ 2,086 $ 345 $ 2,320 $ 50,652 Loans: Loans individually evaluated for impairment $ 19,580 $ 4,998 $ 445 $ 0 $ 2,789 $ 17 $ 0 $ 27,829 Loans collectively evaluated for impairment 1,407,246 1,665,842 379,186 112,166 375,210 98,349 0 4,037,999 Total ending loans balance $ 1,426,826 $ 1,670,840 $ 379,631 $ 112,166 $ 377,999 $ 98,366 $ 0 $ 4,065,828 Commercial Real Estate Commercial and Agri-business Consumer and Multi-family and Other 1-4 Family Other (dollars in thousands) Industrial Residential Agricultural Commercial Mortgage Consumer Unallocated Total December 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 8,552 $ 921 $ 73 $ 0 $ 457 $ 26 $ 0 $ 10,029 Collectively evaluated for impairment 13,966 14,472 4,232 368 1,835 257 3,294 38,424 Total ending allowance balance $ 22,518 $ 15,393 $ 4,305 $ 368 $ 2,292 $ 283 $ 3,294 $ 48,453 Loans: Loans individually evaluated for impairment $ 19,734 $ 4,266 $ 433 $ 0 $ 2,240 $ 44 $ 0 $ 26,717 Loans collectively evaluated for impairment 1,385,604 1,562,899 370,174 95,520 388,053 85,778 0 3,888,028 Total ending loans balance $ 1,405,338 $ 1,567,165 $ 370,607 $ 95,520 $ 390,293 $ 85,822 $ 0 $ 3,914,745 |
Schedule of Loans individually evaluated for impairment | The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019: Unpaid Allowance for Principal Recorded Loan Losses (dollars in thousands) Balance Investment Allocated With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 22 $ 22 $ 0 Non-working capital loans 2,130 735 0 Commercial real estate and multi-family residential loans: Owner occupied loans 3,189 3,010 0 Agri-business and agricultural loans: Loans secured by farmland 603 283 0 Loans for ag production 15 15 0 Consumer 1-4 family loans: Closed end first mortgage loans 411 330 0 Open end and junior lien loans 121 121 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 6,214 6,214 3,089 Non-working capital loans 13,230 12,609 6,235 Commercial real estate and multi-family residential loans: Owner occupied loans 1,988 1,988 538 Agri-business and agricultural loans: Loans secured by farmland 147 147 90 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,643 1,646 363 Open end and junior lien loans 641 640 53 Residential construction loans 51 52 10 Other consumer loans 17 17 6 Total $ 30,422 $ 27,829 $ 10,384 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018: Unpaid Allowance for Principal Recorded Loan Losses (dollars in thousands) Balance Investment Allocated With no related allowance recorded: Commercial and industrial loans: Non-working capital loans $ 3,284 $ 1,889 $ 0 Commercial real estate and multi-family residential loans: Owner occupied loans 1,773 1,527 0 Agri-business and agricultural loans: Loans secured by farmland 603 283 0 Consumer 1-4 family loans: Closed end first mortgage loans 583 502 0 Open end and junior lien loans 220 220 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 9,691 6,694 2,602 Non-working capital loans 11,099 11,151 5,950 Commercial real estate and multi-family residential loans: Construction and land development loans 291 291 142 Owner occupied loans 2,938 2,448 779 Agri-business and agricultural loans: Loans secured by farmland 150 150 73 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,517 1,518 457 Other consumer loans 45 44 26 Total $ 32,194 $ 26,717 $ 10,029 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2019: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 176 $ 9 $ 9 Non-working capital loans 1,170 40 30 Commercial real estate and multi-family residential loans: Owner occupied loans 2,354 34 34 Agri-business and agricultural loans: Loans secured by farmland 283 0 0 Loans for ag production 4 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 272 3 3 Open end and junior lien loans 133 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 6,335 143 81 Non-working capital loans 11,800 448 410 Commercial real estate and multi-family residential loans: Owner occupied loans 1,849 43 39 Agri-business and agricultural loans: Loans secured by farmland 147 3 1 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,643 45 43 Open end and junior lien loans 268 0 0 Residential construction loans 9 0 0 Other consumer loans 21 2 1 Total $ 26,464 $ 770 $ 651 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2018: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 785 $ 26 $ 23 Non-working capital loans 1,862 74 68 Commercial real estate and multi-family residential loans: Construction and land development loans 58 5 4 Owner occupied loans 2,291 36 37 Agri-business and agricultural loans: Loans secured by farmland 283 0 0 Consumer 1-4 family loans: Closed end first mortgage loans 521 13 12 Open end and junior lien loans 205 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 3,307 74 12 Non-working capital loans 5,328 138 81 Commercial real estate and multi-family residential loans: Construction and land development loans 453 26 29 Owner occupied loans 1,631 9 1 Agri-business and agricultural loans: Loans secured by farmland 12 1 0 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 1,214 37 36 Open end and junior lien loans 38 0 0 Other consumer loans 47 3 3 Total $ 18,035 $ 442 $ 306 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents loans individually evaluated for impairment by class of loans for the year ended December 31, 2017: Cash Basis Average Interest Interest Recorded Income Income (dollars in thousands) Investment Recognized Recognized With no related allowance recorded: Commercial and industrial loans: Working capital lines of credit loans $ 407 $ 46 $ 39 Non-working capital loans 1,341 57 51 Commercial real estate and multi-family residential loans: Construction and land development loans 110 5 5 Owner occupied loans 2,349 17 15 Nonowner occupied loans 3,009 294 284 Agri-business and agricultural loans: Loans secured by farmland 287 0 0 Consumer 1‑4 family loans: Closed end first mortgage loans 293 9 8 Open end and junior lien loans 103 0 0 With an allowance recorded: Commercial and industrial loans: Working capital lines of credit loans 2,083 17 17 Non-working capital loans 5,715 103 103 Commercial real estate and multi-family residential loans: Construction and land development loans 69 5 0 Owner occupied loans 1,664 3 2 Agri-business and agricultural loans: Loans secured by farmland 2 0 0 Consumer 1‑4 family mortgage loans: Closed end first mortgage loans 1,006 25 22 Open end and junior lien loans 80 0 0 Other consumer loans 52 3 3 Total $ 18,570 $ 584 $ 549 |
Schedule of Aging of the Recorded Investment in Past Due Loans | NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans: Greater than 30 ‑ 89 90 Days Past Total Past Loans Not Days Due and Still Due and (dollars in thousands) Past Due Past Due Accruing Nonaccrual Nonaccrual Total Commercial and industrial loans: Working capital lines of credit loans $ 703,737 $ 10 $ 0 $ 6,236 $ 6,246 $ 709,983 Non-working capital loans 710,557 4 0 6,282 6,286 716,843 Commercial real estate and multi-family residential loans: Construction and land development loans 286,534 0 0 0 0 286,534 Owner occupied loans 569,303 0 0 4,056 4,056 573,359 Nonowner occupied loans 570,687 0 0 0 0 570,687 Multi-family loans 240,260 0 0 0 0 240,260 Agri-business and agricultural loans: Loans secured by farmland 173,959 0 0 430 430 174,389 Loans for agricultural production 205,228 0 0 14 14 205,242 Other commercial loans 112,166 0 0 0 0 112,166 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 174,902 1,099 45 827 1,971 176,873 Open end and junior lien loans 187,255 188 0 761 949 188,204 Residential construction loans 12,870 0 0 52 52 12,922 Other consumer loans 98,176 173 0 17 190 98,366 Total $ 4,045,634 $ 1,474 $ 45 $ 18,675 $ 20,194 $ 4,065,828 NOTE 4 - ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (continued) The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 by class of loans: Greater than 30‑89 90 Days Past Total Past Loans Not Days Due and Still Due and (dollars in thousands) Past Due Past Due Accruing Nonaccrual Nonaccrual Total Commercial and industrial loans: Working capital lines of credit loans $ 684,191 $ 4,328 $ 0 $ 2,245 $ 6,573 $ 690,764 Non-working capital loans 709,629 3,368 0 1,577 4,945 714,574 Commercial real estate and multi-family residential loans: Construction and land development loans 265,544 0 0 0 0 265,544 Owner occupied loans 583,214 486 0 2,269 2,755 585,969 Nonowner occupied loans 520,431 57 0 0 57 520,488 Multi-family loans 195,164 0 0 0 0 195,164 Agri-business and agricultural loans: Loans secured by farmland 177,080 150 0 283 433 177,513 Loans for agricultural production 193,094 0 0 0 0 193,094 Other commercial loans 95,520 0 0 0 0 95,520 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 183,420 1,370 0 671 2,041 185,461 Open end and junior lien loans 188,320 98 0 220 318 188,638 Residential construction loans 16,194 0 0 0 0 16,194 Other consumer loans 85,654 168 0 0 168 85,822 Total $ 3,897,455 $ 10,025 $ 0 $ 7,265 $ 17,290 $ 3,914,745 |
Schedule of Troubled Debt Restructuring | (dollars in thousands) 2019 2018 Accruing troubled debt restructured loans $ 5,909 $ 8,016 Nonaccrual troubled debt restructured loans 3,188 4,384 Total troubled debt restructured loans $ 9,097 $ 12,400 |
Schedule of Loans by Class Modified as Troubled Debt Restructurings | The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2019: Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 1 $ 35 $ 35 1 1 Total 1 $ 35 $ 35 1 1 The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2018: Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 1 $ 600 $ 600 1 0 Non-working capital loans 7 4,628 4,628 7 0 6 Commercial real estate and multi-family residential loans: Construction and land development loans 1 824 824 1 12 Owner occupied loans 2 933 933 2 12 Consumer 1-4 family loans: Closed end first mortgage loans 1 198 197 1 239 Total 12 $ 7,183 $ 7,182 12 0 239 The following table presents loans by class modified as new troubled debt restructurings that occurred during the year ending December 31, 2017: Modified Repayment Terms Pre-Modification Post-Modification Extension Outstanding Outstanding Period or Number of Recorded Recorded Number of Range (dollars in thousands) Loans Investment Investment Loans (in months) Troubled Debt Restructurings Commercial and industrial loans: Working capital lines of credit loans 1 $ 1,324 $ 1,324 1 9 Non-working capital loans 4 1,922 1,922 4 0 6 Commercial real estate and multi-family residential loans: Owner occupied loans 1 486 486 1 6 Consumer 1-4 family loans: Closed end first mortgage loans 2 120 122 2 198 350 Total 8 $ 3,852 $ 3,854 8 0 350 |
Schedule of Loans Modified as Troubled Debt Restructurings which were Payment Default with in Tweleve Months Following the Modification Terms | 2019 2018 2017 Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Loans Investment Troubled Debt Restructurings that Subsequently Defaulted Commercial and industrial loans: Non-working capital loans 1 $ 601 0 $ 0 0 $ 0 Total 1 $ 601 0 $ 0 0 $ 0 |
Schedule of Credit Quality Indicators | As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $ 631,728 $ 40,551 $ 37,278 $ 0 $ 426 $ 709,983 Non-working capital loans 673,370 18,782 19,381 0 5,310 716,843 Commercial real estate and multi-family residential loans: Construction and land development loans 286,534 0 0 0 0 286,534 Owner occupied loans 535,496 14,804 23,059 0 0 573,359 Nonowner occupied loans 569,315 781 591 0 0 570,687 Multi-family loans 240,260 0 0 0 0 240,260 Agri-business and agricultural loans: Loans secured by farmland 165,005 7,952 1,432 0 0 174,389 Loans for agricultural production 191,489 13,738 15 0 0 205,242 Other commercial loans 112,166 0 0 0 0 112,166 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 47,405 0 1,976 0 127,492 176,873 Open end and junior lien loans 10,845 0 762 0 176,597 188,204 Residential construction loans 0 0 51 0 12,871 12,922 Other consumer loans 27,250 0 17 0 71,099 98,366 Total $ 3,490,863 $ 96,608 $ 84,562 $ 0 $ 393,795 $ 4,065,828 As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special Not (dollars in thousands) Pass Mention Substandard Doubtful Rated Total Commercial and industrial loans: Working capital lines of credit loans $ 618,612 $ 43,240 $ 28,563 $ 0 $ 349 $ 690,764 Non-working capital loans 664,787 15,992 27,548 0 6,247 714,574 Commercial real estate and multi-family residential loans: Construction and land development loans 264,900 353 291 0 0 265,544 Owner occupied loans 541,734 21,864 22,371 0 0 585,969 Nonowner occupied loans 517,356 2,491 641 0 0 520,488 Multi-family loans 194,948 216 0 0 0 195,164 Agri-business and agricultural loans: Loans secured by farmland 166,623 9,107 1,783 0 0 177,513 Loans for agricultural production 183,189 8,155 1,750 0 0 193,094 Other commercial loans 95,516 0 0 0 4 95,520 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 54,879 0 2,021 0 128,561 185,461 Open end and junior lien loans 8,810 0 220 0 179,608 188,638 Residential construction loans 0 0 0 0 16,194 16,194 Other consumer loans 12,700 0 44 0 73,078 85,822 Total $ 3,324,054 $ 101,418 $ 85,232 $ 0 $ 404,041 $ 3,914,745 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The table below presents the balances of assets and liabilities measured at fair value on a recurring basis: December 31, 2019 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets: Mortgage-backed securities: residential $ 0 $ 288,181 $ 0 $ 288,181 Mortgage-backed securities: commercial 0 36,972 0 36,972 State and municipal securities 0 282,935 145 283,080 Total Securities 0 608,088 145 608,233 Mortgage banking derivative 0 198 0 198 Interest rate swap derivative 0 7,263 0 7,263 Total assets $ 0 $ 615,549 $ 145 $ 615,694 Liabilities: Mortgage banking derivative 0 14 0 14 Interest rate swap derivative 0 7,860 0 7,860 Total liabilities $ 0 $ 7,874 $ 0 $ 7,874 December 31, 2018 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets: U.S. Treasury securities $ 987 $ 0 $ 0 $ 987 U.S. government sponsored agency securities 0 4,350 0 4,350 Mortgage-backed securities: residential 0 325,412 0 325,412 Mortgage-backed securities: commercial 0 38,141 0 38,141 State and municipal securities 0 216,509 150 216,659 Total Securities 987 584,412 150 585,549 Mortgage banking derivative 0 95 0 95 Interest rate swap derivative 0 3,869 0 3,869 Total assets $ 987 $ 588,376 $ 150 $ 589,513 Liabilities: Mortgage banking derivative 0 23 0 23 Interest rate swap derivative 0 4,025 0 4,025 Total liabilities $ 0 $ 4,048 $ 0 $ 4,048 |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | The tables below present the amount of assets measured at fair value on a nonrecurring basis: December 31, 2019 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets Impaired loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 3,126 $ 3,126 Non-working capital loans 0 0 6,374 6,374 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 43 43 Owner occupied loans 0 0 1,449 1,449 Agri-business and agricultural loans: Loans secured by farmland 0 0 57 57 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 0 0 474 474 Open end and junior lien loans 0 0 587 587 Other consumer loans 0 0 11 11 Total impaired loans $ 0 $ 0 $ 12,121 $ 12,121 Other real estate owned 0 0 0 0 Total assets $ 0 $ 0 $ 12,121 $ 12,121 December 31, 2018 Fair Value Measurements Using Assets (dollars in thousands) Level 1 Level 2 Level 3 at Fair Value Assets Impaired loans: Commercial and industrial loans: Working capital lines of credit loans $ 0 $ 0 $ 4,092 $ 4,092 Non-working capital loans 0 0 4,967 4,967 Commercial real estate and multi-family residential loans: Construction and land development loans 0 0 148 148 Owner occupied loans 0 0 1,669 1,669 Agri-business and agricultural loans: Loans secured by farmland 0 0 77 77 Consumer 1-4 family mortgage loans: Closed end first mortgage loans 0 0 553 553 Total impaired loans $ 0 $ 0 $ 11,506 $ 11,506 Other real estate owned 0 0 316 316 Total assets $ 0 $ 0 $ 11,822 $ 11,822 |
Schedule of Fair Value Measured On Nonrecurring Basis Valuation Techniques | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2019: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Impaired loans: Commercial and industrial $ 9,500 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 53 % 1% - 100% Impaired loans: Commercial real estate 1,492 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 27 % 7% - 61% Impaired loans: Agribusiness and agricultural 57 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 61 % Impaired loans: Consumer 1-4 family mortgage 1,061 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 14 % 5% - 100% Impaired loans: Other consumer 11 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 36 % NOTE 5 – FAIR VALUE (continued) The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2018: (dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Average Range of Inputs Impaired loans: Commercial and industrial $ 9,059 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 48 % 4%-100% Impaired loans: Commercial real estate 1,817 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 34 % 6%-53% Impaired loans: Agribusiness and agricultural 77 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 49 % Impaired loans: Consumer 1-4 family mortgage 553 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 23 % 0%-64% Other real estate owned 316 Collateral based measurements Discount to reflect current market conditions 0 % |
Schedule of Fair Values and the Related Carrying Values of Financial Instruments | The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2019. Items which are not financial instruments are not included. December 31, 2019 Carrying Estimated Fair Value (dollars in thousands) Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 99,381 $ 96,603 $ 2,778 $ 0 $ 99,381 Securities available-for-sale 608,233 0 608,088 145 608,233 Real estate mortgages held-for-sale 4,527 0 4,614 0 4,614 Loans, net 4,015,176 0 0 3,979,006 3,979,006 Federal Reserve and Federal Home Loan Bank Stock 13,772 N/A N/A N/A N/A Accrued interest receivable 15,391 0 3,729 11,662 15,391 Financial Liabilities: Certificates of deposit (1,192,067) 0 (1,202,060) 0 (1,202,060) All other deposits (2,941,752) (2,941,752) 0 0 (2,941,752) Federal Home Loan Bank advances (170,000) 0 (169,998) 0 (169,998) Standby letters of credit (915) 0 0 (915) (915) Accrued interest payable (11,604) (102) (11,502) 0 (11,604) The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2018. Items which are not financial instruments are not included. December 31, 2018 Carrying Estimated Fair Value (dollars in thousands) Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and cash equivalents $ 216,922 $ 214,452 $ 2,470 $ 0 $ 216,922 Securities available-for-sale 585,549 987 584,412 150 585,549 Real estate mortgages held-for-sale 2,293 0 2,314 0 2,314 Loans, net 3,866,292 0 0 3,786,175 3,786,175 Federal Reserve and Federal Home Loan Bank Stock 13,772 N/A N/A N/A N/A Accrued interest receivable 15,518 3 3,569 11,946 15,518 Financial Liabilities: Certificates of deposit (1,419,754) 0 (1,424,553) 0 (1,424,553) All other deposits (2,624,311) (2,624,311) 0 0 (2,624,311) Securities sold under agreements to repurchase (75,555) 0 (75,555) 0 (75,555) Federal Home Loan Bank advances (170,000) 0 (169,996) 0 (169,996) Subordinated debentures (30,928) 0 0 (31,195) (31,195) Standby letters of credit (978) 0 0 (978) (978) Accrued interest payable (10,404) (110) (10,289) (5) (10,404) |
LAND, PREMISES AND EQUIPMENT,_2
LAND, PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LAND, PREMISES AND EQUIPMENT, NET | |
Schedule of Land, Premises And Equipment | Land, premises and equipment and related accumulated depreciation were as follows at December 31, 2019 and 2018: (dollars in thousands) 2019 2018 Land $ 12,511 $ 12,302 Premises and improvements 53,213 49,064 Equipment and furniture 38,691 36,111 Total cost 104,415 97,477 Less accumulated depreciation 44,261 39,380 Land, premises and equipment, net $ 60,154 $ 58,097 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEPOSITS | |
Schedule of Certain Deposits | The following table details total deposits as of December 31, 2019 and 2018: (dollars in thousands) 2019 2018 Non-interest bearing demand deposits $ 983,307 $ 946,838 Savings and transaction accounts: Savings deposits 234,508 247,903 Interest bearing demand deposits 1,723,937 1,429,570 Time deposits: Other time deposits 281,934 273,533 Deposits of $100,000 to $250,000 291,805 268,058 Deposits of $250,000 or more 618,328 878,163 Total deposits $ 4,133,819 $ 4,044,065 |
Schedule of maturities of time deposits | At December 31, 2019, the scheduled maturities of time deposits were as follows: (dollars in thousands) Amount Maturing in 2020 $ 895,601 Maturing in 2021 206,303 Maturing in 2022 35,181 Maturing in 2023 23,143 Maturing in 2024 29,747 Thereafter 2,092 Total time deposits $ 1,192,067 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BORROWINGS | |
Schedule of Short-Term Debt | For the years ending December 31, advances from the Federal Home Loan Bank were as follows: (dollars in thousands) 2019 2018 Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020 $ 170,000 $ 0 Federal Home Loan Bank of Indianapolis Advance, 2.52%, Due January 7, 2019 0 170,000 Total $ 170,000 $ 170,000 |
Schedule of securities Sold with Agreements to Repurchase | (dollars in thousands) 2019 2018 2017 Securities sold under agreements to repurchase Outstanding at year end $ 0 $ 75,555 $ 70,652 Approximate average interest rate at year end 0.00 % 0.74 % 0.46 % Highest amount outstanding as of any month end during the year $ 72,814 $ 106,239 $ 77,886 Approximate average outstanding during the year 15,104 86,874 63,379 Approximate average interest rate during the year 0.86 % 0.58 % 0.39 % |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER BENEFIT PLANS | |
Schedule of Changes in Projected Benefit Obligations and Plan Assets | Information as to the Company’s employee benefit plans at December 31, 2019 and 2018 is as follows: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2019 2018 Change in benefit obligation: Beginning benefit obligation $ 2,118 $ 2,862 $ 924 $ 1,086 Interest cost 87 93 37 34 Actuarial (gain) loss 631 (325) 164 (62) Benefits paid (121) (512) (134) (134) Ending benefit obligation 2,715 2,118 991 924 Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value: Beginning plan assets 2,151 2,356 885 1,047 Actual return 415 (61) 163 (28) Employer contribution 27 368 0 0 Benefits paid (121) (512) (134) (134) Ending plan assets 2,472 2,151 914 885 Funded status at end of year $ (243) $ 33 $ (77) $ (39) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2019 2018 Funded status included in other liabilities $ (243) $ 33 $ (77) $ (39) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (loss) | Amounts recognized in accumulated other comprehensive income (loss) consist of: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2019 2018 Net actuarial loss $ 1,464 $ 1,242 $ 597 $ 615 |
Schedule of Components of Net Periodic Benefit Cost | Net period benefit cost and other amounts recognized in other comprehensive income (loss) include the following: Pension Benefits SERP Benefits (dollars in thousands) 2019 2018 2017 2019 2018 2017 Net pension expense: Service cost $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Interest cost 87 93 104 37 34 40 Expected return on plan assets (137) (138) (143) (55) (61) (63) Recognized net actuarial loss 132 193 185 73 73 80 Settlement cost 0 224 0 0 0 0 Net pension expense $ 82 $ 372 $ 146 $ 55 $ 46 $ 57 Net (gain) loss $ 353 $ (296) $ (36) $ 56 $ 27 $ (61) Amortization of net loss (132) (193) (185) (73) (73) (80) Total recognized in other comprehensive income (loss) 221 (489) (221) (17) (46) (141) Total recognized in net pension expense and other comprehensive income (loss) $ 303 $ (117) $ (75) $ 38 $ 0 $ (84) |
Schedule of Assumptions Used in Calculating the Net Benefit Obligation | Pension Benefits SERP Benefits 2019 2018 2017 2019 2018 2017 The following assumptions were used in calculating the net benefit obligation: Weighted average discount rate 2.98 % 4.08 % 3.46 % 2.98 % 4.08 % 3.46 % Rate of increase in future compensation N/A N/A N/A N/A N/A N/A Lump sum assumed interest rates First 5 years 2.01 % 3.33 % 2.05 % N/A N/A N/A Next 15 years 3.06 % 4.39 % 3.61 % N/A N/A N/A All future years 3.65 % 4.72 % 4.27 % N/A N/A N/A The following assumptions were used in calculating the net pension expense: Weighted average discount rate 4.08 % 3.46 % 3.86 % 4.08 % 3.46 % 3.86 % Rate of increase in future compensation N/A N/A N/A N/A N/A N/A Expected long-term rate of return 6.50 % 6.50 % 6.50 % 6.50 % 6.50 % 6.50 % |
Schedule of Allocation of Plan Assets | The Company's pension plan asset allocation at year-end 2019 and 2018, target allocation for 2020, and expected long-term rate of return by asset category are as follows: Percentage of Plan Weighted Target Assets Average Expected Allocation at Year End Long-Term Rate Asset Category 2020 2019 2018 of Return Equity securities 55-65 % 61 % 59 % 8.85 % Debt securities 35-45 % 36 % 40 % 3.00 % Other 5-10 % 3 % 1 % 0.10 % Total 100 % 100 % 6.50 % The Company’s SERP plan asset allocation at year-end 2019 and 2018, target allocation for 2020, and expected long-term rate of return by asset category are as follows: Percentage of Plan Weighted Target Assets Average Expected Allocation at Year End Long-Term Rate Asset Category 2020 2019 2018 of Return Equity securities 55-65 % 65 % 58 % 8.85 % Debt securities 35-45 % 34 % 40 % 3.00 % Other 5-10 % 1 % 2 % 0.10 % Total 100 % 100 % 6.50 % |
Schedule Of Fair Values Of Pension Plan and Postretirement Plan Assets By Asset Category | The fair values of the Company’s pension plan assets at December 31, 2019, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 912 $ 912 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 115 115 0 0 Equity securities - US small cap stock mutual funds 119 119 0 0 Equity securities - international stock mutual funds 257 257 0 0 Equity securities - emerging markets stock mutual funds 111 111 0 0 Debt securities - intermediate term bond mutual funds 402 402 0 0 Debt securities - short term bond mutual funds 480 480 0 0 Cash - money market account 74 74 0 0 Total $ 2,470 $ 2,470 $ 0 $ 0 The fair values of the Company’s pension plan assets at December 31, 2018, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2 ) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 784 $ 784 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 107 107 0 0 Equity securities - US small cap stock mutual funds 114 114 0 0 Equity securities - international stock mutual funds 225 225 0 0 Equity securities - emerging markets stock mutual funds 49 49 0 0 Debt securities - intermediate term bond mutual funds 309 309 0 0 Debt securities - short term bond mutual funds 543 543 0 0 Cash - money market account 17 17 0 0 Total $ 2,148 $ 2,148 $ 0 $ 0 The fair values of the Company’s SERP assets at December 31, 2019, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2 ) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 353 $ 353 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 46 46 0 0 Equity securities - US small cap stock mutual funds 47 47 0 0 Equity securities - emerging markets stock mutual funds 43 43 0 0 Equity securities - international stock mutual funds 100 100 0 0 Debt securities - intermediate term bond mutual funds 156 156 0 0 Debt securities - short term bond mutual funds 155 155 0 0 Cash - money market account 13 13 0 0 Total $ 913 $ 913 $ 0 $ 0 The fair values of the Company's SERP assets at December 31, 2018, by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) (dollars in thousands) Equity securities - US large cap common stocks $ 322 $ 322 $ 0 $ 0 Equity securities - US mid cap stock mutual funds 43 43 0 0 Equity securities - US small cap stock mutual funds 43 43 0 0 Equity securities - emerging markets stock mutual funds 18 18 0 0 Equity securities - international stock mutual funds 89 89 0 0 Debt securities - intermediate term bond mutual funds 123 123 0 0 Debt securities - short term bond mutual funds 231 231 0 0 Cash - money market account 15 15 0 0 Total $ 884 $ 884 $ 0 $ 0 |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid over the next ten years: Pension SERP Plan Year Benefits Benefits (dollars in thousands) 2020 $ 259 $ 132 2021 220 126 2022 228 120 2023 205 112 2024 202 103 2025-2029 870 364 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Scedule of Components of Income Tax Expense | Income tax expense for the years ended December 31, 2019, 2018 and 2017 consisted of the following: (dollars in thousands) 2019 2018 2017 Current federal $ 19,430 $ 16,871 $ 27,064 Deferred federal (408) 707 (199) Revalue deferred taxes due to tax reform 0 (408) 4,137 Current state 1,394 1,462 1,559 Deferred state (78) (99) (257) Total income tax expense $ 20,338 $ 18,533 $ 32,304 |
Schedule of Differences In Taxes From Continuing Operations | The differences between financial statement tax expense and amounts computed by applying the statutory federal income tax rate of 21% for 2019 and 2018 and 35% for 2017 to income before income taxes were as follows: (dollars in thousands) 2019 2018 2017 Income taxes at statutory federal rate of 21% (2019 and 2018) and 35% (2017) $ 22,551 $ 20,778 $ 31,372 Increase (decrease) in taxes resulting from: Tax exempt income (1,682) (1,434) (2,015) Nondeductible expense 194 165 193 State income tax, net of federal tax effect 1,040 1,077 846 Captive insurance premium income (310) (292) (378) Tax credits (548) (412) (326) Bank owned life insurance (573) (303) (619) Long - term incentive plan (421) (641) (854) Revaluation deferred tax asset at 21% rate 0 (408) 4,137 Other 87 3 (52) Total income tax expense $ 20,338 $ 18,533 $ 32,304 |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax asset recorded in the consolidated balance sheets at December 31, 2019 and 2018 consisted of the following: (dollars in thousands) 2019 2018 Deferred tax assets: Bad debts $ 12,945 $ 12,478 Pension and deferred compensation liability 1,505 1,188 Nonaccrual loan interest 1,104 937 Long-term incentive plan 2,281 2,357 Lease liability 1,303 0 Other 510 506 19,648 17,466 Deferred tax liabilities: Depreciation 4,741 4,583 Loan servicing rights 1,019 877 State taxes 464 447 Intangible assets 1,270 1,280 REIT spillover dividend 1,401 1,231 Prepaid expenses 795 786 Lease Right of Use 1,303 0 Other 382 475 11,375 9,679 Valuation allowance 0 0 Net deferred tax asset $ 8,273 $ 7,787 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | Loans to principal officers, directors, and their affiliates as of December 31, 2019 and 2018 were as follows: (dollars in thousands) 2019 2018 Beginning balance $ 83,546 $ 105,242 New loans and advances 55,465 94,542 Effect of changes in related parties (5,967) 0 Repayments and renewals (49,064) (116,238) Ending balance $ 83,980 $ 83,546 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STOCK BASED COMPENSATION | |
Schedule of Information on Stock Awards Exercised | (dollars in thousands) 2019 2018 2017 Total intrinsic value $ 0 $ 243 $ 44 Cash received 0 118 24 Actual tax benefit realized for tax deductions 0 0 0 |
Schedule of Restricted Stock Awards and Units | A summary of the changes in the Company’s non-vested shares for the year follows: Weighted-Average Grant-Date Nonvested Shares Shares Fair Value Nonvested at January 1, 2019 1,000 $ 48.14 Granted 19,100 44.59 Vested (16,600) 44.56 Nonvested at December 31, 2019 3,500 $ 45.70 |
Schedule of Nonvested Performance-based Units | Shares granted below include the number of shares assumed granted based on actual performance criteria of the 2019-2021, 2018-2020 and 2017-2019 Long-Term Incentive Plans at December 31, 2019. Weighted-Average Grant-Date Nonvested Shares Shares Fair Value Nonvested at January 1, 2019 368,503 $ 39.83 Granted 39,715 41.78 Vested (126,672) 29.23 Forfeited (4,461) 45.42 Nonvested at December 31, 2019 277,085 $ 44.86 |
CAPITAL REQUIREMENTS AND REST_2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | There have been no conditions or events since that notification that management believes have changed the Company and the Bank’s category. Minimum Required to Minimum Required For Capital Adequacy Be Well Capitalized For Capital Purposes Plus Capital Under Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total Capital (to Risk Weighted Assets) Consolidated $ 631,723 14.36 % $ 351,894 8.00 % $ 461,862 N/A N/A N/A Bank $ 616,386 14.04 % $ 351,227 8.00 % $ 460,985 10.50 % $ 439,034 10.00 % Tier I Capital (to Risk Weighted Assets) Consolidated $ 580,982 13.21 % $ 263,921 6.00 % $ 373,887 N/A N/A N/A Bank $ 565,645 12.88 % $ 263,420 6.00 % $ 373,179 8.50 % $ 351,227 8.00 % Common Equity Tier 1 (CET1) Consolidated $ 580,982 13.21 % $ 197,941 4.50 % $ 307,908 N/A N/A N/A Bank $ 565,645 12.88 % $ 197,565 4.50 % $ 307,324 7.00 % $ 285,372 6.50 % Tier I Capital (to Average Assets) Consolidated $ 580,982 11.67 % $ 199,099 4.00 % $ 199,099 N/A N/A N/A Bank $ 565,645 11.43 % $ 197,923 4.00 % $ 197,923 4.00 % $ 247,404 5.00 % As of December 31, 2018: Total Capital (to Risk Weighted Assets) Consolidated $ 601,379 14.20 % $ 338,690 8.00 % $ 418,070 N/A N/A N/A Bank $ 583,206 13.80 % $ 338,098 8.00 % $ 417,340 9.875 % $ 422,623 10.00 % Tier I Capital (to Risk Weighted Assets) Consolidated $ 552,836 13.06 % $ 254,017 6.00 % $ 333,398 N/A N/A N/A Bank $ 534,664 12.65 % $ 253,574 6.00 % $ 332,815 7.875 % $ 338,098 8.00 % Common Equity Tier 1 (CET1) Consolidated $ 522,836 12.35 % $ 190,513 4.50 % $ 269,893 N/A N/A N/A Bank $ 534,664 12.65 % $ 190,180 4.50 % $ 269,422 6.375 % $ 274,705 6.50 % Tier I Capital (to Average Assets) Consolidated $ 552,836 11.44 % $ 193,305 4.00 % $ 193,305 N/A N/A N/A Bank $ 534,664 11.06 % $ 193,312 4.00 % $ 193,312 4.00 % $ 241,639 5.00 % |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OFFSETTING ASSETS AND LIABILITIES. | |
Schedule of Offsetting Assets And Liability | The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at December 31, 2019 and 2018. December 31, 2019 Gross Gross Amounts Net Amounts Gross Amounts Not Amounts of Offset in the presented in Offset in the Statement Recognized Statement of the Statement of Financial Position Assets/ Financial of Financial Financial Cash Collateral Net (dollars in thousands) Liabilities Position Position Instruments Position Amount Assets Interest Rate Swap Derivatives $ 7,263 $ 0 $ 7,263 $ 0 $ 0 $ 7,263 Total Assets $ 7,263 $ 0 $ 7,263 $ 0 $ 0 $ 7,263 Liabilities Interest Rate Swap Derivatives $ 7,860 $ 0 $ 7,860 $ 0 $ (7,560) $ 300 Repurchase Agreements 0 0 0 0 0 0 Total Liabilities $ 7,860 $ 0 $ 7,860 $ 0 $ (7,560) $ 300 December 31, 2018 Gross Gross Amounts Net Amounts Gross Amounts Not Amounts of Offset in the presented in Offset in the Statement Recognized Statement of the Statement of Financial Position Assets/ Financial of Financial Financial Cash Collateral Net (dollars in thousands) Liabilities Position Position Instruments Position Amount Assets Interest Rate Swap Derivatives $ 3,869 $ 0 $ 3,869 $ 0 $ (760) $ 3,109 Total Assets $ 3,869 $ 0 $ 3,869 $ 0 $ (760) $ 3,109 Liabilities Interest Rate Swap Derivatives $ 4,025 $ 0 $ 4,025 $ 0 $ (560) $ 3,465 Repurchase Agreements 75,555 0 75,555 (75,555) 0 0 Total Liabilities $ 79,580 $ 0 $ 79,580 $ (75,555) $ (560) $ 3,465 |
COMMITMENTS, OFF-BALANCE SHEE_2
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES | |
Schedule of Financial Instruments Commitments | These financial instruments include commitments to make loans and open-ended revolving lines of credit. Amounts as of the years ended December 31, 2019 and 2018, were as follows: 2019 2018 Fixed Variable Fixed Variable (dollars in thousands) Rate Rate Rate Rate Commercial loan lines of credit $ 39,104 $ 1,451,704 $ 63,625 $ 1,337,437 Commercial letters of credit 0 0 0 3,245 Standby letters of credit 0 70,932 0 81,512 Real estate mortgage loans 4,448 1,488 2,811 2,881 Real estate construction mortgage loans 478 2,139 400 2,189 Home equity mortgage open-ended revolving lines 0 247,562 0 232,362 Consumer loan open-ended revolving lines 180 17,116 215 14,468 Total $ 44,210 $ 1,790,941 $ 67,051 $ 1,674,094 |
Schedule Of Rate Of Interest Percentage Financial Instruments | Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2019 and 2018, were as follows: 2019 2018 Fixed Variable Fixed Variable Rate Rate Rate Rate Commercial loan 0.75 - 14.50 % 2.65 - 9.25 % 0.75-14.50 % 2.65-10.00 % Real estate mortgage loan 3.13 - 4.00 % 3.75 - 4.25 % 3.75-6.13 % 3.75-11.00 % Consumer loan open-ended revolving line 15.00 % 3.88 - 15.00 % 15.00 % 3.88-15.00 % |
PARENT COMPANY STATEMENTS (Tabl
PARENT COMPANY STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY STATEMENTS | |
Schedule of Condensed Balance Sheet | CONDENSED BALANCE SHEETS December 31, (dollars in thousands) 2019 2018 ASSETS Deposits with Lake City Bank $ 1,762 $ 1,283 Deposits with other depository institutions 2,104 7,613 Cash 3,866 8,896 Investments in banking subsidiary 582,674 533,442 Investments in other subsidiaries 3,276 3,992 Other assets 8,457 6,468 Total assets $ 598,273 $ 552,798 LIABILITIES Dividends payable and other liabilities $ 262 $ 255 Subordinated debt 0 30,928 STOCKHOLDERS’ EQUITY 598,011 521,615 Total liabilities and stockholders’ equity $ 598,273 $ 552,798 |
Schedule of Condensed Income Statement | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (dollars in thousands) 2019 2018 2017 Dividends from Lake City Bank $ 57,842 $ 27,933 $ 21,822 Dividends from non-bank subsidiaries 1,302 1,010 1,030 Other income 155 171 57 Interest expense on subordinated debt (1,720) (1,643) (1,349) Miscellaneous expense (5,321) (6,422) (6,491) INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 52,258 21,049 15,069 Income tax benefit 2,256 2,795 2,688 INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 54,514 23,844 17,757 Equity in undistributed income of subsidiaries 32,533 56,567 39,573 NET INCOME $ 87,047 $ 80,411 $ 57,330 COMPREHENSIVE INCOME $ 105,297 $ 75,131 $ 59,047 |
Schedule of Condensed Cash Flow Statement | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 87,047 $ 80,411 $ 57,330 Adjustments to net cash from operating activities: Equity in undistributed income of subsidiaries (32,533) (56,567) (39,573) Other changes 3,529 7,294 3,586 Net cash from operating activities 58,043 31,138 21,343 Cash flows from financing activities Repayment of long-term debt (30,928) 0 0 Payments related to equity incentive plans (2,109) (2,435) (1,736) Purchase of treasury stock (515) (463) (495) Sales of treasury stock 118 115 0 Dividends paid (29,639) (25,278) (21,396) Cash flows from financing activities (63,073) (28,061) (23,627) Net increase (decrease) in cash and cash equivalents (5,030) 3,077 (2,284) Cash and cash equivalents at beginning of the year 8,896 5,819 8,103 Cash and cash equivalents at end of the year $ 3,866 $ 8,896 $ 5,819 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Schedule of weighted average number of shares | Following are the factors used in the earnings per share computations: (dollars in thousand except share and per share data) 2019 2018 2017 Basic earnings per common share: Net income $ 87,047 $ 80,411 $ 57,330 Weighted-average common shares outstanding 25,588,404 25,288,533 25,181,208 Basic earnings per common share $ 3.40 $ 3.18 $ 2.28 Diluted earnings per common share: Net income $ 87,047 $ 80,411 $ 57,330 Weighted-average common shares outstanding for basic earnings per common share 25,588,404 25,288,533 25,181,208 Add: Dilutive effect of assumed exercise of warrant 0 225,831 219,273 Add: Dilutive effect of assumed exercises of stock options and awards 170,489 213,467 262,900 Average shares and dilutive potential common shares 25,758,893 25,727,831 25,663,381 Diluted earnings per common share $ 3.38 $ 3.13 $ 2.23 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of Changes in Accumulated Other Comprehensive Income | The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for December 31, 2019 and 2018 all shown net of tax: Unrealized Gains and (Losses) on Defined Available- Benefit for-Sales Pension (dollars in thousands) Securities Items Total Balance at December 31, 2018 $ (4,796) $ (1,395) $ (6,191) Other comprehensive income (loss) before reclassification 18,515 (306) 18,209 Amounts reclassified from accumulated other comprehensive income (loss) (112) 153 41 Net current period other comprehensive income (loss) 18,403 (153) 18,250 Balance at December 31, 2019 $ 13,607 $ (1,548) $ 12,059 Unrealized Gains and (Losses) on Defined Available- Benefit for-Sales Pension (dollars in thousands) Securities Items Total Balance at December 31, 2017 $ 784 $ (1,454) $ (670) Other comprehensive income (loss) before reclassification (5,691) 175 (5,516) Amounts reclassified from accumulated other comprehensive income (loss) 39 197 236 Net current period other comprehensive income (loss) (5,652) 372 (5,280) Adoption of ASU 2018-02 140 (313) (173) Adoption of ASU 2016-01 (68) 0 (68) Balance at December 31, 2018 $ (4,796) $ (1,395) $ (6,191) |
Reclassification Accumulated Other Comprehensive Income | Reclassifications out of accumulated comprehensive income for the years ended December 31, 2019, 2018 and 2017 are as follows: Details about Amount Affected Line Item Accumulated Other Reclassified From in the Statement Comprehensive Accumulated Other Where Net Income (Loss) Components Comprehensive Income (Loss) Income is Presented 2019 (dollars in thousands) Realized gains and losses on available-for-sale securities $ 142 Net securities gains (losses) Tax effect (30) Income tax expense Subtotal 112 Net of tax Amortization of defined benefit pension items (1) (205) Salaries and employee benefits Tax effect 52 Income tax expense Subtotal (153) Net of tax Total reclassifications for the period $ (41) Net income 2018 (dollars in thousands) Realized gains and losses on available-for-sale securities $ (50) Net securities gains (losses) Tax effect 11 Income tax expense Subtotal (39) Net of tax Amortization of defined benefit pension items (1) (266) Salaries and employee benefits Tax effect 69 Income tax expense Subtotal (197) Net of tax Total reclassifications for the period $ (236) Net income 2017 (dollars in thousands) Realized gains and losses on available-for-sale securities $ 32 Net securities gains (losses) Tax effect (13) Income tax expense Subtotal 19 Net of tax Amortization of defined benefit pension items (1) (265) Salaries and employee benefits Tax effect 104 Income tax expense Subtotal (161) Net of tax Total reclassifications for the period $ (142) Net income (1) Included in the computation of net pension plan expense as more fully discussed in Note 11 – Pension and Other Postretirement Plans. |
SELECTED QUARTERLY DATA (UNAU_2
SELECTED QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SELECTED QUARTERLY DATA (UNAUDITED) | |
Schedule of Quarterly Financial Information | 4th 3rd 2nd 1st 2019 Quarter Quarter Quarter Quarter Interest income $ 52,312 $ 54,769 $ 54,635 $ 53,494 Interest expense 13,430 15,224 16,224 15,285 Net interest income 38,882 39,545 38,411 38,209 Provision for loan losses 250 1,000 785 1,200 Net interest income after provision 38,632 38,545 37,626 37,009 Noninterest income 11,119 10,765 11,588 11,525 Noninterest expense 22,122 22,737 22,092 22,473 Income tax expense 5,431 5,119 5,409 4,379 Net income $ 22,198 $ 21,454 $ 21,713 $ 21,682 Basic earnings per common share $ 0.86 $ 0.84 $ 0.85 $ 0.85 Diluted earnings per common share $ 0.86 $ 0.83 $ 0.85 $ 0.84 4th 3rd 2nd 1st 2018 Quarter Quarter Quarter Quarter Interest income $ 53,728 $ 50,379 $ 48,795 $ 46,068 Interest expense 14,138 12,454 11,262 9,845 Net interest income 39,590 37,925 37,533 36,223 Provision for loan losses 300 1,100 1,700 3,300 Net interest income after provision 39,290 36,825 35,833 32,923 Noninterest income 10,077 10,624 9,722 9,879 Noninterest expense 22,524 22,200 20,303 21,202 Income tax expense 5,480 4,679 5,110 3,264 Net income $ 21,363 $ 20,570 $ 20,142 $ 18,336 Basic earnings per common share $ 0.84 $ 0.81 $ 0.80 $ 0.73 Diluted earnings per common share $ 0.83 $ 0.80 $ 0.79 $ 0.71 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE RECOGNITION | |
Schedule of Revenue from External Customers by Products and Services | All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended 2019, 2018 and 2017. Items outside of scope of ASC 606 are noted as such. Year Ended December 31, 2019 2018 2017 (2) NONINTEREST INCOME Wealth advisory fees $ 6,835 $ 6,344 $ 5,481 Investment brokerage fees 1,687 1,458 1,273 Service charges on deposit accounts Service charges on commercial deposit acounts 10,082 10,234 8,230 Service charges on retail deposit acounts 880 879 905 Overdrafts, net 3,585 3,581 3,452 Other 1,170 1,137 1,109 Loan and service fees Debit card interchange fees 6,344 5,883 4,663 Loan fees (1) 2,544 2,423 2,231 Other 1,023 985 1,006 Merchant card fee income 2,641 2,461 2,279 Bank owned life insurance income (1) 1,890 1,244 1,768 Mortgage banking income (1) 1,626 1,150 982 Net securities gains (losses) (1) 142 (50) 32 Other income 4,548 2,573 2,629 Total noninterest income $ 44,997 $ 40,302 $ 36,040 (1) Not within scope of ASC 606 (2) The Company elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. As a result of this new standard, the only revenue streams with changes in reporting in the current periods compared to the prior year comparable periods are loan and service fees and other income. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of Maturity Analysis of the Operating Lease Liabilities | Operating Lease Years ending December 31, (in thousands) Obligation 2020 $ 561 2021 581 2022 595 2023 606 2024 622 2025 and thereafter 2,873 Total undiscounted lease payments 5,838 Less imputed interest (738) Lease liability $ 5,100 Right-of-use asset $ 5,100 |
Schedule of Lease Cost | Year Ended December 31,2019 Lease cost Operating lease cost $ 498 Short-term lease cost 24 Total lease cost $ 522 Other information Operating cash outflows from operating leases $ 498 Weighted-average remaining lease term - operating leases 9.8 years Weighted average discount rate - operating leases 2.8 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of Significant Accounting Policies [Line Items] | ||||
Accrued Interest On Loans | $ 11,500,000 | $ 11,800,000 | ||
Financing Receivable, Net | 250,000 | |||
Equity Method Investments | 6,700,000 | 7,000,000 | ||
Real Estate Acquired Through Foreclosure | 316,000 | 316,000 | ||
Servicing fees | $ 1,100,000 | $ 1,100,000 | $ 1,000,000 | |
Treasury Stock Shares | 178,741 | 172,959 | ||
Bank Owned Life Insurance | $ 83,848,000 | $ 77,106,000 | ||
Cash on hand or on deposit to meet regulatory reserve and clearing requirements | 28,900,000 | 6,400,000 | ||
Carrying value of mortgage servicing rights | 3,800,000 | 3,300,000 | ||
Unpaid principal balances | 337,900,000 | 343,500,000 | ||
Cash Available for Distributions | 1,600,000 | 2,100,000 | ||
Operating Lease, Right-of-Use Asset | 5,100,000 | |||
Accounting Standards Update 2017-08 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cumulative period adjustment made to retained earnings | $ 1,300,000 | |||
Accounting Standards Update 2016-02 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Operating Lease, Right-of-Use Asset | 5,500,000 | |||
Operating Lease, Liability, Noncurrent | 5,500,000 | |||
Cumulative period adjustment made to retained earnings | $ 0 | |||
Interest Rate Swap [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Notional amount | 349,600,000 | 258,000,000 | ||
Fair value of interest rate swap asset | 7,300,000 | 3,900,000 | ||
Fair value of interest rate swap liability | 7,900,000 | 4,000,000 | ||
Life Insurance [Member] | Officer [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Bank Owned Life Insurance | 79,800,000 | 73,900,000 | ||
Deferred Compensation Plan [Member] | Officer [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Bank Owned Life Insurance | $ 4,000,000 | $ 3,200,000 | ||
Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of increase in allowance for credit losses | 8.00% | |||
Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of increase in allowance for credit losses | 13.00% | |||
Premises and Improvements Assets [Member] | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Premises and Improvements Assets [Member] | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Equipment and Furniture Assets [Member] | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Equipment and Furniture Assets [Member] | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years |
SECURITIES - Fair Value and Amo
SECURITIES - Fair Value and Amortized Cost Of Securities Available For Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale securities | ||
Amortized Cost | $ 591,009 | $ 591,621 |
Gross Unrealized Gain | 17,841 | 2,795 |
Gross Unrealized Losses | (617) | (8,867) |
Fair Value | 608,233 | 585,549 |
US Treasury Securities | ||
Available for sale securities | ||
Amortized Cost | 994 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Losses | (7) | |
Fair Value | 987 | |
US Government Sponsored Agencies | ||
Available for sale securities | ||
Amortized Cost | 4,435 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Losses | (85) | |
Fair Value | 4,350 | |
Mortgage-backed securities residential | ||
Available for sale securities | ||
Amortized Cost | 283,817 | 329,516 |
Gross Unrealized Gain | 4,751 | 1,392 |
Gross Unrealized Losses | (387) | (5,496) |
Fair Value | 288,181 | 325,412 |
Mortgage-backed securities commercial | ||
Available for sale securities | ||
Amortized Cost | 36,712 | 38,712 |
Gross Unrealized Gain | 262 | 0 |
Gross Unrealized Losses | (2) | (571) |
Fair Value | 36,972 | 38,141 |
State and Municipal Securities | ||
Available for sale securities | ||
Amortized Cost | 270,480 | 217,964 |
Gross Unrealized Gain | 12,828 | 1,403 |
Gross Unrealized Losses | (228) | (2,708) |
Fair Value | $ 283,080 | $ 216,659 |
SECURITIES - Available Sale Of
SECURITIES - Available Sale Of Securities By Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of Available-for-sale Debt Securities | ||
Amortized Cost, Due in one year or less | $ 4,587 | |
Amortized Cost, Due after one year through five years | 15,115 | |
Amortized Cost, Due after five years through ten years | 24,962 | |
Amortized Cost, Due after ten years | 225,816 | |
Amortized Cost, Available for sale securities with maturities amortized cost | 270,480 | |
Amortized Cost, Mortgage-backed securities | 320,529 | |
Amortized Cost, Total debt securities | 591,009 | $ 591,621 |
Fair Value, Due in one year or less | 4,610 | |
Fair Value, Due after one year through five years | 15,453 | |
Fair Value, Due after five years through ten years | 26,061 | |
Fair Value, Due after ten years | 236,956 | |
Fair Value, Available for sale securities with maturities fair value | 283,080 | |
Fair Value, Mortgage-backed securities | 325,153 | |
Fair Value, Total debt securities | $ 608,233 | $ 585,549 |
SECURITIES - Sales Of Securitie
SECURITIES - Sales Of Securities Available For Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales of securities available for sale | |||
Proceeds | $ 57,114 | $ 15,302 | $ 40,877 |
Gross gains | 279 | 21 | 267 |
Gross losses | $ (137) | $ (71) | $ (235) |
Number of securities | 46 | 29 | 50 |
SECURITIES - Available Sale O_2
SECURITIES - Available Sale Of Securities Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities with unrealized losses | ||
Less than 12 months, Fair Value | $ 42,215 | $ 37,848 |
12 months or more, Fair value | 14,174 | 346,642 |
Total Fair value | 56,389 | 384,490 |
Less than 12 Months, Unrealized Losses | 342 | 136 |
12 Months or more, Unrealized Losses | 275 | 8,731 |
Total Unrealized Losses | 617 | 8,867 |
US Treasury Securities | ||
Securities with unrealized losses | ||
Less than 12 months, Fair Value | 0 | |
12 months or more, Fair value | 987 | |
Total Fair value | 987 | |
Less than 12 Months, Unrealized Losses | 0 | |
12 Months or more, Unrealized Losses | 7 | |
Total Unrealized Losses | 7 | |
US Government Sponsored Agencies | ||
Securities with unrealized losses | ||
Less than 12 months, Fair Value | 0 | |
12 months or more, Fair value | 4,350 | |
Total Fair value | 4,350 | |
Less than 12 Months, Unrealized Losses | 0 | |
12 Months or more, Unrealized Losses | 85 | |
Total Unrealized Losses | 85 | |
Mortgage-backed securities residential | ||
Securities with unrealized losses | ||
Less than 12 months, Fair Value | 23,436 | 11,619 |
12 months or more, Fair value | 14,174 | 217,182 |
Total Fair value | 37,610 | 228,801 |
Less than 12 Months, Unrealized Losses | 112 | 12 |
12 Months or more, Unrealized Losses | 275 | 5,484 |
Total Unrealized Losses | 387 | 5,496 |
Mortgage-backed securities commercial | ||
Securities with unrealized losses | ||
Less than 12 months, Fair Value | 4,591 | 0 |
12 months or more, Fair value | 0 | 38,141 |
Total Fair value | 4,591 | 38,141 |
Less than 12 Months, Unrealized Losses | 2 | 0 |
12 Months or more, Unrealized Losses | 0 | 571 |
Total Unrealized Losses | 2 | 571 |
State and Municipal Securities | ||
Securities with unrealized losses | ||
Less than 12 months, Fair Value | 14,188 | 26,229 |
12 months or more, Fair value | 0 | 85,982 |
Total Fair value | 14,188 | 112,211 |
Less than 12 Months, Unrealized Losses | 228 | 124 |
12 Months or more, Unrealized Losses | 0 | 2,584 |
Total Unrealized Losses | $ 228 | $ 2,708 |
SECURITIES - Securities With Un
SECURITIES - Securities With Unrealized Losses (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Number of securities with unrealized losses | |||
Number of available-for-sale securities in unrealized loss positions, less than 12 months | 19 | 40 | |
Number of available-for-sale securities in unrealized loss positions, 12 months or more | 6 | 207 | |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 25 | 247 | |
Debt securities with credit losses recognized in income | $ 0 | $ 0 | $ 0 |
US Treasury Securities | |||
Number of securities with unrealized losses | |||
Number of available-for-sale securities in unrealized loss positions, less than 12 months | 0 | ||
Number of available-for-sale securities in unrealized loss positions, 12 months or more | 1 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 1 | ||
US Government Sponsored Agencies | |||
Number of securities with unrealized losses | |||
Number of available-for-sale securities in unrealized loss positions, less than 12 months | 0 | ||
Number of available-for-sale securities in unrealized loss positions, 12 months or more | 2 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 2 | ||
Mortgage-backed securities residential | |||
Number of securities with unrealized losses | |||
Number of available-for-sale securities in unrealized loss positions, less than 12 months | 7 | 5 | |
Number of available-for-sale securities in unrealized loss positions, 12 months or more | 6 | 84 | |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 13 | 89 | |
Mortgage-backed securities commercial | |||
Number of securities with unrealized losses | |||
Number of available-for-sale securities in unrealized loss positions, less than 12 months | 1 | 0 | |
Number of available-for-sale securities in unrealized loss positions, 12 months or more | 0 | 9 | |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 1 | 9 | |
State and Municipal Securities | |||
Number of securities with unrealized losses | |||
Number of available-for-sale securities in unrealized loss positions, less than 12 months | 11 | 35 | |
Number of available-for-sale securities in unrealized loss positions, 12 months or more | 0 | 111 | |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 11 | 146 |
SECURITIES - Additional informa
SECURITIES - Additional information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale securities | ||
Available-for-sale Securities pledged as collateral | $ 59.3 | $ 164.7 |
LOANS - Total Loans Outstanding
LOANS - Total Loans Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans outstanding | ||||
Gross loans | $ 4,067,385 | $ 3,916,326 | ||
Less: Allowance for loan losses | (50,652) | (48,453) | $ (47,121) | $ (43,718) |
Net deferred loan fees | (1,557) | (1,581) | ||
Loans, net | 4,015,176 | 3,866,292 | ||
Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 3,592,023 | 3,441,184 | ||
Other consumer loans | ||||
Loans outstanding | ||||
Gross loans | 98,617 | 86,064 | ||
Consumer loan open-ended revolving line | ||||
Loans outstanding | ||||
Gross loans | 475,362 | 475,142 | ||
Commercial and Industrial Loans | ||||
Loans outstanding | ||||
Less: Allowance for loan losses | (25,789) | (22,518) | (21,097) | (20,272) |
Commercial and Industrial Loans | Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 1,426,868 | 1,405,379 | ||
Commercial and Industrial Loans | Working capital lines of credit loans | ||||
Loans outstanding | ||||
Gross loans | 709,849 | 690,620 | ||
Commercial and Industrial Loans | Non-working capital loans | ||||
Loans outstanding | ||||
Gross loans | 717,019 | 714,759 | ||
Commercial Real Estate and Multi-family Residential Loans | Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 1,673,322 | 1,569,635 | ||
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||||
Loans outstanding | ||||
Gross loans | 287,641 | 266,805 | ||
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||||
Loans outstanding | ||||
Gross loans | 573,665 | 586,325 | ||
Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||||
Loans outstanding | ||||
Gross loans | 571,364 | 520,901 | ||
Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||||
Loans outstanding | ||||
Gross loans | 240,652 | 195,604 | ||
Agri-business and Agricultural Loans | ||||
Loans outstanding | ||||
Less: Allowance for loan losses | (3,869) | (4,305) | $ (4,920) | $ (3,532) |
Agri-business and Agricultural Loans | Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 379,531 | 370,513 | ||
Agri-business and Agricultural Loans | Loans secured by farmland | Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 174,380 | 177,503 | ||
Agri-business and Agricultural Loans | Loans for agricultural production | Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 205,151 | 193,010 | ||
Other Commercial Loans | Commercial Portfolio Segment | ||||
Loans outstanding | ||||
Gross loans | 112,302 | 95,657 | ||
Total Consumer 1 To 4 Family Mortgage Loans | ||||
Loans outstanding | ||||
Gross loans | 376,745 | 389,078 | ||
Total Consumer 1 To 4 Family Mortgage Loans | Closed end first mortgage loans | ||||
Loans outstanding | ||||
Gross loans | 177,227 | 185,822 | ||
Total Consumer 1 To 4 Family Mortgage Loans | Open end and junior lien loans | ||||
Loans outstanding | ||||
Gross loans | 186,552 | 187,030 | ||
Total Consumer 1 To 4 Family Mortgage Loans | Residential construction and land development loans | ||||
Loans outstanding | ||||
Gross loans | $ 12,966 | $ 16,226 |
LOANS - Additional information
LOANS - Additional information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
LOANS | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 1,600,000 | $ 586,000 |
ALLOWANCE FOR LOAN LOSSES AND_3
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | $ 48,453 | $ 47,121 | $ 43,718 |
Provision for loan losses | 3,235 | 6,400 | 3,000 |
Loans charged-off | (1,910) | (6,111) | (1,560) |
Recoveries | 874 | 1,043 | 1,963 |
Net loans (charged-off) recovered | (1,036) | (5,068) | 403 |
Ending balance | 50,652 | 48,453 | 47,121 |
Commercial and Industrial Loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 22,518 | 21,097 | 20,272 |
Provision for loan losses | 4,259 | 5,884 | 614 |
Loans charged-off | (1,447) | (5,215) | (842) |
Recoveries | 459 | 752 | 1,053 |
Net loans (charged-off) recovered | (988) | (4,463) | 211 |
Ending balance | 25,789 | 22,518 | 21,097 |
Commercial Real Estate and Multi-family Residential Loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 15,393 | 14,714 | 13,452 |
Provision for loan losses | 259 | 1,140 | 997 |
Loans charged-off | (17) | (491) | (406) |
Recoveries | 161 | 30 | 671 |
Net loans (charged-off) recovered | 144 | (461) | 265 |
Ending balance | 15,796 | 15,393 | 14,714 |
Agri-business and Agricultural Loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 4,305 | 4,920 | 3,532 |
Provision for loan losses | (444) | (657) | 1,365 |
Loans charged-off | 0 | 0 | 0 |
Recoveries | 8 | 42 | 23 |
Net loans (charged-off) recovered | 8 | 42 | 23 |
Ending balance | 3,869 | 4,305 | 4,920 |
Other Commercial | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 368 | 577 | 461 |
Provision for loan losses | 79 | (209) | 116 |
Loans charged-off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net loans (charged-off) recovered | 0 | 0 | 0 |
Ending balance | 447 | 368 | 577 |
Consumer 1-4 Family Mortgage Loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 2,292 | 2,768 | 2,827 |
Provision for loan losses | (219) | (536) | (105) |
Loans charged-off | (110) | (48) | (53) |
Recoveries | 123 | 108 | 99 |
Net loans (charged-off) recovered | 13 | 60 | 46 |
Ending balance | 2,086 | 2,292 | 2,768 |
Other Consumer | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 283 | 379 | 387 |
Provision for loan losses | 275 | 150 | 134 |
Loans charged-off | (336) | (357) | (259) |
Recoveries | 123 | 111 | 117 |
Net loans (charged-off) recovered | (213) | (246) | (142) |
Ending balance | 345 | 283 | 379 |
Unallocated | |||
Financing Receivable, Allowance for Credit Losses | |||
Beginning balance | 3,294 | 2,666 | 2,787 |
Provision for loan losses | (974) | 628 | (121) |
Loans charged-off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net loans (charged-off) recovered | 0 | 0 | 0 |
Ending balance | $ 2,320 | $ 3,294 | $ 2,666 |
ALLOWANCE FOR LOAN LOSSES AND_4
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Balance In The Allowance For Loan Losses And The Recorded Investment In Loans By Portfolio Management (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 10,384 | $ 10,029 | ||
Collectively evaluated for impairment | 40,268 | 38,424 | ||
Total ending allowance balance | 50,652 | 48,453 | $ 47,121 | $ 43,718 |
Loans: | ||||
Loans individually evaluated for impairment | 27,829 | 26,717 | ||
Loans collectively evaluated for impairment | 4,037,999 | 3,888,028 | ||
Total ending loans balance | 4,065,828 | 3,914,745 | ||
Commercial and Industrial Loans | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 9,324 | 8,552 | ||
Collectively evaluated for impairment | 16,465 | 13,966 | ||
Total ending allowance balance | 25,789 | 22,518 | 21,097 | 20,272 |
Loans: | ||||
Loans individually evaluated for impairment | 19,580 | 19,734 | ||
Loans collectively evaluated for impairment | 1,407,246 | 1,385,604 | ||
Total ending loans balance | 1,426,826 | 1,405,338 | ||
Commercial Real Estate and Multi-family Residential Loans | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 538 | 921 | ||
Collectively evaluated for impairment | 15,258 | 14,472 | ||
Total ending allowance balance | 15,796 | 15,393 | 14,714 | 13,452 |
Loans: | ||||
Loans individually evaluated for impairment | 4,998 | 4,266 | ||
Loans collectively evaluated for impairment | 1,665,842 | 1,562,899 | ||
Total ending loans balance | 1,670,840 | 1,567,165 | ||
Agri-business and Agricultural Loans | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 90 | 73 | ||
Collectively evaluated for impairment | 3,779 | 4,232 | ||
Total ending allowance balance | 3,869 | 4,305 | 4,920 | 3,532 |
Loans: | ||||
Loans individually evaluated for impairment | 445 | 433 | ||
Loans collectively evaluated for impairment | 379,186 | 370,174 | ||
Total ending loans balance | 379,631 | 370,607 | ||
Other Commercial | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 447 | 368 | ||
Total ending allowance balance | 447 | 368 | 577 | 461 |
Loans: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 112,166 | 95,520 | ||
Total ending loans balance | 112,166 | 95,520 | ||
Consumer 1-4 Family Mortgage Loans | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 426 | 457 | ||
Collectively evaluated for impairment | 1,660 | 1,835 | ||
Total ending allowance balance | 2,086 | 2,292 | 2,768 | 2,827 |
Loans: | ||||
Loans individually evaluated for impairment | 2,789 | 2,240 | ||
Loans collectively evaluated for impairment | 375,210 | 388,053 | ||
Total ending loans balance | 377,999 | 390,293 | ||
Other Consumer | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 6 | 26 | ||
Collectively evaluated for impairment | 339 | 257 | ||
Total ending allowance balance | 345 | 283 | 379 | 387 |
Loans: | ||||
Loans individually evaluated for impairment | 17 | 44 | ||
Loans collectively evaluated for impairment | 98,349 | 85,778 | ||
Total ending loans balance | 98,366 | 85,822 | ||
Unallocated | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,320 | 3,294 | ||
Total ending allowance balance | 2,320 | 3,294 | $ 2,666 | $ 2,787 |
Loans: | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 0 | 0 | ||
Total ending loans balance | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES AND_5
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Loans Individually Evaluated For Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid Principal Balance | $ 30,422 | $ 32,194 | |
Recorded Investment | 27,829 | 26,717 | |
Allowance for Loan Losses Allocated | 10,384 | 10,029 | |
Average Recorded Investment | 26,464 | 18,035 | $ 18,570 |
Interest Income Recognized | 770 | 442 | 584 |
Cash Basis Interest Income Recognized | 651 | 306 | 549 |
Other Consumer Loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with an allowance recorded | 17 | 45 | |
Recorded investment with an allowance recorded | 17 | 44 | |
Allowance for loans losses allocated with an allowance recorded | 6 | 26 | |
Average Recorded Investment with an allowance recorded | 21 | 47 | |
Interest Income Recognized with an allowance recorded | 2 | 3 | |
Cash basis interest income recognized with an allowance recorded | 1 | 3 | |
Commercial and Industrial Loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Allowance for Loan Losses Allocated | 9,324 | 8,552 | |
Commercial and Industrial Loans | Working capital lines of credit loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 22 | ||
Unpaid principal balance with an allowance recorded | 6,214 | 9,691 | |
Recorded Investment with no related allowance recorded | 22 | ||
Recorded investment with an allowance recorded | 6,214 | 6,694 | |
Allowance for loan losses allocated with no related allowance recorded | 0 | ||
Allowance for loans losses allocated with an allowance recorded | 3,089 | 2,602 | |
Average Recorded Investment with no related allowance recorded | 176 | 785 | 407 |
Average Recorded Investment with an allowance recorded | 6,335 | 3,307 | 2,083 |
Interest Income Recognized with no related allowance recorded | 9 | 26 | 46 |
Interest Income Recognized with an allowance recorded | 143 | 74 | 17 |
Cash basis interest income recognized with no related allowance recorded | 9 | 23 | 39 |
Cash basis interest income recognized with an allowance recorded | 81 | 12 | 17 |
Commercial and Industrial Loans | Non-working capital loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 2,130 | 3,284 | |
Unpaid principal balance with an allowance recorded | 13,230 | 11,099 | |
Recorded Investment with no related allowance recorded | 735 | 1,889 | |
Recorded investment with an allowance recorded | 12,609 | 11,151 | |
Allowance for loan losses allocated with no related allowance recorded | 0 | 0 | |
Allowance for loans losses allocated with an allowance recorded | 6,235 | 5,950 | |
Average Recorded Investment with no related allowance recorded | 1,170 | 1,862 | 1,341 |
Average Recorded Investment with an allowance recorded | 11,800 | 5,328 | 5,715 |
Interest Income Recognized with no related allowance recorded | 40 | 74 | 57 |
Interest Income Recognized with an allowance recorded | 448 | 138 | 103 |
Cash basis interest income recognized with no related allowance recorded | 30 | 68 | 51 |
Cash basis interest income recognized with an allowance recorded | 410 | 81 | 103 |
Commercial Real Estate and Multi-family Residential Loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Allowance for Loan Losses Allocated | 538 | 921 | |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with an allowance recorded | 291 | ||
Recorded investment with an allowance recorded | 291 | ||
Allowance for loans losses allocated with an allowance recorded | 142 | ||
Average Recorded Investment with no related allowance recorded | 58 | 110 | |
Average Recorded Investment with an allowance recorded | 453 | 69 | |
Interest Income Recognized with no related allowance recorded | 5 | 5 | |
Interest Income Recognized with an allowance recorded | 26 | 5 | |
Cash basis interest income recognized with no related allowance recorded | 4 | 5 | |
Cash basis interest income recognized with an allowance recorded | 29 | 0 | |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 3,189 | 1,773 | |
Unpaid principal balance with an allowance recorded | 1,988 | 2,938 | |
Recorded Investment with no related allowance recorded | 3,010 | 1,527 | |
Recorded investment with an allowance recorded | 1,988 | 2,448 | |
Allowance for loan losses allocated with no related allowance recorded | 0 | 0 | |
Allowance for loans losses allocated with an allowance recorded | 538 | 779 | |
Average Recorded Investment with no related allowance recorded | 2,354 | 2,291 | 2,349 |
Average Recorded Investment with an allowance recorded | 1,849 | 1,631 | 1,664 |
Interest Income Recognized with no related allowance recorded | 34 | 36 | 17 |
Interest Income Recognized with an allowance recorded | 43 | 9 | 3 |
Cash basis interest income recognized with no related allowance recorded | 34 | 37 | 15 |
Cash basis interest income recognized with an allowance recorded | 39 | 1 | 2 |
Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Average Recorded Investment with no related allowance recorded | 3,009 | ||
Interest Income Recognized with no related allowance recorded | 294 | ||
Cash basis interest income recognized with no related allowance recorded | 284 | ||
Agri-business and Agricultural Loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Allowance for Loan Losses Allocated | 90 | 73 | |
Agri-business and Agricultural Loans | Loans secured by farmland | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 603 | 603 | |
Unpaid principal balance with an allowance recorded | 147 | 150 | |
Recorded Investment with no related allowance recorded | 283 | 283 | |
Recorded investment with an allowance recorded | 147 | 150 | |
Allowance for loan losses allocated with no related allowance recorded | 0 | 0 | |
Allowance for loans losses allocated with an allowance recorded | 90 | 73 | |
Average Recorded Investment with no related allowance recorded | 283 | 283 | 287 |
Average Recorded Investment with an allowance recorded | 147 | 12 | 2 |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 |
Interest Income Recognized with an allowance recorded | 3 | 1 | 0 |
Cash basis interest income recognized with no related allowance recorded | 0 | 0 | 0 |
Cash basis interest income recognized with an allowance recorded | 1 | 0 | 0 |
Agri-business and Agricultural Loans | Loans for agricultural production | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 15 | ||
Recorded Investment with no related allowance recorded | 15 | ||
Allowance for loan losses allocated with no related allowance recorded | 0 | ||
Average Recorded Investment with no related allowance recorded | 4 | ||
Interest Income Recognized with no related allowance recorded | 0 | ||
Cash basis interest income recognized with no related allowance recorded | 0 | ||
Agri-business and Agricultural Loans | Open end and junior lien loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with an allowance recorded | 641 | ||
Recorded investment with an allowance recorded | 640 | ||
Allowance for loans losses allocated with an allowance recorded | 53 | ||
Agri-business and Agricultural Loans | Residential construction loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with an allowance recorded | 51 | ||
Recorded investment with an allowance recorded | 52 | ||
Allowance for loans losses allocated with an allowance recorded | 10 | ||
Consumer 1-4 Family Mortgage Loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Allowance for Loan Losses Allocated | 426 | 457 | |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 411 | 583 | |
Unpaid principal balance with an allowance recorded | 1,643 | 1,517 | |
Recorded Investment with no related allowance recorded | 330 | 502 | |
Recorded investment with an allowance recorded | 1,646 | 1,518 | |
Allowance for loan losses allocated with no related allowance recorded | 0 | 0 | |
Allowance for loans losses allocated with an allowance recorded | 363 | 457 | |
Average Recorded Investment with no related allowance recorded | 272 | 521 | 293 |
Average Recorded Investment with an allowance recorded | 1,643 | 1,214 | 1,006 |
Interest Income Recognized with no related allowance recorded | 3 | 13 | 9 |
Interest Income Recognized with an allowance recorded | 45 | 37 | 25 |
Cash basis interest income recognized with no related allowance recorded | 3 | 12 | 8 |
Cash basis interest income recognized with an allowance recorded | 43 | 36 | 22 |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Unpaid principal balance with no related allowance recorded | 121 | 220 | |
Recorded Investment with no related allowance recorded | 121 | 220 | |
Allowance for loan losses allocated with no related allowance recorded | 0 | 0 | |
Average Recorded Investment with no related allowance recorded | 133 | 205 | 103 |
Average Recorded Investment with an allowance recorded | 268 | 38 | 80 |
Interest Income Recognized with no related allowance recorded | 0 | 0 | 0 |
Interest Income Recognized with an allowance recorded | 0 | 0 | 0 |
Cash basis interest income recognized with no related allowance recorded | 0 | 0 | 0 |
Cash basis interest income recognized with an allowance recorded | 0 | $ 0 | 0 |
Consumer 1-4 Family Mortgage Loans | Residential construction loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Average Recorded Investment with an allowance recorded | 9 | ||
Interest Income Recognized with an allowance recorded | 0 | ||
Cash basis interest income recognized with an allowance recorded | $ 0 | ||
Consumer 1-4 Family Mortgage Loans | Other Consumer Loans | |||
Loans Individually Evaluated for Impairment [Abstract] | |||
Average Recorded Investment with an allowance recorded | 52 | ||
Interest Income Recognized with an allowance recorded | 3 | ||
Cash basis interest income recognized with an allowance recorded | $ 3 |
ALLOWANCE FOR LOAN LOSSES AND_6
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Aging Of The Recorded Investment In Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | $ 4,045,634 | $ 3,897,455 |
30 to 89 Days Past Due | 1,474 | 10,025 |
90 Days Past Due and Still Accruing | 45 | 0 |
Nonaccrual | 18,675 | 7,265 |
Total Past Due and Nonaccural | 20,194 | 17,290 |
Total | 4,065,828 | 3,914,745 |
Other Commercial Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 112,166 | 95,520 |
30 to 89 Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccural | 0 | 0 |
Total | 112,166 | 95,520 |
Other Commercial Loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total | 1,426,826 | 1,405,338 |
Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 703,737 | 684,191 |
30 to 89 Days Past Due | 10 | 4,328 |
Nonaccrual | 6,236 | 2,245 |
Total Past Due and Nonaccural | 6,246 | 6,573 |
Total | 709,983 | 690,764 |
Commercial and Industrial Loans | Working capital lines of credit loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 710,557 | 709,629 |
30 to 89 Days Past Due | 4 | 3,368 |
Nonaccrual | 6,282 | 1,577 |
Total Past Due and Nonaccural | 6,286 | 4,945 |
Total | 716,843 | 714,574 |
Commercial and Industrial Loans | Non-working capital loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total | 1,670,840 | 1,567,165 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 286,534 | 265,544 |
30 to 89 Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccural | 0 | 0 |
Total | 286,534 | 265,544 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 569,303 | 583,214 |
30 to 89 Days Past Due | 0 | 486 |
Nonaccrual | 4,056 | 2,269 |
Total Past Due and Nonaccural | 4,056 | 2,755 |
Total | 573,359 | 585,969 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 570,687 | 520,431 |
30 to 89 Days Past Due | 0 | 57 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccural | 0 | 57 |
Total | 570,687 | 520,488 |
Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 240,260 | 195,164 |
30 to 89 Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccural | 0 | 0 |
Total | 240,260 | 195,164 |
Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Agri-business and Agricultural Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total | 379,631 | 370,607 |
Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 173,959 | 177,080 |
30 to 89 Days Past Due | 0 | 150 |
Nonaccrual | 430 | 283 |
Total Past Due and Nonaccural | 430 | 433 |
Total | 174,389 | 177,513 |
Agri-business and Agricultural Loans | Loans secured by farmland | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 205,228 | 193,094 |
30 to 89 Days Past Due | 0 | 0 |
Nonaccrual | 14 | 0 |
Total Past Due and Nonaccural | 14 | 0 |
Total | 205,242 | 193,094 |
Agri-business and Agricultural Loans | Loans for agricultural production | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer 1-4 Family Mortgage Loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total | 377,999 | 390,293 |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 174,902 | 183,420 |
30 to 89 Days Past Due | 1,099 | 1,370 |
90 Days Past Due and Still Accruing | 45 | 0 |
Nonaccrual | 827 | 671 |
Total Past Due and Nonaccural | 1,971 | 2,041 |
Total | 176,873 | 185,461 |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 187,255 | 188,320 |
30 to 89 Days Past Due | 188 | 98 |
Nonaccrual | 761 | 220 |
Total Past Due and Nonaccural | 949 | 318 |
Total | 188,204 | 188,638 |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 12,870 | 16,194 |
30 to 89 Days Past Due | 0 | 0 |
Nonaccrual | 52 | 0 |
Total Past Due and Nonaccural | 52 | 0 |
Total | 12,922 | 16,194 |
Consumer 1-4 Family Mortgage Loans | Residential construction loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer 1-4 Family Mortgage Loans | Other consumer loans | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans Not Past Due | 98,176 | 85,654 |
30 to 89 Days Past Due | 173 | 168 |
Nonaccrual | 17 | 0 |
Total Past Due and Nonaccural | 190 | 168 |
Total | 98,366 | 85,822 |
Consumer 1-4 Family Mortgage Loans | Other consumer loans | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
90 Days Past Due and Still Accruing | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES AND_7
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Troubled Debt Restructuring [Abstract] | ||
Accruing troubled debt restructured loans | $ 5,909 | $ 8,016 |
Nonaccrual troubled debt restructured loans | 3,188 | 4,384 |
Total troubled debt restructured loans | $ 9,097 | $ 12,400 |
ALLOWANCE FOR LOAN LOSSES AND_8
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Loans By Class Modified As Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Modified Repayment Terms | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | 12 | 8 |
Extension period for modified repayment terms | 1 month | ||
Modified Repayment Terms | Minimum | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Extension period for modified repayment terms | 0 months | 0 months | |
Modified Repayment Terms | Maximum | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Extension period for modified repayment terms | 239 months | 350 months | |
All Modifications | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | 12 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 35 | $ 7,183 | $ 3,852 |
Post-Modification Outstanding Recorded Investment | $ 35 | $ 7,182 | $ 3,854 |
Commercial and Industrial Loans | Working capital lines of credit loans | Modified Repayment Terms | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | 1 | 1 |
Extension period for modified repayment terms | 1 month | 0 months | 9 months |
Commercial and Industrial Loans | Working capital lines of credit loans | All Modifications | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 35 | $ 600 | $ 1,324 |
Post-Modification Outstanding Recorded Investment | $ 35 | $ 600 | $ 1,324 |
Commercial and Industrial Loans | Non-working capital loans | Modified Repayment Terms | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 7 | ||
Commercial and Industrial Loans | Non-working capital loans | Modified Repayment Terms | Minimum | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Extension period for modified repayment terms | 0 months | 0 months | |
Commercial and Industrial Loans | Non-working capital loans | Modified Repayment Terms | Maximum | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Extension period for modified repayment terms | 6 months | 6 months | |
Commercial and Industrial Loans | Non-working capital loans | All Modifications | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 7 | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 4,628 | $ 1,922 | |
Post-Modification Outstanding Recorded Investment | $ 4,628 | $ 1,922 | |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | Modified Repayment Terms | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 2 | 1 | |
Extension period for modified repayment terms | 12 months | 6 months | |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | All Modifications | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 2 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 933 | $ 486 | |
Post-Modification Outstanding Recorded Investment | $ 933 | $ 486 | |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | Modified Repayment Terms | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | ||
Extension period for modified repayment terms | 12 months | ||
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | All Modifications | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 824 | ||
Post-Modification Outstanding Recorded Investment | $ 824 | ||
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | Modified Repayment Terms | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | 2 | |
Extension period for modified repayment terms | 239 months | ||
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | Modified Repayment Terms | Minimum | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Extension period for modified repayment terms | 198 months | ||
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | Modified Repayment Terms | Maximum | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Extension period for modified repayment terms | 350 months | ||
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | All Modifications | |||
Troubled Debt Restructurings Modified During Period [Abstract] | |||
Number of Loans | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 198 | $ 120 | |
Post-Modification Outstanding Recorded Investment | $ 197 | $ 122 |
ALLOWANCE FOR LOAN LOSSES AND_9
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Troubled Debt Restructurings Subsequently Defaulted (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | |
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Subsequently Defaulted , Number of Loans | item | 1 | 0 | |
Troubled Debt Restructurings, Subsequently Defaulted, Recorded Investment | $ | $ 601 | $ 0 | $ 0 |
Non-working capital loans | Commercial and Industrial Loans | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Subsequently Defaulted , Number of Loans | item | 1 | 0 | 0 |
Troubled Debt Restructurings, Subsequently Defaulted, Recorded Investment | $ | $ 601 | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES AN_10
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | $ 4,065,828 | $ 3,914,745 |
Other Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 112,166 | 95,520 |
Other Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 98,366 | 85,822 |
Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 1,426,826 | 1,405,338 |
Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 709,983 | 690,764 |
Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 716,843 | 714,574 |
Commercial Real Estate and Multi-family Residential Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 1,670,840 | 1,567,165 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 286,534 | 265,544 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 573,359 | 585,969 |
Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 570,687 | 520,488 |
Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 240,260 | 195,164 |
Agri-business and Agricultural Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 379,631 | 370,607 |
Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 174,389 | 177,513 |
Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 205,242 | 193,094 |
Consumer 1-4 Family Mortgage Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 377,999 | 390,293 |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 176,873 | 185,461 |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 188,204 | 188,638 |
Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 12,922 | 16,194 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 3,490,863 | 3,324,054 |
Pass | Other Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 112,166 | 95,516 |
Pass | Other Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 27,250 | 12,700 |
Pass | Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 631,728 | 618,612 |
Pass | Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 673,370 | 664,787 |
Pass | Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 286,534 | 264,900 |
Pass | Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 535,496 | 541,734 |
Pass | Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 569,315 | 517,356 |
Pass | Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 240,260 | 194,948 |
Pass | Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 165,005 | 166,623 |
Pass | Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 191,489 | 183,189 |
Pass | Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 47,405 | 54,879 |
Pass | Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 10,845 | 8,810 |
Pass | Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 96,608 | 101,418 |
Special Mention | Other Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Special Mention | Other Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Special Mention | Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 40,551 | 43,240 |
Special Mention | Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 18,782 | 15,992 |
Special Mention | Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 353 |
Special Mention | Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 14,804 | 21,864 |
Special Mention | Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 781 | 2,491 |
Special Mention | Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 216 |
Special Mention | Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 7,952 | 9,107 |
Special Mention | Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 13,738 | 8,155 |
Special Mention | Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Special Mention | Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Special Mention | Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 84,562 | 85,232 |
Substandard | Other Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Substandard | Other Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 17 | 44 |
Substandard | Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 37,278 | 28,563 |
Substandard | Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 19,381 | 27,548 |
Substandard | Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 291 |
Substandard | Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 23,059 | 22,371 |
Substandard | Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 591 | 641 |
Substandard | Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Substandard | Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 1,432 | 1,783 |
Substandard | Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 15 | 1,750 |
Substandard | Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 1,976 | 2,021 |
Substandard | Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 762 | 220 |
Substandard | Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 51 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Other Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Other Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Doubtful | Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 393,795 | 404,041 |
Not Rated | Other Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 4 |
Not Rated | Other Consumer Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 71,099 | 73,078 |
Not Rated | Commercial and Industrial Loans | Working capital lines of credit loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 426 | 349 |
Not Rated | Commercial and Industrial Loans | Non-working capital loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 5,310 | 6,247 |
Not Rated | Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | Commercial Real Estate and Multi-family Residential Loans | Nonowner occupied loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | Commercial Real Estate and Multi-family Residential Loans | Multi-family loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | Agri-business and Agricultural Loans | Loans secured by farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | Agri-business and Agricultural Loans | Loans for agricultural production | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 0 | 0 |
Not Rated | Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 127,492 | 128,561 |
Not Rated | Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | 176,597 | 179,608 |
Not Rated | Consumer 1-4 Family Mortgage Loans | Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total ending loans balance | $ 12,871 | $ 16,194 |
ALLOWANCE FOR LOAN LOSSES AN_11
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Troubled Debt Restructuring [Abstract] | |||
Loans Modified In Troubled Debt Restructured Loans | $ 2,500,000 | $ 3,700,000 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | 601,000 | 0 | $ 0 |
Loan amount of credit quality analysis | 250,000 | ||
Construction and land development loans | |||
Troubled Debt Restructuring [Abstract] | |||
Financing Receivable, Modifications, Recorded Investment | 2,400,000 | 1,400,000 | |
Commercial and Industrial Loans | |||
Troubled Debt Restructuring [Abstract] | |||
Increase (decrease) in allowance for loan loss | 513,000 | ||
Financing Receivable, Modifications, Recorded Investment | 1,900,000 | ||
Commercial and Industrial Loans | Non-working capital loans | |||
Troubled Debt Restructuring [Abstract] | |||
Financing Receivable, Modifications, Recorded Investment | 2,500,000 | ||
Commercial Real Estate and Multi-family Residential Loans | |||
Troubled Debt Restructuring [Abstract] | |||
Increase (decrease) in allowance for loan loss | $ 27,000 | ||
Financing Receivable, Modifications, Recorded Investment | 1,900,000 | 1,300,000 | |
Consumer 1-4 Family Mortgage Loans | |||
Troubled Debt Restructuring [Abstract] | |||
Increase (decrease) in allowance for loan loss | $ 484,000 | 189,000 | |
Financing Receivable, Modifications, Recorded Investment | $ 593,000 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Securities available-for-sale | $ 608,233 | $ 585,549 |
Mortgage banking derivative | 7,263 | 3,109 |
Liabilities | ||
Mortgage banking derivative | 300 | 3,465 |
Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. Treasury securities | 987 | |
U.S. government sponsored agency securities | 4,350 | |
Mortgage-backed securities: residential | 288,181 | 325,412 |
Mortgage-backed securities: commercial | 36,972 | 38,141 |
State and municipal securities | 283,080 | 216,659 |
Securities available-for-sale | 608,233 | 585,549 |
Mortgage banking derivative | 198 | 95 |
Interest rate swap derivative | 7,263 | 3,869 |
Total assets | 615,694 | 589,513 |
Liabilities | ||
Mortgage banking derivative | 14 | 23 |
Interest rate swap derivative | 7,860 | 4,025 |
Total liabilities | 7,874 | 4,048 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. Treasury securities | 987 | |
U.S. government sponsored agency securities | 0 | |
Mortgage-backed securities: residential | 0 | 0 |
Mortgage-backed securities: commercial | 0 | 0 |
State and municipal securities | 0 | 0 |
Securities available-for-sale | 0 | 987 |
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Total assets | 0 | 987 |
Liabilities | ||
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. Treasury securities | 0 | |
U.S. government sponsored agency securities | 4,350 | |
Mortgage-backed securities: residential | 288,181 | 325,412 |
Mortgage-backed securities: commercial | 36,972 | 38,141 |
State and municipal securities | 282,935 | 216,509 |
Securities available-for-sale | 608,088 | 584,412 |
Mortgage banking derivative | 198 | 95 |
Interest rate swap derivative | 7,263 | 3,869 |
Total assets | 615,549 | 588,376 |
Liabilities | ||
Mortgage banking derivative | 14 | 23 |
Interest rate swap derivative | 7,860 | 4,025 |
Total liabilities | 7,874 | 4,048 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
U.S. Treasury securities | 0 | |
U.S. government sponsored agency securities | 0 | |
Mortgage-backed securities: residential | 0 | 0 |
Mortgage-backed securities: commercial | 0 | 0 |
State and municipal securities | 145 | 150 |
Securities available-for-sale | 145 | 150 |
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Total assets | 145 | 150 |
Liabilities | ||
Mortgage banking derivative | 0 | 0 |
Interest rate swap derivative | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 12,121 | $ 11,506 |
Other real estate owned | 0 | 316 |
Total assets | 12,121 | 11,822 |
Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 12,121 | 11,506 |
Other real estate owned | 0 | 316 |
Total assets | 12,121 | 11,822 |
Other consumer loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 11 | |
Other consumer loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Other consumer loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Other consumer loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 11 | |
Commercial and Industrial Loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 9,500 | 9,059 |
Commercial and Industrial Loans | Working capital lines of credit loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,126 | 4,092 |
Commercial and Industrial Loans | Working capital lines of credit loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial and Industrial Loans | Working capital lines of credit loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial and Industrial Loans | Working capital lines of credit loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,126 | 4,092 |
Commercial and Industrial Loans | Non-working capital loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,374 | 4,967 |
Commercial and Industrial Loans | Non-working capital loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial and Industrial Loans | Non-working capital loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial and Industrial Loans | Non-working capital loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,374 | 4,967 |
Commercial Real Estate and Multi-family Residential Loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,492 | 1,817 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 43 | 148 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Construction and land development loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 43 | 148 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,449 | 1,669 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial Real Estate and Multi-family Residential Loans | Owner occupied loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,449 | 1,669 |
Consumer 1-4 Family Mortgage Loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,061 | 553 |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 474 | 553 |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Consumer 1-4 Family Mortgage Loans | Closed end first mortgage loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 474 | 553 |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 587 | |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Consumer 1-4 Family Mortgage Loans | Open end and junior lien loans | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 587 | |
Agribusiness and Agricultural | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 57 | 77 |
Agribusiness and Agricultural | Loans secured by farmland | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 57 | 77 |
Agribusiness and Agricultural | Loans secured by farmland | Level 1 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Agribusiness and Agricultural | Loans secured by farmland | Level 2 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Agribusiness and Agricultural | Loans secured by farmland | Level 3 | ||
Assets Measured At Fair Value On Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 57 | $ 77 |
FAIR VALUE - Valuation Methodol
FAIR VALUE - Valuation Methodology and Unobservable Inputs for Level 3 Assets (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | |
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 12,121 | $ 11,506 |
Commercial and Industrial Loans | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 9,500 | $ 9,059 |
Valuation Methodology | Collateral based measurements | Collateral based measurements |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | Discount to reflect current market conditions |
Commercial and Industrial Loans | Minimum | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 1 | 4 |
Commercial and Industrial Loans | Maximum | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 100 | 100 |
Commercial and Industrial Loans | Weighted Average | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 53 | 48 |
Commercial Real Estate and Multi-family Residential Loans | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 1,492 | $ 1,817 |
Valuation Methodology | Collateral based measurements | Collateral based measurements |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | Discount to reflect current market conditions |
Commercial Real Estate and Multi-family Residential Loans | Minimum | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 7 | 6 |
Commercial Real Estate and Multi-family Residential Loans | Maximum | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 61 | 53 |
Commercial Real Estate and Multi-family Residential Loans | Weighted Average | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 27 | 34 |
Consumer 1-4 Family Mortgage Loans | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 1,061 | $ 553 |
Valuation Methodology | Collateral based measurements | Collateral based measurements |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | Discount to reflect current market conditions and ultimate collectability |
Consumer 1-4 Family Mortgage Loans | Minimum | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 5 | 0 |
Consumer 1-4 Family Mortgage Loans | Maximum | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 100 | 64 |
Consumer 1-4 Family Mortgage Loans | Weighted Average | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 14 | 23 |
Other Real Estate Owned | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 316 | |
Valuation Methodology | Collateral based measurements | |
Unobservable Inputs | Discount to reflect current market conditions | |
Other Real Estate Owned | Weighted Average | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 0 | |
Other consumer loans | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 11 | |
Valuation Methodology | Collateral based measurements | |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | |
Other consumer loans | Weighted Average | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 36 | |
Agribusiness and Agricultural | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Impaired loans | $ | $ 57 | $ 77 |
Valuation Methodology | Collateral based measurements | Collateral based measurements |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | Discount to reflect current market conditions and ultimate collectability |
Agribusiness and Agricultural | Weighted Average | ||
Valuation Methodology and Unobservable Inputs For Level 3 Assets Measured At Fair Value [Line Items] | ||
Range of Inputs (Average) (in hundredths) | 61 | 49 |
FAIR VALUE - Estimated Fair Val
FAIR VALUE - Estimated Fair Values And The Related Carrying Values Of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Securities available-for-sale | $ 608,233 | $ 585,549 |
Financial Liabilities: | ||
Federal Home Loan Bank advances | (170,000) | (170,000) |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 99,381 | 216,922 |
Securities available-for-sale | 608,233 | 585,549 |
Real estate mortgages held-for-sale | 4,527 | 2,293 |
Loans, net | 4,015,176 | 3,866,292 |
Federal Reserve and Federal Home Loan Bank Stock | 13,772 | 13,772 |
Accrued interest receivable | 15,391 | 15,518 |
Financial Liabilities: | ||
Certificates of deposit | (1,192,067) | (1,419,754) |
All other deposits | (2,941,752) | (2,624,311) |
Securities sold under agreements to repurchase | (75,555) | |
Federal Home Loan Bank advances | (170,000) | (170,000) |
Subordinated debentures | (30,928) | |
Standby letters of credit | (915) | (978) |
Accrued interest payable | (11,604) | (10,404) |
Estimate of Fair Value Measurement | ||
Financial Assets: | ||
Cash and cash equivalents | 99,381 | 216,922 |
Securities available-for-sale | 608,233 | 585,549 |
Real estate mortgages held-for-sale | 4,614 | 2,314 |
Loans, net | 3,979,006 | 3,786,175 |
Accrued interest receivable | 15,391 | 15,518 |
Financial Liabilities: | ||
Certificates of deposit | (1,202,060) | (1,424,553) |
All other deposits | (2,941,752) | (2,624,311) |
Securities sold under agreements to repurchase | (75,555) | |
Federal Home Loan Bank advances | (169,998) | (169,996) |
Subordinated debentures | (31,195) | |
Standby letters of credit | (915) | (978) |
Accrued interest payable | (11,604) | (10,404) |
Level 1 | Estimate of Fair Value Measurement | ||
Financial Assets: | ||
Cash and cash equivalents | 96,603 | 214,452 |
Securities available-for-sale | 0 | 987 |
Real estate mortgages held-for-sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 3 |
Financial Liabilities: | ||
Certificates of deposit | 0 | 0 |
All other deposits | (2,941,752) | (2,624,311) |
Securities sold under agreements to repurchase | 0 | |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | 0 | |
Standby letters of credit | 0 | 0 |
Accrued interest payable | (102) | (110) |
Level 2 | Estimate of Fair Value Measurement | ||
Financial Assets: | ||
Cash and cash equivalents | 2,778 | 2,470 |
Securities available-for-sale | 608,088 | 584,412 |
Real estate mortgages held-for-sale | 4,614 | 2,314 |
Loans, net | 0 | 0 |
Accrued interest receivable | 3,729 | 3,569 |
Financial Liabilities: | ||
Certificates of deposit | (1,202,060) | (1,424,553) |
All other deposits | 0 | 0 |
Securities sold under agreements to repurchase | (75,555) | |
Federal Home Loan Bank advances | (169,998) | (169,996) |
Subordinated debentures | 0 | |
Standby letters of credit | 0 | 0 |
Accrued interest payable | (11,502) | (10,289) |
Level 3 | Estimate of Fair Value Measurement | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 145 | 150 |
Real estate mortgages held-for-sale | 0 | 0 |
Loans, net | 3,979,006 | 3,786,175 |
Accrued interest receivable | 11,662 | 11,946 |
Financial Liabilities: | ||
Certificates of deposit | 0 | 0 |
All other deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures | (31,195) | |
Standby letters of credit | (915) | (978) |
Accrued interest payable | $ 0 | $ (5) |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Mortgage servicing rights | $ 4,400,000 | |||
Percentage of discount from appraised value (in hundredths) | 3.90% | |||
Weighted average maturity of residential mortgages | 20 years | |||
Prepayment Speed used in unobservable assumptions | 118 | 81 | ||
Discount rate used to estimate fair value (in hundredths) | 9.40% | 9.40% | ||
Subtotal | $ 4,067,385,000 | $ 3,916,326,000 | ||
Valuation allowance | 50,652,000 | 48,453,000 | $ 47,121,000 | $ 43,718,000 |
Provision for Loan and Lease Losses | 3,235,000 | 6,400,000 | 3,000,000 | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 874,000 | 1,043,000 | $ 1,963,000 | |
Ten Percent Adverse Changes In Psa | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Mortgage servicing rights | 124,000 | |||
Twenty Percent Adverse Changes In Psa | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Mortgage servicing rights | 242,000 | |||
Ten Percent Adverse Changes In Discount Rate | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Mortgage servicing rights | 170,000 | |||
Twenty Percent Adverse Changes In Discount Rate | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Mortgage servicing rights | 329,000 | |||
Minimum | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Amount of variance | $ 100,000 | |||
Minimum | Municipal Notes | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of Variance | (5.00%) | |||
Minimum | US Government Agencies Short-term Debt Securities | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of Variance | (3.00%) | |||
Minimum | US Treasury Securities | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of Variance | (1.00%) | |||
Maximum | Municipal Notes | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of Variance | 5.00% | |||
Maximum | US Government Agencies Short-term Debt Securities | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of Variance | 3.00% | |||
Maximum | US Treasury Securities | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of Variance | 1.00% | |||
Commercial Real Estates | Minimum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 0.00% | |||
Commercial Real Estates | Maximum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 50.00% | |||
Inventory Finished Goods | Minimum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 35.00% | |||
Inventory Finished Goods | Maximum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 65.00% | |||
Finished Goods | Minimum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 30.00% | |||
Finished Goods | Maximum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 60.00% | |||
Inventory Work In Process | Minimum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 50.00% | |||
Inventory Work In Process | Maximum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 100.00% | |||
Equipment | Minimum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 30.00% | |||
Equipment | Maximum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 70.00% | |||
Marketable Securities | Minimum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 10.00% | |||
Marketable Securities | Maximum | Level 3 | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Percentage of discount from appraised value (in hundredths) | 30.00% | |||
Impaired Loans | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Subtotal | $ 22,200,000 | 21,000,000 | ||
Valuation allowance | 10,100,000 | 9,500,000 | ||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 600,000,000,000 | 7,100,000 | ||
Other Real Estate Owned | ||||
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. | ||||
Impaired Loans Fair Value Disclosure | $ 316,000 | $ 316,000 |
LAND, PREMISES AND EQUIPMENT,_3
LAND, PREMISES AND EQUIPMENT, NET - Summary of Land, Premises And Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
LAND, PREMISES AND EQUIPMENT, NET | ||
Land | $ 12,511 | $ 12,302 |
Premises and improvements | 53,213 | 49,064 |
Equipment and furniture | 38,691 | 36,111 |
Total cost | 104,415 | 97,477 |
Less accumulated depreciation | 44,261 | 39,380 |
Land, premises and equipment, net | $ 60,154 | $ 58,097 |
LAND, PREMISES AND EQUIPMENT,_4
LAND, PREMISES AND EQUIPMENT, NET - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 100,000 | $ 100,000 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) $ in Millions | Dec. 31, 2019USD ($) |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Carrying amount of goodwill | $ 5 |
DEPOSITS - Summary of Certain D
DEPOSITS - Summary of Certain Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-interest bearing demand deposits | $ 983,307 | $ 946,838 |
Savings and transaction accounts: | ||
Savings deposits | 234,508 | 247,903 |
Interest bearing demand deposits | 3,150,512 | 3,097,227 |
Time deposits: | ||
Other time deposits | 281,934 | 273,533 |
Deposits of $100,000 to $250,000 | 291,805 | 268,058 |
Deposits of $250,000 or more | 618,328 | 878,163 |
Total deposits | 4,133,819 | 4,044,065 |
Demand deposits | ||
Savings and transaction accounts: | ||
Interest bearing demand deposits | $ 1,723,937 | $ 1,429,570 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
DEPOSITS | |
Maturing in 2020 | $ 895,601 |
Maturing in 2021 | 206,303 |
Maturing in 2022 | 35,181 |
Maturing in 2023 | 23,143 |
Maturing in 2024 | 29,747 |
Thereafter | 2,092 |
Total time deposits | $ 1,192,067 |
DEPOSITS - Additional informati
DEPOSITS - Additional information (Details) $ in Millions | Dec. 31, 2019USD ($) |
DEPOSITS | |
Total amount available to the Bank | $ 200 |
Total amount drawn | $ 75.1 |
BORROWINGS - Short-Term Borrowi
BORROWINGS - Short-Term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Other Short-term Borrowings | $ 170,000 | $ 170,000 |
Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020 | ||
Short-term Debt [Line Items] | ||
Other Short-term Borrowings | 170,000 | 0 |
Federal Home Loan Bank of Indianapolis Notes, 2.52%, Due January 7, 2019 | ||
Short-term Debt [Line Items] | ||
Other Short-term Borrowings | $ 0 | $ 170,000 |
BORROWINGS - Short-Term Borro_2
BORROWINGS - Short-Term Borrowings - Parenthetical (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Bank of Indianapolis Advance, 1.61%, Due January 7, 2020 | |
Debt Instrument [Line Items] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 1.61% |
Federal Home Loan Bank Advances Branch Of Fhlb Bank Due Dates | Jan. 7, 2019 |
Federal Home Loan Bank of Indianapolis Notes, 2.52%, Due January 7, 2019 | |
Debt Instrument [Line Items] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 2.52% |
Federal Home Loan Bank Advances Branch Of Fhlb Bank Due Dates | Jun. 27, 2018 |
BORROWINGS (Securities Sold wit
BORROWINGS (Securities Sold with Agreements to Repurchase) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Abstract] | |||
Outstanding at year end | $ 0 | $ 75,555 | $ 70,652 |
Approximate average interest rate at year end | 0.00% | 0.74% | 0.46% |
Highest amount outstanding as of any month end during the year | $ 72,814 | $ 106,239 | $ 77,886 |
Approximate average outstanding during the year | $ 15,104 | $ 86,874 | $ 63,379 |
Approximate average interest rate during the year | 0.86% | 0.58% | 0.39% |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) - USD ($) $ in Millions | Aug. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Residential real estate loans and securities pledged as collateral for FHLB advances, carrying value | $ 453.2 | $ 412.9 | |
FHLB Stock owned | 10.4 | 10.4 | |
FHLB borrowing capacity, authorized | 800 | ||
Line of Credit Facility, Current Borrowing Capacity | 115.5 | ||
Commercial loans pledged as collateral for Federal Reserve Discount Window, carrying value | 446.9 | 381.5 | |
Federal Reserve borrowing capacity | 339.5 | 286.5 | |
Secured Debt | 170 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 325 | ||
Unsecured revolving credit agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 30 | ||
Term of credit agreement | 1 year | ||
Amount drawn on the line | 0 | ||
American Financial Exchange | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 244 | $ 119 |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Details) - USD ($) | Dec. 31, 2019 | Oct. 01, 2003 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subordinated Debentures Disclosure [Abstract] | |||||
Proceeds from Issuance of Trust Preferred Securities | $ 30,000,000 | ||||
Trust preferred securities and subordinated debentures, description of variable rate basis | (“LIBOR”) plus 3.05% | ||||
Floating rate of trust preferred securities and subordinated debentures | 5.85% | ||||
Investment In Common Stock | $ 0 | $ 928,000 | |||
Proceeds From Issuance Of Subordinated Debentures | $ 30,900,000 | ||||
Integral multiple subordinated debentures may be redeemed in | $ 1,000 | $ 1,000 | |||
Percentage of principal amount subordinated debentures may be redeemed at | 100.00% | 100.00% | |||
Payments for redemption of trust preferred securities | $ 30,000,000 | ||||
Payments for redemption of common securities | $ 928,000 | $ 515,000 | $ 463,000 | $ 495,000 | |
Concurrent redemption of junior subordinated debentures | 100.00% | 100.00% | |||
Redemption price as a percentage of principal amount | 100.00% | ||||
Redemption of the outstanding common securities and the outstanding trust preferred securities | 100.00% |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT PLANS - Components of net periodic benefit cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Beginning benefit obligation | $ 2,118 | $ 2,862 | |
Interest cost | 87 | 93 | $ 104 |
Actuarial (gain) loss | 631 | (325) | |
Benefits paid | (121) | (512) | |
Ending benefit obligation | 2,715 | 2,118 | 2,862 |
Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value: | |||
Beginning plan assets | 2,151 | 2,356 | |
Actual return | 415 | (61) | |
Employer contribution | 27 | 368 | |
Benefits paid | (121) | (512) | |
Ending plan assets | 2,472 | 2,151 | 2,356 |
Funded status at end of year | (243) | 33 | |
SERP Benefits | |||
Change in benefit obligation: | |||
Beginning benefit obligation | 924 | 1,086 | |
Interest cost | 37 | 34 | 40 |
Actuarial (gain) loss | 164 | (62) | |
Benefits paid | (134) | (134) | |
Ending benefit obligation | 991 | 924 | 1,086 |
Change in plan assets (primarily equity and fixed income investments and money market funds), at fair value: | |||
Beginning plan assets | 885 | 1,047 | |
Actual return | 163 | (28) | |
Employer contribution | 0 | 0 | |
Benefits paid | (134) | (134) | |
Ending plan assets | 914 | 885 | $ 1,047 |
Funded status at end of year | $ (77) | $ (39) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status included in other liabilities | $ (243) | $ (33) |
SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status included in other liabilities | $ (77) | $ (39) |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT PLANS - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss | $ 153 | $ (372) | $ (211) |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss | 1,464 | 1,242 | |
SERP Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss | $ 597 | $ 615 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT PLANS - Net pension expense and other amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net pension expense: | |||
Net (gain)/loss | $ 409 | $ (269) | $ (97) |
Pension Benefits | |||
Net pension expense: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 87 | 93 | 104 |
Expected return on plan assets | (137) | (138) | (143) |
Recognized net actuarial loss | 132 | 193 | 185 |
Settlement cost | 0 | 224 | 0 |
Net pension expense | 82 | 372 | 146 |
Net (gain)/loss | 353 | (296) | (36) |
Amortization of net loss | (132) | (193) | (185) |
Total recognized in other comprehensive income (loss) | 221 | (489) | (221) |
Total recognized in net pension expense and other comprehensive income (loss) | 303 | (117) | (75) |
SERP Benefits | |||
Net pension expense: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 37 | 34 | 40 |
Expected return on plan assets | (55) | (61) | (63) |
Recognized net actuarial loss | 73 | 73 | 80 |
Settlement cost | 0 | 0 | 0 |
Net pension expense | 55 | 46 | 57 |
Net (gain)/loss | 56 | 27 | (61) |
Amortization of net loss | (73) | (73) | (80) |
Total recognized in other comprehensive income (loss) | (17) | (46) | (141) |
Total recognized in net pension expense and other comprehensive income (loss) | $ 38 | $ 0 | $ (84) |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Assumptions Used in Calculating the Net Benefit Obligation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rate | 2.98% | 4.08% | 3.46% |
Lump sum assumed interest rates for First 5 years | 2.01% | 3.33% | 2.05% |
Lump sum assumed interest rates for Next 15 years | 3.06% | 4.39% | 3.61% |
Lump sum assumed interest rates for All future years | 3.65% | 4.72% | 4.27% |
Net pension expense, Weighted average discount rate | 4.08% | 3.46% | 3.86% |
Expected long-term rate of return | 6.50% | 6.50% | 6.50% |
SERP Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rate | 2.98% | 4.08% | 3.46% |
Net pension expense, Weighted average discount rate | 4.08% | 3.46% | 3.86% |
Expected long-term rate of return | 6.50% | 6.50% | 6.50% |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT PLANS (Schedule of Allocation of Plan Assets) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 60.00% | ||
Weighted Average Expected Long-Term Rate of Return | 8.85% | ||
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 40.00% | ||
Weighted Average Expected Long-Term Rate of Return | 3.00% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 100.00% | 100.00% | |
Weighted Average Expected Long-Term Rate of Return | 6.50% | 6.50% | 6.50% |
Pension Benefits | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 61.00% | 59.00% | |
Weighted Average Expected Long-Term Rate of Return | 8.85% | ||
Pension Benefits | Equity Securities [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 55.00% | ||
Pension Benefits | Equity Securities [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 65.00% | ||
Pension Benefits | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 36.00% | 40.00% | |
Weighted Average Expected Long-Term Rate of Return | 3.00% | ||
Pension Benefits | Debt Securities [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 35.00% | ||
Pension Benefits | Debt Securities [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 45.00% | ||
Pension Benefits | Other Debt Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 3.00% | 1.00% | |
Weighted Average Expected Long-Term Rate of Return | 0.10% | ||
Pension Benefits | Other Debt Obligations [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 5.00% | ||
Pension Benefits | Other Debt Obligations [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 10.00% | ||
SERP Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 100.00% | 100.00% | |
Weighted Average Expected Long-Term Rate of Return | 6.50% | 6.50% | 6.50% |
SERP Benefits | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 65.00% | 58.00% | |
Weighted Average Expected Long-Term Rate of Return | 8.85% | ||
SERP Benefits | Equity Securities [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 55.00% | ||
SERP Benefits | Equity Securities [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 65.00% | ||
SERP Benefits | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 34.00% | 40.00% | |
Weighted Average Expected Long-Term Rate of Return | 3.00% | ||
SERP Benefits | Debt Securities [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 35.00% | ||
SERP Benefits | Debt Securities [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 45.00% | ||
SERP Benefits | Other Debt Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of Plan Assets | 1.00% | 2.00% | |
Weighted Average Expected Long-Term Rate of Return | 0.10% | ||
SERP Benefits | Other Debt Obligations [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 5.00% | ||
SERP Benefits | Other Debt Obligations [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 10.00% |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Fair Values of Pension Plan and Postretirement Plan Assets by Asset Category (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | $ 2,470 | $ 2,148 |
SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 913 | 884 |
Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 2,470 | 2,148 |
Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 913 | 884 |
Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US large cap common stocks [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 912 | 784 |
Equity securities - US large cap common stocks [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 353 | 322 |
Equity securities - US large cap common stocks [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 912 | 784 |
Equity securities - US large cap common stocks [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 353 | 322 |
Equity securities - US large cap common stocks [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US large cap common stocks [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US large cap common stocks [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US large cap common stocks [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US mid cap stock mutual funds [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 115 | 107 |
Equity securities - US mid cap stock mutual funds [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 46 | 43 |
Equity securities - US mid cap stock mutual funds [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 115 | 107 |
Equity securities - US mid cap stock mutual funds [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 46 | 43 |
Equity securities - US mid cap stock mutual funds [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US mid cap stock mutual funds [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US mid cap stock mutual funds [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US mid cap stock mutual funds [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US small cap stock mutual funds [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 119 | 114 |
Equity securities - US small cap stock mutual funds [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 47 | 43 |
Equity securities - US small cap stock mutual funds [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 119 | 114 |
Equity securities - US small cap stock mutual funds [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 47 | 43 |
Equity securities - US small cap stock mutual funds [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US small cap stock mutual funds [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US small cap stock mutual funds [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - US small cap stock mutual funds [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - international stock mutual funds [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 257 | 225 |
Equity securities - international stock mutual funds [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 100 | 89 |
Equity securities - international stock mutual funds [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 257 | 225 |
Equity securities - international stock mutual funds [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 100 | 89 |
Equity securities - international stock mutual funds [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - international stock mutual funds [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - international stock mutual funds [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity securities - international stock mutual funds [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity Securities - emerging markets stock mutual funds [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 111 | 49 |
Equity Securities - emerging markets stock mutual funds [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 43 | 18 |
Equity Securities - emerging markets stock mutual funds [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 111 | 49 |
Equity Securities - emerging markets stock mutual funds [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 43 | 18 |
Equity Securities - emerging markets stock mutual funds [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity Securities - emerging markets stock mutual funds [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity Securities - emerging markets stock mutual funds [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Equity Securities - emerging markets stock mutual funds [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - intermediate term bond mutual funds [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 402 | 309 |
Debt securities - intermediate term bond mutual funds [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 156 | 123 |
Debt securities - intermediate term bond mutual funds [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 402 | 309 |
Debt securities - intermediate term bond mutual funds [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 156 | 123 |
Debt securities - intermediate term bond mutual funds [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - intermediate term bond mutual funds [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - intermediate term bond mutual funds [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - intermediate term bond mutual funds [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - short term bond mutual funds [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 480 | 543 |
Debt securities - short term bond mutual funds [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 155 | 231 |
Debt securities - short term bond mutual funds [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 480 | 543 |
Debt securities - short term bond mutual funds [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 155 | 231 |
Debt securities - short term bond mutual funds [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - short term bond mutual funds [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - short term bond mutual funds [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Debt securities - short term bond mutual funds [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Cash - money market account [Member] | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 74 | 17 |
Cash - money market account [Member] | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 13 | 15 |
Cash - money market account [Member] | Level 1 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 74 | 17 |
Cash - money market account [Member] | Level 1 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 13 | 15 |
Cash - money market account [Member] | Level 2 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Cash - money market account [Member] | Level 2 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Cash - money market account [Member] | Level 3 | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Cash - money market account [Member] | Level 3 | SERP Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Assets for Plan Benefits | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT PLANS - Schedule of Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Benefits | |
2020 | $ 259 |
2021 | 220 |
2022 | 228 |
2023 | 205 |
2024 | 202 |
2025-2029 | 870 |
SERP Benefits | |
2020 | 132 |
2021 | 126 |
2022 | 120 |
2023 | 112 |
2024 | 103 |
2025-2029 | $ 364 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT PLANS (Additional Information) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans Target Allocation Percentage | 60.00% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 8.85% | ||
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans Target Allocation Percentage | 40.00% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.00% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 2,700,000 | $ 2,100,000 | |
Assets for Plan Benefits, Defined Benefit Plan | $ 2,470,000 | $ 2,148,000 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.50% | 6.50% | 6.50% |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | $ 172,000 | ||
Pension Benefits | Accrued Interest and Dividend Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets for Plan Benefits, Defined Benefit Plan | $ 2,000 | $ 3,000 | |
Pension Benefits | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 8.85% | ||
Pension Benefits | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.00% | ||
SERP Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 1,000,000 | 900,000 | |
Assets for Plan Benefits, Defined Benefit Plan | $ 913,000 | $ 884,000 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.50% | 6.50% | 6.50% |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year | $ 80,000 | ||
SERP Benefits | Accrued Interest and Dividend Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets for Plan Benefits, Defined Benefit Plan | $ 1,000 | $ 1,000 | |
SERP Benefits | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 8.85% | ||
SERP Benefits | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.00% |
OTHER BENEFIT PLANS (Details)
OTHER BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Other Benefit Plan [Line Items] | |||
Potential Cash Payments Under Employment Agreements | $ 5,300,000 | ||
Directors' Deferred Compensation and Cash Plans | |||
Summary of Other Benefit Plan [Line Items] | |||
Deferred Compensation Liability | 4,400,000 | $ 4,000,000 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | 515,000 | 486,000 | $ 491,000 |
Other Employee Benefit Plans | |||
Summary of Other Benefit Plan [Line Items] | |||
Deferred Compensation Expense | 461,000 | (31,000) | 456,000 |
Deferred Compensation Liability | 4,200,000 | 3,300,000 | |
Retirement Benefits Plan 401k | |||
Summary of Other Benefit Plan [Line Items] | |||
Deferred Compensation Expense | $ 1,800,000 | $ 1,800,000 | $ 1,700,000 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | |||||||||||
Current federal | $ 19,430 | $ 16,871 | $ 27,064 | ||||||||
Deferred federal | (408) | 707 | (199) | ||||||||
Revalue deferred taxes due to tax reform | 0 | (408) | 4,137 | ||||||||
Current state | 1,394 | 1,462 | 1,559 | ||||||||
Deferred state | (78) | (99) | (257) | ||||||||
Total income tax expense | $ 5,431 | $ 5,119 | $ 5,409 | $ 4,379 | $ 5,480 | $ 4,679 | $ 5,110 | $ 3,264 | $ 20,338 | $ 18,533 | $ 32,304 |
INCOME TAXES - Computation of D
INCOME TAXES - Computation of Differences Between Financial Statement Tax Expense And Amounts (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | |||||||||||
Income taxes at statutory federal rate of 21% (2019 and 2018) and 35% (2017) | $ 22,551,000 | $ 20,778,000 | $ 31,372,000 | ||||||||
Increase (decrease) in taxes resulting from: | |||||||||||
Tax exempt income | (1,682,000) | (1,434,000) | (2,015,000) | ||||||||
Nondeductible expense | 194,000 | 165,000 | 193,000 | ||||||||
State income tax, net of federal tax effect | 1,040,000 | 1,077,000 | 846,000 | ||||||||
Captive insurance premium income | (310,000) | (292,000) | (378,000) | ||||||||
Tax credits | (548,000) | (412,000) | (326,000) | ||||||||
Bank owned life insurance | (573,000) | (303,000) | (619,000) | ||||||||
Long - term incentive plan | (421,000) | (641,000) | (854,000) | ||||||||
Revaluation deferred tax asset at 21% rate | 0 | (408,000) | 4,137,000 | ||||||||
Other | 87,000 | 3,000 | (52,000) | ||||||||
Total income tax expense | $ 5,431,000 | $ 5,119,000 | $ 5,409,000 | $ 4,379,000 | $ 5,480,000 | $ 4,679,000 | $ 5,110,000 | $ 3,264,000 | $ 20,338,000 | $ 18,533,000 | $ 32,304,000 |
INCOME TAXES - Summary of Net D
INCOME TAXES - Summary of Net Deferred Tax Asset And Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Bad debts | $ 12,945 | $ 12,478 |
Pension and deferred compensation liability | 1,505 | 1,188 |
Nonaccrual loan interest | 1,104 | 937 |
Long-term incentive plan | 2,281 | 2,357 |
Lease liability | 1,303 | 0 |
Other | 510 | 506 |
Deferred Tax Assets, Gross | 19,648 | 17,466 |
Deferred tax liabilities: | ||
Depreciation | 4,741 | 4,583 |
Loan servicing rights | 1,019 | 877 |
State taxes | 464 | 447 |
Intangible assets | 1,270 | 1,280 |
REIT spillover dividend | 1,401 | 1,231 |
Prepaid expenses | 795 | 786 |
Lease Right of use | 1,303 | 0 |
Other | 382 | 475 |
Deferred Tax Liabilities, Gross | 11,375 | 9,679 |
Valuation allowance | 0 | 0 |
Net deferred tax asset | $ 8,273 | $ 7,787 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | |||||||||||
Income tax expense | $ 5,431,000 | $ 5,119,000 | $ 5,409,000 | $ 4,379,000 | $ 5,480,000 | $ 4,679,000 | $ 5,110,000 | $ 3,264,000 | $ 20,338,000 | $ 18,533,000 | $ 32,304,000 |
Statutory percentage rate of provision | 21.00% | 21.00% | 35.00% | ||||||||
Deferred Tax Assets Unrealized Gain Losses On Available for Sale Securities Gross | (3,600,000) | 1,300,000 | $ (3,600,000) | $ 1,300,000 | |||||||
Deferred Tax Liabilities Allocated To Benefit Plan | $ 512,000 | $ 462,000 | 512,000 | 462,000 | |||||||
Non-cash, Non-operating and Non-recurring Income Tax Provision | $ 4,100,000 | ||||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 0 | $ (408,000) | $ 4,137,000 |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Summary of Loans To Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | ||
Beginning balance | $ 83,546 | $ 105,242 |
New loans and advances | 55,465 | 94,542 |
Effect of changes in related parties | (5,967) | 0 |
Repayments and renewals | (49,064) | (116,238) |
Ending balance | $ 83,980 | $ 83,546 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
RELATED PARTY TRANSACTIONS | ||
Due to Related Parties | $ 33.3 | $ 12.1 |
Additional Amount Due To Related Parties Current and Non Current | $ 0 | $ 1.9 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock Awards Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
STOCK BASED COMPENSATION | |||
Total intrinsic value | $ 0 | $ 243 | $ 44 |
Cash received | 0 | 118 | 24 |
Actual tax benefit realized for tax deductions | $ 0 | $ 0 | $ 0 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary Of Changes In Company's Nonvested Shares (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
Shares | |
Shares Nonvested, beginning balance | shares | 1,000 |
Granted | shares | 19,100 |
Vested | shares | (16,600) |
Shares Nonvested, ending balance | shares | 3,500 |
Weighted-Average Grant-Date Fair Value | |
Weighted-Average Grant-Date Fair Value, beginning balance | $ / shares | $ 48.14 |
Granted | $ / shares | 44.59 |
Vested | $ / shares | 44.56 |
Weighted-Average Grant-Date Fair Value, ending balance | $ / shares | $ 45.70 |
Performance Stock Units [Member] | |
Shares | |
Shares Nonvested, beginning balance | shares | 368,503 |
Granted | shares | 39,715 |
Vested | shares | (126,672) |
Forfeited | shares | (4,461) |
Shares Nonvested, ending balance | shares | 277,085 |
Weighted-Average Grant-Date Fair Value | |
Weighted-Average Grant-Date Fair Value, beginning balance | $ / shares | $ 39.83 |
Granted | $ / shares | 41.78 |
Vested | $ / shares | 29.23 |
Forfeited | $ / shares | 45.42 |
Weighted-Average Grant-Date Fair Value, ending balance | $ / shares | $ 44.86 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 12, 2017 | Apr. 09, 2013 | Apr. 08, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-Based Compensation, Shares Authorized Under Equity Incentive Plans | 1,125,000 | |||||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 4,200,000 | $ 5,600,000 | $ 5,700,000 | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 1,100,000 | $ 1,500,000 | $ 2,200,000 | |||
Number of stock option grants | 0 | 0 | 0 | |||
Modifications of stock option | 0 | 0 | 0 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 684,926 | |||||
2013 Plan Member | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 435,867 | |||||
2017 Plan Member | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-Based Compensation, Shares Authorized Under Equity Incentive Plans | 1,000,000 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 135,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 3 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value | $ 737,000 | $ 726,000 | $ 1,200,000 | |||
Vested | 15,600 | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 3,400,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months 18 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value | $ 5,700,000 | $ 6,600,000 | $ 5,100,000 | |||
Vested | 126,672 | 137,472 | 112,055 |
CAPITAL REQUIREMENTS AND REST_3
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Summary Of Capital Adequacy Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Entities [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 631,723 | $ 601,379 |
Total Capital (to Risk Weighted Assets), Actual Ratio | 14.36% | 14.20% |
Tier I Capital (to Risk Weighted Assets), Actual Amount | $ 580,982 | $ 552,836 |
Tier I Capital (to Risk Weighted Assets), Actual Ratio | 13.21% | 13.06% |
Common Equity Tier 1 (CET1), Actual Amount | $ 580,982 | $ 522,836 |
Common Equity Tier 1 (CET1), Actual Ratio | 13.21% | 12.35% |
Tier I Capital (to Average Assets), Actual Amount | $ 580,982 | $ 552,836 |
Tier I Capital (to Average Assets), Actual Ratio | 11.67% | 11.44% |
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount | $ 351,894 | $ 338,690 |
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount | $ 263,921 | $ 254,017 |
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Amount | $ 197,941 | $ 190,513 |
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Amount | $ 199,099 | $ 193,305 |
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Excess Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 461,862 | $ 418,070 |
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | 373,887 | 333,398 |
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | 307,908 | 269,893 |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | 199,099 | 193,305 |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total Capital (to Risk Weighted Assets), Actual Amount | $ 616,386 | $ 583,206 |
Total Capital (to Risk Weighted Assets), Actual Ratio | 14.04% | 13.80% |
Tier I Capital (to Risk Weighted Assets), Actual Amount | $ 565,645 | $ 534,664 |
Tier I Capital (to Risk Weighted Assets), Actual Ratio | 12.88% | 12.65% |
Common Equity Tier 1 (CET1), Actual Amount | $ 565,645 | $ 534,664 |
Common Equity Tier 1 (CET1), Actual Ratio | 12.88% | 12.65% |
Tier I Capital (to Average Assets), Actual Amount | $ 565,645 | $ 534,664 |
Tier I Capital (to Average Assets), Actual Ratio | 11.43% | 11.06% |
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount | $ 351,227 | $ 338,098 |
Total Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Amount | $ 263,420 | $ 253,574 |
Tier I Capital (to Risk Weighted Assets), Minimum Required For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Amount | $ 197,565 | $ 190,180 |
Common Equity Tier 1 (CET1), Minimum Required For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Amount | $ 197,923 | $ 193,312 |
Tier I Capital (to Average Assets), Minimum Required For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Excess Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 460,985 | $ 417,340 |
Excess Capital to Risk Weighted Assets, For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 10.50% | 9.875% |
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 373,179 | $ 332,815 |
Tier I Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 8.50% | 7.875% |
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 307,324 | $ 269,422 |
Common Equity Tier 1 (CET1), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 7.00% | 6.375% |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 197,923 | $ 193,312 |
Tier I Capital (to Average Assets), For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 4.00% | 4.00% |
Total Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 439,034 | $ 422,623 |
Total Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 10.00% | 10.00% |
Tier I Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 351,227 | $ 338,098 |
Tier I Capital (to Risk Weighted Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 8.00% | 8.00% |
Common Equity Tier 1 (CET1), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 285,372 | $ 274,705 |
Common Equity Tier 1 (CET1), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 6.50% | 6.50% |
Tier I Capital (to Average Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 247,404 | $ 241,639 |
Tier I Capital (to Average Assets), Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 5.00% | 5.00% |
CAPITAL REQUIREMENTS AND REST_4
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | $ 89.1 |
Description of Regulatory Requirements, Capital Adequacy Purposes | 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 0.000% for 2015 to 2.50% by 2019. The capital conservation buffer for 2019 and 2018 was 2.50% and 1.875%, respectively. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Schedule of Offsetting of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Gross Amounts of Recognized Assets | $ 7,263 | $ 3,869 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 7,263 | 3,869 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | (760) |
Net Amount | 7,263 | 3,109 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 7,860 | 79,580 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 7,860 | 79,580 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | (75,555) |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | (7,560) | (560) |
Net Amount | 300 | 3,465 |
Interest Rate Swap [Member] | ||
Assets | ||
Gross Amounts of Recognized Assets | 7,263 | 3,869 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 7,263 | 3,869 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | (760) |
Net Amount | 7,263 | 3,109 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 7,860 | 4,025 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 7,860 | 4,025 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | (7,560) | (560) |
Net Amount | 300 | 3,465 |
Repurchase Agreements [Member] | ||
Liabilities | ||
Gross Amounts of Recognized Liabilities | 0 | 75,555 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 0 | 75,555 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | (75,555) |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 0 |
COMMITMENTS, OFF-BALANCE SHEE_3
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES - Commitments To Make Loans And Open Ended Revolving Lines Of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | $ 44,210 | $ 67,051 |
Variable Rate | 1,790,941 | 1,674,094 |
Working capital lines of credit loans | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 39,104 | 63,625 |
Variable Rate | 1,451,704 | 1,337,437 |
Commercial Letters Of Credit [Member] | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 0 | 0 |
Variable Rate | 0 | 3,245 |
Standby Letters of Credit [Member] | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 0 | 0 |
Variable Rate | 70,932 | 81,512 |
Real Estate Mortgage Loans [Member] | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 4,448 | 2,811 |
Variable Rate | 1,488 | 2,881 |
Real Estate Construction Mortgage Loans [Member] | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 478 | 400 |
Variable Rate | 2,139 | 2,189 |
Residential construction loans | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 0 | 0 |
Variable Rate | 247,562 | 232,362 |
Consumer loan open-ended revolving line | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 180 | 215 |
Variable Rate | $ 17,116 | $ 14,468 |
COMMITMENTS, OFF-BALANCE SHEE_4
COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES - Interest Rate Ranges On Commitments And Open Ended Revolving Lines Of Credit (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Working capital lines of credit loans | Minimum | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 0.75% | 0.75% |
Variable Rate | 2.65% | 2.65% |
Working capital lines of credit loans | Maximum | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 14.50% | 14.50% |
Variable Rate | 9.25% | 10.00% |
Real Estate Mortgage Loans [Member] | Minimum | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 3.13% | 3.75% |
Variable Rate | 3.75% | 3.75% |
Real Estate Mortgage Loans [Member] | Maximum | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 4.00% | 6.13% |
Variable Rate | 4.25% | 11.00% |
Consumer loan open-ended revolving line | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Fixed Rate | 15.00% | 15.00% |
Consumer loan open-ended revolving line | Minimum | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Variable Rate | 3.88% | 3.88% |
Consumer loan open-ended revolving line | Maximum | ||
Commitments Off-Balance Sheet Risks and Contingencies | ||
Variable Rate | 15.00% | 15.00% |
PARENT COMPANY STATEMENTS - CON
PARENT COMPANY STATEMENTS - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Other assets | $ 41,293 | $ 34,735 |
Total assets | 4,946,745 | 4,875,254 |
LIABILITIES | ||
Subordinated debt | 0 | 30,928 |
STOCKHOLDERS' EQUITY | 598,011 | 521,615 |
Total liabilities and equity | 4,946,745 | 4,875,254 |
Parent Company [Member] | Reportable Legal Entities [Member] | ||
ASSETS | ||
Deposits with Lake City Bank | 1,762 | 1,283 |
Deposits with other depository institutions | 2,104 | 7,613 |
Cash | 3,866 | 8,896 |
Investments in banking subsidiary | 582,674 | 533,442 |
Investments in other subsidiaries | 3,276 | 3,992 |
Other assets | 8,457 | 6,468 |
Total assets | 598,273 | 552,798 |
LIABILITIES | ||
Dividends payable and other liabilities | 262 | 255 |
Subordinated debt | 0 | 30,928 |
STOCKHOLDERS' EQUITY | 598,011 | 521,615 |
Total liabilities and equity | $ 598,273 | $ 552,798 |
PARENT COMPANY STATEMENTS - C_2
PARENT COMPANY STATEMENTS - CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other income | $ 4,548 | $ 2,573 | $ 2,629 | ||||||||
Interest expense on subordinated debt | $ (13,430) | $ (15,224) | $ (16,224) | $ (15,285) | $ (14,138) | $ (12,454) | $ (11,262) | $ (9,845) | (60,163) | (47,699) | (29,806) |
INCOME BEFORE INCOME TAX EXPENSE | 107,385 | 98,944 | 89,634 | ||||||||
Income tax benefit | (5,431) | (5,119) | (5,409) | (4,379) | (5,480) | (4,679) | (5,110) | (3,264) | (20,338) | (18,533) | (32,304) |
NET INCOME | $ 22,198 | $ 21,454 | $ 21,713 | $ 21,682 | $ 21,363 | $ 20,570 | $ 20,142 | $ 18,336 | 87,047 | 80,411 | 57,330 |
COMPREHENSIVE INCOME | 105,297 | 75,131 | 59,047 | ||||||||
Reportable Legal Entities [Member] | Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other income | 155 | 171 | 57 | ||||||||
Interest expense on subordinated debt | (1,720) | (1,643) | (1,349) | ||||||||
Miscellaneous expense | (5,321) | (6,422) | (6,491) | ||||||||
INCOME BEFORE INCOME TAX EXPENSE | 52,258 | 21,049 | 15,069 | ||||||||
Income tax benefit | 2,256 | 2,795 | 2,688 | ||||||||
INCOME BEFORE EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES | 54,514 | 23,844 | 17,757 | ||||||||
Equity in undistributed income of subsidiaries | 32,533 | 56,567 | 39,573 | ||||||||
NET INCOME | 87,047 | 80,411 | 57,330 | ||||||||
COMPREHENSIVE INCOME | 105,297 | 75,131 | 59,047 | ||||||||
Reportable Legal Entities [Member] | Parent Company [Member] | Lake City Bank [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from Lake City Bank, Lakeland Statutory Trust II | 57,842 | 27,933 | 21,822 | ||||||||
Reportable Legal Entities [Member] | Parent Company [Member] | Non-bank Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from Lake City Bank, Lakeland Statutory Trust II | $ 1,302 | $ 1,010 | $ 1,030 |
PARENT COMPANY STATEMENTS - C_3
PARENT COMPANY STATEMENTS - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash flows from operating activities: | ||||||||||||
Net income | $ 22,198,000 | $ 21,454,000 | $ 21,713,000 | $ 21,682,000 | $ 21,363,000 | $ 20,570,000 | $ 20,142,000 | $ 18,336,000 | $ 87,047,000 | $ 80,411,000 | $ 57,330,000 | |
Adjustments to net cash from operating activities: | ||||||||||||
Net cash from operating activities | 100,039,000 | 104,975,000 | 77,242,000 | |||||||||
Cash flows from financing activities: | ||||||||||||
Purchase of treasury stock | $ (928,000) | (515,000) | (463,000) | (495,000) | ||||||||
Sales of treasury stock | 118,000 | 115,000 | 0 | |||||||||
Net cash from financing activities | (48,887,000) | 102,209,000 | 327,708,000 | |||||||||
Net change in cash and cash equivalents | (117,541,000) | 40,742,000 | 8,900,000 | |||||||||
Cash and cash equivalents at beginning of the year | 216,922,000 | 176,180,000 | 216,922,000 | 176,180,000 | 167,280,000 | |||||||
Cash and cash equivalents at end of the year | 99,381,000 | 99,381,000 | 216,922,000 | 99,381,000 | 216,922,000 | 176,180,000 | ||||||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 87,047,000 | 80,411,000 | 57,330,000 | |||||||||
Adjustments to net cash from operating activities: | ||||||||||||
Equity in undistributed income of subsidiaries | (32,533,000) | (56,567,000) | (39,573,000) | |||||||||
Other changes | 3,529,000 | 7,294,000 | 3,586,000 | |||||||||
Net cash from operating activities | 58,043,000 | 31,138,000 | 21,343,000 | |||||||||
Cash flows from financing activities: | ||||||||||||
Repayment of long-term debt | (30,928,000) | 0 | 0 | |||||||||
Payments related to equity incentive plans | (2,109,000) | (2,435,000) | (1,736,000) | |||||||||
Purchase of treasury stock | (515,000) | (463,000) | (495,000) | |||||||||
Sales of treasury stock | 118,000 | 115,000 | 0 | |||||||||
Dividends paid | (29,639,000) | (25,278,000) | (21,396,000) | |||||||||
Net cash from financing activities | (63,073,000) | (28,061,000) | (23,627,000) | |||||||||
Net change in cash and cash equivalents | (5,030,000) | 3,077,000 | (2,284,000) | |||||||||
Cash and cash equivalents at beginning of the year | $ 8,896,000 | $ 5,819,000 | 8,896,000 | 5,819,000 | 8,103,000 | |||||||
Cash and cash equivalents at end of the year | $ 3,866,000 | $ 3,866,000 | $ 8,896,000 | $ 3,866,000 | $ 8,896,000 | $ 5,819,000 |
EARNINGS PER SHARE - Earnings P
EARNINGS PER SHARE - Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per common share: | |||||||||||
Net income | $ 22,198 | $ 21,454 | $ 21,713 | $ 21,682 | $ 21,363 | $ 20,570 | $ 20,142 | $ 18,336 | $ 87,047 | $ 80,411 | $ 57,330 |
Weighted-average common shares outstanding | 25,588,404 | 25,288,533 | 25,181,208 | ||||||||
Basic earnings per common share | $ 0.86 | $ 0.84 | $ 0.85 | $ 0.85 | $ 0.84 | $ 0.81 | $ 0.80 | $ 0.73 | $ 3.40 | $ 3.18 | $ 2.28 |
Diluted earnings per common share: | |||||||||||
Net income | $ 22,198 | $ 21,454 | $ 21,713 | $ 21,682 | $ 21,363 | $ 20,570 | $ 20,142 | $ 18,336 | $ 87,047 | $ 80,411 | $ 57,330 |
Weighted-average common shares outstanding for basic earnings per common share | 25,588,404 | 25,288,533 | 25,181,208 | ||||||||
Add: Dilutive effect of assumed exercise of warrant | 0 | 225,831 | 219,273 | ||||||||
Add: Dilutive effect of assumed exercises of stock options and awards | 170,489 | 213,467 | 262,900 | ||||||||
Average shares and dilutive potential common shares | 25,758,893 | 25,727,831 | 25,663,381 | ||||||||
Diluted earnings per common share | $ 0.86 | $ 0.83 | $ 0.85 | $ 0.84 | $ 0.83 | $ 0.80 | $ 0.79 | $ 0.71 | $ 3.38 | $ 3.13 | $ 2.23 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Changes in Accumulated Other Comprehensive Income By Component) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized Gains and Losses on Available- for-Sales Securities, Opening Balance | $ (4,796) | $ 784 | |
Unrealized Gains and Losses on Available- for-Sales Securities, Other comprehensive income ( loss ) before reclassification | 18,515 | (5,691) | |
Unrealized Gains and Losses on Available- for-Sales Securities, Amounts reclassified from accumulated other comprehensive income (loss) | (112) | 39 | |
Unrealized Gains and Losses on Available- for-Sales Securities, Net current period other comprehensive income (loss) | 18,403 | (5,652) | |
Unrealized Gains and Losses on Available- for-Sales Securities, Ending Balance | 13,607 | (4,796) | $ 784 |
Defined Benefit Pension Items, Opening Balance | (1,395) | (1,454) | |
Defined Benefit Pension Items, Other comprehensive income before reclassification | (306) | 175 | |
Defined Benefit Pension Items, Amounts reclassified from accumulated other comprehensive income (loss) | 153 | 197 | |
Net of tax amount | (153) | 372 | 211 |
Defined Benefit Pension Items, Ending Balance | (1,548) | (1,395) | (1,454) |
Total, Opening Balance | (6,191) | (670) | |
Total, Other comprehensive income (loss) before reclassification | 18,209 | (5,516) | |
Total, Amounts reclassified from accumulated other comprehensive income (loss) | 41 | 236 | |
Total other comprehensive income (loss), net of tax | 18,250 | (5,280) | 1,717 |
Total, Ending Balance | $ 12,059 | (6,191) | $ (670) |
Accounting Standards Update 2018-02 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 140 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (313) | ||
Other Comprehensive Income Loss, Adjustment, Net of Tax | (173) | ||
Accounting Standards Update 2016-01 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (68) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | ||
Other Comprehensive Income Loss, Adjustment, Net of Tax | $ (68) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassification Adjustment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized gains and losses on available-for-sale securities | |||
Net securities gains (losses) | $ 142 | $ (50) | $ 32 |
Income tax expense | (30) | 11 | (13) |
Net of tax | 112 | (39) | 19 |
Amortization of defined benefit pension items | |||
Salaries and employee benefits | (205) | (266) | (265) |
Income tax expense | 52 | 69 | 104 |
Net of tax | (153) | (197) | (161) |
Total reclassifications for the period | $ (41) | $ (236) | $ (142) |
SELECTED QUARTERLY DATA (UNAU_3
SELECTED QUARTERLY DATA (UNAUDITED) - Summary Of Selected Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SELECTED QUARTERLY DATA (UNAUDITED) | |||||||||||
Interest income | $ 52,312 | $ 54,769 | $ 54,635 | $ 53,494 | $ 53,728 | $ 50,379 | $ 48,795 | $ 46,068 | $ 215,210 | $ 198,970 | $ 165,698 |
Interest expense | 13,430 | 15,224 | 16,224 | 15,285 | 14,138 | 12,454 | 11,262 | 9,845 | 60,163 | 47,699 | 29,806 |
Net interest income | 38,882 | 39,545 | 38,411 | 38,209 | 39,590 | 37,925 | 37,533 | 36,223 | 155,047 | 151,271 | 135,892 |
Provision for loan losses | 250 | 1,000 | 785 | 1,200 | 300 | 1,100 | 1,700 | 3,300 | 3,235 | 6,400 | 3,000 |
Net interest income after provision | 38,632 | 38,545 | 37,626 | 37,009 | 39,290 | 36,825 | 35,833 | 32,923 | 151,812 | 144,871 | 132,892 |
Noninterest income | 11,119 | 10,765 | 11,588 | 11,525 | 10,077 | 10,624 | 9,722 | 9,879 | |||
Noninterest expense | 22,122 | 22,737 | 22,092 | 22,473 | 22,524 | 22,200 | 20,303 | 21,202 | 89,424 | 86,229 | 79,298 |
Income tax expense | 5,431 | 5,119 | 5,409 | 4,379 | 5,480 | 4,679 | 5,110 | 3,264 | 20,338 | 18,533 | 32,304 |
Net income | $ 22,198 | $ 21,454 | $ 21,713 | $ 21,682 | $ 21,363 | $ 20,570 | $ 20,142 | $ 18,336 | $ 87,047 | $ 80,411 | $ 57,330 |
Basic earnings per common share | $ 0.86 | $ 0.84 | $ 0.85 | $ 0.85 | $ 0.84 | $ 0.81 | $ 0.80 | $ 0.73 | $ 3.40 | $ 3.18 | $ 2.28 |
Diluted earnings per common share | $ 0.86 | $ 0.83 | $ 0.85 | $ 0.84 | $ 0.83 | $ 0.80 | $ 0.79 | $ 0.71 | $ 3.38 | $ 3.13 | $ 2.23 |
WARRANT (Details)
WARRANT (Details) - USD ($) | Feb. 04, 2019 | Nov. 18, 2009 | Feb. 27, 2009 | Dec. 31, 2018 | Feb. 08, 2019 |
Summary of Warrants | |||||
Share Price | $ 17.45 | ||||
Fair Value Assumptions, Exercise Price | $ 21.20 | ||||
Fair Value Assumptions, Risk Free Interest Rate | 3.02% | ||||
Fair Value Assumptions, Expected Term | 10 years | ||||
Fair Value Assumptions, Expected Dividend Rate | 4.5759% | ||||
Fair Value Assumptions, Expected Volatility Rate | 41.8046% | ||||
Issue Of Warrant Stock Purchase | 396,538 | ||||
Issue Of Warrants Aggregate Purchase Price Of Stock | $ 56,044,000 | ||||
Warrant Period | 10 years | ||||
Warrant Exercise Price Per Share | $ 21.20 | $ 13.3503 | |||
Warrant Fair Value Per Share | $ 45.74 | $ 4.4433 | |||
Adjustments In Share Capital Warrants Issue | 198,269 | ||||
Shares Issuable Upon Exercise Of Warrants | 314,846 | ||||
Number of shares of common stock entitled by warrant holders | 315,961 | 224,066 | |||
Cost to exercise the Warrant | $ 4,200,000 | ||||
Number of shares of common stock for warrants | 91,894 | ||||
Series A Preferred Stock [Member] | |||||
Summary of Warrants | |||||
Preferred Stock, Shares Issued | 56,044 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUE RECOGNITION | |||
Wealth advisory fees | $ 6,835 | $ 6,344 | $ 5,481 |
Investment brokerage fees | 1,687 | 1,458 | 1,273 |
Service charges on deposit accounts | |||
Service charges on commercial deposit accounts | 10,082 | 10,234 | 8,230 |
Service charges on retail deposit accounts | 880 | 879 | 905 |
Overdrafts, net | 3,585 | 3,581 | 3,452 |
Other | 1,170 | 1,137 | 1,109 |
Loan and service fees | |||
Debit card interchange fees | 6,344 | 5,883 | 4,663 |
Loan fees | 2,544 | 2,423 | 2,231 |
Other | 1,023 | 985 | 1,006 |
Merchant card fee income | 2,641 | 2,461 | 2,279 |
Bank owned life insurance income | 1,890 | 1,244 | 1,768 |
Mortgage banking income | 1,626 | 1,150 | 982 |
Net securities gains/(losses) | 142 | (50) | 32 |
Other income | 4,548 | 2,573 | 2,629 |
Total noninterest income | $ 44,997 | $ 40,302 | $ 36,040 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) | Jan. 02, 2018USD ($) |
Retained Earnings | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 24,000 |
LEASES (Details)
LEASES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES | |
2020 | $ 561 |
2021 | 581 |
2022 | 595 |
2023 | 606 |
2024 | 622 |
2025 and thereafter | 2,873 |
Total undiscounted lease payments | 5,838 |
Less imputed interest | (738) |
Lease liability | $ 5,100 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Right-of-use asset | $ 5,100 |
Lease cost | |
Operating lease cost | 498 |
Short-term lease cost | 24 |
Total lease cost | 522 |
Operating cash outflows from operating leases | $ 498 |
Weighted-average remaining lease term - operating leases | 9 years 9 months 18 days |
Weighted average discount rate - operating leases | 2.80% |