Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HILLS BANCORPORATION | |
Entity Central Index Key | 0000732417 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 9,351,299 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 200,476 | $ 43,305 |
Investment securities available for sale at fair value (amortized cost March 31, 2019 $323,358 December 31, 2018 $321,660) | 323,917 | 318,926 |
Stock of Federal Home Loan Bank | 12,266 | 12,172 |
Loans held for sale | 5,267 | 1,984 |
Loans, net of allowance for loan losses (March 31, 2019 $36,520; December 31, 2018 $37,810) | 2,607,488 | 2,591,085 |
Property and equipment, net | 36,631 | 37,051 |
Tax credit real estate investment | 8,931 | 9,193 |
Accrued interest receivable | 13,970 | 11,784 |
Deferred income taxes, net | 9,669 | 10,869 |
Goodwill | 2,500 | 2,500 |
Other assets | 6,750 | 3,595 |
Total Assets | 3,227,865 | 3,042,464 |
Liabilities | ||
Noninterest-bearing deposits | 363,142 | 372,152 |
Interest-bearing deposits | 2,233,750 | 2,048,972 |
Total deposits | 2,596,892 | 2,421,124 |
Federal Home Loan Bank borrowings | 215,000 | 215,000 |
Accrued interest payable | 2,051 | 1,812 |
Other liabilities | 23,291 | 20,776 |
Total Liabilities | 2,837,234 | 2,658,712 |
Redeemable Common Stock Held by Employee Stock Ownership Plan (ESOP) | 49,851 | 48,870 |
STOCKHOLDERS' EQUITY | ||
Common stock, no par value; authorized 20,000,000 shares; issued March 31, 2019 10,326,417 shares; December 31, 2018 10,325,191 shares | 0 | 0 |
Paid in capital | 55,295 | 52,122 |
Retained earnings | 375,394 | 371,848 |
Accumulated other comprehensive loss | (1,001) | (3,250) |
Treasury stock at cost (March 31, 2019 974,357 shares; December 31, 2018 988,750 shares) | (39,057) | (36,968) |
Total Stockholders' Equity | 390,631 | 383,752 |
Less maximum cash obligation related to ESOP shares | 49,851 | 48,870 |
Total Stockholders' Equity Less Maximum Cash Obligation Related to ESOP Shares | 340,780 | 334,882 |
Total Liabilities & Stockholders' Equity | $ 3,227,865 | $ 3,042,464 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Amortized Cost | $ 323,358 | $ 321,660 |
Loans, allowance for loan losses | $ 36,520 | $ 37,810 |
STOCKHOLDERS' EQUITY | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 10,326,417 | 10,325,191 |
Treasury stock at cost (in shares) | 974,357 | 988,750 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Loans, including fees | $ 29,573 | $ 26,028 |
Investment securities: | ||
Taxable | 758 | 563 |
Nontaxable | 1,025 | 889 |
Federal funds sold | 491 | 551 |
Total interest income | 31,847 | 28,031 |
Interest expense: | ||
Deposits | 6,499 | 3,864 |
FHLB borrowings | 1,575 | 1,874 |
Total interest expense | 8,074 | 5,738 |
Net interest income | 23,773 | 22,293 |
Provision for loan losses | (1,246) | (765) |
Net interest income after provision for loan losses | 25,019 | 23,058 |
Noninterest income: | ||
Net gain on sale of loans | 286 | 331 |
Other noninterest income | 437 | 428 |
Noninterest income | 5,250 | 5,628 |
Noninterest expenses: | ||
Salaries and employee benefits | 8,722 | 8,284 |
Occupancy | 1,186 | 1,101 |
Furniture and equipment | 1,673 | 1,474 |
Office supplies and postage | 459 | 434 |
Advertising and business development | 638 | 630 |
Outside services | 2,572 | 2,578 |
FDIC insurance assessment | 209 | 218 |
Other noninterest expense | 590 | 537 |
Noninterest expenses | 16,049 | 15,256 |
Income before income taxes | 14,220 | 13,430 |
Income taxes | 3,017 | 2,572 |
Net income | $ 11,203 | $ 10,858 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.20 | $ 1.16 |
Diluted (in dollars per share) | $ 1.20 | $ 1.16 |
Trust fees | ||
Noninterest income: | ||
Fee income | $ 2,252 | $ 2,641 |
Service charges and fees | ||
Noninterest income: | ||
Fee income | $ 2,275 | $ 2,228 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 11,203 | $ 10,858 |
Securities: | ||
Net change in unrealized income (loss) on securities available for sale | 3,293 | (2,257) |
Reclassification adjustment for net gains realized in net income | 0 | 0 |
Income taxes | (821) | 563 |
Other comprehensive income (loss) on securities available for sale | 2,472 | (1,694) |
Derivatives used in cash flow hedging relationships: | ||
Net change in unrealized (loss) income on derivatives | (298) | 1,054 |
Income taxes | 75 | (263) |
Other comprehensive (loss) income on cash flow hedges | (223) | 791 |
Other comprehensive income (loss), net of tax | 2,249 | (903) |
Comprehensive income | $ 13,452 | $ 9,955 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Maximum Cash Obligation Related To ESOP Shares [Member] |
Beginning Balance at Dec. 31, 2017 | $ 311,716 | $ 48,930 | $ 341,558 | $ (2,446) | $ (33,018) | $ (43,308) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of 88,943 and 84,164 shares of common stock for 3 months ended March 31, 2018 and 2019, respectively | 4,804 | 2,580 | 2,224 | |||
Issuance 1,957 and 1,929 shares of common stock under the employee stock purchase plan for 3 months ended March 31, 2018 and 2019, respectively | 100 | 100 | ||||
Unearned restricted stock compensation | 118 | 118 | ||||
Forfeiture of 208 and 703 shares of common stock for 3 months ended March 31, 2018 and 2019, respectively | (8) | |||||
Change related to ESOP shares | (2,471) | (2,471) | ||||
Net income | 10,858 | 10,858 | ||||
Cash dividends ($0.75 and $0.82 per share for 3 months ended March 31, 2018 and 2019, respectively) | (7,002) | (7,002) | ||||
Reclassification of stranded tax effects due to the Tax Cuts and Jobs Act | 526 | (526) | ||||
Purchase of 47,432 and 69,771 shares of common stock for 3 months ended March 31, 2018 and 2019, respectively | (2,694) | (2,694) | ||||
Other comprehensive income (loss) | (903) | (903) | ||||
Ending Balance at Mar. 31, 2018 | 314,518 | 51,720 | 345,940 | (3,875) | (33,488) | (45,779) |
Beginning Balance at Dec. 31, 2018 | 334,882 | 52,122 | 371,848 | (3,250) | (36,968) | (48,870) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of 88,943 and 84,164 shares of common stock for 3 months ended March 31, 2018 and 2019, respectively | 5,134 | 2,932 | 2,202 | |||
Issuance 1,957 and 1,929 shares of common stock under the employee stock purchase plan for 3 months ended March 31, 2018 and 2019, respectively | 105 | 105 | ||||
Unearned restricted stock compensation | 170 | 170 | ||||
Forfeiture of 208 and 703 shares of common stock for 3 months ended March 31, 2018 and 2019, respectively | (34) | (34) | ||||
Change related to ESOP shares | (981) | (981) | ||||
Net income | 11,203 | 11,203 | ||||
Cash dividends ($0.75 and $0.82 per share for 3 months ended March 31, 2018 and 2019, respectively) | (7,657) | (7,657) | ||||
Purchase of 47,432 and 69,771 shares of common stock for 3 months ended March 31, 2018 and 2019, respectively | (4,291) | (4,291) | ||||
Other comprehensive income (loss) | 2,249 | 2,249 | ||||
Ending Balance at Mar. 31, 2019 | $ 340,780 | $ 55,295 | $ 375,394 | $ (1,001) | $ (39,057) | $ (49,851) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of common stock (in shares) | 84,164 | 88,943 |
Issuance of common stock purchased under the employee stock purchase plan (in shares) | 1,929 | 1,957 |
Forfeiture of common stock (in shares) | 703 | 208 |
Cash dividends (in dollars per share) | $ 0.82 | $ 0.75 |
Purchase of common stock (in shares) | 69,771 | 47,432 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 11,203 | $ 10,858 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Depreciation | 847 | 821 |
Provision for loan losses | (1,246) | (765) |
Forfeiture of common stock | (34) | (8) |
Compensation expensed through issuance of common stock | 108 | 91 |
Provision for deferred income taxes | 454 | 303 |
Net gain on sale of other real estate owned and other repossessed assets | (11) | (2) |
Increase in accrued interest receivable | (2,186) | (593) |
Amortization of premium on investment securities, net | 100 | 134 |
Decrease (increase) in other assets | 426 | (86) |
Decrease in accrued interest payable and other liabilities | (955) | (1,465) |
Loans originated for sale | (29,847) | (31,571) |
Proceeds on sales of loans | 26,850 | 31,480 |
Net gain on sales of loans | (286) | (331) |
Net cash and cash equivalents provided by operating activities | 5,423 | 8,866 |
Cash Flows from Investing Activities | ||
Proceeds from maturities of investment securities available for sale | 10,251 | 10,711 |
Purchases of investment securities available for sale | (12,143) | (25,856) |
Loans made to customers, net of collections | (15,208) | 7,953 |
Proceeds on sale of other real estate owned and other repossessed assets | 62 | 2 |
Purchases of property and equipment | (427) | (651) |
Income from tax credit real estate, net | 262 | 390 |
Net cash and cash equivalents used in investing activities | (17,203) | (7,451) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 175,768 | 153,212 |
Net decrease in FHLB borrowings | 0 | (60,000) |
Issuance of common stock, net of costs | 5,026 | 4,713 |
Purchase of treasury stock | (4,291) | (2,694) |
Proceeds from the issuance of common stock through the employee stock purchase plan | 105 | 100 |
Dividends paid | (7,657) | (7,002) |
Net cash and cash equivalents provided by financing activities | 168,951 | 88,329 |
Increase in cash and cash equivalents | 157,171 | 89,744 |
Cash and cash equivalents: | ||
Beginning of period | 43,305 | 154,353 |
End of period | 200,476 | 244,097 |
Cash payments for: | ||
Interest paid to depositors | 6,260 | 3,844 |
Interest paid on other obligations | 1,575 | 1,874 |
Income taxes paid | 0 | 0 |
Noncash activities: | ||
Increase in maximum cash obligation related to ESOP shares | 981 | 2,471 |
Transfers to other real estate owned | 51 | 62 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 3,581 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and with instructions for Form 10-Q and Regulation S-X. These financial statements include all adjustments (consisting of normal recurring accruals) which in the opinion of management are considered necessary for the fair presentation of the financial position and results of operations for the periods shown. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company considers that it operates as one business segment, a commercial bank. Operating results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Form 10-K Annual Report of Hills Bancorporation and subsidiary (the “Company”) for the year ended December 31, 2018 filed with the Securities Exchange Commission on March 5, 2019 . The consolidated balance sheet as of December 31, 2018 , has been derived from the audited consolidated financial statements for that period. The Company evaluated subsequent events through the filing date of its quarterly report on Form 10-Q with the SEC. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the Company’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, letters of credit and investment securities as these activities are not subject to the requirements of ASC 606. Interest income on loans and investment securities is recognized on the accrual method in accordance with written contracts. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606 are the following: Service charges and fees on deposit accounts represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue which includes interchange income, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Trust income represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month, which is generally the time that payment is received. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity's obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. As of March 31, 2019, the Company did not have any significant contract balances. An entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company has not incurred or capitalized any contract acquisition costs as of March 31, 2019. Effect of New Financial Accounting Standards: In May 2014, The FASB and International Accounting Standards Board (IASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of ASU 2014-09 is that a company should recognize revenue to depict the transfer of promised good or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The adoption of ASU 2014-09 by the Company did not have a material impact on the recognition of revenue though did require additional disclosures on our material noninterest income streams discussed in revenue recognition above. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 created Subtopic 321-10, Investments-Equity Securities which is applicable to all entities except those in industries that account for substantially all investments at fair value through earnings or the change in net assets. Under this new subtopic, equity securities are generally required to be measured at fair value with unrealized holding gains and losses reflected in net income. ASU 2016-01 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company adopted ASU 2016-01 for the period ending March 31, 2018. There was no material impact on the financial statements however it required a change in disclosure and related methodology located in Note 6 Fair Value Measurements. In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases . The ASU provides guidance requiring lessees to recognize right-of-use (ROU) assets and lease liabilities for all leases other than those that meet the definition of short-term leases. For short-term leases, lessees may elect an accounting policy by class of underlying asset under which these assets and liabilities are not recognized and lease payments are generally recognized over the lease term on a straight-line basis. Under this new ASU, lessees will recognize right-of use assets and lease liabilities for most leases currently accounted for as operating leases under generally accepted accounting principles. For public companies, ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the ASU on January 1, 2019 and used the alternative transition approach which permits the effects of adoption to be applied at the effective date. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the 'package of practical expedients', which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also elected the short-term lease exemption and combining the lease and nonlease components practical expedients. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The most significant impact upon adoption relates to the recognition of new ROU assets and lease liabilities on our balance sheet for our equipment and real estate operating leases. Upon adoption, we recognized additional operating liabilities of $3.58 million , with corresponding ROU assets of the same amount based on the present value of the remaining rental payments, including options to extend that are expected to be exercised, under current leasing standards for existing operating leases. There was no cumulative effect of adopting the standard. In March 2016, the FASB issued ASU No. 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products . ASU 2016-04 applies to all entities that offer certain prepaid stored - value products. The ASU provides guidance for the derecognition of financial liabilities related to the issuance of these products and aligns the recognition of breakage to current authoritative guidance. For public companies, ASU 2016-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted ASU 2016-04 for the period ending March 31, 2018. There was no material impact on the financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (CECL). The ASU changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. Under the CECL model, we will be required to present certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, at the net amount expected to be collected. The 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. 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. Accordingly, we expect that the adoption of the CECL model will materially affect how we determine our allowance for loan losses and could require us to significantly increase our allowance. For public companies, ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, early adoption is permitted for the fiscal year beginning after December 15, 2018. The Company has implemented a software solution provided by a third party vendor to assist in the analysis of historical loan data to determine the CECL model that will be implemented. The Company anticipates running parallel calculations of the "incurred loss" and CECL models for the quarter ending June 30, 2019. We expect to recognize a one-time cumulative-effect adjustment to our allowance for loan losses as of the beginning of the first reporting period in which the new standard is adopted. The amount of the one-time cumulative-effect adjustment has not yet been determined. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. This ASU adds an SEC paragraph and amends other Topics pursuant to an SEC staff Announcement made at the September 22, 2016 Emerging Issues Task Force (EITF) meeting. The SEC paragraph applies to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606); ASU No. 2016-02, Leases (Topic 842); and ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU provides that a company should evaluate ASUs that have not yet been adopted to determine the appropriate financial statement disclosures about the potential material effects of those ASUs on the financial statements when adopted. If the company does not know or cannot reasonably estimate the impact that adoption of the ASUs referenced in this announcement is expected to have on the financial statements, then in addition to making a statement to that effect, the company should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the company when adopted. Additional qualitative disclosures should include a description of the effect of the accounting policies that the company expects to apply and a comparison to the company's current accounting policies. Also, the company should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 250), Simplifying the Test for Goodwill Impairment. The ASU simplifies the goodwill impairment test by requiring a company to perform its annual or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized when the carrying amount exceeds fair value. For public companies, ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of ASU No. 2017-04 by the Company is not expected to have a material impact. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. This ASU requires companies to change the recognition and presentation of the effects of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and requiring companies to present all of the elements of hedge accounting that affect earnings in the same income statement line as the hedged item. Furthermore, the standard eases the requirements for effectiveness testing, hedge documentation and applying the critical terms match method and introduces new alternatives that will permit companies to reduce the risk of material error corrections if they misapply the shortcut method. For public companies, ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2018. The Company adopted ASU No. 2017-12 for the period ending March 31, 2019. There was no material impact on the financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted ASU 2018-02 for the period ending March 31, 2018 and elected the specific identification method accounting policy. There was a $0.53 million reclassification recorded in stockholders' equity for the period ending March 31, 2018. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting . The amendments in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company adopted ASU No. 2018-07 for the period ending March 31, 2019. There was no material impact on the financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including removal of the requirement to disclose the valuation processes for Level 3 fair value measurements and the additional requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this ASU. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The adoption of ASU 2018-13 by the Company is not expected to have a material impact. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangements That Is a Service Contract . The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period, for all entities. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is in the process of evaluating the impact of this ASU on the financial statements. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes . The amendments in this ASU permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (LIBOR) swap rate, the Overnight Index Swap (OIS) Rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. The amendments in this ASU are required to be adopted concurrently with the amendments in ASU 2017-12. For public companies, this would be for fiscal years, and interim periods within those fiscal years beginning after December 15, 2018. The Company adopted ASU No. 2018-16 for the period ending March 31, 2019 concurrently with ASU 2017-12. There was no material impact on the financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed using the weighted average number of actual common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that would occur from the exercise of common stock options outstanding. ESOP shares are considered outstanding for this calculation unless unearned. The computation of basic and diluted earnings per share for the periods presented is as follows: Three Months Ended March 31, 2019 2018 Common shares outstanding at the beginning of the period 9,336,441 9,335,154 Weighted average number of net shares issued 30,816 48,969 Weighted average shares outstanding (basic) 9,367,257 9,384,123 Weighted average of potential dilutive shares attributable to stock options granted, computed under the treasury stock method 4,008 3,890 Weighted average number of shares (diluted) 9,371,265 9,388,013 Net income (In thousands) $ 11,203 $ 10,858 Earnings per share: Basic $ 1.20 $ 1.16 Diluted $ 1.20 $ 1.16 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following table summarizes the balances of each component of accumulated other comprehensive income (AOCI), included in stockholders’ equity, at March 31, 2019 and December 31, 2018 : March 31, December 31, 2018 (amounts in thousands) Net unrealized income (loss) on available-for-sale securities $ 559 $ (2,734 ) Net unrealized loss on derivatives used for cash flow hedges (1,894 ) (1,596 ) Tax effect $ 334 $ 1,080 Net-of-tax amount $ (1,001 ) $ (3,250 ) |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The carrying values of investment securities at March 31, 2019 and December 31, 2018 are summarized in the following table (dollars in thousands): March 31, 2019 December 31, 2018 Amount Percent Amount Percent Securities available for sale U.S. Treasury $ 91,573 28.27 % $ 83,155 26.07 % Other securities (FHLB, FHLMC and FNMA) 27,531 8.50 34,871 10.93 State and political subdivisions 204,813 63.23 200,900 63.00 Total securities available for sale $ 323,917 100.00 % $ 318,926 100.00 % Investment securities have been classified in the consolidated balance sheets according to management’s intent. Available-for-sale securities consist of debt securities not classified as trading or held to maturity. Available-for-sale securities are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, are reported as a separate component of stockholders' equity. There were no trading or held to maturity securities as of March 31, 2019 or December 31, 2018 . The carrying amount of available-for-sale securities and their approximate fair values were as follows as of March 31, 2019 and December 31, 2018 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value March 31, 2019: U.S. Treasury $ 91,181 $ 726 $ (334 ) $ 91,573 Other securities (FHLB, FHLMC and FNMA) 27,846 — (315 ) 27,531 State and political subdivisions 204,331 1,189 (707 ) 204,813 Total $ 323,358 $ 1,915 $ (1,356 ) $ 323,917 December 31, 2018: U.S. Treasury $ 83,839 $ 124 $ (808 ) $ 83,155 Other securities (FHLB, FHLMC and FNMA) 35,371 — (500 ) 34,871 State and political subdivisions 202,450 278 (1,828 ) 200,900 Total $ 321,660 $ 402 $ (3,136 ) $ 318,926 The amortized cost and estimated fair value of available-for-sale securities classified according to their contractual maturities at March 31, 2019 , were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 57,358 $ 57,169 Due after one year through five years 186,161 186,388 Due after five years through ten years 79,278 79,787 Due over ten years 561 573 Total $ 323,358 $ 323,917 As of March 31, 2019 investment securities with a carrying value of $11.72 million were pledged to collateralize derivative financial instruments and other borrowings. The following table shows the fair value, gross unrealized losses and the percentage of fair value represented by gross unrealized losses of applicable investment securities owned by the Company, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018 (in thousands): Less than 12 months 12 months or more Total March 31, 2019 # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % U.S. Treasury — $ — $ — — % 19 $ 46,923 $ (334 ) 0.71 % 19 $ 46,923 $ (334 ) 0.71 % Other securities (FHLB, FHLMC and FNMA) — — — — 11 27,531 (315 ) 1.14 11 27,531 (315 ) 1.14 State and political subdivisions 59 30,332 (148 ) 0.49 262 62,104 (559 ) 0.90 321 92,436 (707 ) 0.76 Total temporarily impaired securities 59 $ 30,332 $ (148 ) 0.49 % 292 $ 136,558 $ (1,208 ) 0.88 % 351 $ 166,890 $ (1,356 ) 0.81 % Less than 12 months 12 months or more Total December 31, 2018 # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % U.S. Treasury 6 $ 14,644 $ (49 ) 0.33 % 19 $ 46,443 $ (759 ) 1.63 % 25 $ 61,087 $ (808 ) 1.32 % Other securities (FHLB, FHLMC and FNMA) — — — — 14 34,871 (500 ) 1.43 14 34,871 (500 ) 1.43 State and political subdivisions 113 31,022 (162 ) 0.52 325 77,921 (1,666 ) 2.14 438 108,943 (1,828 ) 1.68 Total temporarily impaired securities 119 $ 45,666 $ (211 ) 0.46 % 358 $ 159,235 $ (2,925 ) 1.84 % 477 $ 204,901 $ (3,136 ) 1.53 % The Company considered the following information in reaching the conclusion that the impairments disclosed in the table above are temporary and not other-than-temporary impairments. None of the unrealized losses in the above table was due to the deterioration in the credit quality of any of the issues that might result in the non-collection of contractual principal and interest. The unrealized losses are due to changes in interest rates. The Company has not recognized any unrealized loss in income because management does not have the intent to sell the securities included in the previous table. Management has concluded that it is more likely than not that the Company will not be required to sell these securities prior to recovery of the amortized cost basis. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans Classes of loans are as follows: March 31, December 31, (Amounts In Thousands) Agricultural $ 93,573 $ 92,673 Commercial and financial 227,403 229,501 Real estate: Construction, 1 to 4 family residential 73,868 72,279 Construction, land development and commercial 105,466 113,807 Mortgage, farmland 238,109 236,454 Mortgage, 1 to 4 family first liens 916,408 912,059 Mortgage, 1 to 4 family junior liens 152,183 152,625 Mortgage, multi-family 351,090 352,434 Mortgage, commercial 402,073 383,314 Loans to individuals 29,739 30,072 Obligations of state and political subdivisions 53,153 52,725 $ 2,643,065 $ 2,627,943 Net unamortized fees and costs 943 952 $ 2,644,008 $ 2,628,895 Less allowance for loan losses 36,520 37,810 $ 2,607,488 $ 2,591,085 Changes in the allowance for loan losses, the allowance for loan losses applicable to impaired loans and the related loan balance of impaired loans for the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,789 $ 5,826 $ 3,292 $ 3,972 $ 12,516 $ 8,165 $ 1,250 $ 37,810 Charge-offs — (180 ) (8 ) — (177 ) (4 ) (108 ) (477 ) Recoveries 10 184 2 5 110 85 37 433 Provision (258 ) 174 (358 ) (106 ) (819 ) (23 ) 144 (1,246 ) Ending balance $ 2,541 $ 6,004 $ 2,928 $ 3,871 $ 11,630 $ 8,223 $ 1,323 $ 36,520 Ending balance, individually evaluated for impairment $ 258 $ 1,375 $ — $ — $ 74 $ 483 $ 59 $ 2,249 Ending balance, collectively evaluated for impairment $ 2,283 $ 4,629 $ 2,928 $ 3,871 $ 11,556 $ 7,740 $ 1,264 $ 34,271 Loans: Ending balance $ 93,573 $ 227,403 $ 179,334 $ 238,109 $ 1,068,591 $ 753,163 $ 82,892 $ 2,643,065 Ending balance, individually evaluated for impairment $ 2,740 $ 4,039 $ 832 $ 4,189 $ 6,879 $ 4,333 $ 59 $ 23,071 Ending balance, collectively evaluated for impairment $ 90,833 $ 223,364 $ 178,502 $ 233,920 $ 1,061,712 $ 748,830 $ 82,833 $ 2,619,994 Changes in the allowance for loan losses for the three months ended March 31, 2018 were as follows: Three Months Ended March 31, 2018 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,294 $ 4,837 $ 2,989 $ 3,669 $ 8,668 $ 5,700 $ 1,243 $ 29,400 Charge-offs — (30 ) — — (121 ) (1 ) (115 ) (267 ) Recoveries 12 248 143 — 98 4 37 542 Provision (53 ) (397 ) (352 ) 40 10 91 (104 ) (765 ) Ending balance $ 2,253 $ 4,658 $ 2,780 $ 3,709 $ 8,655 $ 5,794 $ 1,061 $ 28,910 Ending balance, individually evaluated for impairment $ 199 $ 759 $ 40 $ — $ 75 $ 493 $ 63 $ 1,629 Ending balance, collectively evaluated for impairment $ 2,054 $ 3,899 $ 2,740 $ 3,709 $ 8,580 $ 5,301 $ 998 $ 27,281 Loans: Ending balance $ 83,940 $ 214,004 $ 166,761 $ 218,462 $ 980,150 $ 705,576 $ 83,032 $ 2,451,925 Ending balance, individually evaluated for impairment $ 2,823 $ 2,550 $ 946 $ 3,615 $ 6,564 $ 8,025 $ 63 $ 24,586 Ending balance, collectively evaluated for impairment $ 81,117 $ 211,454 $ 165,815 $ 214,847 $ 973,586 $ 697,551 $ 82,969 $ 2,427,339 The following table presents the credit quality indicators by type of loans in each category as of March 31, 2019 and December 31, 2018 , respectively (amounts in thousands): Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial March 31, 2019 Grade: Excellent $ 4,091 $ 2,718 $ — $ 203 Good 15,703 47,718 12,376 17,416 Satisfactory 39,421 123,709 44,934 57,452 Monitor 27,703 38,547 14,185 21,312 Special Mention 836 8,566 1,978 7,576 Substandard 5,819 6,145 395 1,507 Total $ 93,573 $ 227,403 $ 73,868 $ 105,466 Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family first liens Real Estate: Mortgage, 1 to 4 family junior liens Real Estate: Mortgage, multi- family March 31, 2019 Grade: Excellent $ 5,469 $ 2,307 $ 526 $ 22,051 Good 50,050 31,571 4,071 59,203 Satisfactory 126,988 756,430 138,533 189,192 Monitor 45,440 97,980 6,241 58,506 Special Mention 1,117 9,414 1,141 15,947 Substandard 9,045 18,706 1,671 6,191 Total $ 238,109 $ 916,408 $ 152,183 $ 351,090 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total March 31, 2019 Grade: Excellent $ 35,391 $ — $ 7,985 $ 80,741 Good 86,117 193 15,414 339,832 Satisfactory 195,035 28,663 21,563 1,721,920 Monitor 74,094 588 8,191 392,787 Special Mention 2,901 229 — 49,705 Substandard 8,535 66 — 58,080 Total $ 402,073 $ 29,739 $ 53,153 $ 2,643,065 Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial December 31, 2018 Grade: Excellent $ 3,667 $ 3,322 $ — $ 209 Good 15,342 51,562 13,029 16,667 Satisfactory 39,897 121,759 42,043 68,123 Monitor 27,510 35,897 15,045 19,888 Special Mention 647 11,418 1,767 7,635 Substandard 5,610 5,543 395 1,285 Total $ 92,673 $ 229,501 $ 72,279 $ 113,807 Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family first liens Real Estate: Mortgage, 1 to 4 family junior liens Real Estate: Mortgage, multi- family December 31, 2018 Grade: Excellent $ 5,619 $ 2,715 $ 520 $ 22,058 Good 52,364 33,134 4,569 60,047 Satisfactory 126,706 752,473 138,533 187,641 Monitor 41,486 96,187 6,242 60,398 Special Mention 1,055 10,439 1,130 16,065 Substandard 9,224 17,111 1,631 6,225 Total $ 236,454 $ 912,059 $ 152,625 $ 352,434 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total December 31, 2018 Grade: Excellent $ 34,096 $ — $ 8,117 $ 80,323 Good 86,453 315 15,652 349,134 Satisfactory 177,271 28,797 20,685 1,703,928 Monitor 74,990 647 8,271 386,561 Special Mention 3,228 217 — 53,601 Substandard 7,276 96 — 54,396 Total $ 383,314 $ 30,072 $ 52,725 $ 2,627,943 The below are descriptions of the credit quality indicators: Excellent – Excellent rated loans are prime quality loans covered by highly liquid collateral with generous margins or supported by superior current financial conditions reflecting substantial net worth, relative to total credit extended, and based on assets of a stable and non-speculative nature whose values can be readily verified. Identified repayment source or cash flow is abundant and assured. Good – Good rated loans are adequately secured by readily marketable collateral or good financial condition characterized by liquidity, flexibility and sound net worth. Loans are supported by sound primary and secondary payment sources and timely and accurate financial information. Satisfactory – Satisfactory rated loans are loans to borrowers of average financial means not especially vulnerable to changes in economic or other circumstances, where the major support for the extension is sufficient collateral of a marketable nature, and the primary source of repayment is seen to be clear and adequate. Monitor – Monitor rated loans are identified by management as warranting special attention for a variety of reasons that may bear on ultimate collectability. This may be due to adverse trends, a particular industry, loan structure, or repayment that is dependent on projections, or a one-time occurrence. Special Mention – Special mention rated loans are supported by a marginal payment capacity and are marginally protected by collateral. There are identified weaknesses that if not monitored and corrected may adversely affect the Company’s credit position. A special mention credit would typically have a weakness in one of the general categories (cash flow, collateral position or payment history) but not in all categories. Substandard – Substandard loans are not adequately supported by the paying capacity of the borrower and may be inadequately collateralized. These loans have a well-defined weakness or weaknesses. For these loans, it is more probable than not that the Company could sustain some loss if the deficiency(ies) is not corrected. Past due loans as of March 31, 2019 and December 31, 2018 were as follows: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Accruing Loans Past Due 90 Days or More (Amounts In Thousands) March 31, 2019 Agricultural $ 2,057 $ 445 $ 1,616 $ 4,118 $ 89,455 $ 93,573 $ 583 Commercial and financial 1,158 371 242 1,771 225,632 227,403 — Real estate: Construction, 1 to 4 family residential 692 — — 692 73,176 73,868 — Construction, land development and commercial 1,036 32 — 1,068 104,398 105,466 — Mortgage, farmland 6,954 — 630 7,584 230,525 238,109 — Mortgage, 1 to 4 family first liens 9,145 666 2,790 12,601 903,807 916,408 — Mortgage, 1 to 4 family junior liens 190 395 — 585 151,598 152,183 — Mortgage, multi-family 143 — — 143 350,947 351,090 — Mortgage, commercial 1,633 — 281 1,914 400,159 402,073 — Loans to individuals 124 46 — 170 29,569 29,739 — Obligations of state and political subdivisions — — — — 53,153 53,153 — $ 23,132 $ 1,955 $ 5,559 $ 30,646 $ 2,612,419 $ 2,643,065 $ 583 December 31, 2018 Agricultural $ 1,026 $ — $ 135 $ 1,161 $ 91,512 $ 92,673 $ — Commercial and financial 988 459 225 1,672 227,829 229,501 — Real estate: Construction, 1 to 4 family residential — — 212 212 72,067 72,279 212 Construction, land development and commercial 233 202 — 435 113,372 113,807 — Mortgage, farmland 193 388 — 581 235,873 236,454 — Mortgage, 1 to 4 family first liens 3,972 833 3,234 8,039 904,020 912,059 158 Mortgage, 1 to 4 family junior liens 199 36 — 235 152,390 152,625 — Mortgage, multi-family — — — — 352,434 352,434 — Mortgage, commercial 733 344 — 1,077 382,237 383,314 — Loans to individuals 195 — 22 217 29,855 30,072 — Obligations of state and political subdivisions — — — — 52,725 52,725 — $ 7,539 $ 2,262 $ 3,828 $ 13,629 $ 2,614,314 $ 2,627,943 $ 370 The Company does not have a material amount of loans that are past due less than 90 days where there are serious doubts as to the ability of the borrowers to comply with the loan repayment terms. Certain impaired loan information by loan type at March 31, 2019 and December 31, 2018 , was as follows: March 31, 2019 December 31, 2018 Non-accrual loans (1) Accruing loans past due 90 days or more TDR loans Non- accrual loans (1) Accruing loans past due 90 days or more TDR loans (Amounts In Thousands) (Amounts In Thousands) Agricultural $ 1,308 $ 583 $ 97 $ 1,338 $ — $ 120 Commercial and financial 1,857 — 2,143 1,476 — 2,686 Real estate: Construction, 1 to 4 family residential 395 — — — 212 — Construction, land development and commercial — — 326 — — 328 Mortgage, farmland 1,037 — 3,903 1,062 — 3,301 Mortgage, 1 to 4 family first liens 5,833 — 1,132 5,799 158 1,143 Mortgage, 1 to 4 family junior liens — — 24 — — 24 Mortgage, multi-family 143 — — 145 — — Mortgage, commercial 1,196 — 925 1,009 — 937 $ 11,769 $ 583 $ 8,550 $ 10,829 $ 370 $ 8,539 (1) There were $5.07 million and $4.84 million of TDR loans included within nonaccrual loans as of March 31, 2019 and December 31, 2018 , respectively. Loans 90 days or more past due that are still accruing interest increased $0.21 million from December 31, 2018 to March 31, 2019 due to an increase in the number of accruing loans past due 90 days or more. As of March 31, 2019 there were 3 accruing loans past due 90 days or more. The average accruing loans past due as of March 31, 2019 are $0.19 million . There were 2 accruing loans past due 90 days or more as of December 31, 2018 and the average loan balance was $0.19 million . The accruing loans past due 90 days or more balances are believed to be adequately collateralized and the Company expects to collect all principal and interest as contractually due under these loans. The Company may modify the terms of a loan to maximize the collection of amounts due. Such a modification is considered a troubled debt restructuring (“TDR”). In most cases, the modification is either a reduction in interest rate, conversion to interest only payments or an extension of the maturity date. The borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term, so a concessionary modification is granted to the borrower that would otherwise not be considered. TDR loans accrue interest as long as the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. Below is a summary of information for TDR loans as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Number of contracts Recorded investment Commitments outstanding Number of contracts Recorded investment Commitments outstanding (Amounts In Thousands) (Amounts In Thousands) Agricultural 6 $ 1,512 $ 12 5 $ 1,316 $ 91 Commercial and financial 13 3,646 135 13 3,867 75 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial 2 326 — 2 328 — Mortgage, farmland 9 4,873 — 8 4,291 — Mortgage, 1 to 4 family first liens 15 1,695 — 16 1,710 — Mortgage, 1 to 4 family junior liens 1 24 — 1 24 — Mortgage, multi-family — — — — — — Mortgage, commercial 9 1,798 — 9 1,839 — Loans to individuals — — — — — — 55 $ 13,874 $ 147 54 $ 13,375 $ 166 The following is a summary of TDR loans that were modified during the three months ended March 31, 2019 : Three Months Ended March 31, 2019 Number of contracts Pre-modification recorded investment Post-modification recorded investment (Amounts In Thousands) Agricultural 1 $ 250 $ 250 Commercial and financial — — — Real estate: Construction, 1 to 4 family residential — — — Construction, land development and commercial — — — Mortgage, farmland 1 620 620 Mortgage, 1 to 4 family first lien — — — Mortgage, 1 to 4 family junior liens — — — Mortgage, multi-family — — — Mortgage, commercial — — — 2 $ 870 $ 870 The Company had commitments to lend $0.15 million in additional borrowings to restructured loan customers as of March 31, 2019 . The Company had commitments to lend $0.17 million in additional borrowings to restructured loan customers as of December 31, 2018 . These commitments were in the normal course of business. The additional borrowings were not used to facilitate payments on these loans. There was one TDR loan that was in payment default (defined as past due 90 days or more) totaling $0.25 million during the period ended March 31, 2019 and none for the year ended December 31, 2018 . Information regarding impaired loans as of and for the three months ended March 31, 2019 is as follows: March 31, 2019 Three Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,359 $ 1,653 $ — $ 1,377 $ 9 Commercial and financial 1,639 2,493 — 1,682 11 Real estate: Construction, 1 to 4 family residential 110 148 — 111 — Construction, land development and commercial 722 738 — 722 4 Mortgage, farmland 4,189 4,667 — 4,198 39 Mortgage, 1 to 4 family first liens 6,068 7,860 — 6,143 9 Mortgage, 1 to 4 family junior liens — 252 — — — Mortgage, multi-family 143 213 — 144 — Mortgage, commercial 2,047 2,745 — 2,068 10 Loans to individuals — 14 — — — $ 16,277 $ 20,783 $ — $ 16,445 $ 82 With an allowance recorded: Agricultural $ 1,381 $ 1,552 $ 258 $ 1,396 $ 8 Commercial and financial 2,400 2,429 1,375 2,476 23 Real estate: Construction, 1 to 4 family residential — — — — — Construction, land development and commercial — — — — — Mortgage, farmland — — — — — Mortgage, 1 to 4 family first liens 787 794 73 789 4 Mortgage, 1 to 4 family junior liens 24 24 1 24 — Mortgage, multi-family 1,402 1,402 282 1,408 17 Mortgage, commercial 741 741 201 744 8 Loans to individuals 59 59 59 56 2 $ 6,794 $ 7,001 $ 2,249 $ 6,893 $ 62 Total: Agricultural $ 2,740 $ 3,205 $ 258 $ 2,773 $ 17 Commercial and financial 4,039 4,922 1,375 4,158 34 Real estate: Construction, 1 to 4 family residential 110 148 — 111 — Construction, land development and commercial 722 738 — 722 4 Mortgage, farmland 4,189 4,667 — 4,198 39 Mortgage, 1 to 4 family first liens 6,855 8,654 73 6,932 13 Mortgage, 1 to 4 family junior liens 24 276 1 24 — Mortgage, multi-family 1,545 1,615 282 1,552 17 Mortgage, commercial 2,788 3,486 201 2,812 18 Loans to individuals 59 73 59 56 2 $ 23,071 $ 27,784 $ 2,249 $ 23,338 $ 144 Information regarding impaired loans as of December 31, 2018 is as follows: Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,395 $ 1,663 $ — Commercial and financial 1,650 2,503 — Real estate: Construction, 1 to 4 family residential 111 148 — Construction, land development and commercial 328 344 — Mortgage, farmland 3,612 4,071 — Mortgage, 1 to 4 family first liens 6,089 7,819 — Mortgage, 1 to 4 family junior liens — 254 — Mortgage, multi-family 145 213 — Mortgage, commercial 1,871 2,486 — Loans to individuals — 14 — $ 15,201 $ 19,515 $ — With an allowance recorded: Agricultural $ 1,065 $ 1,229 $ 479 Commercial and financial 2,512 2,512 1,189 Real estate: Construction, 1 to 4 family residential 698 698 4 Construction, land development and commercial — — — Mortgage, farmland — — — Mortgage, 1 to 4 family first liens 899 974 70 Mortgage, 1 to 4 family junior liens 24 24 2 Mortgage, multi-family 7,447 7,447 305 Mortgage, commercial 75 75 1 Loans to individuals 64 64 64 $ 12,784 $ 13,023 $ 2,114 Total: Agricultural $ 2,460 $ 2,892 $ 479 Commercial and financial 4,162 5,015 1,189 Real estate: Construction, 1 to 4 family residential 809 846 4 Construction, land development and commercial 328 344 — Mortgage, farmland 3,612 4,071 — Mortgage, 1 to 4 family first liens 6,988 8,793 70 Mortgage, 1 to 4 family junior liens 24 278 2 Mortgage, multi-family 7,592 7,660 305 Mortgage, commercial 1,946 2,561 1 Loans to individuals 64 78 64 $ 27,985 $ 32,538 $ 2,114 Impaired loans decreased $4.91 million from December 31, 2018 to March 31, 2019 . Impaired loans include any loan that has been placed on nonaccrual status, accruing loans past due 90 days or more and TDR loans. Impaired loans also include loans that, based on management’s evaluation of current information and events, the Company expects to be unable to collect in full according to the contractual terms of the original loan agreement. Impaired loans were 0.87% of loans held for investment as of March 31, 2019 and 1.06% as of December 31, 2018 . The decrease in impaired loans is due mainly to a decrease of $5.99 million in relationships with a specific allowance for losses, and is offset by a $0.21 million increase in 90 days or more accruing loans, an increase in TDR loans of $0.50 million , and an increase in nonaccrual loans of $0.94 million from December 31, 2018 to March 31, 2019 . The Company regularly reviews a substantial portion of the loans in the portfolio and assesses whether the loans are impaired in accordance with ASC 310. If the loans are impaired, the Company determines if a specific allowance is appropriate. In addition, the Company's management also reviews and, where determined necessary, provides allowances for particular loans based upon (1) reviews of specific borrowers and (2) management’s assessment of areas that management considers are of higher credit risk, including loans that have been restructured. Loans that are determined not to be impaired and for which there are no specific allowances are classified into one or more risk categories. Based upon the risk category assigned, the Company allocates a percentage, as determined by management, for a required allowance needed. The determination of the appropriate percentage begins with historical loss experience factors, which are then adjusted for levels and trends in past due loans, levels and trends in charged-off and recovered loans, trends in volume growth, trends in problem and watch loans, trends in restructured loans, local economic trends and conditions, industry and other conditions, and effects of changing interest rates. Specific allowances for losses on impaired loans are established if the loan balances exceed the net present value of the relevant future cash flows or the fair value of the relevant collateral based on updated appraisals and/or updated collateral analysis for the properties if the loan is collateral dependent. The Company may recognize a charge off or record a specific allowance related to an impaired loan if there is a collateral shortfall or it is unlikely the borrower can make all principal and interest payments as contractually due. For loans that are collateral dependent, losses are evaluated based on the portion of a loan that exceeds the fair market value of the collateral. In general, this is the amount that the carrying value of the loan exceeds the related appraised value less estimated costs to sell the collateral. Generally, it is the Company’s policy not to rely on appraisals that are older than one year prior to the date the impairment is being measured. The most recent appraisal values may be adjusted if, in the Company’s judgment, experience and other market data indicate that the property’s value, use, condition, exit market or other variable affecting its value may have changed since the appraisal was performed, consistent with the December 2006 joint interagency guidance on the allowance for loan losses. The charge off or loss adjustment supported by an appraisal is considered the minimum charge off. Any adjustments made to the appraised value are to provide an additional charge off or specific reserve based on the applicable facts and circumstances. In instances where there is an estimated decline in value, a specific reserve may be provided or a charge off taken pending confirmation of the amount of the loss from an updated appraisal. Upon receipt of the new appraisals, an additional specific reserve may be provided or charge off taken based on the appraised value of the collateral. On average, appraisals are obtained within one month of order. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Bank leases branch offices, parking facilities and certain equipment under operating leases. The leases have remaining lease terms of 1 year to 16 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. As the options are reasonably certain to be exercised, they are recognized as part of the right-of-use assets and lease liabilities. For the three months ended March 31, 2019, total operating lease expense was $0.17 million included in occupancy expenses in the consolidated statement of income. Included in this were $0.14 million of operating lease costs, $0.01 million of short term lease costs, and $0.02 million of variable lease costs. For the three months ended March 31, 2019, cash paid for amounts included in the measurement of operating lease liabilities was $0.14 million and right-of-use assets obtained in exchange for lease obligations was $3.58 million . As of March 31, 2019, operating lease right-of-use assets included in other assets and liabilities was $3.58 million . The weighted average remaining lease term for operating leases was 11.20 years and the weighted average discount rate for operating leases was 3.43% . Discount rates used were determined from FHLB borrowing rates for comparable terms. As of March 31, 2019, maturities of lease liabilities were as follows: Year ending December 31: (Amounts In Thousands) 2019 $ 467 2020 470 2021 456 2022 447 2023 301 Thereafter 2,259 Total lease payments 4,400 Less imputed interest (819 ) Total operating lease liabilities $ 3,581 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying value and estimated fair values of the Company's financial instruments as of March 31, 2019 are as follows: March 31, 2019 Carrying Amount Estimated Fair Value Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) (Amounts In Thousands) Financial instrument assets: Cash and cash equivalents $ 200,476 $ 200,476 $ 200,476 $ — $ — Investment securities 336,183 336,183 91,573 244,610 — Loans held for sale 5,267 5,267 — 5,267 — Loans Agricultural 91,032 93,028 — — 93,028 Commercial and financial 221,399 225,946 — — 225,946 Real estate: Construction, 1 to 4 family residential 72,589 73,965 — — 73,965 Construction, land development and commercial 103,817 105,134 — — 105,134 Mortgage, farmland 234,238 235,465 — — 235,465 Mortgage, 1 to 4 family first liens 907,397 888,705 — — 888,705 Mortgage, 1 to 4 family junior liens 150,507 148,210 — — 148,210 Mortgage, multi-family 347,138 344,083 — — 344,083 Mortgage, commercial 397,802 395,694 — — 395,694 Loans to individuals 28,921 30,424 — — 30,424 Obligations of state and political subdivisions 52,648 52,338 — — 52,338 Accrued interest receivable 13,970 13,970 — 13,970 — Total financial instrument assets $ 3,163,384 $ 3,148,888 $ 292,049 $ 263,847 $ 2,592,992 Financial instrument liabilities Deposits Noninterest-bearing deposits $ 363,142 $ 363,142 $ — $ 363,142 $ — Interest-bearing deposits 2,233,750 2,243,433 — 2,243,433 — Other borrowings — — — — — Federal Home Loan Bank borrowings 215,000 208,188 — 208,188 — Interest rate swaps 1,894 1,894 — 1,894 — Accrued interest payable 2,051 2,051 — 2,051 — Total financial instrument liabilities $ 2,815,837 $ 2,818,708 $ — $ 2,818,708 $ — Face Amount Financial instrument with off-balance sheet risk: Loan commitments $ 393,424 $ — $ — $ — $ — Letters of credit 8,918 — — — — Total financial instrument liabilities with off-balance-sheet risk $ 402,342 $ — $ — $ — $ — (1) Considered Level 1 under Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. The carrying value and estimated fair values of the Company's financial instruments as of December 31, 2018 are as follows: December 31, 2018 Carrying Amount Estimated Fair Value Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) (Amounts In Thousands) Financial instrument assets: Cash and cash equivalents $ 43,305 $ 43,305 $ 43,305 $ — $ — Investment securities 331,098 331,098 83,155 247,943 — Loans held for sale 1,984 1,984 — 1,984 — Loans Agricultural 89,884 93,736 — — 93,736 Commercial and financial 223,675 227,774 — — 227,774 Real estate: Construction, 1 to 4 family residential 70,982 72,419 — — 72,419 Construction, land development and commercial 111,812 112,960 — — 112,960 Mortgage, farmland 232,482 235,771 — — 235,771 Mortgage, 1 to 4 family first liens 902,261 882,908 — — 882,908 Mortgage, 1 to 4 family junior liens 150,859 148,128 — — 148,128 Mortgage, multi-family 348,351 342,099 — — 342,099 Mortgage, commercial 379,232 376,257 — — 376,257 Loans to individuals 29,349 29,962 — — 29,962 Obligations of state and political subdivisions 52,198 51,945 — — 51,945 Accrued interest receivable 11,784 11,784 — 11,784 — Total financial instrument assets $ 2,979,256 $ 2,962,130 $ 126,460 $ 261,711 $ 2,573,959 Financial instrument liabilities: Deposits Noninterest-bearing deposits $ 372,152 $ 372,152 $ — $ 372,152 $ — Interest-bearing deposits 2,048,972 2,059,336 — 2,059,336 — Other borrowings — — — — — Federal Home Loan Bank borrowings 215,000 207,948 — 207,948 — Interest rate swaps 1,596 1,596 1,596 Accrued interest payable 1,812 1,812 — 1,812 — Total financial instrument liabilities $ 2,639,532 $ 2,642,844 $ — $ 2,642,844 $ — Face Amount Financial instrument with off-balance sheet risk: Loan commitments $ 375,940 $ — $ — $ — $ — Letters of credit 9,033 — — — — Total financial instrument liabilities with off-balance-sheet risk $ 384,973 $ — $ — $ — $ — (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. Fair value of financial instruments : FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) provides a single definition for fair value, a framework for measuring fair value and expanded disclosures concerning fair value. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair market value of its financial instruments based on the fair value hierarchy established in ASC 820. There are three levels of inputs that may be used to measure fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices included within Level 1. Observable inputs include the quoted prices for similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs supported by little or no market activity for financial instruments. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. The Company is required to use observable inputs, to the extent available, in the fair value estimation process unless that data results from forced liquidations or distressed sales. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value. ASSETS Investment securities available for sale : Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If a quoted price is not available, the fair value is obtained from benchmarking the security against similar securities. U.S. Treasury securities are considered Level 1 with the remaining securities considered Level 2. The pricing for investment securities is obtained from an independent source. There are no Level 3 investment securities owned by the Company. The Company obtains an understanding of the independent source’s valuation methodologies used to determine fair value by level of security. The Company validates assigned fair values on a sample basis using an additional third-party provider pricing service to determine if the fair value measurement is reasonable. Due to the nature of our investment portfolio, we do not expect significant and unusual fluctuations as fair value changes primarily relate to interest rate changes. No unusual fluctuations were identified during the three months ended March 31, 2019 . If a fluctuation requiring investigation was identified, the Company would research the change with the independent source or other available information. Loans held for sale and Loans : ASU 2016-1, Financial Instruments -Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. This update is effective for financial statement periods beginning after December 15, 2017. Therefore, the fair value presented herein may not be comparable to prior periods. Methodologies utilized for this financial statement period are as follows: •Income Approach: Fair value is determined based on a discounted cash flow analysis. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk. •Asset Approach: Fair value is determined based on the estimated values of the underlying collateral or individual analysis of receipts. This provides a better indication of value than the contractual income streams as these loans are not performing or exhibit strong signs indicative of non-performance. Fair value has been estimated in accordance with ASC 820, Fair Value Measurements and Disclosures, and is intended to represent the price that would be received in an orderly transaction between market participants as of the measurement date. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, at least one significant assumption not observable in the market was utilized. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Inputs to these valuation techniques are subjective in nature, involve uncertainties and require significant judgment and therefore cannot be determined with precision. Accordingly, the fair value estimates presented are not necessarily indicative of the amounts to be realized in a current market exchange. Loans are classified as Level 3. Loans held for sale are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the short time between origination of the loan and its sale on the secondary market (Level 2). The market is active for these loans and as a result prices for similar assets are available. Impaired loans : A loan is considered to be impaired when it is probable that all of the principal and interest due may not be collected according to its contractual terms. Generally, when a loan is considered impaired, the amount of reserve required under ASC 310, Receivables , is measured based on the fair value of the underlying collateral. The Company makes such measurements on all material loans deemed impaired using the fair value of the collateral for collateral dependent loans. The fair value of collateral used by the Company is determined by obtaining an observable market price or by obtaining an appraised value from an independent, licensed or certified appraiser, using observable market data. This data includes information such as selling price of similar properties and capitalization rates of similar properties sold within the market, expected future cash flows or earnings of the subject property based on current market expectations, and other relevant factors. All appraised values are adjusted for market-related trends based on the Company's experience in sales and other appraisals of similar property types as well as estimated selling costs. Each quarter management reviews all collateral dependent impaired loans on a loan-by-loan basis to determine whether updated appraisals are necessary based on loan performance, collateral type and guarantor support. At times, the Company measures the fair value of collateral dependent impaired loans using appraisals with dates prior to one year from the date of review. These appraisals are discounted by applying current, observable market data about similar property types such as sales contracts, estimations of value by individuals familiar with the market, other appraisals, sales or collateral assessments based on current market activity until updated appraisals are obtained. Depending on the length of time since an appraisal was performed, the data provided through reviews and estimated selling costs, collateral values are typically discounted by 0-35%. These loans are considered Level 3 as the instruments used to determine fair market value require significant management judgment and estimation. Foreclosed assets : The Company does not record foreclosed assets at fair value on a recurring basis. Foreclosed assets consist mainly of other real estate owned but may include other types of assets repossessed by the Company. Foreclosed assets are adjusted to the lower of carrying value or fair value less the cost of disposal. Fair value is generally based upon independent market prices or appraised values of the collateral, and may include a marketability discount as deemed necessary by management based on its experience with similar types of real estate. The value of foreclosed assets is evaluated periodically as a nonrecurring fair value adjustment. Foreclosed assets are classified as Level 3. Off-balance sheet instruments : Fair values for outstanding letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair value of the outstanding letters of credit is not significant. Unfunded loan commitments are not valued since the loans are generally priced at market at the time of funding (Level 2). LIABILITIES Interest Rate Swap Agreements : The fair value is estimated using forward-looking interest rate curves and is calculated using discounted cash flows that are observable or that can be corroborated by observable market data (Level 2). Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below represents the balances of assets and liabilities measured at fair value on a recurring basis: March 31, 2019 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Securities available for sale (Amounts In Thousands) U.S. Treasury $ 91,573 $ — $ — $ 91,573 State and political subdivisions — 204,813 — 204,813 Other securities (FHLB, FHLMC and FNMA) — 27,531 — 27,531 Derivative Financial Instruments Interest rate swaps $ — (1,894 ) $ — (1,894 ) Total $ 91,573 $ 230,450 $ — $ 322,023 December 31, 2018 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Securities available for sale (Amounts In Thousands) U.S. Treasury $ 83,155 $ — $ — $ 83,155 State and political subdivisions — 200,900 — 200,900 Other securities (FHLB, FHLMC and FNMA) — 34,871 — 34,871 Derivative Financial Instruments Interest rate swaps — (1,596 ) — (1,596 ) Total $ 83,155 $ 234,175 $ — $ 317,330 (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. There were no transfers between Levels 1, 2 or 3 during the three months ended March 31, 2019 and the year ended December 31, 2018 . Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company is required to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The valuation methodologies used to measure these fair value adjustments are described above. The following tables present the Company’s assets that are measured at fair value on a nonrecurring basis. March 31, 2019 Three Months Ended March 31, 2019 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Total Losses (Amounts in Thousands) Loans (4) Agricultural $ — $ — $ 2,090 $ 2,090 $ — Commercial and financial — — 2,566 2,566 50 Real Estate: — Construction, 1 to 4 family residential — — — — — Construction, land development and commercial — — 612 612 8 Mortgage, farmland — — 3,674 3,674 — Mortgage, 1 to 4 family first liens — — 6,746 6,746 90 Mortgage, 1 to 4 family junior liens — — 23 23 — Mortgage, multi-family — — 1,120 1,120 — Mortgage, commercial — — 2,108 2,108 — Loans to individuals — — — — — Foreclosed assets (5) — — — — — Total $ — $ — $ 18,939 $ 18,939 $ 148 (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. (4) Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully-charged off is zero . (5) Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (continued) December 31, 2018 Year Ended December 31, 2018 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Total Losses (Amounts in Thousands) Loans (4) Agricultural $ — $ — $ 1,160 $ 1,160 $ 63 Commercial and financial — — 2,882 2,882 122 Real Estate: Construction, 1 to 4 family residential — — — — — Construction, land development and commercial — — 703 703 — Mortgage, farmland — — 3,848 3,848 — Mortgage, 1 to 4 family first liens — — 6,729 6,729 520 Mortgage, 1 to 4 family junior liens — — 22 22 60 Mortgage, multi-family — — 7,286 7,286 — Mortgage, commercial — — 1,458 1,458 349 Loans to individuals — — — — — Foreclosed assets (5) — — — — — Total $ — $ — $ 24,088 $ 24,088 $ 1,114 (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. (4) Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully-charged off is zero. (5) Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program On July 26, 2005, the Company’s Board of Directors authorized a program to repurchase up to a total of 1,500,000 shares of the Company’s common stock (the “2005 Stock Repurchase Program”). The Company’s Board of Directors has authorized the 2005 Stock Repurchase Program through December 31, 2020. The Company expects the purchases pursuant to the 2005 Stock Repurchase Program to be made from time to time in private transactions at a price equal to the most recent quarterly independent appraisal of the shares of the Company’s common stock and with the Board reviewing the overall results of the 2005 Stock Repurchase Program on a quarterly basis. All purchases made pursuant to the 2005 Stock Repurchase Program since its inception have been made on that basis. The amount and timing of stock repurchases will be based on various factors, such as the Board’s assessment of the Company’s capital structure and liquidity, the amount of interest shown by shareholders in selling shares of stock to the Company at their appraised value, and applicable regulatory, legal and accounting factors. The Company has purchased 1,196,650 shares of its common stock in privately negotiated transactions from August 1, 2005 through March 31, 2019 . Of these 1,196,650 shares, 69,771 shares were purchased during the quarter ended March 31, 2019 , at an average price per share of $61.50 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Concentrations of credit risk : The Bank’s loans, commitments to extend credit, unused lines of credit and outstanding letters of credit have been granted to customers within the Bank's market area. Investments in securities issued by state and political subdivisions within the state of Iowa totaled approximately $98.32 million . The concentrations of credit by type of loan are set forth in Note 5 to the Consolidated Financial Statements. Outstanding letters of credit were granted primarily to commercial borrowers. Although the Bank has a diversified loan portfolio, a substantial portion of its debtors' ability to honor their contracts is dependent upon the economic conditions in Johnson, Linn and Washington Counties, Iowa. Contingencies : In the normal course of business, the Company and Bank are involved in various legal proceedings. While the ultimate outcome of such legal proceedings cannot be predicted with certainty, after reviewing pending and threatened litigation with counsel, management believes at this time that the outcome of such litigation will not have a material adverse effect on the Company's business, financial condition or results of operations. Financial instruments with off-balance sheet risk : The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, credit card participations and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, credit card participations and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. A summary of the Bank’s commitments at March 31, 2019 and December 31, 2018 is as follows: March 31, 2019 December 31, 2018 (Amounts In Thousands) Firm loan commitments and unused portion of lines of credit: Home equity loans $ 60,782 $ 59,330 Credit cards 54,165 52,802 Commercial, real estate and home construction 100,245 89,171 Commercial lines and real estate purchase loans 178,232 174,637 Outstanding letters of credit 8,918 9,033 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Federal income tax expense for the three months ended March 31, 2019 and 2018 was computed using the consolidated effective federal tax rate. The Company also recognized income tax expense pertaining to state franchise taxes payable individually by the subsidiary bank. The Company files a consolidated tax return for federal purposes and separate tax returns for State of Iowa purposes. The tax years ended December 31, 2018 , 2017 , and 2016 remain subject to examination by the Internal Revenue Service. For state tax purposes, the tax years ended December 31, 2018 , 2017 , and 2016 remain open for examination. There were no material unrecognized tax benefits at March 31, 2019 and December 31, 2018 and therefore no interest or penalties on unrecognized tax benefits has been recorded. As of March 31, 2019 , the Company does not anticipate any significant increase in unrecognized tax benefits during the twelve-month period ending March 31, 2020. Income taxes as a percentage of income before taxes were 21.22% for the three months ended March 31, 2019 and 19.15% for the same period in 2018 . On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act established new tax laws that reduced the U.S. federal corporate income tax rate from 35% to 21% in 2018. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the Bank may use derivative financial instruments to manage its interest rate risk. These instruments carry varying degrees of credit, interest rate and market or liquidity risks. Derivative instruments are recognized as either assets or liabilities in the accompanying financial statement and are measured at fair value. The Bank’s objectives are to add stability to its net interest margin and to manage its exposure to movements in interest rates. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amount to be exchanged between the counterparties. The Bank is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. The Bank minimizes this risk by entering into derivative contracts with large, stable financial institutions. The Bank has not experienced any losses from nonperformance by counterparties. The Bank monitors counterparty risk in accordance with the provisions of ASC 815. In addition, the Bank’s interest rate-related derivative instruments contain language outlining collateral pledging requirements for each counterparty. Collateral must be posted when the market value exceeds certain threshold limits which are determined by credit ratings of each counterparty. The Bank was required to pledge $1.89 million of collateral as of March 31, 2019 . Cash Flow Hedges: The Bank executed two forward-starting interest rate swap transactions on November 7, 2013. One of the interest rate swap transactions had an effective date of November 9, 2015, and an expiration date of November 9, 2020, effectively converting $25.00 million of variable rate debt to fixed rate debt. The other interest rate swap transaction had an effective date of November 7, 2016 and an expiration date of November 7, 2023, effectively converting $25.00 million of variable rate debt to fixed rate debt. For accounting purposes, these swap transactions are designated as a cash flow hedge of the changes in cash flows attributable to changes in three-month LIBOR, the benchmark interest rate being hedged, associated with the interest payments made on an amount of the Bank’s debt principal equal to the then-outstanding swap notional amount. At inception, the Bank asserted that the underlying principal balance would remain outstanding throughout the hedge transaction making it probable that sufficient LIBOR-based interest payments would exist through the maturity date of the swaps. The table below identifies the balance sheet category and fair values of the Bank’s derivative instruments designated as cash flow hedges as of March 31, 2019 and December 31, 2018 : Notional Amount Fair Value Balance Sheet Category Maturity (Amounts in Thousands) March 31, 2019 Interest rate swap $ 25,000 $ (182 ) Other Liabilities 11/9/2020 Interest rate swap 25,000 (1,712 ) Other Liabilities 11/7/2023 December 31, 2018 Interest rate swap $ 25,000 $ (120 ) Other Liabilities 11/9/2020 Interest rate swap 25,000 (1,476 ) Other Liabilities 11/7/2023 The table below identifies the gains and losses recognized on the Bank’s derivative instruments designated as cash flow hedges for the three months ended March 31, 2019 and year ended December 31, 2018 : Recognized in OCI Reclassified from AOCI into Income Recognized in Income on Derivatives Amount of Gain (Loss) Category Amount of Gain (Loss) Category Amount of Gain (Loss) (Amounts in Thousands) March 31, 2019 Interest rate swap $ (46 ) Interest Expense $ — Other Income $ — Interest rate swap (177 ) Interest Expense — Other Income — December 31, 2018 Interest rate swap $ 347 Interest Expense $ — Other Income $ — Interest rate swap 571 Interest Expense — Other Income — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and with instructions for Form 10-Q and Regulation S-X. These financial statements include all adjustments (consisting of normal recurring accruals) which in the opinion of management are considered necessary for the fair presentation of the financial position and results of operations for the periods shown. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company considers that it operates as one business segment, a commercial bank. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the Company’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans, letters of credit and investment securities as these activities are not subject to the requirements of ASC 606. Interest income on loans and investment securities is recognized on the accrual method in accordance with written contracts. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC 606 are the following: Service charges and fees on deposit accounts represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue which includes interchange income, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the Company’s performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Trust income represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month, which is generally the time that payment is received. |
Effect of New Financial Accounting Standards | Effect of New Financial Accounting Standards: In May 2014, The FASB and International Accounting Standards Board (IASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of ASU 2014-09 is that a company should recognize revenue to depict the transfer of promised good or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2014-09 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The adoption of ASU 2014-09 by the Company did not have a material impact on the recognition of revenue though did require additional disclosures on our material noninterest income streams discussed in revenue recognition above. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 created Subtopic 321-10, Investments-Equity Securities which is applicable to all entities except those in industries that account for substantially all investments at fair value through earnings or the change in net assets. Under this new subtopic, equity securities are generally required to be measured at fair value with unrealized holding gains and losses reflected in net income. ASU 2016-01 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company adopted ASU 2016-01 for the period ending March 31, 2018. There was no material impact on the financial statements however it required a change in disclosure and related methodology located in Note 6 Fair Value Measurements. In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases . The ASU provides guidance requiring lessees to recognize right-of-use (ROU) assets and lease liabilities for all leases other than those that meet the definition of short-term leases. For short-term leases, lessees may elect an accounting policy by class of underlying asset under which these assets and liabilities are not recognized and lease payments are generally recognized over the lease term on a straight-line basis. Under this new ASU, lessees will recognize right-of use assets and lease liabilities for most leases currently accounted for as operating leases under generally accepted accounting principles. For public companies, ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the ASU on January 1, 2019 and used the alternative transition approach which permits the effects of adoption to be applied at the effective date. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the 'package of practical expedients', which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also elected the short-term lease exemption and combining the lease and nonlease components practical expedients. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The most significant impact upon adoption relates to the recognition of new ROU assets and lease liabilities on our balance sheet for our equipment and real estate operating leases. Upon adoption, we recognized additional operating liabilities of $3.58 million , with corresponding ROU assets of the same amount based on the present value of the remaining rental payments, including options to extend that are expected to be exercised, under current leasing standards for existing operating leases. There was no cumulative effect of adopting the standard. In March 2016, the FASB issued ASU No. 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20), Recognition of Breakage for Certain Prepaid Stored-Value Products . ASU 2016-04 applies to all entities that offer certain prepaid stored - value products. The ASU provides guidance for the derecognition of financial liabilities related to the issuance of these products and aligns the recognition of breakage to current authoritative guidance. For public companies, ASU 2016-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted ASU 2016-04 for the period ending March 31, 2018. There was no material impact on the financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (CECL). The ASU changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. Under the CECL model, we will be required to present certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, at the net amount expected to be collected. The 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. 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. Accordingly, we expect that the adoption of the CECL model will materially affect how we determine our allowance for loan losses and could require us to significantly increase our allowance. For public companies, ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, early adoption is permitted for the fiscal year beginning after December 15, 2018. The Company has implemented a software solution provided by a third party vendor to assist in the analysis of historical loan data to determine the CECL model that will be implemented. The Company anticipates running parallel calculations of the "incurred loss" and CECL models for the quarter ending June 30, 2019. We expect to recognize a one-time cumulative-effect adjustment to our allowance for loan losses as of the beginning of the first reporting period in which the new standard is adopted. The amount of the one-time cumulative-effect adjustment has not yet been determined. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. This ASU adds an SEC paragraph and amends other Topics pursuant to an SEC staff Announcement made at the September 22, 2016 Emerging Issues Task Force (EITF) meeting. The SEC paragraph applies to ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606); ASU No. 2016-02, Leases (Topic 842); and ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU provides that a company should evaluate ASUs that have not yet been adopted to determine the appropriate financial statement disclosures about the potential material effects of those ASUs on the financial statements when adopted. If the company does not know or cannot reasonably estimate the impact that adoption of the ASUs referenced in this announcement is expected to have on the financial statements, then in addition to making a statement to that effect, the company should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact that the standard will have on the financial statements of the company when adopted. Additional qualitative disclosures should include a description of the effect of the accounting policies that the company expects to apply and a comparison to the company's current accounting policies. Also, the company should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 250), Simplifying the Test for Goodwill Impairment. The ASU simplifies the goodwill impairment test by requiring a company to perform its annual or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized when the carrying amount exceeds fair value. For public companies, ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of ASU No. 2017-04 by the Company is not expected to have a material impact. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. This ASU requires companies to change the recognition and presentation of the effects of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and requiring companies to present all of the elements of hedge accounting that affect earnings in the same income statement line as the hedged item. Furthermore, the standard eases the requirements for effectiveness testing, hedge documentation and applying the critical terms match method and introduces new alternatives that will permit companies to reduce the risk of material error corrections if they misapply the shortcut method. For public companies, ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2018. The Company adopted ASU No. 2017-12 for the period ending March 31, 2019. There was no material impact on the financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted ASU 2018-02 for the period ending March 31, 2018 and elected the specific identification method accounting policy. There was a $0.53 million reclassification recorded in stockholders' equity for the period ending March 31, 2018. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting . The amendments in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company adopted ASU No. 2018-07 for the period ending March 31, 2019. There was no material impact on the financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including removal of the requirement to disclose the valuation processes for Level 3 fair value measurements and the additional requirement to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this ASU. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The adoption of ASU 2018-13 by the Company is not expected to have a material impact. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangements That Is a Service Contract . The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period, for all entities. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is in the process of evaluating the impact of this ASU on the financial statements. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes . The amendments in this ASU permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (LIBOR) swap rate, the Overnight Index Swap (OIS) Rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. The amendments in this ASU are required to be adopted concurrently with the amendments in ASU 2017-12. For public companies, this would be for fiscal years, and interim periods within those fiscal years beginning after December 15, 2018. The Company adopted ASU No. 2018-16 for the period ending March 31, 2019 concurrently with ASU 2017-12. There was no material impact on the financial statements. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed using the weighted average number of actual common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that would occur from the exercise of common stock options outstanding. ESOP shares are considered outstanding for this calculation unless unearned. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The computation of basic and diluted earnings per share for the periods presented is as follows: Three Months Ended March 31, 2019 2018 Common shares outstanding at the beginning of the period 9,336,441 9,335,154 Weighted average number of net shares issued 30,816 48,969 Weighted average shares outstanding (basic) 9,367,257 9,384,123 Weighted average of potential dilutive shares attributable to stock options granted, computed under the treasury stock method 4,008 3,890 Weighted average number of shares (diluted) 9,371,265 9,388,013 Net income (In thousands) $ 11,203 $ 10,858 Earnings per share: Basic $ 1.20 $ 1.16 Diluted $ 1.20 $ 1.16 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income (AOCI) | The following table summarizes the balances of each component of accumulated other comprehensive income (AOCI), included in stockholders’ equity, at March 31, 2019 and December 31, 2018 : March 31, December 31, 2018 (amounts in thousands) Net unrealized income (loss) on available-for-sale securities $ 559 $ (2,734 ) Net unrealized loss on derivatives used for cash flow hedges (1,894 ) (1,596 ) Tax effect $ 334 $ 1,080 Net-of-tax amount $ (1,001 ) $ (3,250 ) |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Carrying values of investment securities | The carrying values of investment securities at March 31, 2019 and December 31, 2018 are summarized in the following table (dollars in thousands): March 31, 2019 December 31, 2018 Amount Percent Amount Percent Securities available for sale U.S. Treasury $ 91,573 28.27 % $ 83,155 26.07 % Other securities (FHLB, FHLMC and FNMA) 27,531 8.50 34,871 10.93 State and political subdivisions 204,813 63.23 200,900 63.00 Total securities available for sale $ 323,917 100.00 % $ 318,926 100.00 % |
Carrying amount of available-for-sale securities and approximate fair values | The carrying amount of available-for-sale securities and their approximate fair values were as follows as of March 31, 2019 and December 31, 2018 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value March 31, 2019: U.S. Treasury $ 91,181 $ 726 $ (334 ) $ 91,573 Other securities (FHLB, FHLMC and FNMA) 27,846 — (315 ) 27,531 State and political subdivisions 204,331 1,189 (707 ) 204,813 Total $ 323,358 $ 1,915 $ (1,356 ) $ 323,917 December 31, 2018: U.S. Treasury $ 83,839 $ 124 $ (808 ) $ 83,155 Other securities (FHLB, FHLMC and FNMA) 35,371 — (500 ) 34,871 State and political subdivisions 202,450 278 (1,828 ) 200,900 Total $ 321,660 $ 402 $ (3,136 ) $ 318,926 |
Available-for-sale securities classified as per contractual maturities | The amortized cost and estimated fair value of available-for-sale securities classified according to their contractual maturities at March 31, 2019 , were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 57,358 $ 57,169 Due after one year through five years 186,161 186,388 Due after five years through ten years 79,278 79,787 Due over ten years 561 573 Total $ 323,358 $ 323,917 |
Available-for-sale securities, continuous unrealized loss position, fair value | The following table shows the fair value, gross unrealized losses and the percentage of fair value represented by gross unrealized losses of applicable investment securities owned by the Company, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018 (in thousands): Less than 12 months 12 months or more Total March 31, 2019 # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % U.S. Treasury — $ — $ — — % 19 $ 46,923 $ (334 ) 0.71 % 19 $ 46,923 $ (334 ) 0.71 % Other securities (FHLB, FHLMC and FNMA) — — — — 11 27,531 (315 ) 1.14 11 27,531 (315 ) 1.14 State and political subdivisions 59 30,332 (148 ) 0.49 262 62,104 (559 ) 0.90 321 92,436 (707 ) 0.76 Total temporarily impaired securities 59 $ 30,332 $ (148 ) 0.49 % 292 $ 136,558 $ (1,208 ) 0.88 % 351 $ 166,890 $ (1,356 ) 0.81 % Less than 12 months 12 months or more Total December 31, 2018 # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % # Fair Value Unrealized Loss % U.S. Treasury 6 $ 14,644 $ (49 ) 0.33 % 19 $ 46,443 $ (759 ) 1.63 % 25 $ 61,087 $ (808 ) 1.32 % Other securities (FHLB, FHLMC and FNMA) — — — — 14 34,871 (500 ) 1.43 14 34,871 (500 ) 1.43 State and political subdivisions 113 31,022 (162 ) 0.52 325 77,921 (1,666 ) 2.14 438 108,943 (1,828 ) 1.68 Total temporarily impaired securities 119 $ 45,666 $ (211 ) 0.46 % 358 $ 159,235 $ (2,925 ) 1.84 % 477 $ 204,901 $ (3,136 ) 1.53 % |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of classes of loans | Classes of loans are as follows: March 31, December 31, (Amounts In Thousands) Agricultural $ 93,573 $ 92,673 Commercial and financial 227,403 229,501 Real estate: Construction, 1 to 4 family residential 73,868 72,279 Construction, land development and commercial 105,466 113,807 Mortgage, farmland 238,109 236,454 Mortgage, 1 to 4 family first liens 916,408 912,059 Mortgage, 1 to 4 family junior liens 152,183 152,625 Mortgage, multi-family 351,090 352,434 Mortgage, commercial 402,073 383,314 Loans to individuals 29,739 30,072 Obligations of state and political subdivisions 53,153 52,725 $ 2,643,065 $ 2,627,943 Net unamortized fees and costs 943 952 $ 2,644,008 $ 2,628,895 Less allowance for loan losses 36,520 37,810 $ 2,607,488 $ 2,591,085 |
Schedule of changes in allowance for loan losses | Changes in the allowance for loan losses, the allowance for loan losses applicable to impaired loans and the related loan balance of impaired loans for the three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,789 $ 5,826 $ 3,292 $ 3,972 $ 12,516 $ 8,165 $ 1,250 $ 37,810 Charge-offs — (180 ) (8 ) — (177 ) (4 ) (108 ) (477 ) Recoveries 10 184 2 5 110 85 37 433 Provision (258 ) 174 (358 ) (106 ) (819 ) (23 ) 144 (1,246 ) Ending balance $ 2,541 $ 6,004 $ 2,928 $ 3,871 $ 11,630 $ 8,223 $ 1,323 $ 36,520 Ending balance, individually evaluated for impairment $ 258 $ 1,375 $ — $ — $ 74 $ 483 $ 59 $ 2,249 Ending balance, collectively evaluated for impairment $ 2,283 $ 4,629 $ 2,928 $ 3,871 $ 11,556 $ 7,740 $ 1,264 $ 34,271 Loans: Ending balance $ 93,573 $ 227,403 $ 179,334 $ 238,109 $ 1,068,591 $ 753,163 $ 82,892 $ 2,643,065 Ending balance, individually evaluated for impairment $ 2,740 $ 4,039 $ 832 $ 4,189 $ 6,879 $ 4,333 $ 59 $ 23,071 Ending balance, collectively evaluated for impairment $ 90,833 $ 223,364 $ 178,502 $ 233,920 $ 1,061,712 $ 748,830 $ 82,833 $ 2,619,994 Changes in the allowance for loan losses for the three months ended March 31, 2018 were as follows: Three Months Ended March 31, 2018 Agricultural Commercial and Financial Real Estate: Construction and land development Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family Real Estate: Mortgage, multi- family and commercial Other Total (Amounts In Thousands) Allowance for loan losses: Beginning balance $ 2,294 $ 4,837 $ 2,989 $ 3,669 $ 8,668 $ 5,700 $ 1,243 $ 29,400 Charge-offs — (30 ) — — (121 ) (1 ) (115 ) (267 ) Recoveries 12 248 143 — 98 4 37 542 Provision (53 ) (397 ) (352 ) 40 10 91 (104 ) (765 ) Ending balance $ 2,253 $ 4,658 $ 2,780 $ 3,709 $ 8,655 $ 5,794 $ 1,061 $ 28,910 Ending balance, individually evaluated for impairment $ 199 $ 759 $ 40 $ — $ 75 $ 493 $ 63 $ 1,629 Ending balance, collectively evaluated for impairment $ 2,054 $ 3,899 $ 2,740 $ 3,709 $ 8,580 $ 5,301 $ 998 $ 27,281 Loans: Ending balance $ 83,940 $ 214,004 $ 166,761 $ 218,462 $ 980,150 $ 705,576 $ 83,032 $ 2,451,925 Ending balance, individually evaluated for impairment $ 2,823 $ 2,550 $ 946 $ 3,615 $ 6,564 $ 8,025 $ 63 $ 24,586 Ending balance, collectively evaluated for impairment $ 81,117 $ 211,454 $ 165,815 $ 214,847 $ 973,586 $ 697,551 $ 82,969 $ 2,427,339 |
Schedule of credit quality indicators by type of loans | The following table presents the credit quality indicators by type of loans in each category as of March 31, 2019 and December 31, 2018 , respectively (amounts in thousands): Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial March 31, 2019 Grade: Excellent $ 4,091 $ 2,718 $ — $ 203 Good 15,703 47,718 12,376 17,416 Satisfactory 39,421 123,709 44,934 57,452 Monitor 27,703 38,547 14,185 21,312 Special Mention 836 8,566 1,978 7,576 Substandard 5,819 6,145 395 1,507 Total $ 93,573 $ 227,403 $ 73,868 $ 105,466 Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family first liens Real Estate: Mortgage, 1 to 4 family junior liens Real Estate: Mortgage, multi- family March 31, 2019 Grade: Excellent $ 5,469 $ 2,307 $ 526 $ 22,051 Good 50,050 31,571 4,071 59,203 Satisfactory 126,988 756,430 138,533 189,192 Monitor 45,440 97,980 6,241 58,506 Special Mention 1,117 9,414 1,141 15,947 Substandard 9,045 18,706 1,671 6,191 Total $ 238,109 $ 916,408 $ 152,183 $ 351,090 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total March 31, 2019 Grade: Excellent $ 35,391 $ — $ 7,985 $ 80,741 Good 86,117 193 15,414 339,832 Satisfactory 195,035 28,663 21,563 1,721,920 Monitor 74,094 588 8,191 392,787 Special Mention 2,901 229 — 49,705 Substandard 8,535 66 — 58,080 Total $ 402,073 $ 29,739 $ 53,153 $ 2,643,065 Agricultural Commercial and Financial Real Estate: Construction, 1 to 4 family residential Real Estate: Construction, land development and commercial December 31, 2018 Grade: Excellent $ 3,667 $ 3,322 $ — $ 209 Good 15,342 51,562 13,029 16,667 Satisfactory 39,897 121,759 42,043 68,123 Monitor 27,510 35,897 15,045 19,888 Special Mention 647 11,418 1,767 7,635 Substandard 5,610 5,543 395 1,285 Total $ 92,673 $ 229,501 $ 72,279 $ 113,807 Real Estate: Mortgage, farmland Real Estate: Mortgage, 1 to 4 family first liens Real Estate: Mortgage, 1 to 4 family junior liens Real Estate: Mortgage, multi- family December 31, 2018 Grade: Excellent $ 5,619 $ 2,715 $ 520 $ 22,058 Good 52,364 33,134 4,569 60,047 Satisfactory 126,706 752,473 138,533 187,641 Monitor 41,486 96,187 6,242 60,398 Special Mention 1,055 10,439 1,130 16,065 Substandard 9,224 17,111 1,631 6,225 Total $ 236,454 $ 912,059 $ 152,625 $ 352,434 Real Estate: Mortgage, commercial Loans to individuals Obligations of state and political subdivisions Total December 31, 2018 Grade: Excellent $ 34,096 $ — $ 8,117 $ 80,323 Good 86,453 315 15,652 349,134 Satisfactory 177,271 28,797 20,685 1,703,928 Monitor 74,990 647 8,271 386,561 Special Mention 3,228 217 — 53,601 Substandard 7,276 96 — 54,396 Total $ 383,314 $ 30,072 $ 52,725 $ 2,627,943 |
Schedule of past due loans | Past due loans as of March 31, 2019 and December 31, 2018 were as follows: 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Accruing Loans Past Due 90 Days or More (Amounts In Thousands) March 31, 2019 Agricultural $ 2,057 $ 445 $ 1,616 $ 4,118 $ 89,455 $ 93,573 $ 583 Commercial and financial 1,158 371 242 1,771 225,632 227,403 — Real estate: Construction, 1 to 4 family residential 692 — — 692 73,176 73,868 — Construction, land development and commercial 1,036 32 — 1,068 104,398 105,466 — Mortgage, farmland 6,954 — 630 7,584 230,525 238,109 — Mortgage, 1 to 4 family first liens 9,145 666 2,790 12,601 903,807 916,408 — Mortgage, 1 to 4 family junior liens 190 395 — 585 151,598 152,183 — Mortgage, multi-family 143 — — 143 350,947 351,090 — Mortgage, commercial 1,633 — 281 1,914 400,159 402,073 — Loans to individuals 124 46 — 170 29,569 29,739 — Obligations of state and political subdivisions — — — — 53,153 53,153 — $ 23,132 $ 1,955 $ 5,559 $ 30,646 $ 2,612,419 $ 2,643,065 $ 583 December 31, 2018 Agricultural $ 1,026 $ — $ 135 $ 1,161 $ 91,512 $ 92,673 $ — Commercial and financial 988 459 225 1,672 227,829 229,501 — Real estate: Construction, 1 to 4 family residential — — 212 212 72,067 72,279 212 Construction, land development and commercial 233 202 — 435 113,372 113,807 — Mortgage, farmland 193 388 — 581 235,873 236,454 — Mortgage, 1 to 4 family first liens 3,972 833 3,234 8,039 904,020 912,059 158 Mortgage, 1 to 4 family junior liens 199 36 — 235 152,390 152,625 — Mortgage, multi-family — — — — 352,434 352,434 — Mortgage, commercial 733 344 — 1,077 382,237 383,314 — Loans to individuals 195 — 22 217 29,855 30,072 — Obligations of state and political subdivisions — — — — 52,725 52,725 — $ 7,539 $ 2,262 $ 3,828 $ 13,629 $ 2,614,314 $ 2,627,943 $ 370 |
Schedule of impaired loan information | Certain impaired loan information by loan type at March 31, 2019 and December 31, 2018 , was as follows: March 31, 2019 December 31, 2018 Non-accrual loans (1) Accruing loans past due 90 days or more TDR loans Non- accrual loans (1) Accruing loans past due 90 days or more TDR loans (Amounts In Thousands) (Amounts In Thousands) Agricultural $ 1,308 $ 583 $ 97 $ 1,338 $ — $ 120 Commercial and financial 1,857 — 2,143 1,476 — 2,686 Real estate: Construction, 1 to 4 family residential 395 — — — 212 — Construction, land development and commercial — — 326 — — 328 Mortgage, farmland 1,037 — 3,903 1,062 — 3,301 Mortgage, 1 to 4 family first liens 5,833 — 1,132 5,799 158 1,143 Mortgage, 1 to 4 family junior liens — — 24 — — 24 Mortgage, multi-family 143 — — 145 — — Mortgage, commercial 1,196 — 925 1,009 — 937 $ 11,769 $ 583 $ 8,550 $ 10,829 $ 370 $ 8,539 (1) There were $5.07 million and $4.84 million of TDR loans included within nonaccrual loans as of March 31, 2019 and December 31, 2018 , respectively. |
Schedule of information for TDR loans | Below is a summary of information for TDR loans as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Number of contracts Recorded investment Commitments outstanding Number of contracts Recorded investment Commitments outstanding (Amounts In Thousands) (Amounts In Thousands) Agricultural 6 $ 1,512 $ 12 5 $ 1,316 $ 91 Commercial and financial 13 3,646 135 13 3,867 75 Real estate: Construction, 1 to 4 family residential — — — — — — Construction, land development and commercial 2 326 — 2 328 — Mortgage, farmland 9 4,873 — 8 4,291 — Mortgage, 1 to 4 family first liens 15 1,695 — 16 1,710 — Mortgage, 1 to 4 family junior liens 1 24 — 1 24 — Mortgage, multi-family — — — — — — Mortgage, commercial 9 1,798 — 9 1,839 — Loans to individuals — — — — — — 55 $ 13,874 $ 147 54 $ 13,375 $ 166 The following is a summary of TDR loans that were modified during the three months ended March 31, 2019 : Three Months Ended March 31, 2019 Number of contracts Pre-modification recorded investment Post-modification recorded investment (Amounts In Thousands) Agricultural 1 $ 250 $ 250 Commercial and financial — — — Real estate: Construction, 1 to 4 family residential — — — Construction, land development and commercial — — — Mortgage, farmland 1 620 620 Mortgage, 1 to 4 family first lien — — — Mortgage, 1 to 4 family junior liens — — — Mortgage, multi-family — — — Mortgage, commercial — — — 2 $ 870 $ 870 |
Schedule of impaired loans | Information regarding impaired loans as of and for the three months ended March 31, 2019 is as follows: March 31, 2019 Three Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,359 $ 1,653 $ — $ 1,377 $ 9 Commercial and financial 1,639 2,493 — 1,682 11 Real estate: Construction, 1 to 4 family residential 110 148 — 111 — Construction, land development and commercial 722 738 — 722 4 Mortgage, farmland 4,189 4,667 — 4,198 39 Mortgage, 1 to 4 family first liens 6,068 7,860 — 6,143 9 Mortgage, 1 to 4 family junior liens — 252 — — — Mortgage, multi-family 143 213 — 144 — Mortgage, commercial 2,047 2,745 — 2,068 10 Loans to individuals — 14 — — — $ 16,277 $ 20,783 $ — $ 16,445 $ 82 With an allowance recorded: Agricultural $ 1,381 $ 1,552 $ 258 $ 1,396 $ 8 Commercial and financial 2,400 2,429 1,375 2,476 23 Real estate: Construction, 1 to 4 family residential — — — — — Construction, land development and commercial — — — — — Mortgage, farmland — — — — — Mortgage, 1 to 4 family first liens 787 794 73 789 4 Mortgage, 1 to 4 family junior liens 24 24 1 24 — Mortgage, multi-family 1,402 1,402 282 1,408 17 Mortgage, commercial 741 741 201 744 8 Loans to individuals 59 59 59 56 2 $ 6,794 $ 7,001 $ 2,249 $ 6,893 $ 62 Total: Agricultural $ 2,740 $ 3,205 $ 258 $ 2,773 $ 17 Commercial and financial 4,039 4,922 1,375 4,158 34 Real estate: Construction, 1 to 4 family residential 110 148 — 111 — Construction, land development and commercial 722 738 — 722 4 Mortgage, farmland 4,189 4,667 — 4,198 39 Mortgage, 1 to 4 family first liens 6,855 8,654 73 6,932 13 Mortgage, 1 to 4 family junior liens 24 276 1 24 — Mortgage, multi-family 1,545 1,615 282 1,552 17 Mortgage, commercial 2,788 3,486 201 2,812 18 Loans to individuals 59 73 59 56 2 $ 23,071 $ 27,784 $ 2,249 $ 23,338 $ 144 Information regarding impaired loans as of December 31, 2018 is as follows: Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (Amounts In Thousands) Agricultural $ 1,395 $ 1,663 $ — Commercial and financial 1,650 2,503 — Real estate: Construction, 1 to 4 family residential 111 148 — Construction, land development and commercial 328 344 — Mortgage, farmland 3,612 4,071 — Mortgage, 1 to 4 family first liens 6,089 7,819 — Mortgage, 1 to 4 family junior liens — 254 — Mortgage, multi-family 145 213 — Mortgage, commercial 1,871 2,486 — Loans to individuals — 14 — $ 15,201 $ 19,515 $ — With an allowance recorded: Agricultural $ 1,065 $ 1,229 $ 479 Commercial and financial 2,512 2,512 1,189 Real estate: Construction, 1 to 4 family residential 698 698 4 Construction, land development and commercial — — — Mortgage, farmland — — — Mortgage, 1 to 4 family first liens 899 974 70 Mortgage, 1 to 4 family junior liens 24 24 2 Mortgage, multi-family 7,447 7,447 305 Mortgage, commercial 75 75 1 Loans to individuals 64 64 64 $ 12,784 $ 13,023 $ 2,114 Total: Agricultural $ 2,460 $ 2,892 $ 479 Commercial and financial 4,162 5,015 1,189 Real estate: Construction, 1 to 4 family residential 809 846 4 Construction, land development and commercial 328 344 — Mortgage, farmland 3,612 4,071 — Mortgage, 1 to 4 family first liens 6,988 8,793 70 Mortgage, 1 to 4 family junior liens 24 278 2 Mortgage, multi-family 7,592 7,660 305 Mortgage, commercial 1,946 2,561 1 Loans to individuals 64 78 64 $ 27,985 $ 32,538 $ 2,114 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Maturities of lease liabilities, Topic 842 | As of March 31, 2019, maturities of lease liabilities were as follows: Year ending December 31: (Amounts In Thousands) 2019 $ 467 2020 470 2021 456 2022 447 2023 301 Thereafter 2,259 Total lease payments 4,400 Less imputed interest (819 ) Total operating lease liabilities $ 3,581 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying value and estimated fair values of entity's financial instruments | The carrying value and estimated fair values of the Company's financial instruments as of March 31, 2019 are as follows: March 31, 2019 Carrying Amount Estimated Fair Value Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) (Amounts In Thousands) Financial instrument assets: Cash and cash equivalents $ 200,476 $ 200,476 $ 200,476 $ — $ — Investment securities 336,183 336,183 91,573 244,610 — Loans held for sale 5,267 5,267 — 5,267 — Loans Agricultural 91,032 93,028 — — 93,028 Commercial and financial 221,399 225,946 — — 225,946 Real estate: Construction, 1 to 4 family residential 72,589 73,965 — — 73,965 Construction, land development and commercial 103,817 105,134 — — 105,134 Mortgage, farmland 234,238 235,465 — — 235,465 Mortgage, 1 to 4 family first liens 907,397 888,705 — — 888,705 Mortgage, 1 to 4 family junior liens 150,507 148,210 — — 148,210 Mortgage, multi-family 347,138 344,083 — — 344,083 Mortgage, commercial 397,802 395,694 — — 395,694 Loans to individuals 28,921 30,424 — — 30,424 Obligations of state and political subdivisions 52,648 52,338 — — 52,338 Accrued interest receivable 13,970 13,970 — 13,970 — Total financial instrument assets $ 3,163,384 $ 3,148,888 $ 292,049 $ 263,847 $ 2,592,992 Financial instrument liabilities Deposits Noninterest-bearing deposits $ 363,142 $ 363,142 $ — $ 363,142 $ — Interest-bearing deposits 2,233,750 2,243,433 — 2,243,433 — Other borrowings — — — — — Federal Home Loan Bank borrowings 215,000 208,188 — 208,188 — Interest rate swaps 1,894 1,894 — 1,894 — Accrued interest payable 2,051 2,051 — 2,051 — Total financial instrument liabilities $ 2,815,837 $ 2,818,708 $ — $ 2,818,708 $ — Face Amount Financial instrument with off-balance sheet risk: Loan commitments $ 393,424 $ — $ — $ — $ — Letters of credit 8,918 — — — — Total financial instrument liabilities with off-balance-sheet risk $ 402,342 $ — $ — $ — $ — (1) Considered Level 1 under Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. The carrying value and estimated fair values of the Company's financial instruments as of December 31, 2018 are as follows: December 31, 2018 Carrying Amount Estimated Fair Value Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) (Amounts In Thousands) Financial instrument assets: Cash and cash equivalents $ 43,305 $ 43,305 $ 43,305 $ — $ — Investment securities 331,098 331,098 83,155 247,943 — Loans held for sale 1,984 1,984 — 1,984 — Loans Agricultural 89,884 93,736 — — 93,736 Commercial and financial 223,675 227,774 — — 227,774 Real estate: Construction, 1 to 4 family residential 70,982 72,419 — — 72,419 Construction, land development and commercial 111,812 112,960 — — 112,960 Mortgage, farmland 232,482 235,771 — — 235,771 Mortgage, 1 to 4 family first liens 902,261 882,908 — — 882,908 Mortgage, 1 to 4 family junior liens 150,859 148,128 — — 148,128 Mortgage, multi-family 348,351 342,099 — — 342,099 Mortgage, commercial 379,232 376,257 — — 376,257 Loans to individuals 29,349 29,962 — — 29,962 Obligations of state and political subdivisions 52,198 51,945 — — 51,945 Accrued interest receivable 11,784 11,784 — 11,784 — Total financial instrument assets $ 2,979,256 $ 2,962,130 $ 126,460 $ 261,711 $ 2,573,959 Financial instrument liabilities: Deposits Noninterest-bearing deposits $ 372,152 $ 372,152 $ — $ 372,152 $ — Interest-bearing deposits 2,048,972 2,059,336 — 2,059,336 — Other borrowings — — — — — Federal Home Loan Bank borrowings 215,000 207,948 — 207,948 — Interest rate swaps 1,596 1,596 1,596 Accrued interest payable 1,812 1,812 — 1,812 — Total financial instrument liabilities $ 2,639,532 $ 2,642,844 $ — $ 2,642,844 $ — Face Amount Financial instrument with off-balance sheet risk: Loan commitments $ 375,940 $ — $ — $ — $ — Letters of credit 9,033 — — — — Total financial instrument liabilities with off-balance-sheet risk $ 384,973 $ — $ — $ — $ — (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. |
Schedule of assets and liabilities measured at fair value on a recurring basis | The table below represents the balances of assets and liabilities measured at fair value on a recurring basis: March 31, 2019 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Securities available for sale (Amounts In Thousands) U.S. Treasury $ 91,573 $ — $ — $ 91,573 State and political subdivisions — 204,813 — 204,813 Other securities (FHLB, FHLMC and FNMA) — 27,531 — 27,531 Derivative Financial Instruments Interest rate swaps $ — (1,894 ) $ — (1,894 ) Total $ 91,573 $ 230,450 $ — $ 322,023 December 31, 2018 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Securities available for sale (Amounts In Thousands) U.S. Treasury $ 83,155 $ — $ — $ 83,155 State and political subdivisions — 200,900 — 200,900 Other securities (FHLB, FHLMC and FNMA) — 34,871 — 34,871 Derivative Financial Instruments Interest rate swaps — (1,596 ) — (1,596 ) Total $ 83,155 $ 234,175 $ — $ 317,330 (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. |
Schedule of assets measured at fair value on a nonrecurring basis | The following tables present the Company’s assets that are measured at fair value on a nonrecurring basis. March 31, 2019 Three Months Ended March 31, 2019 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Total Losses (Amounts in Thousands) Loans (4) Agricultural $ — $ — $ 2,090 $ 2,090 $ — Commercial and financial — — 2,566 2,566 50 Real Estate: — Construction, 1 to 4 family residential — — — — — Construction, land development and commercial — — 612 612 8 Mortgage, farmland — — 3,674 3,674 — Mortgage, 1 to 4 family first liens — — 6,746 6,746 90 Mortgage, 1 to 4 family junior liens — — 23 23 — Mortgage, multi-family — — 1,120 1,120 — Mortgage, commercial — — 2,108 2,108 — Loans to individuals — — — — — Foreclosed assets (5) — — — — — Total $ — $ — $ 18,939 $ 18,939 $ 148 (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. (4) Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully-charged off is zero . (5) Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (continued) December 31, 2018 Year Ended December 31, 2018 Readily Available Market Prices(1) Observable Market Prices(2) Company Determined Market Prices(3) Total at Fair Value Total Losses (Amounts in Thousands) Loans (4) Agricultural $ — $ — $ 1,160 $ 1,160 $ 63 Commercial and financial — — 2,882 2,882 122 Real Estate: Construction, 1 to 4 family residential — — — — — Construction, land development and commercial — — 703 703 — Mortgage, farmland — — 3,848 3,848 — Mortgage, 1 to 4 family first liens — — 6,729 6,729 520 Mortgage, 1 to 4 family junior liens — — 22 22 60 Mortgage, multi-family — — 7,286 7,286 — Mortgage, commercial — — 1,458 1,458 349 Loans to individuals — — — — — Foreclosed assets (5) — — — — — Total $ — $ — $ 24,088 $ 24,088 $ 1,114 (1) Considered Level 1 under ASC 820. (2) Considered Level 2 under ASC 820. (3) Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market. (4) Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully-charged off is zero. (5) Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of banks commitments | A summary of the Bank’s commitments at March 31, 2019 and December 31, 2018 is as follows: March 31, 2019 December 31, 2018 (Amounts In Thousands) Firm loan commitments and unused portion of lines of credit: Home equity loans $ 60,782 $ 59,330 Credit cards 54,165 52,802 Commercial, real estate and home construction 100,245 89,171 Commercial lines and real estate purchase loans 178,232 174,637 Outstanding letters of credit 8,918 9,033 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Identification of the balance sheet category and fair values of the derivative instruments designated as cash flow hedges | The table below identifies the balance sheet category and fair values of the Bank’s derivative instruments designated as cash flow hedges as of March 31, 2019 and December 31, 2018 : Notional Amount Fair Value Balance Sheet Category Maturity (Amounts in Thousands) March 31, 2019 Interest rate swap $ 25,000 $ (182 ) Other Liabilities 11/9/2020 Interest rate swap 25,000 (1,712 ) Other Liabilities 11/7/2023 December 31, 2018 Interest rate swap $ 25,000 $ (120 ) Other Liabilities 11/9/2020 Interest rate swap 25,000 (1,476 ) Other Liabilities 11/7/2023 |
Identification of the gains and losses recognized on the derivative instruments designated as cash flow hedges | The table below identifies the gains and losses recognized on the Bank’s derivative instruments designated as cash flow hedges for the three months ended March 31, 2019 and year ended December 31, 2018 : Recognized in OCI Reclassified from AOCI into Income Recognized in Income on Derivatives Amount of Gain (Loss) Category Amount of Gain (Loss) Category Amount of Gain (Loss) (Amounts in Thousands) March 31, 2019 Interest rate swap $ (46 ) Interest Expense $ — Other Income $ — Interest rate swap (177 ) Interest Expense — Other Income — December 31, 2018 Interest rate swap $ 347 Interest Expense $ — Other Income $ — Interest rate swap 571 Interest Expense — Other Income — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of operating segments | segment | 1 | |
Document fiscal year focus | 2019 | |
Total operating lease liabilities | $ 3,581 | |
Operating lease, right-of-use asset | $ 3,580 | |
Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of stranded tax effects due to the Tax Cuts and Jobs Act | $ 530 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of computation of basic and diluted earnings per share [Abstract] | ||||
Common shares outstanding at the beginning of the period (shares) | 9,336,441 | 9,335,154 | ||
Weighted average number of net shares issued (shares) | 30,816 | 48,969 | ||
Weighted average shares outstanding (basic) (shares) | 9,367,257 | 9,384,123 | ||
Weighted average of potential dilutive shares attributable to stock options granted, computed under the treasury stock method (shares) | 4,008 | 3,890 | ||
Weighted average number of shares (diluted) (shares) | 9,371,265 | 9,388,013 | ||
Net income (In thousands) | $ 11,203 | $ 10,858 | ||
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.20 | $ 1.16 | ||
Diluted (in dollars per share) | $ 1.20 | $ 1.16 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Tax effect | $ 334 | $ 1,080 |
Net-of-tax amount | (1,001) | (3,250) |
Net unrealized loss on available-for-sale securities [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized gain (loss) | 559 | (2,734) |
Net unrealized loss on derivatives used for cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net unrealized gain (loss) | $ (1,894) | $ (1,596) |
Securities (Details)
Securities (Details) $ in Thousands | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Securities available for sale | ||
Securities available for sale, Percent | 100.00% | 100.00% |
Available-for-sale Securities Reconciliation [Abstract] | ||
Amortized Cost | $ 323,358 | $ 321,660 |
Gross Unrealized Gains | 1,915 | 402 |
Gross Unrealized (Losses) | (1,356) | (3,136) |
Amortized Cost | ||
Due in one year or less | 57,358 | |
Due after one year through five years | 186,161 | |
Due after five years through ten years | 79,278 | |
Due over ten years | 561 | |
Fair Value | ||
Due in one year or less | 57,169 | |
Due after one year through five years | 186,388 | |
Due after five years through ten years | 79,787 | |
Due over ten years | 573 | |
Carrying value of investment securities pledged to collateralize short-term borrowings | $ 323,917 | $ 318,926 |
Less than 12 months | ||
Number of securities | security | 59 | 119 |
Fair Value | $ 30,332 | $ 45,666 |
Unrealized Loss | $ (148) | $ (211) |
Percentage | 0.49% | 0.46% |
12 months or more | ||
Number of securities | security | 292 | 358 |
Fair Value | $ 136,558 | $ 159,235 |
Unrealized Loss | $ (1,208) | $ (2,925) |
Percentage | 0.88% | 1.84% |
Total | ||
Number of securities | security | 351 | 477 |
Fair Value | $ 166,890 | $ 204,901 |
Unrealized Loss | $ (1,356) | $ (3,136) |
Percentage | 0.81% | 1.53% |
Collateralized Securities [Member] | ||
Fair Value | ||
Carrying value of investment securities pledged to collateralize short-term borrowings | $ 11,720 | |
U.S. Treasury [Member] | ||
Securities available for sale | ||
Securities available for sale, Percent | 28.27% | 26.07% |
Available-for-sale Securities Reconciliation [Abstract] | ||
Amortized Cost | $ 91,181 | $ 83,839 |
Gross Unrealized Gains | 726 | 124 |
Gross Unrealized (Losses) | (334) | (808) |
Fair Value | ||
Carrying value of investment securities pledged to collateralize short-term borrowings | $ 91,573 | $ 83,155 |
Less than 12 months | ||
Number of securities | security | 0 | 6 |
Fair Value | $ 0 | $ 14,644 |
Unrealized Loss | $ 0 | $ (49) |
Percentage | 0.00% | 0.33% |
12 months or more | ||
Number of securities | security | 19 | 19 |
Fair Value | $ 46,923 | $ 46,443 |
Unrealized Loss | $ (334) | $ (759) |
Percentage | 0.71% | 1.63% |
Total | ||
Number of securities | security | 19 | 25 |
Fair Value | $ 46,923 | $ 61,087 |
Unrealized Loss | $ (334) | $ (808) |
Percentage | 0.71% | 1.32% |
Other securities [Member] | ||
Securities available for sale | ||
Securities available for sale, Percent | 8.50% | 10.93% |
Available-for-sale Securities Reconciliation [Abstract] | ||
Amortized Cost | $ 27,846 | $ 35,371 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (315) | (500) |
Fair Value | ||
Carrying value of investment securities pledged to collateralize short-term borrowings | $ 27,531 | $ 34,871 |
Less than 12 months | ||
Number of securities | security | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Unrealized Loss | $ 0 | $ 0 |
Percentage | 0.00% | 0.00% |
12 months or more | ||
Number of securities | security | 11 | 14 |
Fair Value | $ 27,531 | $ 34,871 |
Unrealized Loss | $ (315) | $ (500) |
Percentage | 1.14% | 1.43% |
Total | ||
Number of securities | security | 11 | 14 |
Fair Value | $ 27,531 | $ 34,871 |
Unrealized Loss | $ (315) | $ (500) |
Percentage | 1.14% | 1.43% |
State and political subdivisions [Member] | ||
Securities available for sale | ||
Securities available for sale, Percent | 63.23% | 63.00% |
Available-for-sale Securities Reconciliation [Abstract] | ||
Amortized Cost | $ 204,331 | $ 202,450 |
Gross Unrealized Gains | 1,189 | 278 |
Gross Unrealized (Losses) | (707) | (1,828) |
Fair Value | ||
Carrying value of investment securities pledged to collateralize short-term borrowings | $ 204,813 | $ 200,900 |
Less than 12 months | ||
Number of securities | security | 59 | 113 |
Fair Value | $ 30,332 | $ 31,022 |
Unrealized Loss | $ (148) | $ (162) |
Percentage | 0.49% | 0.52% |
12 months or more | ||
Number of securities | security | 262 | 325 |
Fair Value | $ 62,104 | $ 77,921 |
Unrealized Loss | $ (559) | $ (1,666) |
Percentage | 0.90% | 2.14% |
Total | ||
Number of securities | security | 321 | 438 |
Fair Value | $ 92,436 | $ 108,943 |
Unrealized Loss | $ (707) | $ (1,828) |
Percentage | 0.76% | 1.68% |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Summary of classes of loans (abstract) | |||
Loans and receivable | $ 2,643,065 | $ 2,627,943 | $ 2,451,925 |
Net unamortized fees and costs | 943 | 952 | |
Loans and receivable, gross | 2,644,008 | 2,628,895 | |
Less allowance for loan losses | 36,520 | 37,810 | |
Loans and receivable, net | 2,607,488 | 2,591,085 | |
Agricultural [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 93,573 | 92,673 | 83,940 |
Commercial and financial [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 227,403 | 229,501 | 214,004 |
Real Estate: Construction, 1 to 4 family residential [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 73,868 | 72,279 | |
Real Estate: Construction, land development and commercial [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 105,466 | 113,807 | |
Real Estate: Mortgage, farmland [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 238,109 | 236,454 | $ 218,462 |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 916,408 | 912,059 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 152,183 | 152,625 | |
Real Estate: Mortgage, multi-family [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 351,090 | 352,434 | |
Real Estate: Mortgage, commercial [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 402,073 | 383,314 | |
Loans to individuals [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | 29,739 | 30,072 | |
Obligations of state and political subdivisions [Member] | |||
Summary of classes of loans (abstract) | |||
Loans and receivable | $ 53,153 | $ 52,725 |
Loans, Allowance For Credit Los
Loans, Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 37,810 | $ 29,400 | |
Charge-offs | (477) | (267) | |
Recoveries | 433 | 542 | |
Provision | (1,246) | (765) | |
Ending balance | 36,520 | 28,910 | |
Ending balance, individually evaluated for impairment | 2,249 | 1,629 | |
Ending balance, collectively evaluated for impairment | 34,271 | 27,281 | |
Loan [Abstract] | |||
Total Loans Receivable | 2,643,065 | 2,451,925 | $ 2,627,943 |
Ending balance, individually evaluated for impairment | 23,071 | 24,586 | |
Ending balance, collectively evaluated for impairment | 2,619,994 | 2,427,339 | |
Agricultural [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,789 | 2,294 | |
Charge-offs | 0 | 0 | |
Recoveries | 10 | 12 | |
Provision | (258) | (53) | |
Ending balance | 2,541 | 2,253 | |
Ending balance, individually evaluated for impairment | 258 | 199 | |
Ending balance, collectively evaluated for impairment | 2,283 | 2,054 | |
Loan [Abstract] | |||
Total Loans Receivable | 93,573 | 83,940 | 92,673 |
Ending balance, individually evaluated for impairment | 2,740 | 2,823 | |
Ending balance, collectively evaluated for impairment | 90,833 | 81,117 | |
Commercial and Financial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 5,826 | 4,837 | |
Charge-offs | (180) | (30) | |
Recoveries | 184 | 248 | |
Provision | 174 | (397) | |
Ending balance | 6,004 | 4,658 | |
Ending balance, individually evaluated for impairment | 1,375 | 759 | |
Ending balance, collectively evaluated for impairment | 4,629 | 3,899 | |
Loan [Abstract] | |||
Total Loans Receivable | 227,403 | 214,004 | 229,501 |
Ending balance, individually evaluated for impairment | 4,039 | 2,550 | |
Ending balance, collectively evaluated for impairment | 223,364 | 211,454 | |
Real Estate: Construction and land development [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 3,292 | 2,989 | |
Charge-offs | (8) | 0 | |
Recoveries | 2 | 143 | |
Provision | (358) | (352) | |
Ending balance | 2,928 | 2,780 | |
Ending balance, individually evaluated for impairment | 0 | 40 | |
Ending balance, collectively evaluated for impairment | 2,928 | 2,740 | |
Loan [Abstract] | |||
Total Loans Receivable | 179,334 | 166,761 | |
Ending balance, individually evaluated for impairment | 832 | 946 | |
Ending balance, collectively evaluated for impairment | 178,502 | 165,815 | |
Real Estate: Mortgage, farmland [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 3,972 | 3,669 | |
Charge-offs | 0 | 0 | |
Recoveries | 5 | 0 | |
Provision | (106) | 40 | |
Ending balance | 3,871 | 3,709 | |
Ending balance, individually evaluated for impairment | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 3,871 | 3,709 | |
Loan [Abstract] | |||
Total Loans Receivable | 238,109 | 218,462 | $ 236,454 |
Ending balance, individually evaluated for impairment | 4,189 | 3,615 | |
Ending balance, collectively evaluated for impairment | 233,920 | 214,847 | |
Real Estate: Mortgage, 1 to 4 family [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 12,516 | 8,668 | |
Charge-offs | (177) | (121) | |
Recoveries | 110 | 98 | |
Provision | (819) | 10 | |
Ending balance | 11,630 | 8,655 | |
Ending balance, individually evaluated for impairment | 74 | 75 | |
Ending balance, collectively evaluated for impairment | 11,556 | 8,580 | |
Loan [Abstract] | |||
Total Loans Receivable | 1,068,591 | 980,150 | |
Ending balance, individually evaluated for impairment | 6,879 | 6,564 | |
Ending balance, collectively evaluated for impairment | 1,061,712 | 973,586 | |
Real Estate: Mortgage, multi-family and commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 8,165 | 5,700 | |
Charge-offs | (4) | (1) | |
Recoveries | 85 | 4 | |
Provision | (23) | 91 | |
Ending balance | 8,223 | 5,794 | |
Ending balance, individually evaluated for impairment | 483 | 493 | |
Ending balance, collectively evaluated for impairment | 7,740 | 5,301 | |
Loan [Abstract] | |||
Total Loans Receivable | 753,163 | 705,576 | |
Ending balance, individually evaluated for impairment | 4,333 | 8,025 | |
Ending balance, collectively evaluated for impairment | 748,830 | 697,551 | |
Others [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,250 | 1,243 | |
Charge-offs | (108) | (115) | |
Recoveries | 37 | 37 | |
Provision | 144 | (104) | |
Ending balance | 1,323 | 1,061 | |
Ending balance, individually evaluated for impairment | 59 | 63 | |
Ending balance, collectively evaluated for impairment | 1,264 | 998 | |
Loan [Abstract] | |||
Total Loans Receivable | 82,892 | 83,032 | |
Ending balance, individually evaluated for impairment | 59 | 63 | |
Ending balance, collectively evaluated for impairment | $ 82,833 | $ 82,969 |
Loans, Credit Quality Indicator
Loans, Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | $ 2,643,065 | $ 2,627,943 | $ 2,451,925 |
Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 80,741 | 80,323 | |
Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 339,832 | 349,134 | |
Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 1,721,920 | 1,703,928 | |
Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 392,787 | 386,561 | |
Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 49,705 | 53,601 | |
Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 58,080 | 54,396 | |
Agricultural [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 93,573 | 92,673 | 83,940 |
Agricultural [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 4,091 | 3,667 | |
Agricultural [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 15,703 | 15,342 | |
Agricultural [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 39,421 | 39,897 | |
Agricultural [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 27,703 | 27,510 | |
Agricultural [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 836 | 647 | |
Agricultural [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 5,819 | 5,610 | |
Commercial and Financial [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 227,403 | 229,501 | 214,004 |
Commercial and Financial [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 2,718 | 3,322 | |
Commercial and Financial [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 47,718 | 51,562 | |
Commercial and Financial [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 123,709 | 121,759 | |
Commercial and Financial [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 38,547 | 35,897 | |
Commercial and Financial [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 8,566 | 11,418 | |
Commercial and Financial [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 6,145 | 5,543 | |
Real Estate: Construction, 1 to 4 family residential [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 73,868 | 72,279 | |
Real Estate: Construction, 1 to 4 family residential [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 0 | 0 | |
Real Estate: Construction, 1 to 4 family residential [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 12,376 | 13,029 | |
Real Estate: Construction, 1 to 4 family residential [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 44,934 | 42,043 | |
Real Estate: Construction, 1 to 4 family residential [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 14,185 | 15,045 | |
Real Estate: Construction, 1 to 4 family residential [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 1,978 | 1,767 | |
Real Estate: Construction, 1 to 4 family residential [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 395 | 395 | |
Real Estate: Construction, land development and commercial [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 105,466 | 113,807 | |
Real Estate: Construction, land development and commercial [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 203 | 209 | |
Real Estate: Construction, land development and commercial [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 17,416 | 16,667 | |
Real Estate: Construction, land development and commercial [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 57,452 | 68,123 | |
Real Estate: Construction, land development and commercial [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 21,312 | 19,888 | |
Real Estate: Construction, land development and commercial [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 7,576 | 7,635 | |
Real Estate: Construction, land development and commercial [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 1,507 | 1,285 | |
Real Estate: Mortgage, farmland [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 238,109 | 236,454 | $ 218,462 |
Real Estate: Mortgage, farmland [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 5,469 | 5,619 | |
Real Estate: Mortgage, farmland [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 50,050 | 52,364 | |
Real Estate: Mortgage, farmland [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 126,988 | 126,706 | |
Real Estate: Mortgage, farmland [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 45,440 | 41,486 | |
Real Estate: Mortgage, farmland [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 1,117 | 1,055 | |
Real Estate: Mortgage, farmland [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 9,045 | 9,224 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 916,408 | 912,059 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 2,307 | 2,715 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 31,571 | 33,134 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 756,430 | 752,473 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 97,980 | 96,187 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 9,414 | 10,439 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 18,706 | 17,111 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 152,183 | 152,625 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 526 | 520 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 4,071 | 4,569 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 138,533 | 138,533 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 6,241 | 6,242 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 1,141 | 1,130 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 1,671 | 1,631 | |
Real Estate: Mortgage, multi-family [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 351,090 | 352,434 | |
Real Estate: Mortgage, multi-family [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 22,051 | 22,058 | |
Real Estate: Mortgage, multi-family [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 59,203 | 60,047 | |
Real Estate: Mortgage, multi-family [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 189,192 | 187,641 | |
Real Estate: Mortgage, multi-family [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 58,506 | 60,398 | |
Real Estate: Mortgage, multi-family [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 15,947 | 16,065 | |
Real Estate: Mortgage, multi-family [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 6,191 | 6,225 | |
Real Estate: Mortgage, commercial [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 402,073 | 383,314 | |
Real Estate: Mortgage, commercial [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 35,391 | 34,096 | |
Real Estate: Mortgage, commercial [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 86,117 | 86,453 | |
Real Estate: Mortgage, commercial [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 195,035 | 177,271 | |
Real Estate: Mortgage, commercial [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 74,094 | 74,990 | |
Real Estate: Mortgage, commercial [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 2,901 | 3,228 | |
Real Estate: Mortgage, commercial [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 8,535 | 7,276 | |
Loans to individuals [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 29,739 | 30,072 | |
Loans to individuals [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 0 | 0 | |
Loans to individuals [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 193 | 315 | |
Loans to individuals [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 28,663 | 28,797 | |
Loans to individuals [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 588 | 647 | |
Loans to individuals [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 229 | 217 | |
Loans to individuals [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 66 | 96 | |
Obligations of state and political subdivisions [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 53,153 | 52,725 | |
Obligations of state and political subdivisions [Member] | Excellent [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 7,985 | 8,117 | |
Obligations of state and political subdivisions [Member] | Good [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 15,414 | 15,652 | |
Obligations of state and political subdivisions [Member] | Satisfactory [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 21,563 | 20,685 | |
Obligations of state and political subdivisions [Member] | Monitor [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 8,191 | 8,271 | |
Obligations of state and political subdivisions [Member] | Special Mention [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | 0 | 0 | |
Obligations of state and political subdivisions [Member] | Substandard [Member] | |||
Summary of credit quality indicators by type of loans [Abstract] | |||
Loans and receivable | $ 0 | $ 0 |
Loans, Past Due Receivables (De
Loans, Past Due Receivables (Details) $ in Thousands | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of accruing loans past due 90 days or more | 3 | 2 | |
Schedule of past due loans [Abstract] | |||
Total Past Due | $ 30,646 | $ 13,629 | |
Current | 2,612,419 | 2,614,314 | |
Total Loans Receivable | 2,643,065 | 2,627,943 | $ 2,451,925 |
Accruing Loans Past Due 90 Days or More | 583 | 370 | |
Agricultural [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 4,118 | 1,161 | |
Current | 89,455 | 91,512 | |
Total Loans Receivable | 93,573 | 92,673 | 83,940 |
Accruing Loans Past Due 90 Days or More | 583 | 0 | |
Commercial and Financial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,771 | 1,672 | |
Current | 225,632 | 227,829 | |
Total Loans Receivable | 227,403 | 229,501 | 214,004 |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Real Estate: Construction, 1 to 4 family residential [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 692 | 212 | |
Current | 73,176 | 72,067 | |
Total Loans Receivable | 73,868 | 72,279 | |
Accruing Loans Past Due 90 Days or More | 0 | 212 | |
Real Estate: Construction, land development and commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,068 | 435 | |
Current | 104,398 | 113,372 | |
Total Loans Receivable | 105,466 | 113,807 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Real Estate: Mortgage, farmland [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 7,584 | 581 | |
Current | 230,525 | 235,873 | |
Total Loans Receivable | 238,109 | 236,454 | $ 218,462 |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 12,601 | 8,039 | |
Current | 903,807 | 904,020 | |
Total Loans Receivable | 916,408 | 912,059 | |
Accruing Loans Past Due 90 Days or More | 0 | 158 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 585 | 235 | |
Current | 151,598 | 152,390 | |
Total Loans Receivable | 152,183 | 152,625 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Real Estate: Mortgage, multi-family [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 143 | 0 | |
Current | 350,947 | 352,434 | |
Total Loans Receivable | 351,090 | 352,434 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Real Estate: Mortgage, commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,914 | 1,077 | |
Current | 400,159 | 382,237 | |
Total Loans Receivable | 402,073 | 383,314 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Loans to individuals [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 170 | 217 | |
Current | 29,569 | 29,855 | |
Total Loans Receivable | 29,739 | 30,072 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
State and political subdivisions [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Current | 53,153 | 52,725 | |
Total Loans Receivable | 53,153 | 52,725 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
30 - 59 Days Past Due [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 23,132 | 7,539 | |
30 - 59 Days Past Due [Member] | Agricultural [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 2,057 | 1,026 | |
30 - 59 Days Past Due [Member] | Commercial and Financial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,158 | 988 | |
30 - 59 Days Past Due [Member] | Real Estate: Construction, 1 to 4 family residential [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 692 | 0 | |
30 - 59 Days Past Due [Member] | Real Estate: Construction, land development and commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,036 | 233 | |
30 - 59 Days Past Due [Member] | Real Estate: Mortgage, farmland [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 6,954 | 193 | |
30 - 59 Days Past Due [Member] | Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 9,145 | 3,972 | |
30 - 59 Days Past Due [Member] | Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 190 | 199 | |
30 - 59 Days Past Due [Member] | Real Estate: Mortgage, multi-family [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 143 | 0 | |
30 - 59 Days Past Due [Member] | Real Estate: Mortgage, commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,633 | 733 | |
30 - 59 Days Past Due [Member] | Loans to individuals [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 124 | 195 | |
30 - 59 Days Past Due [Member] | State and political subdivisions [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
60 - 89 Days Past Due [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,955 | 2,262 | |
60 - 89 Days Past Due [Member] | Agricultural [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 445 | 0 | |
60 - 89 Days Past Due [Member] | Commercial and Financial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 371 | 459 | |
60 - 89 Days Past Due [Member] | Real Estate: Construction, 1 to 4 family residential [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
60 - 89 Days Past Due [Member] | Real Estate: Construction, land development and commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 32 | 202 | |
60 - 89 Days Past Due [Member] | Real Estate: Mortgage, farmland [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 388 | |
60 - 89 Days Past Due [Member] | Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 666 | 833 | |
60 - 89 Days Past Due [Member] | Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 395 | 36 | |
60 - 89 Days Past Due [Member] | Real Estate: Mortgage, multi-family [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
60 - 89 Days Past Due [Member] | Real Estate: Mortgage, commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 344 | |
60 - 89 Days Past Due [Member] | Loans to individuals [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 46 | 0 | |
60 - 89 Days Past Due [Member] | State and political subdivisions [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 5,559 | 3,828 | |
90 Days or More Past Due [Member] | Agricultural [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 1,616 | 135 | |
90 Days or More Past Due [Member] | Commercial and Financial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 242 | 225 | |
90 Days or More Past Due [Member] | Real Estate: Construction, 1 to 4 family residential [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 212 | |
90 Days or More Past Due [Member] | Real Estate: Construction, land development and commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Real Estate: Mortgage, farmland [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 630 | 0 | |
90 Days or More Past Due [Member] | Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 2,790 | 3,234 | |
90 Days or More Past Due [Member] | Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Real Estate: Mortgage, multi-family [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
90 Days or More Past Due [Member] | Real Estate: Mortgage, commercial [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 281 | 0 | |
90 Days or More Past Due [Member] | Loans to individuals [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | 0 | 22 | |
90 Days or More Past Due [Member] | State and political subdivisions [Member] | |||
Schedule of past due loans [Abstract] | |||
Total Past Due | $ 0 | $ 0 |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivable Loan Type (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | $ 11,769 | $ 10,829 |
Accruing loans past due 90 days or more | 583 | 370 |
TDR loans | 8,550 | $ 8,539 |
Decrease accruing loans past due 90 days or more | $ 210 | |
Number of accruing loans past due 90 days or more | 3 | 2 |
Average 90 days or more past due loan balance | $ 190 | $ 190 |
Agricultural [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 1,308 | 1,338 |
Accruing loans past due 90 days or more | 583 | 0 |
TDR loans | 97 | 120 |
Commercial and financial [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 1,857 | 1,476 |
Accruing loans past due 90 days or more | 0 | 0 |
TDR loans | 2,143 | 2,686 |
Real Estate: Construction, 1 to 4 family residential [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 395 | 0 |
Accruing loans past due 90 days or more | 0 | 212 |
TDR loans | 0 | 0 |
Real Estate: Construction, land development and commercial [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 0 | 0 |
Accruing loans past due 90 days or more | 0 | 0 |
TDR loans | 326 | 328 |
Real Estate: Mortgage, farmland [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 1,037 | 1,062 |
Accruing loans past due 90 days or more | 0 | 0 |
TDR loans | 3,903 | 3,301 |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 5,833 | 5,799 |
Accruing loans past due 90 days or more | 0 | 158 |
TDR loans | 1,132 | 1,143 |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 0 | 0 |
Accruing loans past due 90 days or more | 0 | 0 |
TDR loans | 24 | 24 |
Real Estate: Mortgage, multi-family [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 143 | 145 |
Accruing loans past due 90 days or more | 0 | 0 |
TDR loans | 0 | 0 |
Real Estate: Mortgage, commercial [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Non-accrual loans | 1,196 | 1,009 |
Accruing loans past due 90 days or more | 0 | 0 |
TDR loans | 925 | 937 |
Loans to individuals [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
Accruing loans past due 90 days or more | 0 | 0 |
Troubled Debt Restructuring [Member] | ||
Summary of certain impaired loan information [Abstract] | ||
TDR Loans included within nonaccrual loans | $ 5,070 | $ 4,840 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)loancontract | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)loancontract | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 147 | $ 166 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 55 | 54 | |
Recorded investment | $ 13,874 | $ 13,375 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 2 | ||
Pre-modification recorded investment | $ 870 | ||
Post-modification recorded investment | 870 | ||
Commitments to lend additional borrowings | $ 170 | ||
TDR loans default payment | $ 250 | $ 0 | |
Number of TDR loans default payment | loan | 1 | 0 | |
Agricultural [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 12 | $ 91 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 6 | 5 | |
Recorded investment | $ 1,512 | $ 1,316 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 1 | ||
Pre-modification recorded investment | $ 250 | ||
Post-modification recorded investment | 250 | ||
Commercial and Financial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 135 | $ 75 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 13 | 13 | |
Recorded investment | $ 3,646 | $ 3,867 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Real Estate: Construction, 1 to 4 family residential [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Real Estate: Construction, land development and commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 2 | 2 | |
Recorded investment | $ 326 | $ 328 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Real Estate: Mortgage, farmland [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 9 | 8 | |
Recorded investment | $ 4,873 | $ 4,291 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 1 | ||
Pre-modification recorded investment | $ 620 | ||
Post-modification recorded investment | 620 | ||
Real Estate: Mortgage, 1 to 4 family first liens [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 15 | 16 | |
Recorded investment | $ 1,695 | $ 1,710 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 1 | 1 | |
Recorded investment | $ 24 | $ 24 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Real Estate: Mortgage, multi-family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Real Estate: Mortgage, commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 9 | 9 | |
Recorded investment | $ 1,798 | $ 1,839 | |
Summary of troubled debt restructuring loans were modified [Abstract] | |||
Number of contracts | contract | 0 | ||
Pre-modification recorded investment | $ 0 | ||
Post-modification recorded investment | 0 | ||
Loans to individuals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable Troubled Debt Restructuring Commitments Outstanding | $ 0 | $ 0 | |
Summary of information for TDR loans [Abstract] | |||
Number of contracts | contract | 0 | 0 | |
Recorded investment | $ 0 | $ 0 |
Loans, Impaired Financing Rec_2
Loans, Impaired Financing Receivables Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Recorded Investment | ||
With no related allowance recorded | $ 16,277 | $ 15,201 |
With an allowance recorded | 6,794 | 12,784 |
Total impaired loans | 23,071 | 27,985 |
Unpaid Principal Balance | ||
With no related allowance recorded | 20,783 | 19,515 |
With an allowance recorded | 7,001 | 13,023 |
Total | 27,784 | 32,538 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 2,249 | 2,114 |
Total | 2,249 | $ 2,114 |
Average Recorded Investment | ||
With no related allowance recorded | 16,445 | |
With an allowance recorded | 6,893 | |
Total | 23,338 | |
Interest Income Recognized | ||
With no related allowance recorded | 82 | |
With an allowance recorded | 62 | |
Total | 144 | |
Decrease in impaired loans | $ 4,910 | |
Percentages of impaired loans to loans held for investment (in hundredths) | 0.87% | 1.06% |
Decrease accruing loans past days or more financing receivable unpaid principal balance | $ (210) | |
Decrease in TDR loans | 500 | |
Increase in nonaccrual loans | $ 940 | |
Prior period within which impairment is being measured | 1 year | |
Number of period within which average appraisals obtained | 1 month | |
Agricultural and Farmland Real Estate [Member] | ||
Interest Income Recognized | ||
Decrease in impaired loans | $ 5,990 | |
Agricultural [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 1,359 | $ 1,395 |
With an allowance recorded | 1,381 | 1,065 |
Total impaired loans | 2,740 | 2,460 |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,653 | 1,663 |
With an allowance recorded | 1,552 | 1,229 |
Total | 3,205 | 2,892 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 258 | 479 |
Total | 258 | 479 |
Average Recorded Investment | ||
With no related allowance recorded | 1,377 | |
With an allowance recorded | 1,396 | |
Total | 2,773 | |
Interest Income Recognized | ||
With no related allowance recorded | 9 | |
With an allowance recorded | 8 | |
Total | 17 | |
Commercial and Financial [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 1,639 | 1,650 |
With an allowance recorded | 2,400 | 2,512 |
Total impaired loans | 4,039 | 4,162 |
Unpaid Principal Balance | ||
With no related allowance recorded | 2,493 | 2,503 |
With an allowance recorded | 2,429 | 2,512 |
Total | 4,922 | 5,015 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 1,375 | 1,189 |
Total | 1,375 | 1,189 |
Average Recorded Investment | ||
With no related allowance recorded | 1,682 | |
With an allowance recorded | 2,476 | |
Total | 4,158 | |
Interest Income Recognized | ||
With no related allowance recorded | 11 | |
With an allowance recorded | 23 | |
Total | 34 | |
Real Estate: Construction, 1 to 4 family residential [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 110 | 111 |
With an allowance recorded | 0 | 698 |
Total impaired loans | 110 | 809 |
Unpaid Principal Balance | ||
With no related allowance recorded | 148 | 148 |
With an allowance recorded | 0 | 698 |
Total | 148 | 846 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 4 |
Total | 0 | 4 |
Average Recorded Investment | ||
With no related allowance recorded | 111 | |
With an allowance recorded | 0 | |
Total | 111 | |
Interest Income Recognized | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 0 | |
Total | 0 | |
Real Estate: Construction, land development and commercial [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 722 | 328 |
With an allowance recorded | 0 | 0 |
Total impaired loans | 722 | 328 |
Unpaid Principal Balance | ||
With no related allowance recorded | 738 | 344 |
With an allowance recorded | 0 | 0 |
Total | 738 | 344 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Total | 0 | 0 |
Average Recorded Investment | ||
With no related allowance recorded | 722 | |
With an allowance recorded | 0 | |
Total | 722 | |
Interest Income Recognized | ||
With no related allowance recorded | 4 | |
With an allowance recorded | 0 | |
Total | 4 | |
Real Estate: Mortgage, farmland [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 4,189 | 3,612 |
With an allowance recorded | 0 | 0 |
Total impaired loans | 4,189 | 3,612 |
Unpaid Principal Balance | ||
With no related allowance recorded | 4,667 | 4,071 |
With an allowance recorded | 0 | 0 |
Total | 4,667 | 4,071 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Total | 0 | 0 |
Average Recorded Investment | ||
With no related allowance recorded | 4,198 | |
With an allowance recorded | 0 | |
Total | 4,198 | |
Interest Income Recognized | ||
With no related allowance recorded | 39 | |
With an allowance recorded | 0 | |
Total | 39 | |
Real Estate: Mortgage, 1 to 4 family first liens [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 6,068 | 6,089 |
With an allowance recorded | 787 | 899 |
Total impaired loans | 6,855 | 6,988 |
Unpaid Principal Balance | ||
With no related allowance recorded | 7,860 | 7,819 |
With an allowance recorded | 794 | 974 |
Total | 8,654 | 8,793 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 73 | 70 |
Total | 73 | 70 |
Average Recorded Investment | ||
With no related allowance recorded | 6,143 | |
With an allowance recorded | 789 | |
Total | 6,932 | |
Interest Income Recognized | ||
With no related allowance recorded | 9 | |
With an allowance recorded | 4 | |
Total | 13 | |
Real Estate: Mortgage, 1 to 4 family junior liens [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 24 | 24 |
Total impaired loans | 24 | 24 |
Unpaid Principal Balance | ||
With no related allowance recorded | 252 | 254 |
With an allowance recorded | 24 | 24 |
Total | 276 | 278 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 1 | 2 |
Total | 1 | 2 |
Average Recorded Investment | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 24 | |
Total | 24 | |
Interest Income Recognized | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 0 | |
Total | 0 | |
Real Estate: Mortgage, multi-family [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 143 | 145 |
With an allowance recorded | 1,402 | 7,447 |
Total impaired loans | 1,545 | 7,592 |
Unpaid Principal Balance | ||
With no related allowance recorded | 213 | 213 |
With an allowance recorded | 1,402 | 7,447 |
Total | 1,615 | 7,660 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 282 | 305 |
Total | 282 | 305 |
Average Recorded Investment | ||
With no related allowance recorded | 144 | |
With an allowance recorded | 1,408 | |
Total | 1,552 | |
Interest Income Recognized | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 17 | |
Total | 17 | |
Real Estate: Mortgage, commercial [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 2,047 | 1,871 |
With an allowance recorded | 741 | 75 |
Total impaired loans | 2,788 | 1,946 |
Unpaid Principal Balance | ||
With no related allowance recorded | 2,745 | 2,486 |
With an allowance recorded | 741 | 75 |
Total | 3,486 | 2,561 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 201 | 1 |
Total | 201 | 1 |
Average Recorded Investment | ||
With no related allowance recorded | 2,068 | |
With an allowance recorded | 744 | |
Total | 2,812 | |
Interest Income Recognized | ||
With no related allowance recorded | 10 | |
With an allowance recorded | 8 | |
Total | 18 | |
Loans to individuals [Member] | ||
Recorded Investment | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 59 | 64 |
Total impaired loans | 59 | 64 |
Unpaid Principal Balance | ||
With no related allowance recorded | 14 | 14 |
With an allowance recorded | 59 | 64 |
Total | 73 | 78 |
Related Allowance | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 59 | 64 |
Total | 59 | $ 64 |
Average Recorded Investment | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 56 | |
Total | 56 | |
Interest Income Recognized | ||
With no related allowance recorded | 0 | |
With an allowance recorded | 2 | |
Total | $ 2 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating lease expense | $ 170 | |
Operating lease cost | 140 | |
Short-term lease cost | 10 | |
Variable lease cost | 20 | |
Operating lease payments | 140 | |
Right-of-use assets obtained in exchange for lease obligations | 3,581 | $ 0 |
Total operating lease liabilities | $ 3,581 | |
Weighted average remaining lease term | 11 years 2 months 12 days | |
Weighted average discount rate | 3.43% |
Leases - Minimum Future Rental
Leases - Minimum Future Rental Commitments, Topic 842 (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 467 |
2020 | 470 |
2021 | 456 |
2022 | 447 |
2023 | 301 |
Thereafter | 2,259 |
Total lease payments | 4,400 |
Less imputed interest | (819) |
Total operating lease liabilities | $ 3,581 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Readily Available Market Prices [Member] | ||
Financial instrument assets: | ||
Cash and cash equivalents | $ 200,476 | $ 43,305 |
Investment securities | 91,573 | 83,155 |
Loans held for sale | 0 | 0 |
Loans | ||
Agricultural | 0 | 0 |
Commercial and financial | 0 | 0 |
Real estate: | ||
Construction, 1 to 4 family residential | 0 | 0 |
Construction, land development and commercial | 0 | 0 |
Mortgage, farmland | 0 | 0 |
Mortgage, 1 to 4 family first liens | 0 | 0 |
Mortgage, 1 to 4 family junior liens | 0 | 0 |
Mortgage, multi-family | 0 | 0 |
Mortgage, commercial | 0 | 0 |
Loans to individuals | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Total financial instrument assets | 292,049 | 126,460 |
Deposits | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Other borrowings | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Interest rate swaps | 0 | |
Accrued interest payable | 0 | 0 |
Total financial instrument liabilities | 0 | 0 |
Financial instrument with off-balance sheet risk: | ||
Loan commitments | 0 | 0 |
Letters of credit | 0 | 0 |
Total financial instrument liabilities with off-balance-sheet risk | 0 | 0 |
Observable Market Prices [Member] | ||
Financial instrument assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 244,610 | 247,943 |
Loans held for sale | 5,267 | 1,984 |
Loans | ||
Agricultural | 0 | 0 |
Commercial and financial | 0 | 0 |
Real estate: | ||
Construction, 1 to 4 family residential | 0 | 0 |
Construction, land development and commercial | 0 | 0 |
Mortgage, farmland | 0 | 0 |
Mortgage, 1 to 4 family first liens | 0 | 0 |
Mortgage, 1 to 4 family junior liens | 0 | 0 |
Mortgage, multi-family | 0 | 0 |
Mortgage, commercial | 0 | 0 |
Loans to individuals | 0 | 0 |
Obligations of state and political subdivisions | 0 | 0 |
Accrued interest receivable | 13,970 | 11,784 |
Total financial instrument assets | 263,847 | 261,711 |
Deposits | ||
Noninterest-bearing deposits | 363,142 | 372,152 |
Interest-bearing deposits | 2,243,433 | 2,059,336 |
Other borrowings | 0 | 0 |
Federal Home Loan Bank borrowings | 208,188 | 207,948 |
Interest rate swaps | 1,894 | 1,596 |
Accrued interest payable | 2,051 | 1,812 |
Total financial instrument liabilities | 2,818,708 | 2,642,844 |
Financial instrument with off-balance sheet risk: | ||
Loan commitments | 0 | 0 |
Letters of credit | 0 | 0 |
Total financial instrument liabilities with off-balance-sheet risk | 0 | 0 |
Company Determined Market Prices [Member] | ||
Financial instrument assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | ||
Agricultural | 93,028 | 93,736 |
Commercial and financial | 225,946 | 227,774 |
Real estate: | ||
Construction, 1 to 4 family residential | 73,965 | 72,419 |
Construction, land development and commercial | 105,134 | 112,960 |
Mortgage, farmland | 235,465 | 235,771 |
Mortgage, 1 to 4 family first liens | 888,705 | 882,908 |
Mortgage, 1 to 4 family junior liens | 148,210 | 148,128 |
Mortgage, multi-family | 344,083 | 342,099 |
Mortgage, commercial | 395,694 | 376,257 |
Loans to individuals | 30,424 | 29,962 |
Obligations of state and political subdivisions | 52,338 | 51,945 |
Accrued interest receivable | 0 | 0 |
Total financial instrument assets | 2,592,992 | 2,573,959 |
Deposits | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Other borrowings | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Interest rate swaps | 0 | |
Accrued interest payable | 0 | 0 |
Total financial instrument liabilities | 0 | 0 |
Financial instrument with off-balance sheet risk: | ||
Loan commitments | 0 | 0 |
Letters of credit | 0 | 0 |
Total financial instrument liabilities with off-balance-sheet risk | 0 | 0 |
Carrying Amount [Member] | ||
Financial instrument assets: | ||
Cash and cash equivalents | 200,476 | 43,305 |
Investment securities | 336,183 | 331,098 |
Loans held for sale | 5,267 | 1,984 |
Loans | ||
Agricultural | 91,032 | 89,884 |
Commercial and financial | 221,399 | 223,675 |
Real estate: | ||
Construction, 1 to 4 family residential | 72,589 | 70,982 |
Construction, land development and commercial | 103,817 | 111,812 |
Mortgage, farmland | 234,238 | 232,482 |
Mortgage, 1 to 4 family first liens | 907,397 | 902,261 |
Mortgage, 1 to 4 family junior liens | 150,507 | 150,859 |
Mortgage, multi-family | 347,138 | 348,351 |
Mortgage, commercial | 397,802 | 379,232 |
Loans to individuals | 28,921 | 29,349 |
Obligations of state and political subdivisions | 52,648 | 52,198 |
Accrued interest receivable | 13,970 | 11,784 |
Total financial instrument assets | 3,163,384 | 2,979,256 |
Deposits | ||
Noninterest-bearing deposits | 363,142 | 372,152 |
Interest-bearing deposits | 2,233,750 | 2,048,972 |
Other borrowings | 0 | 0 |
Federal Home Loan Bank borrowings | 215,000 | 215,000 |
Interest rate swaps | 1,894 | 1,596 |
Accrued interest payable | 2,051 | 1,812 |
Total financial instrument liabilities | 2,815,837 | 2,639,532 |
Financial instrument with off-balance sheet risk: | ||
Loan commitments | 393,424 | 375,940 |
Letters of credit | 8,918 | 9,033 |
Total financial instrument liabilities with off-balance-sheet risk | 402,342 | 384,973 |
Estimated Fair Value [Member] | ||
Financial instrument assets: | ||
Cash and cash equivalents | 200,476 | 43,305 |
Investment securities | 336,183 | 331,098 |
Loans held for sale | 5,267 | 1,984 |
Loans | ||
Agricultural | 93,028 | 93,736 |
Commercial and financial | 225,946 | 227,774 |
Real estate: | ||
Construction, 1 to 4 family residential | 73,965 | 72,419 |
Construction, land development and commercial | 105,134 | 112,960 |
Mortgage, farmland | 235,465 | 235,771 |
Mortgage, 1 to 4 family first liens | 888,705 | 882,908 |
Mortgage, 1 to 4 family junior liens | 148,210 | 148,128 |
Mortgage, multi-family | 344,083 | 342,099 |
Mortgage, commercial | 395,694 | 376,257 |
Loans to individuals | 30,424 | 29,962 |
Obligations of state and political subdivisions | 52,338 | 51,945 |
Accrued interest receivable | 13,970 | 11,784 |
Total financial instrument assets | 3,148,888 | 2,962,130 |
Deposits | ||
Noninterest-bearing deposits | 363,142 | 372,152 |
Interest-bearing deposits | 2,243,433 | 2,059,336 |
Other borrowings | 0 | 0 |
Federal Home Loan Bank borrowings | 208,188 | 207,948 |
Interest rate swaps | 1,894 | 1,596 |
Accrued interest payable | 2,051 | 1,812 |
Total financial instrument liabilities | 2,818,708 | 2,642,844 |
Financial instrument with off-balance sheet risk: | ||
Loan commitments | 0 | 0 |
Letters of credit | 0 | 0 |
Total financial instrument liabilities with off-balance-sheet risk | $ 0 | $ 0 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | $ 323,917 | $ 318,926 |
U.S. Treasury [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 91,573 | 83,155 |
State and political subdivisions [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 204,813 | 200,900 |
Readily Available Market Prices [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Derivative Financial Instruments | 0 | |
Total | 292,049 | 126,460 |
Observable Market Prices [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Derivative Financial Instruments | (1,894) | (1,596) |
Total | 263,847 | 261,711 |
Company Determined Market Prices [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Derivative Financial Instruments | 0 | |
Total | 2,592,992 | 2,573,959 |
Recurring Basis [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Total | 322,023 | 317,330 |
Recurring Basis [Member] | U.S. Treasury [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 91,573 | 83,155 |
Recurring Basis [Member] | State and political subdivisions [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 204,813 | 200,900 |
Recurring Basis [Member] | Other securities (FHLB, FHLMC and FNMA) [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 27,531 | 34,871 |
Recurring Basis [Member] | Interest rate swaps [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Derivative Financial Instruments | (1,894) | (1,596) |
Recurring Basis [Member] | Readily Available Market Prices [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Total | 91,573 | 83,155 |
Recurring Basis [Member] | Readily Available Market Prices [Member] | U.S. Treasury [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 91,573 | 83,155 |
Recurring Basis [Member] | Readily Available Market Prices [Member] | State and political subdivisions [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring Basis [Member] | Readily Available Market Prices [Member] | Other securities (FHLB, FHLMC and FNMA) [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring Basis [Member] | Observable Market Prices [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Total | 230,450 | 234,175 |
Recurring Basis [Member] | Observable Market Prices [Member] | U.S. Treasury [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring Basis [Member] | Observable Market Prices [Member] | State and political subdivisions [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 204,813 | 200,900 |
Recurring Basis [Member] | Observable Market Prices [Member] | Other securities (FHLB, FHLMC and FNMA) [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 27,531 | 34,871 |
Recurring Basis [Member] | Observable Market Prices [Member] | Interest rate swaps [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Derivative Financial Instruments | (1,894) | (1,596) |
Recurring Basis [Member] | Company Determined Market Prices [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Total | 0 | 0 |
Recurring Basis [Member] | Company Determined Market Prices [Member] | U.S. Treasury [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring Basis [Member] | Company Determined Market Prices [Member] | State and political subdivisions [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | 0 | 0 |
Recurring Basis [Member] | Company Determined Market Prices [Member] | Other securities (FHLB, FHLMC and FNMA) [Member] | ||
Summary of assets and liabilities measured at fair value on a recurring basis [Abstract] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets and Liabilities on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Readily Available Market Prices [Member] | ||
Loans | ||
Agricultural | $ 0 | $ 0 |
Commercial and financial | 0 | 0 |
Real Estate [Abstract] | ||
Construction, land development and commercial | 0 | 0 |
Mortgage, farmland | 0 | 0 |
Mortgage, 1 to 4 family first liens | 0 | 0 |
Mortgage, 1 to 4 family junior liens | 0 | 0 |
Mortgage, multi-family | 0 | 0 |
Mortgage, commercial | 0 | 0 |
Loans to individuals | 0 | 0 |
Total financial instrument assets | 292,049 | 126,460 |
Observable Market Prices [Member] | ||
Loans | ||
Agricultural | 0 | 0 |
Commercial and financial | 0 | 0 |
Real Estate [Abstract] | ||
Construction, land development and commercial | 0 | 0 |
Mortgage, farmland | 0 | 0 |
Mortgage, 1 to 4 family first liens | 0 | 0 |
Mortgage, 1 to 4 family junior liens | 0 | 0 |
Mortgage, multi-family | 0 | 0 |
Mortgage, commercial | 0 | 0 |
Loans to individuals | 0 | 0 |
Total financial instrument assets | 263,847 | 261,711 |
Company Determined Market Prices [Member] | ||
Loans | ||
Agricultural | 93,028 | 93,736 |
Commercial and financial | 225,946 | 227,774 |
Real Estate [Abstract] | ||
Construction, land development and commercial | 105,134 | 112,960 |
Mortgage, farmland | 235,465 | 235,771 |
Mortgage, 1 to 4 family first liens | 888,705 | 882,908 |
Mortgage, 1 to 4 family junior liens | 148,210 | 148,128 |
Mortgage, multi-family | 344,083 | 342,099 |
Mortgage, commercial | 395,694 | 376,257 |
Loans to individuals | 30,424 | 29,962 |
Total financial instrument assets | 2,592,992 | 2,573,959 |
Nonrecurring Basis [Member] | ||
Loans | ||
Agricultural | 2,090 | 1,160 |
Commercial and financial | 2,566 | 2,882 |
Real Estate [Abstract] | ||
Construction, 1 to 4 family residential | 0 | 0 |
Construction, land development and commercial | 612 | 703 |
Mortgage, farmland | 3,674 | 3,848 |
Mortgage, 1 to 4 family first liens | 6,746 | 6,729 |
Mortgage, 1 to 4 family junior liens | 23 | 22 |
Mortgage, multi-family | 1,120 | 7,286 |
Mortgage, commercial | 2,108 | 1,458 |
Loans to individuals | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total financial instrument assets | 18,939 | 24,088 |
Total Losses | 148 | 1,114 |
Nonrecurring Basis [Member] | Agricultural [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 63 |
Nonrecurring Basis [Member] | Commercial and financial [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 50 | 122 |
Nonrecurring Basis [Member] | Real Estate: Construction, 1 to 4 family residential [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 0 |
Nonrecurring Basis [Member] | Real Estate: Construction, land development and commercial [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 8 | 0 |
Nonrecurring Basis [Member] | Real Estate: Mortgage, farmland [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 0 |
Nonrecurring Basis [Member] | Real Estate: Mortgage, 1 to 4 family first liens [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 90 | 520 |
Nonrecurring Basis [Member] | Real Estate: Mortgage, 1 to 4 family junior liens [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 60 |
Nonrecurring Basis [Member] | Real Estate: Mortgage, multi-family [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 0 |
Nonrecurring Basis [Member] | Real Estate: Mortgage, commercial [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 349 |
Nonrecurring Basis [Member] | Loans to individuals [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 0 |
Nonrecurring Basis [Member] | Foreclosed assets [Member] | ||
Real Estate [Abstract] | ||
Total Losses | 0 | 0 |
Nonrecurring Basis [Member] | Readily Available Market Prices [Member] | ||
Loans | ||
Agricultural | 0 | 0 |
Commercial and financial | 0 | 0 |
Real Estate [Abstract] | ||
Construction, 1 to 4 family residential | 0 | 0 |
Construction, land development and commercial | 0 | 0 |
Mortgage, farmland | 0 | 0 |
Mortgage, 1 to 4 family first liens | 0 | 0 |
Mortgage, 1 to 4 family junior liens | 0 | 0 |
Mortgage, multi-family | 0 | 0 |
Mortgage, commercial | 0 | 0 |
Loans to individuals | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total financial instrument assets | 0 | 0 |
Nonrecurring Basis [Member] | Observable Market Prices [Member] | ||
Loans | ||
Agricultural | 0 | 0 |
Commercial and financial | 0 | 0 |
Real Estate [Abstract] | ||
Construction, 1 to 4 family residential | 0 | 0 |
Construction, land development and commercial | 0 | 0 |
Mortgage, farmland | 0 | 0 |
Mortgage, 1 to 4 family first liens | 0 | 0 |
Mortgage, 1 to 4 family junior liens | 0 | 0 |
Mortgage, multi-family | 0 | 0 |
Mortgage, commercial | 0 | 0 |
Loans to individuals | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total financial instrument assets | 0 | 0 |
Nonrecurring Basis [Member] | Company Determined Market Prices [Member] | ||
Loans | ||
Agricultural | 2,090 | 1,160 |
Commercial and financial | 2,566 | 2,882 |
Real Estate [Abstract] | ||
Construction, 1 to 4 family residential | 0 | 0 |
Construction, land development and commercial | 612 | 703 |
Mortgage, farmland | 3,674 | 3,848 |
Mortgage, 1 to 4 family first liens | 6,746 | 6,729 |
Mortgage, 1 to 4 family junior liens | 23 | 22 |
Mortgage, multi-family | 1,120 | 7,286 |
Mortgage, commercial | 2,108 | 1,458 |
Loans to individuals | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total financial instrument assets | $ 18,939 | $ 24,088 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - $ / shares | 3 Months Ended | 164 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Jul. 26, 2005 | |
Equity [Abstract] | ||||
Maximum number of share authorized to repurchase under the program (in shares) | 1,500,000 | |||
Common stock purchased during the period (in shares) | 69,771 | 47,432 | 1,196,650 | |
Average price per share (in dollars per share) | $ 61.50 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
State and political subdivisions [Member] | ||
Concentration Risk [Line Items] | ||
Investment in securities issued by state and political subdivisions within the state of Iowa | $ 98,320 | |
Home equity loans [Member] | ||
Firm loan commitments and unused portion of lines of credit [Abstract] | ||
Total financial instrument liabilities with off-balance-sheet risk | 60,782 | $ 59,330 |
Credit cards [Member] | ||
Firm loan commitments and unused portion of lines of credit [Abstract] | ||
Total financial instrument liabilities with off-balance-sheet risk | 54,165 | 52,802 |
Commercial, real estate and home construction [Member] | ||
Firm loan commitments and unused portion of lines of credit [Abstract] | ||
Total financial instrument liabilities with off-balance-sheet risk | 100,245 | 89,171 |
Commercial lines and real estate purchase loans [Member] | ||
Firm loan commitments and unused portion of lines of credit [Abstract] | ||
Total financial instrument liabilities with off-balance-sheet risk | 178,232 | 174,637 |
Outstanding letters of credit [Member] | ||
Firm loan commitments and unused portion of lines of credit [Abstract] | ||
Total financial instrument liabilities with off-balance-sheet risk | $ 8,918 | $ 9,033 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Examination [Line Items] | ||
Effective tax rate | 21.22% | 19.15% |
Internal Revenue Service (IRS) [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax examination, years under examination | December 31, 2018, 2017, and 2016 | |
State and Local Jurisdiction [Member] | ||
Income Tax Examination [Line Items] | ||
Income tax examination, years under examination | December 31, 2018, 2017, and 2016 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Nov. 07, 2013USD ($)derivative | |
Derivatives, Fair Value [Line Items] | ||||
Owned and pledged as collateral | $ 1,890,000 | |||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Net change in unrealized (loss) income on derivatives | (298,000) | $ 1,054,000 | ||
Interest Rate Swap 1 [Member] | Interest Expense [Member] | ||||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Amount of Gain (Loss), Reclassified from AOCI into Income | 0 | $ 0 | ||
Interest Rate Swap 1 [Member] | Other Income [Member] | ||||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Amount of Gain (Loss), Recognized in Income on Derivatives | 0 | 0 | ||
Interest Rate Swap 1 [Member] | Other Liabilities [Member] | ||||
Derivative instrument according to type of hedges [Abstract] | ||||
Notional Amount | 25,000,000 | 25,000,000 | $ 25,000,000 | |
Fair Value | $ (182,000) | $ (120,000) | ||
Maturity | Nov. 9, 2020 | Nov. 9, 2020 | ||
Interest Rate Swap 1 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Net change in unrealized (loss) income on derivatives | $ (46,000) | $ 347,000 | ||
Interest Rate Swap 2 [Member] | Interest Expense [Member] | ||||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Amount of Gain (Loss), Reclassified from AOCI into Income | 0 | 0 | ||
Interest Rate Swap 2 [Member] | Other Income [Member] | ||||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Amount of Gain (Loss), Recognized in Income on Derivatives | 0 | 0 | ||
Interest Rate Swap 2 [Member] | Other Liabilities [Member] | ||||
Derivative instrument according to type of hedges [Abstract] | ||||
Notional Amount | 25,000,000 | 25,000,000 | $ 25,000,000 | |
Fair Value | $ (1,712,000) | $ (1,476,000) | ||
Maturity | Nov. 7, 2023 | Nov. 7, 2023 | ||
Interest Rate Swap 2 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Gain (Loss) Recognized in Other Comprehensive Income, Net [Abstract] | ||||
Net change in unrealized (loss) income on derivatives | $ (177,000) | $ 571,000 | ||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate swaps held | derivative | 2 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap 1 [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate swaps held | derivative | 1 |