Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 28, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ISABELLA BANK CORP | |
Entity Central Index Key | 0000842517 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,927,845 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | ||
Cash and demand deposits due from banks | $ 19,160 | $ 20,311 |
Interest bearing balances due from banks | 77,591 | 40,261 |
Total cash and cash equivalents | 96,751 | 60,572 |
Debt Securities, Available-for-sale | 407,189 | 429,839 |
Mortgage loans AFS | 1,228 | 904 |
Loans | ||
Commercial | 695,278 | 700,941 |
Agricultural | 108,856 | 116,920 |
Residential real estate | 302,016 | 298,569 |
Consumer | 69,786 | 70,140 |
Gross loans | 1,175,936 | 1,186,570 |
Less allowance for loan losses | 8,697 | 7,939 |
Net loans | 1,167,239 | 1,178,631 |
Premises and equipment | 25,946 | 26,242 |
Corporate owned life insurance | 27,691 | 28,455 |
Accrued interest receivable | 7,022 | 6,501 |
Equity securities without readily determinable fair values | 21,535 | 21,629 |
Goodwill and other intangible assets | 48,366 | 48,379 |
Other assets | 12,937 | 13,046 |
TOTAL ASSETS | 1,815,904 | 1,814,198 |
Deposits | ||
Noninterest bearing | 249,424 | 249,152 |
NOW accounts | 237,392 | 229,865 |
Certificates of deposit under $250 and other savings | 739,925 | 739,023 |
Certificates of deposit over $250 | 95,342 | 95,811 |
Total deposits | 1,322,083 | 1,313,851 |
Borrowed funds | 263,171 | 275,999 |
Accrued interest payable and other liabilities | 15,152 | 14,166 |
Total liabilities | 1,600,406 | 1,604,016 |
Shareholders' equity | ||
Common stock — no par value 15,000,000 shares authorized | 140,945 | 141,069 |
Shares to be issued for deferred compensation obligations | 4,802 | 5,043 |
Retained earnings | 63,041 | 62,099 |
Accumulated other comprehensive income | 6,710 | 1,971 |
Total shareholders' equity | 215,498 | 210,182 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,815,904 | $ 1,814,198 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,921,291 | 7,910,804 |
Common stock, shares outstanding | 7,921,291 | 7,910,804 |
Common stock, shares held in Rabbi Trust | 44,687 | 27,069 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | ||
Loans, including fees | $ 13,254 | $ 12,891 |
AFS securities | ||
Taxable | 1,489 | 1,958 |
Nontaxable | 1,053 | 1,253 |
Federal funds sold and other | 405 | 379 |
Total interest income | 16,201 | 16,481 |
Interest expense | ||
Deposits | 2,791 | 2,718 |
Borrowings | 1,408 | 1,574 |
Total interest expense | 4,199 | 4,292 |
Net interest income | 12,002 | 12,189 |
Provision for loan losses | 788 | 34 |
Net interest income after provision for loan losses | 11,214 | 12,155 |
Noninterest income | ||
Noninterest Income, Service Charges and Fees | 1,353 | 1,461 |
Noninterest Income Investment and Trust Advisory Fees | 572 | 677 |
Bank Owned Life Insurance Income, From Policy Redemption | 524 | 0 |
Earnings on corporate owned life insurance policies | 182 | 184 |
Net gain on sale of mortgage loans | 151 | 93 |
Other | 216 | 75 |
Total noninterest income | 2,998 | 2,490 |
Noninterest expenses | ||
Compensation and benefits | 5,869 | 5,722 |
Furniture and equipment | 1,461 | 1,494 |
Occupancy | 867 | 930 |
Other | 2,748 | 2,654 |
Total noninterest expenses | 10,945 | 10,800 |
Income before federal income tax expense | 3,267 | 3,845 |
Federal Income Tax Expense (Benefit), Continuing Operations | 203 | 349 |
NET INCOME | $ 3,064 | $ 3,496 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.39 | $ 0.44 |
Diluted (in dollars per share) | 0.38 | 0.43 |
Cash dividends per basic share (in dollars per share) | $ 0.27 | $ 0.26 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,064 | $ 3,496 |
Unrealized gains (losses) on AFS securities | ||
Unrealized gains (losses) on AFS securities arising during the period | (6,311) | (5,954) |
Reclassification adjustment for net (gains) losses included in net income | (71) | 0 |
Tax effect | (1,393) | (1,195) |
Unrealized gains (losses) on AFS securities, net of tax | 4,847 | 4,759 |
Unrealized gains (losses) on derivative instruments arising during the period | (136) | (81) |
Tax effect | 28 | 17 |
Unrealized gains (losses) on derivative instruments, net of tax | (108) | (64) |
Other comprehensive income (loss), net of tax | 4,739 | 4,695 |
Comprehensive income (loss) | $ 7,803 | $ 8,191 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Shares to be Issued for Deferred Compensation Obligations | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balances at Dec. 31, 2018 | $ 195,519 | $ 140,416 | $ 5,431 | $ 57,357 | $ (7,685) |
Beginning balances, shares at Dec. 31, 2018 | 7,870,969 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 8,191 | 3,496 | 4,695 | ||
Issuance of common stock | 1,433 | $ 1,433 | |||
Issuance of common stock, shares | 61,405 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 268 | (268) | ||
Share based payment awards under equity compensation plan | 131 | 131 | |||
Common stock purchased for deferred compensation obligations | (186) | (186) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (632) | $ (632) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (26,296) | ||||
Cash dividends | (2,043) | (2,043) | |||
Ending balances at Mar. 31, 2019 | 202,413 | $ 141,299 | 5,294 | 58,810 | (2,990) |
Ending balances, shares at Mar. 31, 2019 | 7,906,078 | ||||
Beginning balances at Dec. 31, 2019 | $ 210,182 | $ 141,069 | 5,043 | 62,099 | 1,971 |
Beginning balances, shares at Dec. 31, 2019 | 7,910,804 | 7,910,804 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | $ 7,803 | 3,064 | 4,739 | ||
Issuance of common stock | 1,330 | $ 1,330 | |||
Issuance of common stock, shares | 69,907 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 364 | (364) | ||
Share based payment awards under equity compensation plan | 123 | 123 | |||
Common stock purchased for deferred compensation obligations | (650) | (650) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (1,168) | $ (1,168) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (59,420) | ||||
Cash dividends | (2,122) | (2,122) | |||
Ending balances at Mar. 31, 2020 | $ 215,498 | $ 140,945 | $ 4,802 | $ 63,041 | $ 6,710 |
Ending balances, shares at Mar. 31, 2020 | 7,921,291 | 7,921,291 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.27 | $ 0.26 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 4,214 | $ 4,227 |
OPERATING ACTIVITIES | ||
Net income | 3,064 | 3,496 |
Undistributed Earnings Of Equity Method And Other Investments | (94) | (57) |
Reconciliation of net income to net cash provided by operating activities: | ||
Provision for loan losses | 788 | 34 |
Depreciation | 668 | 731 |
Amortization of OMSR | 97 | 44 |
Amortization of acquisition intangibles | 13 | 19 |
Net amortization of AFS securities | 444 | 435 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | (71) | 0 |
Net gain on sale of mortgage loans | (151) | (93) |
Mortgage Servicing Rights (MSR) Impairment (Recovery) | 245 | 0 |
Bank Owned Life Insurance Income, Net of Expense | 170 | 173 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets, Valuation Adjustments | 42 | 33 |
Bank Owned Life Insurance Income, From Policy Redemption | (524) | 0 |
Share-based payment awards under equity compensation plan | 123 | 131 |
Proceeds from loan sales | (8,890) | (6,520) |
Proceeds from loan sales | 8,717 | 6,826 |
Net changes in operating assets and liabilities which provided (used) cash: | ||
Accrued interest receivable | (521) | (823) |
Other assets | (379) | (1,492) |
Accrued interest payable and other liabilities | (111) | 437 |
Net cash provided by (used in) operating activities | 3,394 | 3,076 |
Activity in AFS securities | ||
Proceeds from Sale of Debt Securities, Available-for-sale | 26,855 | 0 |
Maturities and calls | 12,674 | 11,824 |
Purchases | (11,012) | (6,313) |
Net loan principal (originations) collections | 10,487 | (16,373) |
Proceeds from sales of foreclosed assets | 51 | 224 |
Purchases of premises and equipment | (372) | (340) |
Proceeds from Life Insurance Policy | 1,458 | 0 |
Payments to Acquire Other Investments | 150 | 117 |
Net cash provided by (used in) investing activities | 39,991 | (11,095) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 8,232 | (14,730) |
Increase in other borrowed funds | (12,828) | (28,615) |
Cash dividends paid on common stock | (2,122) | (2,043) |
Proceeds from issuance of common stock | 1,330 | 1,433 |
Common stock repurchased | (1,168) | (632) |
Common stock purchased for deferred compensation obligations | (650) | (186) |
Increase (decrease) in cash and cash equivalents | 36,179 | (52,792) |
Cash and cash equivalents at beginning of period | 60,572 | 73,471 |
Cash and cash equivalents at end of period | 96,751 | 20,679 |
Net cash provided by (used in) financing activities | (7,206) | (44,773) |
SUPPLEMENTAL NONCASH INFORMATION: | ||
Transfers of loans to foreclosed assets | $ 117 | $ 237 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation As used in these notes, as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations , references to the “Corporation”, “Isabella”, “we”, “our”, “us”, and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiary. References to Isabella Bank or the “Bank” refer to Isabella Bank Corporation ’s subsidiary, Isabella Bank . The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three -month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2019 . Our accounting policies are materially the same as those discussed in Note 1 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 . Reclassifications: Certain amounts reported in the interim 2019 consolidated financial statements have been reclassified to conform with the 2020 presentation. |
Pending Accounting Standards Up
Pending Accounting Standards Updates | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Pending Accounting Standards Updates | Accounting Standards Updates Recently Adopted ASU No. 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, ASU No. 2018-13 was issued and provided updated framework related to fair value disclosures. For entities required to make disclosures about recurring or nonrecurring fair value measurements, the update provides disclosure modifications which include the removal, modification and addition of specific disclosure requirements. The new authoritative guidance was effective January 1, 2020 and did not have a significant impact on our financial statement disclosures. 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 Arrangement That Is a Service Contract” In August 2018, ASU No. 2018-15 was issued and provided guidance on the accounting for implementation, setup, and other upfront costs (collectively referred to as implementation costs) for entities that are a customer in a hosting arrangement that is a service contract. The guidance also provides clarification on requirements to capitalize implementation costs and the required accounting for expenses related to capitalization of implementation costs. The new authoritative guidance was effective January 1, 2020. Based on the prospective approach, we will review future arrangements to determine the appropriate treatment under this guidance. These changes are not expected to have a significant impact on our operating results or financial statement disclosures. Pending ASU No. 2016-13: “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, ASU No. 2016-13 was issued and updated the measurement for credit losses for AFS debt securities and assets measured at amortized cost which include loans, trade receivables, and any other financial assets with the contractual right to receive cash. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. Under the incurred loss approach, entities are limited to a probable initial recognition threshold when credit losses are measured under GAAP; an entity generally only considers past events and current conditions in measuring the incurred loss. Under the new guidance, the incurred loss impairment methodology in current GAAP is replaced with a methodology that reflects current expected credit losses (CECL). This methodology requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances which applies to assets measured either collectively or individually. The update allows an entity to revert to historical loss information that is reflective of the contractual term (considering the effect of prepayments) for periods that are beyond the time frame for which the entity is able to develop reasonable and supportable forecasts. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination (or vintage). The vintage information will be useful for financial statement users to better assess changes in underwriting standards and credit quality trends in asset portfolios over time and the effect of those changes on credit losses. Overall, the update will allow entities the ability to measure expected credit losses without the restriction of incurred or probable losses that exist under current GAAP. For users of the financial statements, the update requires disclosure of decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new authoritative guidance was originally effective for interim and annual periods beginning after December 15, 2019. Effective October 16, 2019, the FASB approved changes to the implementation date of this guidance for some filers. As a small reporting company, as defined by the SEC , our implementation date was delayed from January 1, 2020 to January 1, 2023. Early adoption continues to be permissible under the revised implementation date; currently we have no plans for early adoption. This guidance may have a significant impact on the results of our operations and financial statement disclosures as well as that of the banking industry as a whole. We have invested a considerable amount of effort toward this guidance and will continue to invest considerable effort until our implementation date. A committee was formed and is accountable for timely and accurate adoption of the guidance. A service provider that has focused on the ALLL for more than 10 years and serves hundreds of financial institutions has been engaged to provide us with education, advisory, and software solutions exclusively related to the ACL . We will run parallel processes which will help to ensure we are ready to calculate, review, and report the ACL by the required implementation date. ASU No. 2018-14: “Compensation - Retirement Benefits - Defined Pension Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” In August 2018, ASU No. 2018-14 was issued and provided an updated framework related to defined benefit plans. For employers that sponsor defined benefit pension or other postretirement plans, the update provides disclosure modifications which include the removal of six specific requirements, the addition of two specific requirements and clarification to existing requirements. Disclosure additions include 1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; 2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Clarification items relate to 1) the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets; and 2) the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The new authoritative guidance is effective for fiscal years ending after December 15, 2020, with early adoption permitted, and will likely impact our financial statement disclosures. |
AFS Securities
AFS Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
AFS Securities | AFS Securities The amortized cost and fair value of AFS securities , with gross unrealized gains and losses, are as follows at: March 31, 2020 Amortized Gross Gross Fair States and political subdivisions $ 159,267 $ 3,849 $ — $ 163,116 Auction rate money market preferred 3,200 — 474 2,726 Mortgage-backed securities 122,544 4,010 — 126,554 Collateralized mortgage obligations 110,079 4,714 — 114,793 Total $ 395,090 $ 12,573 $ 474 $ 407,189 December 31, 2019 Amortized Gross Gross Fair States and political subdivisions $ 165,005 $ 4,747 $ — $ 169,752 Auction rate money market preferred 3,200 — 81 3,119 Mortgage-backed securities 139,831 933 560 140,204 Collateralized mortgage obligations 115,944 1,007 187 116,764 Total $ 423,980 $ 6,687 $ 828 $ 429,839 The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2020 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total States and political subdivisions $ 27,544 $ 69,886 $ 38,580 $ 23,257 $ — $ 159,267 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 122,544 122,544 Collateralized mortgage obligations — — — — 110,079 110,079 Total amortized cost $ 27,544 $ 69,886 $ 38,580 $ 23,257 $ 235,823 $ 395,090 Fair value $ 27,616 $ 71,184 $ 39,799 $ 24,517 $ 244,073 $ 407,189 Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities because issuers may have the right to call or prepay obligations. As the auction rate money market preferred investments have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group. A summary of the sales activity of AFS securities was as follows for the three months ended March 31, 2020 . There were no sales of AFS securities for the three months ended March 31, 2019 . March 31 Proceeds from sales of AFS securities $ 26,855 Realized gains (losses) $ 71 Applicable income tax expense (benefit) $ 15 The following information pertains to AFS securities with gross unrealized losses at March 31, 2020 and December 31, 2019 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. There were no AFS securities with gross unrealized losses in a continuous loss position less than twelve months at March 31, 2020 . March 31, 2020 Twelve Months or More Gross Fair Auction rate money market preferred $ 474 $ 2,726 Number of securities in an unrealized loss position: 2 December 31, 2019 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Auction rate money market preferred $ — $ — $ 81 $ 3,119 $ 81 Mortgage-backed securities 3 3,974 557 49,701 560 Collateralized mortgage obligations 43 20,262 144 13,309 187 Total $ 46 $ 24,236 $ 782 $ 66,129 $ 828 Number of securities in an unrealized loss position: 9 19 28 The reduction in unrealized losses on our AFS securities portfolio resulted from recent decreases in intermediate-term and long-term benchmark interest rates. As of March 31, 2020 and December 31, 2019 , we conducted an analysis to determine whether any AFS securities currently in an unrealized loss position should be identified as other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria: • Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate? • Is the investment credit rating below investment grade? • Is it probable the issuer will be unable to pay the amount when due? • Is it more likely than not that we will have to sell the security before recovery of its cost basis? • Has the duration of the investment been extended? Based on our analysis, which included the criteria outlined above and the fact that we have asserted that we do not have to sell any AFS securities in an unrealized loss position, we do not believe that the values of any AFS securities are other-than-temporarily impaired as of March 31, 2020 or December 31, 2019 , with the exception of one municipal bond previously identified which had no activity during the period. |
Loans and ALLL
Loans and ALLL | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and ALLL | Loans and ALLL We grant commercial, agricultural, residential real estate, and consumer loans to customers situated primarily in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties in Michigan. The ability of the borrowers to honor their repayment obligations is often dependent upon the real estate, agricultural, manufacturing, retail, gaming, tourism, health care, higher education, and general economic conditions of this region. Substantially all of our consumer and residential real estate loans are secured by various items of property, while commercial loans are secured primarily by real estate, business assets, and personal guarantees. A portion of loans are unsecured. Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs , the ALLL , and deferred fees or costs. Unless a loan has a nonaccrual status, interest income is accrued over the term of the loan based on the principal amount outstanding. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the appropriate amortization method. The accrual of interest on commercial and agricultural loans, as well as residential real estate loans, is discontinued at the time a loan is 90 days or more past due unless the credit is well-secured and in the process of short-term collection. Upon transferring a loan to nonaccrual status, we perform an evaluation to determine the net realizable value of the underlying collateral. This evaluation is used to help determine if a charge-off is necessary. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on the contractual term of the loan. In all cases, a loan is placed in nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed in nonaccrual status or charged-off , all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL . Loans may be returned to accrual status after six months of continuous performance and achievement of current payment status. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and loans to states and political subdivisions. Repayment of these loans is dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of direct credit exposure to any one borrower to $15,000 . Borrowers with direct credit needs of more than $15,000 may be serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans commonly require loan-to-value limits of 80% or less. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, property, or equipment. Government agency guarantee may be required. Personal guarantees and/or life insurance beneficiary assignments are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we may require annual financial statements, prepare cash flow analyses, and review credit reports. We entered into a mortgage purchase program in 2016 with a financial institution where we participate in advances to mortgage brokers (“advances”). The mortgage brokers originate residential mortgage loans with the intent to sell them on the secondary market. We participate in the advance to the mortgage broker, which is secured by the underlying mortgage loan, until it is ultimately sold on the secondary market. As such, the average life of each participated advance is approximately 20 - 30 days. Funds from the sale of the loan are used to pay off our participation in the advance to the mortgage broker. We classify these advances as commercial loans and include the outstanding balance in commercial loans on our consolidated balance sheets. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $50,000 . The difference between our outstanding balance and the maximum outstanding aggregate amount is classified as “ Unfunded commitments under lines of credit ” in the “ Contractual Obligations and Loan Commitments ” section of the Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, our liquidity needs, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac . Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 100% of the lower of the appraised value of the property or the purchase price. Private mortgage insurance is typically required on loans with loan-to-value ratios in excess of 80% unless the loan qualifies for government guarantees. Underwriting criteria for originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40% of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and are reviewed for appropriateness. Generally, mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system; loans in excess of $1,000 require the approval of our Internal Loan Committee, the Executive Loan Committee, the Board of Directors’ Loan Committee, or the Board of Directors. Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 15 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Full or partial loan balances are charged against the ALLL when we believe uncollectability is probable. Subsequent recoveries, if any, are credited to the ALLL . The ALLL is evaluated on a regular basis for appropriateness. Our periodic review of the collectability of a loan considers historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The primary factors behind the determination of the level of the ALLL are specific allocations for impaired loans, historical loss percentages, as well as unallocated components. Specific allocations for impaired loans are primarily determined based on the difference between the loan’s outstanding balance and the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Historical loss allocations are calculated at the loan class and segment levels based on a migration analysis of the loan portfolio, with the exception of advances to mortgage brokers, over the preceding five years. With no historical losses on advances to mortgage brokers, there is no allocation related to this portfolio. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. While we have experienced fluctuations in credit quality indicators in recent periods, credit quality remained strong at March 31, 2020 . However, the COVID-19 pandemic has led to the temporary closure of businesses throughout the communities in which we serve, which has also led to increased unemployment. Therefore, we increased the ALLL during the quarter to account for inherent risk within the loan portfolio as of March 31, 2020 . We continue to monitor the economic impact from COVID-19 as it relates to credit risk to ensure the ALLL is appropriate. A summary of the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended March 31, 2020 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2020 $ 1,914 $ 634 $ 2,047 $ 922 $ 2,422 $ 7,939 Charge-offs (4 ) (16 ) (15 ) (123 ) — (158 ) Recoveries 22 33 27 46 — 128 Provision for loan losses 443 (161 ) (342 ) 116 732 788 March 31, 2020 $ 2,375 $ 490 $ 1,717 $ 961 $ 3,154 $ 8,697 Allowance for Loan Losses and Recorded Investment in Loans March 31, 2020 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 179 $ 78 $ 1,052 $ — $ — $ 1,309 Collectively evaluated for impairment 2,196 412 665 961 3,154 7,388 Total $ 2,375 $ 490 $ 1,717 $ 961 $ 3,154 $ 8,697 Loans Individually evaluated for impairment $ 8,598 $ 13,660 $ 5,374 $ 3 $ 27,635 Collectively evaluated for impairment 686,680 95,196 296,642 69,783 1,148,301 Total $ 695,278 $ 108,856 $ 302,016 $ 69,786 $ 1,175,936 Allowance for Loan Losses Three Months Ended March 31, 2019 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2019 $ 2,563 $ 775 $ 1,992 $ 857 $ 2,188 $ 8,375 Charge-offs (8 ) — (2 ) (128 ) — (138 ) Recoveries 51 1 27 48 — 127 Provision for loan losses (358 ) (1 ) 288 114 (9 ) 34 March 31, 2019 $ 2,248 $ 775 $ 2,305 $ 891 $ 2,179 $ 8,398 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2019 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 15 $ 26 $ 1,073 $ — $ — $ 1,114 Collectively evaluated for impairment 1,899 608 974 922 2,422 6,825 Total $ 1,914 $ 634 $ 2,047 $ 922 $ 2,422 $ 7,939 Loans Individually evaluated for impairment $ 7,865 $ 14,840 $ 5,486 $ — $ 28,191 Collectively evaluated for impairment 693,076 102,080 293,083 70,140 1,158,379 Total $ 700,941 $ 116,920 $ 298,569 $ 70,140 $ 1,186,570 The following tables display the internally assigned credit risk ratings for commercial and agricultural credit exposures as of: March 31, 2020 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 10 $ — $ 10 $ — $ — $ — $ 10 2 - High quality 4,326 10,760 — 15,086 894 13 907 15,993 3 - High satisfactory 93,092 43,940 34,416 171,448 16,835 4,976 21,811 193,259 4 - Low satisfactory 381,334 92,789 — 474,123 42,602 19,671 62,273 536,396 5 - Special mention 15,404 3,530 — 18,934 5,601 2,164 7,765 26,699 6 - Substandard 7,177 6,857 — 14,034 8,236 3,258 11,494 25,528 7 - Vulnerable 29 1,339 — 1,368 2,839 1,579 4,418 5,786 8 - Doubtful 275 — — 275 188 — 188 463 9 - Loss — — — — — — — — Total $ 501,637 $ 159,225 $ 34,416 $ 695,278 $ 77,195 $ 31,661 $ 108,856 $ 804,134 December 31, 2019 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 390 $ — $ 390 $ — $ — $ — $ 390 2 - High quality 2,582 8,844 — 11,426 1,452 99 1,551 12,977 3 - High satisfactory 109,737 42,858 35,523 188,118 16,765 6,769 23,534 211,652 4 - Low satisfactory 377,198 94,847 — 472,045 42,798 20,861 63,659 535,704 5 - Special mention 15,372 3,470 — 18,842 7,165 3,754 10,919 29,761 6 - Substandard 4,874 3,625 — 8,499 9,136 3,836 12,972 21,471 7 - Vulnerable 390 1,231 — 1,621 2,711 1,574 4,285 5,906 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 510,153 $ 155,265 $ 35,523 $ 700,941 $ 80,027 $ 36,893 $ 116,920 $ 817,861 Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are as follows: 1. EXCELLENT – Substantially Risk Free Credit has strong financial condition and solid earnings history, characterized by: • High liquidity, strong cash flow, low leverage. • Unquestioned ability to meet all obligations when due. • Experienced management, with management succession in place. • Secured by cash. 2. HIGH QUALITY – Limited Risk Credit with sound financial condition and a positive trend in earnings supplemented by: • Favorable liquidity and leverage ratios. • Ability to meet all obligations when due. • Management with successful track record. • Steady and satisfactory earnings history. • If loan is secured, collateral is of high quality and readily marketable. • Access to alternative financing. • Well defined primary and secondary source of repayment. • If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. 3. HIGH SATISFACTORY – Reasonable Risk Credit with satisfactory financial condition and further characterized by: • Working capital adequate to support operations. • Cash flow sufficient to pay debts as scheduled. • Management experience and depth appear favorable. • Loan performing according to terms. • If loan is secured, collateral is acceptable and loan is fully protected. 4. LOW SATISFACTORY – Acceptable Risk Credit with bankable risks, although some signs of weaknesses are shown: • Would include most start-up businesses. • Occasional instances of trade slowness or repayment delinquency – may have been 10 - 30 days slow within the past year. • Management’s abilities are apparent yet unproven. • Weakness in primary source of repayment with adequate secondary source of repayment. • Loan structure generally in accordance with policy. • If secured, loan collateral coverage is marginal. To be classified as less than satisfactory, only one of the following criteria must be met. 5. SPECIAL MENTION – Criticized Credit constitutes an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific loan: • Downward trend in sales, profit levels, and margins. • Impaired working capital position. • Cash flow is strained in order to meet debt repayment. • Loan delinquency ( 30 - 60 days) and overdrafts may occur. • Shrinking equity cushion. • Diminishing primary source of repayment and questionable secondary source. • Management abilities are questionable. • Weak industry conditions. • Litigation pending against the borrower. • Loan may need to be restructured to improve collateral position or reduce payments. • Collateral or guaranty offers limited protection. • Negative debt service coverage, however the credit is well collateralized and payments are current. 6. SUBSTANDARD – Classified Credit is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. There is a distinct possibility we will implement collection procedures if the loan deficiencies are not corrected. Any commercial loan placed in nonaccrual status will be rated “7” or worse. In addition, the following characteristics may apply: • Sustained losses have severely eroded the equity and cash flow. • Deteriorating liquidity. • Serious management problems or internal fraud. • Original repayment terms liberalized. • Likelihood of bankruptcy. • Inability to access other funding sources. • Reliance on secondary source of repayment. • Litigation filed against borrower. • Interest non-accrual may be warranted. • Collateral provides little or no value. • Requires excessive attention of the loan officer. • Borrower is uncooperative with loan officer. 7. VULNERABLE – Classified Credit is considered “Substandard” and warrants placing in nonaccrual status. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply: • Insufficient cash flow to service debt. • Minimal or no payments being received. • Limited options available to avoid the collection process. • Transition status, expect action will take place to collect loan without immediate progress being made. 8. DOUBTFUL – Workout Credit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply: • Normal operations are severely diminished or have ceased. • Seriously impaired cash flow. • Original repayment terms materially altered. • Secondary source of repayment is inadequate. • Survivability as a “going concern” is impossible. • Collection process has begun. • Bankruptcy petition has been filed. • Judgments have been filed. • Portion of the loan balance has been charged-off . 9. LOSS – Charge-off Credit is considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification is for charged-off loans but does not mean that the asset has absolutely no recovery or salvage value. These loans are further characterized by: • Liquidation or reorganization under Bankruptcy, with poor prospects of collection. • Fraudulently overstated assets and/or earnings. • Collateral has marginal or no value. • Debtor cannot be located. • Over 120 days delinquent. Our primary credit quality indicator for residential real estate and consumer loans is the individual loan’s past due aging. The following tables summarize the past due and current loans for the entire loan portfolio as of: March 31, 2020 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 2,199 $ 94 $ — $ 304 $ 2,597 $ 499,040 $ 501,637 Commercial other 2,135 109 — 1,339 3,583 155,642 159,225 Advances to mortgage brokers — — — — — 34,416 34,416 Total commercial 4,334 203 — 1,643 6,180 689,098 695,278 Agricultural Agricultural real estate 233 — — 3,027 3,260 73,935 77,195 Agricultural other — 31 — 1,579 1,610 30,051 31,661 Total agricultural 233 31 — 4,606 4,870 103,986 108,856 Residential real estate Senior liens 2,472 77 40 576 3,165 258,959 262,124 Junior liens 35 — — — 35 5,509 5,544 Home equity lines of credit 141 — — 85 226 34,122 34,348 Total residential real estate 2,648 77 40 661 3,426 298,590 302,016 Consumer Secured 356 — — — 356 66,105 66,461 Unsecured 7 — — 3 10 3,315 3,325 Total consumer 363 — — 3 366 69,420 69,786 Total $ 7,578 $ 311 $ 40 $ 6,913 $ 14,842 $ 1,161,094 $ 1,175,936 December 31, 2019 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 139 $ 30 $ — $ 390 $ 559 $ 509,594 $ 510,153 Commercial other 531 156 — 1,231 1,918 153,347 155,265 Advances to mortgage brokers — — — — — 35,523 35,523 Total commercial 670 186 — 1,621 2,477 698,464 700,941 Agricultural Agricultural real estate — — — 2,711 2,711 77,316 80,027 Agricultural other — — — 1,574 1,574 35,319 36,893 Total agricultural — — — 4,285 4,285 112,635 116,920 Residential real estate Senior liens 3,463 258 — 557 4,278 253,894 258,172 Junior liens 65 — — — 65 5,766 5,831 Home equity lines of credit 157 — — 72 229 34,337 34,566 Total residential real estate 3,685 258 — 629 4,572 293,997 298,569 Consumer Secured 68 — — — 68 66,547 66,615 Unsecured 3 — — — 3 3,522 3,525 Total consumer 71 — — — 71 70,069 70,140 Total $ 4,426 $ 444 $ — $ 6,535 $ 11,405 $ 1,175,165 $ 1,186,570 Impaired Loans Loans may be classified as impaired if they meet one or more of the following criteria: 1. There has been a charge-off of its principal balance (in whole or in part); 2. The loan has been classified as a TDR ; or 3. The loan is in nonaccrual status. Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Large groups of smaller-balance, homogeneous residential real estate and consumer loans are collectively evaluated for impairment by comparing the loan’s unpaid principal balance to the present value of expected future cash flows discounted at the loan’s effective interest rate. We do not recognize interest income on impaired loans in nonaccrual status. For impaired loans not classified as nonaccrual , interest income is recognized daily, as earned, according to the terms of the loan agreement and the principal amount outstanding. The following is a summary of impaired loans as of: March 31, 2020 December 31, 2019 Recorded Balance Unpaid Principal Balance Valuation Allowance Recorded Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 1,125 $ 1,367 $ 66 $ 517 $ 635 $ 15 Commercial other 919 919 113 — — — Agricultural real estate 2,247 2,297 70 1,509 1,509 12 Agricultural other 1,355 1,355 8 1,355 1,355 14 Residential real estate senior liens 5,285 5,713 1,052 5,401 5,830 1,073 Total impaired loans with a valuation allowance 10,931 11,651 1,309 8,782 9,329 1,114 Impaired loans without a valuation allowance Commercial real estate 4,162 4,301 4,961 5,224 Commercial other 2,392 2,392 2,387 2,387 Agricultural real estate 7,192 7,192 8,372 8,422 Agricultural other 2,866 2,866 3,604 3,604 Home equity lines of credit 89 389 85 385 Consumer secured 3 3 — — Total impaired loans without a valuation allowance 16,704 17,143 19,409 20,022 Impaired loans Commercial 8,598 8,979 179 7,865 8,246 15 Agricultural 13,660 13,710 78 14,840 14,890 26 Residential real estate 5,374 6,102 1,052 5,486 6,215 1,073 Consumer 3 3 — — — — Total impaired loans $ 27,635 $ 28,794 $ 1,309 $ 28,191 $ 29,351 $ 1,114 The following is a summary of impaired loans for the: Three Months Ended March 31 2020 2019 Average Recorded Balance Interest Income Recognized Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 821 $ 25 $ 3,409 $ 49 Commercial other 460 6 12 — Agricultural real estate 1,878 24 390 6 Agricultural other 1,355 22 44 — Residential real estate senior liens 5,343 55 6,682 68 Residential real estate junior liens — — 12 — Total impaired loans with a valuation allowance 9,857 132 10,549 123 Impaired loans without a valuation allowance Commercial real estate 4,562 59 3,287 53 Commercial other 2,390 15 2,970 21 Agricultural real estate 7,782 59 7,623 7 Agricultural other 3,235 7 6,087 70 Home equity lines of credit 87 6 43 6 Consumer secured 2 — 9 — Total impaired loans without a valuation allowance 18,058 146 20,019 157 Impaired loans Commercial 8,233 105 9,678 123 Agricultural 14,250 112 14,144 83 Residential real estate 5,430 61 6,737 74 Consumer 2 — 9 — Total impaired loans $ 27,915 $ 278 $ 30,568 $ 280 As a result of line of credit agreements with borrowers, we had committed to advance $459 and $175 in additional funds to be disbursed in connection with impaired loans as of March 31, 2020 and December 31, 2019 , respectively. Troubled Debt Restructurings A loan modification is considered to be a TDR when the modification includes terms outside of normal lending practices to a borrower who is experiencing financial difficulties. Typical concessions granted include, but are not limited to: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest only payment structure and delaying principal payments. • Forgiving principal. • Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: • The borrower is currently in default on any of their debt. • The borrower would likely default on any of their debt if the concession is not granted. • The borrower’s cash flow is insufficient to service all of their debt if the concession is not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). The following is a summary of TDRs granted for the: Three Months Ended March 31 2020 2019 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Commercial other 2 $ 963 $ 963 1 $ 147 $ 147 Agricultural other 2 593 593 2 523 523 Residential real estate 2 93 93 — — — Total 6 $ 1,649 $ 1,649 3 $ 670 $ 670 The following is a summary of concessions we granted to borrowers in financial difficulty for the: Three Months Ended March 31 2020 2019 Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Commercial other 1 $ 919 1 $ 44 — $ — 1 $ 147 Agricultural other — — 2 593 — — 2 523 Residential real estate — — 2 93 — — — — Total 1 $ 919 5 $ 730 — $ — 3 $ 670 We did not restructure any loans by forgiving principal or accrued interest in the three -month periods ended March 31, 2020 or 2019 . Based on our historical loss experience, losses associated with TDRs are not significantly different than other impaired loans within the same loan segment. As such, TDRs , including TDRs that have been modified in the past 12 months that subsequently defaulted, are analyzed in the same manner as other impaired loans within their respective loan segment. We had no loans that defaulted in the three -month periods ended March 31, 2020 and March 31, 2019 which were modified within 12 months prior to the default date. The following is a summary of TDR loan balances as of: March 31 December 31 TDRs $ 24,117 $ 24,737 Measures we have taken to assist our customers in connection with the COVID-19 pandemic include loan programs that provide short-term payment relief. Under these programs, borrowers who were in good standing as of March 1, 2020 can elect to defer full or partial payments for a 90-day period. Bank regulators issued a statement on March 22, 2020, and a revised statement on April 7, 2020, which provides confirmation that short-term loan modifications made on a good faith basis in response to COVID-19 to borrowers with a current payment status are not categorized as TDRs . |
Borrowed Funds
Borrowed Funds | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds consist of the following obligations as of: March 31, 2020 December 31, 2019 Amount Rate Amount Rate FHLB advances $ 235,000 2.34 % $ 245,000 2.32 % Securities sold under agreements to repurchase without stated maturity dates 28,171 0.09 % 30,999 0.09 % Total $ 263,171 2.10 % $ 275,999 2.07 % FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans, specific AFS securities , and FHLB stock. The following table lists the maturities and weighted average interest rates of FHLB advances as of: March 31, 2020 December 31, 2019 Amount Rate Amount Rate Fixed rate due 2020 $ 45,000 2.28 % $ 55,000 2.18 % Fixed rate due 2021 50,000 1.91 % 50,000 1.91 % Variable rate due 2021 (1) 10,000 1.99 % 10,000 2.20 % Fixed rate due 2022 20,000 1.97 % 20,000 1.97 % Fixed rate due 2023 45,000 2.97 % 45,000 2.97 % Fixed rate due 2024 55,000 2.68 % 55,000 2.68 % Fixed rate due 2026 10,000 1.17 % 10,000 1.17 % Total $ 235,000 2.34 % $ 245,000 2.32 % (1) Hedged advance (see “ Derivative Instruments ” section below) Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. The securities underlying the agreements have a carrying value and a fair value of $28,171 and $31,020 at March 31, 2020 and December 31, 2019 , respectively. Such securities remain under our control. We may be required to provide additional collateral based on the fair value of underlying securities. Securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances generally mature within one to four days from the transaction date. We had no FRB Discount Window advances during the three -month periods ended March 31, 2020 and March 31, 2019 . A summary of securities sold under repurchase agreements without stated maturity dates and federal funds purchased was as follows for the: Three Months Ended March 31 2020 2019 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 32,236 $ 30,923 0.10 % $ 37,441 $ 34,987 0.10 % Federal funds purchased — — — % 1,860 458 2.65 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: March 31 December 31 Pledged to secure borrowed funds $ 364,985 $ 368,310 Pledged to secure repurchase agreements 28,171 31,020 Pledged for public deposits and for other purposes necessary or required by law 57,129 59,537 Total $ 450,285 $ 458,867 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: March 31 December 31 States and political subdivisions $ 12,002 $ 31,020 Mortgage-backed securities 9,492 — Collateralized mortgage obligations 6,677 — Total $ 28,171 $ 31,020 AFS securities pledged to repurchase agreements are monitored to ensure the appropriate level is collateralized. In the event of maturities, calls, significant principal repayments, or significant decline in market values, we have an adequate level of AFS securities to pledge to satisfy required collateral. As of March 31, 2020 , we had the ability to borrow up to an additional $140,121 , based on assets pledged as collateral. We had no investment securities that were restricted to be pledged for specific purposes. Derivative Instruments We use interest rate swaps to manage exposure to interest rate risk and variability in cash flows. The interest rate swaps, associated with our variable rate borrowings, are designated upon inception as cash flow hedges of forecasted interest payments. We have entered into LIBOR -based interest rate swaps that involve the receipt of variable amounts in exchange for fixed rate payments, in effect converting variable rate debt to fixed rate debt. Cash flow hedges are assessed for effectiveness using regression analysis. The effective portion of changes in fair value are recorded in OCI and subsequently reclassified into interest expense in the same period in which the related interest on the variable rate borrowings affects earnings. In the event that a portion of the changes in fair value were determined to be ineffective, the ineffective amount would be recorded in earnings. The following tables provide information on derivatives related to variable rate borrowings as of: March 31, 2020 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 1.1 $ 10,000 Other liabilities $ (69 ) December 31, 2019 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 1.3 $ 10,000 Other assets $ 67 Derivatives contain an element of credit risk which arises from the possibility that we will incur a loss as a result of a counterparty failing to meet its contractual obligations. Credit risk is minimized through counterparty collateral, transaction limits and monitoring procedures. We also manage dealer credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements, and the use of counterparty limits. We do not anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. |
Other Noninterest Expenses
Other Noninterest Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Expenses | Other Noninterest Expenses A summary of expenses included in other noninterest expenses is as follows for the: Three Months Ended 2020 2019 Audit, consulting, and legal fees $ 433 $ 453 Donations and community relations 330 140 ATM and debit card fees 323 248 Marketing costs 203 142 Memberships and subscriptions 199 167 Director fees 182 207 Loan underwriting fees 166 316 FDIC insurance premiums 156 170 Postage and freight 131 129 Education and travel 91 157 All other 534 525 Total other noninterest expenses $ 2,748 $ 2,654 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of income before federal income tax expense is as follows for the: Three Months Ended 2020 2019 Income taxes at statutory rate $ 686 $ 807 Effect of nontaxable income Interest income on tax exempt municipal securities (203 ) (244 ) Earnings on corporate owned life insurance policies (148 ) (36 ) Other (4 ) (4 ) Total effect of nontaxable income (355 ) (284 ) Effect of nondeductible expenses 4 6 Effect of tax credits (132 ) (180 ) Federal income tax expense $ 203 $ 349 |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Common Share | Computation of Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan . Earnings per common share have been computed based on the following for the: Three Months Ended 2020 2019 Average number of common shares outstanding for basic calculation 7,892,421 7,888,885 Average potential effect of common shares in the Directors Plan (1) 163,186 199,456 Average number of common shares outstanding used to calculate diluted earnings per common share 8,055,607 8,088,341 Net income $ 3,064 $ 3,496 Earnings per common share Basic $ 0.39 $ 0.44 Diluted $ 0.38 $ 0.43 (1) Exclusive of shares held in the Rabbi Trust |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table summarizes the changes in AOCI by component for the: Three Months Ended March 31 2020 2019 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 4,612 $ 54 $ (2,695 ) $ 1,971 $ (5,200 ) $ 256 $ (2,741 ) $ (7,685 ) OCI before reclassifications 6,311 (136 ) — 6,175 5,954 (81 ) — 5,873 Amounts reclassified from AOCI (71 ) — — (71 ) — — — — Subtotal 6,240 (136 ) — 6,104 5,954 (81 ) — 5,873 Tax effect (1,393 ) 28 — (1,365 ) (1,195 ) 17 — (1,178 ) OCI, net of tax 4,847 (108 ) — 4,739 4,759 (64 ) — 4,695 Balance, $ 9,459 $ (54 ) $ (2,695 ) $ 6,710 $ (441 ) $ 192 $ (2,741 ) $ (2,990 ) Included in OCI for the three -month periods ended March 31, 2020 and March 31, 2019 are changes in unrealized gains and losses related to auction rate money market preferred stocks. These investments, for federal income tax purposes, have no deferred federal income taxes related to unrealized gains or losses given the nature of the investments. A summary of the components of unrealized gains on AFS securities included in OCI follows for the: Three Months Ended March 31 2020 2019 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Unrealized gains (losses) arising during the period $ (393 ) $ 6,704 $ 6,311 $ 265 $ 5,689 $ 5,954 Reclassification adjustment for net (gains) losses included in net income — (71 ) (71 ) — — — Net unrealized gains (losses) (393 ) 6,633 6,240 265 5,689 5,954 Tax effect — (1,393 ) (1,393 ) — (1,195 ) (1,195 ) Unrealized gains (losses), net of tax $ (393 ) $ 5,240 $ 4,847 $ 265 $ 4,494 $ 4,759 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. Generally we believe our assets and liabilities classified as Level 1 or Level 2 approximate an exit price notion. Following is a description of the valuation methodologies, key inputs, and an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. AFS securities : AFS securities are recorded at fair value on a recurring basis. Level 1 fair value measurement is based upon quoted prices for identical instruments. Level 2 fair value measurement is based upon quoted prices for similar instruments. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss and liquidity assumptions. The values for Level 1 and Level 2 investment securities are generally obtained from an independent third party. On a quarterly basis, we compare the values provided to alternative pricing sources. Loans : We do not record loans at fair value on a recurring basis. However, some loans are classified as impaired and a specific allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will be significantly different than the contractual terms of the original loan agreement are considered impaired. Once a loan is identified as impaired, we measure the estimated impairment. The fair value of impaired loans is estimated using one of several methods, including the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. We review the net realizable values of the underlying collateral for collateral dependent impaired loans on at least a quarterly basis for all loan types. To determine the collateral value, we utilize independent appraisals, broker price opinions, or internal evaluations. We review these valuations to determine whether an additional discount should be applied given the age of market information that may have been considered as well as other factors such as costs to sell an asset if it is determined that the collateral will be liquidated in connection with the ultimate settlement of the loan. We use these valuations to determine if any specific reserves or charge-offs are necessary. We may obtain new valuations in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. The following tables list the quantitative fair value information about impaired loans as of: March 31, 2020 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 23% Equipment 20% - 40% 31% Discounted value $18,778 Cash crop inventory 40% 40% Livestock 30% 30% Other inventory 50% 50% Accounts receivable 25% - 50% 28% December 31, 2019 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 22% Equipment 20% - 40% 32% Discounted value $19,135 Cash crop inventory 40% 40% Livestock 30% 30% Other inventory 50% 50% Accounts receivable 25% - 50% 28% Collateral discount rates may have ranges to accommodate differences in the age of the independent appraisal, broker price opinion, or internal evaluation. Derivative instruments: Derivative instruments, consisting solely of interest rate swaps, are recorded at fair value on a recurring basis. Derivatives qualifying as cash flow hedges, when highly effective, are reported at fair value in other assets or other liabilities on our Consolidated Balance Sheets with changes in value recorded in OCI. Should the hedge no longer be considered effective, the ineffective portion of the change in fair value is recorded directly in earnings in the period in which the change occurs. The fair value of a derivative is determined by quoted market prices and model-based valuation techniques. As such, we classify derivative instruments as Level 2. OMSR: OMSR (which are included in other assets) are subject to impairment testing. To test for impairment, we utilize a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and discount rates. If the valuation model reflects a value less than the carrying value, OMSR are adjusted to fair value through a valuation allowance as determined by the model. As such, we classify OMSR subject to nonrecurring fair value adjustments as Level 2. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. Estimated Fair Values of Financial Instruments Not Recorded at Fair Value in their Entirety on a Recurring Basis Disclosure of the estimated fair values of financial instruments, which differ from carrying values, often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of: March 31, 2020 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 96,751 $ 96,751 $ 96,751 $ — $ — Mortgage loans AFS 1,228 1,242 — 1,242 — Gross loans 1,175,936 1,172,598 — — 1,172,598 Less allowance for loan and lease losses 8,697 8,697 — — 8,697 Net loans 1,167,239 1,163,901 — — 1,163,901 Accrued interest receivable 7,022 7,022 7,022 — — Equity securities without readily determinable fair values (1) 21,535 N/A — — — OMSR 2,003 2,003 — 2,003 — LIABILITIES Deposits without stated maturities 922,023 922,023 922,023 — — Deposits with stated maturities 400,060 406,330 — 406,330 — Borrowed funds 263,171 269,968 — 269,968 — Accrued interest payable 845 845 845 — — December 31, 2019 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 60,572 $ 60,572 $ 60,572 $ — $ — Mortgage loans AFS 904 925 — 925 — Gross loans 1,186,570 1,170,370 — — 1,170,370 Less allowance for loan and lease losses 7,939 7,939 — — 7,939 Net loans 1,178,631 1,162,431 — — 1,162,431 Accrued interest receivable 6,501 6,501 6,501 — — Equity securities without readily determinable fair values (1) 21,629 N/A — — — OMSR 2,264 2,264 — 2,264 — LIABILITIES Deposits without stated maturities 906,232 906,232 906,232 — — Deposits with stated maturities 407,619 409,600 — 409,600 — Borrowed funds 275,999 278,761 — 278,761 — Accrued interest payable 860 860 860 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. Financial Instruments Recorded at Fair Value The table below presents the recorded amount of assets and liabilities measured at fair value on: March 31, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities States and political subdivisions $ 163,116 $ — $ 163,116 $ — $ 169,752 $ — $ 169,752 $ — Auction rate money market preferred 2,726 — 2,726 — 3,119 — 3,119 — Mortgage-backed securities 126,554 — 126,554 — 140,204 — 140,204 — Collateralized mortgage obligations 114,793 — 114,793 — 116,764 — 116,764 — Total AFS securities 407,189 — 407,189 — 429,839 — 429,839 — Derivative instruments 69 — 69 — 67 — 67 — Nonrecurring items Impaired loans (net of the ALLL) 18,778 — — 18,778 19,135 — — 19,135 OMSR 2,003 — 2,003 — 2,264 — 2,264 — Total $ 428,039 $ — $ 409,261 $ 18,778 $ 451,305 $ — $ 432,170 $ 19,135 Percent of assets and liabilities measured at fair value — % 95.61 % 4.39 % — % 95.76 % 4.24 % We recorded an impairment related to OMSR of $245 and $0 through earnings for the three months ended March 31, 2020 and March 31, 2019 . We had no other assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis or nonrecurring basis, as of March 31, 2020 . Further, we had no unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at the end of the reporting period. |
Parent Company Only Financial I
Parent Company Only Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Information | Parent Company Only Financial Information Interim Condensed Balance Sheets March 31 December 31 ASSETS Cash on deposit at the Bank $ 216 $ 1,360 Investments in subsidiaries 163,889 157,415 Premises and equipment 1,528 1,539 Other assets 49,892 49,887 TOTAL ASSETS $ 215,525 $ 210,201 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 27 $ 19 Shareholders' equity 215,498 210,182 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 215,525 $ 210,201 Interim Condensed Statements of Income Three Months Ended 2020 2019 Income Dividends from subsidiaries $ 1,750 $ 1,000 Interest income 1 2 Other income (loss) 1 (19 ) Total income 1,752 983 Expenses Occupancy and equipment 15 15 Audit, consulting, and legal fees 132 130 Director fees 94 98 Other 293 290 Total expenses 534 533 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,218 450 Federal income tax benefit 112 115 Income before equity in undistributed earnings of subsidiaries 1,330 565 Undistributed earnings of subsidiaries 1,734 2,931 Net income $ 3,064 $ 3,496 Interim Condensed Statements of Cash Flows Three Months Ended 2020 2019 Operating activities Net income $ 3,064 $ 3,496 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (1,734 ) (2,931 ) Undistributed earnings of equity securities without readily determinable fair values 94 57 Share-based payment awards under equity compensation plan 123 131 Depreciation 11 11 Changes in operating assets and liabilities which provided (used) cash Other assets (100 ) 26 Other liabilities 8 800 Net cash provided by (used in) operating activities 1,466 1,590 Investing activities - none Financing activities Cash dividends paid on common stock (2,122 ) (2,043 ) Proceeds from the issuance of common stock 1,330 1,433 Common stock repurchased (1,168 ) (632 ) Common stock purchased for deferred compensation obligations (650 ) (186 ) Net cash provided by (used in) financing activities (2,610 ) (1,428 ) Increase (decrease) in cash and cash equivalents (1,144 ) 162 Cash and cash equivalents at beginning of period 1,360 2,499 Cash and cash equivalents at end of period $ 216 $ 2,661 |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments Our reportable segments are based on legal entities that account for at least 10% of net operating results. The Bank as of March 31, 2020 and December 31, 2019 and for the three -month periods ended March 31, 2020 and March 31, 2019 , represent approximately 90% or more of our consolidated total assets and operating results. As such, no additional segment reporting is presented. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | As used in these notes, as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations , references to the “Corporation”, “Isabella”, “we”, “our”, “us”, and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiary. References to Isabella Bank or the “Bank” refer to Isabella Bank Corporation ’s subsidiary, Isabella Bank . |
Basis of Accounting | The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three -month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2019 . |
Earnings Per Share | Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan . |
Available-for-sale Securities | As of March 31, 2020 and December 31, 2019 , we conducted an analysis to determine whether any AFS securities currently in an unrealized loss position should be identified as other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria: • Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate? • Is the investment credit rating below investment grade? • Is it probable the issuer will be unable to pay the amount when due? • Is it more likely than not that we will have to sell the security before recovery of its cost basis? • Has the duration of the investment been extended? |
Nonaccrual Loan Status | The accrual of interest on commercial and agricultural loans, as well as residential real estate loans, is discontinued at the time a loan is 90 days or more past due unless the credit is well-secured and in the process of short-term collection. Upon transferring a loan to nonaccrual status, we perform an evaluation to determine the net realizable value of the underlying collateral. This evaluation is used to help determine if a charge-off is necessary. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on the contractual term of the loan. In all cases, a loan is placed in nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed in nonaccrual status or charged-off , all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL . Loans may be returned to accrual status after six months of continuous performance and achievement of current payment status. |
Loans Receivable | Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs , the ALLL , and deferred fees or costs. Unless a loan has a nonaccrual status, interest income is accrued over the term of the loan based on the principal amount outstanding. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the appropriate amortization method. Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, advances to mortgage brokers, farmland and agricultural production, and loans to states and political subdivisions. Repayment of these loans is dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of direct credit exposure to any one borrower to $15,000 . Borrowers with direct credit needs of more than $15,000 may be serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans commonly require loan-to-value limits of 80% or less. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, property, or equipment. Government agency guarantee may be required. Personal guarantees and/or life insurance beneficiary assignments are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we may require annual financial statements, prepare cash flow analyses, and review credit reports. We entered into a mortgage purchase program in 2016 with a financial institution where we participate in advances to mortgage brokers (“advances”). The mortgage brokers originate residential mortgage loans with the intent to sell them on the secondary market. We participate in the advance to the mortgage broker, which is secured by the underlying mortgage loan, until it is ultimately sold on the secondary market. As such, the average life of each participated advance is approximately 20 - 30 days. Funds from the sale of the loan are used to pay off our participation in the advance to the mortgage broker. We classify these advances as commercial loans and include the outstanding balance in commercial loans on our consolidated balance sheets. Under the participation agreement, we committed to a maximum outstanding aggregate amount of $50,000 . The difference between our outstanding balance and the maximum outstanding aggregate amount is classified as “ Unfunded commitments under lines of credit ” in the “ Contractual Obligations and Loan Commitments ” section of the Management's Discussion and Analysis of Financial Condition and Results of Operations of this report. We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which have amortization periods up to a maximum of 30 years. We consider the anticipated direction of interest rates, balance sheet duration, the sensitivity of our balance sheet to changes in interest rates, our liquidity needs, and overall loan demand to determine whether or not to sell fixed rate loans to Freddie Mac . Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 100% of the lower of the appraised value of the property or the purchase price. Private mortgage insurance is typically required on loans with loan-to-value ratios in excess of 80% unless the loan qualifies for government guarantees. Underwriting criteria for originated residential real estate loans generally include: • Evaluation of the borrower’s ability to make monthly payments. • Evaluation of the value of the property securing the loan. • Ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income. • Ensuring all debt servicing does not exceed 40% of income. • Verification of acceptable credit reports. • Verification of employment, income, and financial information. Appraisals are performed by independent appraisers and are reviewed for appropriateness. Generally, mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market underwriting system; loans in excess of $1,000 require the approval of our Internal Loan Committee, the Executive Loan Committee, the Board of Directors’ Loan Committee, or the Board of Directors. Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 15 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. |
Allowance for Loan Losses | The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Full or partial loan balances are charged against the ALLL when we believe uncollectability is probable. Subsequent recoveries, if any, are credited to the ALLL . The ALLL is evaluated on a regular basis for appropriateness. Our periodic review of the collectability of a loan considers historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The primary factors behind the determination of the level of the ALLL are specific allocations for impaired loans, historical loss percentages, as well as unallocated components. Specific allocations for impaired loans are primarily determined based on the difference between the loan’s outstanding balance and the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Historical loss allocations are calculated at the loan class and segment levels based on a migration analysis of the loan portfolio, with the exception of advances to mortgage brokers, over the preceding five years. With no historical losses on advances to mortgage brokers, there is no allocation related to this portfolio. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. |
Internal Credit Risk Ratings | Internally assigned credit risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned credit risk ratings for commercial and agricultural loans are as follows: 1. EXCELLENT – Substantially Risk Free Credit has strong financial condition and solid earnings history, characterized by: • High liquidity, strong cash flow, low leverage. • Unquestioned ability to meet all obligations when due. • Experienced management, with management succession in place. • Secured by cash. 2. HIGH QUALITY – Limited Risk Credit with sound financial condition and a positive trend in earnings supplemented by: • Favorable liquidity and leverage ratios. • Ability to meet all obligations when due. • Management with successful track record. • Steady and satisfactory earnings history. • If loan is secured, collateral is of high quality and readily marketable. • Access to alternative financing. • Well defined primary and secondary source of repayment. • If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. 3. HIGH SATISFACTORY – Reasonable Risk Credit with satisfactory financial condition and further characterized by: • Working capital adequate to support operations. • Cash flow sufficient to pay debts as scheduled. • Management experience and depth appear favorable. • Loan performing according to terms. • If loan is secured, collateral is acceptable and loan is fully protected. 4. LOW SATISFACTORY – Acceptable Risk Credit with bankable risks, although some signs of weaknesses are shown: • Would include most start-up businesses. • Occasional instances of trade slowness or repayment delinquency – may have been 10 - 30 days slow within the past year. • Management’s abilities are apparent yet unproven. • Weakness in primary source of repayment with adequate secondary source of repayment. • Loan structure generally in accordance with policy. • If secured, loan collateral coverage is marginal. To be classified as less than satisfactory, only one of the following criteria must be met. 5. SPECIAL MENTION – Criticized Credit constitutes an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific loan: • Downward trend in sales, profit levels, and margins. • Impaired working capital position. • Cash flow is strained in order to meet debt repayment. • Loan delinquency ( 30 - 60 days) and overdrafts may occur. • Shrinking equity cushion. • Diminishing primary source of repayment and questionable secondary source. • Management abilities are questionable. • Weak industry conditions. • Litigation pending against the borrower. • Loan may need to be restructured to improve collateral position or reduce payments. • Collateral or guaranty offers limited protection. • Negative debt service coverage, however the credit is well collateralized and payments are current. 6. SUBSTANDARD – Classified Credit is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. There is a distinct possibility we will implement collection procedures if the loan deficiencies are not corrected. Any commercial loan placed in nonaccrual status will be rated “7” or worse. In addition, the following characteristics may apply: • Sustained losses have severely eroded the equity and cash flow. • Deteriorating liquidity. • Serious management problems or internal fraud. • Original repayment terms liberalized. • Likelihood of bankruptcy. • Inability to access other funding sources. • Reliance on secondary source of repayment. • Litigation filed against borrower. • Interest non-accrual may be warranted. • Collateral provides little or no value. • Requires excessive attention of the loan officer. • Borrower is uncooperative with loan officer. 7. VULNERABLE – Classified Credit is considered “Substandard” and warrants placing in nonaccrual status. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply: • Insufficient cash flow to service debt. • Minimal or no payments being received. • Limited options available to avoid the collection process. • Transition status, expect action will take place to collect loan without immediate progress being made. 8. DOUBTFUL – Workout Credit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply: • Normal operations are severely diminished or have ceased. • Seriously impaired cash flow. • Original repayment terms materially altered. • Secondary source of repayment is inadequate. • Survivability as a “going concern” is impossible. • Collection process has begun. • Bankruptcy petition has been filed. • Judgments have been filed. • Portion of the loan balance has been charged-off . 9. LOSS – Charge-off Credit is considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification is for charged-off loans but does not mean that the asset has absolutely no recovery or salvage value. These loans are further characterized by: • Liquidation or reorganization under Bankruptcy, with poor prospects of collection. • Fraudulently overstated assets and/or earnings. • Collateral has marginal or no value. • Debtor cannot be located. • Over 120 days delinquent. |
Impaired Loans | Loans may be classified as impaired if they meet one or more of the following criteria: 1. There has been a charge-off of its principal balance (in whole or in part); 2. The loan has been classified as a TDR ; or 3. The loan is in nonaccrual status. Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, less costs to sell, if the loan is collateral dependent. Large groups of smaller-balance, homogeneous residential real estate and consumer loans are collectively evaluated for impairment by comparing the loan’s unpaid principal balance to the present value of expected future cash flows discounted at the loan’s effective interest rate. We do not recognize interest income on impaired loans in nonaccrual status. For impaired loans not classified as nonaccrual , interest income is recognized daily, as earned, according to the terms of the loan agreement and the principal amount outstanding. |
Troubled Debt Restructurings | A loan modification is considered to be a TDR when the modification includes terms outside of normal lending practices to a borrower who is experiencing financial difficulties. Typical concessions granted include, but are not limited to: • Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. • Extending the amortization period beyond typical lending guidelines for loans with similar risk characteristics. • Agreeing to an interest only payment structure and delaying principal payments. • Forgiving principal. • Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: • The borrower is currently in default on any of their debt. • The borrower would likely default on any of their debt if the concession is not granted. • The borrower’s cash flow is insufficient to service all of their debt if the concession is not granted. • The borrower has declared, or is in the process of declaring, bankruptcy. • The borrower is unlikely to continue as a going concern (if the entity is a business). |
Derivative Instruments | We use interest rate swaps to manage exposure to interest rate risk and variability in cash flows. The interest rate swaps, associated with our variable rate borrowings, are designated upon inception as cash flow hedges of forecasted interest payments. We have entered into LIBOR -based interest rate swaps that involve the receipt of variable amounts in exchange for fixed rate payments, in effect converting variable rate debt to fixed rate debt. Cash flow hedges are assessed for effectiveness using regression analysis. The effective portion of changes in fair value are recorded in OCI and subsequently reclassified into interest expense in the same period in which the related interest on the variable rate borrowings affects earnings. In the event that a portion of the changes in fair value were determined to be ineffective, the ineffective amount would be recorded in earnings. |
Fair Value Measurement, Policy [Policy Text Block] | Under fair value measurement and disclosure authoritative guidance, we group assets and liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value, based on the prioritization of inputs in the valuation techniques. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. Transfers between measurement levels are recognized at the end of reporting periods. Fair value measurement requires the use of an exit price notion which may differ from entrance pricing. Generally we believe our assets and liabilities classified as Level 1 or Level 2 approximate an exit price notion. |
AFS Securities (Tables)
AFS Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair value of available-for-sale securities | The amortized cost and fair value of AFS securities , with gross unrealized gains and losses, are as follows at: March 31, 2020 Amortized Gross Gross Fair States and political subdivisions $ 159,267 $ 3,849 $ — $ 163,116 Auction rate money market preferred 3,200 — 474 2,726 Mortgage-backed securities 122,544 4,010 — 126,554 Collateralized mortgage obligations 110,079 4,714 — 114,793 Total $ 395,090 $ 12,573 $ 474 $ 407,189 December 31, 2019 Amortized Gross Gross Fair States and political subdivisions $ 165,005 $ 4,747 $ — $ 169,752 Auction rate money market preferred 3,200 — 81 3,119 Mortgage-backed securities 139,831 933 560 140,204 Collateralized mortgage obligations 115,944 1,007 187 116,764 Total $ 423,980 $ 6,687 $ 828 $ 429,839 |
Amortized cost and fair value of available-for-sale securities by contractual maturity | The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2020 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total States and political subdivisions $ 27,544 $ 69,886 $ 38,580 $ 23,257 $ — $ 159,267 Auction rate money market preferred — — — — 3,200 3,200 Mortgage-backed securities — — — — 122,544 122,544 Collateralized mortgage obligations — — — — 110,079 110,079 Total amortized cost $ 27,544 $ 69,886 $ 38,580 $ 23,257 $ 235,823 $ 395,090 Fair value $ 27,616 $ 71,184 $ 39,799 $ 24,517 $ 244,073 $ 407,189 |
Schedule of Realized Gain (Loss) [Table Text Block] | A summary of the sales activity of AFS securities was as follows for the three months ended March 31, 2020 . There were no sales of AFS securities for the three months ended March 31, 2019 . March 31 Proceeds from sales of AFS securities $ 26,855 Realized gains (losses) $ 71 Applicable income tax expense (benefit) $ 15 |
Available-for-sale securities with gross unrealized losses | The following information pertains to AFS securities with gross unrealized losses at March 31, 2020 and December 31, 2019 , aggregated by investment category and length of time that individual securities have been in a continuous loss position. There were no AFS securities with gross unrealized losses in a continuous loss position less than twelve months at March 31, 2020 . March 31, 2020 Twelve Months or More Gross Fair Auction rate money market preferred $ 474 $ 2,726 Number of securities in an unrealized loss position: 2 December 31, 2019 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Auction rate money market preferred $ — $ — $ 81 $ 3,119 $ 81 Mortgage-backed securities 3 3,974 557 49,701 560 Collateralized mortgage obligations 43 20,262 144 13,309 187 Total $ 46 $ 24,236 $ 782 $ 66,129 $ 828 Number of securities in an unrealized loss position: 9 19 28 |
Loans and ALLL (Tables)
Loans and ALLL (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of changes in the ALLL and the recorded investment in loans by segments | Allowance for Loan Losses Three Months Ended March 31, 2019 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2019 $ 2,563 $ 775 $ 1,992 $ 857 $ 2,188 $ 8,375 Charge-offs (8 ) — (2 ) (128 ) — (138 ) Recoveries 51 1 27 48 — 127 Provision for loan losses (358 ) (1 ) 288 114 (9 ) 34 March 31, 2019 $ 2,248 $ 775 $ 2,305 $ 891 $ 2,179 $ 8,398 A summary of the ALLL and the recorded investment in loans by segments follows: Allowance for Loan Losses Three Months Ended March 31, 2020 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2020 $ 1,914 $ 634 $ 2,047 $ 922 $ 2,422 $ 7,939 Charge-offs (4 ) (16 ) (15 ) (123 ) — (158 ) Recoveries 22 33 27 46 — 128 Provision for loan losses 443 (161 ) (342 ) 116 732 788 March 31, 2020 $ 2,375 $ 490 $ 1,717 $ 961 $ 3,154 $ 8,697 |
Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans March 31, 2020 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 179 $ 78 $ 1,052 $ — $ — $ 1,309 Collectively evaluated for impairment 2,196 412 665 961 3,154 7,388 Total $ 2,375 $ 490 $ 1,717 $ 961 $ 3,154 $ 8,697 Loans Individually evaluated for impairment $ 8,598 $ 13,660 $ 5,374 $ 3 $ 27,635 Collectively evaluated for impairment 686,680 95,196 296,642 69,783 1,148,301 Total $ 695,278 $ 108,856 $ 302,016 $ 69,786 $ 1,175,936 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2019 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 15 $ 26 $ 1,073 $ — $ — $ 1,114 Collectively evaluated for impairment 1,899 608 974 922 2,422 6,825 Total $ 1,914 $ 634 $ 2,047 $ 922 $ 2,422 $ 7,939 Loans Individually evaluated for impairment $ 7,865 $ 14,840 $ 5,486 $ — $ 28,191 Collectively evaluated for impairment 693,076 102,080 293,083 70,140 1,158,379 Total $ 700,941 $ 116,920 $ 298,569 $ 70,140 $ 1,186,570 |
Credit quality indicators for commercial and agricultural credit exposures | The following tables display the internally assigned credit risk ratings for commercial and agricultural credit exposures as of: March 31, 2020 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 10 $ — $ 10 $ — $ — $ — $ 10 2 - High quality 4,326 10,760 — 15,086 894 13 907 15,993 3 - High satisfactory 93,092 43,940 34,416 171,448 16,835 4,976 21,811 193,259 4 - Low satisfactory 381,334 92,789 — 474,123 42,602 19,671 62,273 536,396 5 - Special mention 15,404 3,530 — 18,934 5,601 2,164 7,765 26,699 6 - Substandard 7,177 6,857 — 14,034 8,236 3,258 11,494 25,528 7 - Vulnerable 29 1,339 — 1,368 2,839 1,579 4,418 5,786 8 - Doubtful 275 — — 275 188 — 188 463 9 - Loss — — — — — — — — Total $ 501,637 $ 159,225 $ 34,416 $ 695,278 $ 77,195 $ 31,661 $ 108,856 $ 804,134 December 31, 2019 Commercial Agricultural Real Estate Other Advances to Mortgage Brokers Total Real Estate Other Total Total Rating 1 - Excellent $ — $ 390 $ — $ 390 $ — $ — $ — $ 390 2 - High quality 2,582 8,844 — 11,426 1,452 99 1,551 12,977 3 - High satisfactory 109,737 42,858 35,523 188,118 16,765 6,769 23,534 211,652 4 - Low satisfactory 377,198 94,847 — 472,045 42,798 20,861 63,659 535,704 5 - Special mention 15,372 3,470 — 18,842 7,165 3,754 10,919 29,761 6 - Substandard 4,874 3,625 — 8,499 9,136 3,836 12,972 21,471 7 - Vulnerable 390 1,231 — 1,621 2,711 1,574 4,285 5,906 8 - Doubtful — — — — — — — — 9 - Loss — — — — — — — — Total $ 510,153 $ 155,265 $ 35,523 $ 700,941 $ 80,027 $ 36,893 $ 116,920 $ 817,861 |
Summary of past due and current loans | The following tables summarize the past due and current loans for the entire loan portfolio as of: March 31, 2020 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 2,199 $ 94 $ — $ 304 $ 2,597 $ 499,040 $ 501,637 Commercial other 2,135 109 — 1,339 3,583 155,642 159,225 Advances to mortgage brokers — — — — — 34,416 34,416 Total commercial 4,334 203 — 1,643 6,180 689,098 695,278 Agricultural Agricultural real estate 233 — — 3,027 3,260 73,935 77,195 Agricultural other — 31 — 1,579 1,610 30,051 31,661 Total agricultural 233 31 — 4,606 4,870 103,986 108,856 Residential real estate Senior liens 2,472 77 40 576 3,165 258,959 262,124 Junior liens 35 — — — 35 5,509 5,544 Home equity lines of credit 141 — — 85 226 34,122 34,348 Total residential real estate 2,648 77 40 661 3,426 298,590 302,016 Consumer Secured 356 — — — 356 66,105 66,461 Unsecured 7 — — 3 10 3,315 3,325 Total consumer 363 — — 3 366 69,420 69,786 Total $ 7,578 $ 311 $ 40 $ 6,913 $ 14,842 $ 1,161,094 $ 1,175,936 December 31, 2019 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 139 $ 30 $ — $ 390 $ 559 $ 509,594 $ 510,153 Commercial other 531 156 — 1,231 1,918 153,347 155,265 Advances to mortgage brokers — — — — — 35,523 35,523 Total commercial 670 186 — 1,621 2,477 698,464 700,941 Agricultural Agricultural real estate — — — 2,711 2,711 77,316 80,027 Agricultural other — — — 1,574 1,574 35,319 36,893 Total agricultural — — — 4,285 4,285 112,635 116,920 Residential real estate Senior liens 3,463 258 — 557 4,278 253,894 258,172 Junior liens 65 — — — 65 5,766 5,831 Home equity lines of credit 157 — — 72 229 34,337 34,566 Total residential real estate 3,685 258 — 629 4,572 293,997 298,569 Consumer Secured 68 — — — 68 66,547 66,615 Unsecured 3 — — — 3 3,522 3,525 Total consumer 71 — — — 71 70,069 70,140 Total $ 4,426 $ 444 $ — $ 6,535 $ 11,405 $ 1,175,165 $ 1,186,570 |
Information pertaining to impaired loans | The following is a summary of impaired loans as of: March 31, 2020 December 31, 2019 Recorded Balance Unpaid Principal Balance Valuation Allowance Recorded Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 1,125 $ 1,367 $ 66 $ 517 $ 635 $ 15 Commercial other 919 919 113 — — — Agricultural real estate 2,247 2,297 70 1,509 1,509 12 Agricultural other 1,355 1,355 8 1,355 1,355 14 Residential real estate senior liens 5,285 5,713 1,052 5,401 5,830 1,073 Total impaired loans with a valuation allowance 10,931 11,651 1,309 8,782 9,329 1,114 Impaired loans without a valuation allowance Commercial real estate 4,162 4,301 4,961 5,224 Commercial other 2,392 2,392 2,387 2,387 Agricultural real estate 7,192 7,192 8,372 8,422 Agricultural other 2,866 2,866 3,604 3,604 Home equity lines of credit 89 389 85 385 Consumer secured 3 3 — — Total impaired loans without a valuation allowance 16,704 17,143 19,409 20,022 Impaired loans Commercial 8,598 8,979 179 7,865 8,246 15 Agricultural 13,660 13,710 78 14,840 14,890 26 Residential real estate 5,374 6,102 1,052 5,486 6,215 1,073 Consumer 3 3 — — — — Total impaired loans $ 27,635 $ 28,794 $ 1,309 $ 28,191 $ 29,351 $ 1,114 The following is a summary of impaired loans for the: Three Months Ended March 31 2020 2019 Average Recorded Balance Interest Income Recognized Average Recorded Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 821 $ 25 $ 3,409 $ 49 Commercial other 460 6 12 — Agricultural real estate 1,878 24 390 6 Agricultural other 1,355 22 44 — Residential real estate senior liens 5,343 55 6,682 68 Residential real estate junior liens — — 12 — Total impaired loans with a valuation allowance 9,857 132 10,549 123 Impaired loans without a valuation allowance Commercial real estate 4,562 59 3,287 53 Commercial other 2,390 15 2,970 21 Agricultural real estate 7,782 59 7,623 7 Agricultural other 3,235 7 6,087 70 Home equity lines of credit 87 6 43 6 Consumer secured 2 — 9 — Total impaired loans without a valuation allowance 18,058 146 20,019 157 Impaired loans Commercial 8,233 105 9,678 123 Agricultural 14,250 112 14,144 83 Residential real estate 5,430 61 6,737 74 Consumer 2 — 9 — Total impaired loans $ 27,915 $ 278 $ 30,568 $ 280 |
Information pertaining to TDR's | The following is a summary of TDR loan balances as of: March 31 December 31 TDRs $ 24,117 $ 24,737 The following is a summary of TDRs granted for the: Three Months Ended March 31 2020 2019 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Commercial other 2 $ 963 $ 963 1 $ 147 $ 147 Agricultural other 2 593 593 2 523 523 Residential real estate 2 93 93 — — — Total 6 $ 1,649 $ 1,649 3 $ 670 $ 670 The following is a summary of concessions we granted to borrowers in financial difficulty for the: Three Months Ended March 31 2020 2019 Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Below Market Interest Rate Below Market Interest Rate and Extension of Amortization Period Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Commercial other 1 $ 919 1 $ 44 — $ — 1 $ 147 Agricultural other — — 2 593 — — 2 523 Residential real estate — — 2 93 — — — — Total 1 $ 919 5 $ 730 — $ — 3 $ 670 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of borrowed funds | Borrowed funds consist of the following obligations as of: March 31, 2020 December 31, 2019 Amount Rate Amount Rate FHLB advances $ 235,000 2.34 % $ 245,000 2.32 % Securities sold under agreements to repurchase without stated maturity dates 28,171 0.09 % 30,999 0.09 % Total $ 263,171 2.10 % $ 275,999 2.07 % |
Federal Home Loan Bank, Advances | The following table lists the maturities and weighted average interest rates of FHLB advances as of: March 31, 2020 December 31, 2019 Amount Rate Amount Rate Fixed rate due 2020 $ 45,000 2.28 % $ 55,000 2.18 % Fixed rate due 2021 50,000 1.91 % 50,000 1.91 % Variable rate due 2021 (1) 10,000 1.99 % 10,000 2.20 % Fixed rate due 2022 20,000 1.97 % 20,000 1.97 % Fixed rate due 2023 45,000 2.97 % 45,000 2.97 % Fixed rate due 2024 55,000 2.68 % 55,000 2.68 % Fixed rate due 2026 10,000 1.17 % 10,000 1.17 % Total $ 235,000 2.34 % $ 245,000 2.32 % (1) Hedged advance (see “ Derivative Instruments ” section below) |
Summary of short term borrowings | A summary of securities sold under repurchase agreements without stated maturity dates and federal funds purchased was as follows for the: Three Months Ended March 31 2020 2019 Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Maximum Month End Balance Average Balance Weighted Average Interest Rate During the Period Securities sold under agreements to repurchase without stated maturity dates $ 32,236 $ 30,923 0.10 % $ 37,441 $ 34,987 0.10 % Federal funds purchased — — — % 1,860 458 2.65 % |
Summary of pledged financial instruments | We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: March 31 December 31 Pledged to secure borrowed funds $ 364,985 $ 368,310 Pledged to secure repurchase agreements 28,171 31,020 Pledged for public deposits and for other purposes necessary or required by law 57,129 59,537 Total $ 450,285 $ 458,867 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: March 31 December 31 States and political subdivisions $ 12,002 $ 31,020 Mortgage-backed securities 9,492 — Collateralized mortgage obligations 6,677 — Total $ 28,171 $ 31,020 |
Schedule of derivative instruments | The following tables provide information on derivatives related to variable rate borrowings as of: March 31, 2020 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 1.1 $ 10,000 Other liabilities $ (69 ) December 31, 2019 Pay Rate Receive Rate Remaining Life (Years) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedging instruments Cash Flow Hedges: Interest rate swaps 1.56 % 3-Month LIBOR 1.3 $ 10,000 Other assets $ 67 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Summary of expenses included in other noninterest expenses | A summary of expenses included in other noninterest expenses is as follows for the: Three Months Ended 2020 2019 Audit, consulting, and legal fees $ 433 $ 453 Donations and community relations 330 140 ATM and debit card fees 323 248 Marketing costs 203 142 Memberships and subscriptions 199 167 Director fees 182 207 Loan underwriting fees 166 316 FDIC insurance premiums 156 170 Postage and freight 131 129 Education and travel 91 157 All other 534 525 Total other noninterest expenses $ 2,748 $ 2,654 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of federal income tax expense | The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of income before federal income tax expense is as follows for the: Three Months Ended 2020 2019 Income taxes at statutory rate $ 686 $ 807 Effect of nontaxable income Interest income on tax exempt municipal securities (203 ) (244 ) Earnings on corporate owned life insurance policies (148 ) (36 ) Other (4 ) (4 ) Total effect of nontaxable income (355 ) (284 ) Effect of nondeductible expenses 4 6 Effect of tax credits (132 ) (180 ) Federal income tax expense $ 203 $ 349 |
Computation of Earnings Per C_2
Computation of Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share | Earnings per common share have been computed based on the following for the: Three Months Ended 2020 2019 Average number of common shares outstanding for basic calculation 7,892,421 7,888,885 Average potential effect of common shares in the Directors Plan (1) 163,186 199,456 Average number of common shares outstanding used to calculate diluted earnings per common share 8,055,607 8,088,341 Net income $ 3,064 $ 3,496 Earnings per common share Basic $ 0.39 $ 0.44 Diluted $ 0.38 $ 0.43 (1) Exclusive of shares held in the Rabbi Trust |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of the components of accumulated other comprehensive income | A summary of the components of unrealized gains on AFS securities included in OCI follows for the: Three Months Ended March 31 2020 2019 Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Auction Rate Money Market Preferred Stocks All Other AFS Securities Total Unrealized gains (losses) arising during the period $ (393 ) $ 6,704 $ 6,311 $ 265 $ 5,689 $ 5,954 Reclassification adjustment for net (gains) losses included in net income — (71 ) (71 ) — — — Net unrealized gains (losses) (393 ) 6,633 6,240 265 5,689 5,954 Tax effect — (1,393 ) (1,393 ) — (1,195 ) (1,195 ) Unrealized gains (losses), net of tax $ (393 ) $ 5,240 $ 4,847 $ 265 $ 4,494 $ 4,759 The following table summarizes the changes in AOCI by component for the: Three Months Ended March 31 2020 2019 Unrealized Unrealized Defined Total Unrealized Unrealized Defined Total Balance, January 1 $ 4,612 $ 54 $ (2,695 ) $ 1,971 $ (5,200 ) $ 256 $ (2,741 ) $ (7,685 ) OCI before reclassifications 6,311 (136 ) — 6,175 5,954 (81 ) — 5,873 Amounts reclassified from AOCI (71 ) — — (71 ) — — — — Subtotal 6,240 (136 ) — 6,104 5,954 (81 ) — 5,873 Tax effect (1,393 ) 28 — (1,365 ) (1,195 ) 17 — (1,178 ) OCI, net of tax 4,847 (108 ) — 4,739 4,759 (64 ) — 4,695 Balance, $ 9,459 $ (54 ) $ (2,695 ) $ 6,710 $ (441 ) $ 192 $ (2,741 ) $ (2,990 ) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Quantitative information about assets measured utilizing Level 3 fair value measurement | The following tables list the quantitative fair value information about impaired loans as of: March 31, 2020 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 23% Equipment 20% - 40% 31% Discounted value $18,778 Cash crop inventory 40% 40% Livestock 30% 30% Other inventory 50% 50% Accounts receivable 25% - 50% 28% December 31, 2019 Valuation Technique Fair Value Unobservable Input Actual Range Weighted Average Discount applied to collateral: Real Estate 20% - 30% 22% Equipment 20% - 40% 32% Discounted value $19,135 Cash crop inventory 40% 40% Livestock 30% 30% Other inventory 50% 50% Accounts receivable 25% - 50% 28% |
Carrying amount and estimated fair value of financial instruments not recorded at fair value | The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of: March 31, 2020 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 96,751 $ 96,751 $ 96,751 $ — $ — Mortgage loans AFS 1,228 1,242 — 1,242 — Gross loans 1,175,936 1,172,598 — — 1,172,598 Less allowance for loan and lease losses 8,697 8,697 — — 8,697 Net loans 1,167,239 1,163,901 — — 1,163,901 Accrued interest receivable 7,022 7,022 7,022 — — Equity securities without readily determinable fair values (1) 21,535 N/A — — — OMSR 2,003 2,003 — 2,003 — LIABILITIES Deposits without stated maturities 922,023 922,023 922,023 — — Deposits with stated maturities 400,060 406,330 — 406,330 — Borrowed funds 263,171 269,968 — 269,968 — Accrued interest payable 845 845 845 — — December 31, 2019 Carrying Estimated Level 1 Level 2 Level 3 ASSETS Cash and cash equivalents $ 60,572 $ 60,572 $ 60,572 $ — $ — Mortgage loans AFS 904 925 — 925 — Gross loans 1,186,570 1,170,370 — — 1,170,370 Less allowance for loan and lease losses 7,939 7,939 — — 7,939 Net loans 1,178,631 1,162,431 — — 1,162,431 Accrued interest receivable 6,501 6,501 6,501 — — Equity securities without readily determinable fair values (1) 21,629 N/A — — — OMSR 2,264 2,264 — 2,264 — LIABILITIES Deposits without stated maturities 906,232 906,232 906,232 — — Deposits with stated maturities 407,619 409,600 — 409,600 — Borrowed funds 275,999 278,761 — 278,761 — Accrued interest payable 860 860 860 — — (1) Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Assets and liabilities measured at fair value | The table below presents the recorded amount of assets and liabilities measured at fair value on: March 31, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Recurring items AFS securities States and political subdivisions $ 163,116 $ — $ 163,116 $ — $ 169,752 $ — $ 169,752 $ — Auction rate money market preferred 2,726 — 2,726 — 3,119 — 3,119 — Mortgage-backed securities 126,554 — 126,554 — 140,204 — 140,204 — Collateralized mortgage obligations 114,793 — 114,793 — 116,764 — 116,764 — Total AFS securities 407,189 — 407,189 — 429,839 — 429,839 — Derivative instruments 69 — 69 — 67 — 67 — Nonrecurring items Impaired loans (net of the ALLL) 18,778 — — 18,778 19,135 — — 19,135 OMSR 2,003 — 2,003 — 2,264 — 2,264 — Total $ 428,039 $ — $ 409,261 $ 18,778 $ 451,305 $ — $ 432,170 $ 19,135 Percent of assets and liabilities measured at fair value — % 95.61 % 4.39 % — % 95.76 % 4.24 % |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Interim Condensed Balance Sheets | Interim Condensed Balance Sheets March 31 December 31 ASSETS Cash on deposit at the Bank $ 216 $ 1,360 Investments in subsidiaries 163,889 157,415 Premises and equipment 1,528 1,539 Other assets 49,892 49,887 TOTAL ASSETS $ 215,525 $ 210,201 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 27 $ 19 Shareholders' equity 215,498 210,182 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 215,525 $ 210,201 |
Interim Condensed Statements of Income | Interim Condensed Statements of Income Three Months Ended 2020 2019 Income Dividends from subsidiaries $ 1,750 $ 1,000 Interest income 1 2 Other income (loss) 1 (19 ) Total income 1,752 983 Expenses Occupancy and equipment 15 15 Audit, consulting, and legal fees 132 130 Director fees 94 98 Other 293 290 Total expenses 534 533 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,218 450 Federal income tax benefit 112 115 Income before equity in undistributed earnings of subsidiaries 1,330 565 Undistributed earnings of subsidiaries 1,734 2,931 Net income $ 3,064 $ 3,496 |
Interim Condensed Statements of Cash Flows | Interim Condensed Statements of Cash Flows Three Months Ended 2020 2019 Operating activities Net income $ 3,064 $ 3,496 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (1,734 ) (2,931 ) Undistributed earnings of equity securities without readily determinable fair values 94 57 Share-based payment awards under equity compensation plan 123 131 Depreciation 11 11 Changes in operating assets and liabilities which provided (used) cash Other assets (100 ) 26 Other liabilities 8 800 Net cash provided by (used in) operating activities 1,466 1,590 Investing activities - none Financing activities Cash dividends paid on common stock (2,122 ) (2,043 ) Proceeds from the issuance of common stock 1,330 1,433 Common stock repurchased (1,168 ) (632 ) Common stock purchased for deferred compensation obligations (650 ) (186 ) Net cash provided by (used in) financing activities (2,610 ) (1,428 ) Increase (decrease) in cash and cash equivalents (1,144 ) 162 Cash and cash equivalents at beginning of period 1,360 2,499 Cash and cash equivalents at end of period $ 216 $ 2,661 |
AFS Securities (Amortized cost
AFS Securities (Amortized cost and fair value of AFS securities, with gross unrealized gains and losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 395,090 | $ 423,980 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 12,573 | 6,687 |
Gross Unrealized Losses | 474 | 828 |
AFS securities | 407,189 | 429,839 |
States and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 159,267 | 165,005 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3,849 | 4,747 |
Gross Unrealized Losses | 0 | 0 |
AFS securities | 163,116 | 169,752 |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,200 | 3,200 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Gross Unrealized Losses | 474 | 81 |
AFS securities | 2,726 | 3,119 |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 122,544 | 139,831 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,010 | 933 |
Gross Unrealized Losses | 0 | 560 |
AFS securities | 126,554 | 140,204 |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 110,079 | 115,944 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,714 | 1,007 |
Gross Unrealized Losses | 0 | 187 |
AFS securities | $ 114,793 | $ 116,764 |
AFS Securities (Amortized cos_2
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | $ 27,544 |
Maturing, After One Year But Within Five Years | 69,886 |
Maturing, After Five Years But Within Ten Years | 38,580 |
Maturing, After Ten Years | 23,257 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 235,823 |
Amortized Cost | 395,090 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less, Fair value | 27,616 |
Maturing, After One Year But Within Five Years, Fair value | 71,184 |
Maturing, After Five Years But Within Ten Years, Fair value | 39,799 |
Maturing, After Ten Years, Fair value | 24,517 |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 244,073 |
Total, Fair value | 407,189 |
States and political subdivisions [Member] | |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 27,544 |
Maturing, After One Year But Within Five Years | 69,886 |
Maturing, After Five Years But Within Ten Years | 38,580 |
Maturing, After Ten Years | 23,257 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 |
Amortized Cost | 159,267 |
Auction rate money market preferred [Member] | |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 0 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 3,200 |
Amortized Cost | 3,200 |
Mortgage-backed securities [Member] | |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 0 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 122,544 |
Amortized Cost | 122,544 |
Collateralized mortgage obligations [Member] | |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |
Maturing, Due in One Year or Less | 0 |
Maturing, After One Year But Within Five Years | 0 |
Maturing, After Five Years But Within Ten Years | 0 |
Maturing, After Ten Years | 0 |
Securities With Variable Monthly Payments or Noncontractual Maturities | 110,079 |
Amortized Cost | $ 110,079 |
AFS Securities (Activity relate
AFS Securities (Activity related to sales of AFS securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of AFS of securities | $ 26,855 | $ 0 |
Gross realized gains (losses) | 71 | |
Applicable income tax expense | $ 15 |
AFS Securities (AFS securities
AFS Securities (AFS securities with gross unrealized losses) (Details) $ in Thousands | Mar. 31, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 46 | |
Fair Value, Less Than Twelve Months | 24,236 | |
Gross Unrealized Losses, Twelve Months or More | 782 | |
Fair Value, Twelve Months or More | 66,129 | |
Total Unrealized Losses | $ 828 | |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | Securities | 9 | |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | Securities | 2 | 19 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | Securities | 28 | |
Auction rate money market preferred [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 0 | |
Fair Value, Less Than Twelve Months | 0 | |
Gross Unrealized Losses, Twelve Months or More | $ 474 | 81 |
Fair Value, Twelve Months or More | $ 2,726 | 3,119 |
Total Unrealized Losses | 81 | |
Mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 3 | |
Fair Value, Less Than Twelve Months | 3,974 | |
Gross Unrealized Losses, Twelve Months or More | 557 | |
Fair Value, Twelve Months or More | 49,701 | |
Total Unrealized Losses | 560 | |
Collateralized mortgage obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 43 | |
Fair Value, Less Than Twelve Months | 20,262 | |
Gross Unrealized Losses, Twelve Months or More | 144 | |
Fair Value, Twelve Months or More | 13,309 | |
Total Unrealized Losses | $ 187 |
Loans and ALLL (Narrative) (Det
Loans and ALLL (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($)loan | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($)NumberofLoan | Mar. 31, 2019NumberofLoan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Threshold period of continuous performance to return loans to accrual status | 6 months | ||||||
Migration analysis of loan portfolio period | 5 years | ||||||
Advance in connection with impaired loans | $ 459 | $ 459 | $ 459 | $ 459 | $ 459 | $ 175 | |
Number of loans restructured through the forbearance of principal or accrued interest | NumberofLoan | 0 | 0 | |||||
Loans in default | 0 | 0 | 0 | ||||
Minimum [Member] | 4 - Low satisfactory [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 10 days | ||||||
Minimum [Member] | 5 - Special mention [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 30 days | ||||||
Maximum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, amortization term | 30 years | ||||||
Maximum [Member] | 4 - Low satisfactory [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 30 days | ||||||
Maximum [Member] | 5 - Special mention [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Delinquency period | 60 days | ||||||
Commercial, Agricultural, and Residential Portfolio Segments [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of days past due (or more), accrual of interest discontinued | 90 days | ||||||
Total Consumer [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum days of consumer loan charged off | 180 days | ||||||
Total Consumer [Member] | Maximum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, amortization term | 15 years | ||||||
Commercial And Agricultural Portfolio Segment [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum percentage of loan | 0.80 | ||||||
Commercial And Agricultural Portfolio Segment [Member] | Customer Concentration Risk [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum amount of loans | 15,000 | ||||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum amount of loans | 50,000 | ||||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan advance maturity period | 20 days | ||||||
Commercial Advances to Mortgage Brokers Segment [Member] | Customer Concentration Risk [Member] | Maximum [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan advance maturity period | 30 days | ||||||
Residential Real Estate [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum percentage of loan | 1 | ||||||
Maximum percentage of principal, interest, taxes and hazard insurance on property over gross income | 0.28 | ||||||
Maximum percentage of debt servicing over gross income | 0.40 | ||||||
Maximum amount without corporation approval | $ 1,000 | ||||||
Residential, Privately Insured, Financing Receivable [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum percentage of loan | 0.80 |
Loans and ALLL (Summary of chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | $ 7,939 | $ 8,375 |
Allowance for loan losses, Charge-offs | (158) | (138) |
Allowance for loan losses, Recoveries | 128 | 127 |
Allowance for loan losses, Provision for loan losses | 788 | 34 |
Allowance for loan losses, Ending Balance | 8,697 | 8,398 |
Commercial [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 1,914 | 2,563 |
Allowance for loan losses, Charge-offs | (4) | (8) |
Allowance for loan losses, Recoveries | 22 | 51 |
Allowance for loan losses, Provision for loan losses | 443 | (358) |
Allowance for loan losses, Ending Balance | 2,375 | 2,248 |
Agricultural [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 634 | 775 |
Allowance for loan losses, Charge-offs | (16) | 0 |
Allowance for loan losses, Recoveries | 33 | 1 |
Allowance for loan losses, Provision for loan losses | (161) | (1) |
Allowance for loan losses, Ending Balance | 490 | 775 |
Residential Real Estate [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 2,047 | 1,992 |
Allowance for loan losses, Charge-offs | (15) | (2) |
Allowance for loan losses, Recoveries | 27 | 27 |
Allowance for loan losses, Provision for loan losses | (342) | 288 |
Allowance for loan losses, Ending Balance | 1,717 | 2,305 |
Consumer Portfolio Segment [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 922 | 857 |
Allowance for loan losses, Charge-offs | (123) | (128) |
Allowance for loan losses, Recoveries | 46 | 48 |
Allowance for loan losses, Provision for loan losses | 116 | 114 |
Allowance for loan losses, Ending Balance | 961 | 891 |
Unallocated [Member] | ||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||
Allowance for loan losses, Beginning Balance | 2,422 | 2,188 |
Allowance for loan losses, Charge-offs | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 |
Allowance for loan losses, Provision for loan losses | 732 | (9) |
Allowance for loan losses, Ending Balance | $ 3,154 | $ 2,179 |
Loans and ALLL (Summary of reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | $ 1,309 | $ 1,114 | ||
Collectively evaluated for impairment, ALLL | 7,388 | 6,825 | ||
Total, ALLL | 8,697 | 7,939 | $ 8,398 | $ 8,375 |
Individually evaluated for impairment, Loans | 27,635 | 28,191 | ||
Collectively evaluated for impairment, Loans | 1,148,301 | 1,158,379 | ||
Total | 1,175,936 | 1,186,570 | ||
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 179 | 15 | ||
Collectively evaluated for impairment, ALLL | 2,196 | 1,899 | ||
Total, ALLL | 2,375 | 1,914 | 2,248 | 2,563 |
Individually evaluated for impairment, Loans | 8,598 | 7,865 | ||
Collectively evaluated for impairment, Loans | 686,680 | 693,076 | ||
Total | 695,278 | 700,941 | ||
Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 78 | 26 | ||
Collectively evaluated for impairment, ALLL | 412 | 608 | ||
Total, ALLL | 490 | 634 | 775 | 775 |
Individually evaluated for impairment, Loans | 13,660 | 14,840 | ||
Collectively evaluated for impairment, Loans | 95,196 | 102,080 | ||
Total | 108,856 | 116,920 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 1,052 | 1,073 | ||
Collectively evaluated for impairment, ALLL | 665 | 974 | ||
Total, ALLL | 1,717 | 2,047 | 2,305 | 1,992 |
Individually evaluated for impairment, Loans | 5,374 | 5,486 | ||
Collectively evaluated for impairment, Loans | 296,642 | 293,083 | ||
Total | 302,016 | 298,569 | ||
Total Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 961 | 922 | ||
Total, ALLL | 961 | 922 | 891 | 857 |
Individually evaluated for impairment, Loans | 3 | 0 | ||
Collectively evaluated for impairment, Loans | 69,783 | 70,140 | ||
Total | 69,786 | 70,140 | ||
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||
Collectively evaluated for impairment, ALLL | 3,154 | 2,422 | ||
Total, ALLL | $ 3,154 | $ 2,422 | $ 2,179 | $ 2,188 |
Loans and ALLL (Credit quality
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1,175,936 | $ 1,186,570 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 695,278 | 700,941 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 501,637 | 510,153 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 159,225 | 155,265 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 34,416 | 35,523 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 108,856 | 116,920 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 77,195 | 80,027 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 31,661 | 36,893 |
Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 804,134 | 817,861 |
1 - Excellent [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10 | 390 |
1 - Excellent [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10 | 390 |
1 - Excellent [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10 | 390 |
2 - High quality [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15,086 | 11,426 |
2 - High quality [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,326 | 2,582 |
2 - High quality [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,760 | 8,844 |
2 - High quality [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
2 - High quality [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 907 | 1,551 |
2 - High quality [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 894 | 1,452 |
2 - High quality [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13 | 99 |
2 - High quality [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15,993 | 12,977 |
3 - High satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 171,448 | 188,118 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 93,092 | 109,737 |
3 - High satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 43,940 | 42,858 |
3 - High satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 34,416 | 35,523 |
3 - High satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 21,811 | 23,534 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 16,835 | 16,765 |
3 - High satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,976 | 6,769 |
3 - High satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 193,259 | 211,652 |
4 - Low satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 474,123 | 472,045 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 381,334 | 377,198 |
4 - Low satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 92,789 | 94,847 |
4 - Low satisfactory [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
4 - Low satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 62,273 | 63,659 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 42,602 | 42,798 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 19,671 | 20,861 |
4 - Low satisfactory [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 536,396 | 535,704 |
5 - Special mention [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 18,934 | 18,842 |
5 - Special mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15,404 | 15,372 |
5 - Special mention [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,530 | 3,470 |
5 - Special mention [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
5 - Special mention [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,765 | 10,919 |
5 - Special mention [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,601 | 7,165 |
5 - Special mention [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,164 | 3,754 |
5 - Special mention [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 26,699 | 29,761 |
6 - Substandard [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14,034 | 8,499 |
6 - Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,177 | 4,874 |
6 - Substandard [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,857 | 3,625 |
6 - Substandard [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
6 - Substandard [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,494 | 12,972 |
6 - Substandard [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,236 | 9,136 |
6 - Substandard [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,258 | 3,836 |
6 - Substandard [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 25,528 | 21,471 |
7 - Vulnerable [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,368 | 1,621 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 29 | 390 |
7 - Vulnerable [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,339 | 1,231 |
7 - Vulnerable [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
7 - Vulnerable [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,418 | 4,285 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,839 | 2,711 |
7 - Vulnerable [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,579 | 1,574 |
7 - Vulnerable [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,786 | 5,906 |
8 - Doubtful [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 275 | 0 |
8 - Doubtful [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 275 | 0 |
8 - Doubtful [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 188 | 0 |
8 - Doubtful [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 188 | 0 |
8 - Doubtful [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 463 | 0 |
Loss [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Loss [Member] | Commercial And Agricultural Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
Loans and ALLL (Past due and cu
Loans and ALLL (Past due and current loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 40 | $ 0 |
Nonaccrual | 6,913 | 6,535 |
Total Past Due and Nonaccrual | 14,842 | 11,405 |
Current | 1,161,094 | 1,175,165 |
Total | 1,175,936 | 1,186,570 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 1,643 | 1,621 |
Total Past Due and Nonaccrual | 6,180 | 2,477 |
Current | 689,098 | 698,464 |
Total | 695,278 | 700,941 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 304 | 390 |
Total Past Due and Nonaccrual | 2,597 | 559 |
Current | 499,040 | 509,594 |
Total | 501,637 | 510,153 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 1,339 | 1,231 |
Total Past Due and Nonaccrual | 3,583 | 1,918 |
Current | 155,642 | 153,347 |
Total | 159,225 | 155,265 |
Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Current | 34,416 | 35,523 |
Total | 34,416 | 35,523 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 4,606 | 4,285 |
Total Past Due and Nonaccrual | 4,870 | 4,285 |
Current | 103,986 | 112,635 |
Total | 108,856 | 116,920 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 3,027 | 2,711 |
Total Past Due and Nonaccrual | 3,260 | 2,711 |
Current | 73,935 | 77,316 |
Total | 77,195 | 80,027 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 1,579 | 1,574 |
Total Past Due and Nonaccrual | 1,610 | 1,574 |
Current | 30,051 | 35,319 |
Total | 31,661 | 36,893 |
Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 40 | 0 |
Nonaccrual | 661 | 629 |
Total Past Due and Nonaccrual | 3,426 | 4,572 |
Current | 298,590 | 293,997 |
Total | 302,016 | 298,569 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 40 | 0 |
Nonaccrual | 576 | 557 |
Total Past Due and Nonaccrual | 3,165 | 4,278 |
Current | 258,959 | 253,894 |
Total | 262,124 | 258,172 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 35 | 65 |
Current | 5,509 | 5,766 |
Total | 5,544 | 5,831 |
Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 85 | 72 |
Total Past Due and Nonaccrual | 226 | 229 |
Current | 34,122 | 34,337 |
Total | 34,348 | 34,566 |
Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 3 | 0 |
Total Past Due and Nonaccrual | 366 | 71 |
Current | 69,420 | 70,069 |
Total | 69,786 | 70,140 |
Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 356 | 68 |
Current | 66,105 | 66,547 |
Total | 66,461 | 66,615 |
Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual | 3 | 0 |
Total Past Due and Nonaccrual | 10 | 3 |
Current | 3,315 | 3,522 |
Total | 3,325 | 3,525 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 7,578 | 4,426 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,334 | 670 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,199 | 139 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,135 | 531 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 233 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 233 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,648 | 3,685 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,472 | 3,463 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 35 | 65 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 141 | 157 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 363 | 71 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 356 | 68 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 7 | 3 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 311 | 444 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 203 | 186 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 94 | 30 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 109 | 156 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Advances to Mortgage Brokers Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 31 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 31 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 77 | 258 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 77 | 258 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Loans and ALLL (Summary of info
Loans and ALLL (Summary of information pertaining to impaired loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | $ 10,931 | $ 8,782 | |
Impaired loans without a valuation allowance, Outstanding Balance | 16,704 | 19,409 | |
Impaired loans, Outstanding Balance | 27,635 | 28,191 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 11,651 | 9,329 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 17,143 | 20,022 | |
Impaired loans, Unpaid Principal Balance | 28,794 | 29,351 | |
Impaired loans, Valuation Allowance | 1,309 | 1,114 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 9,857 | $ 10,549 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 18,058 | 20,019 | |
Impaired loans, Average Outstanding Balance | 27,915 | 30,568 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 132 | 123 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 146 | 157 | |
Impaired loans, Interest Income Recognized | 278 | 280 | |
Total commercial [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 8,598 | 7,865 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 8,979 | 8,246 | |
Impaired loans, Valuation Allowance | 179 | 15 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 8,233 | 9,678 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 105 | 123 | |
Commercial real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 1,125 | 517 | |
Impaired loans without a valuation allowance, Outstanding Balance | 4,162 | 4,961 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 1,367 | 635 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 4,301 | 5,224 | |
Impaired loans, Valuation Allowance | 66 | 15 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 821 | 3,409 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 4,562 | 3,287 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 25 | 49 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 59 | 53 | |
Commercial other [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 919 | 0 | |
Impaired loans without a valuation allowance, Outstanding Balance | 2,392 | 2,387 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 919 | 0 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,392 | 2,387 | |
Impaired loans, Valuation Allowance | 113 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 460 | 12 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 2,390 | 2,970 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 6 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 15 | 21 | |
Total agricultural [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 13,660 | 14,840 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 13,710 | 14,890 | |
Impaired loans, Valuation Allowance | 78 | 26 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 14,250 | 14,144 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 112 | 83 | |
Agricultural real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 2,247 | 1,509 | |
Impaired loans without a valuation allowance, Outstanding Balance | 7,192 | 8,372 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 2,297 | 1,509 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 7,192 | 8,422 | |
Impaired loans, Valuation Allowance | 70 | 12 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 1,878 | 390 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 7,782 | 7,623 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 24 | 6 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 59 | 7 | |
Agricultural other [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 1,355 | 1,355 | |
Impaired loans without a valuation allowance, Outstanding Balance | 2,866 | 3,604 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 1,355 | 1,355 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,866 | 3,604 | |
Impaired loans, Valuation Allowance | 8 | 14 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 1,355 | 44 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 3,235 | 6,087 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 22 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 7 | 70 | |
Total residential real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 5,374 | 5,486 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 6,102 | 6,215 | |
Impaired loans, Valuation Allowance | 1,052 | 1,073 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 5,430 | 6,737 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 61 | 74 | |
Residential real estate senior liens [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Outstanding Balance | 5,285 | 5,401 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 5,713 | 5,830 | |
Impaired loans, Valuation Allowance | 1,052 | 1,073 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 5,343 | 6,682 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 55 | 68 | |
Residential real estate junior liens [Member] | |||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 12 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | |
Residential real estate home equity lines of credit [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 89 | 85 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 389 | 385 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Average Outstanding Balance | 87 | 43 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans without a valuation allowance, Interest Income Recognized | 6 | 6 | |
Total Consumer [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans, Outstanding Balance | 3 | 0 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans, Unpaid Principal Balance | 3 | 0 | |
Impaired loans, Valuation Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans, Average Outstanding Balance | 2 | 9 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans, Interest Income Recognized | 0 | 0 | |
Consumer secured [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Outstanding Balance | 3 | 0 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 3 | $ 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired loans without a valuation allowance, Average Outstanding Balance | 2 | 9 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired loans without a valuation allowance, Interest Income Recognized | $ 0 | $ 0 |
Loans and ALLL (Summary of in_2
Loans and ALLL (Summary of information pertaining to TDRs) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | $ 9,857 | $ 10,549 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 132 | $ 123 |
Number of Loans | loan | 6 | 3 |
Pre-Modification Recorded Investment | $ 1,649 | $ 670 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,649 | $ 670 |
Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 919 | $ 0 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 5 | 3 |
Pre-Modification Recorded Investment | $ 730 | $ 670 |
Commercial other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 460 | 12 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 6 | $ 0 |
Number of Loans | loan | 2 | 1 |
Pre-Modification Recorded Investment | $ 963 | $ 147 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 963 | $ 147 |
Commercial other [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 919 | $ 0 |
Commercial other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Pre-Modification Recorded Investment | $ 44 | $ 147 |
Agricultural other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,355 | 44 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 22 | $ 0 |
Number of Loans | loan | 2 | 2 |
Pre-Modification Recorded Investment | $ 593 | $ 523 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 593 | $ 523 |
Agricultural other [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Agricultural other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Pre-Modification Recorded Investment | $ 593 | $ 523 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5,343 | 6,682 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 55 | $ 68 |
Number of Loans | loan | 2 | 0 |
Pre-Modification Recorded Investment | $ 93 | $ 0 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 93 | $ 0 |
Residential real estate senior liens [Member] | Interest Rate Below Market Reduction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Residential real estate senior liens [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Pre-Modification Recorded Investment | $ 93 | $ 0 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 12 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 0 | $ 0 |
Loans and ALLL (Summary of TDR
Loans and ALLL (Summary of TDR loan balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Troubled debt restructurings | $ 24,117 | $ 24,737 |
Equity Securities Without Readi
Equity Securities Without Readily Determinable Fair Values (Equity securities without readily determinable fair values) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Equity Method And Other Investments [Abstract] | ||
Total | $ 21,535 | $ 21,629 |
Borrowed Funds (Borrowed funds
Borrowed Funds (Borrowed funds obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Debt [Line Items] | |||
Borrowed funds | $ 263,171 | $ 275,999 | |
Borrowed funds, Rate | 2.10% | 2.07% | |
Securities Sold under Agreements to Repurchase [Member] | |||
Schedule of Debt [Line Items] | |||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 32,236 | $ 37,441 | |
Borrowed funds | $ 28,171 | $ 30,999 | |
Borrowed funds, Rate | 0.09% | 0.09% | |
Federal Funds Purchased [Member] | |||
Schedule of Debt [Line Items] | |||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 0 | $ 1,860 | |
Federal Home Loan Bank Advances [Member] | |||
Schedule of Debt [Line Items] | |||
Borrowed funds | $ 235,000 | $ 245,000 | |
Borrowed funds, Rate | 2.34% | 2.32% |
Borrowed Funds (Maturity and we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.34% | 2.32% |
FHLB advances | $ 235,000 | $ 245,000 |
Fixed Rate Advances Due 2020 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.28% | 2.18% |
FHLB fixed rate advances | $ 45,000 | $ 55,000 |
Fixed Rate Advances Due 2021 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.91% | 1.91% |
FHLB fixed rate advances | $ 50,000 | $ 50,000 |
Federal Home Loan Bank, Advances, Variable Rate Due 2021 [Member] [Member] [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate | $ 10,000 | $ 10,000 |
FHLB advances, rate | 1.99% | 2.20% |
Federal Home Loan Bank, Advances, Fixed Rate Due 2022 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.97% | 1.97% |
FHLB fixed rate advances | $ 20,000 | $ 20,000 |
Fixed Rate Advances Due 2023 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.97% | 2.97% |
FHLB fixed rate advances | $ 45,000 | $ 45,000 |
Federal Home Loan Bank, Advances, Fixed Rate Due 2024 [Member] [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.68% | 2.68% |
FHLB fixed rate advances | $ 55,000 | $ 55,000 |
Federal Home Loan Bank, Advances, Fixed Rate Due 2026 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.17% | 1.17% |
FHLB fixed rate advances | $ 10,000 | $ 10,000 |
Borrowed Funds (Short-term borr
Borrowed Funds (Short-term borrowings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 32,236 | $ 37,441 |
Average Balance | $ 30,923 | $ 34,987 |
Weighted Average Interest Rate During the Period | 0.10% | 0.10% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Maximum Month End Balance | $ 0 | $ 1,860 |
Average Balance | $ 0 | $ 458 |
Weighted Average Interest Rate During the Period | 0.00% | 2.65% |
Borrowed Funds (Pledged financi
Borrowed Funds (Pledged financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Pledged to secure borrowed funds | $ 364,985 | $ 368,310 |
Pledged to secure repurchase agreements | 28,171 | 31,020 |
Pledged for public deposits and for other purposes necessary or required by law | 57,129 | 59,537 |
Total | 450,285 | 458,867 |
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 28,171 | 31,020 |
State and Local Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 12,002 | 31,020 |
Mortgage Backed Securities, Other [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 9,492 | 0 |
Collateralized Mortgage Obligations [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | $ 6,677 | $ 0 |
Borrowed Funds (Derivatives) (D
Borrowed Funds (Derivatives) (Details) - Cash Flow Hedging [Member] - Interest Rate Swaps [Member] - Designated as Hedging Instrument [Member] - London Interbank Offered Rate (LIBOR) [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Pay Rate | 1.56% | 1.56% | |
Remaining Life (Years) | 1 year 1 month | 1 year 4 months | |
Derivative, Notional Amount1 | $ 10,000 | $ 10,000 | |
Other Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | $ 67 | ||
Other Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | $ 69 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Carrying value of securities sold under agreements to repurchase | $ 28,171 | $ 31,020 |
Short-term Debt [Line Items] | ||
Additional borrowing capacity | $ 140,121 | |
Federal Funds Purchased [Member] | Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 1 day | |
Federal Funds Purchased [Member] | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 4 days |
Other Noninterest Expenses (Exp
Other Noninterest Expenses (Expenses included in other noninterest expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of expenses included in other noninterest expenses | ||
ATM and Debit Card Expense | $ 323 | $ 248 |
Professional Fees | 433 | 453 |
Directors fees | 182 | 207 |
Expense Related to Distribution or Servicing and Underwriting Fees | 166 | 316 |
FDIC insurance premiums | 156 | 170 |
Memberships and Subscriptions Expense | 199 | 167 |
Donations and community relations | 330 | 140 |
Postage and freight | 131 | 129 |
Marketing Expense | 203 | 142 |
Education and travel | 91 | 157 |
All other | 534 | 525 |
Total other | $ 2,748 | $ 2,654 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory tax rate | 21.00% | 21.00% |
Income taxes at 34% statutory rate | $ 686 | $ 807 |
Interest income on tax exempt municipal securities | (203) | (244) |
Earnings on corporate owned life insurance policies | (148) | (36) |
Other | (4) | (4) |
Total effect of nontaxable income | (355) | (284) |
Effect of nondeductible expenses | 4 | 6 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 132 | 180 |
Federal income tax expense | $ 203 | $ 349 |
Computation of Earnings Per C_3
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share [Abstract] | |||
Average number of common shares outstanding for basic calculation | 7,892,421 | 7,888,885 | |
Average potential effect of common shares in the Directors Plan | [1] | 163,186 | 199,456 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 8,055,607 | 8,088,341 | |
Net income | $ 3,064 | $ 3,496 | |
Basic (in dollars per share) | $ 0.39 | $ 0.44 | |
Diluted (in dollars per share) | $ 0.38 | $ 0.43 | |
[1] | Exclusive of shares held in the Rabbi Trust |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,971 | $ (7,685) |
OCI before reclassifications | (6,175) | (5,873) |
Amounts reclassified from AOCI | (71) | 0 |
Other Comprehensive Income (Loss), before Tax | 6,104 | 5,873 |
Tax effect | (1,365) | (1,178) |
Unrealized gains (losses), net of tax | 4,739 | 4,695 |
Ending Balance | 6,710 | (2,990) |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 4,612 | (5,200) |
OCI before reclassifications | (6,311) | (5,954) |
Amounts reclassified from AOCI | (71) | 0 |
Other Comprehensive Income (Loss), before Tax | 6,240 | 5,954 |
Tax effect | (1,393) | (1,195) |
Unrealized gains (losses), net of tax | 4,847 | 4,759 |
Ending Balance | 9,459 | (441) |
Defined Benefit Pension Plan [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (2,695) | (2,741) |
OCI before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 0 | 0 |
Tax effect | 0 | 0 |
Unrealized gains (losses), net of tax | 0 | 0 |
Ending Balance | (2,695) | (2,741) |
Gain (Loss) on Derivative Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 54 | 256 |
OCI before reclassifications | 136 | 81 |
Amounts reclassified from AOCI | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | (136) | (81) |
Tax effect | 28 | 17 |
Unrealized gains (losses), net of tax | (108) | (64) |
Ending Balance | (54) | 192 |
Auction Rate Money Market Preferred Stocks [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Unrealized gains (losses), net of tax | $ (393) | $ 265 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | $ 6,311 | $ 5,954 |
Reclassification adjustment for net (gains) losses included in net income | (71) | 0 |
Tax effect | (1,393) | (1,195) |
Unrealized gains (losses), net of tax | 4,739 | 4,695 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | 6,311 | 5,954 |
Reclassification adjustment for net (gains) losses included in net income | (71) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | 6,240 | 5,954 |
Tax effect | (1,393) | (1,195) |
Unrealized gains (losses), net of tax | 4,847 | 4,759 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | Auction Rate Money Market Preferred and Preferred Stocks [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | (393) | 265 |
Reclassification adjustment for net (gains) losses included in net income | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (393) | 265 |
Tax effect | 0 | 0 |
Unrealized gains (losses), net of tax | (393) | 265 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | All Other AFS Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on AFS securities arising during the period | 6,704 | 5,689 |
Reclassification adjustment for net (gains) losses included in net income | (71) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | 6,633 | 5,689 |
Tax effect | (1,393) | (1,195) |
Unrealized gains (losses), net of tax | 5,240 | 4,494 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses), net of tax | $ 0 | $ 0 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about impaired loans) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discounted appraisal value at fair value | $ 18,778 | $ 19,135 |
Loans Receivable, Collateralized By Cash Crop Inventory [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 40.00% | 40.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 40.00% | 40.00% |
Loans Receivable, Collateralized By Livestock [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 30.00% | 30.00% |
Real Estate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 23.00% | 22.00% |
Real Estate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Equipment [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 31.00% | 32.00% |
Equipment [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Equipment [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 40.00% | 40.00% |
Loans Receivable, Collateralized By Accounts Receivable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 28.00% | 28.00% |
Loans Receivable, Collateralized By Accounts Receivable [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 25.00% | 25.00% |
Loans Receivable, Collateralized By Accounts Receivable [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 50.00% | 50.00% |
Loans Receivable, Collateralized By Other Inventory [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 50.00% | 50.00% |
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueWeightedAverage | 50.00% | 50.00% |
Fair Value (Quantitative info_2
Fair Value (Quantitative information related to foreclosed assets) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - Real Estate [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 20.00% | 20.00% |
Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
ImpairedFinancingReceivableFairValueDisclosureAppraisedValueDiscount | 30.00% | 30.00% |
Fair Value (Carrying amount and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Level 1 [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 96,751 | $ 60,572 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 7,022 | 6,501 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 922,023 | 906,232 | |
Deposits with stated maturities | 0 | 0 | |
Borrowed funds | 0 | 0 | |
Accrued interest payable | 845 | 860 | |
Level 2 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 1,242 | 925 | |
Total loans | 0 | 0 | |
Less allowance for loan losses | 0 | 0 | |
Net loans | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 2,003 | 2,264 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 406,330 | 409,600 | |
Borrowed funds | 269,968 | 278,761 | |
Accrued interest payable | 0 | 0 | |
Level 3 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans AFS | 0 | 0 | |
Total loans | 1,172,598 | 1,170,370 | |
Less allowance for loan losses | 8,697 | 7,939 | |
Net loans | 1,163,901 | 1,162,431 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 0 | 0 | |
Borrowed funds | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 96,751 | 60,572 | |
Mortgage loans AFS | 1,228 | 904 | |
Total loans | 1,175,936 | 1,186,570 | |
Less allowance for loan losses | 8,697 | 7,939 | |
Net loans | 1,167,239 | 1,178,631 | |
Accrued interest receivable | 7,022 | 6,501 | |
Equity securities without readily determinable fair values | [1] | 21,535 | 21,629 |
Originated mortgage servicing rights | 2,003 | 2,264 | |
LIABILITIES | |||
Deposits without stated maturities | 922,023 | 906,232 | |
Deposits with stated maturities | 400,060 | 407,619 | |
Borrowed funds | 263,171 | 275,999 | |
Accrued interest payable | 845 | 860 | |
Estimated Fair Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 96,751 | 60,572 | |
Mortgage loans AFS | 1,242 | 925 | |
Total loans | 1,172,598 | 1,170,370 | |
Less allowance for loan losses | 8,697 | 7,939 | |
Net loans | 1,163,901 | 1,162,431 | |
Accrued interest receivable | 7,022 | 6,501 | |
Originated mortgage servicing rights | 2,003 | 2,264 | |
LIABILITIES | |||
Deposits without stated maturities | 922,023 | 906,232 | |
Deposits with stated maturities | 406,330 | 409,600 | |
Borrowed funds | 269,968 | 278,761 | |
Accrued interest payable | $ 845 | $ 860 | |
[1] | Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Fair Value (Recorded amount of
Fair Value (Recorded amount of assets and liabilities measured at fair value) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
AFS Securities | ||
AFS securities | $ 407,189 | $ 429,839 |
Fair value, total | 428,039 | 451,305 |
Level 1 [Member] | ||
AFS Securities | ||
Fair value, total | $ 0 | $ 0 |
Percent of assets and liabilities measured at fair value | 0.00% | 0.00% |
Level 2 [Member] | ||
AFS Securities | ||
Fair value, total | $ 409,261 | $ 432,170 |
Percent of assets and liabilities measured at fair value | 95.61% | 95.76% |
Level 3 [Member] | ||
AFS Securities | ||
Fair value, total | $ 18,778 | $ 19,135 |
Percent of assets and liabilities measured at fair value | 4.39% | 4.24% |
Recurring items [Member] | ||
AFS Securities | ||
AFS securities | $ 407,189 | $ 429,839 |
Derivative instruments | 69 | (67) |
Recurring items [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 163,116 | 169,752 |
Recurring items [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 2,726 | 3,119 |
Recurring items [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 126,554 | 140,204 |
Recurring items [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 114,793 | 116,764 |
Recurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
AFS securities | 407,189 | 429,839 |
Derivative instruments | 69 | (67) |
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 163,116 | 169,752 |
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 2,726 | 3,119 |
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 126,554 | 140,204 |
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 114,793 | 116,764 |
Recurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | ||
AFS Securities | ||
AFS securities | 0 | 0 |
Nonrecurring items [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 18,778 | 19,135 |
Other Mortgage Servicing Rights, Fair Value Disclosure | 2,003 | 2,264 |
Nonrecurring items [Member] | Level 1 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Other Mortgage Servicing Rights, Fair Value Disclosure | 0 | 0 |
Nonrecurring items [Member] | Level 2 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Other Mortgage Servicing Rights, Fair Value Disclosure | 2,003 | 2,264 |
Nonrecurring items [Member] | Level 3 [Member] | ||
AFS Securities | ||
Impaired loans (net of the allowance for loan losses) | 18,778 | 19,135 |
Other Mortgage Servicing Rights, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage Servicing Rights (MSR) Impairment (Recovery) | $ 245,000 | $ 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairments recorded on equity securities without readily determinable fair values | 0 | |
Impairments recorded on goodwill and other acquisition intangibles | $ 0 |
Parent Company Only Financial_3
Parent Company Only Financial Information (Interim Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||||
AFS securities | $ 407,189 | |||
Premises and equipment | 25,946 | $ 26,242 | ||
Other assets | 12,937 | 13,046 | ||
TOTAL ASSETS | 1,815,904 | 1,814,198 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Shareholders' equity | 215,498 | 210,182 | $ 202,413 | $ 195,519 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,815,904 | 1,814,198 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash on deposit at subsidiary Bank | 216 | 1,360 | ||
Investments in subsidiaries | 163,889 | 157,415 | ||
Premises and equipment | 1,528 | 1,539 | ||
Other assets | 49,892 | 49,887 | ||
TOTAL ASSETS | 215,525 | 210,201 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 27 | 19 | ||
Shareholders' equity | 215,498 | 210,182 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 215,525 | $ 210,201 |
Parent Company Only Financial_4
Parent Company Only Financial Information (Interim Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Expenses | ||
Compensation and benefits | $ 5,869 | $ 5,722 |
Occupancy and equipment | 867 | 930 |
Professional Fees | 433 | 453 |
Noninterest Expense Directors Fees | 182 | 207 |
Other | 2,748 | 2,654 |
Federal income tax benefit | (203) | (349) |
Net income | 3,064 | 3,496 |
Parent Company [Member] | ||
Income | ||
Dividends from subsidiaries | 1,750 | 1,000 |
Interest income | 1 | 2 |
Management fee and other | 1 | (19) |
Total income | 1,752 | 983 |
Expenses | ||
Occupancy and equipment | 15 | 15 |
Professional Fees | 132 | 130 |
Noninterest Expense Directors Fees | 94 | 98 |
Other | 293 | 290 |
Total expenses | 534 | 533 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 1,218 | 450 |
Federal income tax benefit | 112 | 115 |
Income before equity in undistributed earnings of subsidiaries | 1,330 | 565 |
Undistributed earnings of subsidiaries | 1,734 | 2,931 |
Net income | $ 3,064 | $ 3,496 |
Parent Company Only Financial_5
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 3,064 | $ 3,496 |
Adjustments to reconcile net income to cash provided by operations | ||
Undistributed earnings of equity securities without readily determinable fair values | 94 | 57 |
Share-based payment awards | 123 | 131 |
Depreciation | 668 | 731 |
Changes in operating assets and liabilities which used cash | ||
Other assets | (379) | (1,492) |
Accrued interest and other liabilities | (111) | 437 |
Net cash provided by (used in) operating activities | 3,394 | 3,076 |
Investing activities - none | ||
Net cash provided by (used in) investing activities | 39,991 | (11,095) |
Financing activities | ||
Cash dividends paid on common stock | (2,122) | (2,043) |
Proceeds from the issuance of common stock | 1,330 | 1,433 |
Common stock repurchased | (1,168) | (632) |
Common stock purchased for deferred compensation obligations | (650) | (186) |
Net cash provided by (used in) financing activities | (7,206) | (44,773) |
Increase (decrease) in cash and cash equivalents | 36,179 | (52,792) |
Cash and cash equivalents at beginning of period | 60,572 | 73,471 |
Cash and cash equivalents at end of period | 96,751 | 20,679 |
Parent Company [Member] | ||
Operating activities | ||
Net income | 3,064 | 3,496 |
Adjustments to reconcile net income to cash provided by operations | ||
Undistributed earnings of subsidiaries | (1,734) | (2,931) |
Undistributed earnings of equity securities without readily determinable fair values | 94 | 57 |
Share-based payment awards | 123 | 131 |
Depreciation | 11 | 11 |
Changes in operating assets and liabilities which used cash | ||
Other assets | (100) | 26 |
Accrued interest and other liabilities | 8 | 800 |
Net cash provided by (used in) operating activities | 1,466 | 1,590 |
Financing activities | ||
Cash dividends paid on common stock | (2,122) | (2,043) |
Proceeds from the issuance of common stock | 1,330 | 1,433 |
Common stock repurchased | (1,168) | (632) |
Common stock purchased for deferred compensation obligations | (650) | (186) |
Net cash provided by (used in) financing activities | (2,610) | (1,428) |
Increase (decrease) in cash and cash equivalents | (1,144) | 162 |
Cash and cash equivalents at beginning of period | 1,360 | 2,499 |
Cash and cash equivalents at end of period | $ 216 | $ 2,661 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Segment Reporting [Abstract] | |||
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% | 90.00% |