Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-23636 | |
Entity Registrant Name | HAWTHORN BANCSHARES, INC. | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 43-1626350 | |
Entity Address, Address Line One | 132 East High Street, Box 688 | |
Entity Address, City or Town | Jefferson City | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 65102 | |
City Area Code | 573 | |
Local Phone Number | 761-6100 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | HWBK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,362,476 | |
Entity Central Index Key | 0000893847 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 18,496 | $ 19,235 |
Federal funds sold and other interest-bearing deposits | 128,207 | 161,128 |
Cash and cash equivalents | 146,703 | 180,363 |
Certificates of deposit in other banks | 8,897 | 9,376 |
Available-for-sale debt securities, at fair value | 238,142 | 198,030 |
Other investments | 6,188 | 6,353 |
Total investment securities | 244,330 | 204,383 |
Loans held for investment | 1,276,185 | 1,286,967 |
Allowance for loan losses | (18,361) | (18,113) |
Net loans | 1,257,824 | 1,268,854 |
Loans held for sale, at lower of cost or fair value | 6,308 | 5,099 |
Premises and equipment - net | 34,027 | 34,561 |
Mortgage servicing rights, at fair value | 2,494 | 2,445 |
Other real estate owned - net | 12,140 | 12,291 |
Accrued interest receivable | 6,488 | 6,640 |
Cash surrender value - life insurance | 2,465 | 2,451 |
Other assets | 10,248 | 7,268 |
Total assets | 1,731,924 | 1,733,731 |
Deposits | ||
Non-interest bearing demand | 431,035 | 382,492 |
Savings, interest checking and money market | 708,615 | 723,808 |
Time deposits $250,000 and over | 74,406 | 91,263 |
Other time deposits | 179,926 | 186,043 |
Total deposits | 1,393,982 | 1,383,606 |
Federal funds purchased and securities sold under agreements to repurchase | 42,018 | 45,154 |
Federal Home Loan Bank advances and other borrowings | 97,614 | 106,674 |
Subordinated notes | 49,486 | 49,486 |
Operating lease liabilities | 2,058 | 2,137 |
Accrued interest payable | 439 | 837 |
Other liabilities | 15,619 | 15,248 |
Total liabilities | 1,601,216 | 1,603,142 |
Stockholders' equity: | ||
Common stock, $1 par value, authorized 15,000,000 shares; issued 6,769,322 | 6,769 | 6,769 |
Surplus | 59,307 | 59,307 |
Retained earnings | 73,947 | 68,935 |
Accumulated other comprehensive income (loss), net of tax | (1,217) | 1,528 |
Treasury stock; 406,846, and 289,214 shares, at cost, respectively | (8,098) | (5,950) |
Total stockholders' equity | 130,708 | 130,589 |
Total liabilities and stockholders' equity | $ 1,731,924 | $ 1,733,731 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 6,769,322 | 6,769,322 |
Treasury stock, shares | 406,846 | 289,214 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 14,979 | $ 14,422 |
Interest and fees on loans held for sale | 25 | 5 |
Interest on investment securities: | ||
Taxable | 667 | 813 |
Nontaxable | 246 | 142 |
Federal funds sold, other interest-bearing deposits, and certificates of deposit in other banks | 102 | 326 |
Dividends on other investments | 83 | 100 |
Total interest income | 16,102 | 15,808 |
Interest on deposits: | ||
Savings, interest checking and money market | 309 | 947 |
Time deposit accounts $250,000 and over | 210 | 413 |
Time deposits | 461 | 752 |
Total interest expense on deposits | 980 | 2,112 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 26 | 37 |
Interest on Federal Home Loan Bank advances | 396 | 632 |
Interest on subordinated notes | 310 | 501 |
Total interest expense on borrowings | 732 | 1,170 |
Total interest expense | 1,712 | 3,282 |
Net interest income | 14,390 | 12,526 |
Provision for loan losses | 0 | 3,300 |
Net interest income after provision for loan losses | 14,390 | 9,226 |
NON-INTEREST INCOME | ||
Gain on sale of mortgage loans, net | 2,469 | 419 |
Other | 8 | 88 |
Total non-interest income | 4,443 | 2,291 |
Investment securities gains (losses), net | 14 | (1) |
NON-INTEREST EXPENSE | ||
Salaries and employee benefits | 7,146 | 6,121 |
Occupancy expense, net | 771 | 766 |
Furniture and equipment expense | 744 | 750 |
Processing, network, and bank card expense | 1,007 | 976 |
Legal, examination, and professional fees | 404 | 367 |
Advertising and promotion | 243 | 249 |
Postage, printing, and supplies | 204 | 241 |
Loan expense | 174 | 123 |
Other | 958 | 898 |
Total non-interest expense | 11,651 | 10,491 |
Income before income taxes | 7,196 | 1,025 |
Income tax expense | 1,357 | 157 |
Net income | $ 5,839 | $ 868 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 0.13 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 0.13 |
Service charges and other fees | ||
NON-INTEREST INCOME | ||
Income from fees | $ 739 | $ 799 |
Bank card income and fees | ||
NON-INTEREST INCOME | ||
Income from fees | 860 | 693 |
Trust department income | ||
NON-INTEREST INCOME | ||
Income from fees | 294 | 379 |
Real estate servicing fees, net | ||
NON-INTEREST INCOME | ||
Income from fees | $ 73 | $ (87) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 5,839 | $ 868 |
Investment securities available-for-sale: | ||
Unrealized (losses) gains on investment securities available-for-sale, net of tax | (2,778) | 2,180 |
Adjustment for (gains) losses on sale of investment securities, net of tax | (2) | |
Defined benefit pension plans: | ||
Amortization of prior service cost included in net periodic pension cost, net of tax | 35 | 53 |
Total other comprehensive income (loss) | (2,745) | 2,233 |
Total comprehensive income | $ 3,094 | $ 3,101 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2019 | $ 6,520 | $ 55,727 | $ 61,590 | $ (3,755) | $ (5,044) | $ 115,038 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 868 | 0 | 0 | 868 |
Other comprehensive (loss) income | 0 | 0 | 0 | 2,233 | 0 | 2,233 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (719) | (719) |
Cash dividends declared, common stock | 0 | 0 | (750) | 0 | 0 | (750) |
Balance at Mar. 31, 2020 | 6,520 | 55,727 | 61,708 | (1,522) | (5,763) | 116,670 |
Balance at Dec. 31, 2020 | 6,769 | 59,307 | 68,935 | 1,528 | (5,950) | 130,589 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 0 | 0 | 5,839 | 0 | 0 | 5,839 |
Other comprehensive (loss) income | 0 | 0 | 0 | (2,745) | 0 | (2,745) |
Purchase of treasury stock | 0 | 0 | 0 | 0 | (2,148) | (2,148) |
Cash dividends declared, common stock | 0 | 0 | (827) | 0 | 0 | (827) |
Balance at Mar. 31, 2021 | $ 6,769 | $ 59,307 | $ 73,947 | $ (1,217) | $ (8,098) | $ 130,708 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Stockholders' Equity | ||
Cash dividends declared | $ 0.13 | $ 0.12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 5,839 | $ 868 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 0 | 3,300 |
Depreciation expense | 578 | 562 |
Net amortization of investment securities, premiums, and discounts | 418 | 312 |
Change in fair value of mortgage servicing rights | 121 | 275 |
Investment securities (gains) losses, net | (14) | 1 |
Losses (gains) on sales and dispositions of premises and equipment | 4 | (55) |
Gain on sales and dispositions of other real estate | (15) | 0 |
Provision for other real estate owned | 88 | 12 |
Decrease in accrued interest receivable | 152 | 218 |
Increase in cash surrender value - life insurance | (14) | (13) |
Increase in other assets | (1,756) | (312) |
Operating lease liabilities | (79) | (62) |
Decrease in accrued interest payable | (398) | (356) |
Increase (decrease) in other liabilities | 12 | (1,367) |
Origination of mortgage loans held for sale | (65,012) | (16,609) |
Proceeds from the sale of mortgage loans held for sale | 66,272 | 13,170 |
Gain on sale of mortgage loans, net | (2,469) | (419) |
Other, net | (170) | (67) |
Net cash provided by (used in) operating activities | 3,557 | (542) |
Cash flows from investing activities: | ||
Purchase of certificates of deposit in other banks | (245) | (735) |
Proceeds from maturities of certificates of deposit in other banks | 736 | 491 |
Net decrease (increase) in loans | 11,000 | (11,809) |
Purchase of available-for-sale debt securities | (62,297) | (43,984) |
Proceeds from maturities of available-for-sale debt securities | 10,491 | 13,860 |
Proceeds from calls of available-for-sale debt securities | 7,745 | 8,935 |
Proceeds from sales of available-for-sale debt securities | 0 | 681 |
Purchases of FHLB stock | (327) | (1,491) |
Proceeds from sales of FHLB stock | 505 | 2 |
Purchases of premises and equipment | (135) | (369) |
Proceeds from sales of premises and equipment | 12 | 123 |
Proceeds from sales of other real estate and repossessed assets | 108 | 0 |
Net cash used in investing activities | (32,407) | (34,296) |
Cash flows from financing activities: | ||
Net increase in demand deposits | 48,543 | 11,412 |
Net decrease in interest-bearing transaction accounts | 15,193 | 18,037 |
Net decrease in time deposits | (22,974) | (325) |
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase | (3,136) | 3,492 |
Repayment of FHLB advances and other borrowings | (9,060) | (58) |
FHLB advances | 0 | 37,000 |
Purchase of treasury stock | (2,148) | (719) |
Cash dividends paid - common stock | (842) | (753) |
Net cash (used in) provided by financing activities | (4,810) | 32,012 |
Net decrease in cash and cash equivalents | (33,660) | (2,826) |
Cash and cash equivalents, beginning of period | 180,363 | 78,121 |
Cash and cash equivalents, end of period | 146,703 | 75,295 |
Cash paid during the period for: | ||
Interest | 2,109 | 3,639 |
Income taxes | 0 | 0 |
Noncash investing and financing activities: | ||
Other real estate and repossessed assets acquired in settlement of loans | $ 30 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Hawthorn Bancshares, Inc. (the Company) through its subsidiary, Hawthorn Bank (the Bank), provides a broad range of banking services to individual and corporate customers located within the Missouri communities in and surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. The Company is subject to competition from other financial and nonfinancial institutions providing financial products. Additionally, the Company and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of the consolidated financial statements includes all adjustments that, in the opinion of management, are necessary in order to make those statements not misleading. Management is required to make estimates and assumptions, including the determination of the allowance for loan losses, real estate acquired in connection with foreclosure or in satisfaction of loans, and fair values of investment securities available-for-sale that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the Coronavirus Disease 2019 (“COVID-19”) pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic. Actual results could differ from those estimates. The Company’s management has evaluated and did not identify any subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements. Stock Dividend Operating, Accounting and Reporting Considerations related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy, including the United States. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act, along with subsequent relief programs, provided substantial funding to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications – Section 4013 of the CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. See Note 2 Loans and Leases and the Allowance for Credit Losses for more information. ● Paycheck Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s (“SBA”) 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the PPP, including additional funding for first and second draws of PPP loans up to March 31, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extends the program to May 31, 2021. The Company is a participant in the PPP. See Note 2 Loans and Leases and the Allowance for Credit Losses for more information. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. See Note 2 Loans and Leases and the Allowance for Credit Losses for more information. ● Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. ● Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. The Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. These modifications generally involve principal and/or interest payment deferrals for up to six months. These modifications generally meet the criteria of both Section 4013 of the CARES Act and the joint interagency statement, and therefore, the Company does not account for such loan modifications as TDRs. As the COVID-19 pandemic persists in negatively impacting the economy, the Company continues to offer additional loan modifications to borrowers struggling as a result of the pandemic. Similar to the initial modifications granted, the additional round of loan modifications are granted specifically under Section 4013 of the CARES Act and generally involve principal and/or interest payment deferrals for up to an additional six months for commercial and consumer loans, and principal-only deferrals for up to an additional 12 months for selected commercial loans. On August 3, 2020, the Federal Financial Institutions Examination Council on behalf of its members (collectively “the FFIEC members”) issued a joint statement on additional loan accommodations related to the COVID-19 pandemic. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA. Substantially all of the Company’s additional round of loan modifications granted under Section 4013 of the CARES Act are in compliance with the aforementioned FFIEC requirements. Accordingly, the Company does not account for such loan modifications as TDRs. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2021 | |
Loans and Allowances for Loan Losses | |
Loans and Allowance for Loan Losses | (2) Loans and Allowance for Loan Losses Loans Major classifications within the Company’s held for investment loan portfolio at March 31, 2021 and December 31, 2020 is as follows: March 31, December 31, (in thousands) 2021 2020 Commercial, financial, and agricultural (a) $ 251,943 $ 272,918 Real estate construction − 33,962 29,692 Real estate construction − 78,576 78,144 Real estate mortgage − 258,259 262,339 Real estate mortgage − 628,178 617,133 Installment and other consumer 25,267 26,741 Total loans held for investment $ 1,276,185 $ 1,286,967 (a) Includes $56.3 million and $63.3 million SBA PPP loans, net as of March 31, 2021 and December 31, 2020, respectively. The Bank grants real estate, commercial, installment, and other consumer loans to customers located within the Missouri communities surrounding Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. As such, the Bank is susceptible to changes in the economic environment in these communities. The Bank does not have a concentration of credit in any one economic sector. Installment and other consumer loans consist primarily of the financing of automotive vehicles. At March 31, 2021, loans of $552.5 million were pledged to the Federal Home Loan Bank as collateral for borrowings and letters of credit. Allowance for Loan Losses The following table illustrates the changes in the allowance for loan losses by portfolio segment: Three Months Ended March 31, 2021 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 5,121 $ 213 $ 475 $ 2,679 $ 9,354 $ 264 $ 7 $ 18,113 Additions: Provision for loan losses (567) 83 57 (253) 573 13 94 — Deductions: Loans charged off 27 — — — 23 57 — 107 Less recoveries on loans (149) (13) — (168) — (25) — (355) Net loan charge-offs (recoveries) (122) (13) — (168) 23 32 — (248) Balance at end of period $ 4,676 $ 309 $ 532 $ 2,594 $ 9,904 $ 245 $ 101 $ 18,361 Three Months Ended March 31, 2020 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,918 $ 64 $ 369 $ 2,118 $ 6,547 $ 381 $ 80 $ 12,477 Additions: Provision for loan losses 721 53 253 255 2,087 8 (77) 3,300 Deductions: Loans charged off 41 — — 19 22 52 — 134 Less recoveries on loans (25) — — (9) (2) (14) — (50) Net loan charge-offs 16 — — 10 20 38 — 84 Balance at end of period $ 3,623 $ 117 $ 622 $ 2,363 $ 8,614 $ 351 $ 3 $ 15,693 Loans, or portions of loans, are charged off to the extent deemed uncollectible or a loss is confirmed. Loan charge-offs reduce the allowance for loan losses, and recoveries of loans previously charged off are added back to the allowance. If management determines that it is probable that all amounts due on a loan will not be collected under the original terms of the loan agreement, the loan is considered to be impaired. These loans are evaluated individually for impairment, and in conjunction with current economic conditions and loss experience, specific reserves are estimated as further discussed below. Loans not individually evaluated are aggregated by risk characteristics and reserves are recorded using a consistent methodology that considers historical loan loss experience by loan type, delinquencies, current economic conditions, loan risk ratings and industry concentration. These historical loss rates for each risk group are used as the starting point to determine loss rates for measurement purposes. The historical loan loss rates are multiplied by loss emergence periods (LEP) which represent the estimated time period between a borrower first experiencing financial difficulty and the recognition of a loss. Management's look-back period began with loss history in the first quarter 2012 as the starting point through the current quarter and it will continue to include this starting point going forward. The look-back period will continue to be evaluated and will be adjusted once a sustained loss producing downturn is recognized and found to be representative of historical losses expected for the current portfolio. The Company’s methodology includes qualitative risk factors that allow management to adjust its estimates of losses based on the most recent information available and to address other limitations in the quantitative component that is based on historical loss rates. Such risk factors are generally reviewed and updated quarterly, as appropriate, and are adjusted to reflect changes in national and local economic conditions and developments, the nature, volume and terms of loans in the portfolio, including changes in volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, loan concentrations, assessment of trends in collateral values, assessment of changes in the quality of the Company’s internal loan review department, and changes in lending policies and procedures, including underwriting standards and collections, charge-off and recovery practices. When the COVID-19 pandemic surfaced in the first quarter of 2020, management reassessed the calculation of the allowance for loan loss by increasing the economic qualitative factor in order to capture the impact on the credit risk present in the loan portfolio given the economic environment that existed at that time. As of the fourth quarter of 2020, management reassessed the qualitative factor and economic indicators. Enough time had passed so that data after the outbreak would be available and a better interpretation of the impact of the virus on the economy. Management determined that the local market and economy had been able to transition to a functional level while adapting to the new requirements aimed at stopping the spread of the virus and returned to calculating the qualitative adjustment according to the Company's methodology detailed above. Additionally, the funding of $88.4 million and $40.2 million in SBA PPP loans during 2020 and 2021, respectively, required management to assess the methodology that would be adopted in regard to the allowance for loan losses applicable to these loans. As the SBA PPP loans are expected to be mostly paid off in the next six All SBA PPP loans have a 1% interest rate and the Company earns a fee that is based upon a tiered schedule corresponding with the amount of the loan to the borrower, which is deferred and recognized over the life of the loan. Based upon the borrower meeting certain criteria as defined by the CARES Act, the loan may be forgiven by the SBA. The Company reports these loans at their principal amount outstanding, net of unearned income, unamortized deferred loan fee income and loan origination costs. Interest is accrued as earned and loan origination fees and direct costs are deferred and accreted or amortized into interest income, as an adjustment to the yield, over the life of the loan using the level yield method. When a PPP loan is paid off or forgiven by the SBA, the remaining unaccreted or unamortized net origination fees or costs are immediately recognized into income. The following table illustrates the allowance for loan losses and recorded investment by portfolio segment: Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total March 31, 2021 Allowance for loan losses: Individually evaluated for impairment $ 2,134 $ 26 $ 28 $ 256 $ 2,691 $ 9 $ — $ 5,144 Collectively evaluated for impairment 2,542 283 504 2,338 7,213 236 101 13,217 Total $ 4,676 $ 309 $ 532 $ 2,594 $ 9,904 $ 245 $ 101 $ 18,361 Loans outstanding: Individually evaluated for impairment $ 7,408 $ 189 $ 198 $ 3,134 $ 25,647 $ 71 $ — $ 36,647 Collectively evaluated for impairment 244,535 33,773 78,378 255,125 602,531 25,196 — 1,239,538 Total $ 251,943 $ 33,962 $ 78,576 $ 258,259 $ 628,178 $ 25,267 $ — $ 1,276,185 December 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ 2,187 $ 27 $ 28 $ 263 $ 2,594 $ 14 $ — $ 5,113 Collectively evaluated for impairment 2,934 186 447 2,416 6,760 250 7 13,000 Total $ 5,121 $ 213 $ 475 $ 2,679 $ 9,354 $ 264 $ 7 $ 18,113 Loans outstanding: Individually evaluated for impairment $ 7,552 $ 192 $ 200 $ 3,626 $ 25,657 $ 108 $ — $ 37,335 Collectively evaluated for impairment 265,366 29,500 77,944 258,713 591,476 26,633 — 1,249,632 Total $ 272,918 $ 29,692 $ 78,144 $ 262,339 $ 617,133 $ 26,741 $ — $ 1,286,967 Impaired Loans Loans evaluated under ASC 310-10-35 include loans which are individually evaluated for impairment. All other loans are collectively evaluated for impairment under ASC 450-20. Impaired loans individually evaluated for impairment totaled $36.6 million and $37.3 million at March 31, 2021 and December 31, 2020, respectively, and are comprised of loans on non-accrual status and loans which have been classified as troubled debt restructurings (TDRs). The net carrying value of impaired loans is based on the fair values of collateral obtained through independent appraisals or internal evaluations, or by discounting the total expected future cash flows. At March 31, 2021, $31.8 million of impaired loans were evaluated based on the fair value less estimated selling costs of the loans' collateral compared to $32.2 million at December 31, 2020. Once the impairment amount is calculated, a specific reserve allocation is recorded. At March 31, 2021, $5.1 million of the Company’s allowance for loan losses was allocated to impaired loans totaling $36.6 million compared to $5.1 million of the Company’s allowance for loan losses allocated to impaired loans totaling approximately $37.3 million at December 31, 2020. Management determined that $12.6 million, or 34%, of total impaired loans required no reserve allocation at March 31, 2021 compared to $11.9 million, or 32%, at December 31, 2020, primarily due to adequate collateral values , The categories of impaired loans at March 31, 2021 and December 31, 2020 are as follows: March 31, December 31, (in thousands) 2021 2020 Non-accrual loans $ 34,233 $ 34,559 Performing TDRs 2,414 2,776 Total impaired loans $ 36,647 $ 37,335 The following tables provide additional information about impaired loans at March 31, 2021 and December 31, 2020, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves March 31, 2021 With no related allowance recorded: Commercial, financial and agricultural $ 1,837 $ 1,882 $ — Real estate mortgage − 1,275 1,377 — Real estate mortgage − 9,457 9,467 — Total $ 12,569 $ 12,726 $ — With an allowance recorded: Commercial, financial and agricultural $ 5,571 $ 5,645 $ 2,134 Real estate construction − 189 189 26 Real estate construction − 198 251 28 Real estate mortgage − 1,859 2,304 256 Real estate mortgage − 16,190 16,257 2,691 Installment and other consumer 71 75 9 Total $ 24,078 $ 24,721 $ 5,144 Total impaired loans $ 36,647 $ 37,447 $ 5,144 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2020 With no related allowance recorded: Commercial, financial and agricultural $ 1,703 $ 1,731 $ — Real estate mortgage − 1,300 1,395 — Real estate mortgage − 8,943 8,943 — Total $ 11,946 $ 12,069 $ — With an allowance recorded: Commercial, financial and agricultural $ 5,849 $ 6,180 $ 2,187 Real estate construction − 192 192 27 Real estate construction − 200 251 28 Real estate mortgage − 2,326 2,786 263 Real estate mortgage − 16,714 16,787 2,594 Installment and other consumer 108 112 14 Total $ 25,389 $ 26,308 $ 5,113 Total impaired loans $ 37,335 $ 38,377 $ 5,113 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated. Three Months Ended March 31, 2021 2020 Interest Interest Average Recognized Average Recognized Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 1,742 $ 8 $ 1,014 $ — Real estate construction − — — 227 — Real estate mortgage − 1,424 9 1,581 — Real estate mortgage − 9,457 — 1,163 6 Installment and other consumer — — 12 — Total $ 12,623 $ 17 $ 3,997 $ 6 With an allowance recorded: Commercial, financial and agricultural $ 5,696 $ 7 $ 1,195 $ 8 Real estate construction − 190 — — — Real estate construction − 199 — — — Real estate mortgage − 1,958 6 2,550 20 Real estate mortgage − 16,195 7 370 2 Installment and other consumer 85 3 117 6 Total $ 24,323 $ 23 $ 4,232 $ 36 Total impaired loans $ 36,946 $ 40 $ 8,229 $ 42 The recorded investment varies from the unpaid principal balance primarily due to partial charge-offs taken resulting from current appraisals received. The amount recognized as interest income on impaired loans continuing to accrue interest, primarily related to troubled debt restructurings, was $40,000 for the three months ended March 31, 2021 compared to $42,000 for the three months ended March 31, 2020. The average recorded investment in impaired loans is calculated on a monthly basis during the periods reported. Delinquent and Non-Accrual Loans The delinquency status of loans is determined based on the contractual terms of the notes. Borrowers are generally classified as delinquent once payments become 30 days or more past due. The Company’s policy is to discontinue the accrual of interest income on any loan when, in the opinion of management, the ultimate collectability of interest or principal is no longer probable. In general, loans are placed on non-accrual when they become 90 days or more past due. However, management considers many factors before placing a loan on non-accrual, including the delinquency status of the loan, the overall financial condition of the borrower, the progress of management’s collection efforts and the value of the underlying collateral. Subsequent interest payments received on non-accrual loans are applied to principal if any doubt exists as to the collectability of such principal; otherwise, such receipts are recorded as interest income on a cash basis. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial condition of the borrower indicates that the timely collectability of interest and principal is probable and the borrower demonstrates the ability to pay under the terms of the note through a sustained period of repayment performance, which is generally six months. The following table provides aging information for the Company’s past due and non-accrual loans at March 31, 2021 and December 31, 2020. Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total March 31, 2021 Commercial, Financial, and Agricultural $ 245,019 $ 333 $ — $ 6,591 $ 251,943 Real estate construction − 33,773 — — 189 33,962 Real estate construction − 78,378 — — 198 78,576 Real estate mortgage − 255,172 1,170 — 1,917 258,259 Real estate mortgage − 602,502 367 — 25,309 628,178 Installment and Other Consumer 25,181 57 — 29 25,267 Total $ 1,240,025 $ 1,927 $ — $ 34,233 $ 1,276,185 December 31, 2020 Commercial, Financial, and Agricultural $ 265,821 $ 380 $ — $ 6,717 $ 272,918 Real estate construction − 29,500 — — 192 29,692 Real estate construction − 77,944 — — 200 78,144 Real estate mortgage − 259,688 546 — 2,105 262,339 Real estate mortgage − 591,815 4 — 25,314 617,133 Installment and Other Consumer 26,576 117 17 31 26,741 Total $ 1,251,344 $ 1,047 $ 17 $ 34,559 $ 1,286,967 The Company's past due and non-accrual loans at March 31, 2021 and December 31, 2020 do not include $43.5 million and $57.1 million of loans accepting forbearance under the CARES Act, respectively. Their delinquency status will not change through the forbearance period as they are fulfilling the agreement they have made with the Company. Of the total remaining $72.8 million loan modifications under the CARES Act, $29.3 million, are on nonaccrual status at March 31, 2021. Credit Quality The Company categorizes loans into risk categories based upon an internal rating system reflecting management’s risk assessment. Loans are placed on watch substandard troubled debt restructuring TDR) TDRs and are included with all other nonaccrual loans for presentation purposes. It is the Company’s policy to discontinue the accrual of interest income on loans when management believes that the collection of interest or principal is doubtful. The following table presents the risk categories by class at March 31, 2021 and December 31, 2020. Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and other (in thousands) Agricultural Residential Commercial Residential Commercial Consumer Total At March 31, 2021 Watch $ 8,675 $ 540 $ 7,013 $ 15,694 $ 71,375 $ — $ 103,297 Substandard 581 — 2,670 954 1,645 — 5,850 Performing TDRs 817 — — 1,217 338 42 2,414 Non-accrual loans 6,591 189 198 1,917 25,309 29 34,233 Total $ 16,664 $ 729 $ 9,881 $ 19,782 $ 98,667 $ 71 $ 145,794 At December 31, 2020 Watch $ 9,649 $ 545 $ 10,806 $ 15,835 $ 66,936 $ — $ 103,771 Substandard 598 — — 1,002 1,662 — 3,262 Performing TDRs 835 — — 1,521 343 77 2,776 Non-accrual loans 6,717 192 200 2,105 25,314 31 34,559 Total $ 17,799 $ 737 $ 11,006 $ 20,463 $ 94,255 $ 108 $ 144,368 Troubled Debt Restructurings At March 31, 2021, loans classified as TDRs totaled $3.3 million, of which $0.9 million were classified as non-performing TDRs and $2.4 million were classified as performing TDRs. At December 31, 2020, loans classified as TDRs totaled $3.7 million, of which $0.9 million were classified as non-performing TDRs and $2.8 million were classified as performing TDRs. Both performing and nonperforming TDRs are considered impaired loans. When an individual loan is determined to be a TDR, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral less applicable selling costs. Accordingly, specific reserves of $172,000 and $214,000 related to TDRs were allocated to the allowance for loan losses at March 31, 2021 and December 31, 2020, respectively. As provided for by the CARES Act, the Company offered payment modifications to borrowers. At March 31, 2021, $72.8 million, or 5.7% of total loans, remained in some form of a modification. These loan modifications include $28.1 million, or 38.5%, on interest only, $39.6 million, or 54.5%, on full deferral and $5.1 million, or 7.0%, with extended amortization. (See table below titled – Loan Modifications under the CARES Act by NAICS Code.) Total Remaining Loan Modifications under the CARES Act by NAICS Code as of March 31, 2021 % of % of % of Total Remaining Full Total Remaining Total Remaining Interest Loan Deferral Loan Extended Loan Industry Category Only Modifications (1) Modifications Amortizations Modifications Totals (in thousands) Real Estate and Rental and Leasing $ 4,521 6.2 % $ 5,790 8.0 % $ 499 0.7 % $ 10,810 Accommodations and Food Services 10,590 14.5 29,007 39.8 4,592 6.3 44,189 Construction 144 0.2 — — — — 144 Lands and lots 1,553 2.1 — — — — 1,553 Cinemas 1,086 1.5 4,691 6.4 — — 5,777 Arts, Entertainment, Recreation 10,164 14.0 — — — — 10,164 Non-NAICS (Consumer) — 0.0 161 0.3 — — 161 Total modifications $ 28,058 38.5 % $ 39,649 54.5 % $ 5,091 7.0 % $ 72,798 Remaining loan modifications under the CARES Act as a percent of the total loan portfolio (1) Of the $39.6 million loan modifications on full deferral, $29.3 million, or 40.3% of the total remaining loan modifications, were determined to be on nonaccrual status as of March 31, 2021. The following table summarizes loans that were modified as TDRs during the periods indicated. Three Months Ended March 31, 2021 2020 Recorded Investment (1) Recorded Investment (1) Number of Pre- Post- Number of Pre- Post- (in thousands) Contracts Modification Modification Contracts Modification Modification Troubled Debt Restructurings Installment and other consumer — $ — $ — 1 $ 6 $ 5 Total — $ — $ — 1 $ 6 $ 5 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. The Company’s portfolio of loans classified as TDRs include concessions for the borrower given their financial condition such as interest rates below the current market rate, deferring principal payments, and extending maturity dates. There were no loans meeting the TDR criteria that were modified during the three months ended March 31, 2021 and one loan during the three months ended March 31, 2020. The Company considers a TDR to be in default when it is 90 days or more past due under the modified terms, a charge-off occurs, or in the process of foreclosure. There were no loans modified as a TDR that defaulted during any of the three months ended March 31, 2021 and 2020, respectively, and within twelve months of their modification date. See Lending and Credit Management Loans Held For Sale The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company carries them at the lower of cost or fair value. The loans are primarily sold to Freddie Mac, Fannie Mae, PennyMac, and other various secondary market investors. At March 31, 2021, the carrying amount of these loans was $6.3 million compared to $5.1 million and $4.3 million at December 31, 2020 and March 31, 2020, respectively. |
Other Real Estate Acquired in S
Other Real Estate Acquired in Settlement of Loans | 3 Months Ended |
Mar. 31, 2021 | |
Other Real Estate Acquired in Settlement of Loans | |
Other Real Estate Acquired in Settlement of Loans | (3) Other Real Estate Acquired in Settlement of Loans March 31, December 31, (in thousands) 2021 2020 Commercial $ 920 $ 920 Real estate construction - residential — — Real estate construction - commercial 10,987 10,986 Real estate mortgage - residential 137 201 Real estate mortgage - commercial 2,798 2,798 Total $ 14,842 $ 14,905 Less valuation allowance for other real estate owned (2,702) (2,614) Total other real estate owned $ 12,140 $ 12,291 Changes in the net carrying amount of other real estate owned were as follows for the periods indicated: Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 14,905 $ 15,737 Additions 30 — Proceeds from sales (108) — Charge-offs against the valuation allowance for other real estate owned, net — — Net gain on sales 15 — Total other real estate owned $ 14,842 $ 15,737 Less valuation allowance for other real estate owned (2,702) (2,968) Balance at end of period $ 12,140 $ 12,769 At March 31, 2021, $285,000 of consumer mortgage loans secured by residential real estate properties were in the process of foreclosure compared to $287,000 of consumer mortgage loans at December 31, 2020. Activity in the valuation allowance for other real estate owned was as follows for the periods indicated: Three Months Ended March 31, (in thousands) 2021 2020 Balance, beginning of period $ 2,614 $ 2,956 Provision for other real estate owned 88 12 Charge-offs — — Balance, end of period $ 2,702 $ 2,968 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investment Securities | |
Investment Securities | (4) Investment Securities Available for sale securities The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2021 and December 31, 2020 were as follows: Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value March 31, 2021 U.S. Treasury $ 3,018 $ 23 $ — $ 3,041 U.S. government and federal agency obligations 20,161 76 (408) 19,829 U.S. government-sponsored enterprises 22,497 238 (184) 22,551 Obligations of states and political subdivisions 70,324 961 (467) 70,818 Mortgage-backed securities 108,106 1,586 (1,048) 108,644 Other debt securities (a) 11,825 209 (11) 12,023 Bank issued trust preferred securities (a) 1,486 — (250) 1,236 Total available-for-sale securities $ 237,417 $ 3,093 $ (2,368) $ 238,142 December 31, 2020 U.S. Treasury $ 2,772 $ 26 $ — $ 2,798 U.S. government and federal agency obligations 11,732 197 — 11,929 U.S. government-sponsored enterprises 22,495 379 — 22,874 Obligations of states and political subdivisions 56,943 1,801 — 58,744 Mortgage-backed securities 88,357 1,809 (54) 90,112 Other debt securities (a) 10,000 358 (14) 10,344 Bank issued trust preferred securities (a) 1,486 — (257) 1,229 Total available-for-sale securities $ 193,785 $ 4,570 $ (325) $ 198,030 (a) Certain hybrid instruments possessing characteristics typically associated with debt obligations. The Company’s investment securities are classified as available for sale. Agency bonds and notes, Small Business Administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises. Debt securities with carrying values aggregating approximately $197.6 million and $153.9 million at March 31, 2021 and December 31, 2020, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2021, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties. Amortized Fair ( in thousands) Cost Value Due in one year or less $ 4,975 $ 5,011 Due after one year through five years 18,245 18,456 Due after five years through ten years 35,184 35,589 Due after ten years 70,907 70,442 Total 129,311 129,498 Mortgage-backed securities 108,106 108,644 Total available-for-sale securities $ 237,417 $ 238,142 Other securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank (FHLB) stock, and Midwest Independent Bank (MIB) bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations. March 31, December 31, (in thousands) 2021 2020 Other securities: FHLB stock $ 5,992 $ 6,170 MIB stock 151 151 Equity securities with readily determinable fair values 45 32 Total other investment securities $ 6,188 $ 6,353 Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2021 and December 31, 2020 were as follows: Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At March 31, 2021 U.S. Treasury $ 1,022 $ — $ 250 $ — $ 1,272 $ — U.S. government and federal agency obligations 14,447 (408) — — 14,447 (408) U.S. government-sponsored enterprises 5,816 (184) — — 5,816 (184) Obligations of states and political subdivisions 22,580 (467) — — 22,580 (467) Mortgage-backed securities 46,969 (1,048) — — 46,969 (1,048) Other debt securities 2,989 (11) — — 2,989 (11) Bank issued trust preferred securities — — 1,236 (250) 1,236 (250) Total $ 93,823 $ (2,118) $ 1,486 $ (250) $ 95,309 $ (2,368) (in thousands) At December 31, 2020 U.S. Treasury $ 1,015 $ — $ — $ — $ 1,015 $ — Mortgage-backed securities 7,494 (54) — — 7,494 (54) Other debt securities 2,987 (14) — — 2,987 (14) Bank issued trust preferred securities — — 1,229 (257) 1,229 (257) Total $ 11,496 $ (68) $ 1,229 $ (257) $ 12,725 $ (325) The total available for sale portfolio consisted of approximately 342 securities at March 31, 2021. The portfolio included 87 securities having an aggregate fair value of $95.3 million that were in a loss position at March 31, 2021. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $1.5 million at fair value at March 31, 2021. The $2.4 million aggregate unrealized loss included in accumulated other comprehensive loss at March 31, 2021 was caused by interest rate fluctuations. The total available for sale portfolio consisted of approximately 308 securities at December 31, 2020. The portfolio included 10 securities having an aggregate fair value of $12.7 million that were in a loss position at December 31, 2020. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $1.2 million at fair value at December 31, 2020. The $325,000 aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2020 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at March 31, 2021 and December 31, 2020, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities. The following table presents the gross realized gains and losses from sales and calls of available-for-sale securities, as well as gains and losses on equity securities from fair value adjustments which have been recognized in earnings: Three Months Ended March 31, (in thousands) 2021 2020 Investment securities gains (losses), net Available for sale securities: Gross realized gains $ 2 $ — Gross realized losses — — Other-than-temporary impairment recognized — — Other investment securities: Fair value adjustments, net 12 (1) Investment securities gains (losses), net $ 14 $ (1) |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets | |
Intangible Assets | (5) Intangible Assets Mortgage Servicing Rights At March 31, 2021, the Company was servicing approximately $288.9 million of loans sold to the secondary market compared to $292.7 million at December 31, 2020, and $270.6 million at March 31, 2020. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold were $193,000 for the three months ended March 31, 2021, compared to $188,000 for the three months ended March 31, 2020. The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated. Three Months Ended March 31, (in thousands) 2021 2020 Balance at beginning of period $ 2,445 $ 2,482 Originated mortgage servicing rights 170 67 Changes in fair value: Due to changes in model inputs and assumptions (1) 22 (198) Other changes in fair value (2) (143) (77) Total changes in fair value (121) (275) Balance at end of period $ 2,494 $ 2,274 (1) The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time. The following key data and assumptions were used in estimating the fair value of the Company’s MSRs as of March 31, 2021 and 2020, respectively: Three Months Ended March 31, 2021 2020 Weighted average constant prepayment rate 15.04 % 15.18 % Weighted average note rate 3.47 % 3.91 % Weighted average discount rate 7.75 % 8.25 % Weighted average expected life (in years) 5.0 4.4 |
Federal funds purchased and sec
Federal funds purchased and securities sold under agreements to repurchase | 3 Months Ended |
Mar. 31, 2021 | |
Federal funds purchased and securities sold under agreements to repurchase | |
Federal funds purchased and securities sold under agreements to repurchase | (6) Federal funds purchased and securities sold under agreements to repurchase March 31, December 31, (in thousands) 2021 2020 Federal funds purchased $ — $ — Repurchase agreements 42,018 45,154 Total $ 42,018 $ 45,154 The Company offers a sweep account program whereby amounts in excess of an established limit are “swept” from the customer’s demand deposit account on a daily basis into retail repurchase agreements pursuant to individual repurchase agreements between the Company and its customers . . Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At March 31, 2021 U.S. government-sponsored enterprises $ 8,757 $ — $ — $ 8,757 Mortgage-backed securities 33,261 — — 33,261 Total $ 42,018 $ — $ — $ 42,018 At December 31, 2020 U.S. government and federal agency obligations $ 2,728 $ — $ — $ 2,728 U.S. government-sponsored enterprises 15,533 — — 15,533 Mortgage-backed securities 26,893 — — 26,893 Total $ 45,154 $ — $ — $ 45,154 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Leases | (7) Leases The Company's leases primarily consist of office space and bank branches with remaining lease terms of generally 1 respectively. As of March 31, 2021, the weighted-average remaining lease term on these operating leases is approximately 7.3 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.0%. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities. Currently, the Company does not have any finance leases. The ROU assets are included in premises and equipment, net on the consolidated balance sheets. Operating lease ROU assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income. The operating lease cost was $100,000 for the three months ended March 31, 2021 compared to $86,000 for the three months ended March 31, 2020. At adoption of ASU 2016-02 on January 1, 2019, lease and non-lease components of new lease agreements are accounted for separately. Lease components include fixed payments including rent, real estate taxes and insurance costs and non-lease components include common-area maintenance costs. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating lease expense for these leases was $13,000 for the three months ended March 31, 2021 compared to $35,000 for the three months ended March 31, 2020. The table below summarizes the maturity of remaining operating lease liabilities: Operating Lease payments due in: Lease (in thousands) 2021 (excluding 3 months ending March 31, 2021) $ 276 2022 367 2023 366 2024 258 2025 257 Thereafter 830 Total lease payments 2,354 Less imputed interest (296) Total lease liabilities, as reported $ 2,058 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Income taxes | (8) Income Taxes Income taxes as a percentage of earnings before income taxes as reported in the consolidated financial statements were 18.9% for the three months ended March 31, 2021 compared to 15.3% for the three months ended March 31, 2020, respectively. The increase in the effective tax rate for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 was primarily attributable to the increase in earnings. The effective tax rate for each of the three months ended March 31, 2021 and 2020, respectively, is lower than the U.S. federal statutory rate of 21% primarily due to tax-free revenues. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the appropriate character during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning initiatives in making this assessment. In management's opinion, the Company will more likely than not realize the benefits of its deferred tax assets and, therefore, has not established a valuation allowance against its deferred tax assets as of March 31, 2021. Management arrived at this conclusion based upon the level of historical taxable income and projections for future taxable income of the appropriate character over the periods in which the deferred tax assets are deductible. The Company follows ASC Topic 740, Income Taxes, . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | (9) Stockholders’ Equity Accumulated Other Comprehensive Income (Loss) The following details the change in the components of the Company’s accumulated other comprehensive income (loss) for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Accumulated Unrecognized Net Other Unrealized Pension and Comprehensive Gains (Losses) Postretirement Income (in thousands) on Securities (1) Costs (2) (Loss) Balance at beginning of period $ 3,353 $ (1,825) $ 1,528 Other comprehensive income, before reclassifications (3,518) 45 (3,473) Amounts reclassified from accumulated other comprehensive (loss) income (2) — (2) Current period other comprehensive income (loss), before tax (3,520) 45 (3,475) Income tax benefit (expense) 740 (10) 730 Current period other comprehensive income (loss), net of tax (2,780) 35 (2,745) Balance at end of period $ 573 $ (1,790) $ (1,217) Three Months Ended March 31, 2020 Accumulated Unrecognized Net Other Unrealized Pension and Comprehensive Gains (Losses) Postretirement Income (in thousands) on Securities (1) Costs (2) (Loss) Balance at beginning of period $ (23) $ (3,732) $ (3,755) Other comprehensive income, before reclassifications 2,760 67 2,827 Amounts reclassified from accumulated other comprehensive income (loss) — — — Current period other comprehensive income, before tax 2,760 67 2,827 Income tax expense (580) (14) (594) Current period other comprehensive income, net of tax 2,180 53 2,233 Balance at end of period $ 2,157 $ (3,679) $ (1,522) (1) The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in investment securities gains (losses), net in the consolidated statements of income. (2) The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Employee Benefit Plans | |
Employee Benefit Plans | (10) Employee Benefit Plans Employee Benefits Employee benefits charged to operating expenses are summarized in the table below for the periods indicated. Three Months Ended March 31, (in thousands) 2021 2020 Payroll taxes $ 435 $ 389 Medical plans 450 427 401(k) match and profit sharing 499 306 Periodic pension cost 416 464 Other 4 23 Total employee benefits $ 1,804 $ 1,609 The Company’s profit-sharing plan includes a matching 401(k) portion, in which the Company matches the first 3% of eligible employee contributions. The Company makes annual contributions in an amount up to 6% of income before income taxes and before contributions to the profit-sharing and pension plans for all participants, limited to the maximum amount deductible for federal income tax purposes, for each of the periods shown. Other Plans On November 7, 2018, the Board of Directors of the Company adopted a supplemental executive retirement plan (SERP) which became effective on January 1, 2018. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment or death. As of March 31, 2021, the accrued liability was $1.1 million and the expense for the three months ended March 31, 2021 and 2020 was $97,000 and $80,000, respectively, and is recognized over the required service period. Pension The Company provides a noncontributory defined benefit pension plan for all full-time eligible employees. Beginning January 1, 2018 and for all retrospective periods presented, the Company adopted the guidance under ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Effective July 1, 2017, the Company amended the pension plan to effectuate a “soft freeze” such that no individual hired (or rehired in the case of a former employee) by the Company after September 30, 2017, whether or not such individual is or was a vested member in the plan, will be eligible to be an active member and be entitled to accrue any benefits under the plan. Components of Net Pension Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income The following items are components of net pension cost for the periods indicated: Pension Benefits (in thousands) 2021 2020 Service cost - benefits earned during the year $ 1,663 $ 1,857 Interest costs on projected benefit obligations (a) 1,023 1,159 Expected return on plan assets (a) (1,825) (1,572) Expected administrative expenses (a) 104 110 Amortization of prior service cost (a) — 50 Amortization of unrecognized net loss (a) 181 218 Net periodic pension cost $ 1,146 $ 1,822 (a) The components of net periodic pension cost other than the service cost component are included in other non-interest expense. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the Plans. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Share | |
Earnings per Share | (11) Earnings per Share Stock Dividend On July 1, 2020, the Company paid a special stock dividend of 4% to common shareholders of record at the close of business on June 15, 2020. For all periods presented, share information, including basic and diluted earnings per share, has been adjusted retroactively to reflect this change. Basic earnings per share is computed by dividing income available to shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all dilutive potential shares that were outstanding during the year. Presented below is a summary of the components used to calculate basic and diluted earnings per common share, which have been restated for all stock dividends: Three Months Ended March 31, (dollars in thousands, except per share data) 2021 2020 Basic earnings per share: Net income available to shareholders $ 5,839 $ 868 Average shares outstanding 6,362,869 6,510,189 Basic earnings per share $ 0.92 $ 0.13 Diluted earnings per share: Net income available to shareholders $ 5,839 $ 868 Average shares outstanding 6,362,869 6,510,189 Effect of dilutive stock options — — Average shares outstanding including dilutive stock options 6,362,869 6,510,189 Diluted earnings per share $ 0.92 0.13 Under the treasury stock method, outstanding stock options are dilutive when the average market price of the Company’s common stock, when combined with the effect of any unamortized compensation expense, exceeds the option price during the period, except when the Company has a loss from continuing operations available to shareholders. In addition, proceeds from the assumed exercise of dilutive options along with the related tax benefit are assumed to be used to repurchase common shares at the average market price of such stock during the period. There were no shares for the three months ended March 31, 2021 that were omitted from the computation of diluted earnings per share as a result of being considered anti-dilutive. Repurchase Program In 2019, the Company's Board of Directors authorized the purchase of up to $5.0 million market value of the Company's common stock. Management was given discretion to determine the number and pricing of the shares to be purchased, as well as, the timing of any such purchases. During the three months ended March 31, 2021 the Company repurchased 117,632 shares at an average cost of $18.26 per share totaling $2.1 million. As of March 31, 2021, $1.9 million remained available for the repurchase of shares pursuant to the share repurchase authorization. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | (12) Fair Value Measurements Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows. The fair value hierarchy is as follows: Level 1 – Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 – Inputs are unobservable inputs for the asset or liability and significant to the fair value. These may be internally developed using the Company’s best information and assumptions that a market participant would consider. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Nonfinancial assets measured at fair value on a nonrecurring basis would include foreclosed real estate, long-lived assets, and core deposit intangible assets, which are reviewed when circumstances or other events indicate that impairment may have occurred. Valuation Methods for Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Available-for-Sale Securities The fair value measurements of the Company’s investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source by management each quarter for reasonableness. Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. The Company uses level 1 inputs to value equity securities that are traded in active markets. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment. Equity securities that are not actively traded are classified in level 2. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on the discounted value of estimated future cash flows utilizing contractual cash flows, servicing rate, constant prepayment rate, servicing cost, and discount rate factors. Accordingly, the fair value is estimated based on a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates, and other ancillary income, including late fees. The valuation models estimate the present value of estimated future net servicing income. The Company classifies its servicing rights as Level 3. Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2021 Assets: U.S. Treasury $ 3,041 $ 3,041 — $ — U.S. government and federal agency obligations 19,829 — 19,829 — U.S. government-sponsored enterprises 22,551 — 22,551 — Obligations of states and political subdivisions 70,818 — 70,818 — Mortgage-backed securities 108,644 — 108,644 — Other debt securities 12,023 — 12,023 — Bank-issued trust preferred securities 1,236 — 1,236 — Equity securities 45 45 — — Mortgage servicing rights 2,494 — — 2,494 Total $ 240,681 $ 3,086 $ 235,101 $ 2,494 December 31, 2020 Assets: U.S. Treasury $ 2,798 $ 2,798 — $ — U.S. government and federal agency obligations 11,929 — 11,929 — U.S. government-sponsored enterprises 22,874 — 22,874 — Obligations of states and political subdivisions 58,744 — 58,744 — Mortgage-backed securities 90,112 — 90,112 — Other debt securities 10,344 — 10,344 — Bank-issued trust preferred securities 1,229 — 1,229 — Equity securities 32 32 — — Mortgage servicing rights 2,445 — — 2,445 Total $ 200,507 $ 2,830 $ 195,232 $ 2,445 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements Using (Level 3) Mortgage Servicing Rights Three Months Ended March 31, (in thousands) 2021 2020 Balance at beginning of period $ 2,445 $ 2,482 Total (losses) or gains (realized/unrealized): Included in earnings (121) (275) Included in other comprehensive income — — Purchases — — Sales — — Issues 170 67 Settlements — — Balance at end of period $ 2,494 $ 2,274 Valuation methods for Assets and Liabilities measured at fair value on a nonrecurring basis Following is a description of the Company’s valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Collateral dependent impaired loans While the overall loan portfolio is not carried at fair value, the Company periodically records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for loan losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. In determining the value of real estate collateral, the Company relies on external and internal appraisals of property values depending on the size and complexity of the real estate collateral. The Company maintains staff that is trained to perform in-house evaluations and also review third party appraisal reports for reasonableness. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists. Values of all loan collateral are regularly reviewed by senior loan committee. Because many of these inputs are not observable, the measurements are classified as Level 3. As of March 31, 2021, the Company identified $31.8 million in collateral dependent impaired loans that had specific allowances for losses aggregating $4.7 million. Related to these loans, there were $23,000 in charge-offs recorded during the three months ended March 31, 2021. As of March 31, 2020 the Company identified $5.8 million in collateral dependent impaired loans that had specific allowances for losses aggregating $0.2 million. Related to these loans, there were $55,000 in charge-offs recorded during the three months ended March 31, 2020. Other Real Estate and Foreclosed Assets Other real estate owned (OREO) and foreclosed assets consisted of loan collateral that has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including autos, manufactured homes, and construction equipment. Subsequent to foreclosure, these assets initially are carried at fair value of the collateral less estimated selling costs. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on the Company’s historical knowledge, changes in market conditions from the time of appraisal or other information available. During the holding period, valuations are updated periodically, and the assets may be written down to reflect a new cost basis. Because many of these inputs are not observable, the measurements are classified as Level 3. Fair Value Measurements Using Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* March 31, 2021 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 4,188 $ — $ — $ 4,188 $ — Real estate mortgage - residential 403 — — 403 — Real estate mortgage - commercial 22,484 — — 22,484 (23) Total $ 27,075 $ — $ — $ 27,075 $ (23) Other real estate and repossessed assets $ 12,140 $ — $ — $ 12,140 $ (73) March 31, 2020 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 2,422 $ — $ — $ 2,422 $ — Real estate construction - commercial 408 — — 408 — Real estate mortgage - residential 1,921 — — 1,921 (19) Real estate mortgage - commercial 827 — — 827 (22) Installment and other consumer 12 — — 12 (14) Total $ 5,590 $ — $ — $ 5,590 $ (55) Other real estate and repossessed assets $ 12,769 $ — $ — $ 12,769 $ (12) * Total losses reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | (13) Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, and consumer. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans, or exit price, is estimated by using the future value of discounted cash flows using comparable market rates for similar types of loan products and adjusted for market factors. The discount rates used are estimated using comparable market rates for similar types of loan products adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments. Loans Held for Sale Loans originated and intended to be sold in the secondary market, generally 1-4 family residential mortgage loans, are carried, in aggregate, at the lower of cost or estimated fair value. The estimated fair value measurements of loans held for sale are management's best estimate of market value, which is primarily based on quoted market prices for similar loans in the secondary market. Investment Securities A detailed description of the fair value measurement of the debt instruments in the available-for-sale sections of the investment security portfolio is provided in the Fair Value Measurement Investment Securities Other investment securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank (FHLB) stock, and Midwest Independent Bank (MIB) bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations. Equity securities that are not actively traded are classified in level 2. Equity securities with readily determinable fair values are recorded at fair value, with changes in fair value reflected in earnings. Equity securities that do not have readily determinable fair values are carried at cost and are periodically assessed for impairment. The Company uses level 1 inputs to value equity securities that are traded in active markets. Federal Funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold, interest earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold classified as short-term generally mature in 90 days or less. Certificates of Deposit in other banks Certificates of deposit are other investments made by the Company with other financial institutions that are carried at cost which is equal to fair value. Cash Surrender Value - Life Insurance The fair value of Bank owned life insurance (BOLI) approximates the carrying amount. Upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Federal funds purchased and Securities Sold under Agreements to Repurchase For Federal funds purchased and securities sold under agreements to repurchase, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash-flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. Operating Lease Liabilities The fair value of operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the lease commencement date. A summary of the carrying amounts and fair values of the Company’s financial instruments at March 31, 2021 and December 31, 2020 is as follows: March 31, 2021 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant March 31, 2021 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 18,496 $ 18,496 $ 18,496 $ — $ — Federal funds sold and overnight interest-bearing deposits 128,207 128,207 128,207 — — Certificates of deposit in other banks 8,897 8,897 8,897 — — Available for sale securities 238,142 238,142 3,041 235,101 — Other investment securities 6,188 6,188 45 6,143 — Loans, net 1,257,824 1,283,560 — — 1,283,560 Loans held for sale 6,308 6,308 — — 6,308 Cash surrender value - life insurance 2,465 2,465 — 2,465 — Accrued interest receivable 6,488 6,488 6,488 — — Total $ 1,673,015 $ 1,698,751 $ 165,174 $ 243,709 $ 1,289,868 Liabilities: Deposits: Non-interest bearing demand $ 431,035 $ 431,035 $ 431,035 $ — $ — Savings, interest checking and money market 708,615 708,615 708,615 — — Time deposits 254,332 256,047 — — 256,047 Federal funds purchased and securities sold under agreements to repurchase 42,018 42,018 42,018 — — Federal Home Loan Bank advances and other borrowings 97,614 99,750 — 99,750 — Subordinated notes 49,486 41,176 — 41,176 — Operating lease liabilities 2,058 2,058 — 2,058 — Accrued interest payable 439 439 439 — — Total $ 1,585,597 $ 1,581,138 $ 1,182,107 $ 142,984 $ 256,047 December 31, 2020 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2020 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 19,235 $ 19,235 $ 19,235 $ — $ — Federal funds sold and overnight interest-bearing deposits 161,128 161,128 161,128 — — Certificates of deposit in other banks 9,376 9,376 9,376 — — Available-for-sale securities 198,030 198,030 2,798 195,232 — Other investment securities 6,353 6,353 32 6,321 — Loans, net 1,268,854 1,288,677 — — 1,288,677 Loans held for sale 5,099 5,279 — — 5,279 Cash surrender value - life insurance 2,451 2,451 — 2,451 — Accrued interest receivable 6,640 6,640 6,640 — — $ 1,677,166 $ 1,697,169 $ 199,209 $ 204,004 $ 1,293,956 Liabilities: Deposits: Non-interest bearing demand $ 382,492 $ 382,492 $ 382,492 $ — $ — Savings, interest checking and money market 723,808 723,808 723,808 — — Time deposits 277,306 279,569 — — 279,569 Federal funds purchased and securities sold under agreements to repurchase 45,154 45,154 45,154 — — Federal Home Loan Bank advances and other borrowings 106,674 110,121 — 110,121 — Subordinated notes 49,486 40,929 — 40,929 — Operating lease liabilities 2,137 2,137 — 2,137 — Accrued interest payable 837 837 837 — — $ 1,587,894 $ 1,585,047 $ 1,152,291 $ 153,187 $ 279,569 Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | (14) Commitments and Contingencies The Company issues financial instruments with off-balance-sheet risk in the normal course of business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At March 31, 2021, no amounts have been accrued for any estimated losses for these financial instruments. The contractual amount of off-balance-sheet financial instruments were as follows as of the dates indicated: March 31, December 31, (in thousands) 2021 2020 Commitments to extend credit $ 350,465 $ 264,528 Commitments to originate residential first and second mortgage loans 50,340 51,270 Standby letters of credit 20,810 125,800 Total 421,615 441,598 Commitments Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain of the commitments and letters of credit are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, furniture and equipment, and real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support contractual obligations of the Company’s customers. The approximate remaining term of standby letters of credit range from one month to five years at March 31, 2021. Pending Litigation The Company and its subsidiaries are defendants in various legal actions incidental to the Company’s past and current business activities. Based on the Company’s analysis, and considering the inherent uncertainties associated with litigation, management does not believe that it is reasonably possible that these legal actions will materially adversely affect the Company’s consolidated financial condition or results of operations in the near term. The Company records a loss accrual for all legal matters for which it deems a loss is probable and can be reasonably estimated. Some legal matters, which are at early stages in the legal process, have not yet progressed to the point where a loss is deemed probable or an amount can be estimated. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Stock Dividend | Stock Dividend |
Operating, Accounting and Reporting Considerations related to COVID-19 | Operating, Accounting and Reporting Considerations related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy, including the United States. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act, along with subsequent relief programs, provided substantial funding to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications – Section 4013 of the CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. See Note 2 Loans and Leases and the Allowance for Credit Losses for more information. ● Paycheck Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s (“SBA”) 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the PPP, including additional funding for first and second draws of PPP loans up to March 31, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extends the program to May 31, 2021. The Company is a participant in the PPP. See Note 2 Loans and Leases and the Allowance for Credit Losses for more information. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. See Note 2 Loans and Leases and the Allowance for Credit Losses for more information. ● Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. ● Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. The Company began offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. These modifications generally involve principal and/or interest payment deferrals for up to six months. These modifications generally meet the criteria of both Section 4013 of the CARES Act and the joint interagency statement, and therefore, the Company does not account for such loan modifications as TDRs. As the COVID-19 pandemic persists in negatively impacting the economy, the Company continues to offer additional loan modifications to borrowers struggling as a result of the pandemic. Similar to the initial modifications granted, the additional round of loan modifications are granted specifically under Section 4013 of the CARES Act and generally involve principal and/or interest payment deferrals for up to an additional six months for commercial and consumer loans, and principal-only deferrals for up to an additional 12 months for selected commercial loans. On August 3, 2020, the Federal Financial Institutions Examination Council on behalf of its members (collectively “the FFIEC members”) issued a joint statement on additional loan accommodations related to the COVID-19 pandemic. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA. Substantially all of the Company’s additional round of loan modifications granted under Section 4013 of the CARES Act are in compliance with the aforementioned FFIEC requirements. Accordingly, the Company does not account for such loan modifications as TDRs. |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans and Allowances for Loan Losses | |
Schedule of summary of loans, by major class within the Company's loan portfolio | March 31, December 31, (in thousands) 2021 2020 Commercial, financial, and agricultural (a) $ 251,943 $ 272,918 Real estate construction − 33,962 29,692 Real estate construction − 78,576 78,144 Real estate mortgage − 258,259 262,339 Real estate mortgage − 628,178 617,133 Installment and other consumer 25,267 26,741 Total loans held for investment $ 1,276,185 $ 1,286,967 (a) Includes $56.3 million and $63.3 million SBA PPP loans, net as of March 31, 2021 and December 31, 2020, respectively. |
Schedule of summary of the allowance for loan losses | Three Months Ended March 31, 2021 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 5,121 $ 213 $ 475 $ 2,679 $ 9,354 $ 264 $ 7 $ 18,113 Additions: Provision for loan losses (567) 83 57 (253) 573 13 94 — Deductions: Loans charged off 27 — — — 23 57 — 107 Less recoveries on loans (149) (13) — (168) — (25) — (355) Net loan charge-offs (recoveries) (122) (13) — (168) 23 32 — (248) Balance at end of period $ 4,676 $ 309 $ 532 $ 2,594 $ 9,904 $ 245 $ 101 $ 18,361 Three Months Ended March 31, 2020 Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total Balance at beginning of period $ 2,918 $ 64 $ 369 $ 2,118 $ 6,547 $ 381 $ 80 $ 12,477 Additions: Provision for loan losses 721 53 253 255 2,087 8 (77) 3,300 Deductions: Loans charged off 41 — — 19 22 52 — 134 Less recoveries on loans (25) — — (9) (2) (14) — (50) Net loan charge-offs 16 — — 10 20 38 — 84 Balance at end of period $ 3,623 $ 117 $ 622 $ 2,363 $ 8,614 $ 351 $ 3 $ 15,693 |
Schedule of allowance for loan losses and recorded investment by portfolio segment | Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, and Construction - Construction - Mortgage - Mortgage - and Other Un- (in thousands) Agricultural Residential Commercial Residential Commercial Consumer allocated Total March 31, 2021 Allowance for loan losses: Individually evaluated for impairment $ 2,134 $ 26 $ 28 $ 256 $ 2,691 $ 9 $ — $ 5,144 Collectively evaluated for impairment 2,542 283 504 2,338 7,213 236 101 13,217 Total $ 4,676 $ 309 $ 532 $ 2,594 $ 9,904 $ 245 $ 101 $ 18,361 Loans outstanding: Individually evaluated for impairment $ 7,408 $ 189 $ 198 $ 3,134 $ 25,647 $ 71 $ — $ 36,647 Collectively evaluated for impairment 244,535 33,773 78,378 255,125 602,531 25,196 — 1,239,538 Total $ 251,943 $ 33,962 $ 78,576 $ 258,259 $ 628,178 $ 25,267 $ — $ 1,276,185 December 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ 2,187 $ 27 $ 28 $ 263 $ 2,594 $ 14 $ — $ 5,113 Collectively evaluated for impairment 2,934 186 447 2,416 6,760 250 7 13,000 Total $ 5,121 $ 213 $ 475 $ 2,679 $ 9,354 $ 264 $ 7 $ 18,113 Loans outstanding: Individually evaluated for impairment $ 7,552 $ 192 $ 200 $ 3,626 $ 25,657 $ 108 $ — $ 37,335 Collectively evaluated for impairment 265,366 29,500 77,944 258,713 591,476 26,633 — 1,249,632 Total $ 272,918 $ 29,692 $ 78,144 $ 262,339 $ 617,133 $ 26,741 $ — $ 1,286,967 |
Schedule of impaired loans | March 31, December 31, (in thousands) 2021 2020 Non-accrual loans $ 34,233 $ 34,559 Performing TDRs 2,414 2,776 Total impaired loans $ 36,647 $ 37,335 The following tables provide additional information about impaired loans at March 31, 2021 and December 31, 2020, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided. Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves March 31, 2021 With no related allowance recorded: Commercial, financial and agricultural $ 1,837 $ 1,882 $ — Real estate mortgage − 1,275 1,377 — Real estate mortgage − 9,457 9,467 — Total $ 12,569 $ 12,726 $ — With an allowance recorded: Commercial, financial and agricultural $ 5,571 $ 5,645 $ 2,134 Real estate construction − 189 189 26 Real estate construction − 198 251 28 Real estate mortgage − 1,859 2,304 256 Real estate mortgage − 16,190 16,257 2,691 Installment and other consumer 71 75 9 Total $ 24,078 $ 24,721 $ 5,144 Total impaired loans $ 36,647 $ 37,447 $ 5,144 Unpaid Recorded Principal Specific (in thousands) Investment Balance Reserves December 31, 2020 With no related allowance recorded: Commercial, financial and agricultural $ 1,703 $ 1,731 $ — Real estate mortgage − 1,300 1,395 — Real estate mortgage − 8,943 8,943 — Total $ 11,946 $ 12,069 $ — With an allowance recorded: Commercial, financial and agricultural $ 5,849 $ 6,180 $ 2,187 Real estate construction − 192 192 27 Real estate construction − 200 251 28 Real estate mortgage − 2,326 2,786 263 Real estate mortgage − 16,714 16,787 2,594 Installment and other consumer 108 112 14 Total $ 25,389 $ 26,308 $ 5,113 Total impaired loans $ 37,335 $ 38,377 $ 5,113 The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated. Three Months Ended March 31, 2021 2020 Interest Interest Average Recognized Average Recognized Recorded For the Recorded For the (in thousands) Investment Period Ended Investment Period Ended With no related allowance recorded: Commercial, financial and agricultural $ 1,742 $ 8 $ 1,014 $ — Real estate construction − — — 227 — Real estate mortgage − 1,424 9 1,581 — Real estate mortgage − 9,457 — 1,163 6 Installment and other consumer — — 12 — Total $ 12,623 $ 17 $ 3,997 $ 6 With an allowance recorded: Commercial, financial and agricultural $ 5,696 $ 7 $ 1,195 $ 8 Real estate construction − 190 — — — Real estate construction − 199 — — — Real estate mortgage − 1,958 6 2,550 20 Real estate mortgage − 16,195 7 370 2 Installment and other consumer 85 3 117 6 Total $ 24,323 $ 23 $ 4,232 $ 36 Total impaired loans $ 36,946 $ 40 $ 8,229 $ 42 |
Schedule of aging information for the Company's past due and non-accrual loans | Current or 90 Days Less Than Past Due 30 Days 30 - 89 Days And Still (in thousands) Past Due Past Due Accruing Non-Accrual Total March 31, 2021 Commercial, Financial, and Agricultural $ 245,019 $ 333 $ — $ 6,591 $ 251,943 Real estate construction − 33,773 — — 189 33,962 Real estate construction − 78,378 — — 198 78,576 Real estate mortgage − 255,172 1,170 — 1,917 258,259 Real estate mortgage − 602,502 367 — 25,309 628,178 Installment and Other Consumer 25,181 57 — 29 25,267 Total $ 1,240,025 $ 1,927 $ — $ 34,233 $ 1,276,185 December 31, 2020 Commercial, Financial, and Agricultural $ 265,821 $ 380 $ — $ 6,717 $ 272,918 Real estate construction − 29,500 — — 192 29,692 Real estate construction − 77,944 — — 200 78,144 Real estate mortgage − 259,688 546 — 2,105 262,339 Real estate mortgage − 591,815 4 — 25,314 617,133 Installment and Other Consumer 26,576 117 17 31 26,741 Total $ 1,251,344 $ 1,047 $ 17 $ 34,559 $ 1,286,967 |
Schedule of risk categories by class | Commercial, Real Estate Real Estate Real Estate Real Estate Installment Financial, & Construction - Construction - Mortgage - Mortgage - and other (in thousands) Agricultural Residential Commercial Residential Commercial Consumer Total At March 31, 2021 Watch $ 8,675 $ 540 $ 7,013 $ 15,694 $ 71,375 $ — $ 103,297 Substandard 581 — 2,670 954 1,645 — 5,850 Performing TDRs 817 — — 1,217 338 42 2,414 Non-accrual loans 6,591 189 198 1,917 25,309 29 34,233 Total $ 16,664 $ 729 $ 9,881 $ 19,782 $ 98,667 $ 71 $ 145,794 At December 31, 2020 Watch $ 9,649 $ 545 $ 10,806 $ 15,835 $ 66,936 $ — $ 103,771 Substandard 598 — — 1,002 1,662 — 3,262 Performing TDRs 835 — — 1,521 343 77 2,776 Non-accrual loans 6,717 192 200 2,105 25,314 31 34,559 Total $ 17,799 $ 737 $ 11,006 $ 20,463 $ 94,255 $ 108 $ 144,368 |
Schedule of loan modifications provided for under the CARES Act | Total Remaining Loan Modifications under the CARES Act by NAICS Code as of March 31, 2021 % of % of % of Total Remaining Full Total Remaining Total Remaining Interest Loan Deferral Loan Extended Loan Industry Category Only Modifications (1) Modifications Amortizations Modifications Totals (in thousands) Real Estate and Rental and Leasing $ 4,521 6.2 % $ 5,790 8.0 % $ 499 0.7 % $ 10,810 Accommodations and Food Services 10,590 14.5 29,007 39.8 4,592 6.3 44,189 Construction 144 0.2 — — — — 144 Lands and lots 1,553 2.1 — — — — 1,553 Cinemas 1,086 1.5 4,691 6.4 — — 5,777 Arts, Entertainment, Recreation 10,164 14.0 — — — — 10,164 Non-NAICS (Consumer) — 0.0 161 0.3 — — 161 Total modifications $ 28,058 38.5 % $ 39,649 54.5 % $ 5,091 7.0 % $ 72,798 |
Schedule of summary of loans that were modified as TDRs | Three Months Ended March 31, 2021 2020 Recorded Investment (1) Recorded Investment (1) Number of Pre- Post- Number of Pre- Post- (in thousands) Contracts Modification Modification Contracts Modification Modification Troubled Debt Restructurings Installment and other consumer — $ — $ — 1 $ 6 $ 5 Total — $ — $ — 1 $ 6 $ 5 (1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate Acquired in_2
Other Real Estate Acquired in Settlement of Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Real Estate Acquired in Settlement of Loans | |
Schedule of summary of real estate and other assets acquired in settlement of loans | March 31, December 31, (in thousands) 2021 2020 Commercial $ 920 $ 920 Real estate construction - residential — — Real estate construction - commercial 10,987 10,986 Real estate mortgage - residential 137 201 Real estate mortgage - commercial 2,798 2,798 Total $ 14,842 $ 14,905 Less valuation allowance for other real estate owned (2,702) (2,614) Total other real estate owned $ 12,140 $ 12,291 |
Schedule of changes in the net carrying amount of other real estate owned | Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 14,905 $ 15,737 Additions 30 — Proceeds from sales (108) — Charge-offs against the valuation allowance for other real estate owned, net — — Net gain on sales 15 — Total other real estate owned $ 14,842 $ 15,737 Less valuation allowance for other real estate owned (2,702) (2,968) Balance at end of period $ 12,140 $ 12,769 |
Schedule of summary of activity in valuation allowance for other real estate owned | Three Months Ended March 31, (in thousands) 2021 2020 Balance, beginning of period $ 2,614 $ 2,956 Provision for other real estate owned 88 12 Charge-offs — — Balance, end of period $ 2,702 $ 2,968 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investment Securities | |
Schedule of amortized cost and fair value of debt securities available-for-sale | Total Amortized Gross Unrealized Fair ( in thousands) Cost Gains Losses Value March 31, 2021 U.S. Treasury $ 3,018 $ 23 $ — $ 3,041 U.S. government and federal agency obligations 20,161 76 (408) 19,829 U.S. government-sponsored enterprises 22,497 238 (184) 22,551 Obligations of states and political subdivisions 70,324 961 (467) 70,818 Mortgage-backed securities 108,106 1,586 (1,048) 108,644 Other debt securities (a) 11,825 209 (11) 12,023 Bank issued trust preferred securities (a) 1,486 — (250) 1,236 Total available-for-sale securities $ 237,417 $ 3,093 $ (2,368) $ 238,142 December 31, 2020 U.S. Treasury $ 2,772 $ 26 $ — $ 2,798 U.S. government and federal agency obligations 11,732 197 — 11,929 U.S. government-sponsored enterprises 22,495 379 — 22,874 Obligations of states and political subdivisions 56,943 1,801 — 58,744 Mortgage-backed securities 88,357 1,809 (54) 90,112 Other debt securities (a) 10,000 358 (14) 10,344 Bank issued trust preferred securities (a) 1,486 — (257) 1,229 Total available-for-sale securities $ 193,785 $ 4,570 $ (325) $ 198,030 (a) Certain hybrid instruments possessing characteristics typically associated with debt obligations. |
Schedule of amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity | Amortized Fair ( in thousands) Cost Value Due in one year or less $ 4,975 $ 5,011 Due after one year through five years 18,245 18,456 Due after five years through ten years 35,184 35,589 Due after ten years 70,907 70,442 Total 129,311 129,498 Mortgage-backed securities 108,106 108,644 Total available-for-sale securities $ 237,417 $ 238,142 |
Schedule of Other securities | March 31, December 31, (in thousands) 2021 2020 Other securities: FHLB stock $ 5,992 $ 6,170 MIB stock 151 151 Equity securities with readily determinable fair values 45 32 Total other investment securities $ 6,188 $ 6,353 |
Schedule of gross unrealized losses on debt securities and fair value of related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 months 12 months or more Total Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) Value Losses Value Losses Value Losses At March 31, 2021 U.S. Treasury $ 1,022 $ — $ 250 $ — $ 1,272 $ — U.S. government and federal agency obligations 14,447 (408) — — 14,447 (408) U.S. government-sponsored enterprises 5,816 (184) — — 5,816 (184) Obligations of states and political subdivisions 22,580 (467) — — 22,580 (467) Mortgage-backed securities 46,969 (1,048) — — 46,969 (1,048) Other debt securities 2,989 (11) — — 2,989 (11) Bank issued trust preferred securities — — 1,236 (250) 1,236 (250) Total $ 93,823 $ (2,118) $ 1,486 $ (250) $ 95,309 $ (2,368) (in thousands) At December 31, 2020 U.S. Treasury $ 1,015 $ — $ — $ — $ 1,015 $ — Mortgage-backed securities 7,494 (54) — — 7,494 (54) Other debt securities 2,987 (14) — — 2,987 (14) Bank issued trust preferred securities — — 1,229 (257) 1,229 (257) Total $ 11,496 $ (68) $ 1,229 $ (257) $ 12,725 $ (325) |
Schedule of components of investment securities gains and losses | Three Months Ended March 31, (in thousands) 2021 2020 Investment securities gains (losses), net Available for sale securities: Gross realized gains $ 2 $ — Gross realized losses — — Other-than-temporary impairment recognized — — Other investment securities: Fair value adjustments, net 12 (1) Investment securities gains (losses), net $ 14 $ (1) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets | |
Schedule of changes in mortgage servicing rights (MSRs) | Three Months Ended March 31, (in thousands) 2021 2020 Balance at beginning of period $ 2,445 $ 2,482 Originated mortgage servicing rights 170 67 Changes in fair value: Due to changes in model inputs and assumptions (1) 22 (198) Other changes in fair value (2) (143) (77) Total changes in fair value (121) (275) Balance at end of period $ 2,494 $ 2,274 (1) The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates. (2) Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time. |
Schedule of key data and assumptions used in estimating the fair value of the Company's MSRs | Three Months Ended March 31, 2021 2020 Weighted average constant prepayment rate 15.04 % 15.18 % Weighted average note rate 3.47 % 3.91 % Weighted average discount rate 7.75 % 8.25 % Weighted average expected life (in years) 5.0 4.4 |
Federal funds purchased and s_2
Federal funds purchased and securities sold under agreements to repurchase (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Federal funds purchased and securities sold under agreements to repurchase | |
Schedule of federal funds purchased and securities sold under agreements to repurchase | March 31, December 31, (in thousands) 2021 2020 Federal funds purchased $ — $ — Repurchase agreements 42,018 45,154 Total $ 42,018 $ 45,154 |
Schedule of repurchase agreements by remaining maturity of the agreements | Repurchase Agreements Remaining Contractual Maturity of the Agreements Overnight Less Greater and than than (in thousands) continuous 90 days 90 days Total At March 31, 2021 U.S. government-sponsored enterprises $ 8,757 $ — $ — $ 8,757 Mortgage-backed securities 33,261 — — 33,261 Total $ 42,018 $ — $ — $ 42,018 At December 31, 2020 U.S. government and federal agency obligations $ 2,728 $ — $ — $ 2,728 U.S. government-sponsored enterprises 15,533 — — 15,533 Mortgage-backed securities 26,893 — — 26,893 Total $ 45,154 $ — $ — $ 45,154 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Schedule of maturity of remaining operating leases liabilities | Operating Lease payments due in: Lease (in thousands) 2021 (excluding 3 months ending March 31, 2021) $ 276 2022 367 2023 366 2024 258 2025 257 Thereafter 830 Total lease payments 2,354 Less imputed interest (296) Total lease liabilities, as reported $ 2,058 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity | |
Schedule of the change in the components of the accumulated other comprehensive loss | The following details the change in the components of the Company’s accumulated other comprehensive income (loss) for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Accumulated Unrecognized Net Other Unrealized Pension and Comprehensive Gains (Losses) Postretirement Income (in thousands) on Securities (1) Costs (2) (Loss) Balance at beginning of period $ 3,353 $ (1,825) $ 1,528 Other comprehensive income, before reclassifications (3,518) 45 (3,473) Amounts reclassified from accumulated other comprehensive (loss) income (2) — (2) Current period other comprehensive income (loss), before tax (3,520) 45 (3,475) Income tax benefit (expense) 740 (10) 730 Current period other comprehensive income (loss), net of tax (2,780) 35 (2,745) Balance at end of period $ 573 $ (1,790) $ (1,217) Three Months Ended March 31, 2020 Accumulated Unrecognized Net Other Unrealized Pension and Comprehensive Gains (Losses) Postretirement Income (in thousands) on Securities (1) Costs (2) (Loss) Balance at beginning of period $ (23) $ (3,732) $ (3,755) Other comprehensive income, before reclassifications 2,760 67 2,827 Amounts reclassified from accumulated other comprehensive income (loss) — — — Current period other comprehensive income, before tax 2,760 67 2,827 Income tax expense (580) (14) (594) Current period other comprehensive income, net of tax 2,180 53 2,233 Balance at end of period $ 2,157 $ (3,679) $ (1,522) (1) The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in investment securities gains (losses), net in the consolidated statements of income. (2) The pre-tax amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost . |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Employee Benefit Plans | |
Schedule of employee benefits charged to operating expenses | Three Months Ended March 31, (in thousands) 2021 2020 Payroll taxes $ 435 $ 389 Medical plans 450 427 401(k) match and profit sharing 499 306 Periodic pension cost 416 464 Other 4 23 Total employee benefits $ 1,804 $ 1,609 |
Schedule of components of net pension cost | Pension Benefits (in thousands) 2021 2020 Service cost - benefits earned during the year $ 1,663 $ 1,857 Interest costs on projected benefit obligations (a) 1,023 1,159 Expected return on plan assets (a) (1,825) (1,572) Expected administrative expenses (a) 104 110 Amortization of prior service cost (a) — 50 Amortization of unrecognized net loss (a) 181 218 Net periodic pension cost $ 1,146 $ 1,822 (a) The components of net periodic pension cost other than the service cost component are included in other non-interest expense. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Share | |
Schedule of calculations of basic and diluted earnings per common share | Three Months Ended March 31, (dollars in thousands, except per share data) 2021 2020 Basic earnings per share: Net income available to shareholders $ 5,839 $ 868 Average shares outstanding 6,362,869 6,510,189 Basic earnings per share $ 0.92 $ 0.13 Diluted earnings per share: Net income available to shareholders $ 5,839 $ 868 Average shares outstanding 6,362,869 6,510,189 Effect of dilutive stock options — — Average shares outstanding including dilutive stock options 6,362,869 6,510,189 Diluted earnings per share $ 0.92 0.13 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Schedule of assets and liabilities recorded at fair value on a recurring basis | Fair Value Measurements Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) March 31, 2021 Assets: U.S. Treasury $ 3,041 $ 3,041 — $ — U.S. government and federal agency obligations 19,829 — 19,829 — U.S. government-sponsored enterprises 22,551 — 22,551 — Obligations of states and political subdivisions 70,818 — 70,818 — Mortgage-backed securities 108,644 — 108,644 — Other debt securities 12,023 — 12,023 — Bank-issued trust preferred securities 1,236 — 1,236 — Equity securities 45 45 — — Mortgage servicing rights 2,494 — — 2,494 Total $ 240,681 $ 3,086 $ 235,101 $ 2,494 December 31, 2020 Assets: U.S. Treasury $ 2,798 $ 2,798 — $ — U.S. government and federal agency obligations 11,929 — 11,929 — U.S. government-sponsored enterprises 22,874 — 22,874 — Obligations of states and political subdivisions 58,744 — 58,744 — Mortgage-backed securities 90,112 — 90,112 — Other debt securities 10,344 — 10,344 — Bank-issued trust preferred securities 1,229 — 1,229 — Equity securities 32 32 — — Mortgage servicing rights 2,445 — — 2,445 Total $ 200,507 $ 2,830 $ 195,232 $ 2,445 |
Schedule of summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements Using (Level 3) Mortgage Servicing Rights Three Months Ended March 31, (in thousands) 2021 2020 Balance at beginning of period $ 2,445 $ 2,482 Total (losses) or gains (realized/unrealized): Included in earnings (121) (275) Included in other comprehensive income — — Purchases — — Sales — — Issues 170 67 Settlements — — Balance at end of period $ 2,494 $ 2,274 |
Schedule of valuation methods for instruments measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted Prices in Active Markets for Other Significant Identical Observable Unobservable Total Assets Inputs Inputs Total Gains (in thousands) Fair Value (Level 1) (Level 2) (Level 3) (Losses)* March 31, 2021 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 4,188 $ — $ — $ 4,188 $ — Real estate mortgage - residential 403 — — 403 — Real estate mortgage - commercial 22,484 — — 22,484 (23) Total $ 27,075 $ — $ — $ 27,075 $ (23) Other real estate and repossessed assets $ 12,140 $ — $ — $ 12,140 $ (73) March 31, 2020 Assets: Collateral dependent impaired loans: Commercial, financial, & agricultural $ 2,422 $ — $ — $ 2,422 $ — Real estate construction - commercial 408 — — 408 — Real estate mortgage - residential 1,921 — — 1,921 (19) Real estate mortgage - commercial 827 — — 827 (22) Installment and other consumer 12 — — 12 (14) Total $ 5,590 $ — $ — $ 5,590 $ (55) Other real estate and repossessed assets $ 12,769 $ — $ — $ 12,769 $ (12) * Total losses reported for other real estate and foreclosed assets includes charge-offs, valuation write downs, and net losses taken during the periods reported. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value of Financial Instruments | |
Schedule of summary of the carrying amounts and fair values of financial instruments | March 31, 2021 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant March 31, 2021 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 18,496 $ 18,496 $ 18,496 $ — $ — Federal funds sold and overnight interest-bearing deposits 128,207 128,207 128,207 — — Certificates of deposit in other banks 8,897 8,897 8,897 — — Available for sale securities 238,142 238,142 3,041 235,101 — Other investment securities 6,188 6,188 45 6,143 — Loans, net 1,257,824 1,283,560 — — 1,283,560 Loans held for sale 6,308 6,308 — — 6,308 Cash surrender value - life insurance 2,465 2,465 — 2,465 — Accrued interest receivable 6,488 6,488 6,488 — — Total $ 1,673,015 $ 1,698,751 $ 165,174 $ 243,709 $ 1,289,868 Liabilities: Deposits: Non-interest bearing demand $ 431,035 $ 431,035 $ 431,035 $ — $ — Savings, interest checking and money market 708,615 708,615 708,615 — — Time deposits 254,332 256,047 — — 256,047 Federal funds purchased and securities sold under agreements to repurchase 42,018 42,018 42,018 — — Federal Home Loan Bank advances and other borrowings 97,614 99,750 — 99,750 — Subordinated notes 49,486 41,176 — 41,176 — Operating lease liabilities 2,058 2,058 — 2,058 — Accrued interest payable 439 439 439 — — Total $ 1,585,597 $ 1,581,138 $ 1,182,107 $ 142,984 $ 256,047 December 31, 2020 Fair Value Measurements Quoted Prices in Active Net Markets for Other Significant December 31, 2020 Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) amount value (Level 1) (Level 2) (Level 3) Assets: Cash and due from banks $ 19,235 $ 19,235 $ 19,235 $ — $ — Federal funds sold and overnight interest-bearing deposits 161,128 161,128 161,128 — — Certificates of deposit in other banks 9,376 9,376 9,376 — — Available-for-sale securities 198,030 198,030 2,798 195,232 — Other investment securities 6,353 6,353 32 6,321 — Loans, net 1,268,854 1,288,677 — — 1,288,677 Loans held for sale 5,099 5,279 — — 5,279 Cash surrender value - life insurance 2,451 2,451 — 2,451 — Accrued interest receivable 6,640 6,640 6,640 — — $ 1,677,166 $ 1,697,169 $ 199,209 $ 204,004 $ 1,293,956 Liabilities: Deposits: Non-interest bearing demand $ 382,492 $ 382,492 $ 382,492 $ — $ — Savings, interest checking and money market 723,808 723,808 723,808 — — Time deposits 277,306 279,569 — — 279,569 Federal funds purchased and securities sold under agreements to repurchase 45,154 45,154 45,154 — — Federal Home Loan Bank advances and other borrowings 106,674 110,121 — 110,121 — Subordinated notes 49,486 40,929 — 40,929 — Operating lease liabilities 2,137 2,137 — 2,137 — Accrued interest payable 837 837 837 — — $ 1,587,894 $ 1,585,047 $ 1,152,291 $ 153,187 $ 279,569 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Schedule of contractual amount of off-balance-sheet financial instruments | March 31, December 31, (in thousands) 2021 2020 Commitments to extend credit $ 350,465 $ 264,528 Commitments to originate residential first and second mortgage loans 50,340 51,270 Standby letters of credit 20,810 125,800 Total 421,615 441,598 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Jul. 01, 2020 |
Summary of Significant Accounting Policies | |
Dividends Payable, Date to be Paid | Jul. 1, 2020 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2020 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans by Major Class (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | ||
Total loans held for investment | $ 1,276,185 | $ 1,286,967 |
SBA PPA loans, net | 56,300 | |
Commercial, financial, and agricultural | ||
Loans and Allowance for Loan Losses | ||
Total loans held for investment | 251,943 | 272,918 |
SBA PPA loans, net | 56,300 | 63,300 |
Residential real estate | Construction | ||
Loans and Allowance for Loan Losses | ||
Total loans held for investment | 33,962 | 29,692 |
Residential real estate | Mortgages | ||
Loans and Allowance for Loan Losses | ||
Total loans held for investment | 258,259 | 262,339 |
Commercial real estate | Construction | ||
Loans and Allowance for Loan Losses | ||
Total loans held for investment | 78,576 | 78,144 |
Commercial real estate | Mortgages | ||
Loans and Allowance for Loan Losses | ||
Total loans held for investment | 628,178 | 617,133 |
Installment and other consumer | ||
Loans and Allowance for Loan Losses | ||
Total loans held for investment | $ 25,267 | $ 26,741 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Loans Pledged (Details) $ in Millions | Mar. 31, 2021USD ($) |
Loans and Allowances for Loan Losses | |
Amount of loans pledged as collateral to the Federal Home Loan Bank | $ 552.5 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Summary of the allowance for loan losses | |||
Balance at beginning of period | $ 18,113 | $ 12,477 | |
Additions: | |||
Provision for loan losses | 0 | 3,300 | |
Deductions: | |||
Loans charged off | 107 | 134 | |
Less recoveries on loans | (355) | (50) | |
Net loan charge-offs (recoveries) | (248) | 84 | |
Balance at end of period | 18,361 | 15,693 | |
Amount of PPP loans funded during the period | $ 40,200 | 88,400 | |
Percentage credit guarantee from the SBA for the PPP loans | 100.00% | ||
Allowance for PPP loans | $ 0 | ||
SBA PPA loans, net | $ 56,300 | ||
Paycheck Protection Program Loans, Interest Rate | 1.00% | ||
Minimum | |||
Deductions: | |||
Expected repayment term of the SBA PPP loans | 6 months | ||
Maximum | |||
Deductions: | |||
Expected repayment term of the SBA PPP loans | 12 months | ||
Commercial, financial, and agricultural | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | $ 5,121 | 2,918 | |
Additions: | |||
Provision for loan losses | (567) | 721 | |
Deductions: | |||
Loans charged off | 27 | 41 | |
Less recoveries on loans | (149) | (25) | |
Net loan charge-offs (recoveries) | (122) | 16 | |
Balance at end of period | 4,676 | 3,623 | |
SBA PPA loans, net | 56,300 | $ 63,300 | |
Residential real estate | Construction | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | 213 | 64 | |
Additions: | |||
Provision for loan losses | 83 | 53 | |
Deductions: | |||
Less recoveries on loans | (13) | ||
Net loan charge-offs (recoveries) | (13) | ||
Balance at end of period | 309 | 117 | |
Residential real estate | Mortgages | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | 2,679 | 2,118 | |
Additions: | |||
Provision for loan losses | (253) | 255 | |
Deductions: | |||
Loans charged off | 19 | ||
Less recoveries on loans | (168) | (9) | |
Net loan charge-offs (recoveries) | (168) | 10 | |
Balance at end of period | 2,594 | 2,363 | |
Commercial real estate | Construction | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | 475 | 369 | |
Additions: | |||
Provision for loan losses | 57 | 253 | |
Deductions: | |||
Balance at end of period | 532 | 622 | |
Commercial real estate | Mortgages | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | 9,354 | 6,547 | |
Additions: | |||
Provision for loan losses | 573 | 2,087 | |
Deductions: | |||
Loans charged off | 23 | 22 | |
Less recoveries on loans | (2) | ||
Net loan charge-offs (recoveries) | 23 | 20 | |
Balance at end of period | 9,904 | 8,614 | |
Installment and other consumer | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | 264 | 381 | |
Additions: | |||
Provision for loan losses | 13 | 8 | |
Deductions: | |||
Loans charged off | 57 | 52 | |
Less recoveries on loans | (25) | (14) | |
Net loan charge-offs (recoveries) | 32 | 38 | |
Balance at end of period | 245 | 351 | |
Unallocated | |||
Summary of the allowance for loan losses | |||
Balance at beginning of period | 7 | 80 | |
Additions: | |||
Provision for loan losses | 94 | (77) | |
Deductions: | |||
Balance at end of period | $ 101 | $ 3 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impairment Methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | ||||
Individually evaluated for impairment | $ 5,144 | $ 5,113 | ||
Collectively evaluated for impairment | 13,217 | 13,000 | ||
Total | 18,361 | 18,113 | $ 15,693 | $ 12,477 |
Loans outstanding: | ||||
Individually evaluated for impairment | 36,647 | 37,335 | ||
Collectively evaluated for impairment | 1,239,538 | 1,249,632 | ||
Total | 1,276,185 | 1,286,967 | ||
Commercial, financial, and agricultural | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 2,134 | 2,187 | ||
Collectively evaluated for impairment | 2,542 | 2,934 | ||
Total | 4,676 | 5,121 | 3,623 | 2,918 |
Loans outstanding: | ||||
Individually evaluated for impairment | 7,408 | 7,552 | ||
Collectively evaluated for impairment | 244,535 | 265,366 | ||
Total | 251,943 | 272,918 | ||
Residential real estate | Construction | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 26 | 27 | ||
Collectively evaluated for impairment | 283 | 186 | ||
Total | 309 | 213 | 117 | 64 |
Loans outstanding: | ||||
Individually evaluated for impairment | 189 | 192 | ||
Collectively evaluated for impairment | 33,773 | 29,500 | ||
Total | 33,962 | 29,692 | ||
Residential real estate | Mortgages | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 256 | 263 | ||
Collectively evaluated for impairment | 2,338 | 2,416 | ||
Total | 2,594 | 2,679 | 2,363 | 2,118 |
Loans outstanding: | ||||
Individually evaluated for impairment | 3,134 | 3,626 | ||
Collectively evaluated for impairment | 255,125 | 258,713 | ||
Total | 258,259 | 262,339 | ||
Commercial real estate | Construction | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 28 | 28 | ||
Collectively evaluated for impairment | 504 | 447 | ||
Total | 532 | 475 | 622 | 369 |
Loans outstanding: | ||||
Individually evaluated for impairment | 198 | 200 | ||
Collectively evaluated for impairment | 78,378 | 77,944 | ||
Total | 78,576 | 78,144 | ||
Commercial real estate | Mortgages | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 2,691 | 2,594 | ||
Collectively evaluated for impairment | 7,213 | 6,760 | ||
Total | 9,904 | 9,354 | 8,614 | 6,547 |
Loans outstanding: | ||||
Individually evaluated for impairment | 25,647 | 25,657 | ||
Collectively evaluated for impairment | 602,531 | 591,476 | ||
Total | 628,178 | 617,133 | ||
Installment and other consumer | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 9 | 14 | ||
Collectively evaluated for impairment | 236 | 250 | ||
Total | 245 | 264 | 351 | 381 |
Loans outstanding: | ||||
Individually evaluated for impairment | 71 | 108 | ||
Collectively evaluated for impairment | 25,196 | 26,633 | ||
Total | 25,267 | 26,741 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 101 | 7 | ||
Total | 101 | 7 | $ 3 | $ 80 |
Loans outstanding: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Allowances for Loan Losses | ||
Impaired loans individually evaluated for impairment | $ 36,647 | $ 37,335 |
Impaired loans were evaluated based on the fair value of the loan's collateral | 31,800 | 32,200 |
Individually evaluated for impairment | 5,144 | 5,113 |
Impaired loans with no reserve allocation | $ 12,569 | $ 11,946 |
Impaired loans required no reserve allocation, percentage | 34.00% | 32.00% |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Categories of Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Categories of impaired loans | ||
Non-accrual loans | $ 34,233 | $ 34,559 |
Performing TDRs | 2,414 | 2,776 |
Total impaired loans | $ 36,647 | $ 37,335 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Additional information about Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Impaired loans | ||
Recorded Investment, With no related allowance recorded | $ 12,569 | $ 11,946 |
Unpaid Principal Balance, With no related allowance recorded | 12,726 | 12,069 |
Recorded Investment, With an allowance recorded | 24,078 | 25,389 |
Unpaid Principal Balance, With an allowance recorded | 24,721 | 26,308 |
Specific Reserves, With an allowance recorded | 5,144 | 5,113 |
Total impaired loans, Recorded Investment | 36,647 | 37,335 |
Total impaired loans, Unpaid Principal Balance | 37,447 | 38,377 |
Commercial, financial, and agricultural | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 1,837 | 1,703 |
Unpaid Principal Balance, With no related allowance recorded | 1,882 | 1,731 |
Recorded Investment, With an allowance recorded | 5,571 | 5,849 |
Unpaid Principal Balance, With an allowance recorded | 5,645 | 6,180 |
Specific Reserves, With an allowance recorded | 2,134 | 2,187 |
Residential real estate | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 1,275 | 1,300 |
Unpaid Principal Balance, With no related allowance recorded | 1,377 | 1,395 |
Recorded Investment, With an allowance recorded | 1,859 | 2,326 |
Unpaid Principal Balance, With an allowance recorded | 2,304 | 2,786 |
Specific Reserves, With an allowance recorded | 256 | 263 |
Residential real estate | Construction | ||
Impaired loans | ||
Recorded Investment, With an allowance recorded | 189 | 192 |
Unpaid Principal Balance, With an allowance recorded | 189 | 192 |
Specific Reserves, With an allowance recorded | 26 | 27 |
Commercial real estate | ||
Impaired loans | ||
Recorded Investment, With no related allowance recorded | 9,457 | 8,943 |
Unpaid Principal Balance, With no related allowance recorded | 9,467 | 8,943 |
Recorded Investment, With an allowance recorded | 16,190 | 16,714 |
Unpaid Principal Balance, With an allowance recorded | 16,257 | 16,787 |
Specific Reserves, With an allowance recorded | 2,691 | 2,594 |
Commercial real estate | Construction | ||
Impaired loans | ||
Recorded Investment, With an allowance recorded | 198 | 200 |
Unpaid Principal Balance, With an allowance recorded | 251 | 251 |
Specific Reserves, With an allowance recorded | 28 | 28 |
Installment and other consumer | ||
Impaired loans | ||
Recorded Investment, With an allowance recorded | 71 | 108 |
Unpaid Principal Balance, With an allowance recorded | 75 | 112 |
Specific Reserves, With an allowance recorded | $ 9 | $ 14 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Average Recorded Investment and Interest Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
With no related allowance recorded: | ||
With no related allowance recorded, Average Recorded Investment | $ 12,623,000 | $ 3,997,000 |
With no related allowance recorded, Interest Recognized For The Period Ended | 17,000 | 6,000 |
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 24,323,000 | 4,232,000 |
With an allowance recorded, Interest Recognized For The Period Ended | 23,000 | 36,000 |
Total average recorded investment | 36,946,000 | 8,229,000 |
Total interest income recognized For the Period Ended | 40,000 | 42,000 |
Commercial, financial, and agricultural | ||
With no related allowance recorded: | ||
With no related allowance recorded, Average Recorded Investment | 1,742,000 | 1,014,000 |
With no related allowance recorded, Interest Recognized For The Period Ended | 8,000 | 0 |
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 5,696,000 | 1,195,000 |
With an allowance recorded, Interest Recognized For The Period Ended | 7,000 | 8,000 |
Residential real estate | ||
With no related allowance recorded: | ||
With no related allowance recorded, Average Recorded Investment | 1,424,000 | 1,581,000 |
With no related allowance recorded, Interest Recognized For The Period Ended | 9,000 | 0 |
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 1,958,000 | 2,550,000 |
With an allowance recorded, Interest Recognized For The Period Ended | 6,000 | 20,000 |
Residential real estate | Construction | ||
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 190,000 | 0 |
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 |
Commercial real estate | ||
With no related allowance recorded: | ||
With no related allowance recorded, Average Recorded Investment | 9,457,000 | 1,163,000 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 6,000 |
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 16,195,000 | 370,000 |
With an allowance recorded, Interest Recognized For The Period Ended | 7,000 | 2,000 |
Commercial real estate | Construction | ||
With no related allowance recorded: | ||
With no related allowance recorded, Average Recorded Investment | 0 | 227,000 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 |
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 199,000 | 0 |
With an allowance recorded, Interest Recognized For The Period Ended | 0 | 0 |
Installment and other consumer | ||
With no related allowance recorded: | ||
With no related allowance recorded, Average Recorded Investment | 0 | 12,000 |
With no related allowance recorded, Interest Recognized For The Period Ended | 0 | 0 |
With an allowance recorded: | ||
With an allowance recorded, Average Recorded Investment | 85,000 | 117,000 |
With an allowance recorded, Interest Recognized For The Period Ended | $ 3,000 | $ 6,000 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Past Due and Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | $ 0 | $ 17 |
Nonaccrual status | 34,233 | 34,559 |
Loans held for investment | 1,276,185 | 1,286,967 |
Amount of loans accepting forbearance | 43,500 | 57,100 |
Loan modifications | 72,800 | |
Loan Modifications under CARES Act | ||
Aging information for the Company's past due and non-accrual loans | ||
Nonaccrual status | 29,300 | |
Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,240,025 | 1,251,344 |
30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,927 | 1,047 |
Commercial, financial, and agricultural | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Nonaccrual status | 6,591 | 6,717 |
Loans held for investment | 251,943 | 272,918 |
Commercial, financial, and agricultural | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 245,019 | 265,821 |
Commercial, financial, and agricultural | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 333 | 380 |
Residential real estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Nonaccrual status | 189 | 192 |
Loans held for investment | 33,962 | 29,692 |
Residential real estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 33,773 | 29,500 |
Residential real estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Residential real estate | Mortgages | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Nonaccrual status | 1,917 | 2,105 |
Loans held for investment | 258,259 | 262,339 |
Residential real estate | Mortgages | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 255,172 | 259,688 |
Residential real estate | Mortgages | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 1,170 | 546 |
Commercial real estate | Construction | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Nonaccrual status | 198 | 200 |
Loans held for investment | 78,576 | 78,144 |
Commercial real estate | Construction | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 78,378 | 77,944 |
Commercial real estate | Construction | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Commercial real estate | Mortgages | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 0 |
Nonaccrual status | 25,309 | 25,314 |
Loans held for investment | 628,178 | 617,133 |
Commercial real estate | Mortgages | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 602,502 | 591,815 |
Commercial real estate | Mortgages | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 367 | 4 |
Installment and other consumer | ||
Aging information for the Company's past due and non-accrual loans | ||
90 Days Past Due And Still Accruing | 0 | 17 |
Nonaccrual status | 29 | 31 |
Loans held for investment | 25,267 | 26,741 |
Installment and other consumer | Current or Less Than 30 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | 25,181 | 26,576 |
Installment and other consumer | 30 - 89 Days Past Due | ||
Aging information for the Company's past due and non-accrual loans | ||
Financing receivable, recorded investment, past due | $ 57 | $ 117 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Credit Quality (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 1,276,185 | $ 1,286,967 |
Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 103,297 | 103,771 |
Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 5,850 | 3,262 |
Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,414 | 2,776 |
Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 34,233 | 34,559 |
Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 145,794 | 144,368 |
Commercial, financial, and agricultural | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 251,943 | 272,918 |
Commercial, financial, and agricultural | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 8,675 | 9,649 |
Commercial, financial, and agricultural | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 581 | 598 |
Commercial, financial, and agricultural | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 817 | 835 |
Commercial, financial, and agricultural | Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 6,591 | 6,717 |
Commercial, financial, and agricultural | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 16,664 | 17,799 |
Residential real estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 33,962 | 29,692 |
Residential real estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 540 | 545 |
Residential real estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Residential real estate | Construction | Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 189 | 192 |
Residential real estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 729 | 737 |
Residential real estate | Mortgages | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 258,259 | 262,339 |
Residential real estate | Mortgages | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 15,694 | 15,835 |
Residential real estate | Mortgages | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 954 | 1,002 |
Residential real estate | Mortgages | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,217 | 1,521 |
Residential real estate | Mortgages | Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,917 | 2,105 |
Residential real estate | Mortgages | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 19,782 | 20,463 |
Commercial real estate | Construction | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 78,576 | 78,144 |
Commercial real estate | Construction | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 7,013 | 10,806 |
Commercial real estate | Construction | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 2,670 | 0 |
Commercial real estate | Construction | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Commercial real estate | Construction | Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 198 | 200 |
Commercial real estate | Construction | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 9,881 | 11,006 |
Commercial real estate | Mortgages | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 628,178 | 617,133 |
Commercial real estate | Mortgages | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 71,375 | 66,936 |
Commercial real estate | Mortgages | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 1,645 | 1,662 |
Commercial real estate | Mortgages | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 338 | 343 |
Commercial real estate | Mortgages | Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 25,309 | 25,314 |
Commercial real estate | Mortgages | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 98,667 | 94,255 |
Installment and other consumer | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 25,267 | 26,741 |
Installment and other consumer | Watch | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Installment and other consumer | Substandard | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 0 | 0 |
Installment and other consumer | Performing TDRs | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 42 | 77 |
Installment and other consumer | Non-accrual loans | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | 29 | 31 |
Installment and other consumer | Total | ||
Credit quality of the loan portfolio using internal rating system reflecting management's risk assessment | ||
Financing receivable | $ 71 | $ 108 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - TDRs and Loan Modifications (Details) | 3 Months Ended | ||||
Mar. 31, 2021USD ($)contract | Mar. 31, 2020USD ($)contract | Dec. 31, 2020USD ($) | |||
Troubled Debt Restructurings | |||||
Troubled debt restructurings | $ 3,300,000 | $ 3,700,000 | |||
Amount of specific reserves related to TDRs which were allocated to the allowance for loan losses | $ 172,000 | 214,000 | |||
Number of Contracts | contract | 0 | 1 | [1] | ||
Pre- Modification | [1] | $ 6,000 | |||
Post- Modification | [1] | 5,000 | |||
Loans held for sale, at lower of cost or fair value | $ 6,308,000 | $ 4,300,000 | 5,099,000 | ||
Loan Modifications under the CARES Act | |||||
Nonaccrual status | 34,233,000 | 34,559,000 | |||
Loan Modifications under CARES Act | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 72,798,000 | ||||
Loan modifications, percentage | 5.70% | ||||
Nonaccrual status | $ 29,300,000 | ||||
Nonaccrual status, percentage | 40.30% | ||||
Loan Modifications under CARES Act | Real Estate and Rental and Leasing | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 10,810,000 | ||||
Loan Modifications under CARES Act | Accommodations and Food Services | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | 44,189,000 | ||||
Loan Modifications under CARES Act | Construction | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | 144,000 | ||||
Loan Modifications under CARES Act | Land and lots | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | 1,553,000 | ||||
Loan Modifications under CARES Act | Cinemas | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | 5,777,000 | ||||
Loan Modifications under CARES Act | Arts, Entertainment, Recreation | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | 10,164,000 | ||||
Loan Modifications under CARES Act | Non-NAICS (Consumer) | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | 161,000 | ||||
Loan Modifications under CARES Act | Interest Only | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 28,058,000 | ||||
Loan modifications, percentage | 38.50% | ||||
Loan Modifications under CARES Act | Interest Only | Real Estate and Rental and Leasing | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 4,521,000 | ||||
Loan modifications, percentage | 6.20% | ||||
Loan Modifications under CARES Act | Interest Only | Accommodations and Food Services | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 10,590,000 | ||||
Loan modifications, percentage | 14.50% | ||||
Loan Modifications under CARES Act | Interest Only | Construction | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 144,000 | ||||
Loan modifications, percentage | 0.20% | ||||
Loan Modifications under CARES Act | Interest Only | Land and lots | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 1,553,000 | ||||
Loan modifications, percentage | 2.10% | ||||
Loan Modifications under CARES Act | Interest Only | Cinemas | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 1,086,000 | ||||
Loan modifications, percentage | 1.50% | ||||
Loan Modifications under CARES Act | Interest Only | Arts, Entertainment, Recreation | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 10,164,000 | ||||
Loan modifications, percentage | 14.00% | ||||
Loan Modifications under CARES Act | Interest Only | Non-NAICS (Consumer) | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, percentage | 0.00% | ||||
Loan Modifications under CARES Act | Full Deferral | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 39,649,000 | ||||
Loan modifications, percentage | 54.50% | ||||
Loan Modifications under CARES Act | Full Deferral | Real Estate and Rental and Leasing | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 5,790,000 | ||||
Loan modifications, percentage | 8.00% | ||||
Loan Modifications under CARES Act | Full Deferral | Accommodations and Food Services | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 29,007,000 | ||||
Loan modifications, percentage | 39.80% | ||||
Loan Modifications under CARES Act | Full Deferral | Cinemas | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 4,691,000 | ||||
Loan modifications, percentage | 6.40% | ||||
Loan Modifications under CARES Act | Full Deferral | Non-NAICS (Consumer) | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 161,000 | ||||
Loan modifications, percentage | 0.30% | ||||
Loan Modifications under CARES Act | Extended Amortizations | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 5,091,000 | ||||
Loan modifications, percentage | 7.00% | ||||
Loan Modifications under CARES Act | Extended Amortizations | Real Estate and Rental and Leasing | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 499,000 | ||||
Loan modifications, percentage | 0.70% | ||||
Loan Modifications under CARES Act | Extended Amortizations | Accommodations and Food Services | |||||
Loan Modifications under the CARES Act | |||||
Loan modifications, amount | $ 4,592,000 | ||||
Loan modifications, percentage | 6.30% | ||||
90 days or more past due | |||||
Troubled Debt Restructurings | |||||
Number of contracts called for default and charged off | contract | 0 | 0 | |||
Commercial, financial, and agricultural | |||||
Loan Modifications under the CARES Act | |||||
Nonaccrual status | $ 6,591,000 | 6,717,000 | |||
Residential real estate | Mortgages | |||||
Loan Modifications under the CARES Act | |||||
Nonaccrual status | 1,917,000 | 2,105,000 | |||
Commercial real estate | Mortgages | |||||
Loan Modifications under the CARES Act | |||||
Nonaccrual status | 25,309,000 | 25,314,000 | |||
Installment and other consumer | |||||
Troubled Debt Restructurings | |||||
Number of Contracts | contract | [1] | 1 | |||
Pre- Modification | [1] | $ 6,000 | |||
Post- Modification | [1] | $ 5,000 | |||
Loan Modifications under the CARES Act | |||||
Nonaccrual status | 29,000 | 31,000 | |||
Performing TDRs | |||||
Troubled Debt Restructurings | |||||
Troubled debt restructurings | 2,400,000 | 2,800,000 | |||
Non-performing TDRs - 90 days past due | |||||
Troubled Debt Restructurings | |||||
Troubled debt restructurings | $ 900,000 | $ 900,000 | |||
[1] | The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported. |
Other Real Estate Acquired in_3
Other Real Estate Acquired in Settlement of Loans - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Summary of real estate and other assets acquired in settlement of loans | ||||
Total | $ 14,842 | $ 14,905 | $ 15,737 | $ 15,737 |
Less valuation allowance for other real estate owned | (2,702) | (2,614) | (2,968) | $ (2,956) |
Total other real estate owned | 12,140 | 12,291 | $ 12,769 | |
Commercial | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 920 | 920 | ||
Residential real estate | Mortgages | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 137 | 201 | ||
Commercial real estate | Construction | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | 10,987 | 10,986 | ||
Commercial real estate | Mortgages | ||||
Summary of real estate and other assets acquired in settlement of loans | ||||
Real estate acquired through foreclosure | $ 2,798 | $ 2,798 |
Other Real Estate Acquired in_4
Other Real Estate Acquired in Settlement of Loans - Changes in Net Carrying Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Schedule of real estate acquired in settlement of loans | |||||
Balance at beginning of period | $ 14,905 | $ 15,737 | |||
Additions | 30 | ||||
Proceeds from sales | (108) | ||||
Charge-offs against the valuation allowance for other real estate owned, net | 0 | 0 | |||
Net gain on sales | 15 | 0 | |||
Total other real estate owned | $ 14,905 | $ 15,737 | $ 14,842 | $ 14,905 | $ 15,737 |
Less valuation allowance for other real estate owned | (2,702) | (2,968) | |||
Balance at end of period | $ 12,140 | $ 12,291 | $ 12,769 |
Other Real Estate Acquired in_5
Other Real Estate Acquired in Settlement of Loans - Foreclosure (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Other Real Estate Acquired in Settlement of Loans | ||
Consumer mortgage loans in process of foreclosure | $ 285,000 | $ 287,000 |
Other Real Estate Acquired in_6
Other Real Estate Acquired in Settlement of Loans - Valuation Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Summary of activity in valuation allowance for other real estate owned in settlement of loans | ||
Balance, beginning of period | $ 2,614 | $ 2,956 |
Provision for other real estate owned | 88 | 12 |
Charge-offs | 0 | 0 |
Balance, end of period | $ 2,702 | $ 2,968 |
Investment Securities - Amortiz
Investment Securities - Amortized Costs, Gains and Losses, Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment Securities | ||
Total Amortized Cost | $ 237,417 | $ 193,785 |
Gross Unrealized Gains | 3,093 | 4,570 |
Gross Unrealized Losses | (2,368) | (325) |
Fair value | 238,142 | 198,030 |
U.S. Treasury | ||
Investment Securities | ||
Total Amortized Cost | 3,018 | 2,772 |
Gross Unrealized Gains | 23 | 26 |
Gross Unrealized Losses | 0 | 0 |
Fair value | 3,041 | 2,798 |
U.S. government and federal agency obligations | ||
Investment Securities | ||
Total Amortized Cost | 20,161 | 11,732 |
Gross Unrealized Gains | 76 | 197 |
Gross Unrealized Losses | (408) | 0 |
Fair value | 19,829 | 11,929 |
U.S. government-sponsored enterprises | ||
Investment Securities | ||
Total Amortized Cost | 22,497 | 22,495 |
Gross Unrealized Gains | 238 | 379 |
Gross Unrealized Losses | (184) | 0 |
Fair value | 22,551 | 22,874 |
Obligations of states and political subdivisions | ||
Investment Securities | ||
Total Amortized Cost | 70,324 | 56,943 |
Gross Unrealized Gains | 961 | 1,801 |
Gross Unrealized Losses | (467) | 0 |
Fair value | 70,818 | 58,744 |
Mortgage-backed securities | ||
Investment Securities | ||
Total Amortized Cost | 108,106 | 88,357 |
Gross Unrealized Gains | 1,586 | 1,809 |
Gross Unrealized Losses | (1,048) | (54) |
Fair value | 108,644 | 90,112 |
Other debt securities | ||
Investment Securities | ||
Total Amortized Cost | 11,825 | 10,000 |
Gross Unrealized Gains | 209 | 358 |
Gross Unrealized Losses | (11) | (14) |
Fair value | 12,023 | 10,344 |
Bank issued trust preferred securities | ||
Investment Securities | ||
Total Amortized Cost | 1,486 | 1,486 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (250) | (257) |
Fair value | $ 1,236 | $ 1,229 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investment Securities | ||
Debt securities with carrying values, pledged | $ 197.6 | $ 153.9 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 4,975 | |
Due after one year through five years | 18,245 | |
Due after five years through ten years | 35,184 | |
Due after ten years | 70,907 | |
Total | 129,311 | |
Mortgage-backed securities | 108,106 | |
Total available-for-sale securities | 237,417 | $ 193,785 |
Fair Value | ||
Due in one year or less | 5,011 | |
Due after one year through five years | 18,456 | |
Due after five years through ten years | 35,589 | |
Due after ten years | 70,442 | |
Total | 129,498 | |
Mortgage-backed securities | 108,644 | |
Total available-for-sale securities | $ 238,142 | $ 198,030 |
Investment Securities - Other S
Investment Securities - Other Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment Securities | ||
FHLB stock | $ 5,992 | $ 6,170 |
MIB stock | 151 | 151 |
Equity securities with readily determinable fair values | 45 | 32 |
Total other investment securities | $ 6,188 | $ 6,353 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 months | $ 93,823 | $ 11,496 |
12 months or more | 1,486 | 1,229 |
Total | 95,309 | 12,725 |
Unrealized Losses | ||
Less than 12 months | (2,118) | (68) |
12 months or more | (250) | (257) |
Total | (2,368) | (325) |
U.S. Treasury | ||
Fair Value | ||
Less than 12 months | 1,022 | 1,015 |
12 months or more | 250 | 0 |
Total | 1,272 | 1,015 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
U.S. government and federal agency obligations | ||
Fair Value | ||
Less than 12 months | 14,447 | |
12 months or more | 0 | |
Total | 14,447 | |
Unrealized Losses | ||
Less than 12 months | (408) | |
12 months or more | 0 | |
Total | (408) | |
U.S. government-sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 5,816 | |
12 months or more | 0 | |
Total | 5,816 | |
Unrealized Losses | ||
Less than 12 months | (184) | |
12 months or more | 0 | |
Total | (184) | |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 22,580 | |
12 months or more | 0 | |
Total | 22,580 | |
Unrealized Losses | ||
Less than 12 months | (467) | |
12 months or more | 0 | |
Total | (467) | |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 46,969 | 7,494 |
12 months or more | 0 | 0 |
Total | 46,969 | 7,494 |
Unrealized Losses | ||
Less than 12 months | (1,048) | (54) |
12 months or more | 0 | 0 |
Total | (1,048) | (54) |
Other debt securities | ||
Fair Value | ||
Less than 12 months | 2,989 | 2,987 |
12 months or more | 0 | 0 |
Total | 2,989 | 2,987 |
Unrealized Losses | ||
Less than 12 months | (11) | (14) |
12 months or more | 0 | 0 |
Total | (11) | (14) |
Bank issued trust preferred securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or more | 1,236 | 1,229 |
Total | 1,236 | 1,229 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | (250) | (257) |
Total | $ (250) | $ (257) |
Investment Securities - Other (
Investment Securities - Other (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)security | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Investment Securities | |||
Number of securities consisted in portfolio | security | 342 | 308 | |
Number of securities in loss position | security | 87 | 10 | |
Aggregate fair value of securities in loss position | $ 95,309 | $ 12,725 | |
Loss position for 12 months or longer | 1,486 | 1,229 | |
Aggregate unrealized loss included in accumulated other comprehensive income (loss) | 2,368 | $ 325 | |
Proceeds from sale of available for sale debt securities | 0 | $ 681 | |
Gains realized on sales | 2 | 0 | |
Recognized net securities losses | $ 14 | $ (1) |
Investment Securities - Compone
Investment Securities - Components of Investment Securities Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Available for sale securities: | ||
Gains realized on sales | $ 2 | $ 0 |
Losses realized on sales | 0 | 0 |
Other-than-temporary impairment recognized | 0 | 0 |
Other investment securities: | ||
Fair value adjustments, net | 12 | (1) |
Investment securities gains (losses), net | $ 14 | $ (1) |
Intangible Assets - Mortgage Se
Intangible Assets - Mortgage Servicing Rights (Details) - Mortgage servicing rights (MSRs) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Mortgage Servicing Rights | |||
Mortgage loans serviced for others | $ 288,900,000 | $ 270,600,000 | $ 292,700,000 |
Mortgage loan servicing fees reported as non-interest income | $ 193,000 | $ 188,000 |
Intangible Assets - Changes in
Intangible Assets - Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in mortgage servicing rights | ||
Balance at beginning of period | $ 2,445 | |
Changes in fair value: | ||
Balance at end of period | 2,494 | |
Mortgage servicing rights (MSRs) | ||
Changes in mortgage servicing rights | ||
Balance at beginning of period | 2,445 | $ 2,482 |
Originated mortgage servicing rights | 170 | 67 |
Changes in fair value: | ||
Due to changes in model inputs and assumptions | 22 | (198) |
Other changes in fair value | (143) | (77) |
Total changes in fair value | (121) | (275) |
Balance at end of period | $ 2,494 | $ 2,274 |
Intangible Assets - FV Assumpti
Intangible Assets - FV Assumptions (Details) - Mortgage servicing rights (MSRs) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Assumptions used in estimating the fair value of mortgage service rights | ||
Weighted average constant prepayment rate | 15.04% | 15.18% |
Weighted average note rate | 3.47% | 3.91% |
Weighted average discount rate | 7.75% | 8.25% |
Weighted average expected life (in years) | 5 years | 4 years 4 months 24 days |
Federal funds purchased and s_3
Federal funds purchased and securities sold under agreements to repurchase - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Federal funds purchased and securities sold under agreements to repurchase | ||
Federal funds purchased | $ 0 | $ 0 |
Repurchase agreements | 42,018 | 45,154 |
Total | $ 42,018 | $ 45,154 |
Federal funds purchased and s_4
Federal funds purchased and securities sold under agreements to repurchase - Repurchase Agreements - Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | $ 42,018 | $ 45,154 |
U.S. government and federal agency obligations | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 2,728 | |
U.S. government-sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 8,757 | 15,533 |
Mortgage-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 33,261 | 26,893 |
Overnight and continuous | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 42,018 | 45,154 |
Overnight and continuous | U.S. government and federal agency obligations | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 2,728 | |
Overnight and continuous | U.S. government-sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 8,757 | 15,533 |
Overnight and continuous | Mortgage-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 33,261 | 26,893 |
Less than 90 days | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | U.S. government and federal agency obligations | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | |
Less than 90 days | U.S. government-sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Less than 90 days | Mortgage-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | U.S. government and federal agency obligations | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | |
Greater than 90 days | U.S. government-sponsored enterprises | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | 0 | 0 |
Greater than 90 days | Mortgage-backed securities | ||
Federal funds purchased and securities sold under agreements to repurchase | ||
Repurchase agreements | $ 0 | $ 0 |
Leases - Other (Details)
Leases - Other (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Leases | |||
Operating right-of-use assets | $ 2,000,000 | ||
Operating lease liabilities | $ 2,058,000 | $ 2,137,000 | |
Weighted-average remaining lease term (in years) | 7 years 3 months 18 days | ||
Weighted-average discount rate (as a percent) | 4.00% | ||
Operating lease cost | $ 100,000 | $ 86,000 | |
Short-term operating lease expense | $ 13,000 | $ 35,000 | |
Minimum | |||
Leases | |||
Remaining lease terms (in years) | 1 year | ||
Maximum | |||
Leases | |||
Remaining lease terms (in years) | 10 years |
Leases - Maturities of remainin
Leases - Maturities of remaining operating lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Maturity of remaining operating lease liabilities: | ||
2021 (excluding 3 months ending March 31, 2021) | $ 276 | |
2022 | 367 | |
2023 | 366 | |
2024 | 258 | |
2025 | 257 | |
Thereafter | 830 | |
Total lease payments | 2,354 | |
Less imputed interest | (296) | |
Total lease liabilities, as reported | $ 2,058 | $ 2,137 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes | ||
Federal corporate income tax rate (as a percent) | 18.90% | 15.30% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | $ 1,528 | |
Total other comprehensive income (loss) | (2,745) | $ 2,233 |
Balance at end of period | (1,217) | |
Unrealized Gain (Losses) on Securities | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | 3,353 | (23) |
Other comprehensive income, before reclassifications | (3,518) | 2,760 |
Amounts reclassified from accumulated other comprehensive (loss) income | (2) | 0 |
Current period other comprehensive income (loss), before tax | (3,520) | 2,760 |
Income tax benefit (expense) | 740 | (580) |
Total other comprehensive income (loss) | (2,780) | 2,180 |
Balance at end of period | 573 | 2,157 |
Unrecognized Net Pension and Postretirement Costs | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | (1,825) | (3,732) |
Other comprehensive income, before reclassifications | 45 | 67 |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | |
Current period other comprehensive income (loss), before tax | 45 | 67 |
Income tax benefit (expense) | (10) | (14) |
Total other comprehensive income (loss) | 35 | 53 |
Balance at end of period | (1,790) | (3,679) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | 1,528 | (3,755) |
Other comprehensive income, before reclassifications | (3,473) | 2,827 |
Amounts reclassified from accumulated other comprehensive (loss) income | (2) | 0 |
Current period other comprehensive income (loss), before tax | (3,475) | 2,827 |
Income tax benefit (expense) | 730 | (594) |
Total other comprehensive income (loss) | (2,745) | 2,233 |
Balance at end of period | $ (1,217) | $ (1,522) |
Employee Benefit Plans - Expens
Employee Benefit Plans - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Summary of employee benefits charged to operating expenses | ||
Payroll taxes | $ 435 | $ 389 |
Medical plans | 450 | 427 |
401k match and profit sharing | 499 | 306 |
Periodic pension cost | 416 | 464 |
Other | 4 | 23 |
Total employee benefits | $ 1,804 | $ 1,609 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other (Details) - USD ($) | Mar. 22, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure | |||
401(k) plan, percentage of employer match | 3.00% | ||
401(k) plan, maximum percentage contribution by employer | 6.00% | ||
Employer contribution | $ 1,000,000 | ||
SERP | |||
Defined Benefit Plan Disclosure | |||
SERP, accrued liability | $ 1,100,000 | ||
SERP, accrued expense | $ 97,000 | $ 80,000 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Components of net pension cost | ||
Service cost - benefits earned during the year | $ 1,663 | $ 1,857 |
Interest costs on projected benefit obligations | 1,023 | 1,159 |
Expected return on plan assets | (1,825) | (1,572) |
Expected administrative expenses | 104 | 110 |
Amortization of prior service cost | 50 | |
Amortization of unrecognized net loss | 181 | 218 |
Net periodic pension cost | $ 1,146 | $ 1,822 |
Earnings per Share - Stock Divi
Earnings per Share - Stock Dividend (Details) | Jul. 01, 2020 |
Earnings per Share | |
Dividends Payable, Date to be Paid | Jul. 1, 2020 |
Special stock dividend, rate percent | 4.00% |
Special stock dividend, record date | Jun. 15, 2020 |
Earnings per Share - Components
Earnings per Share - Components (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic earnings per share: | ||
Net income available to shareholders | $ 5,839 | $ 868 |
Average shares outstanding | 6,362,869 | 6,510,189 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 0.13 |
Diluted earnings per share: | ||
Net income available to shareholders | $ 5,839 | $ 868 |
Average shares outstanding | 6,362,869 | 6,510,189 |
Effect of dilutive stock options | 0 | 0 |
Average shares outstanding including dilutive stock options | 6,362,869 | 6,510,189 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 0.13 |
Earnings per Share - Anti-dilut
Earnings per Share - Anti-dilutive (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Option shares | |
Summary of anti-dilutive shares | |
Anti-dilutive shares | 0 |
Earnings per Share - Repurchase
Earnings per Share - Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Earnings Per Share | |||
Stock repurchased | $ 2,148 | $ 719 | |
Repurchase Program | |||
Earnings Per Share | |||
Value of shares authorized for repurchase | $ 5,000 | ||
Stock repurchased (in shares) | 117,632 | ||
Stock repurchased (in dollars per share) | $ 18.26 | ||
Stock repurchased | $ 2,100 | ||
Remaining available for repurchase of shares | $ 1,900 |
Fair Value Measurements - Mortg
Fair Value Measurements - Mortgage Servicing Rights - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Available for sale debt securities, fair value | $ 238,142 | $ 198,030 |
Mortgage servicing rights, fair value | 2,494 | 2,445 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Available for sale debt securities, fair value | 3,041 | 2,798 |
Assets, Total | 165,174 | 199,209 |
Other Observable Inputs (Level 2) | ||
Assets: | ||
Available for sale debt securities, fair value | 235,101 | 195,232 |
Assets, Total | 243,709 | 204,004 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Assets, Total | 1,289,868 | 1,293,956 |
Recurring | ||
Assets: | ||
Assets, Total | 240,681 | 200,507 |
Recurring | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 3,041 | 2,798 |
Recurring | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 19,829 | 11,929 |
Recurring | U.S. government-sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 22,551 | 22,874 |
Recurring | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 70,818 | 58,744 |
Recurring | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 108,644 | 90,112 |
Recurring | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 12,023 | 10,344 |
Recurring | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 1,236 | 1,229 |
Recurring | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 45 | 32 |
Recurring | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | 2,494 | 2,445 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Assets, Total | 3,086 | 2,830 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 3,041 | 2,798 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government-sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 45 | 32 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Assets: | ||
Assets, Total | 235,101 | 195,232 |
Recurring | Other Observable Inputs (Level 2) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 19,829 | 11,929 |
Recurring | Other Observable Inputs (Level 2) | U.S. government-sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 22,551 | 22,874 |
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 70,818 | 58,744 |
Recurring | Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 108,644 | 90,112 |
Recurring | Other Observable Inputs (Level 2) | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 12,023 | 10,344 |
Recurring | Other Observable Inputs (Level 2) | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 1,236 | 1,229 |
Recurring | Other Observable Inputs (Level 2) | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Assets, Total | 2,494 | 2,445 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and federal agency obligations | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. government-sponsored enterprises | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Other debt securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Bank issued trust preferred securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets: | ||
Available for sale debt securities, fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights (MSRs) | ||
Assets: | ||
Mortgage servicing rights, fair value | $ 2,494 | $ 2,445 |
Fair Value Measurements - Mor_2
Fair Value Measurements - Mortgage Servicing Rights - Level 3 (Details) - Recurring - Significant Unobservable Inputs (Level 3) - Mortgage servicing rights (MSRs) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair value of assets | ||
Balance at beginning of period | $ 2,445 | $ 2,482 |
Total (losses) or gains (realized/unrealized): Included in earnings | 121 | 275 |
Total (losses) or gains (realized/unrealized): Included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issues | 170 | 67 |
Settlements | 0 | 0 |
Balance at end of period | $ 2,494 | $ 2,274 |
Fair Value Measurements - Mor_3
Fair Value Measurements - Mortgage Servicing Rights - Other (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value Measurements | |||
Impaired loans with a specific allowance | $ 24,078,000 | $ 25,389,000 | |
Specific allowance related to impaired loans | 5,144,000 | $ 5,113,000 | |
Collateral dependent impaired loans | |||
Fair Value Measurements | |||
Impaired loans with a specific allowance | 31,800,000 | $ 5,800,000 | |
Specific allowance related to impaired loans | 4,700,000 | 200,000 | |
Impaired financing receivable charge offs | $ 23,000 | $ 55,000 |
Fair Value Measurements - Other
Fair Value Measurements - Other Real Estate Owned and Repossessed Assets (Details) - Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total Fair Value | ||
Fair Value Measurements | ||
Impaired loans | $ 27,075 | $ 5,590 |
Other real estate and repossessed assets | 12,140 | 12,769 |
Total Fair Value | Commercial, financial, and agricultural | ||
Fair Value Measurements | ||
Impaired loans | 4,188 | 2,422 |
Total Fair Value | Commercial real estate | Construction | ||
Fair Value Measurements | ||
Impaired loans | 408 | |
Total Fair Value | Commercial real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 22,484 | 827 |
Total Fair Value | Residential real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 403 | 1,921 |
Total Fair Value | Installment and other consumer | ||
Fair Value Measurements | ||
Impaired loans | 12 | |
Total Gains (Losses) | ||
Fair Value Measurements | ||
Other real estate and repossessed assets | (73) | (12) |
Gains (losses) on impaired loans | (23) | (55) |
Total Gains (Losses) | Commercial real estate | Construction | ||
Fair Value Measurements | ||
Gains (losses) on impaired loans | 0 | |
Total Gains (Losses) | Commercial real estate | Mortgages | ||
Fair Value Measurements | ||
Gains (losses) on impaired loans | (23) | (22) |
Total Gains (Losses) | Residential real estate | Mortgages | ||
Fair Value Measurements | ||
Gains (losses) on impaired loans | (19) | |
Total Gains (Losses) | Installment and other consumer | ||
Fair Value Measurements | ||
Gains (losses) on impaired loans | (14) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Other real estate and repossessed assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial, financial, and agricultural | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Construction | ||
Fair Value Measurements | ||
Impaired loans | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Installment and other consumer | ||
Fair Value Measurements | ||
Impaired loans | 0 | |
Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Other real estate and repossessed assets | 0 | 0 |
Other Observable Inputs (Level 2) | Commercial, financial, and agricultural | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Other Observable Inputs (Level 2) | Commercial real estate | Construction | ||
Fair Value Measurements | ||
Impaired loans | 0 | |
Other Observable Inputs (Level 2) | Commercial real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Other Observable Inputs (Level 2) | Residential real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 0 | 0 |
Other Observable Inputs (Level 2) | Installment and other consumer | ||
Fair Value Measurements | ||
Impaired loans | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Impaired loans | 27,075 | 5,590 |
Other real estate and repossessed assets | 12,140 | 12,769 |
Significant Unobservable Inputs (Level 3) | Commercial, financial, and agricultural | ||
Fair Value Measurements | ||
Impaired loans | 4,188 | 2,422 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | Construction | ||
Fair Value Measurements | ||
Impaired loans | 408 | |
Significant Unobservable Inputs (Level 3) | Commercial real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | 22,484 | 827 |
Significant Unobservable Inputs (Level 3) | Residential real estate | Mortgages | ||
Fair Value Measurements | ||
Impaired loans | $ 403 | 1,921 |
Significant Unobservable Inputs (Level 3) | Installment and other consumer | ||
Fair Value Measurements | ||
Impaired loans | $ 12 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Assets: | |||
Cash and due from banks | $ 18,496 | $ 19,235 | |
Federal funds sold and overnight interest-bearing deposits | 128,207 | 161,128 | |
Certificates of deposit in other banks | 8,897 | 9,376 | |
Available for sale securities | 238,142 | 198,030 | |
Loans held for sale | 6,308 | 5,099 | $ 4,300 |
Accrued interest receivable | 6,488 | 6,640 | |
Deposits: | |||
Non-interest bearing demand | 431,035 | 382,492 | |
Savings, interest checking and money market | 708,615 | 723,808 | |
Operating lease liabilities | 2,058 | 2,137 | |
Accrued interest payable | 439 | 837 | |
Carrying Amount | |||
Assets: | |||
Cash and due from banks | 18,496 | 19,235 | |
Federal funds sold and overnight interest-bearing deposits | 128,207 | 161,128 | |
Certificates of deposit in other banks | 8,897 | 9,376 | |
Available for sale securities | 238,142 | 198,030 | |
Other investment securities | 6,188 | 6,353 | |
Loans, net | 1,257,824 | 1,268,854 | |
Loans held for sale | 6,308 | 5,099 | |
Cash surrender value - life insurance | 2,465 | 2,451 | |
Accrued interest receivable | 6,488 | 6,640 | |
Assets, Total | 1,673,015 | 1,677,166 | |
Deposits: | |||
Non-interest bearing demand | 431,035 | 382,492 | |
Savings, interest checking and money market | 708,615 | 723,808 | |
Time deposits | 254,332 | 277,306 | |
Federal funds purchased and securities sold under agreements to repurchase | 42,018 | 45,154 | |
Federal Home Loan Bank advances and other borrowings | 97,614 | 106,674 | |
Subordinated notes | 49,486 | 49,486 | |
Operating lease liabilities | 2,058 | 2,137 | |
Accrued interest payable | 439 | 837 | |
Liabilities, Total | 1,585,597 | 1,587,894 | |
Total Fair Value | |||
Assets: | |||
Cash and due from banks | 18,496 | 19,235 | |
Federal funds sold and overnight interest-bearing deposits | 128,207 | 161,128 | |
Certificates of deposit in other banks | 8,897 | 9,376 | |
Available for sale securities | 238,142 | 198,030 | |
Other investment securities | 6,188 | 6,353 | |
Loans, net | 1,283,560 | 1,288,677 | |
Loans held for sale | 6,308 | 5,279 | |
Cash surrender value - life insurance | 2,465 | 2,451 | |
Accrued interest receivable | 6,488 | 6,640 | |
Assets, Total | 1,698,751 | 1,697,169 | |
Deposits: | |||
Non-interest bearing demand | 431,035 | 382,492 | |
Savings, interest checking and money market | 708,615 | 723,808 | |
Time deposits | 256,047 | 279,569 | |
Federal funds purchased and securities sold under agreements to repurchase | 42,018 | 45,154 | |
Federal Home Loan Bank advances and other borrowings | 99,750 | 110,121 | |
Subordinated notes | 41,176 | 40,929 | |
Operating lease liabilities | 2,058 | 2,137 | |
Accrued interest payable | 439 | 837 | |
Liabilities, Total | 1,581,138 | 1,585,047 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Cash and due from banks | 18,496 | 19,235 | |
Federal funds sold and overnight interest-bearing deposits | 128,207 | 161,128 | |
Certificates of deposit in other banks | 8,897 | 9,376 | |
Available for sale securities | 3,041 | 2,798 | |
Other investment securities | 45 | 32 | |
Loans, net | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Cash surrender value - life insurance | 0 | 0 | |
Accrued interest receivable | 6,488 | 6,640 | |
Assets, Total | 165,174 | 199,209 | |
Deposits: | |||
Non-interest bearing demand | 431,035 | 382,492 | |
Savings, interest checking and money market | 708,615 | 723,808 | |
Time deposits | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase | 42,018 | 45,154 | |
Federal Home Loan Bank advances and other borrowings | 0 | 0 | |
Subordinated notes | 0 | 0 | |
Operating lease liabilities | 0 | 0 | |
Accrued interest payable | 439 | 837 | |
Liabilities, Total | 1,182,107 | 1,152,291 | |
Other Observable Inputs (Level 2) | |||
Assets: | |||
Cash and due from banks | 0 | 0 | |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 | |
Certificates of deposit in other banks | 0 | 0 | |
Available for sale securities | 235,101 | 195,232 | |
Other investment securities | 6,143 | 6,321 | |
Loans, net | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Cash surrender value - life insurance | 2,465 | 2,451 | |
Accrued interest receivable | 0 | 0 | |
Assets, Total | 243,709 | 204,004 | |
Deposits: | |||
Non-interest bearing demand | 0 | 0 | |
Savings, interest checking and money market | 0 | 0 | |
Time deposits | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | |
Federal Home Loan Bank advances and other borrowings | 99,750 | 110,121 | |
Subordinated notes | 41,176 | 40,929 | |
Operating lease liabilities | 2,058 | 2,137 | |
Accrued interest payable | 0 | 0 | |
Liabilities, Total | 142,984 | 153,187 | |
Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Cash and due from banks | 0 | 0 | |
Federal funds sold and overnight interest-bearing deposits | 0 | 0 | |
Certificates of deposit in other banks | 0 | 0 | |
Available for sale securities | 0 | 0 | |
Other investment securities | 0 | 0 | |
Loans, net | 1,283,560 | 1,288,677 | |
Loans held for sale | 6,308 | 5,279 | |
Cash surrender value - life insurance | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Assets, Total | 1,289,868 | 1,293,956 | |
Deposits: | |||
Non-interest bearing demand | 0 | 0 | |
Savings, interest checking and money market | 0 | 0 | |
Time deposits | 256,047 | 279,569 | |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | |
Federal Home Loan Bank advances and other borrowings | 0 | 0 | |
Subordinated notes | 0 | 0 | |
Operating lease liabilities | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Liabilities, Total | $ 256,047 | $ 279,569 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 421,615 | $ 441,598 |
Commitments to extend credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 350,465 | 264,528 |
Commitments to originate residential first and second mortgage loans | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | 50,340 | 51,270 |
Standby letters of credit | ||
Contractual amount of off-balance-sheet financial instruments | ||
Total contractual amount of off-balance-sheet financial instruments | $ 20,810 | $ 125,800 |
Commitments and Contingencies_2
Commitments and Contingencies - Other (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Minimum | |
Commitments and Contingencies | |
Remaining term of conditional commitment | 1 month |
Maximum | |
Commitments and Contingencies | |
Remaining term of conditional commitment | 5 years |