Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 0-22208 | ||
Entity Registrant Name | QCR HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 42-1397595 | ||
Entity Address, Address Line One | 3551 7th Street | ||
Entity Address, City or Town | Moline | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 61265 | ||
City Area Code | 309 | ||
Local Phone Number | 736-3580 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $1.00 Par Value | ||
Trading Symbol | QCRH | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 474,998,914 | ||
Entity Common Stock, Shares Outstanding (in shares) | 15,826,953 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000906465 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 61,329 | $ 76,254 |
Federal funds sold | 9,080 | 9,800 |
Interest-bearing deposits at financial institutions | 86,596 | 147,891 |
Securities held to maturity, at amortized cost | 476,165 | 400,646 |
Securities available for sale, at fair value | 361,966 | 210,695 |
Total securities | 838,131 | 611,341 |
Loans receivable held for sale | 3,758 | 3,673 |
Loans/leases receivable held for investment | 4,247,371 | 3,686,532 |
Gross loans/leases receivable | 4,251,129 | 3,690,205 |
Less allowance for estimated losses on loans/leases | (84,376) | (36,001) |
Net loans/leases receivable | 4,166,753 | 3,654,204 |
Bank-owned life insurance | 60,586 | 58,834 |
Premises and equipment, net | 72,693 | 73,859 |
Restricted investment securities | 18,103 | 23,252 |
Other real estate owned, net | 20 | 4,129 |
Goodwill | 74,066 | 74,748 |
Intangibles | 11,381 | 14,970 |
Derivatives | 222,757 | 87,827 |
Assets held for sale | 11,966 | |
Other assets | 61,302 | 59,975 |
Total assets | 5,682,797 | 4,909,050 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 1,145,378 | 777,224 |
Interest-bearing | 3,453,759 | 3,133,827 |
Total deposits | 4,599,137 | 3,911,051 |
Short-term borrowings | 5,430 | 13,423 |
Federal Home Loan Bank advances | 15,000 | 159,300 |
Subordinated notes | 118,691 | 68,394 |
Junior subordinated debentures | 37,993 | 37,838 |
Derivatives | 229,270 | 88,437 |
Liabilities held for sale | 5,003 | |
Other liabilities | 83,483 | 90,253 |
Total liabilities | 5,089,004 | 4,373,699 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 December 2020 and December 2019 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 December 2020 - 15,805,711 shares issued and outstanding December 2019 - 15,828,098 shares issued and outstanding | 15,806 | 15,828 |
Additional paid-in capital | 275,807 | 274,785 |
Retained earnings | 300,804 | 245,836 |
Accumulated other comprehensive income (loss): | ||
Securities available for sale | 9,008 | 2,817 |
Derivatives | (7,632) | (3,915) |
Total stockholders' equity | 593,793 | 535,351 |
Total liabilities and stockholders' equity | 5,682,797 | 4,909,050 |
Interest rate swap | ||
Assets | ||
Derivatives | 222,431 | 84,679 |
Liabilities and Stockholders' Equity | ||
Derivatives | 222,431 | $ 84,679 |
Interest rate cap | ||
Assets | ||
Derivatives | $ 67 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 15,805,711 | 15,828,098 |
Common stock, outstanding (in shares) | 15,805,711 | 15,828,098 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Interest and dividend income: | ||||
Loans/leases, including fees | $ 173,967 | $ 190,324 | $ 160,160 | |
Securities: | ||||
Taxable | 7,787 | 6,607 | 6,353 | |
Nontaxable | 14,900 | 13,858 | 13,668 | |
Interest-bearing deposits at financial institutions | 669 | 3,910 | 1,267 | |
Restricted investment securities | 1,031 | 1,174 | 1,093 | |
Federal funds sold | 19 | 203 | 338 | |
Total interest and dividend income | 198,373 | 216,076 | 182,879 | |
Interest expense: | ||||
Deposits | 23,269 | 50,875 | 30,675 | |
Short-term borrowings | 84 | 363 | 271 | |
Federal Home Loan Bank advances | 1,087 | 2,894 | 4,193 | |
Other borrowings | 513 | 3,207 | ||
Subordinated notes | 4,697 | 3,564 | 139 | |
Junior subordinated debentures | 2,286 | 2,308 | 1,999 | |
Total interest expense | 31,423 | 60,517 | 40,484 | |
Net interest income | 166,950 | 155,559 | 142,395 | |
Provision for loan/lease losses | 55,704 | 7,066 | 12,658 | |
Net interest income after provision for loan/lease losses | 111,246 | 148,493 | 129,737 | |
Noninterest income: | ||||
Revenue | 312,171 | 294,844 | 224,420 | |
Gains on sales of residential real estate loans, net | 4,680 | 2,571 | 901 | |
Gains on sales of government guaranteed portions of loans, net | 224 | 748 | 405 | |
Swap fee income | 74,821 | 28,295 | 10,787 | |
Securities gains (losses), net | 2,484 | (30) | ||
Earnings on bank-owned life insurance | 1,904 | 1,973 | 1,632 | |
Gain on sale of assets and liabilities of subsidiary | (158) | 12,286 | ||
Other | 4,814 | 5,429 | 3,848 | |
Total noninterest income | 113,798 | 78,768 | 41,541 | |
Noninterest expense: | ||||
Salaries and employee benefits | 96,268 | 92,063 | 68,994 | |
Occupancy and equipment expense | 16,504 | 15,106 | 12,884 | |
Professional and data processing fees | 14,644 | 13,381 | 11,452 | |
Acquisition costs | 1,795 | |||
Post-acquisition compensation, transition and integration costs | 214 | 3,582 | 2,086 | |
Disposition costs | 690 | 3,325 | ||
FDIC insurance, other insurance and regulatory fees | 4,164 | 2,955 | 3,594 | |
Loan/lease expense | 1,435 | 1,097 | 1,544 | |
Net cost of (income from) and gains/losses on operations of other real estate | (307) | 3,789 | 2,489 | |
Advertising and marketing | 3,260 | 4,548 | 3,552 | |
Bank service charges | 2,016 | 2,009 | 1,838 | |
Losses on liability extinguishment | 3,907 | 436 | ||
Correspondent banking expense | 838 | 836 | 821 | |
Intangibles amortization | 2,149 | 2,266 | 1,692 | |
Goodwill impairment | 500 | 3,000 | ||
Loss (gain) on sale of subsidiary/certain assets and liabilities of subsidiary | 158 | (12,286) | ||
Other | 5,315 | 6,841 | 6,402 | |
Total noninterest expense | 151,755 | 155,234 | 119,143 | |
Net income before income taxes | 73,289 | 72,027 | 52,135 | |
Federal and state income tax expense | 12,707 | 14,619 | 9,015 | |
Net income | $ 60,582 | $ 57,408 | $ 43,120 | |
Basic earnings per common share (in dollars per share) | $ 3.84 | $ 3.65 | $ 2.92 | |
Diluted earnings per common share (in dollars per share) | $ 3.80 | $ 3.60 | $ 2.86 | |
Weighted average common shares outstanding (in shares) | [1] | 15,771,650 | 15,730,016 | 14,768,687 |
Weighted average common and common equivalent shares outstanding (in shares) | [2] | 15,952,637 | 15,967,775 | 15,064,730 |
Cash dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 | |
Trust department fees | ||||
Noninterest income: | ||||
Revenue | $ 9,207 | $ 9,559 | $ 8,707 | |
Investment advisory and management fees | ||||
Noninterest income: | ||||
Revenue | 5,318 | 6,995 | 4,726 | |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 6,041 | 6,812 | 6,420 | |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 3,402 | 3,357 | 3,263 | |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 903 | $ 773 | $ 852 | |
[1] | The increase in weighted average common shares outstanding from 2018 to 2019 was primarily due to the common stock | |||
[2] | Excludes anti-dilutive shares of 104,636, 80,437 and 91,954 at December 31, 2020, 2019 and 2018, respectively |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 60,582 | $ 57,408 | $ 43,120 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) arising during the period before tax | 10,657 | 8,761 | (4,464) |
Less reclassification adjustment for gains (losses) included in net income before tax | 2,484 | (30) | |
Unrealized gains (losses) on securities available for sale | 8,173 | 8,791 | (3,609) |
Unrealized holding losses arising during the period before tax | (6,854) | (3,806) | (1,199) |
Unrealized gains (losses) on derivatives | (4,862) | (3,806) | (597) |
Unrealized holding gains (losses) arising during the period before tax on securities held for sale | 587 | ||
Less realized holding gains on securities sold | (61) | ||
Unrealized holding losses arising during the period before tax on derivatives held for sale | (446) | ||
Less reclassification adjustment for caplet ineffectiveness before tax | 422 | ||
Less realized holding losses on derivatives sold | 392 | ||
Unrealized gains (losses) on assets held for sale | 894 | ||
Other comprehensive income (loss), before tax | 3,311 | 5,879 | (4,206) |
Tax expense (credit) | 837 | 1,433 | (1,000) |
Other comprehensive income (loss), net of tax | 2,474 | 4,446 | (3,206) |
Comprehensive income | 63,056 | $ 61,854 | 39,914 |
Unhedging Caplet | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment for unhedging caplet | (649) | ||
Swap | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment for unhedging caplet | (792) | ||
Caplet Amortization | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment for unhedging caplet | $ (551) | ||
Caplet Ineffectiveness | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment for unhedging caplet | (602) | ||
ASU 2016-01 | |||
Other comprehensive income (loss): | |||
Less reclassification adjustment for adoption of ASU 2016-01 | $ 855 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member]Springfield Bancshares | Common Stock [Member]Bates Companies | Common Stock [Member] | Additional Paid-in Capital [Member]Springfield Bancshares | Additional Paid-in Capital [Member]Bates Companies | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Springfield Bancshares | Bates Companies | Total |
Balance at Dec. 31, 2017 | $ 13,918 | $ 189,078 | $ 151,962 | $ (1,671) | $ 353,287 | ||||||
Net income | 43,120 | 43,120 | |||||||||
Other comprehensive income (loss), net of tax | (3,206) | (3,206) | |||||||||
Common cash dividends declared | (3,546) | (3,546) | |||||||||
Issuance of shares of common stock as a result of the acquisition, net of issuance cost | $ 24 | $ 976 | $ 1,000 | ||||||||
Issuance of shares of common stock as a result of a merger, net of issuance costs | $ 1,699 | $ 78,832 | $ 80,531 | ||||||||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 15 | 576 | 591 | ||||||||
Issuance of shares of common stock as a result of stock options exercised | 60 | 734 | 794 | ||||||||
Stock issuance costs | $ 106,327 | ||||||||||
Stock-based compensation expense | 1,443 | 1,443 | |||||||||
Restricted stock awards and restricted stock units of common stock , net of restricted stock units withheld for payment for taxes | $ 23 | (23) | |||||||||
Restricted stock awards and restricted stock units of common stock , net of restricted stock units withheld for payment for taxes (in shares) | 22,660 | ||||||||||
Exchange of shares of common stock in connection with payroll taxes for restricted stock vested and in connection with stock options exercised | $ (21) | (855) | (876) | ||||||||
Balance at Dec. 31, 2018 | 15,718 | 270,761 | 192,203 | (5,544) | 473,138 | ||||||
Impact of adoption of ASU 2016-01 | 667 | (667) | |||||||||
Net income | 57,408 | 57,408 | |||||||||
Other comprehensive income (loss), net of tax | 4,446 | 4,446 | |||||||||
Common cash dividends declared | (3,775) | (3,775) | |||||||||
Issuance of shares of common stock as a result of the acquisition, net of issuance cost | $ 9 | $ 390 | $ 399 | ||||||||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 29 | 779 | 808 | ||||||||
Issuance of shares of common stock as a result of stock options exercised | 59 | 660 | 719 | ||||||||
Stock-based compensation expense | 2,469 | 2,469 | |||||||||
Restricted stock awards and restricted stock units of common stock , net of restricted stock units withheld for payment for taxes | $ 20 | (63) | (43) | ||||||||
Restricted stock awards and restricted stock units of common stock , net of restricted stock units withheld for payment for taxes (in shares) | 19,869 | ||||||||||
Exchange of shares of common stock in connection with payroll taxes for restricted stock vested and in connection with stock options exercised | $ (7) | (211) | (218) | ||||||||
Balance at Dec. 31, 2019 | 15,828 | 274,785 | 245,836 | (1,098) | 535,351 | ||||||
Impact of adoption of ASU 2016-01 | 245,836 | ||||||||||
Net income | 60,582 | 60,582 | |||||||||
Other comprehensive income (loss), net of tax | 2,474 | 2,474 | |||||||||
Repurchase and cancellation of shares of common stock as a result of share repurchase program | (101) | (1,843) | (1,835) | (3,779) | |||||||
Common cash dividends declared | (3,779) | (3,779) | |||||||||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan | 37 | 878 | 915 | ||||||||
Issuance of shares of common stock as a result of stock options exercised | 42 | 403 | 445 | ||||||||
Stock-based compensation expense | 2,150 | 2,150 | |||||||||
Restricted stock awards and restricted stock units of common stock , net of restricted stock units withheld for payment for taxes | $ 9 | 304 | 313 | ||||||||
Restricted stock awards and restricted stock units of common stock , net of restricted stock units withheld for payment for taxes (in shares) | 8,838 | ||||||||||
Exchange of shares of common stock in connection with payroll taxes for restricted stock vested and in connection with stock options exercised | $ (9) | (870) | (879) | ||||||||
Balance at Dec. 31, 2020 | $ 15,806 | $ 275,807 | $ 300,804 | $ 1,376 | 593,793 | ||||||
Impact of adoption of ASU 2016-01 | $ 300,804 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 |
Issuance of shares of common stock as s result of stock options exercised (in shares) | 41,650 | 59,393 | 60,127 |
Bates Companies | |||
Issuance of common stock, net of issuance costs, shares (in shares) | 23,501 | ||
Retained Earnings [Member] | |||
Cash dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 |
Common Stock [Member] | |||
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 100,932 | ||
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan (in shares) | 37,114 | 28,775 | 15,528 |
Issuance of shares of common stock as s result of stock options exercised (in shares) | 41,650 | 59,393 | 60,127 |
Exchange of shares of common stock in connection with stock options exercised and restricted stock vested (in shares) | 9,057 | 7,547 | 21,190 |
Common Stock [Member] | Springfield Bancshares | |||
Issuance of common stock, net of issuance costs, shares (in shares) | 1,699,414 | ||
Stock issuance costs | $ 106,327 | ||
Common Stock [Member] | Bates Companies | |||
Issuance of shares of common stock as a result of the acquisition, net of issuance cost (in shares) | 9,400 | 23,501 | |
Issuance of common stock, net of issuance costs, shares (in shares) | 9,400 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 60,582 | $ 57,408 | $ 43,120 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 5,333 | 5,225 | 4,451 | |
Provision for loan/lease losses | $ 979 | 55,704 | 7,066 | 12,658 |
Deferred income taxes | (14,530) | 6,364 | 6,292 | |
Stock-based compensation expense | 2,150 | 2,469 | 1,443 | |
Deferred compensation expense accrued | 3,821 | 2,773 | 1,824 | |
Losses (gains) on other real estate owned, net | (317) | 3,361 | 2,585 | |
Amortization of premiums on securities, net | 969 | 1,561 | 1,614 | |
Caplet amortization | 551 | |||
Securities (gains) losses, net | (2,484) | 30 | ||
Loans originated for sale | (236,734) | (151,692) | (57,698) | |
Proceeds on sales of loans | 241,553 | 152,633 | 58,353 | |
Gains on sales of residential real estate loans | (4,680) | (2,571) | (901) | |
Gains on sales of government guaranteed portions of loans | (224) | (748) | (405) | |
Loss on liability extinguishment, net | 3,907 | 436 | ||
Losses (gains) on sales of premises and equipment | (19) | 753 | ||
Amortization of intangibles | 2,149 | 2,266 | 1,692 | |
Accretion of acquisition fair value adjustments, net | (3,271) | (4,344) | (5,527) | |
Increase in cash value of bank-owned life insurance | (1,904) | (1,973) | (1,632) | |
Loss (gain) on sale of subsidiary/certain assets and liabilities of subsidiary | 158 | (12,286) | ||
Goodwill impairment | 500 | 3,000 | ||
Decrease (increase) in other assets | 12,802 | (19,152) | (11,137) | |
Increase (decrease) in other liabilities | (13,839) | 23,915 | 7,539 | |
Net cash provided by operating activities | 112,177 | 76,494 | 64,271 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Net decrease in federal funds sold | 720 | 16,598 | 3,799 | |
Net decrease (increase) in interest-bearing deposits at financial institutions | 61,295 | (69,984) | (14,508) | |
Proceeds from sales of other real estate owned | 4,477 | 840 | 2,539 | |
Activity in securities portfolio: | ||||
Purchases | (356,127) | (71,963) | (84,045) | |
Calls, maturities and redemptions | 53,007 | 25,193 | 23,931 | |
Paydowns | 47,313 | 50,830 | 44,287 | |
Sales | 38,562 | 30,055 | 1,938 | |
Activity in restricted investment securities: | ||||
Purchases | (4,600) | (5,859) | (5,409) | |
Redemptions | 9,749 | 7,621 | 3,157 | |
Proceeds from the liquidation of assets held for sale | 10,999 | |||
Net increase in loans/leases originated and held for investment | (564,748) | (320,368) | (292,697) | |
Purchase of premises and equipment | (4,268) | (12,429) | (11,457) | |
Proceeds from sales of premises and equipment | 101 | 2,562 | ||
Purchase of derivatives | (4,347) | |||
Payment for termination of derivative | (808) | |||
Net cash received (transferred) for sale of subsidiary/certain assets and liabilities of subsidiary | (154) | 42,587 | ||
Net cash paid for acquisition | (5,183) | |||
Net cash (used in) investing activities | (704,482) | (308,664) | (333,648) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net increase in deposit accounts | 658,592 | 335,580 | 271,266 | |
Net increase (decrease) in short-term borrowings | (7,993) | (14,193) | 13,638 | |
Activity in Federal Home Loan Bank advances: | ||||
Term advances | 125,000 | 25,000 | 15,080 | |
Calls and maturities | (121,600) | (35,000) | (40,000) | |
Net change in short-term and overnight advances | (94,300) | (52,465) | 24,765 | |
Prepayments | (55,274) | (30,323) | ||
Activity in other borrowings: | ||||
Proceeds from other borrowings | 9,000 | |||
Calls, maturities and scheduled principal payments | (11,937) | (12,550) | ||
Prepayments | (46,313) | |||
Paydown of revolving line of credit | (9,000) | |||
Prepayments on brokered and public time deposits | 29,153 | |||
Proceeds from subordinated notes | 50,000 | 63,393 | ||
Payment of cash dividends on common stock | (3,779) | (3,767) | (3,300) | |
Proceeds from issuance of common stock, net | 1,360 | 1,926 | 1,279 | |
Repurchase and cancellation of shares | (3,779) | |||
Net cash provided by financing activities | 577,380 | 222,901 | 279,178 | |
Net increase (decrease) in cash and due from banks | (14,925) | (9,269) | 9,801 | |
Cash and due from banks, beginning | 76,254 | 85,523 | 75,722 | |
Cash and due from banks, ending | 76,254 | 61,329 | 76,254 | 85,523 |
Supplemental disclosure of cash flow information, cash payments for: | ||||
Interest | 32,178 | 59,292 | 38,782 | |
Income/franchise taxes | 24,567 | 2,719 | 30 | |
Supplemental schedule of noncash investing activities: | ||||
Change in accumulated other comprehensive income, unrealized gains on securities available for sale and derivative instruments, net | 2,474 | 4,446 | (3,206) | |
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised | (740) | (218) | (876) | |
Transfers of loans to other real estate owned | 51 | 1,086 | 943 | |
Increase in the fair value of back-to-back interest rate swap assets and liabilities | 137,752 | 62,483 | 17,798 | |
Dividends payable | 947 | 947 | 939 | |
Transfer of equity securities from securities available for sale to other assets at fair value | 2,614 | |||
Assets Sold: | ||||
Total assets sold | 11,966 | 11,966 | ||
Liabilities Sold: | ||||
Total liabilities sold | 5,003 | 5,003 | ||
Gain (loss) on sale of subsidiary and certain assets and certain liabilities of subsidiary: | (158) | 12,286 | ||
Fair value of assets acquired: | ||||
Cash and due from banks | 4,651 | |||
Interest-bearing deposits at financial institutions | 62,924 | |||
Securities | 4,845 | |||
Loans receivable, net | 477,337 | |||
Bank-owned life insurance | 7,092 | |||
Premises and equipment, net | 6,092 | |||
Restricted investment securities | 3,654 | |||
Intangibles | 10,064 | |||
Other assets | 2,255 | |||
Total assets acquired | 578,914 | |||
Fair value of liabilities assumed: | ||||
Deposits | 439,579 | |||
Short-term borrowings | 1,143 | |||
FHLB advances | 74,540 | |||
Other borrowings | 9,544 | |||
Other liabilities | 8,878 | |||
Total liabilities assumed | 533,684 | |||
Net assets acquired | 45,230 | |||
Consideration paid: | ||||
Cash paid | 9,834 | |||
Promissory note | 1,500 | |||
Contingent commitment | 2,000 | |||
Common stock | 81,637 | |||
Total consideration paid | 94,971 | |||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||
Goodwill | 49,741 | |||
RB&T | ||||
Activity in restricted investment securities: | ||||
Net cash received (transferred) for sale of subsidiary/certain assets and liabilities of subsidiary | 42,600 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Bates Companies | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Loss (gain) on sale of subsidiary/certain assets and liabilities of subsidiary | 158 | (12,286) | ||
Activity in restricted investment securities: | ||||
Net cash transferred in sale of subsidiary | (154) | |||
Supplemental schedule of noncash investing activities: | ||||
Consideration received on sale of the Bates Companies | 1,523 | |||
Supplemental disclosure of cash flow information for sale of subsidiary/certain assets and certain liabilities of subsidiary: | ||||
Cash proceeds | 195 | 46,560 | ||
Assets Sold: | ||||
Cash and due from banks | 3,973 | 349 | 3,973 | |
Interest-bearing deposits at financial institutions | 55,291 | 55,291 | ||
Securities held to maturity, at amortized cost | 3,243 | 3,243 | ||
Securities available for sale, at fair value | 21,874 | 21,874 | ||
Loans/leases receivable held for investment, net | 357,931 | 357,931 | ||
Premises and equipment, net | 5,612 | 19 | 5,612 | |
Restricted investment securities | 675 | 675 | ||
Other real estate owned, net | 2,134 | 2,134 | ||
Other assets | 3,228 | 2,259 | 3,228 | |
Total assets sold | 453,961 | 2,627 | 453,961 | |
Liabilities Sold: | ||||
Noninterest-bearing deposits | 69,802 | 69,802 | ||
Interest-bearing deposits | 331,486 | 331,486 | ||
Short-term borrowings | 1,158 | 1,158 | ||
Federal Home Loan Bank advances | 15,000 | 15,000 | ||
Other liabilities | 2,241 | 946 | 2,241 | |
Total liabilities sold | 419,687 | 946 | 419,687 | |
Net assets sold | $ 34,274 | 1,681 | 34,274 | |
Forgiveness of earn-out consideration | 880 | |||
Note receivable consideration | 448 | |||
Gain (loss) on sale of subsidiary and certain assets and certain liabilities of subsidiary: | (158) | 12,286 | ||
Springfield Bancshares | ||||
Consideration paid: | ||||
Cash paid | 3,700 | |||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||
Goodwill | 45,975 | |||
Bates Companies | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Goodwill impairment | $ 500 | $ 3,000 | ||
Consideration paid: | ||||
Cash paid | 1,400 | |||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||
Goodwill | $ 3,766 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Nature of Business and Significant Accounting Policies | Note 1. Nature of Business and Significant Accounting Policies Basis of presentation: The acronyms and abbreviations identified below are used in the Notes to the Consolidated Financial Statements, as well as in the other sections of this Annual Report on Form 10-K (including appendices). It may be helpful to refer back to this page as you read this report. Allowance: Allowance for estimated losses on loans/leases Guaranty Bank: Guaranty Bank and Trust Company AOCI: Accumulated other comprehensive income (loss) IB&T: Illinois Bank & Trust AFS: Available for sale Iowa Superintendent: Iowa Superintendent of Banking ASC: Accounting Standards Codification LCR: Liquidity Coverage Ratio ASC 805: Business Combination Standard LIBOR: London Inter-Bank Offered Rate ASU: Accounting Standards Update LRP: Loan Relief Program Bates Companies: Bates Financial Advisors, Inc., Bates m2: m2 Equipment Finance, LLC Financial Services, Inc., Bates Securities, Inc. and Bates MD&A: Management’s Discussion & Analysis Financial Group, Inc. Missouri Division of Finance: Missouri Department of BBA: British Bankers’ Association Commerce and Insurance BHCA: Bank Holding Company Act of 1956 MSA: Metropolitan Statistical Area BOLI: Bank-owned life insurance NIM: Net interest margin Caps: Interest rate cap derivatives NPA: Nonperforming asset CARES Act: Coronavirus Aid, Relief and Economy Security Act CECL: Current Expected Credit Losses NPL: Nonperforming loan NSFR: Net Stable Funding Ratio OREO: Other real estate owned CFPB: Bureau of Consumer Financial Protection OTTI: Other-than-temporary impairment CDI: Core deposit intangible CNB: Community National Bank PCAOB: Public Company Accounting Oversight Board PCI: Purchased credit impaired Community National: Community National Bancorporation PPP: Paycheck Protection Program COVID-19: Coronavirus Disease 2019 Provision: Provision for loan/lease losses CRA: Community Reinvestment Act PUD LOC: Public Unit Deposit Letter of Credit CRBT: Cedar Rapids Bank & Trust Company QCBT: Quad City Bank & Trust Company CRE: Commercial real estate QCIA: Quad Cities Investment Advisors CRE Guidance: Interagency Concentrations in Commercial RB&T: Rockford Bank & Trust Company Real Estate Lending, Sound Risk Management Practices ROAA: Return on Average Assets guidance ROACE: Return on Average Common Equity CSB: Community State Bank ROAE: Return on Average Equity C&I: Commercial and industrial SBA: U.S. Small Business Administration Dodd-Frank Act: Dodd-Frank Wall Street Reform and SEC: Securities and Exchange Commission Consumer Protection Act SFCB: Springfield First Community Bank DGCL: Delaware General Corporation Law SERPs: Supplemental Executive Retirement Plans DIF: Deposit Insurance Fund Springfield Bancshares: Springfield Bancshares, Inc. EPS: Earnings per share TA: Tangible assets Exchange Act: Securities Exchange Act of 1934, as Tax Act: Tax Cuts and Jobs Act amended TCE: Tangible common equity FASB: Financial Accounting Standards Board TDRs: Troubled debt restructurings FDIC: Federal Deposit Insurance Corporation TEY: Tax equivalent yield Federal Reserve: Board of Governors of the Federal Reserve The Company: QCR Holdings, Inc. System Treasury: U.S. Department of the Treasury FHLB: Federal Home Loan Bank USA Patriot Act: Uniting and Strengthening America by FRB: Federal Reserve Bank of Chicago Providing Appropriate Tools Required to Intercept FTEs: Full-time equivalents and Obstruct Terrorism Act of 2001 GAAP: Generally Accepted Accounting Principles USDA: U.S. Department of Agriculture Goldman Sachs: Goldman Sachs and Company Guaranty: Guaranty Bankshares, Ltd. Note 1. Nature of Business and Significant Accounting Policies (continued) Nature of business: QCR Holdings, Inc. is a bank holding company that has elected to operate as a financial holding company under the BHCA. The Company provides bank and bank-related services through its banking subsidiaries, QCBT, CRBT, CSB and SFCB. The Company also engages in direct financing lease contracts through its wholly-owned equity investment by QCBT in m2, headquartered in Brookfield, Wisconsin. The Company also engages in wealth management services through its banking subsidiaries. On August 12, 2020, the Company sold the Company’s wholly-owned subsidiaries, the Bates Companies, which were originally acquired on October 1, 2018. On November 30, 2019, the Company sold substantially all of the assets and transferred substantially all of the deposits and certain other liabilities of the Company’s wholly-owned subsidiary, RB&T. On July 1, 2018, the Company merged with Springfield Bancshares, the holding company of SFCB, headquartered in Springfield, Missouri. The financial results of the Bates Companies and RB&T prior to their respective sales are included in this report. The financial results of acquired/merged entities for the periods since acquisition/merger are included in this report. See Note 2 to the Consolidated Financial Statements for additional information. QCBT is a commercial bank that serves the Iowa and Illinois Quad Cities and adjacent communities. CRBT is a commercial bank that serves Cedar Rapids, Iowa, and adjacent communities including Cedar Falls and Waterloo, Iowa. CSB is a commercial bank that serves Des Moines, Iowa, and adjacent communities. SFCB is a commercial bank that serves Springfield, Missouri. QCBT, CRBT, and CSB are chartered and regulated under the laws of the state of Iowa. SFCB is chartered and regulated under the laws of the state of Missouri. All four subsidiary banks are insured and subject to regulation by the FDIC. All four subsidiary banks are members of and regulated by the Federal Reserve System. The remaining direct subsidiaries of the Company consist of six non-consolidated subsidiaries formed for the issuance of trust preferred securities. See Note 13 for a listing of these subsidiaries and additional information. Significant accounting policies: Accounting estimates Principles of consolidation Note 1. Nature of Business and Significant Accounting Policies (continued) Presentation of cash flows Cash and due from banks Investment securities All debt securities are evaluated to determine whether declines in fair value below their amortized cost are other-than-temporary. In estimating OTTI losses on debt securities, management considers a number of factors including, but not limited to, (1) the length of time and extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, (3) the current market conditions, and (4) the lack of intent of the Company to sell the security prior to recovery and whether it is not more-likely-than-not that it will be required to sell the security prior to recovery. If the Company lacks the intent to sell the debt security, and it is not more-likely-than-not the entity will be required to sell the security before recovery of its amortized cost basis, the Company will recognize the credit component of an OTTI of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion would be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. Loans receivable, held for sale Loans receivable, held for investment Note 1. Nature of Business and Significant Accounting Policies (continued) The Company discloses the allowance for loan losses (also known as the allowance) by portfolio segment, and credit quality information, impaired financing receivables, nonaccrual status, and TDRs by class of financing receivable. A portfolio segment is the level at which the Company develops and documents a systematic methodology to determine its allowance for loan losses. A class of financing receivable is a further disaggregation of a portfolio segment based on risk characteristics and the Company’s method for monitoring and assessing credit risk. See the following information and Note 4. The Company’s portfolio segments are as follows: ● C&I ● CRE ● Residential real estate ● Installment and other consumer Direct financing leases are considered a segment within the overall loan/lease portfolio. The Company’s classes of loans receivable are as follows: ● C&I ● Owner-occupied CRE ● Commercial construction, land development, and other land loans that re not owner-occupied CRE ● Other non-owner-occupied CRE ● Residential real estate ● Installment and other consumer Direct financing leases are considered a class of financing receivable within the overall loan/lease portfolio. The accounting policies for direct financing leases are disclosed below. Generally, for all classes of loans receivable, loans are considered past due when contractual payments are delinquent for 31 days or greater. For all classes of loans receivable, loans will generally be placed on nonaccrual status when the loan has become 90 days past due (unless the loan is well secured and in the process of collection); or if any of the following conditions exist: ● It becomes evident that the borrower will not make payments, or will not or cannot meet the terms for renewal of a matured loan; ● When full repayment of principal and interest is not expected; ● When the loan is graded “doubtful”; ● When the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future; or ● When foreclosure action is initiated. When a loan is placed on nonaccrual status, income recognition is ceased. Previously recorded but uncollected amounts of interest on nonaccrual loans are reversed at the time the loan is placed on nonaccrual status. Generally, cash collected on nonaccrual loans is applied to principal. Should full collection of principal be expected, cash collected on nonaccrual loans can be recognized as interest income. Note 1. Nature of Business and Significant Accounting Policies (continued) For all classes of loans receivable, nonaccrual loans may be restored to accrual status provided the following criteria are met: ● The loan is current, and all principal and interest amounts contractually due have been made; ● All principal and interest amounts contractually due, including past due payments, are reasonably assured of repayment within a reasonable period; and ● There is a period of minimum repayment performance, as follows, by the borrower in accordance with contractual terms: o Six months of repayment performance for contractual monthly payments, or o One year of repayment performance for contractual quarterly or semi-annual payments. Direct finance leases receivable, held for investment : The Company leases machinery and equipment to customers under leases that qualify as direct financing leases for financial reporting and as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 25% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the lease property delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximate level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Residual value is the estimated fair market value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s estimates are reviewed continuously to ensure reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review results in a lower estimate than had been previously established, a determination is made as to whether the decline in estimated residual value is other-than-temporary. If the decline in estimated unguaranteed residual value is judged to be other-than-temporary, the accounting for the transaction is revised using the changed estimate. The resulting reduction in the investment is recognized as a loss in the period in which the estimate is changed. An upward adjustment of the estimated residual value is not recorded. The policies for delinquency and nonaccrual for direct financing leases are materially consistent with those described above for all classes of loan receivables. The Company defers and amortizes fees and certain incremental direct costs over the contractual term of the lease as an adjustment to the yield. In periods prior to and including December 31, 2018, these initial direct leasing costs approximated 5.5% of the leased asset’s cost. With the adoption of ASU 2016-02 on January 1, 2019, a portion of these costs were expensed instead of deferred. Initial direct leasing costs were 3.2% and 3.9% of the leased asset’s cost in 2020 and 2019, respectively. The unamortized direct costs are recorded as a reduction of unearned lease income. TDRs Note 1. Nature of Business and Significant Accounting Policies (continued) The following criteria, related to granting a concession, together or separately, create a TDR: ● A modification of terms of a debt such as one or a combination of: o The reduction of the stated interest rate to a rate lower than the current market rate for new debt with similar risk. o The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. o The reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. o The reduction of accrued interest. ● A transfer from the borrower/lessee to the Company of receivables from third parties, real estate, other assets, or an equity position in the borrower to fully or partially satisfy a loan. ● The issuance or other granting of an equity position to the Company to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. Allowance For all portfolio segments, the allowance is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans/leases in light of historical experience, the nature and volume of the loan/lease portfolio, adverse situations that may affect the borrower’s/lessee’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The loan/lease portfolio is reviewed and analyzed quarterly with specific detailed reviews completed on all credits risk-rated less than “fair quality” and carrying aggregate exposure in excess of $250 thousand. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A discussion of the risk characteristics and the allowance by each portfolio segment follows: For C&I loans, the Company focuses on small and mid-sized businesses with primary operations as wholesalers, manufacturers, building contractors, business services companies, other banks, and retailers. The Company provides a wide range of C&I loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of facilities, equipment and other purposes. Approval is generally based on the following factors: ● Ability and stability of current management of the borrower; ● Stable earnings with positive financial trends; ● Sufficient cash flow to support debt repayment; ● Earnings projections based on reasonable assumptions; ● Financial strength of the industry and business; and ● Value and marketability of collateral. Collateral for C&I loans generally includes accounts receivable, inventory, equipment and real estate. The Company’s lending policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans must exceed the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash. Note 1. Nature of Business and Significant Accounting Policies (continued) The Company’s lending policy specifies maximum term limits for C&I loans. For term loans, the maximum term is generally seven years with average terms ranging from three In addition, the Company often takes personal guarantees or cosigners to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower. CRE loans are subject to underwriting standards and processes similar to C&I loans, in addition to those standards and processes specific to real estate loans. Collateral for CRE loans generally includes the underlying real estate and improvements, and may include additional assets of the borrower. The Company’s lending policy specifies maximum loan-to-value limits based on the category of CRE (CRE loans on improved property, raw land, land development, and commercial construction). These limits are the same limits established by regulatory authorities. The Company’s lending policy also includes guidelines for real estate appraisals, including minimum appraisal standards based on certain transactions. In addition, the Company often takes personal guarantees to help assure repayment. In addition, management tracks the level of owner-occupied CRE loans versus non-owner occupied loans. Owner-occupied loans are generally considered to have less risk. As of December 31, 2020 and 2019, approximately 26% and 26%, respectively, of the CRE loan portfolio was owner-occupied. The Company’s lending policy incorporates regulatory guidelines which stipulate that non-owner occupied CRE lending in excess of 300% of total risk-based capital, and construction, land development, and other land loans in excess of 100% of total risk-based capital warrant the use of heightened risk management practices. As of December 31, 2020 and 2019, QCBT and CRBT were in compliance with these limits. Although CSB’s and SFCB’s loan portfolio have historically been real estate dominated and the real estate portfolio levels at each bank exceed these policy limits, a Credit Risk Committee has been established to routinely monitor their real estate loan portfolios. CSB’s real estate levels, while still elevated at December 31, 2020, have declined since December 31, 2019. In some instances for all loans/leases, it may be appropriate to originate or purchase loans/leases that are exceptions to the guidelines and limits established within the Company’s lending policy described above and below. In general, exceptions to the lending policy do not significantly deviate from the guidelines and limits established within the Company’s lending policy and, if there are exceptions, they are clearly noted as such and specifically identified in loan/lease approval documents. For C&I and CRE loans, the allowance consists of specific and general components. The specific component relates to loans that are classified as impaired, as defined below. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. Note 1. Nature of Business and Significant Accounting Policies (continued) For C&I loans and all classes of CRE loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a case-by-case basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The general component consists of quantitative and qualitative factors and covers non-impaired loans. The quantitative factors are based on historical charge-off experience derived from the Company’s internal risk rating process. See below for a detailed description of the Company’s internal risk rating scale. The qualitative factors are determined based on an assessment of internal and/or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. For C&I and CRE loans, the Company utilizes the following internal risk rating scale: 1. Highest Quality (Pass) – loans of the highest quality with no credit risk, including those fully secured by subsidiary bank certificates of deposit and U.S. government securities. 2. Superior Quality (Pass) – loans with very strong credit quality. Borrowers have exceptionally strong earnings, liquidity, capital, cash flow coverage, and management ability. Includes loans secured by high quality marketable securities, certificates of deposit from other institutions, and cash value of life insurance. Also includes loans supported by U.S. government, state, or municipal guarantees. 3. Satisfactory Quality (Pass) – loans with satisfactory credit quality. Established borrowers with satisfactory financial condition, including credit quality, earnings, liquidity, capital and cash flow coverage. Management is capable and experienced. Collateral coverage and guarantor support, if applicable, are more than adequate. Includes loans secured by personal assets and business assets, including equipment, accounts receivable, inventory, and real estate. 4. Fair Quality (Pass) – loans with moderate but still acceptable credit quality. The primary repayment source remains adequate; however, management’s ability to maintain consistent profitability is unproven or uncertain. Borrowers exhibit acceptable leverage and liquidity. May include new businesses with inexperienced management or unproven performance records in relation to peer, or borrowers operating in highly cyclical or declining industries. 5. Early Warning (Pass) – loans where the borrowers have generally performed as agreed, however unfavorable financial trends exist or are anticipated. Earnings may be erratic, with marginal cash flow or declining sales. Borrowers reflect leveraged financial condition and/or marginal liquidity. Management may be new and a track record of performance has yet to be developed. Financial information may be incomplete, and reliance on secondary repayment sources may be increasing. Note 1. Nature of Business and Significant Accounting Policies (continued) 6. Special Mention – loans where the borrowers exhibit credit weaknesses or unfavorable financial trends requiring close monitoring. Weaknesses and adverse trends are more pronounced than Early Warning loans, and if left uncorrected, may jeopardize repayment according to the contractual terms. Currently, no loss of principal or interest is expected. Borrowers in this category have deteriorated to the point that it would be difficult to refinance with another lender. Special Mention should be assigned to borrowers in turnaround situations. This rating is intended as a transitional rating, therefore, it is generally not assigned to a borrower for a period of more than one year . 7. Substandard – loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if applicable. These loans have a well-defined weakness or weaknesses which jeopardize repayment according to the contractual terms. There is distinct loss potential if the weaknesses are not corrected. Includes loans with insufficient cash flow coverage which are collateral dependent, other real estate owned, and repossessed assets. 8. Doubtful – loans which have all the weaknesses inherent in a Substandard loan, with the added characteristic that existing weaknesses make full principal collection, on the basis of current facts, conditions and values, highly doubtful. The possibility of loss is extremely high, but because of pending factors, recognition of a loss is deferred until a more exact status can be determined. All doubtful loans will be placed on non-accrual, with all payments, including principal and interest, applied to principal reduction The Company has certain loans risk-rated 7 (substandard), which are not classified as impaired based on the facts of the credit. For these non-impaired and risk-rated 7 loans, the Company does not follow the same allowance methodology as it does for all other non-impaired, collectively evaluated loans. Rather, the Company performs a more detailed analysis including evaluation of the cash flow and collateral valuations. Based upon this evaluation, an estimate of the probable loss in this portfolio is collectively evaluated under ASC 450-20. These non-impaired risk-rated 7 loans exist primarily in the C&I and CRE segments. For term C&I and CRE loans greater than $1,000,000, a loan review is required within 15 months of the most recent credit review. The review is completed in enough detail to, at a minimum, validate the risk rating. Additionally, the review shall include an analysis of debt service requirements, covenant compliance, if applicable, and collateral adequacy. The frequency of the review is generally accelerated for loans with poor risk ratings. The Company’s Loan Quality area performs a documentation review of a sampling of C&I and CRE loans, the primary purpose of which is to ensure the credit is properly documented and closed in accordance with approval authorities and conditions. A review is also performed by the Company’s Internal Audit Department of a sampling of C&I and CRE loans for proper documentation, according to an approved schedule. Validation of the risk rating is also part of Internal Audit’s review (performed by Internal Loan Review). Additionally, over the past several years, the Company has contracted an independent outside third party to review a sampling of C&I and CRE loans. Validation of the risk rating is part of this review as well. The Company leases machinery and equipment to C&I customers under direct financing leases. All lease requests are subject to the credit requirements and criteria as set forth in the lending/leasing policy. In all cases, a formal independent credit analysis of the lessee is performed. For direct financing leases, the allowance consists of specific and general components. Note 1. Nature of Business and Significant Accounting Policies (continued) The specific component relates to leases that are classified as impaired, as defined for commercial loans above. For those leases that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired lease is lower than the carrying value of that lease. The general component consists of quantitative and qualitative factors and covers nonimpaired leases. The quantitative factors are based on historical charge-off experience for the entire lease portfolio. The qualitative factors are determined based on an assessment of internal and/or external influences on credit quality that are not fully reflected in the historical loss data. Generally, the Company’s residential real estate loans conform to the underwriting requirements of Freddie Mac and Fannie Mae to allow the subsidiary banks to resell loans in the secondary market. The subsidiary banks structure most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one The Company provides many types of installment and other consumer loans including motor vehicle, home improvement, home equity, signature loans and small personal credit lines. The Company’s lending policy addresses specific credit guidelines by consumer loan type. For residential real estate loans, and installment and other consumer loans, these large groups of smaller balance homogenous loans are collectively evaluated for impairment. The Company applies a quantitative factor based on historical charge-off experience in total for each of these segments. Accordingly, the Company generally does not separately identify individual residential real estate loans, and/or installment or other consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. TDRs are considered impaired loans/leases and are subject to the same allowance methodology as described above for impaired loans/leases by portfolio segment. Once a loan is classified as a TDR, it will remain a TDR until the loan is paid off, charged off, moved to OREO or restructured into a new note without a concession. TDR status may also be removed if the TDR was restructured in a prior calendar year, is current, accruing interest and shows sustained performance. Credit related financial instruments Transfers of financial assets : Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the assets it received, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a modest benefit to the transferor, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. In addition, for transfers of a portion of financial assets (for example, participations of loan receivables), the transfer must meet the definition of a “participating interest” in order to account for the transfer as a sale. Following are the characteristics of a “participating interest”: ● Pro-rata ownership in an entire financial asset. Note 1. Nature of Business and Significant Accounting Policies (continued) ● From the date of the transfer, all cash flows received from entire financial assets are divided proportionately among the participating interest holders in an amount equal to their share of ownership. ● The rights of each participating interest holder have the same priority, and no participating interest holder’s interest is subordinated to the interest of another participating interest holder. That is, no participating interest holder is entitled to receive cash before any other participating interest holder under its contractual rights as a participating interest holder. ● No party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. BOLI Premises and equipment Restricted investment securities OREO Repossessed assets Goodwill In 2019 and prior years, the goodwill evaluation was performed as of September 30 th th th is less than its carrying amount. The Company engaged an external specialist to assess the goodwill at the reporting unit level for the Banks in 2019. As of November 30, 2019, the Company performed an internal assessment of the goodwill for the Bates Companies reporting unit. As a result of this internal assessment, the Company determined an impairment charge of $3 million was required for the Bates Companies reporting unit. See further discussion in Note 6. Ba |
Note 2 - Sales_Mergers_Acquisit
Note 2 - Sales/Mergers/Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Sales/Mergers/Acquisitions | N ote 2. Sales/Mergers/Acquisitions Sale of the Bates Companies On August 12, 2020, the Company sold all the issued and outstanding capital stock of the Bates Companies. The aggregate consideration paid to the Company was a $500 thousand note receivable, less imputed interest of $52 thousand, plus cancellation of all future amounts otherwise to become payable to the purchaser by the Company under an earn-out agreement entered into between the same parties in 2018 with a non-discounted value of approximately $880 thousand at the sale date. Assets and liabilities of the Bates Companies sold are summarized as follows as of the date of closing: As of August 12, 2020 (dollars in thousands) ASSETS Cash and due from banks $ 349 Premises and equipment, net 19 Other assets 2,259 Total assets sold $ 2,627 LIABILITIES Other liabilities $ 946 Total liabilities sold $ 946 Net assets sold $ 1,681 Cash consideration $ 195 Forgiveness of earn-out consideration 880 Note receivable consideration 448 Loss on sale of subsidiary $ 158 Disposition costs in 2020 related to the sale totaled $227 thousand and were comprised primarily of legal, accounting and personnel costs. Sale of Assets and Liabilities of Rockford Bank & Trust On November 30, 2019, the Company sold substantially all of the assets and transferred substantially all of the deposits and certain other liabilities of the Company’s wholly-owned subsidiary, RB&T, to IB&T, a wholly-owned subsidiary of Heartland Financial USA, Inc., for a cash payment. The cash payment amount was determined substantially by the following formula: (i) the “Purchase Price Premium”, plus (ii) the aggregate net book value of the acquired assets, Note 2. Sales/Mergers/Acquisitions (continued) minus (iii) the aggregate book value of the assumed liabilities. The Purchase Price Premium was equal to: (a) 8% of RB&T’s tangible assets, multiplied by (b) 0.345. The Purchase Price Premium totaled $12.5 million and the total payment by IB&T to the Company at closing was $46.6 million. Assets and liabilities of RB&T sold are summarized as follows as of the date of closing: As of 11/30/2019 (dollars in thousands) ASSETS Cash and due from banks $ 3,973 Interest-bearing deposits at financial institutions 55,291 Securities held to maturity, at amortized cost 3,243 Securities available for sale, at fair value 21,874 Loans/leases receivable held for investment, net 357,931 Premises and equipment, net 5,612 Restricted investment securities 675 Other real estate owned, net 2,134 Other assets 3,228 Total assets acquired $ 453,961 LIABILITIES Noninterest-bearing deposits $ 69,802 Interest-bearing deposits 331,486 Short-term borrowings 1,158 FHLB advances 15,000 Other liabilities 2,241 Total liabilities assumed $ 419,687 Net assets sold $ 34,274 Cash consideration received $ 46,560 Gain on sale of assets and liabilities $ 12,286 The Company retained certain assets, mainly comprised of BOLI, and certain liabilities, mainly comprised of deferred compensation and income tax accruals. These assets and liabilities totaling $12.0 million and $5.0 million, respectively, as of December 31, 2019, were liquidated in 2020 and are included within assets and liabilities held for sale on the consolidated balance sheets. Disposition costs in 2019 related to the sale totaled $3.3 million and were comprised primarily of legal and accounting costs, costs in connection with the disposal of fixed assets and prepaids, personnel costs and IT deconversion costs related to the sale of RB&T. General – Mergers/Acquisitions The narrative in this subsection applies to all mergers and acquisitions detailed throughout this footnote. Loans acquired in a business combination are recorded and initially measured at their estimated fair value as of the acquisition date. Credit discounts are included in the determination of fair value. A third party valuation consultant assisted with the determination of fair value. Purchased loans are segregated into two categories: PCI loans and non-PCI (performing) loans. PCI loans are accounted for in accordance with ASC 310-30, as they display significant credit deterioration since origination and it is probable, as of the acquisition date, that the Company will be unable to collect all contractually required payments from the borrower. Performing loans are accounted for in accordance with ASC 310-20, as these loans do not have evidence of significant credit deterioration since origination and it is probable that the contractually required payments will be received from the borrower. For PCI loans, the difference between the contractually required payments at acquisition and the cash flows expected to be collected is referred to as the non-accretable discount. Further, any excess cash flows expected at acquisition Note 2. Sales/Mergers/Acquisitions (continued) over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the expected remaining life of the loan. Subsequent to the purchase date, increases in cash flows over those expected at the purchase date are recognized as interest income prospectively. The present value of any decreases in expected cash flows after the purchase date is recognized by recording an allowance for loan and lease losses and provision for loan losses. For performing loans, the difference between the estimated fair value of the loans and the principal balance outstanding is accreted over the remaining life of the loans. Acquisition of the Bates Companies On October 1, 2018, the Company acquired the Bates Companies, headquartered in Rockford, Illinois. The acquisition added approximately $704 million of assets under management at acquisition. In the acquisition, the Company acquired 100% of the Bates Companies’ outstanding common stock for aggregate consideration of $3.0 million cash and up to $3.0 million of the Company’s common stock. Of the total cash consideration, $1.5 five During 2018, the Company incurred $394 thousand of expenses related to the acquisition, comprised primarily of legal and accounting costs. The Company recorded a customer list intangible totaling $1.6 million, which is the portion of the acquisition purchase price that represents the value assigned to the existing customer base. The customer list intangible has a finite life and is amortized over the estimated useful life of the customer base. The Company recorded goodwill totaling $3.7 million, which is the excess of the consideration paid over the fair value of the net assets acquired. This goodwill is not deductible for tax purposes. See Note 6 to the Consolidated Financial Statements for additional information. The Company accounted for the business combination under the acquisition method of accounting in accordance with ASC 805. The Company recognized the full fair value of the assets acquired and liabilities assumed at the acquisition date, net of applicable income tax effects. The Company considers all purchase accounting adjustments as provisional and fair values are subject to refinement for up to one year after the closing date. Note 2. Sales/Mergers/Acquisitions (continued) Unaudited pro forma combined operating results for the year ended December 31, 2018, giving effect to the Bates Companies acquisition as if it had occurred as of January 1, 2017, are as follows: For the Year Ended December 31, 2018 (dollars in thousands, except per share data) Net interest income $ 142,368 Noninterest income $ 44,455 Net income $ 44,032 Earnings per common share: Basic $ 2.98 Diluted $ 2.92 The pro forma results do not purport to be indicative of the results of operations that actually would have resulted had the merger occurred on January 1, 2017 or of future results of operations of the consolidated entities. Springfield Bancshares, Inc. On July 1, 2018, the Company merged with Springfield Bancshares, the holding company of SFCB, headquartered in Springfield, Missouri. The Company acquired 100% of Springfield Bancshares common stock in the merger. SFCB is a Missouri-chartered bank that operates one location in the Springfield, Missouri market. As a result of the transaction, SFCB became an independent charter of the Company. The merger with Springfield Bancshares allowed the Company to enter the Springfield, Missouri market which is consistent with the Company’s strategic plan to selectively acquire other high-performing financial institutions in vibrant mid-sized metropolitan markets with a high concentration of commercial clients. Financial metrics related to the transaction were favorable, as measured by EPS and ROAA accretion. Stockholders of Springfield Bancshares received 0.3060 shares of the Company’s common stock and $1.50 in cash in exchange for each common share of Springfield Bancshares held. On June 29, 2018, the last trading date before the closing, the Company’s common stock closed at $47.45, resulting in stock consideration valued at $80.6 million and total consideration paid by the Company of $89.0 million. To help fund the cash portion of the purchase price, on June 29, 2018, the Company borrowed $4.1 million on its existing $10.0 million revolving line of credit. The Company also borrowed $4.9 million on this same revolving line of credit to fund the repayment of certain debt assumed in the merger shortly after closing. This note is included within Other Borrowings on the Consolidated Balance Sheets. The remaining cash consideration paid to the shareholders of Springfield Bancshares came from operating cash. The Company accounted for the business combination under the acquisition method of accounting in accordance with ASC 805. The Company recognized the full fair value of the assets acquired and liabilities assumed at the merger date, net of applicable income tax effects. The Company considers all purchase accounting adjustments as provisional and fair values are subject to refinement for up to one year after the closing date. Note 2. Sales/Mergers/Acquisitions (continued) The excess of the consideration paid over the fair value of the net assets acquired is recorded as goodwill. This goodwill is not deductible for tax purposes. During the fourth quarter of 2018, various measurement period adjustments were made. The result of these adjustments was an increase to goodwill of $447 thousand. The fair values of the assets acquired and liabilities assumed, after measurement period adjustments to date, including the consideration paid and resulting goodwill is as follows. As of July 1, 2018 (dollars in thousands) ASSETS Cash and due from banks $ 4,586 Interest-bearing deposits at financial institutions 62,924 Securities 4,845 Loans/leases receivable, net 477,337 Bank-owned life insurance 7,092 Premises and equipment 6,092 Restricted investment securities 3,654 Intangibles 8,209 Other assets 1,471 Total assets acquired $ 576,210 LIABILITIES Deposits $ 439,579 Short-term borrowings 1,143 FHLB advances 74,539 Other borrowings 9,544 Other liabilities 8,409 Total liabilities assumed $ 533,214 Net assets acquired $ 42,996 CONSIDERATION PAID: Cash $ 8,334 Common stock 80,637 Total consideration paid $ 88,971 Goodwill $ 45,975 The following table presents the purchased loans as of the merger date: PCI Performing Loans Loans Total (dollars in thousands) Contractually required principal payments $ 7,553 $ 479,440 $ 486,993 Nonaccretable discount (1,563) — (1,563) Principal cash flows expected to be collected $ 5,990 $ 479,440 $ 485,430 Accretable discount (293) (7,800) (8,093) Fair Value of acquired loans $ 5,697 $ 471,640 $ 477,337 Note 2. Sales/Mergers/Acquisitions (continued) Changes in accretable yield for the loans acquired are as follows: Year ended December 31, 2020 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (51) $ (3,524) $ (3,575) Reclassification of nonaccretable discount to accretable (512) — (512) Accretion recognized 563 2,048 2,611 Balance at the end of the period $ — $ (1,476) $ (1,476) For the year ended December 31, 2019 PCI Performing Loans Loans Total Balance at the beginning of the period $ (659) $ (5,849) $ (6,508) Reclassification of nonaccretable discount to accretable (159) — (159) Accretion recognized 767 2,325 3,092 Balance at the end of the period $ (51) $ (3,524) $ (3,575) For the year ended December 31, 2018 PCI Performing Loans Loans Total Balance at the beginning of the period $ — $ — $ — Discount added at acquisition (293) (7,800) (8,093) Reclassification of nonaccretable discount to accretable (892) — (892) Accretion recognized 526 1,951 2,477 Balance at the end of the period $ (659) $ (5,849) $ (6,508) During 2020, there was no nonaccretable discount that was recognized due to the repayment of PCI loans. However, $512 thousand of nonaccretable discount was reclassified to accretable due to significant improvement on specific credits subsequent to the merger date and all of this amount was accreted to income in 2020. During 2019, there was no nonaccretable discount that was recognized due to the repayment of PCI loans. However, $159 thousand of nonaccretable discount was reclassified to accretable due to significant improvement on one specific credit subsequent to the merger date. Of this amount, $153 thousand was accreted to income in 2019, while the remainder will be accreted over the next 8 months, which is the remaining contractual life of the loan. During 2018, there was no nonaccretable discount that was recognized due to the repayment of PCI loans. However, $892 thousand of nonaccretable discount was reclassified to accretable during the third quarter of 2018 due to significant improvement on one specific credit subsequent to the merger date. Of this amount, $396 thousand was accreted to income in 2018, while the remainder will be accreted over the next 8 months, which is the remaining contractual life of the loan. Premises and equipment acquired with a fair value of $6.1 million includes one branch location. The fair value was determined with the assistance of a third party appraiser. The buildings and building write-ups will be recognized in depreciation expense over 39 years. The Company recorded a core deposit intangible totaling $8.2 million which is the portion of the merger purchase price which represents the value assigned to the existing deposit base. The core deposit intangible has a finite life and Note 2. Sales/Mergers/Acquisitions (continued) is amortized using an accelerated method over the estimated useful life of the deposits (estimated to be ten years). See Note 6 to the Consolidated Financial Statements for additional information. FHLB advances and other borrowings assumed with a fair value of $84.1 million included $40.0 million in overnight FHLB advances, $34.5 million of FHLB term advances, $4.7 million in subordinated debentures and a $4.8 million bank stock loan. The $4.8 million bank stock loan was paid off immediately after the merger date on July 2, 2018, at its book value. See Note 10 and 11 to the Consolidated Financial Statements for additional information. During 2018, the Company incurred $1.4 million of expenses related to the merger comprised primarily of legal, accounting, and investment banking costs. These costs are presented on their own line within the consolidated statements of income. SFCB results are included in the consolidated statements of income effective on the merger date. For the period July 1, 2018 to December 31, 2018, SFCB reported revenues of $15.2 million and net income of $4.8 million, which included $391 thousand of after tax post-acquisition, compensation, transition and integration costs. Unaudited pro forma combined operating results for the year ended December 31, 2018, giving effect to the merger with Springfield Bancshares as if it had occurred as of January 1, 2017, are as follows: For the Year Ended December 31, 2018 (dollars in thousands, except per share data) Net interest income $ 153,229 Noninterest income $ 42,538 Net income $ 49,542 Earnings per common share: Basic $ 3.17 Diluted $ 3.11 The pro forma results do not purport to be indicative of the results of operations that actually would have resulted had the merger occurred on January 1, 2017 or of future results of operations of the consolidated entities. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Investment Securities | Note 3. Investment Securities The amortized cost and fair value of investment securities as of December 31, 2020 and 2019 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 475,115 $ 45,360 $ (248) $ 520,227 Other securities 1,050 — — 1,050 $ 476,165 $ 45,360 $ (248) $ 521,277 Securities AFS: U.S. govt. sponsored agency securities $ 14,936 $ 447 $ (47) $ 15,336 Residential mortgage-backed and related securities 127,670 5,510 (338) 132,842 Municipal securities 147,241 5,215 (48) 152,408 Asset-backed securities 39,663 1,111 (91) 40,683 Other securities 20,550 147 — 20,697 $ 350,060 $ 12,430 $ (524) $ 361,966 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2019: Securities HTM: Municipal securities $ 399,596 $ 26,042 $ (143) $ 425,495 Other securities 1,050 — — 1,050 $ 400,646 $ 26,042 $ (143) $ 426,545 Securities AFS: U.S. govt. sponsored agency securities $ 19,872 $ 283 $ (77) $ 20,078 Residential mortgage-backed and related securities 118,724 2,045 (182) 120,587 Municipal securities 46,659 1,602 (4) 48,257 Asset-backed securities 16,958 — (71) 16,887 Other securities 4,749 138 (1) 4,886 $ 206,962 $ 4,068 $ (335) $ 210,695 The Company’s HTM municipal securities consist largely of private issues of municipal debt. The municipalities are located primarily within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. The Company’s residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in commercial mortgage-backed securities or pooled trust preferred securities. Note 3. Investment Securities (continued) Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2020 and 2019, are summarized as follows: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 8,407 $ (248) $ — $ — $ 8,407 $ (248) Securities AFS: U.S. govt. sponsored agency securities $ 3,199 $ (47) $ — $ — $ 3,199 $ (47) Residential mortgage-backed and related securities 37,549 (338) — — 37,549 (338) Municipal securities 10,110 (48) — — 10,110 (48) Asset-backed securities 6,884 (52) 9,945 (39) 16,829 (91) $ 57,742 $ (485) $ 9,945 $ (39) $ 67,687 $ (524) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2019: Securities HTM: Municipal securities $ 509 $ (1) $ 10,047 $ (142) $ 10,556 $ (143) Securities AFS: U.S. govt. sponsored agency securities $ 1,431 $ (21) $ 2,117 $ (56) $ 3,548 $ (77) Residential mortgage-backed and related securities 2,263 (17) 17,862 (165) 20,125 (182) Municipal securities — — 724 (4) 724 (4) Asset-backed securities 16,886 (71) — — 16,886 (71) Other securities 249 (1) — — 249 (1) $ 20,829 $ (110) $ 20,703 $ (225) $ 41,532 $ (335) At December 31, 2020, the investment portfolio included 668 securities. Of this number, 41 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 0.1% of the total aggregate amortized cost. Of these 41 securities, five securities had an unrealized loss for 12 months or more. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company lacks the intent to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery. The Company did not recognize OTTI on any investment securities for the years ended December 31, 2020, 2019 or 2018. Note 3. Investment Securities (continued) All sales of securities for the years ended December 31, 2020, 2019 and 2018, respectively, were from securities identified as AFS. Information on proceeds received, as well as the gains and losses from the sale of those securities are as follows: 2020 2019 2018 (dollars in thousands) Proceeds from sales of securities $ 38,562 $ 30,055 $ 1,938 Gross gains from sales of securities 2,553 176 — Gross losses from sales of securities (69) (206) — The amortized cost and fair value of securities as of December 31, 2020, by contractual maturity are shown below. Expected maturities of mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary. Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 3,417 $ 3,443 Due after one year through five years 34,396 35,103 Due after five years 438,352 482,731 $ 476,165 $ 521,277 Securities AFS: Due in one year or less $ 2,369 $ 2,373 Due after one year through five years 13,970 14,328 Due after five years 166,388 171,740 182,727 188,441 Residential mortgage-backed and related securities 127,670 132,842 Asset-backed securities 39,663 40,683 $ 350,060 $ 361,966 Portions of the U.S. government sponsored agencies and municipal securities contain call options, at the discretion of the issuer, to terminate the security at predetermined dates prior to the stated maturity, summarized as follows: Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 227,773 $ 236,134 Securities AFS: Municipal securities 138,688 143,536 Other securities 6,500 6,647 $ 145,188 $ 150,183 Note 3. Investment Securities (continued) As of December 31, 2020 and 2019, investment securities with a carrying value of $212.8 million and $113.4 million, respectively, were pledged on public deposits, FHLB advances, customer repurchase agreements, derivative liabilities, Goldman Sachs cash management program and for other purposes as required or permitted by law. As of December 31, 2020, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 117 issuers with fair values totaling $116.7 million and revenue bonds issued by 191 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $555.9 million. The Company held investments in general obligation bonds in 21 states, including eight states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 26 states, including 12 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2019, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 93 issuers with fair values totaling $77.2 million and revenue bonds issued by 154 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $396.6 million. The Company held investments in general obligation bonds in 22 states, including six states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in 17 states, including seven states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2020 and 2019, the Company held revenue bonds of two issuers and one single issuer, respectively, located in Ohio, the aggregate book or market value of which exceeded 5% of the Company’s stockholders’ equity. The issuers’ financial condition is strong and the source of repayment is diversified. The Company monitors the investment and concentration closely. Of the general obligation and revenue bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services (water, sewer, education, medical facilities). The Company’s municipal securities are owned by each of the four charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. Each charter is monitored individually and as of December 31, 2020, all were within policy limitations approved by the board of directors. Policy limits are calculated as a percentage of total risk-based capital. As of December 31, 2020, the Company’s standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credits ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards. |
Note 4 - Loans_Leases Receivabl
Note 4 - Loans/Leases Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Loans/Leases Receivable | Note 4. Loans/Leases Receivable The composition of the loan/lease portfolio as of December 31, 2020 and 2019 is presented as follows: 2020 2019 (dollars in thousands) C&I loans* $ 1,726,723 $ 1,507,825 CRE loans Owner-occupied CRE 496,471 443,989 Commercial construction, land development, and other land 541,455 378,797 Other non owner-occupied CRE 1,069,703 913,610 2,107,629 1,736,396 Direct financing leases ** 66,016 87,869 Residential real estate loans *** 252,121 239,904 Installment and other consumer loans 91,302 109,352 4,243,791 3,681,346 Plus deferred loan/lease origination costs, net of fees 7,338 8,859 4,251,129 3,690,205 Less allowance (84,376) (36,001) $ 4,166,753 $ 3,654,204 ** Direct financing leases: Net minimum lease payments to be received $ 72,940 $ 97,025 Estimated unguaranteed residual values of leased assets 239 547 Unearned lease/residual income (7,163) (9,703) 66,016 87,869 Plus deferred lease origination costs, net of fees 1,072 1,892 67,088 89,761 Less allowance (1,764) (1,464) $ 65,324 $ 88,297 * Includes equipment financing agreements outstanding at m2, totaling $171.5 million and $142.0 million as of December 31, 2020 and 2019, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors and management’s expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The large majority of leases with residual values contain a lease options rider which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. ***Includes residential real estate loans held for sale totaling $3.8 million and $3.7 million as of December 31, 2020 and 2019, respectively. Note 4. Loans/Leases Receivable (continued) Changes in accretable yield for the loans acquired in the mergers and acquisitions are as follows: For the year ended December 31, 2020 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable (530) — (530) Reclassification of nonaccretable discount to allowance — 353 353 Accretion recognized 587 2,886 3,473 Balance at the end of the period $ — $ (3,139) $ (3,139) For the year ended December 31, 2019 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (667) $ (10,127) $ (10,794) Reclassification of nonaccretable discount to accretable (275) — (275) Accretion recognized 885 3,749 4,634 Balance at the end of the period $ (57) $ (6,378) $ (6,435) For the year ended December 31, 2018 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (191) $ (6,280) $ (6,471) Discount added at acquisition (293) (7,800) (8,093) Reclassification of nonaccretable discount to accretable (892) (470) (1,362) Accretion recognized 709 4,423 5,132 Balance at the end of the period $ (667) $ (10,127) $ (10,794) Note 4. Loans/Leases Receivable (continued) The aging of the loan/lease portfolio by classes of loans/leases as of December 31, 2020 and 2019 is presented as follows: 2020 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,720,058 $ 1,535 $ 323 $ — $ 4,807 $ 1,726,723 CRE Owner-Occupied CRE 496,459 — — — 12 496,471 Commercial Construction, Land Development, and Other Land 541,455 — — — — 541,455 Other Non Owner-Occupied CRE 1,062,215 — — — 7,488 1,069,703 Direct Financing Leases 64,918 501 191 — 406 66,016 Residential Real Estate 249,364 1,512 223 — 1,022 252,121 Installment and Other Consumer 91,047 43 4 3 205 91,302 $ 4,225,516 $ 3,591 $ 741 $ 3 $ 13,940 $ 4,243,791 As a percentage of total loan/lease portfolio 99.57 % 0.08 % 0.02 % 0.00 % 0.33 % 100.00 % 2019 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,499,891 $ 6,126 $ 572 $ — $ 1,236 $ 1,507,825 CRE Owner-Occupied CRE 443,707 177 71 — 34 443,989 Commercial Construction, Land Development, and Other Land 375,940 2,857 — — — 378,797 Other Non Owner-Occupied CRE 909,684 73 — — 3,853 913,610 Direct Financing Leases 85,636 463 253 — 1,517 87,869 Residential Real Estate 235,845 2,939 414 — 706 239,904 Installment and Other Consumer 108,750 3 10 33 556 109,352 $ 3,659,453 $ 12,638 $ 1,320 $ 33 $ 7,902 $ 3,681,346 As a percentage of total loan/lease portfolio 99.41 % 0.34 % 0.04 % 0.00 % 0.21 % 100.00 % Note 4. Loans/Leases Receivable (continued) NPLs by classes of loans/leases as of December 31, 2020 and 2019 is presented as follows: 2020 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More Loans/Leases * Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 4,807 $ 606 $ 5,413 36.87 % CRE Owner-Occupied CRE — 12 — 12 0.08 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 7,488 — 7,488 50.99 % Direct Financing Leases — 406 135 541 3.68 % Residential Real Estate — 1,022 — 1,022 6.96 % Installment and Other Consumer 3 205 — 208 1.42 % $ 3 $ 13,940 $ 741 $ 14,684 100.00 % * 2019 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More Loans/Leases * Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 1,236 $ 646 $ 1,882 21.12 % CRE Owner-Occupied CRE — 34 — 34 0.38 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 3,853 — 3,853 43.22 % Direct Financing Leases — 1,517 333 1,850 20.75 % Residential Real Estate — 706 — 706 7.92 % Installment and Other Consumer 33 556 — 589 6.61 % $ 33 $ 7,902 $ 979 $ 8,914 100.00 % * At December 31, 2019, accruing past due 90 days or more included $747 thousand of TDRs, including $98 thousand in C&I loans and $269 thousand in CRE loans, installment loans. Note 4. Loans/Leases Receivable (continued) Changes in the allowance by portfolio segment for the years ended December 31, 2020, 2019, and 2018 are presented as follows: Year Ended December 31, 2020 Direct Financing Residential Real C&I CRE Leases Estate Consumer Total (dollars in thousands) Balance, beginning $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Provisions charged to expense 22,899 28,671 2,148 1,755 231 55,704 Loans/leases charged off (4,199) (2,071) (1,993) — (120) (8,383) Recoveries on loans/leases previously charged off 649 182 145 29 49 1,054 Balance, ending $ 35,421 $ 42,161 $ 1,764 $ 3,732 $ 1,298 $ 84,376 Year Ended December 31, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Reclassification of allowance related to held for sale assets (2,814) (2,392) — (628) (288) (6,122) Provisions (credits) charged to expense* 3,666 1,566 1,129 163 114 6,638 Loans/leases charged off (1,476) (1,722) (1,647) (191) (98) (5,134) Recoveries on loans/leases previously charged off 276 208 190 47 51 772 Balance, ending $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 *Excludes provision related to loans included in assets held for sale during the year of $428 thousand for the year ending December 31, 2019. Year Ended December 31, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 14,323 $ 13,963 $ 2,382 $ 2,466 $ 1,222 $ 34,356 Provisions charged to expense 7,161 4,094 1,068 193 142 12,658 Loans/leases charged off (5,359) (387) (2,002) (127) (44) (7,919) Recoveries on loans/leases previously charged off 295 49 344 25 39 752 Balance, ending $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Note 4. Loans/Leases Receivable (continued) The allowance by impairment evaluation and by portfolio segment as of December 31, 2020 and 2019 is presented as follows: 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 650 $ 1,938 $ — $ 20 $ 72 $ 2,680 Allowance for nonimpaired loans/leases 34,771 40,223 1,764 3,712 1,226 81,696 $ 35,421 $ 42,161 $ 1,764 $ 3,732 $ 1,298 $ 84,376 Impaired loans/leases $ 5,381 $ 7,487 $ 578 $ 977 $ 205 $ 14,628 Nonimpaired loans/leases 1,721,342 2,100,142 65,438 251,144 91,097 4,229,163 $ 1,726,723 $ 2,107,629 $ 66,016 $ 252,121 $ 91,302 $ 4,243,791 Allowance as a percentage of impaired loans/leases 12.08 % 25.88 % — % 2.05 % 35.12 % 18.32 % Allowance as a percentage of nonimpaired loans/leases 2.02 % 1.92 % 2.70 % 1.48 % 1.35 % 1.93 % Total allowance as a percentage of total loans/leases 2.05 % 2.00 % 2.67 % 1.48 % 1.42 % 1.99 % 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 170 $ 125 $ 270 $ 15 $ 80 $ 660 Allowance for nonimpaired loans/leases 15,902 15,254 1,194 1,933 1,058 35,341 $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Impaired loans/leases $ 1,846 $ 3,585 $ 2,025 $ 649 $ 556 $ 8,661 Nonimpaired loans/leases 1,505,979 1,732,811 85,844 239,255 108,796 3,672,685 $ 1,507,825 $ 1,736,396 $ 87,869 $ 239,904 $ 109,352 $ 3,681,346 Allowance as a percentage of impaired loans/leases 9.21 % 3.49 % 13.33 % 2.31 % 14.39 % 7.62 % Allowance as a percentage of nonimpaired loans/leases 1.06 % 0.88 % 1.39 % 0.81 % 0.97 % 0.96 % Total allowance as a percentage of total loans/leases 1.07 % 0.89 % 1.67 % 0.81 % 1.04 % 0.98 % Note 4. Loans/Leases Receivable (continued) Loans/leases, by classes of financing receivable, considered to be impaired as of and for the years ended December 31, 2020, 2019, and 2018 are presented below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs. 2020 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,361 $ 1,441 $ — $ 1,002 $ 33 $ 33 CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 1,133 1,933 — 494 29 29 Direct Financing Leases 578 578 — 483 17 17 Residential Real Estate 719 719 — 476 — — Installment and Other Consumer 133 133 — 121 — — $ 3,924 $ 4,804 $ — $ 2,576 $ 79 $ 79 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 4,020 $ 4,020 $ 650 $ 1,555 $ — $ — CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 6,354 6,354 1,938 5,726 — — Direct Financing Leases — — — — — — Residential Real Estate 258 258 20 227 — — Installment and Other Consumer 72 72 72 70 — — $ 10,704 $ 10,704 $ 2,680 $ 7,578 $ — $ — Total Impaired Loans/Leases: C&I $ 5,381 $ 5,461 $ 650 $ 2,557 $ 33 $ 33 CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 7,487 8,287 1,938 6,220 29 29 Direct Financing Leases 578 578 — 483 17 17 Residential Real Estate 977 977 20 703 — — Installment and Other Consumer 205 205 72 191 — — $ 14,628 $ 15,508 $ 2,680 $ 10,154 $ 79 $ 79 Note 4. Loans/Leases Receivable (continued) 2019 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,607 $ 1,647 $ — $ 970 $ 27 $ 27 CRE Owner-Occupied CRE 34 50 — 24 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 684 686 — 738 29 29 Direct Financing Leases 1,642 1,642 — 1,322 30 30 Residential Real Estate 469 614 — 481 — — Installment and Other Consumer 476 476 — 474 — — $ 4,912 $ 5,115 $ — $ 4,009 $ 86 $ 86 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 239 $ 239 $ 170 $ 124 $ — $ — CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 2,867 2,867 125 1,958 — — Direct Financing Leases 383 383 270 196 2 2 Residential Real Estate 180 180 15 72 — — Installment and Other Consumer 80 80 80 62 — — $ 3,749 $ 3,749 $ 660 $ 2,412 $ 2 $ 2 Total Impaired Loans/Leases: C&I $ 1,846 $ 1,886 $ 170 $ 1,094 $ 27 $ 27 CRE Owner-Occupied CRE 34 50 — 24 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 3,551 3,553 125 2,696 29 29 Direct Financing Leases 2,025 2,025 270 1,518 32 32 Residential Real Estate 649 794 15 553 — — Installment and Other Consumer 556 556 80 536 — — $ 8,661 $ 8,864 $ 660 $ 6,421 $ 88 $ 88 Note 4. Loans/Leases Receivable (continued) 2018 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,846 $ 4,540 $ — $ 2,346 $ 210 $ 210 CRE Owner-Occupied CRE 106 106 — 107 — — Commercial Construction, Land Development, and Other Land 507 507 — 101 — — Other Non Owner-Occupied CRE 1,804 1,804 — 540 — — Direct Financing Leases 1,929 1,929 — 2,193 60 60 Residential Real Estate 984 1,058 — 723 9 9 Installment and Other Consumer 762 762 — 198 — — $ 7,938 $ 10,706 $ — $ 6,208 $ 279 $ 279 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 2,653 $ 2,653 $ 973 $ 1,118 $ 43 $ 43 CRE Owner-Occupied CRE 304 660 39 177 — — Commercial Construction, Land Development, and Other Land 149 149 33 159 — — Other Non Owner-Occupied CRE 7,577 7,577 2,052 3,055 58 58 Direct Financing Leases 320 320 194 273 — — Residential Real Estate 1,126 1,126 257 553 12 12 Installment and Other Consumer 136 136 111 125 — — $ 12,265 $ 12,621 $ 3,659 $ 5,460 $ 113 $ 113 Total Impaired Loans/Leases: C&I $ 4,499 $ 7,193 $ 973 $ 3,464 $ 253 $ 253 CRE Owner-Occupied CRE 410 766 39 284 — — Commercial Construction, Land Development, and Other Land 656 656 33 260 — — Other Non Owner-Occupied CRE 9,381 9,381 2,052 3,595 58 58 Direct Financing Leases 2,249 2,249 194 2,466 60 60 Residential Real Estate 2,110 2,184 257 1,276 21 21 Installment and Other Consumer 898 898 111 323 — — $ 20,203 $ 23,327 $ 3,659 $ 11,668 $ 392 $ 392 Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates. For C&I and CRE loans, the Company’s credit quality indicator is internally assigned risk ratings. Each commercial loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. See Note 1 for further discussion on the Company’s risk ratings. Note 4. Loans/Leases Receivable (continued) For C&I equipment financing loans, direct financing leases, residential real estate loans, and installment and other consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system. For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of December 31, 2020 and 2019: 2020 CRE Non-Owner Occupied Commercial Construction, Internally Assigned Land Risk Rating Owner-Occupied Development, As a % of C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,506,578 $ 488,478 $ 530,297 $ 999,931 $ 3,525,284 96 % Special Mention (Rating 6) 23,929 3,087 680 43,785 71,481 1.95 Substandard (Rating 7) 24,710 4,906 10,478 25,987 66,081 1.80 Doubtful (Rating 8) — — — — — — Total $ 1,555,217 $ 496,471 $ 541,455 $ 1,069,703 $ 3,662,846 100.00 % 2020 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 170,712 $ 65,475 $ 251,099 $ 91,094 $ 578,380 99.56 % Nonperforming 794 541 1,022 208 2,565 0.44 $ 171,506 $ 66,016 $ 252,121 $ 91,302 $ 580,945 100.00 % 2019 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,334,446 $ 439,418 $ 378,572 $ 896,206 $ 3,048,642 98.28 % Special Mention (Rating 6) 12,962 3,044 41 3,905 19,952 0.64 % Substandard (Rating 7) 18,439 1,527 184 13,499 33,649 1.08 % Doubtful (Rating 8) — — — — — — % $ 1,365,847 $ 443,989 $ 378,797 $ 913,610 $ 3,102,243 100.00 % 2019 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 140,992 $ 86,019 $ 239,198 $ 108,763 $ 574,972 99.29 % Nonperforming 986 1,850 706 589 4,131 0.71 % $ 141,978 $ 87,869 $ 239,904 $ 109,352 $ 579,103 100.00 % * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings. Note 4. Loans/Leases Receivable (continued) TDRs totaled $1.7 million as of December 31, 2020 and 2019, respectively. For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the years ended December 31, 2020 and 2019. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of restructuring. The specific allowance is as of December 31, 2020 and 2019, respectively. The following excludes any TDRs that were restructured and paid off or charged off in the same year. 2020 Pre- Post- Modification Modification Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I 1 $ 75 $ 75 $ — Direct Financing Leases 2 112 112 — 3 $ 187 $ 187 $ — CONCESSION - Extension of Maturity CRE Other 1 $ 835 $ 835 $ — TOTAL 4 $ 1,022 $ 1,022 $ — 2019 Pre- Post- Modification Modification Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C & I 3 $ 112 $ 112 $ — Direct Financing Leases 10 388 388 35 13 $ 500 $ 500 $ 35 CONCESSION - Forgiveness of Principal C & I 1 $ 587 $ 537 $ — CONCESSION - Extension of Maturity Installment and Other Consumer 1 $ 56 $ 56 $ 54 TOTAL 15 $ 1,143 $ 1,093 $ 89 Of the TDRs reported above, two with a post-modification recorded investment totaling $880 thousand were on nonaccrual as of December 31, 2020 and three with a post-modification recorded investment totaling $121 thousand were on nonaccrual as of December 31, 2019. For the year ended December 31, 2020, the Company had one Not included in the table above, the Company had five TDRs that were restructured and charged off in 2020, totaling $266 thousand. There was one TDR that was both restructured and charged off in 2019, totaling $52 thousand. On March 22, 2020, federal banking regulators issued an interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment Note 4. Loans/Leases Receivable (continued) deferrals, fee waivers, extensions of repayment terms or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The agencies confirmed in working with the staff of the FASB 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. The regulators have clarified that this guidance may continue to be applied in 2021. In addition, the CARES Act provides financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. To be eligible, the modification must be (1) related to COVID-19, (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 termination of the presidentially-declared emergency or (B) December 31, 2020. If a modification does not meet the criteria of the CARES act, a deferral can still be excluded from TDR treatment as long as the modifications meet the banking regulatory criteria discussed in the preceding paragraph. The Company implemented its LRP offering to extend qualifying customers’ payments for 90 days. As of December 31, 2020, there were 126 bank modifications of loans to commercial and consumer clients totaling $21 million and 71 m2 modifications of loans and leases totaling $7 million for a combined 197 modifications totaling $28 million, representing 0.66% of the total loan and lease portfolio that were on deferral as of such date. On December 27, 2020, former President Trump signed the Consolidated Appropriations Act, which extended the Loan Relief Program to the earlier of 60 days after the national emergency termination date or January 1, 2022. The Company intends to allow qualifying commercial and consumer clients to defer payments under the new guidance. Loans are made in the normal course of business to directors, executive officers, and their related interests. All such loans, in the opinion of management, were made in the ordinary course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the lenders and did not involve more than the normal risk of collectability or present other unfavorable features. An analysis of the changes in the aggregate committed amount of loans to insiders greater than or equal to $60,000 during the years ended December 31, 2020, 2019, and 2018, is as follows: 2020 2019 2018 (dollars in thousands) Balance, beginning $ 112,830 $ 125,496 $ 66,442 Net increase (decrease) due to change in related parties (1,601) (12,161) 41,797 Advances 43,238 98,708 43,453 Repayments (54,106) (99,213) (26,196) Balance, ending $ 100,361 $ 112,830 $ 125,496 Note 4. Loans/Leases Receivable (continued) The Company’s loan portfolio includes a geographic concentration in the Midwest. Additionally, the loan portfolio includes a concentration of loans in certain industries as of December 31, 2020 and 2019 as follows: 2020 2019 Percentage of Percentage of Total Total Industry Name Balance Loans/Leases Balance Loans/Leases (dollars in thousands) Lessors of Residential Buildings $ 1,134,178 27 % $ 745,770 22 % Lessors of Non-Residential Buildings 591,398 14 % 574,058 17 % Administration of Urban Planning & Community & Rural Development 138,514 3 % 133,157 4 % Concentrations within the leasing portfolio are monitored by equipment type – none of which represent a concentration within the total loans/leases portfolio. Within the leasing portfolio, diversification is spread among construction, manufacturing and the service industries. Geographically, the lease portfolio is diversified across all 50 states. No individual state represents a concentration within the total loan/lease portfolio. |
Note 5 - Premises and Equipment
Note 5 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Premises and Equipment | Note 5. Premises and Equipment The following summarizes the components of premises and equipment as of December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Land $ 13,403 $ 13,632 Buildings (useful lives 15 to 50 years) 67,844 66,070 Furniture and equipment (useful lives 3 to 10 years) 42,667 40,228 Premises and equipment 123,914 119,930 Less accumulated depreciation 51,221 46,071 Premises and equipment, net $ 72,693 $ 73,859 As a lessee, the Company has entered into operating leases for certain branch locations. Total lease expenses were $662 thousand and $732 thousand for the year ended December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the Company’s ROU assets (included in other assets other liabilities At December 31, 2020, the contractual maturities of operating lease liabilities were as follows: Amount Year ending December 31: (dollars in thousands) 2021 323 2022 256 2023 200 2024 144 2025 153 Thereafter 703 $ 1,779 Note 5. Premises and Equipment (continued) As a lessor, the Company leases certain types of commercial vehicles and industrial equipment to its customers. The Company recognized lease-related revenue, primarily interest income from direct financing leases of million for the year ended December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the Company’s net investment in direct financing leases was As of December 31, 2020, the contractual maturities of sales-type and direct financing lease receivables were as follows: Amount Year ending December 31: (dollars in thousands) 2021 3,879 2022 14,983 2023 21,059 2024 17,248 2025 14,780 Thereafter 991 Total lease payments receivable $ 72,940 Unguaranteed residual values 239 Unearned lease/residual income (7,163) $ 66,016 Plus deferred origination costs, net of fees 1,072 $ 67,088 Less allowance (1,764) Total lease payments receivable $ 65,324 The The |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangibles | Note 6. Goodwill and Intangibles The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (dollars in thousands) Balance at the beginning of period $ 74,748 $ 77,832 $ 28,334 Merger with Springfield Bancshares — — 45,975 Acquisition of Bates Companies — — 3,766 Acquisition of Guaranty Bank - measurement period adjustment — — (243) Acquisition of Bates Companies - measurement period adjustment — (84) — Sale of Bates Companies (182) — — Goodwill impairment - Bates Companies (500) (3,000) — Balance at the end of period $ 74,066 $ 74,748 $ 77,832 The following table presents the goodwill by reportable segment: December 31, 2020 December 31, 2019 December 31, 2018 (dollars in thousands) Commercial banking: QCBT $ 3,223 $ 3,223 $ 3,223 CRBT 14,980 14,980 14,980 CSB 9,888 9,888 9,888 SFCB 45,975 45,975 45,975 Other, Parent Company Only — 682 3,766 $ 74,066 $ 74,748 $ 77,832 Note 6. Goodwill and Intangibles (continued) At November 30, 2020 the Company’s management performed an annual internal assessment at the reporting unit level and determined no goodwill impairment existed. Due to the economic impact that COVID-19 has had on the Company, management concluded that factors such as the decline in macroeconomic conditions led to the occurrence of a triggering event during the first quarter of 2020, and therefore an interim impairment test over goodwill was performed as of March 31, 2020. Based upon the results of the interim goodwill assessment during the first quarter of 2020, the Company concluded that an impairment did not exist on the bank reporting units as of the time of the assessment. There was no occurrence of a triggering event during the second or third quarter of 2020 and therefore no impairment test over goodwill was needed. During the first quarter of 2020, the Company incurred goodwill impairment expense of $500 thousand related to the Bates Companies reporting unit. This was the result of the announcement of a sale of the Bates Companies, as discussed in Note 2. As of November 30, 2019, the Company’s management performed an internal assessment of the goodwill for the Bates Companies reporting unit. With the Bates Companies located in Rockford, Illinois, the Company had intended to achieve synergies and cross-selling opportunities that significantly enhanced the value of the Bates Companies. With the sale of the assets and liabilities of RB&T, which was the Company’s bank subsidiary located in Rockford, Illinois, the Company’s valuation analysis determined the value had declined and the goodwill was impaired. Specifically, the Company determined a goodwill impairment charge of $3 million was required for the Bates Companies. The Company used a combination of methods to determine the value and related goodwill impairment charge. The methods included prices of comparable businesses as well as recent discussions with existing wealth management providers in the surrounding Rockford market. The following table presents the changes in core deposit intangibles (included in Intangibles on the consolidated balance sheets) during the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (dollars in thousands) Balance at the beginning of the period $ 13,466 $ 15,595 $ 9,079 Merger with Springfield Bancshares — — 8,208 Amortization expense (2,085) (2,129) (1,692) Balance at the end of the period $ 11,381 $ 13,466 $ 15,595 Gross carrying amount $ 19,255 $ 19,255 $ 19,255 Accumulated amortization (7,874) (5,789) (3,660) Net book value $ 11,381 $ 13,466 $ 15,595 The following table presents the core deposit intangibles by reportable segment: December 31, 2020 December 31, 2019 December 31, 2018 (dollars in thousands) Commercial Banking: CRBT $ 2,189 $ 2,684 $ 3,186 CSB 3,305 3,980 4,675 SFCB 5,887 6,802 7,734 $ 11,381 $ 13,466 $ 15,595 Note 6. Goodwill and Intangibles (continued) The following table presents the estimated amortization of the core deposit intangibles: Amount Years ending December 31, (dollars in thousands) 2021 $ 2,032 2022 1,971 2023 1,776 2024 1,623 2025 1,535 Thereafter 2,444 $ 11,381 The following table presents the changes in customer list intangible (included in Intangibles on the Consolidated Balance Sheets) during the years ended December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Balance at the beginning of period $ 1,504 $ 1,855 Acquisition of Bates Companies - measurement period adjustment — (214) Sale of Bates Companies (1,440) — Amortization (64) (137) Balance at the end of period — 1,504 The customer list intangible relates to the Parent Company Only (“All Other”) reportable segment. |
Note 7 - Derivatives and Hedgin
Note 7 - Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Derivatives and Hedging Activities | Note 7. Derivatives and Hedging Activities Derivatives are summarized as follows as of December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Assets: Interest rate caps - hedged $ 259 $ 3,148 Interest rate caps 67 — Interest rate swaps 222,431 84,679 $ 222,757 $ 87,827 Liabilities: Interest rate swaps - hedged $ (6,839) $ (3,758) Interest rate swaps (222,431) (84,679) $ (229,270) $ (88,437) Note 7. Derivatives and Hedging Activities (continued) The Company uses interest rate swap and cap instruments to manage interest rate risk related to the variability of interest payments due to changes in interest rates. The Company entered into interest rate caps to hedge against the risk of rising interest rates on liabilities. The liabilities consist of $300.0 million of deposits and the benchmark rates hedged vary at 1-month LIBOR, 3-month LIBOR and the Prime Rate. The interest rate caps are designated as cash flow hedges in accordance with ASC 815. An initial premium of $3.5 million was paid upfront for the caps summarized below. The details of the interest rate caps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate December 31, 2020 December 31, 2019 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Other Assets $ 25,000 1.75 % $ 3 $ 112 Deposits 1/1/2020 1/1/2023 Other Assets 50,000 1.57 5 218 Deposits 1/1/2020 1/1/2023 Other Assets 25,000 1.80 3 109 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.75 15 214 Deposits 1/1/2020 1/1/2024 Other Assets 50,000 1.57 31 401 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.80 15 201 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.75 46 337 Deposits 1/1/2020 1/1/2025 Other Assets 50,000 1.57 94 617 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.80 47 309 $ 300,000 $ 259 $ 2,518 In December 2020, the Company redesignated three of its interest rate caps, which had been purchased in 2019 for $800 thousand. The caps, which were designated as cash flow hedges at the time of purchase, are now designated as unhedged. A loss of $649 thousand was recognized due to the change in designation as the underlying hedged item no longer exists. For derivative instruments that are designated as unhedged, the change in fair value of the derivative instrument is recognized into current earnings. There was no change in value recognized into current earnings for 2020 as the change in designation was effective December 31, 2020. The details of the unhedged interest rate caps are as follows: Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate December 31, 2020 December 31, 2019 (dollars in thousands) 1/1/2020 1/1/2023 Other Assets $ 25,000 1.90 % $ 2 $ 96 2/1/2020 2/1/2024 Other Assets 25,000 1.90 15 202 3/1/2020 3/1/2025 Other Assets 25,000 1.90 50 332 $ 75,000 $ 67 $ 630 The Company entered into interest rate swaps to hedge against the risk of rising rates on its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate December 31, 2020 December 31, 2019 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities 10,000 3.10 % 5.85 % (1,767) (971) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.10 % 5.85 % (1,414) (777) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.79 % 4.54 % (1,721) (944) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 2.41 % 5.17 % (529) (291) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 1.97 % 4.75 % (616) (339) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 1.97 % 4.75 % (792) (436) $ 39,000 2.48 % 5.24 % $ (6,839) $ (3,758) Note 7. Derivatives and Hedging Activities (continued) In the first quarter of 2020, the Company entered into $40 million of interest rate swaps which were then terminated in the fourth quarter of 2020, resulting in a loss of $808 thousand. Changes in the fair values of derivative financial instruments accounted for as cash flow hedges to the extent they are included in the assessment of effectiveness, are recorded as a component of AOCI. The following is a summary of how AOCI was impacted during the reporting periods: Year Ended December 31, 2020 December 31, 2019 (dollars in thousands) Unrealized loss at beginning of period, net of tax $ (3,915) $ (1,276) Amount reclassified from accumulated other comprehensive income to noninterest expense related to unhedging caplet 513 — Amount reclassified from accumulated other comprehensive income to noninterest expense related to swap termination 625 — Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization 551 422 Amount of loss recognized in other comprehensive income, net of tax (5,406) (3,061) Unrealized loss at end of period, net of tax $ (7,632) $ (3,915) The Company has also entered into interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with a third party financial institution. Additionally, the Company receives an upfront fee from the counterparty, dependent upon the pricing that is recognized upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations. Interest rate swaps that are not designated as hedging instruments are summarized as follows: December 31, 2020 December 31, 2019 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 1,539,602 $ 222,431 $ 787,221 $ 84,679 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 1,539,602 $ 222,431 $ 787,221 $ 84,679 Swap fee income totaled $74.8 million, $28.3 million and $10.8 million for the years ended December 31, 2020, 2019, and 2018, respectively. The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows: December 31, 2020 December 31, 2019 (dollars in thousands) Cash $ 45,719 $ — U.S govt. sponsored agency securities 3,628 3,541 Municipal securities 85,937 22,924 Residential mortgage-backed and related securities 89,646 72,090 $ 224,930 $ 98,555 The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. Additionally, the Company manages financial institution counterparty credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements, central clearing mechanisms and counterparty limits. The agreements contain bilateral collateral arrangements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its borrower counterparties through its normal loan underwriting and credit monitoring policies and procedures. The Company underwrites the combination of the Note 7. Derivatives and Hedging Activities (continued) base loan amount and potential swap exposure and focuses on high quality borrowers with strong collateral values. For the large majority of the Company’s swapped loan portfolio, the loan-to-value including the potential swap exposure is below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations . |
Note 8 - Deposits
Note 8 - Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Deposits | Note 8. Deposits The aggregate amount of certificates of deposit, each with a minimum denomination of $250,000 , was $169.1 million and $293.4 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the scheduled maturities of certificates of deposit were as follows: Amount Year ending December 31: (dollars in thousands) 2021 $ 228,257 2022 61,450 2023 13,648 2024 12,684 2025 7,795 Thereafter 136,825 $ 460,659 The Company has public entity interest-bearing demand deposits and certificates of deposit that are collateralized by investment securities with carrying values as follows: 2020 2019 (dollars in thousands) U.S. govt. sponsored agency securities $ 3,668 $ 6,135 Residential mortgage-backed and related securities 4,772 3,782 $ 8,440 $ 9,917 The Company had a $110.5 million PUD LOC with the FHLB of Des Moines for the purpose of providing additional collateral on public deposits as of December 31, 2020. As of December 31, 2019, the Company had a $47.4 million PUD LOC with the FHLB of Des Moines. There were no amounts outstanding under these letters of credit as of December 31, 2020 or 2019. The Company prepaid brokered and public time deposits totaling $29.2 million in 2020 resulting in a loss of $576 thousand. There were no prepayments of brokered certificates of deposits in 2019. |
Note 9 - Short-Term Borrowings
Note 9 - Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Short-Term Borrowings | Note 9. Short-Term Borrowings Short-term borrowings as of December 31, 2020 and 2019 are summarized as follows: 2020 2019 (dollars in thousands) Overnight repurchase agreements with customers $ — $ 2,193 Federal funds purchased 5,430 11,230 $ 5,430 $ 13,423 As of December 31, 2020, the Company is no longer offering overnight repurchase agreements with customers. The Company’s overnight repurchase agreements with customers were collateralized by investment securities with carrying values as follows: 2020 2019 (dollars in thousands) U.S. govt. sponsored agency securities $ — $ 1,964 Residential mortgage-backed and related securities 517 1,456 Total securities pledged to overnight customer repurchase agreements 517 3,420 Less: overcollateralized position 517 1,227 $ — $ 2,193 Inherent in the overnight repurchase agreements is a risk that the fair value of the collateral pledged on the agreements could decline below the amount obligated under our customer repurchase agreements. The Company considers this risk minimal. The Company monitors balances daily to ensure that collateral is sufficient to meet obligations. Additionally, the Company maintains an overcollateralized position that is sufficient to cover any interest rate movements. The securities underlying the agreements as of December 31, 2019 were under the Company’s control in safekeeping at third-party financial institutions. Information concerning overnight repurchase agreements with customers is summarized as follows for the years ended December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Average daily balance $ 1,495 $ 4,231 Average daily interest rate 0.40 % 0.73 % Maximum month-end balance $ 2,377 $ 4,177 Weighted average rate as of December 31 — % 1.00 % Note 9. Short-Term Borrowings (continued) Information concerning federal funds purchased is summarized as follows for the years ended December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Average daily balance $ 19,573 $ 12,594 Average daily interest rate 0.36 % 2.56 % Maximum month-end balance $ 30,430 $ 17,010 Weighted average rate as of December 31 0.06 % 1.50 % |
Note 10 - FHLB Advances
Note 10 - FHLB Advances | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
FHLB Advances | Note 10. FHLB Advances The subsidiary banks are members of the FHLB of Des Moines. Maturity and interest rate information on advances from the FHLB as of December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Weighted Weighted Average Average Interest Rate Interest Rate Amount Due at Year-End Amount Due at Year-End (dollars in thousands) Maturity: Year ending December 31: 2020 $ — — % $ 110,900 1.73 % 2021 15,000 0.29 5,000 1.55 2022 — — 23,400 1.73 2023 — — 20,000 1.84 2024 — — — — Total FHLB advances $ 15,000 0.29 % $ 159,300 1.74 % The Company prepaid $55.3 million of FHLB advances in 2020 and $30.3 million in 2019 with excess funds generated by strong deposit growth. The loss on the prepayment of the FHLB advances totaled $1.9 million and $386 thousand for the year ended December 31, 2020 and 2019, respectively. Advances are collateralized by loans of $1.1 billion as of December 31, 2020 and 2019, in aggregate. On pledged loans, the FHLB applies varying collateral maintenance levels from 125% to 333% based on the loan type. Advances are also collateralized by securities of $590 thousand and $1.4 million as of December 31, 2020 and 2019, respectively, in aggregate. The Company continues to pledge loans under blanket liens to provide off balance sheet liquidity. As of December 31, 2020 and included within the 2021 maturity grouping above are $15.0 million of short-term advances from the FHLB. These advances have maturities ranging from 1 day to 1 month. Short-term and overnight advances totaled $109.3 million as of December 31, 2019 and had maturities ranging from 1 day to 1 month. As of December 31, 2020 and 2019, the subsidiary banks held $6.6 million and $11.7 million, respectively, of FHLB stock, which is included in restricted investment securities on the consolidated balance sheet. |
Note 11 - Other Borrowings and
Note 11 - Other Borrowings and Unused Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Other Borrowings and Unused Lines of Credit | Note 11. Other Borrowings and Unused Lines of Credit The Company prepaid two wholesale structured repurchase agreements in the second quarter of 2019 using excess funds generated by strong deposit growth. The first wholesale structured repurchase agreement totaled . The second wholesale repurchase agreement totaled $20.0 million and had an original maturity of June 13, 2020 with a rate of 2.46% . The loss on the prepayment of the wholesale structured repurchase agreements totaled million matured in the second quarter of 2019. The wholesale structured repurchase agreements were utilized as an alternative funding source to FHLB advances and customer deposits. The Company had two term notes totaling $23.3 million at December 31, 2018 with original maturity dates of December 31, 2021. Interest on the term notes were calculated at the effective LIBOR rate plus 3.00% per annum (5.52% at December 31, 2018). The collateral on both borrowings was 100% of the outstanding capital stock of the Company’s bank subsidiaries. In February 2019, immediately following the subordinated note issuance, the Company repaid the term notes. In the second quarter of 2020, the Company renewed its revolving line of credit. At renewal, the line amount was increased from $20.0 million to $25.0 million for which there is no outstanding balance as of December 31, 2020. Interest on the revolving line of credit is calculated at the effective Prime Rate plus 2.25% per annum (5.50% at December 31, 2020). The collateral on the revolving line of credit is 100% of the outstanding capital stock of the Company’s bank subsidiaries. Unused lines of credit of the subsidiary banks as of December 31, 2020 and 2019 are summarized as follows: 2020 2019 (dollars in thousands) Secured $ 287,076 $ 45,342 Unsecured 456,000 335,300 $ 743,076 $ 380,642 The Company pledges select C&I, CRE and PPP loans to the Federal Reserve Bank of Chicago for borrowing as part of the Borrower-In-Custody program. |
Note 12 - Subordinated Notes
Note 12 - Subordinated Notes | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Notes | |
Subordinated Notes | Note 12. Subordinated Notes Subordinated notes as of December 31, 2020 and 2019 are summarized as follows: Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of December 31, 2020 as of December 31, 2020 as of December 31, 2019 as of December 31, 2019 Maturity Date (dollars in thousands) Subordinated debenture dated 9/14/20 $ 50,000 5.125 % $ - — % 9/15/2030 Subordinated debenture dated 2/1/19 65,000 5.375 % 65,000 5.375 % 2/15/2029 Subordinated debenture dated 4/30/16* 2,000 4.00 % 2,000 4.00 % 4/30/2026 Subordinated debenture dated 9/15/16* 3,000 4.00 % 3,000 4.00 % 9/15/2026 Debt issuance costs (1,309) (1,606) Total Subordinated Debentures $ 118,691 $ 68,394 *Assumed in acquisition of SFCB On September 14, 2020, the Company completed a private offering of $ Note 12. Subordinated Notes (continued) but excluding, the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate, which is expected to be the then current three-month term SOFR plus 500 basis points. Interest on the subordinated notes is payable quarterly, commencing on December 15, 2020. The subordinated notes are redeemable by the Company at its option, in whole or in part, on any interest payment date on or after September 15, 2025. The subordinated notes are redeemable by the Company in whole but not in part, under certain limited circumstances set forth in the subordinated notes. of the principal amount of the subordinated notes being redeemed, together with any accrued and unpaid interest on the subordinated notes being redeemed to, but excluding, the date of redemption. The subordinated notes are subordinate in the right of payment to the Company’s senior indebtedness and the indebtedness and other liabilities of the subsidiary banks. On February 12, 2019, the Company completed an underwritten public offering of $65.0 million in aggregate principal amount of fixed-to-floating subordinated notes that mature on February 15, 2029. Net proceeds, after deducting the underwriting discount and estimated expenses, were $63.4 million. The subordinated notes, which qualify as Tier 2 capital for the Company, bear interest at a fixed rate of 5.375% per year from and after February 12, 2019 to, but excluding, February 15, 2024 or earlier redemption date. From and after February 15, 2024 to, but excluding, the maturity date or earlier redemption date, the interest will reset quarterly to the then current three-month LIBOR plus 282 basis points. Interest on the subordinated notes is payable semi-annually, commencing on August 15, 2019 during the five year fixed term and thereafter quarterly, commencing on February 15, 2024. The subordinated notes are redeemable by the Company at its option, in whole or in part, on any interest payment date on or after February 15, 2024. The subordinated notes are redeemable by the Company in whole but not in part, under certain limited circumstances set forth in the subordinated notes. Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the subordinated notes being redeemed, together with any accrued and unpaid interest on the subordinated notes being redeemed to, but excluding, the date of redemption. The subordinated notes are subordinate in the right of payment to the Company’s senior indebtedness and the indebtedness and other liabilities of the subsidiary banks. Unamortized debt issuance costs related to the subordinated notes totaled $1.3 million and $1.6 million at December 31, 2020 and 2019, respectively. The Company used a portion of the net proceeds from the offering to repay term notes totaling $21.3 million and the outstanding balance of $9.0 million on its revolving line of credit. As part of the merger with Springfield Bancshares, the Company assumed two subordinated debentures with a fair value of $4.8 million. The interest rate on the subordinated debentures is fixed for the first five years of the term and then converts to floating for the remaining term, at the prime rate floating daily. The debentures may be called after a minimum of five years following issuance and at the prior approval of the appropriate regulatory agencies. These subordinated debentures are unsecured. |
Note 13 - Junior Subordinated D
Note 13 - Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2020 | |
Junior Subordinated Debentures | |
Junior Subordinated Debentures | Note 13. Junior Subordinated Debentures Junior subordinated debentures are summarized as of December 31, 2020 and 2019 as follows: 2020 2019 (dollars in thousands) Note Payable to QCR Holdings Capital Trust II $ 10,310 $ 10,310 Note Payable to QCR Holdings Capital Trust III 8,248 8,248 Note Payable to QCR Holdings Capital Trust V 10,310 10,310 Note Payable to Community National Trust II* 3,093 3,093 Note Payable to Community National Trust III* 3,609 3,609 Note Payable to Guaranty Bankshares Statutory Trust I** 4,640 4,640 Market Value Discount per ASC 805*** (2,217) (2,372) $ 37,993 $ 37,838 * As part of the acquisition of Community National, the Company assumed two junior subordinated debentures with fair value of $4.2 million. ** As part of the acquisition of Guaranty Bank, the Company assumed one junior subordinated debenture with a fair value of $3.9 million. *** Market value discount includes discount on junior subordinated debt acquired in 2013 as part of the purchase of Community National and junior subordinated debt acquired in 2017 as part of the purchase of Guaranty Bank. A schedule of the Company’s non-consolidated subsidiaries formed for the issuance of trust preferred securities, including the amounts outstanding as of December 31, 2020 and 2019, is as follows: Amount Amount Outstanding Outstanding December 31, December 31, Interest Rate as of Interest Rate as of Name Date Issued 2020 2019 Interest Rate December 31, 2020 December 31, 2019 (dollars in thousands) QCR Holdings Statutory Trust II* February 2004 $ 10,310 $ 10,310 2.85% over 3-month LIBOR 3.10 % 4.79 % QCR Holdings Statutory Trust III February 2004 8,248 8,248 2.85% over 3-month LIBOR 3.10 % 4.79 % QCR Holdings Statutory Trust V February 2006 10,310 10,310 1.55% over 3-month LIBOR 1.79 % 3.54 % Community National Statutory Trust II September 2004 3,093 3,093 2.17% over 3-month LIBOR 2.41 % 4.08 % Community National Statutory Trust III March 2007 3,609 3,609 1.75% over 3-month LIBOR 1.97 % 3.64 % Guaranty Bankshares Statutory Trust I May 2005 4,640 4,640 1.75% over 3-month LIBOR 1.97 % 3.64 % $ 40,210 $ 40,210 Weighted Average Rate 2.48 % 4.18 % * Original amount issued for QCR Holdings Statutory Trust II was $12,372,000. Securities issued by all of the trusts listed above mature 30 years from the date of issuance, but all are currently callable at par at any time. Interest rate reset dates vary by Trust. The Company uses interest rate swaps for the purpose of hedging interest rate risk on the variable rate junior subordinated debt. See Note 7 to the Consolidated Financial Statements for the details of these instruments. |
Note 14 - Federal and State Inc
Note 14 - Federal and State Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Federal and State Income Taxes | Note 14. Federal and State Income Taxes Federal and state income tax expense was comprised of the following components for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 (dollars in thousands) Current $ 27,237 $ 8,255 $ 2,723 Deferred (14,530) 6,364 6,292 $ 12,707 $ 14,619 $ 9,015 A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income was as follows for the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 % of % of % of Pretax Pretax Pretax Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 15,391 21.0 % $ 15,126 21.0 % $ 10,948 21.0 % Tax exempt income, net (5,943) (8.1) (4,470) (6.2) (3,958) (7.6) Bank-owned life insurance (308) (0.4) (360) (0.5) (343) (0.6) State income taxes, net of federal benefit, current year 3,622 4.9 3,668 5.1 2,681 5.2 Change in unrecognized tax benefits 546 0.7 (93) (0.1) (45) (0.1) Goodwill impairment 105 0.1 630 0.9 — — Intended liquidation of bank-owned life insurance — — 790 1.1 — — Tax credits (456) (0.6) (705) (1.0) (154) (0.3) Acquisition costs — — — — 227 0.4 Excess tax benefit on stock options exercised and restricted stock awards vested (242) (0.3) (287) (0.4) (425) (0.8) Other (215) (0.3) 320 0.4 84 0.1 Federal and state income tax expense $ 12,707 17.3 % $ 14,619 20.3 % $ 9,015 17.3 % Changes in the unrecognized tax benefits included in other liabilities are as follows for the years ended December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Balance, beginning $ 1,254 $ 1,249 Impact of tax positions taken during current year 787 375 Gross increase (decrease) related to tax positions of prior years 39 44 Reduction as a result of a lapse of the applicable statute of limitations (187) (414) Balance, ending $ 1,893 $ 1,254 Included in the unrecognized tax benefits liability at December 31, 2020 are potential benefits of approximately $1.4 million that, if recognized, would affect the effective tax rate. The liability for unrecognized tax benefits includes accrued interest for tax positions, which either do not meet the more-likely-than-not recognition threshold or where the tax benefit is measured at an amount less than the tax benefit Note 14. Federal and State Income Taxes (continued) claimed or expected to be claimed on an income tax return. At December 31, 2020 and 2019, accrued interest on uncertain tax positions was approximately $277 thousand and $232 thousand, respectively. Estimated interest related to the underpayment of income taxes is classified as a component of “income tax expense” in the statements of income. The Company’s federal income tax returns are open and subject to examination from the 2017 tax return year and later. Various state franchise and income tax returns are generally open from the 2016 and later tax return years based on individual state statutes of limitations. The net deferred tax liabilities consisted of the following as of December 31, 2020 and 2019: 2020 2019 (dollars in thousands) Deferred tax assets: Historic tax credits $ 68 $ 68 Net unrealized losses on securities available for sale and derivative instruments — 126 Compensation 10,288 8,433 Loan/lease losses 20,016 11,332 Net operating loss carryforwards, federal and state 628 739 Other 71 605 31,071 21,303 Deferred tax liabilities: Net unrealized gains on securities available for sale and derivative instruments 869 — Premises and equipment 5,737 4,616 Equipment financing leases 13,373 16,252 Acquisition fair value adjustments 3,351 3,963 Intended liquidation of bank-owned life insurance — 850 Gain on sale of assets and liabilities of subsidiary — 794 Investment accretion 28 28 Deferred loan origination fees, net 197 704 Other 922 832 24,477 28,039 Net deferred tax liabilities $ 6,594 $ (6,736) At December 31, 2020, the Company had $3.0 million of federal tax net operating loss carryforwards which are set to expire in varying amounts between 2029 and 2033. At December 31, 2020, the Company had $2.1 million of state tax net operating loss carryforwards which are set to expire in varying amounts between 2023 and 2028. All of the federal tax net operating loss carryforwards and the state tax net operating loss carryforwards were acquired from Community National and CNB. Note 14. Federal and State Income Taxes (continued) The change in deferred income taxes was reflected in the Consolidated Financial Statements as follows for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 (dollars in thousands) Provision for income taxes $ (14,530) $ 6,364 $ 6,292 Net deferred tax asset resulting from market value adjustments of acquisitions — (381) (52) Net deferred tax assets resulting from sale of other subsidiary 363 — — Net deferred tax liabilities resulting from sale of bank subsidiary — (1,644) — Statement of stockholders' equity- Other comprehensive income (loss) 837 1,433 (1,000) $ (13,330) $ 5,772 $ 5,240 |
Note 15 - Employee Benefit Plan
Note 15 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Employee Benefit Plans | Note 15. Employee Benefit Plans The Company has a profit sharing plan, which includes a provision designed to qualify under Section 401(k) of the Internal Revenue Code of 1986, as amended, to allow for participant contributions. Substantially all employees who are at least 18 years of age are eligible to participate in the plan. The Company matches 100% of the first 3% of employee contributions, and 50% of the next 3% of employee contributions, up to a maximum amount of 4.5% of an employee’s compensation. Additionally, at its discretion, the Company may make additional contributions to the plan, which are allocated to the accounts of participants in the plan based on relative compensation. There were no discretionary contributions for the years ended December 31, 2020, 2019 and 2018. Company matching contributions for the years ended December 31, 2020, 2019, and 2018 were as follows: 2020 2019 2018 (dollars in thousands) Matching contribution $ 2,520 $ 2,443 $ 2,000 The Company has entered into nonqualified supplemental executive retirement plans (SERPs) with certain executive officers. The SERPs allow certain executives to accumulate retirement benefits beyond those provided by the qualified retirement plan. Changes in the liability related to the SERPs, included in other liabilities, are as follows for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (dollars in thousands) Balance, beginning $ 5,160 $ 4,623 $ 4,330 Expense accrued 1,193 701 457 Cash payments made (164) (164) (164) Balance, ending $ 6,189 $ 5,160 $ 4,623 The Company has entered into deferred compensation agreements with certain executive officers. Under the provisions of the agreements, the officers may defer compensation and the Company matches the deferral up to certain maximums. The Company’s matching contribution varies by officer and is a maximum of between $10 thousand and $25 thousand annually as set forth in each officer’s participation agreement. Interest on the deferred amounts is earned at prime rate subject to a minimum of 4% and a maximum of 12%, with such limits differing by Note 15. Employee Benefit Plans (continued) officer. The Company has also entered into deferred compensation agreements with certain other officers. Under the provisions of the agreements, the officers may defer compensation and the Company matches the deferral up to certain maximums. The Company’s matching contribution differs by officer and is a maximum between 4% and 10% of compensation. Interest on the deferred amounts is earned at prime rate plus one percentage point, and has a minimum of 4% and shall not exceed 8%. Upon retirement, the officer will receive the deferral balance in 180 equal monthly installments. As of December 31, 2020 and 2019, the liability related to the agreements totaled $24.7 million and $19.5 million, respectively. Changes in the deferred compensation agreements, included in other liabilities, are as follows for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 (dollars in thousands) Balance, beginning $ 19,474 $ 15,029 $ 12,347 Employee deferrals 3,959 2,474 1,407 Company match and interest 2,628 2,072 1,367 Cash payments made (1,348) (101) (92) Balance, ending $ 24,713 $ 19,474 $ 15,029 |
Note 16 - Stock-Based Compensat
Note 16 - Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Stock-Based Compensation | Note 16. Stock-Based Compensation The Company’s Board of Directors adopted in February 2010, and the stockholders approved in May 2010, the QCR Holdings, Inc. 2010 Equity Incentive Plan (“2010 Equity Incentive Plan”). The Company’s Board of Directors adopted in February 2013, and the stockholders approved in May 2013, the QCR Holdings, Inc. 2013 Equity Incentive Plan (“2013 Equity Incentive Plan”). The Company’s Board of Directors adopted in February 2016, and the stockholders approved in May 2016, the QCR Holdings, Inc. 2016 Equity Incentive Plan (“2016 Equity Incentive Plan”). Up t 350,000, 350,000, and 400,000 shares of common stock, respectively, may be issued to employees and directors of the Company and its subsidiaries pursuant to equity incentive awards granted under these plans. The 2010 Equity Incentive Plan, the 2013 Equity Incentive Plan, and the 2016 Equity Incentive Plan (collectively, the “Equity Plans”) are administered by the Compensation Committee of the Board of Directors (the “Committee”). As of December 31, 2020, there were 170,833 remaining shares of common stock available for the grant of future awards under the Equity Plans; however, such future awards may be granted only under the 2016 Equity Incentive Plan. The number and exercise price of options granted under the Equity Plans are determined by the Committee at the time the option is granted. In no event can the exercise price be less than the value of the common stock at the date of the grant for stock options. All options have a 10-year life and will vest and become exercisable from 3-to-7 years after the date of the grant. Note 16. Stock-Based Compensation (continued) Stock-based compensation expense was reflected in the Consolidated Financial Statements as follows for the years ended December 31, 2020, 2019, and 2018. 2020 2019 2018 (dollars in thousands) Stock options $ 297 $ 475 $ 472 Restricted stock awards 1,619 1,850 857 Stock purchase plan 234 144 114 $ 2,150 $ 2,469 $ 1,443 Stock options: A summary of the stock option plans as of December 31, 2020, 2019, and 2018 and changes during the years then ended is presented below: December 31, 2020 2019 2018 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding, beginning 426,913 $ 20.14 469,572 $ 18.52 513,554 $ 17.13 Granted 23,350 39.12 20,200 36.00 16,315 44.02 Exercised (41,650) 10.67 (59,393) 12.11 (60,127) 13.56 Forfeited (850) 19.94 (3,466) 31.59 (170) 16.81 Outstanding, ending 407,763 22.24 426,913 20.14 469,572 18.52 Exercisable, ending 354,899 365,084 358,270 Weighted average fair value per option granted $ 10.07 $ 11.29 $ 14.68 A further summary of options outstanding as of December 31, 2020 is presented below: Options Outstanding Weighted Options Exercisable Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Prices Outstanding Life Price Exercisable Price $7.99 to $8.93 11,325 0.14 $ 8.15 11,325 $ 8.15 $9.00 to $9.30 60,328 1.08 9.30 60,328 9.30 $15.50 to $15.65 66,491 2.24 15.64 66,491 15.64 $17.10 to $18.00 113,527 3.56 17.31 113,527 17.31 $21.71 to $22.64 58,115 5.22 22.88 56,115 22.63 $36.00 to $48.50 97,977 7.39 41.45 47,113 42.98 407,763 354,899 Note 16. Stock-Based Compensation (continued) Restricted stock awards: A summary of changes in the Company’s nonvested restricted stock, restricted stock unit and performance stock unit awards as of December 31, 2020, 2019 and 2018 is presented below: December 31, 2020 2019 2018 Outstanding, beginning 106,826 64,099 46,389 Granted* 34,559 85,961 37,315 Released (37,296) (37,624) (19,605) Forfeited (1,600) (5,610) — Outstanding, ending 102,489 106,826 64,099 Weighted average fair value per share granted $ 39.39 $ 20.14 $ 43.50 * At December 31, 2019, includes The total grant value of restricted stock, restricted stock unit and performance share unit awards that were released during the years ended December 31, 2020, 2019 and 2018 was $1.4 million, $1.3 million and $622 thousand, respectively. Stock purchase plan: The Company’s Board of Directors and its stockholders adopted in October 2002 the QCR Holdings, Inc. Employee Stock Purchase Plan (the “Purchase Plan”). On May 2, 2012, the Company’s stockholders approved a complete amendment and restatement of the Purchase Plan. As of January 1, 2020, there were 89,582 shares of common stock available for issuance under the Purchase Plan. For each six-month offering period, the Board of Directors will determine how many of the total number of available shares will be offered. The purchase price is the lesser of 85% or the fair market value at the date of the grant or the investment date. The investment date, as established by the Board of Directors, is the date common stock is purchased after the end of each calendar quarter during an offering period. The maximum dollar amount any one participant can elect to contribute in an offering period is $10 thousand. Additionally, the maximum percentage that any one participant can elect to contribute is 15% of his or her compensation for the years ended December 31, 2020 and 2019. The maximum percentage that any one participant could elect to contribute was 10% of his or her compensation for the year ended December 31, 2018. Information for the stock purchase plan for the years ended December 31, 2020, 2019 and 2018 is presented below: 2020 2019 2018 Shares granted 38,738 29,882 17,305 Shares purchased 37,114 28,775 15,528 Weighted average fair value per share granted $ 6.01 $ 4.81 $ 6.63 |
Note 17 - Regulatory Capital Re
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Regulatory Capital Requirements and Restrictions on Dividends | Note 17. Regulatory Capital Requirements and Restrictions on Dividends The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and subsidiary banks’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of December 31, 2020 and 2019, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject. Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of December 31, 2020 and 2019 are also presented in the following table (dollars in thousands). As of December 31, 2020 and 2019, the subsidiary banks met the requirements to be “well capitalized”. For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020: Company: Total risk-based capital $ 721,004 14.95 % $ 385,832 > 8.00 % $ 506,404 > 10.50 % $ 482,290 > 10.00 % Tier 1 risk-based capital 546,729 11.34 289,374 > 6.00 409,946 > 8.50 385,832 > 8.00 Tier 1 leverage 546,729 9.49 230,345 > 4.00 230,345 > 4.00 287,931 > 5.00 Common equity Tier 1 508,736 10.55 217,030 > 4.50 337,603 > 7.00 313,488 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 213,608 12.24 % $ 139,581 > 8.00 % $ 183,200 > 10.50 % $ 174,477 > 10.00 % Tier 1 risk-based capital 191,693 10.99 104,686 > 6.00 148,305 > 8.50 139,581 > 8.00 Tier 1 leverage 191,693 8.48 90,430 > 4.00 90,430 > 4.00 113,038 > 5.00 Common equity Tier 1 191,693 10.99 78,514 > 4.50 122,134 > 7.00 113,410 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 217,227 13.14 % $ 132,269 > 8.00 % $ 173,603 > 10.50 % $ 165,336 > 10.00 % Tier 1 risk-based capital 196,438 11.88 99,202 > 6.00 140,536 > 8.50 132,269 > 8.00 Tier 1 leverage 196,438 10.01 78,535 > 4.00 78,535 > 4.00 98,169 > 5.00 Common equity Tier 1 196,438 11.88 74,401 > 4.50 115,735 > 7.00 107,469 > 6.50 Community State Bank: Total risk-based capital $ 108,040 12.69 % $ 68,117 > 8.00 % $ 89,404 > 10.50 % $ 85,146 > 10.00 % Tier 1 risk-based capital 97,350 11.43 51,088 > 6.00 72,374 > 8.50 68,117 > 8.00 Tier 1 leverage 97,350 10.27 37,930 > 4.00 37,930 > 4.00 47,412 > 5.00 Common equity Tier 1 97,350 11.43 38,316 > 4.50 59,602 > 7.00 55,345 > 6.50 Springfield First Community Bank: Total risk-based capital $ 90,334 14.35 % $ 50,357 > 8.00 % $ 66,094 > 10.50 % $ 62,947 > 10.00 % Tier 1 risk-based capital 77,668 12.34 37,768 > 6.00 53,505 > 8.50 50,357 > 8.00 Tier 1 leverage 77,668 10.87 28,575 > 4.00 28,575 > 4.00 35,719 > 5.00 Common equity Tier 1 77,668 12.34 28,326 > 4.50 44,063 > 7.00 40,915 > 6.50 Note 17. Regulatory Capital Requirements and Restrictions on Dividends (continued) For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Company: Total risk-based capital $ 581,234 13.33 % $ 348,937 > 8.00 % $ 457,980 > 10.50 % $ 436,171 > 10.00 % Tier 1 risk-based capital 481,702 11.04 261,703 > 6.00 370,746 > 8.50 348,937 > 8.00 Tier 1 leverage 481,702 9.53 202,207 > 4.00 202,207 > 4.00 252,758 > 5.00 Common equity Tier 1 443,864 10.18 196,277 > 4.50 305,320 > 7.00 283,511 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 183,855 11.83 % $ 124,362 > 8.00 % $ 163,225 > 10.50 % $ 155,452 > 10.00 % Tier 1 risk-based capital 170,137 10.94 93,271 > 6.00 132,134 > 8.50 124,362 > 8.00 Tier 1 leverage 170,137 9.94 68,479 > 4.00 68,479 > 4.00 85,598 > 5.00 Common equity Tier 1 170,137 10.94 69,953 > 4.50 108,817 > 7.00 101,044 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 175,498 11.90 % $ 117,953 > 8.00 % $ 154,813 > 10.50 % $ 147,441 > 10.00 % Tier 1 risk-based capital 162,127 11.00 88,465 > 6.00 125,325 > 8.50 117,953 > 8.00 Tier 1 leverage 162,127 10.41 62,286 > 4.00 62,286 > 4.00 77,857 > 5.00 Common equity Tier 1 162,127 11.00 66,349 > 4.50 103,209 > 7.00 95,837 > 6.50 Community State Bank: Total risk-based capital $ 92,095 12.32 % $ 59,813 > 8.00 % $ 78,504 > 10.50 % $ 74,766 > 10.00 % Tier 1 risk-based capital 85,437 11.43 44,860 > 6.00 63,551 > 8.50 59,813 > 8.00 Tier 1 leverage 85,437 10.39 32,902 > 4.00 32,902 > 4.00 41,128 > 5.00 Common equity Tier 1 85,437 11.43 33,645 > 4.50 52,336 > 7.00 48,598 > 6.50 Springfield First Community Bank: Total risk-based capital $ 71,074 12.72 % $ 44,704 > 8.00 % $ 58,674 > 10.50 % $ 55,880 > 10.00 % Tier 1 risk-based capital 63,956 11.45 33,528 > 6.00 47,498 > 8.50 44,704 > 8.00 Tier 1 leverage 63,956 9.70 26,379 > 4.00 26,379 > 4.00 32,974 > 5.00 Common equity Tier 1 63,956 11.45 25,146 > 4.50 39,116 > 7.00 36,322 > 6.50 The Company’s ability to pay dividends to its stockholders may be affected by both general corporate law considerations and policies of the Federal Reserve applicable to bank holding companies. The payment of dividends by any financial institution or its holding company is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. Notwithstanding the availability of funds for dividends, however, the Federal Reserve may prohibit the payment of any dividends by the subsidiary banks if the Federal Reserve determines such payment would constitute an unsafe or unsound practice. The Company also has certain contractual restrictions on its ability to pay dividends. The Company has issued junior subordinated debentures in four private placements and assumed three issues of junior subordinated debentures in connection with the acquisitions. Under the terms of the debentures, the Company may be prohibited, under certain circumstances, from paying dividends on shares of its common stock. These circumstances did not exist at December 31, 2020 or 2019. In September 2020 and in February 2019, the Company completed subordinated notes offerings. See Note 12 of the Consolidated Financial Statements for further information. On February 18, 2020, the Board of Directors of the Company approved a share repurchase program under which the Company is authorized to repurchase, from time to time as the Company deems appropriate, up to 800,000 shares of its outstanding common stock, or approximately 5% of the outstanding shares as of December 31, 2019. The Company suspended the repurchase of shares on March 16, 2020 due to the uncertainties related to the COVID-19 pandemic and it is uncertain when the Company will resume the repurchase of shares as part of this program in the future. |
Note 18 - Earnings per Share
Note 18 - Earnings per Share | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Earnings per Share | Note 18. Earnings per Share The following information was used in the computation of basic and diluted EPS for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 (dollars in thousands, except per share data) Net income $ 60,582 $ 57,408 $ 43,120 Basic EPS $ 3.84 $ 3.65 $ 2.92 Diluted EPS $ 3.80 $ 3.60 $ 2.86 Weighted average common shares outstanding* 15,771,650 15,730,016 14,768,687 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 180,987 237,759 296,043 Weighted average common and common equivalent shares outstanding** 15,952,637 15,967,775 15,064,730 * The increase in weighted average common shares outstanding from 2018 to 2019 was primarily due to the common stock ** Excludes anti-dilutive shares of 104,636, 80,437 and 91,954 at December 31, 2020, 2019 and 2018, respectively |
Note 19 - Commitments and Conti
Note 19 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies | Note 19. Commitments and Contingencies In the normal course of business, the subsidiary banks make various commitments and incur certain contingent liabilities that are not presented in the accompanying Consolidated Financial Statements. The commitments and contingent liabilities include various guarantees, commitments to extend credit, and standby letters of credit. 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 many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The subsidiary banks evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the subsidiary banks upon extension of credit, is based upon management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the subsidiary banks to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The subsidiary banks hold collateral, as described above, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the subsidiary banks would be required to fund the commitments. The maximum potential amount of future payments the subsidiary banks could be required to make is represented by the contractual amount. If the commitment is funded, the subsidiary banks would be entitled to seek recovery from the customer. At December 31, 2020 and 2019, no amounts had been recorded as liabilities for the subsidiary banks’ potential obligations under these guarantees. As of December 31, 2020 and 2019, commitments to extend credit aggregated $1.7 billion and $1.2 billion, respectively. As of December 31, 2020 and 2019, standby letters of credit aggregated $24.8 million and $23.8 million, respectively. Management does not expect that all of these commitments will be funded. Note 19. Commitments and Contingencies (continued) The Company has also executed contracts for the sale of mortgage loans in the secondary market in the amount of $3.8 million and $3.7 million as of December 31, 2020 and 2019, respectively. These amounts are included in loans held for sale at the respective balance sheet dates. Residential mortgage loans sold to investors in the secondary market are sold with varying recourse provisions. Essentially, all loan sales agreements require the repurchase of a mortgage loan by the seller in situations such as breach of representation, warranty, or covenant, untimely document delivery, false or misleading statements, failure to obtain certain certificates of insurance, unmarketability, etc. Certain loan sales agreements contain repurchase requirements based on payment-related defects that are defined in terms of the number of days/months since the purchase, the sequence number of the payment, and/or the number of days of payment delinquency. Based on the specific terms stated in the agreements of investors purchasing residential mortgage loans from the Company’s subsidiary banks, the Company had $32.4 million and $24.5 million of sold residential mortgage loans with recourse provisions still in effect at December 31, 2020 and 2019, respectively. The subsidiary banks did not repurchase any loans from secondary market investors under the terms of loans sales agreements during the years ended December 31, 2020, 2019, and 2018. In the opinion of management, the risk of recourse and the subsequent requirement of loan repurchase to the subsidiary banks is not significant, and accordingly no liabilities have been established related to such. Aside from cash on-hand and in-vault, the majority of the Company’s cash is maintained at upstream correspondent banks. The total amount of cash on deposit, certificates of deposit, and federal funds sold exceeded federal insured limits by approximately $59.4 million and $34.6 million as of December 31, 2020 and 2019, respectively. In the opinion of management, no material risk of loss exists due to the financial condition of the upstream correspondent banks. In an arrangement with Goldman Sachs, CRBT offers a cash management program for select customers. Based on a predetermined minimum balance, which must be maintained in the account, excess funds are automatically swept daily to an institutional money market fund administered by Goldman Sachs. At December 31, 2020 and 2019, the Company had $103.8 million and $148.3 million, respectively of customer funds invested in this cash management program. In the opinion of management, no material risk of loss exists due to the financial condition of Goldman Sachs. As of December 31, 2020, there were $24.0 million of investment securities pledged on Goldman Sachs and none were pledged as of December 31, 2019. |
Note 20 - Quarterly Results of
Note 20 - Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Quarterly Results of Operations (Unaudited) | Note 20. Quarterly Results of Operations (Unaudited) Year Ended December 31, 2020 March June September December 2020 2020 2020 2020 (dollars in thousands) Total interest income $ 48,982 $ 48,650 $ 50,890 $ 49,851 Total interest expense 11,276 7,694 6,309 6,144 Net interest income 37,706 40,956 44,581 43,707 Provision for loan/lease losses 8,367 19,915 20,342 7,080 Noninterest income 15,196 28,626 37,959 32,017 Noninterest expense 31,423 33,130 40,838 46,364 Income before taxes 13,112 16,537 21,360 22,280 Federal and state income tax expense 1,884 2,798 4,016 4,009 Net income $ 11,228 $ 13,739 $ 17,344 $ 18,271 EPS: Basic $ 0.71 $ 0.87 $ 1.10 $ 1.16 Diluted $ 0.70 $ 0.86 $ 1.09 $ 1.14 Year Ended December 31, 2019 March June September December 2019 2019 2019 2019 (dollars in thousands) Total interest income $ 52,101 $ 54,181 $ 56,817 $ 52,977 Total interest expense 15,193 16,168 16,098 13,058 Net interest income 36,908 38,013 40,719 39,919 Provision for loan/lease losses 2,134 1,941 2,012 979 Noninterest income 11,992 17,065 19,906 29,805 Noninterest expense 32,435 36,560 39,945 46,294 Income before taxes 14,331 16,577 18,668 22,451 Federal and state income tax expense 1,413 3,073 3,573 6,560 Net income $ 12,918 $ 13,504 $ 15,095 $ 15,891 EPS: Basic $ 0.82 $ 0.86 $ 0.96 $ 1.01 Diluted $ 0.81 $ 0.85 $ 0.94 $ 0.99 |
Note 21 - Parent Company Only F
Note 21 - Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Parent Company Only Financial Statements | Note 21. Parent Company Only Financial Statements The following is condensed financial information of QCR Holdings, Inc. (parent company only): Condensed Balance Sheets 2020 2019 (dollars in thousands) Assets Cash and due from banks $ 88,610 $ 59,529 Interest-bearing deposits at financial institutions 7,200 5,601 Investment in bank subsidiaries 655,232 570,698 Investment in nonbank subsidiaries 4,540 13,239 Premises and equipment, net 9,242 9,424 Goodwill — 682 Intangibles — 1,503 Other assets 7,225 15,150 Total assets $ 772,049 $ 675,826 Liabilities and Stockholders' Equity Liabilities: Subordinated notes $ 113,691 $ 63,531 Junior subordinated debentures 37,993 37,838 Other liabilities 26,572 39,106 Total liabilities 178,256 140,475 Stockholders' Equity: Common stock 15,806 15,828 Additional paid-in capital 275,807 274,785 Retained earnings 300,804 245,836 Accumulated other comprehensive loss 1,376 (1,098) Total stockholders' equity 593,793 535,351 Total liabilities and stockholders' equity $ 772,049 $ 675,826 Note 21. Parent Company Only Financial Statements (continued) Condensed Statements of Income 2020 2019 2018 (dollars in thousands) Total interest income $ 29 $ 77 $ 88 Equity in net income of bank subsidiaries 79,624 69,966 55,209 Equity in net income of nonbank subsidiaries (261) 6,797 (436) Other 289 314 (322) Total income 79,681 77,154 54,539 Interest expense 6,662 5,836 3,637 Salaries and employee benefits 11,825 8,739 6,598 Professional fees 2,558 1,545 1,872 Acquisition costs — — 1,654 Post-acquisition compensation, transition and integration costs 145 3,171 165 Disposition costs 312 1,606 — Goodwill impairment 500 3,000 — Other 2,505 2,147 1,026 Total expenses 24,507 26,044 14,952 Income before income tax benefit 55,174 51,110 39,587 Income tax benefit 5,408 6,298 3,533 Net income $ 60,582 $ 57,408 $ 43,120 Note 21. Parent Company Only Financial Statements (continued) Condensed Statements of Cash Flows 2020 2019 2018 (dollars in thousands) Cash Flows from Operating Activities: Net income $ 60,582 $ 57,408 $ 43,120 Adjustments to reconcile net income to net cash provided by operating activities: Earnings of bank subsidiaries (79,624) (69,966) (55,209) Earnings (losses) of nonbank subsidiaries 261 (6,797) 436 Distributions from bank subsidiaries — — 34,500 Distributions from nonbank subsidiaries 40 45,058 63 Deferred income taxes 6,909 2,498 1,292 Accretion of acquisition fair value adjustments 378 305 183 Depreciation 454 327 249 Stock-based compensation expense 2,150 2,469 1,443 Loss on sale of subsidiary 158 — — Goodwill impairment 500 3,000 — Decrease (increase) in other assets 1,663 (2,472) 940 Increase (decrease) in other liabilities (14,966) 7,814 (7,226) Net cash provided by (used in) operating activities (21,495) 39,644 19,791 Cash Flows from Investing Activities: Net increase in interest-bearing deposits at financial institutions (1,599) (4,600) (1,000) Capital infusion, bank subsidiaries — (8,600) (3,500) Capital infusion, non-bank subsidiaries — (100) — Net cash received in dissolution of subsidiary 8,450 — — Net cash paid for acquisitions — — (5,183) Net cash received in sale of subsidiary 195 — — Purchase of premises and equipment (272) (2,861) (2,257) Net cash provided by (used in) investing activities 6,774 (16,161) (11,940) Cash Flows from Financing Activities: Activity in other borrowings: Proceeds from other borrowings — — 9,000 Paydown on revolving line of credit — (9,000) — Prepayments — (21,313) — Calls, maturities and scheduled payments — (1,799) (12,550) Proceeds from subordinated notes 50,000 63,393 — Payment of cash dividends on common and preferred stock (3,779) (3,767) (3,300) Proceeds from issuance of common stock, net 1,360 1,926 1,279 Repurchase and cancellation of shares (3,779) — — Net cash provided by (used in) financing activities 43,802 29,440 (5,571) Net increase in cash and due from banks 29,081 52,923 2,280 Cash and due from banks: Beginning 59,529 6,606 4,326 Ending $ 88,610 $ 59,529 $ 6,606 |
Note 22 - Fair Value
Note 22 - Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value | |
Fair Value | Note 22. Fair Value Accounting guidance on fair value measurements uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: ● Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets; ● Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and ● Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement Assets measured at fair value on a recurring basis comprised the following at December 31, 2020 and 2019: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) December 31, 2020: Securities AFS: U.S. govt. sponsored agency securities $ 15,336 $ — $ 15,336 $ — Residential mortgage-backed and related securities 132,842 — 132,842 — Municipal securities 152,408 — 152,408 — Asset-backed securities 40,683 — 40,683 — Other securities 20,697 — 20,697 — Derivatives 222,757 — 222,757 — Total assets measured at fair value $ 584,723 $ — $ 584,723 $ — Derivatives $ 229,270 $ — $ 229,270 $ — Total liabilities measured at fair value $ 229,270 $ — $ 229,270 $ — December 31, 2019: Securities AFS: U.S. govt. sponsored agency securities $ 20,078 $ — $ 20,078 $ — Residential mortgage-backed and related securities 120,587 — 120,587 — Municipal securities 48,257 — 48,257 — Asset-backed securities 16,887 — 16,887 — Other securities 4,886 — 4,886 — Derivatives 87,827 — 87,827 — Total assets measured at fair value $ 298,522 $ — $ 298,522 $ — Derivatives $ 88,437 $ — $ 88,437 $ — Total liabilities measured at fair value $ 88,437 $ — $ 88,437 $ — The securities AFS portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs). Note 22. Fair Value (continued) Interest rate caps are used for the purpose of hedging interest rate risk. See Note 7 to the Consolidated Financial Statements for the details of these instruments. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs). Interest rate swaps are used for the purpose of hedging interest rate risk on junior subordinated debt. See Note 7 to the Consolidated Financial Statements for the details of these instruments. The fair values are determined by comparing the contract rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Interest rate swaps are also executed for select commercial customers. See Note 7 to the Consolidated Financial Statements for the detail of these instruments. The fair values are determined by comparing the contractual rate on the swap with the then-current market rate for the remaining term of the transaction (Level 2 inputs). Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets measured at fair value on a non-recurring basis comprised the following at December 31, 2020 and 2019: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) December 31, 2020: Impaired loans/leases $ 9,926 $ — $ — $ 9,926 OREO 22 — — 22 $ 9,948 $ — $ — $ 9,948 December 31, 2019: Impaired loans/leases $ 3,394 $ — $ — $ 3,394 OREO 4,459 — — 4,459 $ 7,853 $ — $ — $ 7,853 Impaired loans/leases are evaluated and valued at the time the loan/lease is identified as impaired, at the lower of cost or fair value, and are classified as a Level 3 in the fair value hierarchy. Fair value is measured based on the value of the collateral securing these loans/leases. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable and is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. OREO in the table above consists of property acquired through foreclosures and settlements of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the property. Note 22. Fair Value (continued) The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level Fair Value Measurements Fair Value Fair Value December 31, December 31, 2020 2019 Valuation Technique Unobservable Input Range (dollars in thousands) Impaired loans/leases $ 9,926 $ 3,394 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % OREO 22 4,459 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % For impaired loans/leases and OREO, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs. There have been no changes in valuation techniques used for any assets measured at fair value during the years ended December 31, 2020 or 2019. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company’s consolidated balance sheet, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis: Fair Value As of December 31, 2020 As of December 31, 2019 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 61,329 $ 61,329 $ 76,254 $ 76,254 Federal funds sold Level 2 9,080 9,080 9,800 9,800 Interest-bearing deposits at financial institutions Level 2 86,596 86,596 147,891 147,891 Investment securities: HTM Level 2 476,165 521,277 400,646 426,545 AFS Level 2 361,966 361,966 210,695 210,695 Loans/leases receivable, net Level 3 9,191 9,926 3,143 3,394 Loans/leases receivable, net Level 2 4,157,562 4,112,735 3,651,061 3,606,520 Derivatives Level 2 222,757 222,757 87,827 87,827 Deposits: Nonmaturity deposits Level 2 4,138,478 4,138,478 3,184,726 3,184,726 Time deposits Level 2 460,659 465,681 726,325 742,444 Short-term borrowings Level 2 5,430 5,430 13,423 13,423 FHLB advances Level 2 15,000 14,998 159,300 159,193 Subordinated notes Level 2 118,691 122,406 68,394 68,563 Junior subordinated debentures Level 2 37,993 30,618 37,838 30,477 Derivatives Level 2 229,270 229,270 88,437 88,437 |
Note 23 - Business Segment Info
Note 23 - Business Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Segment Information | Note 23. Business Segment Information Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters. The Company’s Commercial Banking business is geographically divided by markets into the operating segments which are the four subsidiary banks wholly-owned by the Company: QCBT, CRBT, CSB and SFCB. Each of these operating segments offer similar products and services, but are managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services. The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. Selected financial information on the Company’s business segments, with all intercompany accounts and transactions eliminated, is presented as follows as of and for the years ended December 31, 2020, 2019, and 2018: Commercial Banking Intercompany Consolidated QCBT CRBT CSB SFCB All other Eliminations Total (dollars in thousands) Twelve Months Ended December 31, 2020* Total revenue $ 92,336 $ 125,416 $ 50,448 $ 42,036 $ 2,197 $ (262) $ 312,171 Net interest income 63,366 52,857 31,570 24,759 (6,633) 1,031 166,950 Provision for loan/lease losses 21,612 19,438 9,243 5,411 — — 55,704 Net income (loss) from continuing operations 21,557 33,890 11,379 12,797 (19,041) — 60,582 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 2,189 3,305 5,887 — — 11,381 Total assets 2,149,469 1,952,308 1,000,670 779,956 125,365 (324,971) 5,682,797 Twelve Months Ended December 31, 2019* Total revenue $ 87,433 $ 96,631 $ 42,059 $ 31,569 $ 38,758 $ (1,606) $ 294,844 Net interest income 52,097 44,310 31,370 21,422 6,360 — 155,559 Provision for loan/lease losses 3,433 1,080 679 1,315 559 — 7,066 Net income (loss) from continuing operations 21,607 27,716 10,787 8,244 (10,946) — 57,408 Goodwill 3,223 14,980 9,888 45,975 682 — 74,748 Intangibles — 2,684 3,980 6,802 1,504 — 14,970 Total assets 1,682,477 1,572,324 853,833 748,753 116,968 (65,305) 4,909,050 Twelve Months Ended December 31, 2018* Total revenue $ 77,129 $ 73,208 $ 36,649 $ 15,153 $ 23,152 $ (871) $ 224,420 Net interest income 48,682 43,038 28,763 11,835 10,077 — 142,395 Provision for loan/lease losses 3,693 1,833 1,523 990 4,619 — 12,658 Net income (loss) 20,559 20,680 8,449 4,816 (11,384) — 43,120 Goodwill 3,223 14,980 9,888 45,975 3,766 — 77,832 Intangibles — 3,186 4,675 7,734 1,855 — 17,450 Total assets 1,623,369 1,379,222 785,364 632,849 555,293 (26,387) 4,949,710 * its assets and liabilities. Includes financial results for the Bates Companies for the years October 1, 2018 through December 31, 2018 after the purchase of the companies, the year 2019 and the period from January 1, 2020 through August 12, 2020, prior to the sale of the companies. |
Note 1 - Nature of Business a_2
Note 1 - Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
Basis of presentation | Basis of presentation: The acronyms and abbreviations identified below are used in the Notes to the Consolidated Financial Statements, as well as in the other sections of this Annual Report on Form 10-K (including appendices). It may be helpful to refer back to this page as you read this report. Allowance: Allowance for estimated losses on loans/leases Guaranty Bank: Guaranty Bank and Trust Company AOCI: Accumulated other comprehensive income (loss) IB&T: Illinois Bank & Trust AFS: Available for sale Iowa Superintendent: Iowa Superintendent of Banking ASC: Accounting Standards Codification LCR: Liquidity Coverage Ratio ASC 805: Business Combination Standard LIBOR: London Inter-Bank Offered Rate ASU: Accounting Standards Update LRP: Loan Relief Program Bates Companies: Bates Financial Advisors, Inc., Bates m2: m2 Equipment Finance, LLC Financial Services, Inc., Bates Securities, Inc. and Bates MD&A: Management’s Discussion & Analysis Financial Group, Inc. Missouri Division of Finance: Missouri Department of BBA: British Bankers’ Association Commerce and Insurance BHCA: Bank Holding Company Act of 1956 MSA: Metropolitan Statistical Area BOLI: Bank-owned life insurance NIM: Net interest margin Caps: Interest rate cap derivatives NPA: Nonperforming asset CARES Act: Coronavirus Aid, Relief and Economy Security Act CECL: Current Expected Credit Losses NPL: Nonperforming loan NSFR: Net Stable Funding Ratio OREO: Other real estate owned CFPB: Bureau of Consumer Financial Protection OTTI: Other-than-temporary impairment CDI: Core deposit intangible CNB: Community National Bank PCAOB: Public Company Accounting Oversight Board PCI: Purchased credit impaired Community National: Community National Bancorporation PPP: Paycheck Protection Program COVID-19: Coronavirus Disease 2019 Provision: Provision for loan/lease losses CRA: Community Reinvestment Act PUD LOC: Public Unit Deposit Letter of Credit CRBT: Cedar Rapids Bank & Trust Company QCBT: Quad City Bank & Trust Company CRE: Commercial real estate QCIA: Quad Cities Investment Advisors CRE Guidance: Interagency Concentrations in Commercial RB&T: Rockford Bank & Trust Company Real Estate Lending, Sound Risk Management Practices ROAA: Return on Average Assets guidance ROACE: Return on Average Common Equity CSB: Community State Bank ROAE: Return on Average Equity C&I: Commercial and industrial SBA: U.S. Small Business Administration Dodd-Frank Act: Dodd-Frank Wall Street Reform and SEC: Securities and Exchange Commission Consumer Protection Act SFCB: Springfield First Community Bank DGCL: Delaware General Corporation Law SERPs: Supplemental Executive Retirement Plans DIF: Deposit Insurance Fund Springfield Bancshares: Springfield Bancshares, Inc. EPS: Earnings per share TA: Tangible assets Exchange Act: Securities Exchange Act of 1934, as Tax Act: Tax Cuts and Jobs Act amended TCE: Tangible common equity FASB: Financial Accounting Standards Board TDRs: Troubled debt restructurings FDIC: Federal Deposit Insurance Corporation TEY: Tax equivalent yield Federal Reserve: Board of Governors of the Federal Reserve The Company: QCR Holdings, Inc. System Treasury: U.S. Department of the Treasury FHLB: Federal Home Loan Bank USA Patriot Act: Uniting and Strengthening America by FRB: Federal Reserve Bank of Chicago Providing Appropriate Tools Required to Intercept FTEs: Full-time equivalents and Obstruct Terrorism Act of 2001 GAAP: Generally Accepted Accounting Principles USDA: U.S. Department of Agriculture Goldman Sachs: Goldman Sachs and Company Guaranty: Guaranty Bankshares, Ltd. |
Accounting estimates | Accounting estimates |
Principles of consolidation | Principles of consolidation |
Presentation of cash flows | Presentation of cash flows Cash and due from banks |
Investment securities | Investment securities All debt securities are evaluated to determine whether declines in fair value below their amortized cost are other-than-temporary. In estimating OTTI losses on debt securities, management considers a number of factors including, but not limited to, (1) the length of time and extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, (3) the current market conditions, and (4) the lack of intent of the Company to sell the security prior to recovery and whether it is not more-likely-than-not that it will be required to sell the security prior to recovery. If the Company lacks the intent to sell the debt security, and it is not more-likely-than-not the entity will be required to sell the security before recovery of its amortized cost basis, the Company will recognize the credit component of an OTTI of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion would be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. |
Loans receivable, held for sale | Loans receivable, held for sale |
Loans receivable, held for investment | Loans receivable, held for investment Note 1. Nature of Business and Significant Accounting Policies (continued) The Company discloses the allowance for loan losses (also known as the allowance) by portfolio segment, and credit quality information, impaired financing receivables, nonaccrual status, and TDRs by class of financing receivable. A portfolio segment is the level at which the Company develops and documents a systematic methodology to determine its allowance for loan losses. A class of financing receivable is a further disaggregation of a portfolio segment based on risk characteristics and the Company’s method for monitoring and assessing credit risk. See the following information and Note 4. The Company’s portfolio segments are as follows: ● C&I ● CRE ● Residential real estate ● Installment and other consumer Direct financing leases are considered a segment within the overall loan/lease portfolio. The Company’s classes of loans receivable are as follows: ● C&I ● Owner-occupied CRE ● Commercial construction, land development, and other land loans that re not owner-occupied CRE ● Other non-owner-occupied CRE ● Residential real estate ● Installment and other consumer Direct financing leases are considered a class of financing receivable within the overall loan/lease portfolio. The accounting policies for direct financing leases are disclosed below. Generally, for all classes of loans receivable, loans are considered past due when contractual payments are delinquent for 31 days or greater. For all classes of loans receivable, loans will generally be placed on nonaccrual status when the loan has become 90 days past due (unless the loan is well secured and in the process of collection); or if any of the following conditions exist: ● It becomes evident that the borrower will not make payments, or will not or cannot meet the terms for renewal of a matured loan; ● When full repayment of principal and interest is not expected; ● When the loan is graded “doubtful”; ● When the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future; or ● When foreclosure action is initiated. When a loan is placed on nonaccrual status, income recognition is ceased. Previously recorded but uncollected amounts of interest on nonaccrual loans are reversed at the time the loan is placed on nonaccrual status. Generally, cash collected on nonaccrual loans is applied to principal. Should full collection of principal be expected, cash collected on nonaccrual loans can be recognized as interest income. Note 1. Nature of Business and Significant Accounting Policies (continued) For all classes of loans receivable, nonaccrual loans may be restored to accrual status provided the following criteria are met: ● The loan is current, and all principal and interest amounts contractually due have been made; ● All principal and interest amounts contractually due, including past due payments, are reasonably assured of repayment within a reasonable period; and ● There is a period of minimum repayment performance, as follows, by the borrower in accordance with contractual terms: o Six months of repayment performance for contractual monthly payments, or o One year of repayment performance for contractual quarterly or semi-annual payments. Direct finance leases receivable, held for investment : The Company leases machinery and equipment to customers under leases that qualify as direct financing leases for financial reporting and as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 25% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the lease property delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximate level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Residual value is the estimated fair market value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s estimates are reviewed continuously to ensure reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review results in a lower estimate than had been previously established, a determination is made as to whether the decline in estimated residual value is other-than-temporary. If the decline in estimated unguaranteed residual value is judged to be other-than-temporary, the accounting for the transaction is revised using the changed estimate. The resulting reduction in the investment is recognized as a loss in the period in which the estimate is changed. An upward adjustment of the estimated residual value is not recorded. The policies for delinquency and nonaccrual for direct financing leases are materially consistent with those described above for all classes of loan receivables. The Company defers and amortizes fees and certain incremental direct costs over the contractual term of the lease as an adjustment to the yield. In periods prior to and including December 31, 2018, these initial direct leasing costs approximated 5.5% of the leased asset’s cost. With the adoption of ASU 2016-02 on January 1, 2019, a portion of these costs were expensed instead of deferred. Initial direct leasing costs were 3.2% and 3.9% of the leased asset’s cost in 2020 and 2019, respectively. The unamortized direct costs are recorded as a reduction of unearned lease income. |
Troubled debt restructuring | TDRs Note 1. Nature of Business and Significant Accounting Policies (continued) The following criteria, related to granting a concession, together or separately, create a TDR: ● A modification of terms of a debt such as one or a combination of: o The reduction of the stated interest rate to a rate lower than the current market rate for new debt with similar risk. o The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. o The reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement. o The reduction of accrued interest. ● A transfer from the borrower/lessee to the Company of receivables from third parties, real estate, other assets, or an equity position in the borrower to fully or partially satisfy a loan. ● The issuance or other granting of an equity position to the Company to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. |
Allowance | Allowance For all portfolio segments, the allowance is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans/leases in light of historical experience, the nature and volume of the loan/lease portfolio, adverse situations that may affect the borrower’s/lessee’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. The loan/lease portfolio is reviewed and analyzed quarterly with specific detailed reviews completed on all credits risk-rated less than “fair quality” and carrying aggregate exposure in excess of $250 thousand. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A discussion of the risk characteristics and the allowance by each portfolio segment follows: For C&I loans, the Company focuses on small and mid-sized businesses with primary operations as wholesalers, manufacturers, building contractors, business services companies, other banks, and retailers. The Company provides a wide range of C&I loans, including lines of credit for working capital and operational purposes, and term loans for the acquisition of facilities, equipment and other purposes. Approval is generally based on the following factors: ● Ability and stability of current management of the borrower; ● Stable earnings with positive financial trends; ● Sufficient cash flow to support debt repayment; ● Earnings projections based on reasonable assumptions; ● Financial strength of the industry and business; and ● Value and marketability of collateral. Collateral for C&I loans generally includes accounts receivable, inventory, equipment and real estate. The Company’s lending policy specifies approved collateral types and corresponding maximum advance percentages. The value of collateral pledged on loans must exceed the loan amount by a margin sufficient to absorb potential erosion of its value in the event of foreclosure and cover the loan amount plus costs incurred to convert it to cash. Note 1. Nature of Business and Significant Accounting Policies (continued) The Company’s lending policy specifies maximum term limits for C&I loans. For term loans, the maximum term is generally seven years with average terms ranging from three In addition, the Company often takes personal guarantees or cosigners to help assure repayment. Loans may be made on an unsecured basis if warranted by the overall financial condition of the borrower. CRE loans are subject to underwriting standards and processes similar to C&I loans, in addition to those standards and processes specific to real estate loans. Collateral for CRE loans generally includes the underlying real estate and improvements, and may include additional assets of the borrower. The Company’s lending policy specifies maximum loan-to-value limits based on the category of CRE (CRE loans on improved property, raw land, land development, and commercial construction). These limits are the same limits established by regulatory authorities. The Company’s lending policy also includes guidelines for real estate appraisals, including minimum appraisal standards based on certain transactions. In addition, the Company often takes personal guarantees to help assure repayment. In addition, management tracks the level of owner-occupied CRE loans versus non-owner occupied loans. Owner-occupied loans are generally considered to have less risk. As of December 31, 2020 and 2019, approximately 26% and 26%, respectively, of the CRE loan portfolio was owner-occupied. The Company’s lending policy incorporates regulatory guidelines which stipulate that non-owner occupied CRE lending in excess of 300% of total risk-based capital, and construction, land development, and other land loans in excess of 100% of total risk-based capital warrant the use of heightened risk management practices. As of December 31, 2020 and 2019, QCBT and CRBT were in compliance with these limits. Although CSB’s and SFCB’s loan portfolio have historically been real estate dominated and the real estate portfolio levels at each bank exceed these policy limits, a Credit Risk Committee has been established to routinely monitor their real estate loan portfolios. CSB’s real estate levels, while still elevated at December 31, 2020, have declined since December 31, 2019. In some instances for all loans/leases, it may be appropriate to originate or purchase loans/leases that are exceptions to the guidelines and limits established within the Company’s lending policy described above and below. In general, exceptions to the lending policy do not significantly deviate from the guidelines and limits established within the Company’s lending policy and, if there are exceptions, they are clearly noted as such and specifically identified in loan/lease approval documents. For C&I and CRE loans, the allowance consists of specific and general components. The specific component relates to loans that are classified as impaired, as defined below. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. Note 1. Nature of Business and Significant Accounting Policies (continued) For C&I loans and all classes of CRE loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a case-by-case basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The general component consists of quantitative and qualitative factors and covers non-impaired loans. The quantitative factors are based on historical charge-off experience derived from the Company’s internal risk rating process. See below for a detailed description of the Company’s internal risk rating scale. The qualitative factors are determined based on an assessment of internal and/or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. For C&I and CRE loans, the Company utilizes the following internal risk rating scale: 1. Highest Quality (Pass) – loans of the highest quality with no credit risk, including those fully secured by subsidiary bank certificates of deposit and U.S. government securities. 2. Superior Quality (Pass) – loans with very strong credit quality. Borrowers have exceptionally strong earnings, liquidity, capital, cash flow coverage, and management ability. Includes loans secured by high quality marketable securities, certificates of deposit from other institutions, and cash value of life insurance. Also includes loans supported by U.S. government, state, or municipal guarantees. 3. Satisfactory Quality (Pass) – loans with satisfactory credit quality. Established borrowers with satisfactory financial condition, including credit quality, earnings, liquidity, capital and cash flow coverage. Management is capable and experienced. Collateral coverage and guarantor support, if applicable, are more than adequate. Includes loans secured by personal assets and business assets, including equipment, accounts receivable, inventory, and real estate. 4. Fair Quality (Pass) – loans with moderate but still acceptable credit quality. The primary repayment source remains adequate; however, management’s ability to maintain consistent profitability is unproven or uncertain. Borrowers exhibit acceptable leverage and liquidity. May include new businesses with inexperienced management or unproven performance records in relation to peer, or borrowers operating in highly cyclical or declining industries. 5. Early Warning (Pass) – loans where the borrowers have generally performed as agreed, however unfavorable financial trends exist or are anticipated. Earnings may be erratic, with marginal cash flow or declining sales. Borrowers reflect leveraged financial condition and/or marginal liquidity. Management may be new and a track record of performance has yet to be developed. Financial information may be incomplete, and reliance on secondary repayment sources may be increasing. Note 1. Nature of Business and Significant Accounting Policies (continued) 6. Special Mention – loans where the borrowers exhibit credit weaknesses or unfavorable financial trends requiring close monitoring. Weaknesses and adverse trends are more pronounced than Early Warning loans, and if left uncorrected, may jeopardize repayment according to the contractual terms. Currently, no loss of principal or interest is expected. Borrowers in this category have deteriorated to the point that it would be difficult to refinance with another lender. Special Mention should be assigned to borrowers in turnaround situations. This rating is intended as a transitional rating, therefore, it is generally not assigned to a borrower for a period of more than one year . 7. Substandard – loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if applicable. These loans have a well-defined weakness or weaknesses which jeopardize repayment according to the contractual terms. There is distinct loss potential if the weaknesses are not corrected. Includes loans with insufficient cash flow coverage which are collateral dependent, other real estate owned, and repossessed assets. 8. Doubtful – loans which have all the weaknesses inherent in a Substandard loan, with the added characteristic that existing weaknesses make full principal collection, on the basis of current facts, conditions and values, highly doubtful. The possibility of loss is extremely high, but because of pending factors, recognition of a loss is deferred until a more exact status can be determined. All doubtful loans will be placed on non-accrual, with all payments, including principal and interest, applied to principal reduction The Company has certain loans risk-rated 7 (substandard), which are not classified as impaired based on the facts of the credit. For these non-impaired and risk-rated 7 loans, the Company does not follow the same allowance methodology as it does for all other non-impaired, collectively evaluated loans. Rather, the Company performs a more detailed analysis including evaluation of the cash flow and collateral valuations. Based upon this evaluation, an estimate of the probable loss in this portfolio is collectively evaluated under ASC 450-20. These non-impaired risk-rated 7 loans exist primarily in the C&I and CRE segments. For term C&I and CRE loans greater than $1,000,000, a loan review is required within 15 months of the most recent credit review. The review is completed in enough detail to, at a minimum, validate the risk rating. Additionally, the review shall include an analysis of debt service requirements, covenant compliance, if applicable, and collateral adequacy. The frequency of the review is generally accelerated for loans with poor risk ratings. The Company’s Loan Quality area performs a documentation review of a sampling of C&I and CRE loans, the primary purpose of which is to ensure the credit is properly documented and closed in accordance with approval authorities and conditions. A review is also performed by the Company’s Internal Audit Department of a sampling of C&I and CRE loans for proper documentation, according to an approved schedule. Validation of the risk rating is also part of Internal Audit’s review (performed by Internal Loan Review). Additionally, over the past several years, the Company has contracted an independent outside third party to review a sampling of C&I and CRE loans. Validation of the risk rating is part of this review as well. The Company leases machinery and equipment to C&I customers under direct financing leases. All lease requests are subject to the credit requirements and criteria as set forth in the lending/leasing policy. In all cases, a formal independent credit analysis of the lessee is performed. For direct financing leases, the allowance consists of specific and general components. Note 1. Nature of Business and Significant Accounting Policies (continued) The specific component relates to leases that are classified as impaired, as defined for commercial loans above. For those leases that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired lease is lower than the carrying value of that lease. The general component consists of quantitative and qualitative factors and covers nonimpaired leases. The quantitative factors are based on historical charge-off experience for the entire lease portfolio. The qualitative factors are determined based on an assessment of internal and/or external influences on credit quality that are not fully reflected in the historical loss data. Generally, the Company’s residential real estate loans conform to the underwriting requirements of Freddie Mac and Fannie Mae to allow the subsidiary banks to resell loans in the secondary market. The subsidiary banks structure most loans that will not conform to those underwriting requirements as adjustable rate mortgages that mature or adjust in one The Company provides many types of installment and other consumer loans including motor vehicle, home improvement, home equity, signature loans and small personal credit lines. The Company’s lending policy addresses specific credit guidelines by consumer loan type. For residential real estate loans, and installment and other consumer loans, these large groups of smaller balance homogenous loans are collectively evaluated for impairment. The Company applies a quantitative factor based on historical charge-off experience in total for each of these segments. Accordingly, the Company generally does not separately identify individual residential real estate loans, and/or installment or other consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. TDRs are considered impaired loans/leases and are subject to the same allowance methodology as described above for impaired loans/leases by portfolio segment. Once a loan is classified as a TDR, it will remain a TDR until the loan is paid off, charged off, moved to OREO or restructured into a new note without a concession. TDR status may also be removed if the TDR was restructured in a prior calendar year, is current, accruing interest and shows sustained performance. |
Credit related financial instruments | Credit related financial instruments |
Transfers of financial assets | Transfers of financial assets : Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the assets it received, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a modest benefit to the transferor, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. In addition, for transfers of a portion of financial assets (for example, participations of loan receivables), the transfer must meet the definition of a “participating interest” in order to account for the transfer as a sale. Following are the characteristics of a “participating interest”: ● Pro-rata ownership in an entire financial asset. Note 1. Nature of Business and Significant Accounting Policies (continued) ● From the date of the transfer, all cash flows received from entire financial assets are divided proportionately among the participating interest holders in an amount equal to their share of ownership. ● The rights of each participating interest holder have the same priority, and no participating interest holder’s interest is subordinated to the interest of another participating interest holder. That is, no participating interest holder is entitled to receive cash before any other participating interest holder under its contractual rights as a participating interest holder. ● No party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset. |
Bank owned life insurance | BOLI |
Premises and equipment | Premises and equipment |
Restricted investment securities | Restricted investment securities |
Real estate | OREO |
Repossessed assets | Repossessed assets |
Goodwill | Goodwill In 2019 and prior years, the goodwill evaluation was performed as of September 30 th th th is less than its carrying amount. The Company engaged an external specialist to assess the goodwill at the reporting unit level for the Banks in 2019. As of November 30, 2019, the Company performed an internal assessment of the goodwill for the Bates Companies reporting unit. As a result of this internal assessment, the Company determined an impairment charge of $3 million was required for the Bates Companies reporting unit. See further discussion in Note 6. Based upon internal assessments, there was no impairment recognized during 2018. |
Core deposit intangible | Core deposit intangible Note 1. Nature of Business and Significant Accounting Policies (continued) Customer list intangible Assets and liabilities held for sale |
Swap transactions | Swap transactions |
Derivatives and hedging activities | Derivatives and hedging activities Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying index (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying index. The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market (although this type of derivative is negligible); (2) interest rate caps to manage the interest rate risk of certain variable rate deposits and short-term fixed rate liabilities; and (3) interest rate swaps on variable rate trust preferred securities. Interest rate caps and interest rate swaps are valued by a third party monthly and corroborated by the transaction counterparty. The Company uses the hypothetical derivative method to assess and measure effectiveness in accordance with ASC 815, Derivative and Hedging. |
Preferred stock | Preferred stock |
Stock-based compensation plans | Stock-based compensation plans: As discussed in Note 16, during the years ended December 31, 2020, 2019, and 2018, the Company recognized stock-based compensation expense for the grant-date fair value of stock based awards that are expected to vest over the requisite service period of $2.2 million, $2.5 million and $1.4 million, respectively. As required, management made Note 1. Nature of Business and Significant Accounting Policies (continued) an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option grants with the following assumptions for the indicated periods: 2020 2019 2018 Dividend yield 0.60% to 0.81% 0.67% 0.45% to 0.48% Expected volatility 25.49% to 25.70% 28.28% 29.51% to 29.59% Risk-free interest rate 0.79% to 1.31% 2.90% 2.60% to 2.94% Expected life of option grants 6.25 years 6.25 years 6 years Weighted-average grant date fair value $ 10.07 $ 11.29 $ 14.68 The Company also uses the Black-Scholes option pricing model to estimate the fair value of stock purchase grants with the following assumptions for the indicated periods: 2020 2019 2018 Dividend yield 0.55% to 0.81% 0.69% to 0.75% 0.37% to 0.51% Expected volatility 24.59% to 36.38% 20.15% to 21.06% 20.90% to 21.40% Risk-free interest rate 0.15% to 1.65% 2.02 % to 2.46% 1.59% to 2.22% Expected life of purchase grants 3 to 6 months 3 to 6 months 3 to 6 months Weighted-average grant date fair value $ 6.03 $ 4.81 $ 6.63 The fair value is amortized on a straight-line basis over the vesting periods of the grants and will be adjusted for subsequent changes in estimated forfeitures. The expected dividend yield assumption is based on the Company’s current expectations about its anticipated dividend policy. Expected volatility is based on historical volatility of the Company’s common stock price. The risk-free interest rate for periods within the contractual life of the option or purchase is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of the option and purchase grants is derived using the “simplified” method and represents the period of time that options and purchases are expected to be outstanding. Historical data is used to estimate forfeitures used in the model. Two separate groups of employees (employees subject to broad based grants, and executive employees and directors) are used. As of December 31, 2020, there was $399 thousand of unrecognized compensation cost related to stock options granted, which is expected to be recognized over a weighted average period of 1.59 years. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the 329,736 options that were in-the-money at December 31, 2020. The aggregate intrinsic value at December 31, 2020 was $7.3 million on options outstanding and $7.3 million on options exercisable. During the years ended December 31, 2020, 2019 and 2018, the aggregate intrinsic value of options exercised under the Company’s stock-based compensation was $270 thousand, $303 thousand, and $365 thousand, respectively, and determined as of the date of the option exercise. Restricted stock awards granted may not be sold or otherwise transferred until the service periods have lapsed. During the vesting periods, participants have voting rights and receive dividends. Upon termination of employment, common shares upon which the service periods have not lapsed must be returned to the Company. All restricted share awards are classified as equity awards. The grant-date fair value of equity-classified restricted stock awards is amortized as compensation expense on a straight-line basis over the period restrictions lapse. Note 1. Nature of Business and Significant Accounting Policies (continued) As of December 31, 2020, there was $2.8 million of unrecognized compensation cost related to nonvested restricted stock awards expected to be recognized over a period of 1.9 years. |
Income taxes | Income taxes Deferred income taxes are provided under the liability method whereby deferred tax assets are recognized for deductible temporary differences and net operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. |
Trust assets | Trust assets |
Earnings per share | Earnings per share |
Revenue Recognition | Revenue Recognition: Trust department and Investment advisory and management fees Deposit service fees Note 1. Nature of Business and Significant Accounting Policies (continued) statement cycle period (typically on a monthly basis) or at the time the service is provided, if additional services are requested. Correspondent banking fees: |
Reclassifications | Reclassifications |
Recent accounting developments | Recent accounting developments: In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses . Under the standard, assets measured at amortized cost (including loans, leases and AFS securities) will be presented at the net amount expected to be collected. Rather than the “incurred” model that is currently being utilized, the standard will require the use of a forward-looking approach to recognizing all expected credit losses at the beginning of an asset’s life. For public companies, ASU 2016-13 became effective for fiscal years beginning after December 15, 2019, including items periods within those fiscal years. On March 27, 2020, the CARES Act, a stimulus package designed in response to the economic disruption created by COVID-19, was signed into law. The CARES Act includes provisions that, if elected, temporarily delay the required implementation date of ASU 2016-13. Section 4014 of the CARES Act stipulates that no insured depository institution, bank holding company, or affiliate will be required to comply with ASU 2016-13, beginning on the date of the enactment, March 27, 2020 until the earlier of the two following dates: (1) the date on which the national emergency related to the COVID-19 outbreak is terminated or (2) December 31, 2020. The Company elected to defer its implementation of ASU 2016-13 as allowed by the CARES Act. On December 27, 2020, former President Trump signed the Consolidated Appropriations Act, which extended this relief to the earlier of the first day of the Company’s fiscal year after the date of the national emergency terminates or January 1, 2022. Based upon guidance from regulators it was determined the Company could also adopt on January 1, 2021, and the Company intends to do so. The Company has developed a CECL allowance model which calculates allowances over the life of the loan and is largely driven by portfolio characteristics, risk-grading, economic outlook, and other key methodology assumptions. Those assumptions are based upon the existing probability of default and loss given default framework. The Company will utilize economic and other forecasts over a reasonable and supportable forecast period and then fully revert back to average historical losses. The Company’s credit administration team will periodically refine the model as needed and is running parallel calculations. The Company anticipates increases in the allowance for credit losses on longer dated portfolios and decreases in the shorter dated portfolios. The Company estimates an increase in the allowance for estimated losses on loans/losses in the range of $1 million to $3 million upon adoption of CECL at January 1, 2021. |
Risks and uncertainties | Risks and Uncertainties: Note 1. Nature of Business and Significant Accounting Policies (continued) arts/entertainment/recreation and retail industries will continue to endure significant economic distress, and could adversely affect their ability and willingness to repay existing indebtedness, and could adversely impact the value of collateral pledged to the banks. These developments, together with economic conditions generally, are also expected to impact the Company’s commercial real estate portfolio, particularly with respect to real estate with exposure to these industries, the Company’s equipment leasing business and loan portfolio, the Company’s consumer loan business and loan portfolio, and the value of certain collateral securing the Company’s loans. The Company believes that losses have been incurred that are not yet known and anticipates that its asset quality and results of operations will be adversely affected in the future, as described in further detail on this report. |
Note 1 - Nature of Business a_3
Note 1 - Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Fair value of stock option grants | 2020 2019 2018 Dividend yield 0.60% to 0.81% 0.67% 0.45% to 0.48% Expected volatility 25.49% to 25.70% 28.28% 29.51% to 29.59% Risk-free interest rate 0.79% to 1.31% 2.90% 2.60% to 2.94% Expected life of option grants 6.25 years 6.25 years 6 years Weighted-average grant date fair value $ 10.07 $ 11.29 $ 14.68 2020 2019 2018 Dividend yield 0.55% to 0.81% 0.69% to 0.75% 0.37% to 0.51% Expected volatility 24.59% to 36.38% 20.15% to 21.06% 20.90% to 21.40% Risk-free interest rate 0.15% to 1.65% 2.02 % to 2.46% 1.59% to 2.22% Expected life of purchase grants 3 to 6 months 3 to 6 months 3 to 6 months Weighted-average grant date fair value $ 6.03 $ 4.81 $ 6.63 |
Note 2 - Sales_Mergers_Acquis_2
Note 2 - Sales/Mergers/Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Bates Companies | |
Notes Tables | |
Schedule of assets and liabilities sold | As of August 12, 2020 (dollars in thousands) ASSETS Cash and due from banks $ 349 Premises and equipment, net 19 Other assets 2,259 Total assets sold $ 2,627 LIABILITIES Other liabilities $ 946 Total liabilities sold $ 946 Net assets sold $ 1,681 Cash consideration $ 195 Forgiveness of earn-out consideration 880 Note receivable consideration 448 Loss on sale of subsidiary $ 158 |
Unaudited pro forma combined operating results | For the Year Ended December 31, 2018 (dollars in thousands, except per share data) Net interest income $ 142,368 Noninterest income $ 44,455 Net income $ 44,032 Earnings per common share: Basic $ 2.98 Diluted $ 2.92 |
RB&T | |
Notes Tables | |
Schedule of assets and liabilities sold | As of 11/30/2019 (dollars in thousands) ASSETS Cash and due from banks $ 3,973 Interest-bearing deposits at financial institutions 55,291 Securities held to maturity, at amortized cost 3,243 Securities available for sale, at fair value 21,874 Loans/leases receivable held for investment, net 357,931 Premises and equipment, net 5,612 Restricted investment securities 675 Other real estate owned, net 2,134 Other assets 3,228 Total assets acquired $ 453,961 LIABILITIES Noninterest-bearing deposits $ 69,802 Interest-bearing deposits 331,486 Short-term borrowings 1,158 FHLB advances 15,000 Other liabilities 2,241 Total liabilities assumed $ 419,687 Net assets sold $ 34,274 Cash consideration received $ 46,560 Gain on sale of assets and liabilities $ 12,286 |
Springfield Bancshares | |
Notes Tables | |
Fair values of the assets acquired and liabilities assumed | As of July 1, 2018 (dollars in thousands) ASSETS Cash and due from banks $ 4,586 Interest-bearing deposits at financial institutions 62,924 Securities 4,845 Loans/leases receivable, net 477,337 Bank-owned life insurance 7,092 Premises and equipment 6,092 Restricted investment securities 3,654 Intangibles 8,209 Other assets 1,471 Total assets acquired $ 576,210 LIABILITIES Deposits $ 439,579 Short-term borrowings 1,143 FHLB advances 74,539 Other borrowings 9,544 Other liabilities 8,409 Total liabilities assumed $ 533,214 Net assets acquired $ 42,996 CONSIDERATION PAID: Cash $ 8,334 Common stock 80,637 Total consideration paid $ 88,971 Goodwill $ 45,975 |
Summary of purchased loans | PCI Performing Loans Loans Total (dollars in thousands) Contractually required principal payments $ 7,553 $ 479,440 $ 486,993 Nonaccretable discount (1,563) — (1,563) Principal cash flows expected to be collected $ 5,990 $ 479,440 $ 485,430 Accretable discount (293) (7,800) (8,093) Fair Value of acquired loans $ 5,697 $ 471,640 $ 477,337 |
Changes in accretable yield for acquired loans | Year ended December 31, 2020 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (51) $ (3,524) $ (3,575) Reclassification of nonaccretable discount to accretable (512) — (512) Accretion recognized 563 2,048 2,611 Balance at the end of the period $ — $ (1,476) $ (1,476) For the year ended December 31, 2019 PCI Performing Loans Loans Total Balance at the beginning of the period $ (659) $ (5,849) $ (6,508) Reclassification of nonaccretable discount to accretable (159) — (159) Accretion recognized 767 2,325 3,092 Balance at the end of the period $ (51) $ (3,524) $ (3,575) For the year ended December 31, 2018 PCI Performing Loans Loans Total Balance at the beginning of the period $ — $ — $ — Discount added at acquisition (293) (7,800) (8,093) Reclassification of nonaccretable discount to accretable (892) — (892) Accretion recognized 526 1,951 2,477 Balance at the end of the period $ (659) $ (5,849) $ (6,508) |
Unaudited pro forma combined operating results | For the Year Ended December 31, 2018 (dollars in thousands, except per share data) Net interest income $ 153,229 Noninterest income $ 42,538 Net income $ 49,542 Earnings per common share: Basic $ 3.17 Diluted $ 3.11 |
Note 3 - Investment Securities
Note 3 - Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Amortized cost and fair value of investment securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 475,115 $ 45,360 $ (248) $ 520,227 Other securities 1,050 — — 1,050 $ 476,165 $ 45,360 $ (248) $ 521,277 Securities AFS: U.S. govt. sponsored agency securities $ 14,936 $ 447 $ (47) $ 15,336 Residential mortgage-backed and related securities 127,670 5,510 (338) 132,842 Municipal securities 147,241 5,215 (48) 152,408 Asset-backed securities 39,663 1,111 (91) 40,683 Other securities 20,550 147 — 20,697 $ 350,060 $ 12,430 $ (524) $ 361,966 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value (dollars in thousands) December 31, 2019: Securities HTM: Municipal securities $ 399,596 $ 26,042 $ (143) $ 425,495 Other securities 1,050 — — 1,050 $ 400,646 $ 26,042 $ (143) $ 426,545 Securities AFS: U.S. govt. sponsored agency securities $ 19,872 $ 283 $ (77) $ 20,078 Residential mortgage-backed and related securities 118,724 2,045 (182) 120,587 Municipal securities 46,659 1,602 (4) 48,257 Asset-backed securities 16,958 — (71) 16,887 Other securities 4,749 138 (1) 4,886 $ 206,962 $ 4,068 $ (335) $ 210,695 |
Securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2020: Securities HTM: Municipal securities $ 8,407 $ (248) $ — $ — $ 8,407 $ (248) Securities AFS: U.S. govt. sponsored agency securities $ 3,199 $ (47) $ — $ — $ 3,199 $ (47) Residential mortgage-backed and related securities 37,549 (338) — — 37,549 (338) Municipal securities 10,110 (48) — — 10,110 (48) Asset-backed securities 6,884 (52) 9,945 (39) 16,829 (91) $ 57,742 $ (485) $ 9,945 $ (39) $ 67,687 $ (524) Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) December 31, 2019: Securities HTM: Municipal securities $ 509 $ (1) $ 10,047 $ (142) $ 10,556 $ (143) Securities AFS: U.S. govt. sponsored agency securities $ 1,431 $ (21) $ 2,117 $ (56) $ 3,548 $ (77) Residential mortgage-backed and related securities 2,263 (17) 17,862 (165) 20,125 (182) Municipal securities — — 724 (4) 724 (4) Asset-backed securities 16,886 (71) — — 16,886 (71) Other securities 249 (1) — — 249 (1) $ 20,829 $ (110) $ 20,703 $ (225) $ 41,532 $ (335) |
Realized gain (loss) on investments | 2020 2019 2018 (dollars in thousands) Proceeds from sales of securities $ 38,562 $ 30,055 $ 1,938 Gross gains from sales of securities 2,553 176 — Gross losses from sales of securities (69) (206) — |
Investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 3,417 $ 3,443 Due after one year through five years 34,396 35,103 Due after five years 438,352 482,731 $ 476,165 $ 521,277 Securities AFS: Due in one year or less $ 2,369 $ 2,373 Due after one year through five years 13,970 14,328 Due after five years 166,388 171,740 182,727 188,441 Residential mortgage-backed and related securities 127,670 132,842 Asset-backed securities 39,663 40,683 $ 350,060 $ 361,966 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 227,773 $ 236,134 Securities AFS: Municipal securities 138,688 143,536 Other securities 6,500 6,647 $ 145,188 $ 150,183 |
Note 4 - Loans_Leases Receiva_2
Note 4 - Loans/Leases Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Composition of the loan/lease portfolio | 2020 2019 (dollars in thousands) C&I loans* $ 1,726,723 $ 1,507,825 CRE loans Owner-occupied CRE 496,471 443,989 Commercial construction, land development, and other land 541,455 378,797 Other non owner-occupied CRE 1,069,703 913,610 2,107,629 1,736,396 Direct financing leases ** 66,016 87,869 Residential real estate loans *** 252,121 239,904 Installment and other consumer loans 91,302 109,352 4,243,791 3,681,346 Plus deferred loan/lease origination costs, net of fees 7,338 8,859 4,251,129 3,690,205 Less allowance (84,376) (36,001) $ 4,166,753 $ 3,654,204 ** Direct financing leases: Net minimum lease payments to be received $ 72,940 $ 97,025 Estimated unguaranteed residual values of leased assets 239 547 Unearned lease/residual income (7,163) (9,703) 66,016 87,869 Plus deferred lease origination costs, net of fees 1,072 1,892 67,088 89,761 Less allowance (1,764) (1,464) $ 65,324 $ 88,297 * Includes equipment financing agreements outstanding at m2, totaling $171.5 million and $142.0 million as of December 31, 2020 and 2019, respectively. ** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors and management’s expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The large majority of leases with residual values contain a lease options rider which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. ***Includes residential real estate loans held for sale totaling $3.8 million and $3.7 million as of December 31, 2020 and 2019, respectively. |
Changes in accretable yield for acquired loans | For the year ended December 31, 2020 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (57) $ (6,378) $ (6,435) Reclassification of nonaccretable discount to accretable (530) — (530) Reclassification of nonaccretable discount to allowance — 353 353 Accretion recognized 587 2,886 3,473 Balance at the end of the period $ — $ (3,139) $ (3,139) For the year ended December 31, 2019 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (667) $ (10,127) $ (10,794) Reclassification of nonaccretable discount to accretable (275) — (275) Accretion recognized 885 3,749 4,634 Balance at the end of the period $ (57) $ (6,378) $ (6,435) For the year ended December 31, 2018 PCI Performing Loans Loans Total (dollars in thousands) Balance at the beginning of the period $ (191) $ (6,280) $ (6,471) Discount added at acquisition (293) (7,800) (8,093) Reclassification of nonaccretable discount to accretable (892) (470) (1,362) Accretion recognized 709 4,423 5,132 Balance at the end of the period $ (667) $ (10,127) $ (10,794) |
Aging of the loan/lease portfolio by classes of loans/leases | 2020 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,720,058 $ 1,535 $ 323 $ — $ 4,807 $ 1,726,723 CRE Owner-Occupied CRE 496,459 — — — 12 496,471 Commercial Construction, Land Development, and Other Land 541,455 — — — — 541,455 Other Non Owner-Occupied CRE 1,062,215 — — — 7,488 1,069,703 Direct Financing Leases 64,918 501 191 — 406 66,016 Residential Real Estate 249,364 1,512 223 — 1,022 252,121 Installment and Other Consumer 91,047 43 4 3 205 91,302 $ 4,225,516 $ 3,591 $ 741 $ 3 $ 13,940 $ 4,243,791 As a percentage of total loan/lease portfolio 99.57 % 0.08 % 0.02 % 0.00 % 0.33 % 100.00 % 2019 Accruing Past 30-59 Days 60-89 Days Due 90 Days or Nonaccrual Classes of Loans/Leases Current Past Due Past Due More Loans/Leases Total (dollars in thousands) C&I $ 1,499,891 $ 6,126 $ 572 $ — $ 1,236 $ 1,507,825 CRE Owner-Occupied CRE 443,707 177 71 — 34 443,989 Commercial Construction, Land Development, and Other Land 375,940 2,857 — — — 378,797 Other Non Owner-Occupied CRE 909,684 73 — — 3,853 913,610 Direct Financing Leases 85,636 463 253 — 1,517 87,869 Residential Real Estate 235,845 2,939 414 — 706 239,904 Installment and Other Consumer 108,750 3 10 33 556 109,352 $ 3,659,453 $ 12,638 $ 1,320 $ 33 $ 7,902 $ 3,681,346 As a percentage of total loan/lease portfolio 99.41 % 0.34 % 0.04 % 0.00 % 0.21 % 100.00 % |
NPLs by classes of loans/leases | 2020 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More Loans/Leases * Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 4,807 $ 606 $ 5,413 36.87 % CRE Owner-Occupied CRE — 12 — 12 0.08 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 7,488 — 7,488 50.99 % Direct Financing Leases — 406 135 541 3.68 % Residential Real Estate — 1,022 — 1,022 6.96 % Installment and Other Consumer 3 205 — 208 1.42 % $ 3 $ 13,940 $ 741 $ 14,684 100.00 % * 2019 Accruing Past Due 90 Days or Nonaccrual Percentage of Classes of Loans/Leases More Loans/Leases * Accruing TDRs Total NPLs Total NPLs (dollars in thousands) C&I $ — $ 1,236 $ 646 $ 1,882 21.12 % CRE Owner-Occupied CRE — 34 — 34 0.38 % Commercial Construction, Land Development, and Other Land — — — — - % Other Non Owner-Occupied CRE — 3,853 — 3,853 43.22 % Direct Financing Leases — 1,517 333 1,850 20.75 % Residential Real Estate — 706 — 706 7.92 % Installment and Other Consumer 33 556 — 589 6.61 % $ 33 $ 7,902 $ 979 $ 8,914 100.00 % * At December 31, 2019, accruing past due 90 days or more included $747 thousand of TDRs, including $98 thousand in C&I loans and $269 thousand in CRE loans, installment loans. |
Allowance for credit losses on financing receivables | Changes in the allowance by portfolio segment for the years ended December 31, 2020, 2019, and 2018 are presented as follows: Year Ended December 31, 2020 Direct Financing Residential Real C&I CRE Leases Estate Consumer Total (dollars in thousands) Balance, beginning $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Provisions charged to expense 22,899 28,671 2,148 1,755 231 55,704 Loans/leases charged off (4,199) (2,071) (1,993) — (120) (8,383) Recoveries on loans/leases previously charged off 649 182 145 29 49 1,054 Balance, ending $ 35,421 $ 42,161 $ 1,764 $ 3,732 $ 1,298 $ 84,376 Year Ended December 31, 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Reclassification of allowance related to held for sale assets (2,814) (2,392) — (628) (288) (6,122) Provisions (credits) charged to expense* 3,666 1,566 1,129 163 114 6,638 Loans/leases charged off (1,476) (1,722) (1,647) (191) (98) (5,134) Recoveries on loans/leases previously charged off 276 208 190 47 51 772 Balance, ending $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 *Excludes provision related to loans included in assets held for sale during the year of $428 thousand for the year ending December 31, 2019. Year Ended December 31, 2018 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Balance, beginning $ 14,323 $ 13,963 $ 2,382 $ 2,466 $ 1,222 $ 34,356 Provisions charged to expense 7,161 4,094 1,068 193 142 12,658 Loans/leases charged off (5,359) (387) (2,002) (127) (44) (7,919) Recoveries on loans/leases previously charged off 295 49 344 25 39 752 Balance, ending $ 16,420 $ 17,719 $ 1,792 $ 2,557 $ 1,359 $ 39,847 Note 4. Loans/Leases Receivable (continued) The allowance by impairment evaluation and by portfolio segment as of December 31, 2020 and 2019 is presented as follows: 2020 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 650 $ 1,938 $ — $ 20 $ 72 $ 2,680 Allowance for nonimpaired loans/leases 34,771 40,223 1,764 3,712 1,226 81,696 $ 35,421 $ 42,161 $ 1,764 $ 3,732 $ 1,298 $ 84,376 Impaired loans/leases $ 5,381 $ 7,487 $ 578 $ 977 $ 205 $ 14,628 Nonimpaired loans/leases 1,721,342 2,100,142 65,438 251,144 91,097 4,229,163 $ 1,726,723 $ 2,107,629 $ 66,016 $ 252,121 $ 91,302 $ 4,243,791 Allowance as a percentage of impaired loans/leases 12.08 % 25.88 % — % 2.05 % 35.12 % 18.32 % Allowance as a percentage of nonimpaired loans/leases 2.02 % 1.92 % 2.70 % 1.48 % 1.35 % 1.93 % Total allowance as a percentage of total loans/leases 2.05 % 2.00 % 2.67 % 1.48 % 1.42 % 1.99 % 2019 Direct Financing Residential Real Installment and C&I CRE Leases Estate Other Consumer Total (dollars in thousands) Allowance for impaired loans/leases $ 170 $ 125 $ 270 $ 15 $ 80 $ 660 Allowance for nonimpaired loans/leases 15,902 15,254 1,194 1,933 1,058 35,341 $ 16,072 $ 15,379 $ 1,464 $ 1,948 $ 1,138 $ 36,001 Impaired loans/leases $ 1,846 $ 3,585 $ 2,025 $ 649 $ 556 $ 8,661 Nonimpaired loans/leases 1,505,979 1,732,811 85,844 239,255 108,796 3,672,685 $ 1,507,825 $ 1,736,396 $ 87,869 $ 239,904 $ 109,352 $ 3,681,346 Allowance as a percentage of impaired loans/leases 9.21 % 3.49 % 13.33 % 2.31 % 14.39 % 7.62 % Allowance as a percentage of nonimpaired loans/leases 1.06 % 0.88 % 1.39 % 0.81 % 0.97 % 0.96 % Total allowance as a percentage of total loans/leases 1.07 % 0.89 % 1.67 % 0.81 % 1.04 % 0.98 % |
Impaired financing receivables | 2020 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,361 $ 1,441 $ — $ 1,002 $ 33 $ 33 CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 1,133 1,933 — 494 29 29 Direct Financing Leases 578 578 — 483 17 17 Residential Real Estate 719 719 — 476 — — Installment and Other Consumer 133 133 — 121 — — $ 3,924 $ 4,804 $ — $ 2,576 $ 79 $ 79 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 4,020 $ 4,020 $ 650 $ 1,555 $ — $ — CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 6,354 6,354 1,938 5,726 — — Direct Financing Leases — — — — — — Residential Real Estate 258 258 20 227 — — Installment and Other Consumer 72 72 72 70 — — $ 10,704 $ 10,704 $ 2,680 $ 7,578 $ — $ — Total Impaired Loans/Leases: C&I $ 5,381 $ 5,461 $ 650 $ 2,557 $ 33 $ 33 CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 7,487 8,287 1,938 6,220 29 29 Direct Financing Leases 578 578 — 483 17 17 Residential Real Estate 977 977 20 703 — — Installment and Other Consumer 205 205 72 191 — — $ 14,628 $ 15,508 $ 2,680 $ 10,154 $ 79 $ 79 Note 4. Loans/Leases Receivable (continued) 2019 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,607 $ 1,647 $ — $ 970 $ 27 $ 27 CRE Owner-Occupied CRE 34 50 — 24 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 684 686 — 738 29 29 Direct Financing Leases 1,642 1,642 — 1,322 30 30 Residential Real Estate 469 614 — 481 — — Installment and Other Consumer 476 476 — 474 — — $ 4,912 $ 5,115 $ — $ 4,009 $ 86 $ 86 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 239 $ 239 $ 170 $ 124 $ — $ — CRE Owner-Occupied CRE — — — — — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 2,867 2,867 125 1,958 — — Direct Financing Leases 383 383 270 196 2 2 Residential Real Estate 180 180 15 72 — — Installment and Other Consumer 80 80 80 62 — — $ 3,749 $ 3,749 $ 660 $ 2,412 $ 2 $ 2 Total Impaired Loans/Leases: C&I $ 1,846 $ 1,886 $ 170 $ 1,094 $ 27 $ 27 CRE Owner-Occupied CRE 34 50 — 24 — — Commercial Construction, Land Development, and Other Land — — — — — — Other Non Owner-Occupied CRE 3,551 3,553 125 2,696 29 29 Direct Financing Leases 2,025 2,025 270 1,518 32 32 Residential Real Estate 649 794 15 553 — — Installment and Other Consumer 556 556 80 536 — — $ 8,661 $ 8,864 $ 660 $ 6,421 $ 88 $ 88 Note 4. Loans/Leases Receivable (continued) 2018 Interest Income Average Recognized for Recorded Unpaid Principal Related Recorded Interest Income Cash Payments Classes of Loans/Leases Investment Balance Allowance Investment Recognized Received (dollars in thousands) Impaired Loans/Leases with No Specific Allowance Recorded: C&I $ 1,846 $ 4,540 $ — $ 2,346 $ 210 $ 210 CRE Owner-Occupied CRE 106 106 — 107 — — Commercial Construction, Land Development, and Other Land 507 507 — 101 — — Other Non Owner-Occupied CRE 1,804 1,804 — 540 — — Direct Financing Leases 1,929 1,929 — 2,193 60 60 Residential Real Estate 984 1,058 — 723 9 9 Installment and Other Consumer 762 762 — 198 — — $ 7,938 $ 10,706 $ — $ 6,208 $ 279 $ 279 Impaired Loans/Leases with Specific Allowance Recorded: C&I $ 2,653 $ 2,653 $ 973 $ 1,118 $ 43 $ 43 CRE Owner-Occupied CRE 304 660 39 177 — — Commercial Construction, Land Development, and Other Land 149 149 33 159 — — Other Non Owner-Occupied CRE 7,577 7,577 2,052 3,055 58 58 Direct Financing Leases 320 320 194 273 — — Residential Real Estate 1,126 1,126 257 553 12 12 Installment and Other Consumer 136 136 111 125 — — $ 12,265 $ 12,621 $ 3,659 $ 5,460 $ 113 $ 113 Total Impaired Loans/Leases: C&I $ 4,499 $ 7,193 $ 973 $ 3,464 $ 253 $ 253 CRE Owner-Occupied CRE 410 766 39 284 — — Commercial Construction, Land Development, and Other Land 656 656 33 260 — — Other Non Owner-Occupied CRE 9,381 9,381 2,052 3,595 58 58 Direct Financing Leases 2,249 2,249 194 2,466 60 60 Residential Real Estate 2,110 2,184 257 1,276 21 21 Installment and Other Consumer 898 898 111 323 — — $ 20,203 $ 23,327 $ 3,659 $ 11,668 $ 392 $ 392 |
Financing receivable credit quality indicators | 2020 CRE Non-Owner Occupied Commercial Construction, Internally Assigned Land Risk Rating Owner-Occupied Development, As a % of C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,506,578 $ 488,478 $ 530,297 $ 999,931 $ 3,525,284 96 % Special Mention (Rating 6) 23,929 3,087 680 43,785 71,481 1.95 Substandard (Rating 7) 24,710 4,906 10,478 25,987 66,081 1.80 Doubtful (Rating 8) — — — — — — Total $ 1,555,217 $ 496,471 $ 541,455 $ 1,069,703 $ 3,662,846 100.00 % 2019 CRE Non-Owner Occupied Commercial Construction, Land Owner-Occupied Development, As a % of Internally Assigned Risk Rating C&I CRE and Other Land Other CRE Total Total (dollars in thousands) Pass (Ratings 1 through 5) $ 1,334,446 $ 439,418 $ 378,572 $ 896,206 $ 3,048,642 98.28 % Special Mention (Rating 6) 12,962 3,044 41 3,905 19,952 0.64 % Substandard (Rating 7) 18,439 1,527 184 13,499 33,649 1.08 % Doubtful (Rating 8) — — — — — — % $ 1,365,847 $ 443,989 $ 378,797 $ 913,610 $ 3,102,243 100.00 % |
Financing receivable credit quality indicators performance status | 2020 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 170,712 $ 65,475 $ 251,099 $ 91,094 $ 578,380 99.56 % Nonperforming 794 541 1,022 208 2,565 0.44 $ 171,506 $ 66,016 $ 252,121 $ 91,302 $ 580,945 100.00 % 2019 Direct Financing Residential Real Installment and As a % of Delinquency Status * C&I Leases Estate Other Consumer Total Total (dollars in thousands) Performing $ 140,992 $ 86,019 $ 239,198 $ 108,763 $ 574,972 99.29 % Nonperforming 986 1,850 706 589 4,131 0.71 % $ 141,978 $ 87,869 $ 239,904 $ 109,352 $ 579,103 100.00 % * Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings. |
Number and recorded investment of TDRs, by type of concession | 2020 Pre- Post- Modification Modification Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C&I 1 $ 75 $ 75 $ — Direct Financing Leases 2 112 112 — 3 $ 187 $ 187 $ — CONCESSION - Extension of Maturity CRE Other 1 $ 835 $ 835 $ — TOTAL 4 $ 1,022 $ 1,022 $ — 2019 Pre- Post- Modification Modification Number of Recorded Recorded Specific Classes of Loans/Leases Loans / Leases Investment Investment Allowance (dollars in thousands) CONCESSION - Significant Payment Delay C & I 3 $ 112 $ 112 $ — Direct Financing Leases 10 388 388 35 13 $ 500 $ 500 $ 35 CONCESSION - Forgiveness of Principal C & I 1 $ 587 $ 537 $ — CONCESSION - Extension of Maturity Installment and Other Consumer 1 $ 56 $ 56 $ 54 TOTAL 15 $ 1,143 $ 1,093 $ 89 |
Analysis of changes in aggregated amounts of loans | 2020 2019 2018 (dollars in thousands) Balance, beginning $ 112,830 $ 125,496 $ 66,442 Net increase (decrease) due to change in related parties (1,601) (12,161) 41,797 Advances 43,238 98,708 43,453 Repayments (54,106) (99,213) (26,196) Balance, ending $ 100,361 $ 112,830 $ 125,496 |
Loan concentration by segment | 2020 2019 Percentage of Percentage of Total Total Industry Name Balance Loans/Leases Balance Loans/Leases (dollars in thousands) Lessors of Residential Buildings $ 1,134,178 27 % $ 745,770 22 % Lessors of Non-Residential Buildings 591,398 14 % 574,058 17 % Administration of Urban Planning & Community & Rural Development 138,514 3 % 133,157 4 % |
Note 5 - Premises and Equipme_2
Note 5 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Components of premises and equipment | 2020 2019 (dollars in thousands) Land $ 13,403 $ 13,632 Buildings (useful lives 15 to 50 years) 67,844 66,070 Furniture and equipment (useful lives 3 to 10 years) 42,667 40,228 Premises and equipment 123,914 119,930 Less accumulated depreciation 51,221 46,071 Premises and equipment, net $ 72,693 $ 73,859 |
Maturities of operating lease liabilities | Amount Year ending December 31: (dollars in thousands) 2021 323 2022 256 2023 200 2024 144 2025 153 Thereafter 703 $ 1,779 |
Contractual maturities of sales-type and direct financing lease receivables | Amount Year ending December 31: (dollars in thousands) 2021 3,879 2022 14,983 2023 21,059 2024 17,248 2025 14,780 Thereafter 991 Total lease payments receivable $ 72,940 Unguaranteed residual values 239 Unearned lease/residual income (7,163) $ 66,016 Plus deferred origination costs, net of fees 1,072 $ 67,088 Less allowance (1,764) Total lease payments receivable $ 65,324 |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Changes in carrying amount of goodwill | 2020 2019 2018 (dollars in thousands) Balance at the beginning of period $ 74,748 $ 77,832 $ 28,334 Merger with Springfield Bancshares — — 45,975 Acquisition of Bates Companies — — 3,766 Acquisition of Guaranty Bank - measurement period adjustment — — (243) Acquisition of Bates Companies - measurement period adjustment — (84) — Sale of Bates Companies (182) — — Goodwill impairment - Bates Companies (500) (3,000) — Balance at the end of period $ 74,066 $ 74,748 $ 77,832 |
Schedule of goodwill by reportable segment | December 31, 2020 December 31, 2019 December 31, 2018 (dollars in thousands) Commercial banking: QCBT $ 3,223 $ 3,223 $ 3,223 CRBT 14,980 14,980 14,980 CSB 9,888 9,888 9,888 SFCB 45,975 45,975 45,975 Other, Parent Company Only — 682 3,766 $ 74,066 $ 74,748 $ 77,832 |
Schedule of core deposit intangibles by reportable segment | December 31, 2020 December 31, 2019 December 31, 2018 (dollars in thousands) Commercial Banking: CRBT $ 2,189 $ 2,684 $ 3,186 CSB 3,305 3,980 4,675 SFCB 5,887 6,802 7,734 $ 11,381 $ 13,466 $ 15,595 |
Core Deposits [Member] | |
Notes Tables | |
Changes in Intangibles | 2020 2019 2018 (dollars in thousands) Balance at the beginning of the period $ 13,466 $ 15,595 $ 9,079 Merger with Springfield Bancshares — — 8,208 Amortization expense (2,085) (2,129) (1,692) Balance at the end of the period $ 11,381 $ 13,466 $ 15,595 Gross carrying amount $ 19,255 $ 19,255 $ 19,255 Accumulated amortization (7,874) (5,789) (3,660) Net book value $ 11,381 $ 13,466 $ 15,595 |
Estimated amortization of intangible assets | Amount Years ending December 31, (dollars in thousands) 2021 $ 2,032 2022 1,971 2023 1,776 2024 1,623 2025 1,535 Thereafter 2,444 $ 11,381 |
Customer Lists [Member] | |
Notes Tables | |
Changes in Intangibles | 2020 2019 (dollars in thousands) Balance at the beginning of period $ 1,504 $ 1,855 Acquisition of Bates Companies - measurement period adjustment — (214) Sale of Bates Companies (1,440) — Amortization (64) (137) Balance at the end of period — 1,504 |
Note 7 - Derivatives and Hedg_2
Note 7 - Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Summary of derivatives | 2020 2019 (dollars in thousands) Assets: Interest rate caps - hedged $ 259 $ 3,148 Interest rate caps 67 — Interest rate swaps 222,431 84,679 $ 222,757 $ 87,827 Liabilities: Interest rate swaps - hedged $ (6,839) $ (3,758) Interest rate swaps (222,431) (84,679) $ (229,270) $ (88,437) |
Summary of impact of AOCI | Year Ended December 31, 2020 December 31, 2019 (dollars in thousands) Unrealized loss at beginning of period, net of tax $ (3,915) $ (1,276) Amount reclassified from accumulated other comprehensive income to noninterest expense related to unhedging caplet 513 — Amount reclassified from accumulated other comprehensive income to noninterest expense related to swap termination 625 — Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization 551 422 Amount of loss recognized in other comprehensive income, net of tax (5,406) (3,061) Unrealized loss at end of period, net of tax $ (7,632) $ (3,915) |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | December 31, 2020 December 31, 2019 (dollars in thousands) Cash $ 45,719 $ — U.S govt. sponsored agency securities 3,628 3,541 Municipal securities 85,937 22,924 Residential mortgage-backed and related securities 89,646 72,090 $ 224,930 $ 98,555 |
Interest rate cap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate December 31, 2020 December 31, 2019 (dollars in thousands) Deposits 1/1/2020 1/1/2023 Other Assets $ 25,000 1.75 % $ 3 $ 112 Deposits 1/1/2020 1/1/2023 Other Assets 50,000 1.57 5 218 Deposits 1/1/2020 1/1/2023 Other Assets 25,000 1.80 3 109 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.75 15 214 Deposits 1/1/2020 1/1/2024 Other Assets 50,000 1.57 31 401 Deposits 1/1/2020 1/1/2024 Other Assets 25,000 1.80 15 201 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.75 46 337 Deposits 1/1/2020 1/1/2025 Other Assets 50,000 1.57 94 617 Deposits 1/1/2020 1/1/2025 Other Assets 25,000 1.80 47 309 $ 300,000 $ 259 $ 2,518 |
Changes in the fair value of the underlying derivative contracts | Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate December 31, 2020 December 31, 2019 (dollars in thousands) 1/1/2020 1/1/2023 Other Assets $ 25,000 1.90 % $ 2 $ 96 2/1/2020 2/1/2024 Other Assets 25,000 1.90 15 202 3/1/2020 3/1/2025 Other Assets 25,000 1.90 50 332 $ 75,000 $ 67 $ 630 |
Interest rate swap | |
Notes Tables | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate December 31, 2020 December 31, 2019 (dollars in thousands) QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Liabilities 10,000 3.10 % 5.85 % (1,767) (971) QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Liabilities 8,000 3.10 % 5.85 % (1,414) (777) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Liabilities 10,000 1.79 % 4.54 % (1,721) (944) Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Liabilities 3,000 2.41 % 5.17 % (529) (291) Community National Statutory Trust III 9/15//2018 9/15/2028 Derivatives - Liabilities 3,500 1.97 % 4.75 % (616) (339) Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Liabilities 4,500 1.97 % 4.75 % (792) (436) $ 39,000 2.48 % 5.24 % $ (6,839) $ (3,758) |
Changes in the fair value of the underlying derivative contracts | December 31, 2020 December 31, 2019 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 1,539,602 $ 222,431 $ 787,221 $ 84,679 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 1,539,602 $ 222,431 $ 787,221 $ 84,679 |
Note 8 - Deposits (Tables)
Note 8 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of maturities of certificates of deposit | Amount Year ending December 31: (dollars in thousands) 2021 $ 228,257 2022 61,450 2023 13,648 2024 12,684 2025 7,795 Thereafter 136,825 $ 460,659 |
Schedules of collateralized investment securities | 2020 2019 (dollars in thousands) U.S. govt. sponsored agency securities $ 3,668 $ 6,135 Residential mortgage-backed and related securities 4,772 3,782 $ 8,440 $ 9,917 |
Note 9 - Short-term Borrowings
Note 9 - Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Short-term borrowings | 2020 2019 (dollars in thousands) Overnight repurchase agreements with customers $ — $ 2,193 Federal funds purchased 5,430 11,230 $ 5,430 $ 13,423 |
Schedule of repurchase agreements | 2020 2019 (dollars in thousands) Average daily balance $ 1,495 $ 4,231 Average daily interest rate 0.40 % 0.73 % Maximum month-end balance $ 2,377 $ 4,177 Weighted average rate as of December 31 — % 1.00 % 2020 2019 (dollars in thousands) Average daily balance $ 19,573 $ 12,594 Average daily interest rate 0.36 % 2.56 % Maximum month-end balance $ 30,430 $ 17,010 Weighted average rate as of December 31 0.06 % 1.50 % |
Securities Sold under Agreements to Repurchase [Member] | |
Notes Tables | |
Schedule of repurchase agreements collateralized by investment securities | 2020 2019 (dollars in thousands) U.S. govt. sponsored agency securities $ — $ 1,964 Residential mortgage-backed and related securities 517 1,456 Total securities pledged to overnight customer repurchase agreements 517 3,420 Less: overcollateralized position 517 1,227 $ — $ 2,193 |
Note 10 - FHLB Advances (Tables
Note 10 - FHLB Advances (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of maturity and interest rate information on advances | December 31, 2020 December 31, 2019 Weighted Weighted Average Average Interest Rate Interest Rate Amount Due at Year-End Amount Due at Year-End (dollars in thousands) Maturity: Year ending December 31: 2020 $ — — % $ 110,900 1.73 % 2021 15,000 0.29 5,000 1.55 2022 — — 23,400 1.73 2023 — — 20,000 1.84 2024 — — — — Total FHLB advances $ 15,000 0.29 % $ 159,300 1.74 % |
Note 11 - Other Borrowings an_2
Note 11 - Other Borrowings and Unused Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Wholesale structured repurchase agreements | |
Notes Tables | |
Schedule of unused line of credit | 2020 2019 (dollars in thousands) Secured $ 287,076 $ 45,342 Unsecured 456,000 335,300 $ 743,076 $ 380,642 |
Note 12 - Subordinated Notes (T
Note 12 - Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Notes | |
Summary of subordinated notes | Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of December 31, 2020 as of December 31, 2020 as of December 31, 2019 as of December 31, 2019 Maturity Date (dollars in thousands) Subordinated debenture dated 9/14/20 $ 50,000 5.125 % $ - — % 9/15/2030 Subordinated debenture dated 2/1/19 65,000 5.375 % 65,000 5.375 % 2/15/2029 Subordinated debenture dated 4/30/16* 2,000 4.00 % 2,000 4.00 % 4/30/2026 Subordinated debenture dated 9/15/16* 3,000 4.00 % 3,000 4.00 % 9/15/2026 Debt issuance costs (1,309) (1,606) Total Subordinated Debentures $ 118,691 $ 68,394 *Assumed in acquisition of SFCB |
Note 13 - Junior Subordinated_2
Note 13 - Junior Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Summary of junior subordinated debentures | 2020 2019 (dollars in thousands) Note Payable to QCR Holdings Capital Trust II $ 10,310 $ 10,310 Note Payable to QCR Holdings Capital Trust III 8,248 8,248 Note Payable to QCR Holdings Capital Trust V 10,310 10,310 Note Payable to Community National Trust II* 3,093 3,093 Note Payable to Community National Trust III* 3,609 3,609 Note Payable to Guaranty Bankshares Statutory Trust I** 4,640 4,640 Market Value Discount per ASC 805*** (2,217) (2,372) $ 37,993 $ 37,838 * As part of the acquisition of Community National, the Company assumed two junior subordinated debentures with fair value of $4.2 million. ** As part of the acquisition of Guaranty Bank, the Company assumed one junior subordinated debenture with a fair value of $3.9 million. *** Market value discount includes discount on junior subordinated debt acquired in 2013 as part of the purchase of Community National and junior subordinated debt acquired in 2017 as part of the purchase of Guaranty Bank. |
Schedule of Company's non-consolidated subsidiaries formed for the issuance of trust preferred securities | Amount Amount Outstanding Outstanding December 31, December 31, Interest Rate as of Interest Rate as of Name Date Issued 2020 2019 Interest Rate December 31, 2020 December 31, 2019 (dollars in thousands) QCR Holdings Statutory Trust II* February 2004 $ 10,310 $ 10,310 2.85% over 3-month LIBOR 3.10 % 4.79 % QCR Holdings Statutory Trust III February 2004 8,248 8,248 2.85% over 3-month LIBOR 3.10 % 4.79 % QCR Holdings Statutory Trust V February 2006 10,310 10,310 1.55% over 3-month LIBOR 1.79 % 3.54 % Community National Statutory Trust II September 2004 3,093 3,093 2.17% over 3-month LIBOR 2.41 % 4.08 % Community National Statutory Trust III March 2007 3,609 3,609 1.75% over 3-month LIBOR 1.97 % 3.64 % Guaranty Bankshares Statutory Trust I May 2005 4,640 4,640 1.75% over 3-month LIBOR 1.97 % 3.64 % $ 40,210 $ 40,210 Weighted Average Rate 2.48 % 4.18 % * Original amount issued for QCR Holdings Statutory Trust II was $12,372,000. |
Note 14 - Federal and State I_2
Note 14 - Federal and State Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Federal and state income tax expense | 2020 2019 2018 (dollars in thousands) Current $ 27,237 $ 8,255 $ 2,723 Deferred (14,530) 6,364 6,292 $ 12,707 $ 14,619 $ 9,015 |
Reconciliation of the expected federal income tax expense | Year Ended December 31, 2020 2019 2018 % of % of % of Pretax Pretax Pretax Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 15,391 21.0 % $ 15,126 21.0 % $ 10,948 21.0 % Tax exempt income, net (5,943) (8.1) (4,470) (6.2) (3,958) (7.6) Bank-owned life insurance (308) (0.4) (360) (0.5) (343) (0.6) State income taxes, net of federal benefit, current year 3,622 4.9 3,668 5.1 2,681 5.2 Change in unrecognized tax benefits 546 0.7 (93) (0.1) (45) (0.1) Goodwill impairment 105 0.1 630 0.9 — — Intended liquidation of bank-owned life insurance — — 790 1.1 — — Tax credits (456) (0.6) (705) (1.0) (154) (0.3) Acquisition costs — — — — 227 0.4 Excess tax benefit on stock options exercised and restricted stock awards vested (242) (0.3) (287) (0.4) (425) (0.8) Other (215) (0.3) 320 0.4 84 0.1 Federal and state income tax expense $ 12,707 17.3 % $ 14,619 20.3 % $ 9,015 17.3 % |
Schedule of Unrecognized tax benefits | 2020 2019 (dollars in thousands) Balance, beginning $ 1,254 $ 1,249 Impact of tax positions taken during current year 787 375 Gross increase (decrease) related to tax positions of prior years 39 44 Reduction as a result of a lapse of the applicable statute of limitations (187) (414) Balance, ending $ 1,893 $ 1,254 |
Schedule of Deferred Tax Assets and Liabilities | 2020 2019 (dollars in thousands) Deferred tax assets: Historic tax credits $ 68 $ 68 Net unrealized losses on securities available for sale and derivative instruments — 126 Compensation 10,288 8,433 Loan/lease losses 20,016 11,332 Net operating loss carryforwards, federal and state 628 739 Other 71 605 31,071 21,303 Deferred tax liabilities: Net unrealized gains on securities available for sale and derivative instruments 869 — Premises and equipment 5,737 4,616 Equipment financing leases 13,373 16,252 Acquisition fair value adjustments 3,351 3,963 Intended liquidation of bank-owned life insurance — 850 Gain on sale of assets and liabilities of subsidiary — 794 Investment accretion 28 28 Deferred loan origination fees, net 197 704 Other 922 832 24,477 28,039 Net deferred tax liabilities $ 6,594 $ (6,736) |
Change in deferred income taxes | 2020 2019 2018 (dollars in thousands) Provision for income taxes $ (14,530) $ 6,364 $ 6,292 Net deferred tax asset resulting from market value adjustments of acquisitions — (381) (52) Net deferred tax assets resulting from sale of other subsidiary 363 — — Net deferred tax liabilities resulting from sale of bank subsidiary — (1,644) — Statement of stockholders' equity- Other comprehensive income (loss) 837 1,433 (1,000) $ (13,330) $ 5,772 $ 5,240 |
Note 15 - Employee Benefit Pl_2
Note 15 - Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of matching contributions | 2020 2019 2018 (dollars in thousands) Matching contribution $ 2,520 $ 2,443 $ 2,000 |
Schedule of Change in compensation agreements | 2020 2019 2018 (dollars in thousands) Balance, beginning $ 19,474 $ 15,029 $ 12,347 Employee deferrals 3,959 2,474 1,407 Company match and interest 2,628 2,072 1,367 Cash payments made (1,348) (101) (92) Balance, ending $ 24,713 $ 19,474 $ 15,029 |
Supplemental Executive Retirement Plans [Member] | |
Notes Tables | |
Schedule of Change in compensation agreements | 2020 2019 2018 (dollars in thousands) Balance, beginning $ 5,160 $ 4,623 $ 4,330 Expense accrued 1,193 701 457 Cash payments made (164) (164) (164) Balance, ending $ 6,189 $ 5,160 $ 4,623 |
Note 16 - Stock-based Compens_2
Note 16 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Stock-based compensation expense | 2020 2019 2018 (dollars in thousands) Stock options $ 297 $ 475 $ 472 Restricted stock awards 1,619 1,850 857 Stock purchase plan 234 144 114 $ 2,150 $ 2,469 $ 1,443 |
Summary of the stock option plans | December 31, 2020 2019 2018 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding, beginning 426,913 $ 20.14 469,572 $ 18.52 513,554 $ 17.13 Granted 23,350 39.12 20,200 36.00 16,315 44.02 Exercised (41,650) 10.67 (59,393) 12.11 (60,127) 13.56 Forfeited (850) 19.94 (3,466) 31.59 (170) 16.81 Outstanding, ending 407,763 22.24 426,913 20.14 469,572 18.52 Exercisable, ending 354,899 365,084 358,270 Weighted average fair value per option granted $ 10.07 $ 11.29 $ 14.68 |
Summary of options outstanding | Options Outstanding Weighted Options Exercisable Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Prices Outstanding Life Price Exercisable Price $7.99 to $8.93 11,325 0.14 $ 8.15 11,325 $ 8.15 $9.00 to $9.30 60,328 1.08 9.30 60,328 9.30 $15.50 to $15.65 66,491 2.24 15.64 66,491 15.64 $17.10 to $18.00 113,527 3.56 17.31 113,527 17.31 $21.71 to $22.64 58,115 5.22 22.88 56,115 22.63 $36.00 to $48.50 97,977 7.39 41.45 47,113 42.98 407,763 354,899 |
Summary of changes in nonvested restricted stock awards | December 31, 2020 2019 2018 Outstanding, beginning 106,826 64,099 46,389 Granted* 34,559 85,961 37,315 Released (37,296) (37,624) (19,605) Forfeited (1,600) (5,610) — Outstanding, ending 102,489 106,826 64,099 Weighted average fair value per share granted $ 39.39 $ 20.14 $ 43.50 * At December 31, 2019, includes |
Schedule of Stock purchase plan | 2020 2019 2018 Shares granted 38,738 29,882 17,305 Shares purchased 37,114 28,775 15,528 Weighted average fair value per share granted $ 6.01 $ 4.81 $ 6.63 |
Note 17 - Regulatory Capital _2
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of the company and the subsidiary banks actual capital amounts and ratios | For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2020: Company: Total risk-based capital $ 721,004 14.95 % $ 385,832 > 8.00 % $ 506,404 > 10.50 % $ 482,290 > 10.00 % Tier 1 risk-based capital 546,729 11.34 289,374 > 6.00 409,946 > 8.50 385,832 > 8.00 Tier 1 leverage 546,729 9.49 230,345 > 4.00 230,345 > 4.00 287,931 > 5.00 Common equity Tier 1 508,736 10.55 217,030 > 4.50 337,603 > 7.00 313,488 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 213,608 12.24 % $ 139,581 > 8.00 % $ 183,200 > 10.50 % $ 174,477 > 10.00 % Tier 1 risk-based capital 191,693 10.99 104,686 > 6.00 148,305 > 8.50 139,581 > 8.00 Tier 1 leverage 191,693 8.48 90,430 > 4.00 90,430 > 4.00 113,038 > 5.00 Common equity Tier 1 191,693 10.99 78,514 > 4.50 122,134 > 7.00 113,410 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 217,227 13.14 % $ 132,269 > 8.00 % $ 173,603 > 10.50 % $ 165,336 > 10.00 % Tier 1 risk-based capital 196,438 11.88 99,202 > 6.00 140,536 > 8.50 132,269 > 8.00 Tier 1 leverage 196,438 10.01 78,535 > 4.00 78,535 > 4.00 98,169 > 5.00 Common equity Tier 1 196,438 11.88 74,401 > 4.50 115,735 > 7.00 107,469 > 6.50 Community State Bank: Total risk-based capital $ 108,040 12.69 % $ 68,117 > 8.00 % $ 89,404 > 10.50 % $ 85,146 > 10.00 % Tier 1 risk-based capital 97,350 11.43 51,088 > 6.00 72,374 > 8.50 68,117 > 8.00 Tier 1 leverage 97,350 10.27 37,930 > 4.00 37,930 > 4.00 47,412 > 5.00 Common equity Tier 1 97,350 11.43 38,316 > 4.50 59,602 > 7.00 55,345 > 6.50 Springfield First Community Bank: Total risk-based capital $ 90,334 14.35 % $ 50,357 > 8.00 % $ 66,094 > 10.50 % $ 62,947 > 10.00 % Tier 1 risk-based capital 77,668 12.34 37,768 > 6.00 53,505 > 8.50 50,357 > 8.00 Tier 1 leverage 77,668 10.87 28,575 > 4.00 28,575 > 4.00 35,719 > 5.00 Common equity Tier 1 77,668 12.34 28,326 > 4.50 44,063 > 7.00 40,915 > 6.50 Note 17. Regulatory Capital Requirements and Restrictions on Dividends (continued) For Capital To Be Well Adequacy Purposes Capitalized Under For Capital With Capital Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Company: Total risk-based capital $ 581,234 13.33 % $ 348,937 > 8.00 % $ 457,980 > 10.50 % $ 436,171 > 10.00 % Tier 1 risk-based capital 481,702 11.04 261,703 > 6.00 370,746 > 8.50 348,937 > 8.00 Tier 1 leverage 481,702 9.53 202,207 > 4.00 202,207 > 4.00 252,758 > 5.00 Common equity Tier 1 443,864 10.18 196,277 > 4.50 305,320 > 7.00 283,511 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 183,855 11.83 % $ 124,362 > 8.00 % $ 163,225 > 10.50 % $ 155,452 > 10.00 % Tier 1 risk-based capital 170,137 10.94 93,271 > 6.00 132,134 > 8.50 124,362 > 8.00 Tier 1 leverage 170,137 9.94 68,479 > 4.00 68,479 > 4.00 85,598 > 5.00 Common equity Tier 1 170,137 10.94 69,953 > 4.50 108,817 > 7.00 101,044 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 175,498 11.90 % $ 117,953 > 8.00 % $ 154,813 > 10.50 % $ 147,441 > 10.00 % Tier 1 risk-based capital 162,127 11.00 88,465 > 6.00 125,325 > 8.50 117,953 > 8.00 Tier 1 leverage 162,127 10.41 62,286 > 4.00 62,286 > 4.00 77,857 > 5.00 Common equity Tier 1 162,127 11.00 66,349 > 4.50 103,209 > 7.00 95,837 > 6.50 Community State Bank: Total risk-based capital $ 92,095 12.32 % $ 59,813 > 8.00 % $ 78,504 > 10.50 % $ 74,766 > 10.00 % Tier 1 risk-based capital 85,437 11.43 44,860 > 6.00 63,551 > 8.50 59,813 > 8.00 Tier 1 leverage 85,437 10.39 32,902 > 4.00 32,902 > 4.00 41,128 > 5.00 Common equity Tier 1 85,437 11.43 33,645 > 4.50 52,336 > 7.00 48,598 > 6.50 Springfield First Community Bank: Total risk-based capital $ 71,074 12.72 % $ 44,704 > 8.00 % $ 58,674 > 10.50 % $ 55,880 > 10.00 % Tier 1 risk-based capital 63,956 11.45 33,528 > 6.00 47,498 > 8.50 44,704 > 8.00 Tier 1 leverage 63,956 9.70 26,379 > 4.00 26,379 > 4.00 32,974 > 5.00 Common equity Tier 1 63,956 11.45 25,146 > 4.50 39,116 > 7.00 36,322 > 6.50 |
Note 18 - Earnings Per Share (T
Note 18 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per Share | |
Schedule of computation of earnings per share on a basic and diluted basis | 2020 2019 2018 (dollars in thousands, except per share data) Net income $ 60,582 $ 57,408 $ 43,120 Basic EPS $ 3.84 $ 3.65 $ 2.92 Diluted EPS $ 3.80 $ 3.60 $ 2.86 Weighted average common shares outstanding* 15,771,650 15,730,016 14,768,687 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 180,987 237,759 296,043 Weighted average common and common equivalent shares outstanding** 15,952,637 15,967,775 15,064,730 * The increase in weighted average common shares outstanding from 2018 to 2019 was primarily due to the common stock ** Excludes anti-dilutive shares of 104,636, 80,437 and 91,954 at December 31, 2020, 2019 and 2018, respectively |
Note 20 - Quarterly Results o_2
Note 20 - Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Quarterly financial information | Year Ended December 31, 2020 March June September December 2020 2020 2020 2020 (dollars in thousands) Total interest income $ 48,982 $ 48,650 $ 50,890 $ 49,851 Total interest expense 11,276 7,694 6,309 6,144 Net interest income 37,706 40,956 44,581 43,707 Provision for loan/lease losses 8,367 19,915 20,342 7,080 Noninterest income 15,196 28,626 37,959 32,017 Noninterest expense 31,423 33,130 40,838 46,364 Income before taxes 13,112 16,537 21,360 22,280 Federal and state income tax expense 1,884 2,798 4,016 4,009 Net income $ 11,228 $ 13,739 $ 17,344 $ 18,271 EPS: Basic $ 0.71 $ 0.87 $ 1.10 $ 1.16 Diluted $ 0.70 $ 0.86 $ 1.09 $ 1.14 Year Ended December 31, 2019 March June September December 2019 2019 2019 2019 (dollars in thousands) Total interest income $ 52,101 $ 54,181 $ 56,817 $ 52,977 Total interest expense 15,193 16,168 16,098 13,058 Net interest income 36,908 38,013 40,719 39,919 Provision for loan/lease losses 2,134 1,941 2,012 979 Noninterest income 11,992 17,065 19,906 29,805 Noninterest expense 32,435 36,560 39,945 46,294 Income before taxes 14,331 16,577 18,668 22,451 Federal and state income tax expense 1,413 3,073 3,573 6,560 Net income $ 12,918 $ 13,504 $ 15,095 $ 15,891 EPS: Basic $ 0.82 $ 0.86 $ 0.96 $ 1.01 Diluted $ 0.81 $ 0.85 $ 0.94 $ 0.99 |
Note 21 - Parent Company Only_2
Note 21 - Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Condensed Balance Sheet | 2020 2019 (dollars in thousands) Assets Cash and due from banks $ 88,610 $ 59,529 Interest-bearing deposits at financial institutions 7,200 5,601 Investment in bank subsidiaries 655,232 570,698 Investment in nonbank subsidiaries 4,540 13,239 Premises and equipment, net 9,242 9,424 Goodwill — 682 Intangibles — 1,503 Other assets 7,225 15,150 Total assets $ 772,049 $ 675,826 Liabilities and Stockholders' Equity Liabilities: Subordinated notes $ 113,691 $ 63,531 Junior subordinated debentures 37,993 37,838 Other liabilities 26,572 39,106 Total liabilities 178,256 140,475 Stockholders' Equity: Common stock 15,806 15,828 Additional paid-in capital 275,807 274,785 Retained earnings 300,804 245,836 Accumulated other comprehensive loss 1,376 (1,098) Total stockholders' equity 593,793 535,351 Total liabilities and stockholders' equity $ 772,049 $ 675,826 |
Condensed Income Statement | 2020 2019 2018 (dollars in thousands) Total interest income $ 29 $ 77 $ 88 Equity in net income of bank subsidiaries 79,624 69,966 55,209 Equity in net income of nonbank subsidiaries (261) 6,797 (436) Other 289 314 (322) Total income 79,681 77,154 54,539 Interest expense 6,662 5,836 3,637 Salaries and employee benefits 11,825 8,739 6,598 Professional fees 2,558 1,545 1,872 Acquisition costs — — 1,654 Post-acquisition compensation, transition and integration costs 145 3,171 165 Disposition costs 312 1,606 — Goodwill impairment 500 3,000 — Other 2,505 2,147 1,026 Total expenses 24,507 26,044 14,952 Income before income tax benefit 55,174 51,110 39,587 Income tax benefit 5,408 6,298 3,533 Net income $ 60,582 $ 57,408 $ 43,120 |
Condensed Cash flow Statement | 2020 2019 2018 (dollars in thousands) Cash Flows from Operating Activities: Net income $ 60,582 $ 57,408 $ 43,120 Adjustments to reconcile net income to net cash provided by operating activities: Earnings of bank subsidiaries (79,624) (69,966) (55,209) Earnings (losses) of nonbank subsidiaries 261 (6,797) 436 Distributions from bank subsidiaries — — 34,500 Distributions from nonbank subsidiaries 40 45,058 63 Deferred income taxes 6,909 2,498 1,292 Accretion of acquisition fair value adjustments 378 305 183 Depreciation 454 327 249 Stock-based compensation expense 2,150 2,469 1,443 Loss on sale of subsidiary 158 — — Goodwill impairment 500 3,000 — Decrease (increase) in other assets 1,663 (2,472) 940 Increase (decrease) in other liabilities (14,966) 7,814 (7,226) Net cash provided by (used in) operating activities (21,495) 39,644 19,791 Cash Flows from Investing Activities: Net increase in interest-bearing deposits at financial institutions (1,599) (4,600) (1,000) Capital infusion, bank subsidiaries — (8,600) (3,500) Capital infusion, non-bank subsidiaries — (100) — Net cash received in dissolution of subsidiary 8,450 — — Net cash paid for acquisitions — — (5,183) Net cash received in sale of subsidiary 195 — — Purchase of premises and equipment (272) (2,861) (2,257) Net cash provided by (used in) investing activities 6,774 (16,161) (11,940) Cash Flows from Financing Activities: Activity in other borrowings: Proceeds from other borrowings — — 9,000 Paydown on revolving line of credit — (9,000) — Prepayments — (21,313) — Calls, maturities and scheduled payments — (1,799) (12,550) Proceeds from subordinated notes 50,000 63,393 — Payment of cash dividends on common and preferred stock (3,779) (3,767) (3,300) Proceeds from issuance of common stock, net 1,360 1,926 1,279 Repurchase and cancellation of shares (3,779) — — Net cash provided by (used in) financing activities 43,802 29,440 (5,571) Net increase in cash and due from banks 29,081 52,923 2,280 Cash and due from banks: Beginning 59,529 6,606 4,326 Ending $ 88,610 $ 59,529 $ 6,606 |
Note 22 - Fair Value (Tables)
Note 22 - Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of assets measured at fair value | Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) December 31, 2020: Securities AFS: U.S. govt. sponsored agency securities $ 15,336 $ — $ 15,336 $ — Residential mortgage-backed and related securities 132,842 — 132,842 — Municipal securities 152,408 — 152,408 — Asset-backed securities 40,683 — 40,683 — Other securities 20,697 — 20,697 — Derivatives 222,757 — 222,757 — Total assets measured at fair value $ 584,723 $ — $ 584,723 $ — Derivatives $ 229,270 $ — $ 229,270 $ — Total liabilities measured at fair value $ 229,270 $ — $ 229,270 $ — December 31, 2019: Securities AFS: U.S. govt. sponsored agency securities $ 20,078 $ — $ 20,078 $ — Residential mortgage-backed and related securities 120,587 — 120,587 — Municipal securities 48,257 — 48,257 — Asset-backed securities 16,887 — 16,887 — Other securities 4,886 — 4,886 — Derivatives 87,827 — 87,827 — Total assets measured at fair value $ 298,522 $ — $ 298,522 $ — Derivatives $ 88,437 $ — $ 88,437 $ — Total liabilities measured at fair value $ 88,437 $ — $ 88,437 $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) December 31, 2020: Impaired loans/leases $ 9,926 $ — $ — $ 9,926 OREO 22 — — 22 $ 9,948 $ — $ — $ 9,948 December 31, 2019: Impaired loans/leases $ 3,394 $ — $ — $ 3,394 OREO 4,459 — — 4,459 $ 7,853 $ — $ — $ 7,853 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value December 31, December 31, 2020 2019 Valuation Technique Unobservable Input Range (dollars in thousands) Impaired loans/leases $ 9,926 $ 3,394 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % OREO 22 4,459 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % |
Schedule of assets and liabilities measured at fair value | Fair Value As of December 31, 2020 As of December 31, 2019 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 61,329 $ 61,329 $ 76,254 $ 76,254 Federal funds sold Level 2 9,080 9,080 9,800 9,800 Interest-bearing deposits at financial institutions Level 2 86,596 86,596 147,891 147,891 Investment securities: HTM Level 2 476,165 521,277 400,646 426,545 AFS Level 2 361,966 361,966 210,695 210,695 Loans/leases receivable, net Level 3 9,191 9,926 3,143 3,394 Loans/leases receivable, net Level 2 4,157,562 4,112,735 3,651,061 3,606,520 Derivatives Level 2 222,757 222,757 87,827 87,827 Deposits: Nonmaturity deposits Level 2 4,138,478 4,138,478 3,184,726 3,184,726 Time deposits Level 2 460,659 465,681 726,325 742,444 Short-term borrowings Level 2 5,430 5,430 13,423 13,423 FHLB advances Level 2 15,000 14,998 159,300 159,193 Subordinated notes Level 2 118,691 122,406 68,394 68,563 Junior subordinated debentures Level 2 37,993 30,618 37,838 30,477 Derivatives Level 2 229,270 229,270 88,437 88,437 |
Note 23 - Business Segment In_2
Note 23 - Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of business segment information | Commercial Banking Intercompany Consolidated QCBT CRBT CSB SFCB All other Eliminations Total (dollars in thousands) Twelve Months Ended December 31, 2020* Total revenue $ 92,336 $ 125,416 $ 50,448 $ 42,036 $ 2,197 $ (262) $ 312,171 Net interest income 63,366 52,857 31,570 24,759 (6,633) 1,031 166,950 Provision for loan/lease losses 21,612 19,438 9,243 5,411 — — 55,704 Net income (loss) from continuing operations 21,557 33,890 11,379 12,797 (19,041) — 60,582 Goodwill 3,223 14,980 9,888 45,975 — — 74,066 Intangibles — 2,189 3,305 5,887 — — 11,381 Total assets 2,149,469 1,952,308 1,000,670 779,956 125,365 (324,971) 5,682,797 Twelve Months Ended December 31, 2019* Total revenue $ 87,433 $ 96,631 $ 42,059 $ 31,569 $ 38,758 $ (1,606) $ 294,844 Net interest income 52,097 44,310 31,370 21,422 6,360 — 155,559 Provision for loan/lease losses 3,433 1,080 679 1,315 559 — 7,066 Net income (loss) from continuing operations 21,607 27,716 10,787 8,244 (10,946) — 57,408 Goodwill 3,223 14,980 9,888 45,975 682 — 74,748 Intangibles — 2,684 3,980 6,802 1,504 — 14,970 Total assets 1,682,477 1,572,324 853,833 748,753 116,968 (65,305) 4,909,050 Twelve Months Ended December 31, 2018* Total revenue $ 77,129 $ 73,208 $ 36,649 $ 15,153 $ 23,152 $ (871) $ 224,420 Net interest income 48,682 43,038 28,763 11,835 10,077 — 142,395 Provision for loan/lease losses 3,693 1,833 1,523 990 4,619 — 12,658 Net income (loss) 20,559 20,680 8,449 4,816 (11,384) — 43,120 Goodwill 3,223 14,980 9,888 45,975 3,766 — 77,832 Intangibles — 3,186 4,675 7,734 1,855 — 17,450 Total assets 1,623,369 1,379,222 785,364 632,849 555,293 (26,387) 4,949,710 * its assets and liabilities. Includes financial results for the Bates Companies for the years October 1, 2018 through December 31, 2018 after the purchase of the companies, the year 2019 and the period from January 1, 2020 through August 12, 2020, prior to the sale of the companies. |
Note 1 - Nature of Business a_4
Note 1 - Nature of Business and Significant Accounting Policies (Details) | Nov. 30, 2020USD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)subsidiaryshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) |
Number of subsidiaries commercial banks | subsidiary | 4 | |||||||
Number of Non-Consolidated Subsidiaries Issuing Trust Preferred Securities | subsidiary | 6 | |||||||
Cash Reserve Deposit Required and Made | $ 0 | $ 38,060,000 | ||||||
Initial Direct Leasing Costs As a Percentage of Cost | 5.50% | |||||||
Financing Receivable, Lines of Credit Maximum Term | 1 year | |||||||
Commercial Real Estate Owner Occupied, Percentage | 26.00% | 26.00% | ||||||
Lending Threshold Requiring Additional Loan Review | $ 1,000,000 | |||||||
Goodwill impairment | $ 0 | $ 0 | $ 500,000 | $ 3,000,000 | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 354,899 | 365,084 | 358,270 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 7,300,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 7,300,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 270,000 | $ 303,000 | $ 365,000 | |||||
Preferred stock, authorized (in shares) | shares | 250,000 | 250,000 | ||||||
Preferred stock, outstanding (in shares) | shares | 0 | 0 | ||||||
Common stock, outstanding (in shares) | shares | 15,805,711 | 15,828,098 | ||||||
Allocated Share-based Compensation Expense | $ 2,150,000 | $ 2,469,000 | 1,443,000 | |||||
Retained earnings | 300,804,000 | 245,836,000 | ||||||
Less allowance | $ 84,376,000 | $ 36,001,000 | 39,847,000 | $ 34,356,000 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Initial Direct Leasing Costs As a Percentage of Cost | 3.20% | 3.90% | ||||||
Employee Stock Option | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 399,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 2 days | |||||||
Allocated Share-based Compensation Expense | $ 297,000 | $ 475,000 | 472,000 | |||||
In The Money Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 329,736 | |||||||
Restricted Stock | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,800,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |||||||
Allocated Share-based Compensation Expense | $ 1,619,000 | 1,850,000 | 857,000 | |||||
Bates Companies | ||||||||
Goodwill impairment | $ 3,000,000 | $ 500,000 | 500,000 | 3,000,000 | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 3,000,000 | |||||||
Subsidiaries [Member] | Fixed Rate Residential Mortgage [Member] | ||||||||
Financing Receivable, Term | 15 years | |||||||
Construction Loans [Member] | ||||||||
Loan and Leases Receivable, Lending Limits Percent | 100.00% | |||||||
Commercial Portfolio Segment [Member] | ||||||||
Financing Receivable, Term Loans, Generally Maximum Term | 7 years | |||||||
Less allowance | $ 35,421,000 | 16,072,000 | 16,420,000 | 14,323,000 | ||||
Commercial Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||||||
Loan and Leases Receivable, Lending Limits Percent | 300.00% | |||||||
Commercial Real Estate Portfolio Segment [Member] | ||||||||
Less allowance | $ 42,161,000 | $ 15,379,000 | $ 17,719,000 | $ 13,963,000 | ||||
Minimum | ||||||||
Residual Value Percent of Cost | 3.00% | |||||||
Financing Receivable, Lines of Credit Maximum Term | 6 months | |||||||
Loan or lease portfolio, exposure to risk | $ 250,000 | |||||||
Minimum | Subsidiaries [Member] | Adjustable Rate Residential Mortgage [Member] | ||||||||
Financing Receivable, Term | 1 year | |||||||
Minimum | Commercial Portfolio Segment [Member] | Term Loan [Member] | ||||||||
Financing Receivable, Term | 3 years | |||||||
Maximum | ||||||||
Residual Value Percent of Cost | 25.00% | |||||||
Financing Receivable, Lines of Credit Maximum Term | 1 year | |||||||
Financing Receivable, Credit Weaknesses Borrowers, Term | 365 days | |||||||
Permanent loans term | 20 years | |||||||
Maximum | Subsidiaries [Member] | Adjustable Rate Residential Mortgage [Member] | ||||||||
Financing Receivable, Term | 5 years | |||||||
Maximum | Commercial Portfolio Segment [Member] | Term Loan [Member] | ||||||||
Financing Receivable, Term | 5 years | |||||||
Core Deposits [Member] | ||||||||
Estimated useful life | 10 years | |||||||
Customer Lists [Member] | ||||||||
Estimated useful life | 15 years |
Note 1 - Nature of Business a_5
Note 1 - Nature of Business and Significant Accounting Policies - Option Pricing Model Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expected life of option grants (Year) | 10 years | ||
Weighted-average grant date fair value (in dollars per share) | $ 10.07 | $ 11.29 | $ 14.68 |
Employee Stock Option | |||
Dividend yield | 0.67% | ||
Expected volatility | 28.28% | ||
Risk-free interest rate | 2.90% | ||
Expected life of option grants (Year) | 6 years 3 months | 6 years 3 months | 6 years |
Weighted-average grant date fair value (in dollars per share) | $ 10.07 | $ 11.29 | $ 14.68 |
Employee Stock Option | Minimum | |||
Dividend yield | 0.60% | 0.45% | |
Expected volatility | 25.49% | 29.51% | |
Risk-free interest rate | 0.79% | 2.60% | |
Employee Stock Option | Maximum | |||
Dividend yield | 0.81% | 0.48% | |
Expected volatility | 25.70% | 29.59% | |
Risk-free interest rate | 1.31% | 2.94% | |
Stock Purchase Grants [Member] | |||
Weighted-average grant date fair value (in dollars per share) | $ 6.03 | $ 4.81 | $ 6.63 |
Stock Purchase Grants [Member] | Minimum | |||
Dividend yield | 0.55% | 0.69% | 0.37% |
Expected volatility | 24.59% | 20.15% | 20.90% |
Risk-free interest rate | 0.15% | 2.02% | 1.59% |
Expected life of option grants (Year) | 3 months | 3 months | 3 months |
Stock Purchase Grants [Member] | Maximum | |||
Dividend yield | 0.81% | 0.75% | 0.51% |
Expected volatility | 36.38% | 21.06% | 21.40% |
Risk-free interest rate | 1.65% | 2.46% | 2.22% |
Expected life of option grants (Year) | 6 months | 6 months | 6 months |
Note 1 - Nature of Business a_6
Note 1 - Nature of Business and Significant Accounting Policies - Recent account developments (Details) - Pro Forma - Accounting Standards Update 2016-13 $ in Millions | Jan. 01, 2021USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase in allowance for estimated losses on loans or leases | $ 1 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase in allowance for estimated losses on loans or leases | $ 3 |
Note 2 - Sales_Mergers_Acquis_3
Note 2 - Sales/Mergers/Acquisitions - Sale of Assets and liabilities (Details) - USD ($) $ in Thousands | Aug. 12, 2020 | Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Total assets sold | $ 11,966 | |||
LIABILITIES | ||||
Total liabilities sold | 5,003 | |||
Gain (loss) on sale of assets and liabilities of subsidiary | $ (158) | 12,286 | ||
Assets held for sale | 11,966 | |||
Liabilities held for sale | 5,003 | |||
Disposition costs | 690 | 3,325 | ||
RB&T | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Purchase price premium for intangible assets | 8.00% | |||
Purchase price premium multiplied | 0.345 | |||
Purchase price premium | $ 12,500 | |||
ASSETS | ||||
Cash and due from banks | 3,973 | |||
Interest-bearing deposits at financial institutions | 55,291 | |||
Securities held to maturity, at amortized cost | 3,243 | |||
Securities available for sale, at fair value | 21,874 | |||
Loans/leases receivable held for investment, net | 357,931 | |||
Premises and equipment, net | 5,612 | |||
Restricted investment securities | 675 | |||
Other real estate owned, net | 2,134 | |||
Other assets | 3,228 | |||
Total assets sold | 453,961 | |||
LIABILITIES | ||||
Noninterest-bearing deposits | 69,802 | |||
Interest-bearing deposits | 331,486 | |||
Short-term borrowings | 1,158 | |||
Federal Home Loan Bank advances | 15,000 | |||
Other liabilities | 2,241 | |||
Total liabilities sold | 419,687 | |||
Net assets sold | 34,274 | |||
Note receivable consideration | 46,560 | |||
Consideration received | 46,600 | |||
Gain (loss) on sale of assets and liabilities of subsidiary | 12,286 | |||
Assets held for sale | 453,961 | |||
Liabilities held for sale | $ 419,687 | |||
Bates Companies | ||||
ASSETS | ||||
Cash and due from banks | $ 349 | |||
Premises and equipment, net | 19 | |||
Other assets | 2,259 | |||
Total assets sold | 2,627 | |||
LIABILITIES | ||||
Other liabilities | 946 | |||
Total liabilities sold | 946 | |||
Net assets sold | 1,681 | |||
Forgiveness of earn-out consideration | 880 | |||
Cash consideration | 195 | |||
Note receivable consideration | 448 | |||
Consideration received | 500 | |||
Imputed interest | 52 | |||
Gain (loss) on sale of assets and liabilities of subsidiary | 158 | |||
Assets held for sale | 2,627 | |||
Liabilities held for sale | 946 | |||
Disposition costs | $ 227 | |||
Bates Companies | Earnout Agreement Cancellation [Member] | ||||
LIABILITIES | ||||
Consideration received | $ 880 | |||
Asset held-for-sale | ||||
ASSETS | ||||
Total assets sold | 12,000 | |||
LIABILITIES | ||||
Total liabilities sold | 5,000 | |||
Assets held for sale | 12,000 | |||
Liabilities held for sale | 5,000 | |||
Disposition costs | $ 3,300 |
Note 2 - Sales_Mergers_Acquis_4
Note 2 - Sales/Mergers/Acquisitions - Acquisition of the Bates Companies (Details) - USD ($) | Oct. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Feb. 12, 2019 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Cash paid | $ 9,834,000 | |||||
Common stock consideration | 81,637,000 | |||||
Interest rate (as a percent) | 5.375% | |||||
Business acquisition related costs | 1,795,000 | |||||
Intangibles | 10,064,000 | |||||
Goodwill | $ 74,748,000 | 77,832,000 | $ 74,066,000 | $ 28,334,000 | ||
Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Assets under management | $ 704,000,000 | |||||
Voting interests acquired (as a percent) | 100.00% | |||||
Cash paid | $ 3,000,000 | $ 1,400,000 | ||||
Cash consideration paid from operating cash | $ 1,500,000 | |||||
Stock issued during period (in shares) | 23,501 | |||||
Stock consideration | $ 3,000,000 | |||||
Number of shares expecting to issue based on 10-day volume weighted average of the closing stock price of the Company ending five days prior to closing | 47,003 | |||||
Business acquisition related costs | $ 394,000 | |||||
Goodwill | 3,700,000 | |||||
Other Liabilities. | Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration | $ 2,000,000 | |||||
Customer Lists [Member] | Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Intangibles | $ 1,600,000 | |||||
Promissory Note [Member] | Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Repayment period (in years) | 5 years | |||||
Frequency of installments | annual installments | |||||
Periodic payment of principal amount | $ 300,000 | |||||
Interest rate (as a percent) | 2.18% | |||||
Promissory Note [Member] | Other Liabilities. | Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Promissory note | $ 1,500,000 | |||||
Maximum | Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Common stock consideration | $ 3,000,000 | |||||
Common Stock [Member] | Bates Companies | ||||||
Business Acquisition [Line Items] | ||||||
Stock issued during period (in shares) | 9,400 |
Note 2 - Sales_Mergers_Acquis_5
Note 2 - Sales/Mergers/Acquisitions - Pro Forma Combined Operating Results (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / shares | |
Springfield Bancshares | |
Net interest income | $ 153,229 |
Noninterest income | 42,538 |
Net income | $ 49,542 |
Basic (in dollars per share) | $ / shares | $ 3.17 |
Diluted (in dollars per share) | $ / shares | $ 3.11 |
Bates Companies | |
Net interest income | $ 142,368 |
Noninterest income | 44,455 |
Net income | $ 44,032 |
Basic (in dollars per share) | $ / shares | $ 2.98 |
Diluted (in dollars per share) | $ / shares | $ 2.92 |
Note 2 - Sales_Mergers_Acquis_6
Note 2 - Sales/Mergers/Acquisitions - Springfield Bancshares, Inc (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2018USD ($)location$ / shares | Jun. 30, 2018USD ($) | Jun. 29, 2018USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Common stock consideration | $ 81,637 | ||||
Total consideration paid | $ 94,971 | ||||
Springfield Bancshares | |||||
Business Acquisition [Line Items] | |||||
Voting interests acquired (as a percent) | 100.00% | ||||
Number of branches | location | 1 | ||||
Business acquisition exchange ratio | 0.3060 | ||||
Cash per common share | $ / shares | $ 1.50 | ||||
Share Price | $ / shares | $ 47.45 | ||||
Common stock consideration | $ 80,637 | $ 80,600 | |||
Total consideration paid | $ 88,971 | 89,000 | |||
Line of credit facility, current borrowing capacity | 10,000 | ||||
Goodwill, Period Increase | $ 447 | ||||
Other Borrowings | Springfield Bancshares | |||||
Business Acquisition [Line Items] | |||||
Proceeds from lines of credit | $ 4,900 | $ 4,100 |
Note 2 - Sales_Mergers_Acquis_7
Note 2 - Sales/Mergers/Acquisitions - Consideration Paid and Goodwill (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Jun. 29, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Oct. 01, 2017 |
ASSETS | |||||||
Cash and due from banks | $ 4,651 | ||||||
Interest-bearing deposits at financial institutions | 62,924 | ||||||
Securities | 4,845 | ||||||
Loans/leases receivable, net | 477,337 | ||||||
Bank-owned life insurance | 7,092 | ||||||
Premises and equipment | 6,092 | ||||||
Restricted investment securities | 3,654 | ||||||
Intangibles | 10,064 | ||||||
Other assets | 2,255 | ||||||
Total assets acquired | 578,914 | ||||||
LIABILITIES | |||||||
Deposits | 439,579 | ||||||
FHLB advances | 74,540 | ||||||
Other borrowings | 9,544 | ||||||
Other liabilities | 8,878 | ||||||
Total liabilities assumed | 533,684 | ||||||
Net assets acquired | 45,230 | ||||||
Consideration paid: | |||||||
Cash | 9,834 | ||||||
Common stock | 81,637 | ||||||
Total consideration paid | 94,971 | ||||||
Goodwill | 77,832 | $ 74,066 | $ 74,748 | $ 28,334 | |||
Guaranty Bank and Trust Company | |||||||
LIABILITIES | |||||||
Junior subordinated debentures | $ 3,900 | ||||||
Springfield Bancshares | |||||||
ASSETS | |||||||
Cash and due from banks | $ 4,586 | ||||||
Interest-bearing deposits at financial institutions | 62,924 | ||||||
Securities | 4,845 | ||||||
Loans/leases receivable, net | 477,337 | ||||||
Bank-owned life insurance | 7,092 | ||||||
Premises and equipment | 6,092 | ||||||
Restricted investment securities | 3,654 | ||||||
Intangibles | 8,209 | ||||||
Other assets | 1,471 | ||||||
Total assets acquired | 576,210 | ||||||
LIABILITIES | |||||||
Deposits | 439,579 | ||||||
Short-term borrowings | 1,143 | ||||||
FHLB advances | 74,539 | ||||||
Other borrowings | 9,544 | ||||||
Other liabilities | 8,409 | ||||||
Total liabilities assumed | 533,214 | ||||||
Net assets acquired | 42,996 | ||||||
Consideration paid: | |||||||
Cash | 8,334 | $ 3,700 | |||||
Common stock | 80,637 | $ 80,600 | |||||
Total consideration paid | 88,971 | $ 89,000 | |||||
Goodwill | $ 45,975 |
Note 2 - Sales_Mergers_Acquis_8
Note 2 - Sales/Mergers/Acquisitions - Purchased Loans As of the Acquisition Date (Details) - Springfield Bancshares $ in Thousands | Jul. 01, 2018USD ($) |
Contractually required principal payments | $ 486,993 |
Nonaccretable discount | (1,563) |
Principal cash flows expected to be collected | 485,430 |
Accretable discount | (8,093) |
Fair Value of acquired loans | 477,337 |
Performing Loans | |
Contractually required principal payments | 479,440 |
Principal cash flows expected to be collected | 479,440 |
Accretable discount | (7,800) |
Fair Value of acquired loans | 471,640 |
PCI Loans | |
Contractually required principal payments | 7,553 |
Nonaccretable discount | (1,563) |
Principal cash flows expected to be collected | 5,990 |
Accretable discount | (293) |
Fair Value of acquired loans | $ 5,697 |
Note 2 - Sales_Mergers_Acquis_9
Note 2 - Sales/Mergers/Acquisitions - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at the beginning of the period | $ (6,435) | $ (10,794) | $ (6,471) |
Discount added at acquisition | (8,093) | ||
Reclassification of nonaccretable discount to accretable | (353) | ||
Accretion recognized | 3,473 | 4,634 | 5,132 |
Balance at the end of the period | (3,139) | (6,435) | (10,794) |
Performing Loans | |||
Balance at the beginning of the period | (6,378) | (10,127) | (6,280) |
Discount added at acquisition | (7,800) | ||
Reclassification of nonaccretable discount to accretable | (353) | ||
Accretion recognized | 2,886 | 3,749 | 4,423 |
Balance at the end of the period | (3,139) | (6,378) | (10,127) |
Springfield Bancshares | |||
Balance at the beginning of the period | (3,575) | (6,508) | |
Discount added at acquisition | (8,093) | ||
Reclassification of nonaccretable discount to accretable | (512) | (159) | (892) |
Accretion recognized | 2,611 | 3,092 | 2,477 |
Balance at the end of the period | (1,476) | (3,575) | (6,508) |
Springfield Bancshares | Performing Loans | |||
Balance at the beginning of the period | (3,524) | (5,849) | |
Discount added at acquisition | (7,800) | ||
Accretion recognized | 2,048 | 2,325 | 1,951 |
Balance at the end of the period | (1,476) | (3,524) | (5,849) |
PCI Loans | |||
Balance at the beginning of the period | (57) | (667) | (191) |
Discount added at acquisition | (293) | ||
Accretion recognized | 587 | 885 | 709 |
Balance at the end of the period | (57) | (667) | |
PCI Loans | Springfield Bancshares | |||
Balance at the beginning of the period | (51) | (659) | |
Discount added at acquisition | (293) | ||
Reclassification of nonaccretable discount to accretable | (512) | (159) | (892) |
Accretion recognized | $ 563 | 767 | 526 |
Balance at the end of the period | $ (51) | $ (659) |
Note 2 - Sales_Mergers_Acqui_10
Note 2 - Sales/Mergers/Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Premises and equipment | $ 6,092 | ||||
Core deposit intangible | $ 10,064 | ||||
PCI Loans | |||||
Business Acquisition [Line Items] | |||||
Remaining life of loan (in months) | 8 months | 8 months | |||
Springfield Bancshares | |||||
Business Acquisition [Line Items] | |||||
Premises and equipment | $ 6,092 | ||||
Core deposit intangible | 8,209 | ||||
Springfield Bancshares | PCI Loans | |||||
Business Acquisition [Line Items] | |||||
Nonaccretable discount recognized | $ 892 | $ 0 | $ 0 | $ 0 | |
Amount accreted to income | 159 | $ 512 | $ 153 | $ 396 | |
One Branch Location [Member] | Springfield Bancshares | |||||
Business Acquisition [Line Items] | |||||
Premises and equipment | $ 6,100 | ||||
Property, plant and equipment, useful life | 39 years | ||||
Core Deposits [Member] | Springfield Bancshares | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||||
Core deposit intangible | $ 8,200 |
Note 2 - Sales_Mergers_Acqui_11
Note 2 - Sales/Mergers/Acquisitions - FHLB Advances (Details) - USD ($) $ in Thousands | Jul. 02, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2018 |
Business Acquisition [Line Items] | ||||||
Common stock, issued (in shares) | 15,805,711 | 15,828,098 | ||||
Common stock, outstanding (in shares) | 15,805,711 | 15,828,098 | ||||
Acquisition costs | $ 1,795 | |||||
Springfield Bancshares | ||||||
Business Acquisition [Line Items] | ||||||
Overnight FHLB advances assumed | $ 40,000 | |||||
FHLB term advances assumed | 34,500 | |||||
Subordinated debentures | 4,700 | |||||
Bank stock loan | 4,800 | |||||
Fair value of FHLB and other borrowings assumed | $ 84,100 | |||||
Revenue of acquiree since acquisition date | $ 15,200 | |||||
Earnings of acquiree since acquisition date | 4,800 | |||||
Payment of bank stock loan | $ 4,800 | |||||
Acquisition costs | $ 391 | $ 1,400 |
Note 2 - Sales_Mergers_Acqui_12
Note 2 - Sales/Mergers/Acquisitions - Guaranty Bank and Trust (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sales/Mergers/Acquisitions | |||
Debt Instrument, Face Amount | $ 40,210 | $ 40,210 | |
Business Combination, Acquisition Related Costs | $ 1,795 | ||
Post-acquisition compensation, transition and integration costs | $ 214 | $ 3,582 | $ 2,086 |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)securityitemstate | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | |
Number of securities | security | 668 | ||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | security | 41 | ||
Aggregate losses of securities (as a percent) | 0.10% | ||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 5 | ||
Other than temporary impairment losses, investments | $ | $ 0 | $ 0 | $ 0 |
Sale of securities | $ | 38,562 | 30,055 | $ 1,938 |
Gain on sale | $ | 2,553 | 176 | |
Security Owned and Pledged as Collateral, Fair Value | $ | $ 212,800 | $ 113,400 | |
Number of states holding investments | state | 50 | ||
Number Of Charters Owning Municipal Securities | item | 4 | ||
Revenue Bonds | |||
Number of issuers | item | 2 | 1 | |
Percentage threshold | 5.00% | 5.00% | |
Municipal securities | General Obligation Bonds | |||
Number of issuers | item | 117 | 93 | |
Other investments | $ | $ 116,700 | $ 77,200 | |
Number of states holding investments | item | 21 | 22 | |
Municipal securities | General Obligation Bonds | Minimum | |||
Other investments | $ | $ 5,000 | $ 5,000 | |
Municipal securities | General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||
Number of states holding investments | item | 8 | 6 | |
Municipal securities | Revenue Bonds | |||
Number of issuers | item | 191 | 154 | |
Other investments | $ | $ 555,900 | $ 396,600 | |
Number of states holding investments | item | 26 | 17 | |
Municipal securities | Revenue Bonds | Minimum | |||
Other investments | $ | $ 5,000 | $ 5,000 | |
Municipal securities | Revenue Bonds | Aggregate Fair Value Exceeding 5 Million [Member] | |||
Number of states holding investments | item | 12 | 7 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | $ 476,165 | $ 400,646 |
Securities held to maturity, gross unrealized gains | 45,360 | 26,042 |
Securities held to maturity, gross unrealized (losses) | (248) | (143) |
Securities held to maturity, fair value | 521,277 | 426,545 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 350,060 | 206,962 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 12,430 | 4,068 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (524) | (335) |
Debt Securities, Available-for-sale | 361,966 | 210,695 |
Municipal securities | ||
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | 475,115 | 399,596 |
Securities held to maturity, gross unrealized gains | 45,360 | 26,042 |
Securities held to maturity, gross unrealized (losses) | (248) | (143) |
Securities held to maturity, fair value | 520,227 | 425,495 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 147,241 | 46,659 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 5,215 | 1,602 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (48) | (4) |
Debt Securities, Available-for-sale | 152,408 | 48,257 |
U.S. govt. sponsored agency securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 14,936 | 19,872 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 447 | 283 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (47) | (77) |
Debt Securities, Available-for-sale | 15,336 | 20,078 |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 127,670 | 118,724 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 5,510 | 2,045 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (338) | (182) |
Debt Securities, Available-for-sale | 132,842 | 120,587 |
Asset-backed securities | ||
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 39,663 | 16,958 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,111 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (91) | (71) |
Debt Securities, Available-for-sale | 40,683 | 16,887 |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, at amortized cost | 1,050 | 1,050 |
Securities held to maturity, fair value | 1,050 | 1,050 |
Securities available for sale: | ||
Debt Securities, Available-for-sale, Amortized Cost | 20,550 | 4,749 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 147 | 138 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | |
Debt Securities, Available-for-sale | $ 20,697 | $ 4,886 |
Note 3 - Investment Securitie_4
Note 3 - Investment Securities - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Securities held to maturity, less than 12 months, fair value | $ 8,407 | $ 509 |
Securities held to maturity, less than 12 months, gross unrealized losses | (248) | (1) |
Securities held to maturity, 12 months or more, fair value | 10,047 | |
Securities held to maturity, 12 months or more, gross unrealized losses | (142) | |
Securities held to maturity, fair value | 8,407 | 10,556 |
Securities held to maturity, gross unrealized losses | (248) | (143) |
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 57,742 | 20,829 |
Securities available for sale, less than 12 months, gross unrealized losses | (485) | (110) |
Securities available for sale, 12 months or more, fair value | 9,945 | 20,703 |
Securities available for sale, 12 months or more, gross unrealized losses | (39) | (225) |
Securities available for sale, fair value | 67,687 | 41,532 |
Securities available for sale, gross unrealized losses | (524) | (335) |
Municipal securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 10,110 | |
Securities available for sale, less than 12 months, gross unrealized losses | (48) | |
Securities available for sale, 12 months or more, fair value | 0 | 724 |
Securities available for sale, 12 months or more, gross unrealized losses | 0 | (4) |
Securities available for sale, fair value | 10,110 | 724 |
Securities available for sale, gross unrealized losses | (48) | (4) |
U.S. govt. sponsored agency securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 3,199 | 1,431 |
Securities available for sale, less than 12 months, gross unrealized losses | (47) | (21) |
Securities available for sale, 12 months or more, fair value | 2,117 | |
Securities available for sale, 12 months or more, gross unrealized losses | (56) | |
Securities available for sale, fair value | 3,199 | 3,548 |
Securities available for sale, gross unrealized losses | (47) | (77) |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 37,549 | 2,263 |
Securities available for sale, less than 12 months, gross unrealized losses | (338) | (17) |
Securities available for sale, 12 months or more, fair value | 17,862 | |
Securities available for sale, 12 months or more, gross unrealized losses | (165) | |
Securities available for sale, fair value | 37,549 | 20,125 |
Securities available for sale, gross unrealized losses | (338) | (182) |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 6,884 | 16,886 |
Securities available for sale, less than 12 months, gross unrealized losses | (52) | (71) |
Securities available for sale, 12 months or more, fair value | 9,945 | |
Securities available for sale, 12 months or more, gross unrealized losses | (39) | |
Securities available for sale, fair value | 16,829 | 16,886 |
Securities available for sale, gross unrealized losses | $ (91) | (71) |
Other Securities | ||
Securities available for sale: | ||
Securities available for sale, less than 12 months, fair value | 249 | |
Securities available for sale, less than 12 months, gross unrealized losses | (1) | |
Securities available for sale, fair value | 249 | |
Securities available for sale, gross unrealized losses | $ (1) |
Note 3 - Investment Securitie_5
Note 3 - Investment Securities - Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities | |||
Proceeds from sales of securities | $ 38,562 | $ 30,055 | $ 1,938 |
Gross gains from sales of securities | 2,553 | 176 | |
Gross losses from sales of securities | $ (69) | $ (206) |
Note 3 - Investment Securitie_6
Note 3 - Investment Securities - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities held to maturity: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 3,417 | |
Securities held to maturity, due in one year or less, fair value | 3,443 | |
Securities held to maturity, due after one year through five years, amortized cost | 34,396 | |
Securities held to maturity, due after one year through five years, fair value | 35,103 | |
Securities held to maturity, due after five years, amortized cost | 438,352 | |
Securities held to maturity, due after five years, fair value | 482,731 | |
Securities held to maturity, amortized cost | 476,165 | |
Securities held to maturity, fair value | 521,277 | $ 426,545 |
Securities available for sale: | ||
Securities available for sale, due in one year or less, amortized cost | 2,369 | |
Securities available for sale, Due in one year or less, fair value | 2,373 | |
Securities available for sale, due after one year through five years, amortized cost | 13,970 | |
Securities available for sale, Due after one year through five years, fair value | 14,328 | |
Securities available for sale, due after five years, amortized cost | 166,388 | |
Securities available for sale, Due after five years, fair value | 171,740 | |
Securities available for sale, single maturity, amortized cost | 182,727 | |
Securities available for sale, single maturity, fair value | 188,441 | |
Securities available for sale, amortized cost | 350,060 | 206,962 |
Securities available for sale, fair value | 361,966 | 210,695 |
Callable Securities [Member] | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 145,188 | |
Securities available for sale, fair value | 150,183 | |
Municipal securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 520,227 | 425,495 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 147,241 | 46,659 |
Securities available for sale, fair value | 152,408 | 48,257 |
Municipal securities | Callable Securities [Member] | ||
Securities held to maturity: | ||
Securities held to maturity, callable, amortized cost | 227,773 | |
Securities held to maturity, callable, fair value | 236,134 | |
Securities available for sale: | ||
Securities available for sale, callable, amortized cost | 138,688 | |
Securities available for sale, callable, fair value | 143,536 | |
Asset-backed securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 39,663 | 16,958 |
Securities available for sale, fair value | 40,683 | 16,887 |
Securities available for sale, callable, amortized cost | 39,663 | |
Securities available for sale, callable, fair value | 40,683 | |
Residential mortgage-backed and related securities | ||
Securities available for sale: | ||
Securities available for sale, amortized cost | 127,670 | 118,724 |
Securities available for sale, fair value | 132,842 | 120,587 |
Securities available for sale, callable, amortized cost | 127,670 | |
Securities available for sale, callable, fair value | 132,842 | |
Other Securities | ||
Securities held to maturity: | ||
Securities held to maturity, fair value | 1,050 | 1,050 |
Securities available for sale: | ||
Securities available for sale, amortized cost | 20,550 | 4,749 |
Securities available for sale, fair value | 20,697 | $ 4,886 |
Securities available for sale, callable, amortized cost | 6,500 | |
Securities available for sale, callable, fair value | $ 6,647 |
Note 4 - Loans_Leases Receiva_3
Note 4 - Loans/Leases Receivable (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)itemleaseloanstate | Dec. 31, 2019USD ($)leasecontractitem | Dec. 31, 2018USD ($) | |
Loans and leases | $ 4,243,791,000 | $ 3,681,346,000 | |
Loans receivable held for sale | 3,758,000 | 3,673,000 | |
Nonaccrual Loans/Leases | 13,940,000 | 7,902,000 | |
Accruing TDRs | 1,700,000 | 1,700,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,022,000 | $ 1,093,000 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | 2 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 44,000 | $ 66,000 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 266,000 | $ 52,000 | |
Number of Loans / Leases | 4,000 | 15,000 | |
Number of TDRs restructured and written off | item | 5 | 1 | |
Threshold for Related Party Loans Evaluated | $ 60,000 | $ 60,000 | $ 60,000 |
Accruing TDRs | 1,700,000 | 1,700,000 | |
Accruing Past Due 90 Days or More | $ 3,000 | 33,000 | |
Financing Receivable, Modification, Number of Contracts | 197,000,000 | ||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | $ 28,000,000 | ||
Number of states holding investments | state | 50 | ||
m2 Lease Funds, LLC | |||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | $ 7,000,000 | ||
Loan Relief Program | |||
Financing Receivable, Modification, Number of Contracts | 126 | ||
Financing Receivable, Loan Modification, Not Treated as Troubled Debt Restructuring | $ 21,000,000 | ||
Financial Receivables Loan Modification, Percent | 0.66% | ||
Nonaccrual [Member] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 880,000 | $ 121,000 | |
Number of Loans / Leases | 2 | 3 | |
Troubled Debt Restructurings [Member] | |||
Nonaccrual Loans/Leases | $ 984,000 | ||
Accruing Past Due 90 Days or More | $ 747,000 | ||
Residential Portfolio Segment [Member] | |||
Loans and leases | 252,121,000 | 239,904,000 | |
Financing Receivable, Held-for-Sale | 3,800,000 | 3,700,000 | |
Nonaccrual Loans/Leases | 1,022,000 | 706,000 | |
Residential Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | |||
Accruing Past Due 90 Days or More | 31,000 | ||
Commercial Portfolio Segment [Member] | |||
Loans and leases | 1,726,723,000 | 1,507,825,000 | |
Nonaccrual Loans/Leases | 4,807,000 | 1,236,000 | |
Commercial Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | |||
Accruing Past Due 90 Days or More | 98,000 | ||
Commercial Portfolio Segment [Member] | m2 Lease Funds, LLC | |||
Loans and leases | 171,500,000 | 142,000,000 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Loans and leases | 2,107,629,000 | 1,736,396,000 | |
Commercial Real Estate Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | |||
Nonaccrual Loans/Leases | $ 836,000 | ||
Accruing Past Due 90 Days or More | 269,000 | ||
Direct financing leases | |||
Number of Leases | lease | 3 | ||
Loss related to unguaranteed residual values of leases | $ 0 | 0 | $ 0 |
Loans and leases | 66,016,000 | 87,869,000 | |
Nonaccrual Loans/Leases | 406,000 | 1,517,000 | |
Direct financing leases | Troubled Debt Restructurings [Member] | |||
Nonaccrual Loans/Leases | 100,000 | ||
Accruing Past Due 90 Days or More | 294,000 | ||
Consumer Portfolio Segment [Member] | |||
Loans and leases | 91,302,000 | 109,352,000 | |
Nonaccrual Loans/Leases | 205,000 | 556,000 | |
Accruing Past Due 90 Days or More | 3,000 | 33,000 | |
Consumer Portfolio Segment [Member] | Troubled Debt Restructurings [Member] | |||
Nonaccrual Loans/Leases | 48,000 | ||
Accruing Past Due 90 Days or More | $ 55,000 | ||
No Lease End Option Rider [Member] | Direct financing leases | |||
Number of Leases | lease | 6 | ||
Lease residual values | $ 239,000 | $ 547,000 |
Note 4 - Loans_Leases Receiva_4
Note 4 - Loans/Leases Receivable - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Gross loans/leases receivable | $ 4,251,129 | $ 3,690,205 | ||
Less allowance | (84,376) | (36,001) | $ (39,847) | $ (34,356) |
Net loans/leases receivable | 4,166,753 | 3,654,204 | ||
Plus deferred loan/lease origination costs, net of fees. | 7,338 | 8,859 | ||
Loans and leases receivable | 4,243,791 | 3,681,346 | ||
Commercial Portfolio Segment [Member] | ||||
Less allowance | (35,421) | (16,072) | (16,420) | (14,323) |
Loans and leases receivable | 1,726,723 | 1,507,825 | ||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Loans and leases receivable | 541,455 | 378,797 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Less allowance | (42,161) | (15,379) | (17,719) | (13,963) |
Loans and leases receivable | 2,107,629 | 1,736,396 | ||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Loans and leases receivable | 541,455 | 378,797 | ||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||||
Loans and leases receivable | 496,471 | 443,989 | ||
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||
Loans and leases receivable | 1,069,703 | 913,610 | ||
Direct financing leases | ||||
Net minimum lease payments to be received | 72,940 | 97,025 | ||
Estimated unguaranteed residual values of leased assets | 239 | 547 | ||
Unearned lease/residual income | (7,163) | (9,703) | ||
Gross loans/leases receivable | 67,088 | 89,761 | ||
Less allowance | (1,764) | (1,464) | (1,792) | (2,382) |
Net loans/leases receivable | 65,324 | 88,297 | ||
Plus deferred loan/lease origination costs, net of fees. | 1,072 | 1,892 | ||
Loans and leases receivable | 66,016 | 87,869 | ||
Residential Portfolio Segment [Member] | ||||
Less allowance | (3,732) | (1,948) | (2,557) | (2,466) |
Loans and leases receivable | 252,121 | 239,904 | ||
Residential Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||||
Loans and leases receivable | 1,069,703 | 913,610 | ||
Consumer Portfolio Segment [Member] | ||||
Less allowance | (1,298) | (1,138) | $ (1,359) | $ (1,222) |
Loans and leases receivable | $ 91,302 | $ 109,352 |
Note 4 - Loans_Leases Receiva_5
Note 4 - Loans/Leases Receivable - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at the beginning of the period | $ (6,435) | $ (10,794) | $ (6,471) |
Discount added at acquisition | (8,093) | ||
Reclassification of nonaccretable discount to accretable | (530) | (275) | (1,362) |
Reclassification of nonaccretable discount to allowance | 353 | ||
Accretion recognized | 3,473 | 4,634 | 5,132 |
Balance at the end of the period | (3,139) | (6,435) | (10,794) |
PCI Loans | |||
Balance at the beginning of the period | (57) | (667) | (191) |
Discount added at acquisition | (293) | ||
Reclassification of nonaccretable discount to accretable | (530) | (275) | (892) |
Accretion recognized | 587 | 885 | 709 |
Balance at the end of the period | (57) | (667) | |
Performing Loans | |||
Balance at the beginning of the period | (6,378) | (10,127) | (6,280) |
Discount added at acquisition | (7,800) | ||
Reclassification of nonaccretable discount to accretable | (470) | ||
Reclassification of nonaccretable discount to allowance | 353 | ||
Accretion recognized | 2,886 | 3,749 | 4,423 |
Balance at the end of the period | $ (3,139) | $ (6,378) | $ (10,127) |
Note 4 - Loans_Leases Receiva_6
Note 4 - Loans/Leases Receivable - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current | $ 4,225,516 | $ 3,659,453 |
Accruing Past Due 90 Days or More | 3 | 33 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 13,940 | 7,902 |
Loans and leases | $ 4,243,791 | $ 3,681,346 |
Current as a percentage of total loan/lease portfolio | 99.57% | 99.41% |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0.00% | 0.00% |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.33% | 0.21% |
Loans and leases as a percentage of total loan/lease portfolio | 100.00% | 100.00% |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | $ 3,591 | $ 12,638 |
Past due as a percentage of total loan/lease portfolio | 0.08% | 0.34% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 741 | $ 1,320 |
Past due as a percentage of total loan/lease portfolio | 0.02% | 0.04% |
Commercial Portfolio Segment [Member] | ||
Current | $ 1,720,058 | $ 1,499,891 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,807 | 1,236 |
Loans and leases | 1,726,723 | 1,507,825 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 541,455 | 378,797 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 1,535 | 6,126 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 323 | 572 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 2,107,629 | 1,736,396 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 496,459 | 443,707 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 12 | 34 |
Loans and leases | 496,471 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Current | 541,455 | 375,940 |
Loans and leases | 541,455 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Current | 1,062,215 | 909,684 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 7,488 | 3,853 |
Loans and leases | 1,069,703 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 177 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member] | ||
Past Due | 2,857 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 73 | |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Past Due | 71 | |
Direct financing leases | ||
Current | 64,918 | 85,636 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 406 | 1,517 |
Loans and leases | 66,016 | 87,869 |
Direct financing leases | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 501 | 463 |
Direct financing leases | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 191 | 253 |
Residential Portfolio Segment [Member] | ||
Current | 249,364 | 235,845 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,022 | 706 |
Loans and leases | 252,121 | 239,904 |
Residential Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,069,703 | 913,610 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 1,512 | 2,939 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | 223 | 414 |
Consumer Portfolio Segment [Member] | ||
Current | 91,047 | 108,750 |
Accruing Past Due 90 Days or More | 3 | 33 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 205 | 556 |
Loans and leases | 91,302 | 109,352 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past Due | 43 | 3 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past Due | $ 4 | $ 10 |
Note 4 - Loans_Leases Receiva_7
Note 4 - Loans/Leases Receivable - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accruing Past Due 90 Days or More | $ 3 | $ 33 |
Nonaccrual Loans/Leases | 13,940 | 7,902 |
Accruing TDRs | 1,700 | 1,700 |
Loans and Leases Receivable, Net of Deferred Income | $ 4,243,791 | $ 3,681,346 |
Percentage of Total NPLs | 100.00% | 100.00% |
Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | $ 3 | $ 33 |
Nonaccrual Loans/Leases | 13,940 | 7,902 |
Accruing TDRs | 741 | 979 |
Loans and Leases Receivable, Net of Deferred Income | $ 14,684 | $ 8,914 |
Percentage of Total NPLs | 100.00% | 100.00% |
Commercial Portfolio Segment [Member] | ||
Nonaccrual Loans/Leases | $ 4,807 | $ 1,236 |
Loans and Leases Receivable, Net of Deferred Income | 1,726,723 | 1,507,825 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 541,455 | 378,797 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 4,807 | 1,236 |
Accruing TDRs | 606 | 646 |
Loans and Leases Receivable, Net of Deferred Income | $ 5,413 | $ 1,882 |
Percentage of Total NPLs | 36.87% | 21.12% |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 2,107,629 | $ 1,736,396 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 12 | 34 |
Loans and Leases Receivable, Net of Deferred Income | 496,471 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 541,455 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 7,488 | 3,853 |
Loans and Leases Receivable, Net of Deferred Income | 1,069,703 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | 12 | 34 |
Loans and Leases Receivable, Net of Deferred Income | $ 12 | $ 34 |
Percentage of Total NPLs | 0.08% | 0.38% |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Nonaccrual Loans/Leases | $ 7,488 | $ 3,853 |
Loans and Leases Receivable, Net of Deferred Income | $ 7,488 | $ 3,853 |
Percentage of Total NPLs | 50.99% | 43.22% |
Direct financing leases | ||
Nonaccrual Loans/Leases | $ 406 | $ 1,517 |
Loans and Leases Receivable, Net of Deferred Income | 66,016 | 87,869 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 406 | 1,517 |
Accruing TDRs | 135 | 333 |
Loans and Leases Receivable, Net of Deferred Income | $ 541 | $ 1,850 |
Percentage of Total NPLs | 3.68% | 20.75% |
Residential Portfolio Segment [Member] | ||
Nonaccrual Loans/Leases | $ 1,022 | $ 706 |
Loans and Leases Receivable, Net of Deferred Income | 252,121 | 239,904 |
Residential Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,069,703 | 913,610 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Nonaccrual Loans/Leases | 1,022 | 706 |
Loans and Leases Receivable, Net of Deferred Income | $ 1,022 | $ 706 |
Percentage of Total NPLs | 6.96% | 7.92% |
Consumer Portfolio Segment [Member] | ||
Accruing Past Due 90 Days or More | $ 3 | $ 33 |
Nonaccrual Loans/Leases | 205 | 556 |
Loans and Leases Receivable, Net of Deferred Income | 91,302 | 109,352 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Accruing Past Due 90 Days or More | 3 | 33 |
Nonaccrual Loans/Leases | 205 | 556 |
Loans and Leases Receivable, Net of Deferred Income | $ 208 | $ 589 |
Percentage of Total NPLs | 1.42% | 6.61% |
Note 4 - Loans_Leases Receiva_8
Note 4 - Loans/Leases Receivable - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance | $ 36,001 | $ 39,847 | $ 36,001 | $ 39,847 | $ 34,356 | ||||||||
Provision for loan/lease losses | $ 7,080 | $ 20,342 | $ 19,915 | 8,367 | $ 979 | $ 2,012 | $ 1,941 | 2,134 | 55,704 | 7,066 | 12,658 | ||
Reclassification of allowance for loans and leases relating to assets held for sale. | (6,122) | ||||||||||||
Loans/leases charged off | (8,383) | (5,134) | (7,919) | ||||||||||
Recoveries on loans/leases previously charged off | 1,054 | 772 | 752 | ||||||||||
Balance | 84,376 | 36,001 | 84,376 | 36,001 | 39,847 | ||||||||
Allowance for impaired loans/leases | $ 2,680 | $ 660 | |||||||||||
Allowance for nonimpaired loans/leases | 81,696 | 35,341 | |||||||||||
Less allowance for estimated losses on loans/leases | 84,376 | 36,001 | 36,001 | 39,847 | 36,001 | 39,847 | 34,356 | 84,376 | 36,001 | ||||
Impaired loans/leases | 14,628 | 8,661 | |||||||||||
Nonimpaired loans/leases | 4,229,163 | 3,672,685 | |||||||||||
Loans and leases | $ 4,243,791 | $ 3,681,346 | |||||||||||
Allowance as a percentage of impaired loans/leases | 18.32% | 7.62% | |||||||||||
Allowance as a percentage of nonimpaired loans/leases | 1.93% | 0.96% | |||||||||||
Total allowance as a percentage of total loans/leases | 1.99% | 0.98% | |||||||||||
Asset held-for-sale | |||||||||||||
Provision related to loans included in assets held for sale | 428 | ||||||||||||
Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | |||||||||||||
Provision for loan/lease losses | 6,638 | ||||||||||||
Commercial Portfolio Segment [Member] | |||||||||||||
Balance | 16,072 | 16,420 | 16,072 | 16,420 | 14,323 | ||||||||
Provision for loan/lease losses | 22,899 | 7,161 | |||||||||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (2,814) | ||||||||||||
Loans/leases charged off | (4,199) | (1,476) | (5,359) | ||||||||||
Recoveries on loans/leases previously charged off | 649 | 276 | 295 | ||||||||||
Balance | 35,421 | 16,072 | 35,421 | 16,072 | 16,420 | ||||||||
Allowance for impaired loans/leases | $ 650 | $ 170 | |||||||||||
Allowance for nonimpaired loans/leases | 34,771 | 15,902 | |||||||||||
Less allowance for estimated losses on loans/leases | 35,421 | 16,072 | 16,072 | 16,420 | 35,421 | 16,420 | 16,420 | 35,421 | 16,072 | ||||
Impaired loans/leases | 5,381 | 1,846 | |||||||||||
Nonimpaired loans/leases | 1,721,342 | 1,505,979 | |||||||||||
Loans and leases | $ 1,726,723 | $ 1,507,825 | |||||||||||
Allowance as a percentage of impaired loans/leases | 12.08% | 9.21% | |||||||||||
Allowance as a percentage of nonimpaired loans/leases | 2.02% | 1.06% | |||||||||||
Total allowance as a percentage of total loans/leases | 2.05% | 1.07% | |||||||||||
Commercial Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | |||||||||||||
Provision for loan/lease losses | 3,666 | ||||||||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||||||||
Balance | 15,379 | 17,719 | 15,379 | 17,719 | 13,963 | ||||||||
Provision for loan/lease losses | 28,671 | 4,094 | |||||||||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (2,392) | ||||||||||||
Loans/leases charged off | (2,071) | (1,722) | (387) | ||||||||||
Recoveries on loans/leases previously charged off | 182 | 208 | 49 | ||||||||||
Balance | 42,161 | 15,379 | 42,161 | 15,379 | 17,719 | ||||||||
Allowance for impaired loans/leases | $ 1,938 | $ 125 | |||||||||||
Allowance for nonimpaired loans/leases | 40,223 | 15,254 | |||||||||||
Less allowance for estimated losses on loans/leases | 42,161 | 15,379 | 15,379 | 17,719 | 42,161 | 17,719 | 13,963 | 42,161 | 15,379 | ||||
Impaired loans/leases | 7,487 | 3,585 | |||||||||||
Nonimpaired loans/leases | 2,100,142 | 1,732,811 | |||||||||||
Loans and leases | $ 2,107,629 | $ 1,736,396 | |||||||||||
Allowance as a percentage of impaired loans/leases | 25.88% | 3.49% | |||||||||||
Allowance as a percentage of nonimpaired loans/leases | 1.92% | 0.88% | |||||||||||
Total allowance as a percentage of total loans/leases | 2.00% | 0.89% | |||||||||||
Commercial Real Estate Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | |||||||||||||
Provision for loan/lease losses | 1,566 | ||||||||||||
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||||||||||||
Loans and leases | $ 496,471 | $ 443,989 | |||||||||||
Direct financing leases | |||||||||||||
Balance | 1,464 | 1,792 | 1,464 | 1,792 | 2,382 | ||||||||
Provision for loan/lease losses | 2,148 | 1,068 | |||||||||||
Loans/leases charged off | (1,993) | (1,647) | (2,002) | ||||||||||
Recoveries on loans/leases previously charged off | 145 | 190 | 344 | ||||||||||
Balance | 1,764 | 1,464 | 1,764 | 1,464 | 1,792 | ||||||||
Allowance for impaired loans/leases | 270 | ||||||||||||
Allowance for nonimpaired loans/leases | 1,764 | 1,194 | |||||||||||
Less allowance for estimated losses on loans/leases | 1,764 | 1,464 | 1,464 | 1,792 | 1,464 | 1,792 | 1,792 | 1,764 | 1,464 | ||||
Impaired loans/leases | 578 | 2,025 | |||||||||||
Nonimpaired loans/leases | 65,438 | 85,844 | |||||||||||
Loans and leases | $ 66,016 | $ 87,869 | |||||||||||
Allowance as a percentage of impaired loans/leases | 13.33% | ||||||||||||
Allowance as a percentage of nonimpaired loans/leases | 2.70% | 1.39% | |||||||||||
Total allowance as a percentage of total loans/leases | 2.67% | 1.67% | |||||||||||
Direct financing leases | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | |||||||||||||
Provision for loan/lease losses | 1,129 | ||||||||||||
Residential Portfolio Segment [Member] | |||||||||||||
Balance | 1,948 | 2,557 | 1,948 | 2,557 | 2,466 | ||||||||
Provision for loan/lease losses | 1,755 | 193 | |||||||||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (628) | ||||||||||||
Loans/leases charged off | (191) | (127) | |||||||||||
Recoveries on loans/leases previously charged off | 29 | 47 | 25 | ||||||||||
Balance | 3,732 | 1,948 | 3,732 | 1,948 | 2,557 | ||||||||
Allowance for impaired loans/leases | $ 20 | $ 15 | |||||||||||
Allowance for nonimpaired loans/leases | 3,712 | 1,933 | |||||||||||
Less allowance for estimated losses on loans/leases | 3,732 | 1,948 | 1,948 | 2,557 | 3,732 | 2,557 | 2,557 | 3,732 | 1,948 | ||||
Impaired loans/leases | 977 | 649 | |||||||||||
Nonimpaired loans/leases | 251,144 | 239,255 | |||||||||||
Loans and leases | $ 252,121 | $ 239,904 | |||||||||||
Allowance as a percentage of impaired loans/leases | 2.05% | 2.31% | |||||||||||
Allowance as a percentage of nonimpaired loans/leases | 1.48% | 0.81% | |||||||||||
Total allowance as a percentage of total loans/leases | 1.48% | 0.81% | |||||||||||
Residential Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | |||||||||||||
Provision for loan/lease losses | 163 | ||||||||||||
Consumer Portfolio Segment [Member] | |||||||||||||
Balance | 1,138 | 1,359 | 1,138 | 1,359 | 1,222 | ||||||||
Provision for loan/lease losses | 231 | 142 | |||||||||||
Reclassification of allowance for loans and leases relating to assets held for sale. | (288) | ||||||||||||
Loans/leases charged off | (120) | (98) | (44) | ||||||||||
Recoveries on loans/leases previously charged off | 49 | 51 | 39 | ||||||||||
Balance | 1,298 | 1,138 | 1,298 | 1,138 | 1,359 | ||||||||
Allowance for impaired loans/leases | $ 72 | $ 80 | |||||||||||
Allowance for nonimpaired loans/leases | 1,226 | 1,058 | |||||||||||
Less allowance for estimated losses on loans/leases | $ 1,298 | $ 1,138 | $ 1,138 | $ 1,359 | $ 1,298 | 1,359 | $ 1,222 | 1,298 | 1,138 | ||||
Impaired loans/leases | 205 | 556 | |||||||||||
Nonimpaired loans/leases | 91,097 | 108,796 | |||||||||||
Loans and leases | $ 91,302 | $ 109,352 | |||||||||||
Allowance as a percentage of impaired loans/leases | 35.12% | 14.39% | |||||||||||
Allowance as a percentage of nonimpaired loans/leases | 1.35% | 0.97% | |||||||||||
Total allowance as a percentage of total loans/leases | 1.42% | 1.04% | |||||||||||
Consumer Portfolio Segment [Member] | Provision For Loan Lease And Other Losses Excluding Provision Related To Loans Assets Held For Sale | |||||||||||||
Provision for loan/lease losses | $ 114 |
Note 4 - Loans_Leases Receiva_9
Note 4 - Loans/Leases Receivable - Composition Of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for Credit Losses, Individually Evaluated for Credit Losses | $ 2,680 | $ 660 | ||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 81,696 | 35,341 | ||
Allowance for Credit Losses, Total | 84,376 | 36,001 | $ 39,847 | $ 34,356 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 14,628 | 8,661 | ||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 4,229,163 | 3,672,685 | ||
Net loans/leases receivable | 4,166,753 | 3,654,204 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 650 | 170 | ||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 34,771 | 15,902 | ||
Allowance for Credit Losses, Total | 35,421 | 16,072 | 16,420 | 14,323 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 5,381 | 1,846 | ||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,721,342 | 1,505,979 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 1,938 | 125 | ||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 40,223 | 15,254 | ||
Allowance for Credit Losses, Total | 42,161 | 15,379 | 17,719 | 13,963 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 7,487 | 3,585 | ||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 2,100,142 | 1,732,811 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 72 | 80 | ||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,226 | 1,058 | ||
Allowance for Credit Losses, Total | 1,298 | 1,138 | $ 1,359 | $ 1,222 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 205 | 556 | ||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | $ 91,097 | $ 108,796 |
Note 4 - Loans_Leases Receiv_10
Note 4 - Loans/Leases Receivable - Impaired Loans Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Recorded investment with no specific allowance recorded | $ 3,924 | $ 4,912 | $ 7,938 |
Unpaid principal balance with no specific allowance recorded | 4,804 | 5,115 | 10,706 |
Average recorded investment with no specific allowance recorded | 2,576 | 4,009 | 6,208 |
Interest income recognized with no specific allowance recorded | 79 | 86 | 279 |
Interest income recognized for cash payments received with no specific allowance recorded | 79 | 86 | 279 |
Recorded investment with specific allowance recorded | 10,704 | 3,749 | 12,265 |
Unpaid principal balance with specific allowance recorded | 10,704 | 3,749 | 12,621 |
Average recorded investment with specific allowance recorded | 7,578 | 2,412 | 5,460 |
Interest income recognized with specific allowance recorded | 2 | 113 | |
Interest income recognized for cash payments received with specific allowance recorded | 2 | 113 | |
Recorded investment | 14,628 | 8,661 | 20,203 |
Unpaid principal balance | 15,508 | 8,864 | 23,327 |
Related allowance | 2,680 | 660 | 3,659 |
Average recorded investment | 10,154 | 6,421 | 11,668 |
Interest income recognized | 79 | 88 | 392 |
Interest income recognized for cash payments received | 79 | 88 | 392 |
Commercial Portfolio Segment [Member] | |||
Recorded investment with no specific allowance recorded | 1,361 | 1,607 | 1,846 |
Unpaid principal balance with no specific allowance recorded | 1,441 | 1,647 | 4,540 |
Average recorded investment with no specific allowance recorded | 1,002 | 970 | 2,346 |
Interest income recognized with no specific allowance recorded | 33 | 27 | 210 |
Interest income recognized for cash payments received with no specific allowance recorded | 33 | 27 | 210 |
Recorded investment with specific allowance recorded | 4,020 | 239 | 2,653 |
Unpaid principal balance with specific allowance recorded | 4,020 | 239 | 2,653 |
Average recorded investment with specific allowance recorded | 1,555 | 124 | 1,118 |
Interest income recognized with specific allowance recorded | 43 | ||
Interest income recognized for cash payments received with specific allowance recorded | 43 | ||
Recorded investment | 5,381 | 1,846 | 4,499 |
Unpaid principal balance | 5,461 | 1,886 | 7,193 |
Related allowance | 650 | 170 | 973 |
Average recorded investment | 2,557 | 1,094 | 3,464 |
Interest income recognized | 33 | 27 | 253 |
Interest income recognized for cash payments received | 33 | 27 | 253 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | |||
Recorded investment with no specific allowance recorded | 34 | 106 | |
Unpaid principal balance with no specific allowance recorded | 50 | 106 | |
Average recorded investment with no specific allowance recorded | 24 | 107 | |
Recorded investment with specific allowance recorded | 304 | ||
Unpaid principal balance with specific allowance recorded | 660 | ||
Average recorded investment with specific allowance recorded | 177 | ||
Recorded investment | 34 | 410 | |
Unpaid principal balance | 50 | 766 | |
Related allowance | 39 | ||
Average recorded investment | 24 | 284 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Recorded investment with no specific allowance recorded | 507 | ||
Unpaid principal balance with no specific allowance recorded | 507 | ||
Average recorded investment with no specific allowance recorded | 101 | ||
Recorded investment with specific allowance recorded | 149 | ||
Unpaid principal balance with specific allowance recorded | 149 | ||
Average recorded investment with specific allowance recorded | 159 | ||
Recorded investment | 656 | ||
Unpaid principal balance | 656 | ||
Related allowance | 33 | ||
Average recorded investment | 260 | ||
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | |||
Recorded investment with no specific allowance recorded | 1,133 | 684 | 1,804 |
Unpaid principal balance with no specific allowance recorded | 1,933 | 686 | 1,804 |
Average recorded investment with no specific allowance recorded | 494 | 738 | 540 |
Interest income recognized with no specific allowance recorded | 29 | 29 | |
Interest income recognized for cash payments received with no specific allowance recorded | 29 | 29 | |
Recorded investment with specific allowance recorded | 6,354 | 2,867 | 7,577 |
Unpaid principal balance with specific allowance recorded | 6,354 | 2,867 | 7,577 |
Average recorded investment with specific allowance recorded | 5,726 | 1,958 | 3,055 |
Interest income recognized with specific allowance recorded | 58 | ||
Interest income recognized for cash payments received with specific allowance recorded | 58 | ||
Recorded investment | 7,487 | 3,551 | 9,381 |
Unpaid principal balance | 8,287 | 3,553 | 9,381 |
Related allowance | 1,938 | 125 | 2,052 |
Average recorded investment | 6,220 | 2,696 | 3,595 |
Interest income recognized | 29 | 29 | 58 |
Interest income recognized for cash payments received | 29 | 29 | 58 |
Direct financing leases | |||
Recorded investment with no specific allowance recorded | 578 | 1,642 | 1,929 |
Unpaid principal balance with no specific allowance recorded | 578 | 1,642 | 1,929 |
Average recorded investment with no specific allowance recorded | 483 | 1,322 | 2,193 |
Interest income recognized with no specific allowance recorded | 17 | 30 | 60 |
Interest income recognized for cash payments received with no specific allowance recorded | 17 | 30 | 60 |
Recorded investment with specific allowance recorded | 383 | 320 | |
Unpaid principal balance with specific allowance recorded | 383 | 320 | |
Average recorded investment with specific allowance recorded | 196 | 273 | |
Interest income recognized with specific allowance recorded | 2 | ||
Interest income recognized for cash payments received with specific allowance recorded | 2 | ||
Recorded investment | 578 | 2,025 | 2,249 |
Unpaid principal balance | 578 | 2,025 | 2,249 |
Related allowance | 270 | 194 | |
Average recorded investment | 483 | 1,518 | 2,466 |
Interest income recognized | 17 | 32 | 60 |
Interest income recognized for cash payments received | 17 | 32 | 60 |
Residential Portfolio Segment [Member] | |||
Recorded investment with no specific allowance recorded | 719 | 469 | 984 |
Unpaid principal balance with no specific allowance recorded | 719 | 614 | 1,058 |
Average recorded investment with no specific allowance recorded | 476 | 481 | 723 |
Interest income recognized with no specific allowance recorded | 9 | ||
Interest income recognized for cash payments received with no specific allowance recorded | 9 | ||
Recorded investment with specific allowance recorded | 258 | 180 | 1,126 |
Unpaid principal balance with specific allowance recorded | 258 | 180 | 1,126 |
Average recorded investment with specific allowance recorded | 227 | 72 | 553 |
Interest income recognized with specific allowance recorded | 12 | ||
Interest income recognized for cash payments received with specific allowance recorded | 12 | ||
Recorded investment | 977 | 649 | 2,110 |
Unpaid principal balance | 977 | 794 | 2,184 |
Related allowance | 20 | 15 | 257 |
Average recorded investment | 703 | 553 | 1,276 |
Interest income recognized | 21 | ||
Interest income recognized for cash payments received | 21 | ||
Consumer Portfolio Segment [Member] | |||
Recorded investment with no specific allowance recorded | 133 | 476 | 762 |
Unpaid principal balance with no specific allowance recorded | 133 | 476 | 762 |
Average recorded investment with no specific allowance recorded | 121 | 474 | 198 |
Recorded investment with specific allowance recorded | 72 | 80 | 136 |
Unpaid principal balance with specific allowance recorded | 72 | 80 | 136 |
Average recorded investment with specific allowance recorded | 70 | 62 | 125 |
Recorded investment | 205 | 556 | 898 |
Unpaid principal balance | 205 | 556 | 898 |
Related allowance | 72 | 80 | 111 |
Average recorded investment | $ 191 | $ 536 | $ 323 |
Note 4 - Loans_Leases Receiv_11
Note 4 - Loans/Leases Receivable - Amortized Cost Basis of Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans/Leases Receivable | ||
Amortized cost basis of collateral dependent loans, Individually evaluated for credit losses | $ 84,376 | $ 36,001 |
Note 4 - Loans_Leases Receiv_12
Note 4 - Loans/Leases Receivable - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and leases | $ 4,243,791 | $ 3,681,346 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,726,723 | 1,507,825 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 541,455 | 378,797 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | 1,555,217 | 1,365,847 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans and leases | 1,506,578 | 1,334,446 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans and leases | 23,929 | 12,962 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans and leases | 24,710 | 18,439 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and leases | 2,107,629 | 1,736,396 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 496,471 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and leases | 541,455 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,069,703 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 496,471 | 443,989 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Construction Loans [Member] | ||
Loans and leases | 541,455 | 378,797 |
Commercial Real Estate Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 1,069,703 | 913,610 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 488,478 | 439,418 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member] | ||
Loans and leases | 530,297 | 378,572 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 999,931 | 896,206 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 3,087 | 3,044 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member] | ||
Loans and leases | 680 | 41 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 43,785 | 3,905 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 4,906 | 1,527 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member] | ||
Loans and leases | 10,478 | 184 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Other Non-owner Occupied Commercial Real Estate Loans [Member] | ||
Loans and leases | 25,987 | 13,499 |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | $ 3,662,846 | $ 3,102,243 |
As a % of Total | 100.00% | 100.00% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Pass [Member] | ||
Loans and leases | $ 3,525,284 | $ 3,048,642 |
As a % of Total | 96.00% | 98.28% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Special Mention [Member] | ||
Loans and leases | $ 71,481 | $ 19,952 |
As a % of Total | 1.95% | 0.64% |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Substandard [Member] | ||
Loans and leases | $ 66,081 | $ 33,649 |
As a % of Total | 1.80% | 1.08% |
Note 4 - Loans_Leases Receiv_13
Note 4 - Loans/Leases Receivable - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and leases | $ 4,243,791 | $ 3,681,346 |
Nonperforming Financial Instruments [Member] | ||
Loans and leases | 14,684 | 8,914 |
Commercial Portfolio Segment [Member] | ||
Loans and leases | 1,726,723 | 1,507,825 |
Commercial Portfolio Segment [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | 1,555,217 | 1,365,847 |
Commercial Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 171,506 | 141,978 |
Commercial Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 170,712 | 140,992 |
Commercial Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 794 | 986 |
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 5,413 | 1,882 |
Direct financing leases | ||
Loans and leases | 66,016 | 87,869 |
Direct financing leases | Delinquency Status [Member] | ||
Loans and leases | 66,016 | 87,869 |
Direct financing leases | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 65,475 | 86,019 |
Direct financing leases | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 541 | 1,850 |
Direct financing leases | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 541 | 1,850 |
Residential Portfolio Segment [Member] | ||
Loans and leases | 252,121 | 239,904 |
Residential Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 252,121 | 239,904 |
Residential Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 251,099 | 239,198 |
Residential Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 1,022 | 706 |
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 1,022 | 706 |
Consumer Portfolio Segment [Member] | ||
Loans and leases | 91,302 | 109,352 |
Consumer Portfolio Segment [Member] | Delinquency Status [Member] | ||
Loans and leases | 91,302 | 109,352 |
Consumer Portfolio Segment [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | 91,094 | 108,763 |
Consumer Portfolio Segment [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | 208 | 589 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans and leases | 208 | 589 |
Commercial and Commercial Real Estate Portfolio Segments [Member] | Internally Assigned Risk Rating [Member] | ||
Loans and leases | $ 3,662,846 | $ 3,102,243 |
As a % of Total | 100.00% | 100.00% |
Lease Residential and Consumer Portfolio Segments [Member] | Delinquency Status [Member] | ||
Loans and leases | $ 580,945 | $ 579,103 |
As a % of Total | 100.00% | 100.00% |
Lease Residential and Consumer Portfolio Segments [Member] | Performing Less Than Ninety Days Past Due [Member} | ||
Loans and leases | $ 578,380 | $ 574,972 |
As a % of Total | 99.56% | 99.29% |
Lease Residential and Consumer Portfolio Segments [Member] | Non Performing Greater Than Ninety Days Past Due [Member] | ||
Loans and leases | $ 2,565 | $ 4,131 |
As a % of Total | 0.44% | 0.71% |
Note 4 - Loans_Leases Receiv_14
Note 4 - Loans/Leases Receivable - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Number of Loans / Leases | 4 | 15 |
Pre-Modification Recorded Investment | $ 1,022 | $ 1,143 |
Post-Modification Recorded Investment | $ 1,022 | 1,093 |
Specific Allowance | $ 89 | |
Payment Deferral [Member] | ||
Number of Loans / Leases | loan | 3 | 13 |
Pre-Modification Recorded Investment | $ 187 | $ 500 |
Post-Modification Recorded Investment | $ 187 | 500 |
Specific Allowance | $ 35 | |
Direct financing leases | Payment Deferral [Member] | ||
Number of Loans / Leases | loan | 2 | 10 |
Pre-Modification Recorded Investment | $ 112 | $ 388 |
Post-Modification Recorded Investment | $ 112 | 388 |
Specific Allowance | $ 35 | |
Commercial Portfolio Segment [Member] | Payment Deferral [Member] | ||
Number of Loans / Leases | loan | 1 | 3 |
Pre-Modification Recorded Investment | $ 75 | $ 112 |
Post-Modification Recorded Investment | $ 75 | $ 112 |
Commercial Portfolio Segment [Member] | Principal Forgiveness [Member] | ||
Number of Loans / Leases | loan | 1 | |
Pre-Modification Recorded Investment | $ 587 | |
Post-Modification Recorded Investment | $ 537 | |
Consumer Portfolio Segment [Member] | Extended Maturity [Member] | ||
Number of Loans / Leases | loan | 1 | |
Pre-Modification Recorded Investment | $ 835 | |
Post-Modification Recorded Investment | $ 835 | |
Installment And Other Consumer [Member] | Extended Maturity [Member] | ||
Number of Loans / Leases | loan | 1 | |
Pre-Modification Recorded Investment | $ 56 | |
Post-Modification Recorded Investment | 56 | |
Specific Allowance | $ 54 |
Note 4 - Loans_Leases Receiv_15
Note 4 - Loans/Leases Receivable - Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans/Leases Receivable | |||
Balance, beginning | $ 112,830 | $ 125,496 | $ 66,442 |
Net increase (decrease) due to change in related parties | (1,601) | (12,161) | 41,797 |
Advances | 43,238 | 98,708 | 43,453 |
Repayments | (54,106) | (99,213) | (26,196) |
Balance, ending | $ 100,361 | $ 112,830 | $ 125,496 |
Note 4 - Loans_Leases Receiv_16
Note 4 - Loans/Leases Receivable - Concentration by Industries (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable, Gross | $ 4,251,129 | $ 3,690,205 |
Lessors of Non-residential Buildings [Member] | ||
Loans and Leases Receivable, Gross | $ 591,398 | $ 574,058 |
Percentage of total loans/leases | 14.00% | 17.00% |
Lessors of Residential Buildings [Member] | ||
Loans and Leases Receivable, Gross | $ 1,134,178 | $ 745,770 |
Percentage of total loans/leases | 27.00% | 22.00% |
Administration of Urban Planning and Community and Rural Development [Member] | ||
Loans and Leases Receivable, Gross | $ 138,514 | $ 133,157 |
Percentage of total loans/leases | 3.00% | 4.00% |
Note 5 - Premises and Equipme_3
Note 5 - Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Premises and Equipment | ||
Lease expenses | $ 662 | $ 732 |
Right of use assets | 1,700 | 1,900 |
Increase in ROU assets capitalized | 0 | |
Operating lease liability | $ 1,700 | $ 1,900 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Interest income from direct financing lease | $ 5,100 | $ 6,100 |
Net investment in direct financing lease | $ 65,300 | $ 88,300 |
Note 5 - Premises and Equipme_4
Note 5 - Premises and Equipment - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Premises and Equipment | ||
Land | $ 13,403 | $ 13,632 |
Buildings (useful lives 15 to 50 years) | 67,844 | 66,070 |
Furniture and equipment (useful lives 3 to 10 years) | 42,667 | 40,228 |
Premises and equipment | 123,914 | 119,930 |
Less accumulated depreciation | 51,221 | 46,071 |
Premises and equipment, net | $ 72,693 | $ 73,859 |
Note 5 - Premises and Equipme_5
Note 5 - Premises and Equipment - Components of Premises and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Building [Member] | Minimum | ||
Useful lives (Year) | 15 years | 15 years |
Building [Member] | Maximum | ||
Useful lives (Year) | 50 years | 50 years |
Furniture and Fixtures [Member] | Minimum | ||
Useful lives (Year) | 3 years | 3 years |
Furniture and Fixtures [Member] | Maximum | ||
Useful lives (Year) | 10 years | 10 years |
Note 5 - Premises and Equipme_6
Note 5 - Premises and Equipment - Maturities of operating lease liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 323 |
2022 | 256 |
2023 | 200 |
2024 | 144 |
2025 | 153 |
Thereafter | 703 |
Total | $ 1,779 |
Note 5 - Premises and Equipme_7
Note 5 - Premises and Equipment - Contractual Maturities of Sales-type and Direct Financing Lease Receivables (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Year ending December 31: | |
2021 | $ 3,879 |
2022 | 14,983 |
2023 | 21,059 |
2024 | 17,248 |
2025 | 14,780 |
Thereafter | 991 |
Total lease payments receivable | 72,940 |
Unguaranteed residual values | 239 |
Unearned lease/residual income | (7,163) |
Total lease payments receivable, net of residual value and income | 66,016 |
Plus deferred origination costs, net of fees | 1,072 |
Total lease payments receivable, Including deferred origination fee | 67,088 |
Less allowance | (1,764) |
Total lease payments receivable | $ 65,324 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangibles - Goodwill (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Balance at the beginning of period | $ 74,748 | $ 74,748 | $ 77,832 | $ 28,334 | |||
Acquisition | 49,741 | ||||||
Goodwill impairment | $ 0 | $ 0 | (500) | (3,000) | |||
Balance at the end of period | 74,066 | 74,748 | 77,832 | ||||
Asset held-for-sale | Bates Companies | |||||||
Sale | (182) | ||||||
Springfield Bancshares | |||||||
Acquisition | 45,975 | ||||||
Bates Companies | |||||||
Acquisition | 3,766 | ||||||
Acquisition - measurement period adjustment | (84) | ||||||
Goodwill impairment | $ (3,000) | $ (500) | (500) | $ (3,000) | |||
Balance at the end of period | $ 3,700 | ||||||
Guaranty Bank [Member] | |||||||
Acquisition - measurement period adjustment | $ (243) |
Note 6 - Goodwill and Intangi_4
Note 6 - Goodwill and Intangibles - Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 74,066 | $ 74,748 | $ 77,832 | $ 28,334 |
Other Segments | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 682 | 3,766 | ||
Commercial Banking | QCBT | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 3,223 | 3,223 | 3,223 | |
Commercial Banking | CRBT | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 14,980 | 14,980 | 14,980 | |
Commercial Banking | CSB | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 9,888 | 9,888 | 9,888 | |
Commercial Banking | SFCB | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 45,975 | $ 45,975 | $ 45,975 |
Note 6 - Goodwill and Intangi_5
Note 6 - Goodwill and Intangibles - Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at the beginning of period | $ 14,970 | $ 17,450 | ||||
Amortization expense | (2,149) | (2,266) | $ (1,692) | |||
Balance at the end of the period | 11,381 | 14,970 | 17,450 | |||
Net book value | 14,970 | 17,450 | 17,450 | $ 11,381 | $ 14,970 | $ 17,450 |
Core Deposits [Member] | ||||||
Balance at the beginning of period | 13,466 | 15,595 | 9,079 | |||
Amortization expense | (2,085) | (2,129) | (1,692) | |||
Balance at the end of the period | 11,381 | 13,466 | 15,595 | |||
Gross carrying amount | 19,255 | 19,255 | 19,255 | |||
Accumulated amortization | (7,874) | (5,789) | (3,660) | |||
Net book value | $ 11,381 | $ 15,595 | 15,595 | $ 11,381 | $ 13,466 | $ 15,595 |
Core Deposits [Member] | Springfield Bancshares | ||||||
Merger | $ 8,208 |
Note 6 - Goodwill and Intangi_6
Note 6 - Goodwill and Intangibles - Core Deposit Intangibles by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | $ 11,381 | $ 14,970 | $ 17,450 | |
Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | 11,381 | 13,466 | 15,595 | $ 9,079 |
CRBT | Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | 2,189 | 2,684 | 3,186 | |
CSB | Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | 3,305 | 3,980 | 4,675 | |
SFCB | Core Deposits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Core deposit intangible | $ 5,887 | $ 6,802 | $ 7,734 |
Note 6 - Goodwill and Intangi_7
Note 6 - Goodwill and Intangibles - Estimated Amortization Expense of Core Deposit Intangible (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Net book value | $ 11,381 | $ 14,970 | $ 17,450 | |
Core Deposits [Member] | ||||
2021 | 2,032 | |||
2022 | 1,971 | |||
2023 | 1,776 | |||
2024 | 1,623 | |||
2025 | 1,535 | |||
Thereafter | 2,444 | |||
Net book value | $ 11,381 | 13,466 | 15,595 | $ 9,079 |
Customer Lists [Member] | ||||
Net book value | $ 1,504 | $ 1,855 |
Note 6 - Goodwill and Intangi_8
Note 6 - Goodwill and Intangibles - Changes in customer list intangible (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at the beginning of period | $ 14,970 | $ 17,450 | |
Intangibles amortization | 2,149 | 2,266 | $ 1,692 |
Balance at the end of the period | 11,381 | 14,970 | 17,450 |
Customer Lists [Member] | |||
Balance at the beginning of period | 1,504 | 1,855 | |
Intangibles amortization | (64) | (137) | |
Balance at the end of the period | 1,504 | $ 1,855 | |
Bates Companies | Customer Lists [Member] | |||
Acquisition of Bates Companies - measurement period adjustment | $ (214) | ||
Bates Companies | Customer Lists [Member] | |||
Sale of Bates Companies | $ (1,440) |
Note 7 - Derivatives and Hedg_3
Note 7 - Derivatives and Hedging Activities (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)item | |
Deposits | $ 4,599,137 | $ 3,911,051 | $ 4,599,137 |
Cash Flow Hedging | |||
Deposits | $ 300,000 | $ 300,000 | |
Interest rate cap | |||
Number redesignated interest rate caps | item | 3 | 3 | |
Amount of derivatives redesignated | $ 800 | $ 800 | |
Loss on change in designation | $ 649 | ||
Interest rate cap | Cash Flow Hedging | |||
Initial premium paid upfront for the two caps | $ 3,500 | ||
Interest rate swap | |||
Termination of Interest rate swaps | 40,000 | ||
Loss on termination of interest rate swaps | $ 808 |
Note 7 - Derivatives and Hedg_4
Note 7 - Derivatives and Hedging Activities - Summary of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Assets | $ 222,757 | $ 87,827 |
Derivative Liabilities | (229,270) | (88,437) |
Interest rate cap | ||
Derivative Assets | 67 | |
Interest rate cap | Cash Flow Hedging | ||
Derivative Assets | 259 | 3,148 |
Interest rate swap | ||
Derivative Assets | 222,431 | 84,679 |
Derivative Liabilities | (222,431) | (84,679) |
Interest rate swap | Cash Flow Hedging | ||
Derivative Liabilities | $ (6,839) | $ (3,758) |
Note 7 - Derivatives and Hedg_5
Note 7 - Derivatives and Hedging Activities - Summary of Interest Rate Cap Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Assets | $ 222,757 | $ 87,827 |
Interest rate swap | ||
Derivative Assets | 222,431 | 84,679 |
Interest rate cap | ||
Derivative Assets | 67 | |
Cash Flow Hedging | Interest rate cap | ||
Derivative Assets | 259 | 3,148 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Fair Value - Asset | $ 3 | 112 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 5 | 218 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2023 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 3 | 109 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 15 | 214 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 31 | 401 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 15 | 201 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 46 | 337 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.75% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | ||
Notional Amount | $ 50,000 | |
Fair Value - Asset | $ 94 | 617 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Two Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.57% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Fair Value - Asset | $ 47 | 309 |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Derivative Instrument Four Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.80% | |
Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | Interest rate cap | ||
Notional Amount | $ 300,000 | |
Fair Value - Asset | 259 | 2,518 |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Interest rate swap | ||
Notional Amount | 39,000 | |
Fair Value - Liability | $ (6,839) | (3,758) |
Receive Rate | 2.48% | |
Pay Rate | 5.24% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | QCR Holdings Statutory Trust II | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (1,767) | (971) |
Receive Rate | 3.10% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | QCR Holdings Statutory Trust III | ||
Notional Amount | $ 8,000 | |
Fair Value - Liability | $ (1,414) | (777) |
Receive Rate | 3.10% | |
Pay Rate | 5.85% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | QCR Holdings Statutory Trust V | ||
Notional Amount | $ 10,000 | |
Fair Value - Liability | $ (1,721) | (944) |
Receive Rate | 1.79% | |
Pay Rate | 4.54% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Community National Statutory Trust II | ||
Notional Amount | $ 3,000 | |
Fair Value - Liability | $ (529) | (291) |
Receive Rate | 2.41% | |
Pay Rate | 5.17% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Community National Statutory Trust III | ||
Notional Amount | $ 3,500 | |
Fair Value - Liability | $ (616) | (339) |
Receive Rate | 1.97% | |
Pay Rate | 4.75% | |
Designated as Hedging Instrument | Other Liabilities. | Cash Flow Hedging | Guaranty Bankshares Statutory Trust I | ||
Notional Amount | $ 4,500 | |
Fair Value - Liability | $ (792) | (436) |
Receive Rate | 1.97% | |
Pay Rate | 4.75% | |
Not Designated as Hedging Instrument | Interest rate swap | ||
Derivative Assets | $ 222,431 | 84,679 |
Not Designated as Hedging Instrument | Other Assets | ||
Notional Amount | 75,000 | |
Derivative Assets | 67 | 630 |
Not Designated as Hedging Instrument | Other Assets | Derivative Instrument One Maturing 2023 [Member] | ||
Notional Amount | 25,000 | |
Derivative Assets | $ 2 | 96 |
Not Designated as Hedging Instrument | Other Assets | Derivative Instrument One Maturing 2023 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Not Designated as Hedging Instrument | Other Assets | Derivative Instrument One Maturing 2024 [Member] | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 15 | 202 |
Not Designated as Hedging Instrument | Other Assets | Derivative Instrument One Maturing 2024 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% | |
Not Designated as Hedging Instrument | Other Assets | Derivative Instrument One Maturing 2025 [Member] | ||
Notional Amount | $ 25,000 | |
Derivative Assets | $ 50 | $ 332 |
Not Designated as Hedging Instrument | Other Assets | Derivative Instrument One Maturing 2025 [Member] | London Interbank Offered Rate (LIBOR) | ||
Derivative, Basis Spread on Variable Rate | 1.90% |
Note 7 - Derivatives and Hedg_6
Note 7 - Derivatives and Hedging Activities - Summary of Interest Rate Swaps Derivatives (Details) - Designated as Hedging Instrument - Cash Flow Hedging $ in Thousands | Dec. 31, 2020USD ($) |
Interest rate cap | Other Assets | |
Notional Amount | $ 300,000 |
Interest rate swap | Other Liabilities. | |
Notional Amount | $ 39,000 |
Note 7 - Derivatives and Hedg_7
Note 7 - Derivatives and Hedging Activities - Changes in Fair Values of Derivative Financial Instruments (Details) - Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unrealized loss at beginning of period, net of tax | $ (3,915) | $ (1,276) |
Amount of loss recognized in other comprehensive income, net of tax | (5,406) | (3,061) |
Unrealized loss at end of period, net of tax | (7,632) | (3,915) |
Unhedging Caplet | ||
Amount reclassified from accumulated other comprehensive income | 513 | |
Swap | ||
Amount reclassified from accumulated other comprehensive income | 625 | |
Caplet Amortization | ||
Amount reclassified from accumulated other comprehensive income | $ 551 | $ 422 |
Note 7 - Derivatives and Hedg_8
Note 7 - Derivatives and Hedging Activities - Significantly Impact of operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Assets | $ 222,757 | $ 87,827 | |
Derivative Liabilities | 229,270 | 88,437 | |
Interest rate swap | |||
Derivative Assets | 222,431 | 84,679 | |
Derivative Liabilities | 222,431 | 84,679 | |
Fee Income On Derivative Contracts | 74,800 | 28,300 | $ 10,800 |
Not Designated as Hedging Instrument | Interest rate swap | |||
Derivative Asset, Notional Amount | 1,539,602 | 787,221 | |
Derivative Assets | 222,431 | 84,679 | |
Derivative Liability, Notional Amount | 1,539,602 | 787,221 | |
Derivative Liabilities | $ 222,431 | $ 84,679 |
Note 7 - Derivatives and Hedg_9
Note 7 - Derivatives and Hedging Activities - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Swapped loan portfolio loan-to-value percentage, including the potential swap exposure | 65.00% | |
Interest rate swap | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 224,930 | $ 98,555 |
Interest rate swap | Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 45,719 | |
Interest rate swap | U.S. govt. sponsored agency securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 3,628 | 3,541 |
Interest rate swap | Municipal securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 85,937 | 22,924 |
Interest rate swap | Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 89,646 | $ 72,090 |
Note 8 - Deposits (Details)
Note 8 - Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Aggregate amount of certificates of deposits, $250,000 minimum denomination | $ 169,100,000 | $ 293,400,000 |
Minimum denomination | 250,000 | |
Prepaid brokered and public time deposits | 29,200,000 | |
Loss on prepayment of brokered and public time deposits | 576,000 | |
Prepayment of brokered certificate of deposits | 0 | |
Federal Home Loan Bank of Des Moines [Member] | ||
FHLB advance | 110,500,000 | 47,400,000 |
Amount outstanding | $ 0 | $ 0 |
Note 8 - Deposits - Maturities
Note 8 - Deposits - Maturities of Certificates of Deposit (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits | |
2021 | $ 228,257 |
2022 | 61,450 |
2023 | 13,648 |
2024 | 12,684 |
2025 | 7,795 |
Thereafter | 136,825 |
Total | $ 460,659 |
Note 8 - Deposits - Public Enti
Note 8 - Deposits - Public Entity Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Collateralized by investment securities | $ 8,440 | $ 9,917 |
U.S. govt. sponsored agency securities | ||
Collateralized by investment securities | 3,668 | 6,135 |
Residential mortgage-backed and related securities | ||
Collateralized by investment securities | $ 4,772 | $ 3,782 |
Note 9 - Short-term Borrowing_2
Note 9 - Short-term Borrowings - Short-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Short-Term Borrowings | ||
Overnight repurchase agreements with customers | $ 2,193 | |
Federal funds purchased | $ 5,430 | 11,230 |
Short-term borrowings | $ 5,430 | $ 13,423 |
Note 9 - Short-term Borrowing_3
Note 9 - Short-term Borrowings - Overnight Repurchase Agreement Collateralized Investment Securities (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities sold under repurchase agreements | $ 517 | $ 3,420 |
Less: overcollateralized position | 517 | 1,227 |
Assets sold | 2,193 | |
U.S. govt. sponsored agency securities | ||
Securities sold under repurchase agreements | 1,964 | |
Residential mortgage-backed and related securities | ||
Securities sold under repurchase agreements | $ 517 | $ 1,456 |
Note 9 - Short-term Borrowing_4
Note 9 - Short-term Borrowings - Overnight Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Repurchase Agreements with Customers [Member] | ||
Average daily balance | $ 1,495 | $ 4,231 |
Average daily interest rate | 0.40% | 0.73% |
Maximum month-end balance | $ 2,377 | $ 4,177 |
Weighted average rate as of December 31 | 1.00% | |
Federal Funds Purchased [Member] | ||
Average daily balance | $ 19,573 | $ 12,594 |
Average daily interest rate | 0.36% | 2.56% |
Maximum month-end balance | $ 30,430 | $ 17,010 |
Weighted average rate as of December 31 | 0.06% | 1.50% |
Note 10 - FHLB Advances (Detail
Note 10 - FHLB Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
FHLB short term advances | $ 15,000 | $ 109,300 |
FHLB stock | 6,600 | 11,700 |
Prepaid FHLB advances | 55,300 | 30,300 |
Loss on prepayment of FHLB advances | $ 1,900 | $ 386 |
Minimum | ||
FHLB advances maturity period | 1 day | 1 day |
Minimum | Loans Receivable [Member] | ||
FHLB collateral maintenance levels | 125.00% | |
Maximum | ||
FHLB advances maturity period | 1 month | 1 month |
Maximum | Loans Receivable [Member] | ||
FHLB collateral maintenance levels | 333.00% | |
Collateral, Loans [Member] | ||
FHLB advance | $ 1,100,000 | $ 1,100,000 |
Collateral, Securities [Member] | ||
FHLB advance | $ 590 | $ 1,400 |
Note 10 - FHLB Advances - Matur
Note 10 - FHLB Advances - Maturity and Interest Rate Information on Advances from FHLB (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amount due - one to two years after balance sheet date | $ 15,000 | |
Weighted average interest rate at year-end - year two | 0.29% | |
Total FHLB advances, Amount due | $ 15,000 | |
Total FHLB advances, Weighted average interest rate at year-end | 0.29% | |
Federal Home Loan Bank, Advances, Putable Option [Member] | ||
Amount due within one year | $ 110,900 | |
Weighted average interest rate at year-end - next 12 months | 1.73% | |
Amount due - one to two years after balance sheet date | $ 5,000 | |
Weighted average interest rate at year-end - year two | 1.55% | |
Amount due - two to three years after balance sheet date | $ 23,400 | |
Weighted average interest rate at year-end - year three | 1.73% | |
Amount due - three to four years after balance sheet date | $ 20,000 | |
Weighted average interest rate at year-end - year four | 1.84% | |
Total FHLB advances, Amount due | $ 159,300 | |
Total FHLB advances, Weighted average interest rate at year-end | 1.74% |
Note 11 - Other Borrowings an_3
Note 11 - Other Borrowings and Unused Line of Credit - Wholesale Structured Repurchase - Narrative (Details) $ in Thousands | Sep. 14, 2020USD ($) | Feb. 12, 2019USD ($) | Jun. 30, 2019USD ($)agreement | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 40,210 | $ 40,210 | ||||||
FHLB term advances | 55,274 | 30,323 | ||||||
Loss on prepayment of structured repurchase agreement | $ (50) | (3,907) | (436) | |||||
Net proceeds after deducting underwriting discount and estimated expenses | $ 50,000 | $ 63,400 | 50,000 | 63,393 | ||||
Fixed rate | 5.375% | |||||||
Losses on liability extinguishment | $ 50 | 3,907 | 436 | |||||
Outstanding balance | $ 9,000 | |||||||
London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis points | 282.00% | |||||||
Revolving line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit | $ 25,000 | $ 20,000 | ||||||
Outstanding amount line of credit | $ 0 | |||||||
Revolving line of credit | Prime Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis points | 2.25% | |||||||
Term Notes Member | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis points | 3.00% | |||||||
Wholesale structured repurchase agreements | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of prepaid wholesale structured repurchase agreements | agreement | 2 | |||||||
Repayments of debt | $ 10,000 | |||||||
First wholesale structured repurchase agreements | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 5,000 | |||||||
Fixed rate | 2.58% | |||||||
Second wholesale structured repurchase agreements | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 20,000 | |||||||
Fixed rate | 2.46% |
Note 11 - Other Borrowings an_4
Note 11 - Other Borrowings and Unused Lines of Credit (Details) $ in Millions | Feb. 12, 2019 | Dec. 31, 2020USD ($)loan | Dec. 31, 2018USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019 |
Interest rate (as a percent) | 2.48% | 4.18% | ||||
Revolving line of credit | ||||||
Line of credit facility, maximum borrowing capacity | $ 25 | $ 20 | ||||
Interest rate (as a percent) | 5.50% | |||||
Outstanding amount line of credit | $ 0 | |||||
Percentage of the outstanding capital stock of the entity's bank subsidiaries used as collateral (as a percentage) | 100.00% | |||||
London Interbank Offered Rate (LIBOR) | ||||||
Variable interest rate (as a percent) | 282.00% | |||||
Term notes | ||||||
Number of term notes | loan | 2 | |||||
Other borrowings | $ 23.3 | |||||
Interest rate (as a percent) | 5.52% | |||||
Percentage of the outstanding capital stock of the entity's bank subsidiaries used as collateral (as a percentage) | 100.00% |
Note 11 - Other Borrowings an_5
Note 11 - Other Borrowings and Unused Lines of Credit - Unused Lines of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Unused lines of credit | $ 743,076 | $ 380,642 |
Secured Debt | ||
Unused lines of credit | 287,076 | 45,342 |
Unsecured Debt | ||
Unused lines of credit | $ 456,000 | $ 335,300 |
Note 12 - Subordinated Notes (D
Note 12 - Subordinated Notes (Details) $ in Thousands | Sep. 14, 2020USD ($) | Aug. 15, 2019 | Feb. 12, 2019USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 118,691 | $ 68,394 | |||
Gross proceeds | $ 65,000 | ||||
Proceeds from subordinated notes | $ 50,000 | $ 63,400 | 50,000 | 63,393 | |
Fixed rate | 5.375% | ||||
Redemption price percentage | 100.00% | 100.00% | |||
Fixed term | 5 years | ||||
Debt issuance costs | (1,309) | (1,606) | |||
Interest Rate Period One [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Fixed rate | 5.125% | ||||
Subordinated debenture dated 9/14/20 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 50,000 | ||||
Interest Rate | 5.125% | ||||
Subordinated debenture dated 2/1/19 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 65,000 | $ 65,000 | |||
Interest Rate | 5.375% | 5.375% | |||
Subordinated debenture dated 4/30/16 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 2,000 | $ 2,000 | |||
Interest Rate | 4.00% | 4.00% | |||
Subordinated debenture dated 9/15/16 [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Total Subordinated Debentures | $ 3,000 | $ 3,000 | |||
Interest Rate | 4.00% | 4.00% | |||
Revolving line of credit | |||||
Subordinated Borrowing [Line Items] | |||||
Retirement of subordinated debt | $ 21,300 | ||||
Outstanding amount line of credit | $ 0 | ||||
Springfield Bancshares | |||||
Subordinated Borrowing [Line Items] | |||||
Number of subordinated debentures assumed | item | 2 | ||||
Subordinated debentures fixed | 5 years | ||||
Debentures may be called after a minimum | 5 years | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Period Two [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | SOFR | ||||
Basis points | 500.00% | ||||
London Interbank Offered Rate (LIBOR) | |||||
Subordinated Borrowing [Line Items] | |||||
Basis points | 282.00% | ||||
Subordinated debentures | |||||
Subordinated Borrowing [Line Items] | |||||
Fair value of subordinated debentures | $ 4,800 | ||||
Subordinated debentures | Revolving line of credit | |||||
Subordinated Borrowing [Line Items] | |||||
Outstanding amount line of credit | $ 9,000 |
Note 13 - Junior Subordinated_3
Note 13 - Junior Subordinated Debentures (Details) | Feb. 12, 2019 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 01, 2017USD ($)loan | May 13, 2013USD ($)loan | Feb. 29, 2004USD ($) |
Debt Instrument, Face Amount | $ 40,210,000 | $ 40,210,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.48% | 4.18% | ||||
London Interbank Offered Rate (LIBOR) | ||||||
Basis points | 282.00% | |||||
Junior Subordinated Debt [Member] | ||||||
Repayment period (in years) | 30 years | |||||
Note Payable to QCR Holdings Capital Trust II [Member] | ||||||
Debt Instrument, Face Amount | $ 12,372,000 | |||||
Community National | ||||||
Number of assumed junior subordinated debentures | loan | 2 | |||||
Other borrowings | $ 4,200,000 | |||||
Guaranty Bank and Trust Company | ||||||
Number of assumed junior subordinated debentures | loan | 1 | |||||
Other borrowings | $ 3,900,000 |
Note 13 - Junior Subordinated_4
Note 13 - Junior Subordinated Debentures - Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Junior subordinated debentures | $ 37,993 | $ 37,838 |
Junior subordinated debentures | (2,217) | (2,372) |
Note Payable to QCR Holdings Capital Trust II [Member] | ||
Junior subordinated debentures | 10,310 | 10,310 |
Note Payable to Trust III [Member] | ||
Junior subordinated debentures | 8,248 | 8,248 |
Note Payable to Trust V [Member] | ||
Junior subordinated debentures | 10,310 | 10,310 |
Community National Trust II [Member] | ||
Junior subordinated debentures | 3,093 | 3,093 |
Community National Trust III [Member] | ||
Junior subordinated debentures | 3,609 | 3,609 |
Note Payable to Guaranty Bankshares Statutory Trust I [Member] | ||
Junior subordinated debentures | $ 4,640 | $ 4,640 |
Note 13 - Junior Subordinated_5
Note 13 - Junior Subordinated Debentures - Trust Preferred Securities (Details) - USD ($) $ in Thousands | Feb. 12, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Aggregate principal amount | $ 40,210 | $ 40,210 | |
Interest rate (as a percent) | 2.48% | 4.18% | |
London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 282.00% | ||
Trust Preferred Securities [Member] | Qcr Holdings Statutory Trust I I Member | |||
Date issued | February 2004 | ||
Aggregate principal amount | $ 10,310 | $ 10,310 | |
Interest rate (as a percent) | 3.10% | 4.79% | |
Trust Preferred Securities [Member] | Qcr Holdings Statutory Trust I I Member | London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 2.85% | ||
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust III [Member] | |||
Date issued | February 2004 | ||
Aggregate principal amount | $ 8,248 | $ 8,248 | |
Interest rate (as a percent) | 3.10% | 4.79% | |
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust III [Member] | London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 2.85% | ||
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust V [Member] | |||
Date issued | February 2006 | ||
Aggregate principal amount | $ 10,310 | $ 10,310 | |
Interest rate (as a percent) | 1.79% | 3.54% | |
Trust Preferred Securities [Member] | QCR Holdings Statutory Trust V [Member] | London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 1.55% | ||
Trust Preferred Securities [Member] | Community National Statutory Trust II [Member] | |||
Date issued | September 2004 | ||
Aggregate principal amount | $ 3,093 | $ 3,093 | |
Interest rate (as a percent) | 2.41% | 4.08% | |
Trust Preferred Securities [Member] | Community National Statutory Trust II [Member] | London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 2.17% | ||
Trust Preferred Securities [Member] | Community National Statutory Trust III [Member] | |||
Date issued | March 2007 | ||
Aggregate principal amount | $ 3,609 | $ 3,609 | |
Interest rate (as a percent) | 1.97% | 3.64% | |
Trust Preferred Securities [Member] | Community National Statutory Trust III [Member] | London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 1.75% | ||
Trust Preferred Securities [Member] | Guaranty Bankshares Statutory Trust I [Member] | |||
Date issued | May 2005 | ||
Aggregate principal amount | $ 4,640 | $ 4,640 | |
Interest rate (as a percent) | 1.97% | 3.64% | |
Trust Preferred Securities [Member] | Guaranty Bankshares Statutory Trust I [Member] | London Interbank Offered Rate (LIBOR) | |||
Variable interest rate (as a percent) | 1.75% |
Note 14 - Federal and State I_3
Note 14 - Federal and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized tax benefits that would impact effective tax rate | $ 1,400 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 277 | $ 232 | |
Effective income tax rate | 21.00% | 21.00% | 21.00% |
Domestic Tax Authority [Member] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | $ 3,000 | ||
State and Local Jurisdiction [Member] | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | $ 2,100 |
Note 14 - Federal and State I_4
Note 14 - Federal and State Income Taxes - Federal and State Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal and State Income Taxes | |||||||||||
Current | $ 27,237 | $ 8,255 | $ 2,723 | ||||||||
Deferred | (14,530) | 6,364 | 6,292 | ||||||||
Federal and state income tax expense | $ 4,009 | $ 4,016 | $ 2,798 | $ 1,884 | $ 6,560 | $ 3,573 | $ 3,073 | $ 1,413 | $ 12,707 | $ 14,619 | $ 9,015 |
Note 14 - Federal and State I_5
Note 14 - Federal and State Income Taxes - Reconciliation of the Expected Federal Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal and State Income Taxes | |||||||||||
Computed "expected" tax expense | $ 15,391 | $ 15,126 | $ 10,948 | ||||||||
Tax exempt income, net | (5,943) | (4,470) | (3,958) | ||||||||
Bank-owned life insurance | (308) | (360) | (343) | ||||||||
State income taxes, net of federal benefit, current year | 3,622 | 3,668 | 2,681 | ||||||||
Change in unrecognized tax benefits | 546 | (93) | (45) | ||||||||
Goodwill impairment | 105 | 630 | |||||||||
Intended liquidation of bank-owned life insurance | 790 | ||||||||||
Tax Credits | (456) | (705) | (154) | ||||||||
Acquisition costs | 227 | ||||||||||
Excess tax benefit on stock options exercised and restricted stock awards vested | (242) | (287) | (425) | ||||||||
Other | (215) | 320 | 84 | ||||||||
Federal and state income tax expense | $ 4,009 | $ 4,016 | $ 2,798 | $ 1,884 | $ 6,560 | $ 3,573 | $ 3,073 | $ 1,413 | $ 12,707 | $ 14,619 | $ 9,015 |
Computed "expected" tax expense (in percentage) | 21.00% | 21.00% | 21.00% | ||||||||
Tax exempt income, net (in percentage) | (8.10%) | (6.20%) | (7.60%) | ||||||||
Bank-owned life insurance (in percentage) | (0.40%) | (0.50%) | (0.60%) | ||||||||
State income taxes, net of federal benefit, current year (in percentage) | 4.90% | 5.10% | 5.20% | ||||||||
Change in unrecognized tax benefits (in percentage) | 0.70% | (0.10%) | (0.10%) | ||||||||
Goodwill impairment (in percentage) | 0.10% | 0.90% | |||||||||
Intended liquidation of bank-owned life insurance (in percentage) | 1.10% | ||||||||||
Tax credits (in percentage) | (0.60%) | (1.00%) | (0.30%) | ||||||||
Acquisition costs (in percentage) | 0.40% | ||||||||||
Excess tax benefit on stock options exercised and restricted stock awards vested (in percentage) | (0.30%) | (0.40%) | (0.80%) | ||||||||
Other (in percentage) | (0.30%) | 0.40% | 0.10% | ||||||||
Federal and state income tax expense (in percentage) | 17.30% | 20.30% | 17.30% |
Note 14 - Federal and State I_6
Note 14 - Federal and State Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Federal and State Income Taxes | ||
Balance, beginning | $ 1,254 | $ 1,249 |
Impact of tax positions taken during current year | 787 | 375 |
Gross increase related to tax positions of prior years | 39 | 44 |
Reduction as a result of a lapse of the applicable statute of limitations | (187) | (414) |
Balance, ending | $ 1,893 | $ 1,254 |
Note 14 - Federal and State I_7
Note 14 - Federal and State Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Historic tax credits | $ 68 | $ 68 |
Net unrealized losses on securities available for sale and derivative instruments | 126 | |
Compensation | 10,288 | 8,433 |
Loan/lease losses | 20,016 | 11,332 |
Net operating loss carryforwards, federal and state | 628 | 739 |
Other | 71 | 605 |
Deferred tax assets | 31,071 | 21,303 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available for sale and derivative instruments | 869 | |
Premises and equipment. | 5,737 | 4,616 |
Equipment financing leases | 13,373 | 16,252 |
Acquisition fair value adjustments | 3,351 | 3,963 |
Intended liquidation of bank-owned life insurance | 850 | |
Gain on sale of assets and liabilities of subsidiary | 794 | |
Investment accretion | 28 | 28 |
Deferred loan origination fees, net | 197 | 704 |
Other | 922 | 832 |
Deferred tax liabilities | 24,477 | 28,039 |
Net deferred tax liabilities | $ 6,594 | |
Net deferred tax liabilities | $ (6,736) |
Note 14 - Federal and State I_8
Note 14 - Federal and State Income Taxes - The Change in Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal and State Income Taxes | |||
Provision for income taxes | $ (14,530) | $ 6,364 | $ 6,292 |
Net deferred tax asset resulting from market value adjustments of acquisitions | (381) | (52) | |
Net deferred tax liabilities resulting from sale of bank subsidiary | 363 | (1,644) | |
Statement of stockholders' equity- Other comprehensive income (loss) | 837 | 1,433 | (1,000) |
Total | $ (13,330) | $ 5,772 | $ 5,240 |
Note 15 - Employee Benefit Pl_3
Note 15 - Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Percent of employee contributions matched | 4.50% | |||
Discretionary contributions | $ 0 | $ 0 | $ 0 | |
Deferred compensation liability, current and noncurrent | 24,713,000 | 19,474,000 | 15,029,000 | $ 12,347,000 |
Deferred compensation matching contributions | $ 3,959,000 | 2,474,000 | $ 1,407,000 | |
Minimum | ||||
Defined benefit plan eligible age limit | 18 years | |||
Minimum | Certain Executive Officers [Member] | ||||
Deferred compensation matching contributions | $ 10,000 | |||
Interest on deferred compensation amounts | 4.00% | |||
Maximum | Certain Executive Officers [Member] | ||||
Deferred compensation matching contributions | $ 25,000 | |||
Interest on deferred compensation amounts | 12.00% | |||
Certain Management Officers [Member] | ||||
Deferred compensation liability, current and noncurrent | $ 24,700,000 | $ 19,500,000 | ||
Number of monthly installment payments | 180 months | |||
Certain Management Officers [Member] | Minimum | ||||
Company matching contribution percent (as a percent) | 4.00% | |||
Interest on deferred compensation amounts | 4.00% | |||
Certain Management Officers [Member] | Maximum | ||||
Company matching contribution percent (as a percent) | 10.00% | |||
Interest on deferred compensation amounts | 8.00% | |||
First 3% of Employees Wages [Member] | ||||
Company matching contribution percent (as a percent) | 100.00% | |||
Match at 100% [Member] | ||||
Percent of employee contributions matched | 3.00% | |||
From 4% to 4.5% of Employees Wages [Member] | ||||
Company matching contribution percent (as a percent) | 50.00% | |||
Matched at 50% [Member] | ||||
Percent of employee contributions matched | 3.00% |
Note 15 - Employee Benefit Pl_4
Note 15 - Employee Benefit Plans - Profit Sharing Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plans | |||
Matching contribution | $ 2,520 | $ 2,443 | $ 2,000 |
Note 15 - Employee Benefit Pl_5
Note 15 - Employee Benefit Plans - Deferred Compensation Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance, beginning | $ 19,474 | $ 15,029 | $ 12,347 |
Employee deferrals | 3,959 | 2,474 | 1,407 |
Company match and interest | 2,628 | 2,072 | 1,367 |
Cash payments made | (1,348) | (101) | (92) |
Balance, ending | 24,713 | 19,474 | 15,029 |
Supplemental Executive Retirement Plans [Member] | |||
Balance, beginning | 5,160 | 4,623 | 4,330 |
Company match and interest | 1,193 | 701 | 457 |
Cash payments made | (164) | (164) | (164) |
Balance, ending | $ 6,189 | $ 5,160 | $ 4,623 |
Note 16 - Stock-Based Compens_3
Note 16 - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Expected life | 10 years | |||
Minimum | ||||
Vesting period | 3 years | |||
Maximum | ||||
Vesting period | 7 years | |||
2010 Equity Incentive Plan [Member] | ||||
Shares of common stock authorized | 350,000 | |||
The 2013 Equity Incentive Plan [Member] | ||||
Shares of common stock authorized | 350,000 | |||
The 2016 Equity Incentive Plan [Member] | ||||
Shares of common stock authorized | 400,000 | |||
Remaining shares of common stock available for grant | 170,833 | |||
Employee Stock Purchase Plan | ||||
Remaining shares of common stock available for grant | 89,582 | |||
Maximum amount any one participant can elect in an offering period | $ 10 | |||
Maximum amount any one participant can contribute (as a percent) | 15.00% | 15.00% | 10.00% |
Note 16 - Stock-Based Compens_4
Note 16 - Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allocated Share-based Compensation Expense | $ 2,150 | $ 2,469 | $ 1,443 |
Employee Stock Option | |||
Allocated Share-based Compensation Expense | 297 | 475 | 472 |
Restricted Stock | |||
Allocated Share-based Compensation Expense | 1,619 | 1,850 | 857 |
Employee Stock Purchase Plan | |||
Allocated Share-based Compensation Expense | $ 234 | $ 144 | $ 114 |
Note 16 - Stock-Based Compens_5
Note 16 - Stock-Based Compensation - Stock Option Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-Based Compensation | |||
Outstanding, shares (in shares) | 426,913 | 469,572 | 513,554 |
Outstanding, Weighted average exercise price (in dollars per share) | $ 20.14 | $ 18.52 | $ 17.13 |
Granted, shares (in shares) | 23,350 | 20,200 | 16,315 |
Granted, Weighted average exercise price (in dollars per share) | $ 39.12 | $ 36 | $ 44.02 |
Exercised, shares (in shares) | (41,650) | (59,393) | (60,127) |
Exercised, Weighted average exercise price (in dollars per share) | $ 10.67 | $ 12.11 | $ 13.56 |
Forfeited, shares (in shares) | (850) | (3,466) | (170) |
Forfeited, Weighted average exercise price (in dollars per share) | $ 19.94 | $ 31.59 | $ 16.81 |
Outstanding, shares (in shares) | 407,763 | 426,913 | 469,572 |
Outstanding, Weighted average exercise price (in dollars per share) | $ 22.24 | $ 20.14 | $ 18.52 |
Exercisable, , shares (in shares) | 354,899 | 365,084 | 358,270 |
Weighted-average grant date fair value (in dollars per share) | $ 10.07 | $ 11.29 | $ 14.68 |
Note 16 - Stock-Based Compens_6
Note 16 - Stock-Based Compensation - Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number outstanding (in shares) | shares | 407,763 |
Number exercisable (in shares) | shares | 354,899 |
$7.99 to $8.93 | |
Exercise price range, lower range (in dollars per share) | $ 7.99 |
Exercise price range, upper range (in dollars per share) | $ 8.93 |
Number outstanding (in shares) | shares | 11,325 |
Weighted average remaining contractual life (Year) | 1 month 20 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 8.15 |
Number exercisable (in shares) | shares | 11,325 |
Weighted average exercise price options exercisable (in dollars per share) | $ 8.15 |
$9.00 to $9.30 | |
Exercise price range, lower range (in dollars per share) | 9 |
Exercise price range, upper range (in dollars per share) | $ 9.30 |
Number outstanding (in shares) | shares | 60,328 |
Weighted average remaining contractual life (Year) | 1 year 29 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 9.30 |
Number exercisable (in shares) | shares | 60,328 |
Weighted average exercise price options exercisable (in dollars per share) | $ 9.30 |
$15.50 to $15.65 | |
Exercise price range, lower range (in dollars per share) | 15.50 |
Exercise price range, upper range (in dollars per share) | $ 15.65 |
Number outstanding (in shares) | shares | 66,491 |
Weighted average remaining contractual life (Year) | 2 years 2 months 26 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 15.64 |
Number exercisable (in shares) | shares | 66,491 |
Weighted average exercise price options exercisable (in dollars per share) | $ 15.64 |
$17.10 to $18.00 | |
Exercise price range, lower range (in dollars per share) | 17.10 |
Exercise price range, upper range (in dollars per share) | $ 18 |
Number outstanding (in shares) | shares | 113,527 |
Weighted average remaining contractual life (Year) | 3 years 6 months 21 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 17.31 |
Number exercisable (in shares) | shares | 113,527 |
Weighted average exercise price options exercisable (in dollars per share) | $ 17.31 |
$21.71 to $22.64 | |
Exercise price range, lower range (in dollars per share) | 21.71 |
Exercise price range, upper range (in dollars per share) | $ 22.64 |
Number outstanding (in shares) | shares | 58,115 |
Weighted average remaining contractual life (Year) | 5 years 2 months 19 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 22.88 |
Number exercisable (in shares) | shares | 56,115 |
Weighted average exercise price options exercisable (in dollars per share) | $ 22.63 |
$36.00 to $48.50 | |
Exercise price range, lower range (in dollars per share) | 36 |
Exercise price range, upper range (in dollars per share) | $ 48.50 |
Number outstanding (in shares) | shares | 97,977 |
Weighted average remaining contractual life (Year) | 7 years 4 months 20 days |
Weighted average exercise price options outstanding (in dollars per share) | $ 41.45 |
Number exercisable (in shares) | shares | 47,113 |
Weighted average exercise price options exercisable (in dollars per share) | $ 42.98 |
Note 16 - Stock-Based Compens_7
Note 16 - Stock-Based Compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock | |||
Outstanding, beginning (in shares) | 106,826 | 64,099 | 46,389 |
Granted (in shares) | 8,913 | 18,634 | 22,660 |
Forfeited (in shares) | (1,600) | (5,610) | |
Outstanding, ending (in shares) | 102,489 | 106,826 | 64,099 |
Weighted average fair value per share granted (in dollars per share) | $ 39.39 | $ 20.14 | $ 43.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Grant Date Fair Value | $ 1,400 | $ 1,300 | $ 622 |
Restricted Stock Units (RSUs) | |||
Granted (in shares) | 25,646 | 49,269 | 14,655 |
Performance Shares [Member] | |||
Granted (in shares) | 18,058 | ||
Restricted Stock And Restricted Stock Units | |||
Granted (in shares) | 34,559 | 85,961 | 37,315 |
Released (in shares) | (37,296) | (37,624) | (19,605) |
Note 16 - Stock-Based Compens_8
Note 16 - Stock-Based Compensation - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares granted (in shares) | 38,738 | 29,882 | 17,305 |
Issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan (in shares) | 37,114 | 28,775 | 15,528 |
Weighted average fair value per share granted (in dollars per share) | $ 6.01 | $ 4.81 | $ 6.63 |
Note 17 - Regulatory Capital _3
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends - (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020security | Feb. 18, 2020shares | |
The number of junior subordinated private placement debentures issued | 4 | ||
The number of junior subordinated private placement debentures assumed | 3 | ||
Outstanding shares (as a percent) | 5.00% | ||
Maximum | |||
Shares repurchased | shares | 800,000 |
Note 17 - Regulatory Capital _4
Note 17 - Regulatory Capital Requirements and Restrictions on Dividends - Capital Requirements (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Total risk-based capital, actual, amount | $ 721,004 | $ 581,234 |
Total risk-based capital, actual, ratio | 14.95 | 13.33 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 385,832 | $ 348,937 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 506,404 | $ 457,980 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 482,290 | $ 436,171 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 546,729 | $ 481,702 |
Tier 1 risk-based capital, actual, ratio | 11.34 | 11.04 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 289,374 | $ 261,703 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 409,946 | $ 370,746 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 385,832 | $ 348,937 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 546,729 | $ 481,702 |
Tier 1 leverage, actual, ratio | 9.49 | 9.53 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 230,345 | $ 202,207 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 230,345 | $ 202,207 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 287,931 | $ 252,758 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 508,736 | $ 443,864 |
Common equity Tier 1, actual ratio | 10.55 | 10.18 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 217,030 | $ 196,277 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 337,603 | $ 305,320 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 313,488 | $ 283,511 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
QCBT | ||
Total risk-based capital, actual, amount | $ 213,608 | $ 183,855 |
Total risk-based capital, actual, ratio | 12.24 | 11.83 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 139,581 | $ 124,362 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 183,200 | $ 163,225 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 174,477 | $ 155,452 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 191,693 | $ 170,137 |
Tier 1 risk-based capital, actual, ratio | 10.99 | 10.94 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 104,686 | $ 93,271 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 148,305 | $ 132,134 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 139,581 | $ 124,362 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 191,693 | $ 170,137 |
Tier 1 leverage, actual, ratio | 8.48 | 9.94 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 90,430 | $ 68,479 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 90,430 | $ 68,479 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 113,038 | $ 85,598 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 191,693 | $ 170,137 |
Common equity Tier 1, actual ratio | 10.99 | 10.94 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 78,514 | $ 69,953 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 122,134 | $ 108,817 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 113,410 | $ 101,044 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CRBT | ||
Total risk-based capital, actual, amount | $ 217,227 | $ 175,498 |
Total risk-based capital, actual, ratio | 13.14 | 11.90 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 132,269 | $ 117,953 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 173,603 | $ 154,813 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 165,336 | $ 147,441 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 196,438 | $ 162,127 |
Tier 1 risk-based capital, actual, ratio | 11.88 | 11 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 99,202 | $ 88,465 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 140,536 | $ 125,325 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 132,269 | $ 117,953 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 196,438 | $ 162,127 |
Tier 1 leverage, actual, ratio | 10.01 | 10.41 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 78,535 | $ 62,286 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 78,535 | $ 62,286 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 98,169 | $ 77,857 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 196,438 | $ 162,127 |
Common equity Tier 1, actual ratio | 11.88 | 11 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 74,401 | $ 66,349 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 115,735 | $ 103,209 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 107,469 | $ 95,837 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
CSB | ||
Total risk-based capital, actual, amount | $ 108,040 | $ 92,095 |
Total risk-based capital, actual, ratio | 12.69 | 12.32 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 68,117 | $ 59,813 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 89,404 | $ 78,504 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 85,146 | $ 74,766 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 97,350 | $ 85,437 |
Tier 1 risk-based capital, actual, ratio | 11.43 | 11.43 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 51,088 | $ 44,860 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 72,374 | $ 63,551 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 68,117 | $ 59,813 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 97,350 | $ 85,437 |
Tier 1 leverage, actual, ratio | 10.27 | 10.39 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 37,930 | $ 32,902 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 37,930 | $ 32,902 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 47,412 | $ 41,128 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 97,350 | $ 85,437 |
Common equity Tier 1, actual ratio | 11.43 | 11.43 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 38,316 | $ 33,645 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 59,602 | $ 52,336 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 55,345 | $ 48,598 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
SFCB | ||
Total risk-based capital, actual, amount | $ 90,334 | $ 71,074 |
Total risk-based capital, actual, ratio | 14.35 | 12.72 |
Total risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 50,357 | $ 44,704 |
Total risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 8.00% | 8.00% |
Total risk-based capital for capital adequacy purposes, amount | $ 66,094 | $ 58,674 |
Total risk-based capital for capital adequacy purposes, ratio | 10.50 | 10.50 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 62,947 | $ 55,880 |
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 10 | 10 |
Tier 1 risk-based capital, actual, amount | $ 77,668 | $ 63,956 |
Tier 1 risk-based capital, actual, ratio | 12.34 | 11.45 |
Tier 1 risk-based capital for capital adequacy purposes, amount, without capital conservation buffer | $ 37,768 | $ 33,528 |
Tier 1 risk-based capital for capital adequacy purposes, ratio, without capital conservation buffer | 6.00% | 6.00% |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 53,505 | $ 47,498 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 8.50 | 8.50 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount | $ 50,357 | $ 44,704 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 8 | 8 |
Tier 1 leverage, actual, amount | $ 77,668 | $ 63,956 |
Tier 1 leverage, actual, ratio | 10.87 | 9.70 |
Tier 1 leverage for capital adequacy purposes, amount, without capital conservation buffer | $ 28,575 | $ 26,379 |
Tier 1 leverage for capital adequacy purposes, ratio, without capital conservation buffer | 4.00% | 4.00% |
Tier 1 leverage for capital adequacy purposes, amount | $ 28,575 | $ 26,379 |
Tier 1 leverage for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount | $ 35,719 | $ 32,974 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 5 | 5 |
Common equity Tier 1, actual, amount | $ 77,668 | $ 63,956 |
Common equity Tier 1, actual ratio | 12.34 | 11.45 |
Common equity Tier 1 for capital adequacy purposes, amount, without capital conservation buffer | $ 28,326 | $ 25,146 |
Common equity Tier 1 for capital adequacy purposes, ratio, without capital conservation buffer | 4.50% | 4.50% |
Common equity Tier 1 for capital adequacy purposes, amount | $ 44,063 | $ 39,116 |
Common equity Tier 1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount | $ 40,915 | $ 36,322 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Note 18 - Earnings per Share -
Note 18 - Earnings per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings per Share | ||||||||||||
Net income | $ 18,271 | $ 17,344 | $ 13,739 | $ 11,228 | $ 15,891 | $ 15,095 | $ 13,504 | $ 12,918 | $ 60,582 | $ 57,408 | $ 43,120 | |
Basic EPS | $ 1.16 | $ 1.10 | $ 0.87 | $ 0.71 | $ 1.01 | $ 0.96 | $ 0.86 | $ 0.82 | $ 3.84 | $ 3.65 | $ 2.92 | |
Diluted EPS | $ 1.14 | $ 1.09 | $ 0.86 | $ 0.70 | $ 0.99 | $ 0.94 | $ 0.85 | $ 0.81 | $ 3.80 | $ 3.60 | $ 2.86 | |
Weighted average common shares outstanding (in shares) | [1] | 15,771,650 | 15,730,016 | 14,768,687 | ||||||||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 180,987 | 237,759 | 296,043 | |||||||||
Weighted average common and common equivalent shares outstanding (in shares) | [2] | 15,952,637 | 15,967,775 | 15,064,730 | ||||||||
[1] | The increase in weighted average common shares outstanding from 2018 to 2019 was primarily due to the common stock | |||||||||||
[2] | Excludes anti-dilutive shares of 104,636, 80,437 and 91,954 at December 31, 2020, 2019 and 2018, respectively |
Note 18 - Earnings per Share (D
Note 18 - Earnings per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per Share | |||
Antidilutive securities excluded from computation of earnings per share, amount | 104,636 | 80,437 | 91,954 |
Note 19 - Commitments and Con_2
Note 19 - Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maximum performance guarantee term | 1 year | |
Liability for potential guarantee obligations | $ 0 | $ 0 |
Sale of mortgage loans in the secondary market | 3,758 | 3,673 |
Loans sold with recourse provisions | 32,400 | 24,500 |
Amount of uninsured cash | 59,400 | 34,600 |
Cash Management Program [Member] | ||
Customer Funds | 103,800 | 148,300 |
Investment securities pledged | 24,000 | 0 |
Standby Letters of Credit [Member] | ||
Other commitment | 24,800 | 23,800 |
Commitments to Extend Credit [Member] | ||
Other commitment | $ 1,700,000 | $ 1,200,000 |
Note 20 - Quarterly Results o_3
Note 20 - Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure | |||||||||||
Total interest income | $ 49,851 | $ 50,890 | $ 48,650 | $ 48,982 | $ 52,977 | $ 56,817 | $ 54,181 | $ 52,101 | |||
Total interest expense | 6,144 | 6,309 | 7,694 | 11,276 | 13,058 | 16,098 | 16,168 | 15,193 | $ 31,423 | $ 60,517 | $ 40,484 |
Net interest income | 43,707 | 44,581 | 40,956 | 37,706 | 39,919 | 40,719 | 38,013 | 36,908 | 166,950 | 155,559 | 142,395 |
Provision for loan/lease losses | 7,080 | 20,342 | 19,915 | 8,367 | 979 | 2,012 | 1,941 | 2,134 | 55,704 | 7,066 | 12,658 |
Noninterest income | 32,017 | 37,959 | 28,626 | 15,196 | 29,805 | 19,906 | 17,065 | 11,992 | 113,798 | 78,768 | 41,541 |
Noninterest expense | 46,364 | 40,838 | 33,130 | 31,423 | 46,294 | 39,945 | 36,560 | 32,435 | 151,755 | 155,234 | 119,143 |
Income before taxes | 22,280 | 21,360 | 16,537 | 13,112 | 22,451 | 18,668 | 16,577 | 14,331 | 73,289 | 72,027 | 52,135 |
Federal and state income tax expense | 4,009 | 4,016 | 2,798 | 1,884 | 6,560 | 3,573 | 3,073 | 1,413 | 12,707 | 14,619 | 9,015 |
Net income | $ 18,271 | $ 17,344 | $ 13,739 | $ 11,228 | $ 15,891 | $ 15,095 | $ 13,504 | $ 12,918 | $ 60,582 | $ 57,408 | $ 43,120 |
Basic (in dollars per share) | $ 1.16 | $ 1.10 | $ 0.87 | $ 0.71 | $ 1.01 | $ 0.96 | $ 0.86 | $ 0.82 | $ 3.84 | $ 3.65 | $ 2.92 |
Diluted (in dollars per share) | $ 1.14 | $ 1.09 | $ 0.86 | $ 0.70 | $ 0.99 | $ 0.94 | $ 0.85 | $ 0.81 | $ 3.80 | $ 3.60 | $ 2.86 |
Note 21 - Parent Company Only_3
Note 21 - Parent Company Only Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and due from banks | $ 61,329 | $ 76,254 | ||
Interest-bearing deposits at financial institutions | 86,596 | 147,891 | ||
Securities available for sale, at fair value | 361,966 | 210,695 | ||
Loans/leases receivable held for investment | 4,247,371 | 3,686,532 | ||
Premises and equipment, net | 72,693 | 73,859 | ||
Goodwill | 74,066 | 74,748 | $ 77,832 | $ 28,334 |
Intangibles | 11,381 | 14,970 | 17,450 | |
Other assets | 61,302 | 59,975 | ||
Total assets | 5,682,797 | 4,909,050 | 4,949,710 | |
Subordinated notes | 118,691 | 68,394 | ||
Junior subordinated debentures | 37,993 | 37,838 | ||
Other liabilities | 83,483 | 90,253 | ||
Total liabilities | 5,089,004 | 4,373,699 | ||
Common stock | 15,806 | 15,828 | ||
Additional paid-in capital | 275,807 | 274,785 | ||
Retained earnings | 300,804 | 245,836 | ||
Total stockholders' equity | 593,793 | 535,351 | $ 473,138 | $ 353,287 |
Total liabilities and stockholders' equity | 5,682,797 | 4,909,050 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
Cash and due from banks | 88,610 | 59,529 | ||
Interest-bearing deposits at financial institutions | 7,200 | 5,601 | ||
Premises and equipment, net | 9,242 | 9,424 | ||
Goodwill | 682 | |||
Intangibles | 1,503 | |||
Other assets | 7,225 | 15,150 | ||
Total assets | 772,049 | 675,826 | ||
Subordinated notes | 113,691 | 63,531 | ||
Junior subordinated debentures | 37,993 | 37,838 | ||
Other liabilities | 26,572 | 39,106 | ||
Total liabilities | 178,256 | 140,475 | ||
Common stock | 15,806 | 15,828 | ||
Additional paid-in capital | 275,807 | 274,785 | ||
Retained earnings | 300,804 | 245,836 | ||
Accumulated other comprehensive loss | 1,376 | (1,098) | ||
Total stockholders' equity | 593,793 | 535,351 | ||
Total liabilities and stockholders' equity | 772,049 | 675,826 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Bank Subsidiaries [Member] | ||||
Investment in bank subsidiaries | 655,232 | 570,698 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | Non-bank Subsidiaries [Member] | ||||
Investment in bank subsidiaries | $ 4,540 | $ 13,239 |
Note 21 - Parent Company Only_4
Note 21 - Parent Company Only Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Total interest income | $ 49,851 | $ 50,890 | $ 48,650 | $ 48,982 | $ 52,977 | $ 56,817 | $ 54,181 | $ 52,101 | |||||
Securities gains | $ 2,484 | $ (30) | |||||||||||
Revenue | 312,171 | 294,844 | $ 224,420 | ||||||||||
Total interest expense | 6,144 | 6,309 | 7,694 | 11,276 | 13,058 | 16,098 | 16,168 | 15,193 | 31,423 | 60,517 | 40,484 | ||
Salaries and employee benefits | 96,268 | 92,063 | 68,994 | ||||||||||
Acquisition costs | 1,795 | ||||||||||||
Post-acquisition compensation, transition and integration costs | 214 | 3,582 | 2,086 | ||||||||||
Disposition costs | 690 | 3,325 | |||||||||||
Goodwill impairment | $ 0 | $ 0 | 500 | 3,000 | |||||||||
Income tax benefit | (4,009) | (4,016) | (2,798) | (1,884) | (6,560) | (3,573) | (3,073) | (1,413) | (12,707) | (14,619) | (9,015) | ||
Net income | $ 18,271 | $ 17,344 | $ 13,739 | $ 11,228 | $ 15,891 | $ 15,095 | $ 13,504 | $ 12,918 | 60,582 | 57,408 | 43,120 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | |||||||||||||
Total interest income | 29 | 77 | 88 | ||||||||||
Other | 289 | 314 | (322) | ||||||||||
Revenue | 79,681 | 77,154 | 54,539 | ||||||||||
Total interest expense | 6,662 | 5,836 | 3,637 | ||||||||||
Salaries and employee benefits | 11,825 | 8,739 | 6,598 | ||||||||||
Professional fees | 2,558 | 1,545 | 1,872 | ||||||||||
Acquisition costs | 1,654 | ||||||||||||
Post-acquisition compensation, transition and integration costs | 145 | 3,171 | 165 | ||||||||||
Disposition costs | 312 | 1,606 | |||||||||||
Goodwill impairment | 500 | 3,000 | |||||||||||
Other | 2,505 | 2,147 | 1,026 | ||||||||||
Total expenses | 24,507 | 26,044 | 14,952 | ||||||||||
Income before income tax benefit | 55,174 | 51,110 | 39,587 | ||||||||||
Income tax benefit | 5,408 | 6,298 | 3,533 | ||||||||||
Net income | 60,582 | 57,408 | 43,120 | ||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | |||||||||||||
Equity in net income of bank subsidiaries | 79,624 | 69,966 | 55,209 | ||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Non-bank Subsidiaries [Member] | |||||||||||||
Equity in net income of bank subsidiaries | $ (261) | $ 6,797 | $ (436) |
Note 21 - Parent Company Only_5
Note 21 - Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Sep. 14, 2020 | Feb. 12, 2019 | Nov. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Net income | $ 18,271 | $ 17,344 | $ 13,739 | $ 11,228 | $ 15,891 | $ 15,095 | $ 13,504 | $ 12,918 | $ 60,582 | $ 57,408 | $ 43,120 | ||||
Deferred income taxes | (14,530) | 6,364 | 6,292 | ||||||||||||
Accretion of acquisition fair value adjustments, net | (3,271) | (4,344) | (5,527) | ||||||||||||
Depreciation | 5,333 | 5,225 | 4,451 | ||||||||||||
Stock-based compensation expense | 2,150 | 2,469 | 1,443 | ||||||||||||
Loss on sale of subsidiary | (158) | 12,286 | |||||||||||||
Securities gains, net | (2,484) | 30 | |||||||||||||
Goodwill impairment | $ 0 | $ 0 | 500 | 3,000 | |||||||||||
Loss on liability extinguishment, net | $ 50 | 3,907 | 436 | ||||||||||||
Net increase in interest-bearing deposits at financial institutions | 61,295 | (69,984) | (14,508) | ||||||||||||
Purchases | (356,127) | (71,963) | (84,045) | ||||||||||||
Calls, maturities and redemptions | 53,007 | 25,193 | 23,931 | ||||||||||||
Sales | 38,562 | 30,055 | 1,938 | ||||||||||||
Net cash received in dissolution of subsidiary | (154) | 42,587 | |||||||||||||
Net cash paid for acquisition | (5,183) | ||||||||||||||
Purchase of premises and equipment | (4,268) | (12,429) | (11,457) | ||||||||||||
Net cash provided by (used in) investing activities | (704,482) | (308,664) | (333,648) | ||||||||||||
Proceeds from other borrowings | 9,000 | ||||||||||||||
Paydown of revolving line of credit | 9,000 | ||||||||||||||
Prepayments | (46,313) | ||||||||||||||
Calls, maturities and scheduled principal payments | (11,937) | (12,550) | |||||||||||||
Proceeds from subordinated notes | $ 50,000 | $ 63,400 | 50,000 | 63,393 | |||||||||||
Proceeds from issuance of common stock, net | 1,360 | 1,926 | 1,279 | ||||||||||||
Repurchase and cancellation of shares | (3,779) | ||||||||||||||
Net cash provided by (used in) financing activities | 577,380 | 222,901 | 279,178 | ||||||||||||
Net increase (decrease) in cash and due from banks | (14,925) | (9,269) | 9,801 | ||||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | |||||||||||||||
Net income | 60,582 | 57,408 | 43,120 | ||||||||||||
Deferred income taxes | 6,909 | 2,498 | 1,292 | ||||||||||||
Accretion of acquisition fair value adjustments, net | 378 | 305 | 183 | ||||||||||||
Depreciation | 454 | 327 | 249 | ||||||||||||
Stock-based compensation expense | 2,150 | 2,469 | 1,443 | ||||||||||||
Loss on sale of subsidiary | (158) | ||||||||||||||
Goodwill impairment | 500 | 3,000 | |||||||||||||
Decrease (increase) in other assets | 1,663 | (2,472) | 940 | ||||||||||||
Increase (decrease) in other liabilities | (14,966) | 7,814 | (7,226) | ||||||||||||
Net cash provided by (used in) operating activities | (21,495) | 39,644 | 19,791 | ||||||||||||
Net increase in interest-bearing deposits at financial institutions | (1,599) | (4,600) | (1,000) | ||||||||||||
Net cash received in dissolution of subsidiary | 8,450 | ||||||||||||||
Net cash paid for acquisition | (5,183) | ||||||||||||||
Net cash received in sale of subsidiary | 195 | ||||||||||||||
Purchase of premises and equipment | (272) | (2,861) | (2,257) | ||||||||||||
Net cash provided by (used in) investing activities | 6,774 | (16,161) | (11,940) | ||||||||||||
Proceeds from other borrowings | 9,000 | ||||||||||||||
Paydown of revolving line of credit | (9,000) | ||||||||||||||
Prepayments | (21,313) | ||||||||||||||
Calls, maturities and scheduled principal payments | (1,799) | (12,550) | |||||||||||||
Proceeds from subordinated notes | 50,000 | 63,393 | |||||||||||||
Payment of cash dividends on common and preferred stock | (3,779) | (3,767) | (3,300) | ||||||||||||
Proceeds from issuance of common stock, net | 1,360 | 1,926 | 1,279 | ||||||||||||
Repurchase and cancellation of shares | (3,779) | ||||||||||||||
Net cash provided by (used in) financing activities | 43,802 | 29,440 | (5,571) | ||||||||||||
Net increase (decrease) in cash and due from banks | 29,081 | 52,923 | 2,280 | ||||||||||||
Cash and due from banks, beginning | $ 59,529 | $ 6,606 | 59,529 | 6,606 | 4,326 | ||||||||||
Cash and due from banks, ending | $ 88,610 | $ 59,529 | 88,610 | 59,529 | 6,606 | ||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | |||||||||||||||
Earnings of bank subsidiaries | (79,624) | (69,966) | (55,209) | ||||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Non-bank Subsidiaries [Member] | |||||||||||||||
Earnings of bank subsidiaries | 261 | (6,797) | 436 | ||||||||||||
Distributions from bank subsidiaries | $ 40 | 45,058 | 63 | ||||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | |||||||||||||||
Capital infusion to subsidiaries | (8,600) | (3,500) | |||||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Bank Subsidiaries [Member] | Bank Subsidiaries [Member] | |||||||||||||||
Distributions from bank subsidiaries | $ 34,500 | ||||||||||||||
Parent Company [Member] | Reportable Legal Entities [Member] | Non-bank Subsidiaries [Member] | |||||||||||||||
Capital infusion to subsidiaries | $ (100) |
Note 22 - Fair Value (Details)
Note 22 - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities available for sale, at fair value | $ 361,966 | $ 210,695 |
Derivatives | 222,757 | 87,827 |
Assets Fair Value | 9,948 | 7,853 |
Derivatives | 229,270 | 88,437 |
Interest rate swap | ||
Derivatives | 222,431 | 84,679 |
Derivatives | 222,431 | 84,679 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 9,948 | 7,853 |
Fair Value, Measurements, Recurring [Member] | ||
Derivatives | 222,757 | 87,827 |
Assets Fair Value | 584,723 | 298,522 |
Liabilities Fair Value | 229,270 | 88,437 |
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||
Derivatives | 229,270 | 88,437 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivatives | 222,757 | 87,827 |
Assets Fair Value | 584,723 | 298,522 |
Liabilities Fair Value | 229,270 | 88,437 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||
Derivatives | 229,270 | 88,437 |
U.S. govt. sponsored agency securities | ||
Securities available for sale, at fair value | 15,336 | 20,078 |
U.S. govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 15,336 | 20,078 |
U.S. govt. sponsored agency securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 15,336 | 20,078 |
Residential mortgage-backed and related securities | ||
Securities available for sale, at fair value | 132,842 | 120,587 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 132,842 | 120,587 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 132,842 | 120,587 |
Asset-backed securities | ||
Securities available for sale, at fair value | 40,683 | 16,887 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 40,683 | 16,887 |
Asset-backed securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 40,683 | 16,887 |
Municipal securities | ||
Securities available for sale, at fair value | 152,408 | 48,257 |
Municipal securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 152,408 | 48,257 |
Municipal securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 152,408 | 48,257 |
Other Securities | ||
Securities available for sale, at fair value | 20,697 | 4,886 |
Other Securities | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 20,697 | 4,886 |
Other Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 20,697 | 4,886 |
Impaired Loans Leases [Member] | ||
Assets Fair Value | 9,926 | 3,394 |
Impaired Loans Leases [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | 9,926 | 3,394 |
Other Real Estate Owned [Member] | ||
Assets Fair Value | 22 | 4,459 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Fair Value | $ 22 | $ 4,459 |
Note 22 - Fair Value - Quantita
Note 22 - Fair Value - Quantitative Information About Level Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Fair value | $ 9,948 | $ 7,853 |
Impaired Loans Leases [Member] | ||
Fair value | $ 9,926 | 3,394 |
Valuation technique | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input | us-gaap:MeasurementInputAppraisedValueMember | |
Impaired Loans Leases [Member] | Minimum | ||
Impaired loans/leases, measurement input | item | (10) | |
Impaired Loans Leases [Member] | Maximum | ||
Impaired loans/leases, measurement input | item | (30) | |
Other Real Estate Owned [Member] | ||
Fair value | $ 22 | 4,459 |
Valuation technique | qcrh:ValuationTechniqueAppraisalOfCollateralMember | |
Unobservable input | us-gaap:MeasurementInputAppraisedValueMember | |
Other Real Estate Owned [Member] | Minimum | ||
OREO, measurement input | item | 0 | |
Other Real Estate Owned [Member] | Maximum | ||
OREO, measurement input | item | (35) | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value | $ 9,948 | 7,853 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans Leases [Member] | ||
Fair value | 9,926 | 3,394 |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Fair value | $ 22 | $ 4,459 |
Note 22 - Fair Value - Carrying
Note 22 - Fair Value - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 14, 2020 | Feb. 12, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Interest-bearing deposits at financial institutions | $ 86,596 | $ 147,891 | ||
Securities held to maturity, fair value | 521,277 | 426,545 | ||
Securities available for sale, at fair value | 361,966 | 210,695 | ||
Derivatives | 222,757 | 87,827 | ||
Subordinated notes | $ 50,000 | $ 63,400 | 50,000 | 63,393 |
Derivatives | 229,270 | 88,437 | ||
Interest rate cap | ||||
Derivatives | 67 | |||
Interest rate swap | ||||
Derivatives | 222,431 | 84,679 | ||
Derivatives | 222,431 | 84,679 | ||
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||||
Cash and due from banks | 61,329 | 76,254 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Cash and due from banks | 61,329 | 76,254 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||||
Federal funds sold | 9,080 | 9,800 | ||
Securities held to maturity, fair value | 476,165 | 400,646 | ||
Securities available for sale, at fair value | 361,966 | 210,695 | ||
Loans/leases receivable, net | 4,157,562 | 3,651,061 | ||
Short-term borrowings | 5,430 | 13,423 | ||
FHLB advances | 15,000 | 159,300 | ||
Subordinated notes | 118,691 | 68,394 | ||
Junior subordinated debentures | 37,993 | 37,838 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Non-maturity Deposits [Member] | ||||
Deposits | 4,138,478 | 3,184,726 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Time Deposits [Member] | ||||
Deposits | 460,659 | 726,325 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest rate cap | ||||
Derivatives | 222,757 | 87,827 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest rate swap | ||||
Derivatives | 229,270 | 88,437 | ||
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Interest-bearing Deposits [Member] | ||||
Interest-bearing deposits at financial institutions | 86,596 | 147,891 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Federal funds sold | 9,080 | 9,800 | ||
Securities held to maturity, fair value | 521,277 | 426,545 | ||
Securities available for sale, at fair value | 361,966 | 210,695 | ||
Loans/leases receivable, net | 4,112,735 | 3,606,520 | ||
Short-term borrowings | 5,430 | 13,423 | ||
FHLB advances | 14,998 | 159,193 | ||
Subordinated notes | 122,406 | 68,563 | ||
Junior subordinated debentures | 30,618 | 30,477 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Non-maturity Deposits [Member] | ||||
Deposits | 4,138,478 | 3,184,726 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Time Deposits [Member] | ||||
Deposits | 465,681 | 742,444 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest rate cap | ||||
Derivatives | 222,757 | 87,827 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest rate swap | ||||
Derivatives | 229,270 | 88,437 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Interest-bearing Deposits [Member] | ||||
Interest-bearing deposits at financial institutions | 86,596 | 147,891 | ||
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||||
Loans/leases receivable, net | 9,191 | 3,143 | ||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Loans/leases receivable, net | 9,926 | 3,394 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Derivatives | 222,757 | 87,827 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swap | ||||
Derivatives | 229,270 | 88,437 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivatives | 222,757 | 87,827 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swap | ||||
Derivatives | $ 229,270 | $ 88,437 |
Note 23 - Business Segment In_3
Note 23 - Business Segment Information - (Details) | Dec. 31, 2020subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
Note 23 - Business Segment In_4
Note 23 - Business Segment Information - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenue | $ 312,171 | $ 294,844 | $ 224,420 | |||||||||
Net interest income | $ 43,707 | $ 44,581 | $ 40,956 | $ 37,706 | $ 39,919 | $ 40,719 | $ 38,013 | $ 36,908 | 166,950 | 155,559 | 142,395 | |
Provision for loan/lease losses | 7,080 | 20,342 | 19,915 | 8,367 | 979 | 2,012 | 1,941 | 2,134 | 55,704 | 7,066 | 12,658 | |
Net income (loss) | 18,271 | $ 17,344 | $ 13,739 | $ 11,228 | 15,891 | $ 15,095 | $ 13,504 | $ 12,918 | 60,582 | 57,408 | 43,120 | |
Goodwill | 74,066 | 74,748 | 74,066 | 74,748 | 77,832 | $ 28,334 | ||||||
Intangibles | 11,381 | 14,970 | 11,381 | 14,970 | 17,450 | |||||||
Total assets | 5,682,797 | 4,909,050 | 5,682,797 | 4,909,050 | 4,949,710 | |||||||
Intersegment Eliminations [Member] | ||||||||||||
Total revenue | (262) | (1,606) | (871) | |||||||||
Net interest income | 1,031 | |||||||||||
Total assets | (324,971) | (65,305) | (324,971) | (65,305) | (26,387) | |||||||
Commercial Banking | QCBT | ||||||||||||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | 3,223 | |||||||
Commercial Banking | QCBT | Operating Segments [Member] | ||||||||||||
Total revenue | 92,336 | 87,433 | 77,129 | |||||||||
Net interest income | 63,366 | 52,097 | 48,682 | |||||||||
Provision for loan/lease losses | 21,612 | 3,433 | 3,693 | |||||||||
Net income (loss) | 21,557 | 21,607 | 20,559 | |||||||||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | 3,223 | |||||||
Total assets | 2,149,469 | 1,682,477 | 2,149,469 | 1,682,477 | 1,623,369 | |||||||
Commercial Banking | CRBT | ||||||||||||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | 14,980 | |||||||
Commercial Banking | CRBT | Operating Segments [Member] | ||||||||||||
Total revenue | 125,416 | 96,631 | 73,208 | |||||||||
Net interest income | 52,857 | 44,310 | 43,038 | |||||||||
Provision for loan/lease losses | 19,438 | 1,080 | 1,833 | |||||||||
Net income (loss) | 33,890 | 27,716 | 20,680 | |||||||||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | 14,980 | |||||||
Intangibles | 2,189 | 2,684 | 2,189 | 2,684 | 3,186 | |||||||
Total assets | 1,952,308 | 1,572,324 | 1,952,308 | 1,572,324 | 1,379,222 | |||||||
Commercial Banking | CSB | ||||||||||||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | 9,888 | |||||||
Commercial Banking | CSB | Operating Segments [Member] | ||||||||||||
Total revenue | 50,448 | 42,059 | 36,649 | |||||||||
Net interest income | 31,570 | 31,370 | 28,763 | |||||||||
Provision for loan/lease losses | 9,243 | 679 | 1,523 | |||||||||
Net income (loss) | 11,379 | 10,787 | 8,449 | |||||||||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | 9,888 | |||||||
Intangibles | 3,305 | 3,980 | 3,305 | 3,980 | 4,675 | |||||||
Total assets | 1,000,670 | 853,833 | 1,000,670 | 853,833 | 785,364 | |||||||
Commercial Banking | SFCB | ||||||||||||
Goodwill | 45,975 | 45,975 | 45,975 | 45,975 | 45,975 | |||||||
Commercial Banking | SFCB | Operating Segments [Member] | ||||||||||||
Total revenue | 42,036 | 31,569 | 15,153 | |||||||||
Net interest income | 24,759 | 21,422 | 11,835 | |||||||||
Provision for loan/lease losses | 5,411 | 1,315 | 990 | |||||||||
Net income (loss) | 12,797 | 8,244 | 4,816 | |||||||||
Goodwill | 45,975 | 45,975 | 45,975 | 45,975 | 45,975 | |||||||
Intangibles | 5,887 | 6,802 | 5,887 | 6,802 | 7,734 | |||||||
Total assets | 779,956 | 748,753 | 779,956 | 748,753 | 632,849 | |||||||
Other Segments | Operating Segments [Member] | ||||||||||||
Total revenue | 2,197 | 38,758 | 23,152 | |||||||||
Net interest income | (6,633) | 6,360 | 10,077 | |||||||||
Provision for loan/lease losses | 559 | 4,619 | ||||||||||
Net income (loss) | (19,041) | (10,946) | (11,384) | |||||||||
Goodwill | 682 | 682 | 3,766 | |||||||||
Intangibles | 1,504 | 1,504 | 1,855 | |||||||||
Total assets | $ 125,365 | $ 116,968 | $ 125,365 | $ 116,968 | $ 555,293 |