Indiana
|
|
35-1547518
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
Large accelerated filer
|
x
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, no par value
|
GABC
|
NASDAQ Global Select Market
|
PART I. FINANCIAL INFORMATION
|
||
|
|
|
Item 1.
|
Unaudited Financial Statements
|
|
|
|
|
|
Consolidated Balance Sheets – June 30, 2019 and December 31, 2018
|
|
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|
|
Consolidated Statements of Income – Three Months Ended June 30, 2019 and 2018
|
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|
|
Consolidated Statements of Income – Six Months Ended June 30, 2019 and 2018
|
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|
|
Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2019 and 2018
|
|
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|
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Consolidated Statements of Changes in Shareholders' Equity - Three and Six Months Ended June 30, 2019 and 2018
|
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Consolidated Statements of Cash Flows – Six Months Ended June 30, 2019 and 2018
|
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|
|
Notes to Consolidated Financial Statements – June 30, 2019
|
|
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Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
|
Controls and Procedures
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|
PART II. OTHER INFORMATION
|
||
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|
Item 1.
|
Legal Proceedings
|
|
|
|
|
Item 1A.
|
Risk Factors
|
|
|
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
|
Item 3.
|
Defaults Upon Senior Securities
|
|
|
|
|
Item 4.
|
Mine Safety Disclosures
|
|
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Item 5.
|
Other Information
|
|
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|
|
Item 6.
|
Exhibits
|
|
|
|
|
SIGNATURES
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and Due from Banks
|
|
$
|
48,634
|
|
|
$
|
64,549
|
|
Federal Funds Sold and Other Short-term Investments
|
|
41,373
|
|
|
32,001
|
|
||
Cash and Cash Equivalents
|
|
90,007
|
|
|
96,550
|
|
||
|
|
|
|
|
||||
Interest-bearing Time Deposits with Banks
|
|
250
|
|
|
250
|
|
||
Securities Available-for-Sale, at Fair Value
|
|
840,692
|
|
|
812,611
|
|
||
Other Investments
|
|
353
|
|
|
353
|
|
||
|
|
|
|
|
||||
Loans Held-for-Sale, at Fair Value
|
|
14,184
|
|
|
4,263
|
|
||
|
|
|
|
|
||||
Loans
|
|
2,720,674
|
|
|
2,731,741
|
|
||
Less: Unearned Income
|
|
(3,646
|
)
|
|
(3,682
|
)
|
||
Allowance for Loan Losses
|
|
(16,239
|
)
|
|
(15,823
|
)
|
||
Loans, Net
|
|
2,700,789
|
|
|
2,712,236
|
|
||
|
|
|
|
|
||||
Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost
|
|
13,048
|
|
|
13,048
|
|
||
Premises, Furniture and Equipment, Net
|
|
89,413
|
|
|
80,627
|
|
||
Other Real Estate
|
|
635
|
|
|
286
|
|
||
Goodwill
|
|
103,799
|
|
|
103,681
|
|
||
Intangible Assets
|
|
9,510
|
|
|
9,964
|
|
||
Company Owned Life Insurance
|
|
59,536
|
|
|
59,896
|
|
||
Accrued Interest Receivable and Other Assets
|
|
48,523
|
|
|
35,325
|
|
||
TOTAL ASSETS
|
|
$
|
3,970,739
|
|
|
$
|
3,929,090
|
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
||
Non-interest-bearing Demand Deposits
|
|
$
|
725,367
|
|
|
$
|
715,972
|
|
Interest-bearing Demand, Savings, and Money Market Accounts
|
|
1,805,694
|
|
|
1,768,177
|
|
||
Time Deposits
|
|
597,771
|
|
|
588,483
|
|
||
Total Deposits
|
|
3,128,832
|
|
|
3,072,632
|
|
||
|
|
|
|
|
||||
FHLB Advances and Other Borrowings
|
|
305,940
|
|
|
376,409
|
|
||
Accrued Interest Payable and Other Liabilities
|
|
36,556
|
|
|
21,409
|
|
||
TOTAL LIABILITIES
|
|
3,471,328
|
|
|
3,470,450
|
|
||
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Common Stock, no par value, $1 stated value; 45,000,000 shares authorized
|
|
24,992
|
|
|
24,967
|
|
||
Additional Paid-in Capital
|
|
229,943
|
|
|
229,347
|
|
||
Retained Earnings
|
|
233,269
|
|
|
211,424
|
|
||
Accumulated Other Comprehensive Income (Loss)
|
|
11,207
|
|
|
(7,098
|
)
|
||
TOTAL SHAREHOLDERS’ EQUITY
|
|
499,411
|
|
|
458,640
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
3,970,739
|
|
|
$
|
3,929,090
|
|
End of period shares issued and outstanding
|
|
24,992,238
|
|
|
24,967,458
|
|
|
|
Three Months Ended
June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
INTEREST INCOME
|
|
|
|
|
|
|
||
Interest and Fees on Loans
|
|
$
|
35,046
|
|
|
$
|
26,308
|
|
Interest on Federal Funds Sold and Other Short-term Investments
|
|
85
|
|
|
54
|
|
||
Interest and Dividends on Securities:
|
|
|
|
|
|
|
||
Taxable
|
|
3,555
|
|
|
2,962
|
|
||
Non-taxable
|
|
2,350
|
|
|
2,209
|
|
||
TOTAL INTEREST INCOME
|
|
41,036
|
|
|
31,533
|
|
||
|
|
|
|
|
|
|
||
INTEREST EXPENSE
|
|
|
|
|
|
|
||
Interest on Deposits
|
|
5,759
|
|
|
2,848
|
|
||
Interest on FHLB Advances and Other Borrowings
|
|
1,636
|
|
|
1,216
|
|
||
TOTAL INTEREST EXPENSE
|
|
7,395
|
|
|
4,064
|
|
||
|
|
|
|
|
|
|
||
NET INTEREST INCOME
|
|
33,641
|
|
|
27,469
|
|
||
Provision for Loan Losses
|
|
250
|
|
|
1,220
|
|
||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
33,391
|
|
|
26,249
|
|
||
|
|
|
|
|
|
|
||
NON-INTEREST INCOME
|
|
|
|
|
|
|
||
Trust and Investment Product Fees
|
|
1,913
|
|
|
1,677
|
|
||
Service Charges on Deposit Accounts
|
|
2,024
|
|
|
1,643
|
|
||
Insurance Revenues
|
|
1,929
|
|
|
1,696
|
|
||
Company Owned Life Insurance
|
|
304
|
|
|
260
|
|
||
Interchange Fee Income
|
|
2,332
|
|
|
1,714
|
|
||
Other Operating Income
|
|
461
|
|
|
913
|
|
||
Net Gains on Sales of Loans
|
|
1,030
|
|
|
905
|
|
||
Net Gains on Securities
|
|
516
|
|
|
74
|
|
||
TOTAL NON-INTEREST INCOME
|
|
10,509
|
|
|
8,882
|
|
||
|
|
|
|
|
|
|
||
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
||
Salaries and Employee Benefits
|
|
14,117
|
|
|
12,019
|
|
||
Occupancy Expense
|
|
2,279
|
|
|
1,811
|
|
||
Furniture and Equipment Expense
|
|
933
|
|
|
716
|
|
||
FDIC Premiums
|
|
245
|
|
|
238
|
|
||
Data Processing Fees
|
|
1,803
|
|
|
1,398
|
|
||
Professional Fees
|
|
1,174
|
|
|
1,361
|
|
||
Advertising and Promotion
|
|
936
|
|
|
857
|
|
||
Intangible Amortization
|
|
802
|
|
|
306
|
|
||
Other Operating Expenses
|
|
3,329
|
|
|
3,002
|
|
||
TOTAL NON-INTEREST EXPENSE
|
|
25,618
|
|
|
21,708
|
|
||
|
|
|
|
|
|
|
||
Income before Income Taxes
|
|
18,282
|
|
|
13,423
|
|
||
Income Tax Expense
|
|
3,011
|
|
|
2,326
|
|
||
NET INCOME
|
|
$
|
15,271
|
|
|
$
|
11,097
|
|
|
|
|
|
|
|
|
||
Basic Earnings per Share
|
|
$
|
0.61
|
|
|
$
|
0.48
|
|
Diluted Earnings per Share
|
|
$
|
0.61
|
|
|
$
|
0.48
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
INTEREST INCOME
|
|
|
|
|
|
|
||
Interest and Fees on Loans
|
|
$
|
70,165
|
|
|
$
|
50,258
|
|
Interest on Federal Funds Sold and Other Short-term Investments
|
|
226
|
|
|
110
|
|
||
Interest and Dividends on Securities:
|
|
|
|
|
|
|
||
Taxable
|
|
7,154
|
|
|
5,960
|
|
||
Non-taxable
|
|
4,680
|
|
|
4,350
|
|
||
TOTAL INTEREST INCOME
|
|
82,225
|
|
|
60,678
|
|
||
|
|
|
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
||
Interest on Deposits
|
|
11,175
|
|
|
5,131
|
|
||
Interest on FHLB Advances and Other Borrowings
|
|
3,818
|
|
|
2,468
|
|
||
TOTAL INTEREST EXPENSE
|
|
14,993
|
|
|
7,599
|
|
||
|
|
|
|
|
||||
NET INTEREST INCOME
|
|
67,232
|
|
|
53,079
|
|
||
Provision for Loan Losses
|
|
925
|
|
|
1,570
|
|
||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
66,307
|
|
|
51,509
|
|
||
|
|
|
|
|
||||
NON-INTEREST INCOME
|
|
|
|
|
|
|
||
Trust and Investment Product Fees
|
|
3,480
|
|
|
3,450
|
|
||
Service Charges on Deposit Accounts
|
|
3,924
|
|
|
3,114
|
|
||
Insurance Revenues
|
|
5,134
|
|
|
4,626
|
|
||
Company Owned Life Insurance
|
|
1,188
|
|
|
572
|
|
||
Interchange Fee Income
|
|
4,427
|
|
|
3,196
|
|
||
Other Operating Income
|
|
1,332
|
|
|
1,517
|
|
||
Net Gains on Sales of Loans
|
|
2,011
|
|
|
1,555
|
|
||
Net Gains on Securities
|
|
671
|
|
|
344
|
|
||
TOTAL NON-INTEREST INCOME
|
|
22,167
|
|
|
18,374
|
|
||
|
|
|
|
|
||||
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
||
Salaries and Employee Benefits
|
|
29,161
|
|
|
24,145
|
|
||
Occupancy Expense
|
|
4,570
|
|
|
3,555
|
|
||
Furniture and Equipment Expense
|
|
1,861
|
|
|
1,381
|
|
||
FDIC Premiums
|
|
533
|
|
|
475
|
|
||
Data Processing Fees
|
|
3,386
|
|
|
2,525
|
|
||
Professional Fees
|
|
2,501
|
|
|
2,232
|
|
||
Advertising and Promotion
|
|
1,806
|
|
|
1,558
|
|
||
Intangible Amortization
|
|
1,645
|
|
|
512
|
|
||
Other Operating Expenses
|
|
6,914
|
|
|
5,780
|
|
||
TOTAL NON-INTEREST EXPENSE
|
|
52,377
|
|
|
42,163
|
|
||
|
|
|
|
|
||||
Income before Income Taxes
|
|
36,097
|
|
|
27,720
|
|
||
Income Tax Expense
|
|
5,759
|
|
|
4,810
|
|
||
NET INCOME
|
|
$
|
30,338
|
|
|
$
|
22,910
|
|
|
|
|
|
|
||||
Basic Earnings per Share
|
|
$
|
1.21
|
|
|
$
|
1.00
|
|
Diluted Earnings per Share
|
|
$
|
1.21
|
|
|
$
|
1.00
|
|
|
|
Three Months Ended
June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
15,271
|
|
|
$
|
11,097
|
|
|
|
|
|
|
||||
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
||
Unrealized Gains (Losses) on Securities:
|
|
|
|
|
|
|
||
Unrealized Holding Gain (Loss) Arising During the Period
|
|
11,838
|
|
|
(1,840
|
)
|
||
Reclassification Adjustment for Gains Included in Net Income
|
|
(516
|
)
|
|
(74
|
)
|
||
Tax Effect
|
|
(2,431
|
)
|
|
413
|
|
||
Net of Tax
|
|
8,891
|
|
|
(1,501
|
)
|
||
|
|
|
|
|
||||
Total Other Comprehensive Income (Loss)
|
|
8,891
|
|
|
(1,501
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
24,162
|
|
|
$
|
9,596
|
|
|
|
Six Months Ended
June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
NET INCOME
|
|
$
|
30,338
|
|
|
$
|
22,910
|
|
|
|
|
|
|
||||
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
||
Unrealized Gains (Losses) on Securities:
|
|
|
|
|
|
|
||
Unrealized Holding Gain (Loss) Arising During the Period
|
|
24,039
|
|
|
(13,292
|
)
|
||
Reclassification Adjustment for Gains Included in Net Income
|
|
(671
|
)
|
|
(344
|
)
|
||
Tax Effect
|
|
(5,063
|
)
|
|
2,917
|
|
||
Net of Tax
|
|
18,305
|
|
|
(10,719
|
)
|
||
|
|
|
|
|
||||
Total Other Comprehensive Income (Loss)
|
|
18,305
|
|
|
(10,719
|
)
|
||
|
|
|
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
48,643
|
|
|
$
|
12,191
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Shareholders' Equity
|
|||||||||||
Balances, December 31, 2018
|
|
24,967,458
|
|
|
$
|
24,967
|
|
|
$
|
229,347
|
|
|
$
|
211,424
|
|
|
$
|
(7,098
|
)
|
|
$
|
458,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
|
15,067
|
|
|
|
|
15,067
|
|
|||||||||
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
9,414
|
|
|
9,414
|
|
|||||||||
Cash Dividends ($0.17 per share)
|
|
|
|
|
|
|
|
(4,245
|
)
|
|
|
|
(4,245
|
)
|
|||||||||
Issuance of Common Stock for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restricted Share Grants
|
|
24,780
|
|
|
25
|
|
|
286
|
|
|
|
|
|
|
311
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balances, March 31, 2019
|
|
24,992,238
|
|
|
$
|
24,992
|
|
|
$
|
229,633
|
|
|
$
|
222,246
|
|
|
$
|
2,316
|
|
|
$
|
479,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
|
|
15,271
|
|
|
|
|
15,271
|
|
||||||||
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
8,891
|
|
|
8,891
|
|
||||||||
Cash Dividends ($0.17 per share)
|
|
|
|
|
|
|
|
|
(4,248
|
)
|
|
|
|
(4,248
|
)
|
||||||||
Issuance of Common Stock for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Restricted Share Grants
|
|
|
|
|
|
|
|
310
|
|
|
|
|
|
|
310
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balances, June 30, 2019
|
|
24,992,238
|
|
|
$
|
24,992
|
|
|
$
|
229,943
|
|
|
$
|
233,269
|
|
|
$
|
11,207
|
|
|
$
|
499,411
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Shareholders' Equity
|
|||||||||||
Balances, December 31, 2017
|
|
22,934,403
|
|
|
$
|
22,934
|
|
|
$
|
165,288
|
|
|
$
|
178,969
|
|
|
$
|
(2,620
|
)
|
|
$
|
364,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
|
11,813
|
|
|
|
|
11,813
|
|
|||||||||
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
(9,218
|
)
|
|
(9,218
|
)
|
|||||||||
Cash Dividends ($0.15 per share)
|
|
|
|
|
|
|
|
(3,440
|
)
|
|
|
|
(3,440
|
)
|
|||||||||
Issuance of Common Stock for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restricted Share Grants
|
|
34,410
|
|
|
35
|
|
|
244
|
|
|
|
|
|
|
279
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balances, March 31, 2018
|
|
22,968,813
|
|
|
$
|
22,969
|
|
|
$
|
165,532
|
|
|
$
|
187,342
|
|
|
$
|
(11,838
|
)
|
|
$
|
364,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
|
|
11,097
|
|
|
|
|
11,097
|
|
||||||||
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
(1,501
|
)
|
|
(1,501
|
)
|
||||||||
Cash Dividends ($0.15 per share)
|
|
|
|
|
|
|
|
|
(3,445
|
)
|
|
|
|
(3,445
|
)
|
||||||||
Issuance of Common Stock for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Restricted Share Grants
|
|
(915
|
)
|
|
(1
|
)
|
|
385
|
|
|
|
|
|
|
384
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balances, June 30, 2018
|
|
22,967,898
|
|
|
$
|
22,968
|
|
|
$
|
165,917
|
|
|
$
|
194,994
|
|
|
$
|
(13,339
|
)
|
|
$
|
370,540
|
|
|
|
Six Months Ended
June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
30,338
|
|
|
$
|
22,910
|
|
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:
|
|
|
|
|
|
|
||
Net Amortization on Securities
|
|
1,784
|
|
|
1,793
|
|
||
Depreciation and Amortization
|
|
4,073
|
|
|
2,601
|
|
||
Loans Originated for Sale
|
|
(78,128
|
)
|
|
(65,071
|
)
|
||
Proceeds from Sales of Loans Held-for-Sale
|
|
70,003
|
|
|
63,710
|
|
||
Provision for Loan Losses
|
|
925
|
|
|
1,570
|
|
||
Gain on Sale of Loans, net
|
|
(2,011
|
)
|
|
(1,555
|
)
|
||
Gain on Securities, net
|
|
(671
|
)
|
|
(344
|
)
|
||
Gain on Sales of Other Real Estate and Repossessed Assets
|
|
—
|
|
|
(13
|
)
|
||
Loss (Gain) on Disposition and Donation of Premises and Equipment
|
|
—
|
|
|
(36
|
)
|
||
Gain on Disposition of Land
|
|
(262
|
)
|
|
—
|
|
||
Increase in Cash Surrender Value of Company Owned Life Insurance
|
|
(659
|
)
|
|
(521
|
)
|
||
Equity Based Compensation
|
|
621
|
|
|
663
|
|
||
Change in Assets and Liabilities:
|
|
|
|
|
|
|
||
Interest Receivable and Other Assets
|
|
(14,718
|
)
|
|
2,924
|
|
||
Interest Payable and Other Liabilities
|
|
1,584
|
|
|
90
|
|
||
Net Cash from Operating Activities
|
|
12,879
|
|
|
28,721
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
||
Proceeds from Maturities of Securities Available-for-Sale
|
|
45,980
|
|
|
37,481
|
|
||
Proceeds from Sales of Securities Available-for-Sale
|
|
22,274
|
|
|
17,515
|
|
||
Purchase of Securities Available-for-Sale
|
|
(74,078
|
)
|
|
(68,923
|
)
|
||
Purchase of Loans
|
|
(521
|
)
|
|
—
|
|
||
Proceeds from Sales of Loans
|
|
—
|
|
|
6,000
|
|
||
Loans Made to Customers, net of Payments Received
|
|
10,335
|
|
|
(66,922
|
)
|
||
Proceeds from Sales of Other Real Estate
|
|
359
|
|
|
54
|
|
||
Property and Equipment Expenditures
|
|
(3,172
|
)
|
|
(8,862
|
)
|
||
Proceeds from Sales of Property and Equipment
|
|
—
|
|
|
40
|
|
||
Proceeds from Sale of Land
|
|
722
|
|
|
—
|
|
||
Proceeds from Life Insurance
|
|
1,019
|
|
|
—
|
|
||
Acquire Bank Branches
|
|
—
|
|
|
41,392
|
|
||
Net Cash from Investing Activities
|
|
2,918
|
|
|
(42,225
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
Change in Deposits
|
|
56,707
|
|
|
(58,239
|
)
|
||
Change in Short-term Borrowings
|
|
(107,456
|
)
|
|
89,640
|
|
||
Advances in Long-term Debt
|
|
65,000
|
|
|
35,000
|
|
||
Repayments of Long-term Debt
|
|
(28,098
|
)
|
|
(45,089
|
)
|
||
Dividends Paid
|
|
(8,493
|
)
|
|
(6,885
|
)
|
||
Net Cash from Financing Activities
|
|
(22,340
|
)
|
|
14,427
|
|
||
|
|
|
|
|
||||
Net Change in Cash and Cash Equivalents
|
|
(6,543
|
)
|
|
923
|
|
||
Cash and Cash Equivalents at Beginning of Year
|
|
96,550
|
|
|
70,359
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
90,007
|
|
|
$
|
71,282
|
|
|
|
|
|
|
||||
Cash Paid During the Period for
|
|
|
|
|
|
|
||
Interest
|
|
$
|
14,891
|
|
|
$
|
7,641
|
|
Income Taxes
|
|
4,525
|
|
|
2,150
|
|
||
|
|
|
|
|
||||
Supplemental Non Cash Disclosures
|
|
|
|
|
|
|
||
Loans Transferred to Other Real Estate
|
|
$
|
708
|
|
|
$
|
27
|
|
Right of Use Asset Obtained in Exchange for Lease Liabilities
|
|
9,034
|
|
|
—
|
|
|
|
Three Months Ended
|
||||||
|
|
June 30,
|
||||||
Non-interest Income
|
|
2019
|
|
2018
|
||||
In-Scope of Topic 606:
|
|
|
|
|
||||
Trust and Investment Product Fees
|
|
$
|
1,913
|
|
|
$
|
1,677
|
|
Service Charges on Deposit Accounts
|
|
2,024
|
|
|
1,643
|
|
||
Insurance Revenues
|
|
1,929
|
|
|
1,696
|
|
||
Interchange Fee Income
|
|
2,332
|
|
|
1,714
|
|
||
Other Operating Income
|
|
481
|
|
|
442
|
|
||
Non-interest Income (in-scope of Topic 606)
|
|
8,679
|
|
|
7,172
|
|
||
Non-interest Income (out-of-scope of Topic 606)
|
|
1,830
|
|
|
1,710
|
|
||
Total Non-interest Income
|
|
$
|
10,509
|
|
|
$
|
8,882
|
|
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
Non-interest Income
|
|
2019
|
|
2018
|
||||
In-Scope of Topic 606:
|
|
|
|
|
||||
Trust and Investment Product Fees
|
|
$
|
3,480
|
|
|
$
|
3,450
|
|
Service Charges on Deposit Accounts
|
|
3,924
|
|
|
3,114
|
|
||
Insurance Revenues
|
|
5,134
|
|
|
4,626
|
|
||
Interchange Fee Income
|
|
4,427
|
|
|
3,196
|
|
||
Other Operating Income
|
|
930
|
|
|
820
|
|
||
Non-interest Income (in-scope of Topic 606)
|
|
17,895
|
|
|
15,206
|
|
||
Non-interest Income (out-of-scope of Topic 606)
|
|
4,272
|
|
|
3,168
|
|
||
Total Non-interest Income
|
|
$
|
22,167
|
|
|
$
|
18,374
|
|
|
|
Three Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
Basic Earnings per Share:
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
15,271
|
|
|
$
|
11,097
|
|
Weighted Average Shares Outstanding
|
|
24,992,238
|
|
|
22,968,178
|
|
||
Basic Earnings per Share
|
|
$
|
0.61
|
|
|
$
|
0.48
|
|
|
|
|
|
|
||||
Diluted Earnings per Share:
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
15,271
|
|
|
$
|
11,097
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding
|
|
24,992,238
|
|
|
22,968,178
|
|
||
Potentially Dilutive Shares, Net
|
|
—
|
|
|
—
|
|
||
Diluted Weighted Average Shares Outstanding
|
|
24,992,238
|
|
|
22,968,178
|
|
||
Diluted Earnings per Share
|
|
$
|
0.61
|
|
|
$
|
0.48
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
Basic Earnings per Share:
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
30,338
|
|
|
$
|
22,910
|
|
Weighted Average Shares Outstanding
|
|
24,982,107
|
|
|
22,954,367
|
|
||
Basic Earnings per Share
|
|
$
|
1.21
|
|
|
$
|
1.00
|
|
|
|
|
|
|
||||
Diluted Earnings per Share:
|
|
|
|
|
|
|
||
Net Income
|
|
$
|
30,338
|
|
|
$
|
22,910
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding
|
|
24,982,107
|
|
|
22,954,367
|
|
||
Potentially Dilutive Shares, Net
|
|
—
|
|
|
—
|
|
||
Diluted Weighted Average Shares Outstanding
|
|
24,982,107
|
|
|
22,954,367
|
|
||
Diluted Earnings per Share
|
|
$
|
1.21
|
|
|
$
|
1.00
|
|
Securities Available-for-Sale:
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of State and Political Subdivisions
|
|
$
|
290,053
|
|
|
$
|
13,271
|
|
|
$
|
(40
|
)
|
|
$
|
303,284
|
|
MBS/CMO - Residential
|
|
535,914
|
|
|
4,605
|
|
|
(3,111
|
)
|
|
537,408
|
|
||||
Total
|
|
$
|
825,967
|
|
|
$
|
17,876
|
|
|
$
|
(3,151
|
)
|
|
$
|
840,692
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of State and Political Subdivisions
|
|
$
|
291,449
|
|
|
$
|
4,407
|
|
|
$
|
(1,323
|
)
|
|
$
|
294,533
|
|
MBS/CMO - Residential
|
|
529,805
|
|
|
1,029
|
|
|
(12,756
|
)
|
|
518,078
|
|
||||
Total
|
|
$
|
821,254
|
|
|
$
|
5,436
|
|
|
$
|
(14,079
|
)
|
|
$
|
812,611
|
|
Securities Available-for-Sale:
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
2,332
|
|
|
$
|
2,343
|
|
Due after one year through five years
|
|
16,151
|
|
|
16,531
|
|
||
Due after five years through ten years
|
|
73,764
|
|
|
76,979
|
|
||
Due after ten years
|
|
197,806
|
|
|
207,431
|
|
||
MBS/CMO - Residential
|
|
535,914
|
|
|
537,408
|
|
||
Total
|
|
$
|
825,967
|
|
|
$
|
840,692
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
|
|
|
|
|
||||
Proceeds from Sales
|
|
$
|
10,459
|
|
|
$
|
10,220
|
|
Gross Gains on Sales
|
|
516
|
|
|
74
|
|
||
Income Taxes on Gross Gains
|
|
108
|
|
|
16
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
|
|
|
|
|
||||
Proceeds from Sales
|
|
$
|
22,274
|
|
|
$
|
17,515
|
|
Gross Gains on Sales
|
|
671
|
|
|
344
|
|
||
Income Taxes on Gross Gains
|
|
141
|
|
|
73
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
June 30, 2019
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of State and Political Subdivisions
|
|
$
|
4,889
|
|
|
$
|
(30
|
)
|
|
$
|
1,331
|
|
|
$
|
(10
|
)
|
|
$
|
6,220
|
|
|
$
|
(40
|
)
|
MBS/CMO - Residential
|
|
10,154
|
|
|
(36
|
)
|
|
264,051
|
|
|
(3,075
|
)
|
|
274,205
|
|
|
(3,111
|
)
|
||||||
Total
|
|
$
|
15,043
|
|
|
$
|
(66
|
)
|
|
$
|
265,382
|
|
|
$
|
(3,085
|
)
|
|
$
|
280,425
|
|
|
$
|
(3,151
|
)
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
December 31, 2018
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of State and Political Subdivisions
|
|
$
|
37,936
|
|
|
$
|
(286
|
)
|
|
$
|
49,071
|
|
|
$
|
(1,037
|
)
|
|
$
|
87,007
|
|
|
$
|
(1,323
|
)
|
MBS/CMO - Residential
|
|
56,386
|
|
|
(601
|
)
|
|
356,218
|
|
|
(12,155
|
)
|
|
412,604
|
|
|
(12,756
|
)
|
||||||
Total
|
|
$
|
94,322
|
|
|
$
|
(887
|
)
|
|
$
|
405,289
|
|
|
$
|
(13,192
|
)
|
|
$
|
499,611
|
|
|
$
|
(14,079
|
)
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Notional
Amount
|
|
Fair Value
|
|
Notional
Amount
|
|
Fair Value
|
||||||||
Included in Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Rate Swaps
|
|
$
|
84,381
|
|
|
$
|
2,381
|
|
|
$
|
85,587
|
|
|
$
|
1,713
|
|
|
|
|
|
|
|
|
|
|
||||||||
Included in Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest Rate Swaps
|
|
$
|
84,381
|
|
|
$
|
2,607
|
|
|
$
|
85,587
|
|
|
$
|
1,734
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest Rate Swaps:
|
|
|
|
|
|
|
|
|
|
|
||||||
Included in Other Operating Income
|
|
$
|
(132
|
)
|
|
$
|
26
|
|
|
$
|
(206
|
)
|
|
$
|
116
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Commercial:
|
|
|
|
|
|
|
||
Commercial and Industrial Loans and Leases
|
|
$
|
554,290
|
|
|
$
|
543,761
|
|
Commercial Real Estate Loans
|
|
1,213,579
|
|
|
1,208,646
|
|
||
Agricultural Loans
|
|
364,116
|
|
|
365,208
|
|
||
Retail:
|
|
|
|
|
|
|
||
Home Equity Loans
|
|
203,351
|
|
|
207,987
|
|
||
Consumer Loans
|
|
77,612
|
|
|
77,547
|
|
||
Residential Mortgage Loans
|
|
307,726
|
|
|
328,592
|
|
||
Subtotal
|
|
2,720,674
|
|
|
2,731,741
|
|
||
Less: Unearned Income
|
|
(3,646
|
)
|
|
(3,682
|
)
|
||
Allowance for Loan Losses
|
|
(16,239
|
)
|
|
(15,823
|
)
|
||
Loans, Net
|
|
$
|
2,700,789
|
|
|
$
|
2,712,236
|
|
June 30, 2019
|
|
Commercial and Industrial
Loans and Leases
|
|
Commercial Real Estate Loans
|
|
Agricultural
Loans
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||
Beginning Balance
|
|
$
|
3,317
|
|
|
$
|
5,741
|
|
|
$
|
5,453
|
|
|
$
|
214
|
|
|
$
|
483
|
|
|
$
|
429
|
|
|
$
|
606
|
|
|
$
|
16,243
|
|
Provision for Loan Losses
|
|
(303
|
)
|
|
104
|
|
|
272
|
|
|
54
|
|
|
124
|
|
|
(47
|
)
|
|
46
|
|
|
250
|
|
||||||||
Recoveries
|
|
34
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
3
|
|
|
—
|
|
|
144
|
|
||||||||
Loans Charged-off
|
|
(56
|
)
|
|
(18
|
)
|
|
—
|
|
|
(10
|
)
|
|
(278
|
)
|
|
(36
|
)
|
|
—
|
|
|
(398
|
)
|
||||||||
Ending Balance
|
|
$
|
2,992
|
|
|
$
|
5,841
|
|
|
$
|
5,725
|
|
|
$
|
258
|
|
|
$
|
422
|
|
|
$
|
349
|
|
|
$
|
652
|
|
|
$
|
16,239
|
|
June 30, 2018
|
|
Commercial and Industrial
Loans and Leases
|
|
Commercial Real Estate Loans
|
|
Agricultural
Loans
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||
Beginning Balance
|
|
$
|
3,603
|
|
|
$
|
4,622
|
|
|
$
|
4,825
|
|
|
$
|
272
|
|
|
$
|
316
|
|
|
$
|
327
|
|
|
$
|
495
|
|
|
$
|
14,460
|
|
Provision for Loan Losses
|
|
(44
|
)
|
|
335
|
|
|
753
|
|
|
86
|
|
|
107
|
|
|
19
|
|
|
(36
|
)
|
|
1,220
|
|
||||||||
Recoveries
|
|
4
|
|
|
5
|
|
|
—
|
|
|
8
|
|
|
68
|
|
|
29
|
|
|
—
|
|
|
114
|
|
||||||||
Loans Charged-off
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
(9
|
)
|
|
—
|
|
|
(157
|
)
|
||||||||
Ending Balance
|
|
$
|
3,563
|
|
|
$
|
4,958
|
|
|
$
|
5,578
|
|
|
$
|
366
|
|
|
$
|
347
|
|
|
$
|
366
|
|
|
$
|
459
|
|
|
$
|
15,637
|
|
June 30, 2019
|
|
Commercial and Industrial
Loans and Leases
|
|
Commercial Real Estate Loans
|
|
Agricultural
Loans
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||
Beginning Balance
|
|
$
|
2,953
|
|
|
$
|
5,291
|
|
|
$
|
5,776
|
|
|
$
|
229
|
|
|
$
|
420
|
|
|
$
|
472
|
|
|
$
|
682
|
|
|
$
|
15,823
|
|
Provision for Loan Losses
|
|
44
|
|
|
669
|
|
|
(51
|
)
|
|
39
|
|
|
333
|
|
|
(79
|
)
|
|
(30
|
)
|
|
925
|
|
||||||||
Recoveries
|
|
51
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
214
|
|
|
6
|
|
|
—
|
|
|
290
|
|
||||||||
Loans Charged-off
|
|
(56
|
)
|
|
(138
|
)
|
|
—
|
|
|
(10
|
)
|
|
(545
|
)
|
|
(50
|
)
|
|
—
|
|
|
(799
|
)
|
||||||||
Ending Balance
|
|
$
|
2,992
|
|
|
$
|
5,841
|
|
|
$
|
5,725
|
|
|
$
|
258
|
|
|
$
|
422
|
|
|
$
|
349
|
|
|
$
|
652
|
|
|
$
|
16,239
|
|
June 30, 2018
|
|
Commercial and Industrial
Loans and Leases
|
|
Commercial Real Estate Loans
|
|
Agricultural
Loans
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||
Beginning Balance
|
|
$
|
4,735
|
|
|
$
|
4,591
|
|
|
$
|
4,894
|
|
|
$
|
330
|
|
|
$
|
298
|
|
|
$
|
343
|
|
|
$
|
503
|
|
|
$
|
15,694
|
|
Provision for Loan Losses
|
|
323
|
|
|
360
|
|
|
684
|
|
|
42
|
|
|
204
|
|
|
1
|
|
|
(44
|
)
|
|
1,570
|
|
||||||||
Recoveries
|
|
5
|
|
|
11
|
|
|
—
|
|
|
10
|
|
|
157
|
|
|
31
|
|
|
—
|
|
|
214
|
|
||||||||
Loans Charged-off
|
|
(1,500
|
)
|
|
(4
|
)
|
|
—
|
|
|
(16
|
)
|
|
(312
|
)
|
|
(9
|
)
|
|
—
|
|
|
(1,841
|
)
|
||||||||
Ending Balance
|
|
$
|
3,563
|
|
|
$
|
4,958
|
|
|
$
|
5,578
|
|
|
$
|
366
|
|
|
$
|
347
|
|
|
$
|
366
|
|
|
$
|
459
|
|
|
$
|
15,637
|
|
June 30, 2019
|
|
Total
|
|
Commercial and Industrial
Loans and Leases
|
|
Commercial Real Estate Loans
|
|
Agricultural Loans
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
|
Unallocated
|
||||||||||||||||
Allowance for Loan Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending Allowance Balance Attributable to Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually Evaluated for Impairment
|
|
$
|
1,550
|
|
|
$
|
139
|
|
|
$
|
1,411
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively Evaluated for Impairment
|
|
14,327
|
|
|
2,853
|
|
|
4,073
|
|
|
5,725
|
|
|
258
|
|
|
422
|
|
|
344
|
|
|
652
|
|
||||||||
Acquired with Deteriorated Credit Quality
|
|
362
|
|
|
—
|
|
|
357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||||
Total Ending Allowance Balance
|
|
$
|
16,239
|
|
|
$
|
2,992
|
|
|
$
|
5,841
|
|
|
$
|
5,725
|
|
|
$
|
258
|
|
|
$
|
422
|
|
|
$
|
349
|
|
|
$
|
652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans Individually Evaluated for Impairment
|
|
$
|
6,047
|
|
|
$
|
2,115
|
|
|
$
|
3,932
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
n/m(2)
|
|
|
Loans Collectively Evaluated for Impairment
|
|
2,716,376
|
|
|
552,938
|
|
|
1,207,345
|
|
|
367,030
|
|
|
203,982
|
|
|
77,824
|
|
|
307,257
|
|
|
n/m(2)
|
|
||||||||
Loans Acquired with Deteriorated Credit Quality
|
|
10,029
|
|
|
882
|
|
|
5,629
|
|
|
1,882
|
|
|
368
|
|
|
—
|
|
|
1,268
|
|
|
n/m(2)
|
|
||||||||
Total Ending Loans Balance(1)
|
|
$
|
2,732,452
|
|
|
$
|
555,935
|
|
|
$
|
1,216,906
|
|
|
$
|
368,912
|
|
|
$
|
204,350
|
|
|
$
|
77,824
|
|
|
$
|
308,525
|
|
|
n/m(2)
|
|
December 31, 2018
|
|
Total
|
|
Commercial and Industrial
Loans and Leases
|
|
Commercial Real Estate Loans
|
|
Agricultural Loans
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
|
Unallocated
|
||||||||||||||||
Allowance for Loan Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending Allowance Balance Attributable to Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually Evaluated for Impairment
|
|
$
|
1,823
|
|
|
$
|
143
|
|
|
$
|
1,680
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively Evaluated for Impairment
|
|
13,992
|
|
|
2,810
|
|
|
3,608
|
|
|
5,776
|
|
|
229
|
|
|
420
|
|
|
467
|
|
|
682
|
|
||||||||
Acquired with Deteriorated Credit Quality
|
|
8
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||||||
Total Ending Allowance Balance
|
|
$
|
15,823
|
|
|
$
|
2,953
|
|
|
$
|
5,291
|
|
|
$
|
5,776
|
|
|
$
|
229
|
|
|
$
|
420
|
|
|
$
|
472
|
|
|
$
|
682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans Individually Evaluated for Impairment
|
|
$
|
9,619
|
|
|
$
|
3,536
|
|
|
$
|
6,083
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
n/m(2)
|
|
|
Loans Collectively Evaluated for Impairment
|
|
2,722,867
|
|
|
540,768
|
|
|
1,198,806
|
|
|
368,817
|
|
|
208,644
|
|
|
77,761
|
|
|
328,071
|
|
|
n/m(2)
|
|
||||||||
Loans Acquired with Deteriorated Credit Quality
|
|
11,556
|
|
|
1,038
|
|
|
6,993
|
|
|
1,877
|
|
|
365
|
|
|
—
|
|
|
1,283
|
|
|
n/m(2)
|
|
||||||||
Total Ending Loans Balance(1)
|
|
$
|
2,744,042
|
|
|
$
|
545,342
|
|
|
$
|
1,211,882
|
|
|
$
|
370,694
|
|
|
$
|
209,009
|
|
|
$
|
77,761
|
|
|
$
|
329,354
|
|
|
n/m(2)
|
|
June 30, 2019
|
|
Unpaid Principal Balance(1)
|
|
Recorded Investment
|
|
Allowance for Loan Losses Allocated
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
$
|
2,346
|
|
|
$
|
142
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
4,003
|
|
|
2,615
|
|
|
—
|
|
|||
Agricultural Loans
|
|
1,742
|
|
|
1,475
|
|
|
—
|
|
|||
Subtotal
|
|
8,091
|
|
|
4,232
|
|
|
—
|
|
|||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
1,974
|
|
|
1,974
|
|
|
139
|
|
|||
Commercial Real Estate Loans
|
|
4,314
|
|
|
3,981
|
|
|
1,768
|
|
|||
Agricultural Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
6,288
|
|
|
5,955
|
|
|
1,907
|
|
|||
Total
|
|
$
|
14,379
|
|
|
$
|
10,187
|
|
|
$
|
1,907
|
|
|
|
|
|
|
|
|
||||||
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
|
|
$
|
6,884
|
|
|
$
|
3,320
|
|
|
$
|
—
|
|
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
|
|
$
|
1,142
|
|
|
$
|
820
|
|
|
$
|
357
|
|
December 31, 2018
|
|
Unpaid Principal Balance(1)
|
|
Recorded Investment
|
|
Allowance for Loan Losses Allocated
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
$
|
3,721
|
|
|
$
|
1,183
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
5,828
|
|
|
4,383
|
|
|
—
|
|
|||
Agricultural Loans
|
|
1,726
|
|
|
1,450
|
|
|
—
|
|
|||
Subtotal
|
|
11,275
|
|
|
7,016
|
|
|
—
|
|
|||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
2,353
|
|
|
2,353
|
|
|
143
|
|
|||
Commercial Real Estate Loans
|
|
4,404
|
|
|
4,212
|
|
|
1,683
|
|
|||
Agricultural Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
6,757
|
|
|
6,565
|
|
|
1,826
|
|
|||
Total
|
|
$
|
18,032
|
|
|
$
|
13,581
|
|
|
$
|
1,826
|
|
|
|
|
|
|
|
|
||||||
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
|
|
$
|
8,060
|
|
|
$
|
3,958
|
|
|
$
|
—
|
|
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
|
|
$
|
196
|
|
|
$
|
4
|
|
|
$
|
3
|
|
June 30, 2019
|
|
Average Recorded
Investment
|
|
Interest Income Recognized
|
|
Cash Basis
Recognized
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
$
|
164
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
2,981
|
|
|
11
|
|
|
—
|
|
|||
Agricultural Loans
|
|
1,412
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
4,557
|
|
|
13
|
|
|
—
|
|
|||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
2,128
|
|
|
—
|
|
|
—
|
|
|||
Commercial Real Estate Loans
|
|
3,957
|
|
|
—
|
|
|
—
|
|
|||
Agricultural Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
6,085
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
10,642
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
|
|
$
|
3,386
|
|
|
$
|
8
|
|
|
$
|
—
|
|
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
|
|
$
|
744
|
|
|
$
|
—
|
|
|
$
|
—
|
|
June 30, 2018
|
|
Average Recorded
Investment
|
|
Interest Income Recognized
|
|
Cash Basis
Recognized
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
$
|
1,142
|
|
|
$
|
13
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
1,180
|
|
|
13
|
|
|
—
|
|
|||
Agricultural Loans
|
|
546
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
2,868
|
|
|
26
|
|
|
—
|
|
|||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
2,690
|
|
|
1
|
|
|
—
|
|
|||
Commercial Real Estate Loans
|
|
5,130
|
|
|
6
|
|
|
—
|
|
|||
Agricultural Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
7,820
|
|
|
7
|
|
|
—
|
|
|||
Total
|
|
$
|
10,688
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
|
|
$
|
546
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
|
|
$
|
207
|
|
|
$
|
7
|
|
|
$
|
—
|
|
June 30, 2019
|
|
Average Recorded
Investment
|
|
Interest Income Recognized
|
|
Cash Basis
Recognized
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
$
|
301
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
3,291
|
|
|
28
|
|
|
—
|
|
|||
Agricultural Loans
|
|
1,409
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
5,001
|
|
|
32
|
|
|
—
|
|
|||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
2,207
|
|
|
—
|
|
|
—
|
|
|||
Commercial Real Estate Loans
|
|
4,324
|
|
|
—
|
|
|
—
|
|
|||
Agricultural Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
6,531
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
11,532
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
|
|
$
|
4,414
|
|
|
$
|
15
|
|
|
$
|
—
|
|
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
|
|
$
|
3,861
|
|
|
$
|
—
|
|
|
$
|
—
|
|
June 30, 2018
|
|
Average Recorded
Investment
|
|
Interest Income Recognized
|
|
Cash Basis
Recognized
|
||||||
With No Related Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
$
|
1,163
|
|
|
$
|
26
|
|
|
$
|
1
|
|
Commercial Real Estate Loans
|
|
1,294
|
|
|
26
|
|
|
6
|
|
|||
Agricultural Loans
|
|
623
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
3,080
|
|
|
52
|
|
|
7
|
|
|||
With An Allowance Recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and Industrial Loans and Leases
|
|
3,487
|
|
|
2
|
|
|
—
|
|
|||
Commercial Real Estate Loans
|
|
4,876
|
|
|
9
|
|
|
—
|
|
|||
Agricultural Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
|
8,363
|
|
|
11
|
|
|
—
|
|
|||
Total
|
|
$
|
11,443
|
|
|
$
|
63
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
||||||
Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
|
|
$
|
548
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
|
|
$
|
211
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
|
Non-Accrual Loans
|
|
Loans Past Due 90 Days
or More & Still Accruing
|
||||||||||||
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
|
December 31,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Commercial and Industrial Loans and Leases
|
|
$
|
1,997
|
|
|
$
|
2,430
|
|
|
$
|
455
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
5,748
|
|
|
6,833
|
|
|
114
|
|
|
368
|
|
||||
Agricultural Loans
|
|
1,475
|
|
|
1,449
|
|
|
435
|
|
|
274
|
|
||||
Home Equity Loans
|
|
90
|
|
|
88
|
|
|
—
|
|
|
—
|
|
||||
Consumer Loans
|
|
113
|
|
|
162
|
|
|
—
|
|
|
—
|
|
||||
Residential Mortgage Loans
|
|
1,506
|
|
|
1,617
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
10,929
|
|
|
$
|
12,579
|
|
|
$
|
1,004
|
|
|
$
|
642
|
|
Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
|
|
$
|
4,452
|
|
|
$
|
4,162
|
|
|
$
|
78
|
|
|
$
|
141
|
|
Loans Acquired in Current Year (Included in the Total Above)
|
|
$
|
—
|
|
|
$
|
4,603
|
|
|
$
|
—
|
|
|
$
|
96
|
|
June 30, 2019
|
|
Total
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days or More Past Due
|
|
Total
Past Due
|
|
Loans Not Past Due
|
||||||||||||
Commercial and Industrial Loans and Leases
|
|
$
|
555,935
|
|
|
$
|
298
|
|
|
$
|
47
|
|
|
$
|
455
|
|
|
$
|
800
|
|
|
$
|
555,135
|
|
Commercial Real Estate Loans
|
|
1,216,906
|
|
|
1,562
|
|
|
467
|
|
|
1,467
|
|
|
3,496
|
|
|
1,213,410
|
|
||||||
Agricultural Loans
|
|
368,912
|
|
|
1,857
|
|
|
180
|
|
|
435
|
|
|
2,472
|
|
|
366,440
|
|
||||||
Home Equity Loans
|
|
204,350
|
|
|
609
|
|
|
213
|
|
|
89
|
|
|
911
|
|
|
203,439
|
|
||||||
Consumer Loans
|
|
77,824
|
|
|
690
|
|
|
46
|
|
|
83
|
|
|
819
|
|
|
77,005
|
|
||||||
Residential Mortgage Loans
|
|
308,525
|
|
|
4,675
|
|
|
1,165
|
|
|
1,181
|
|
|
7,021
|
|
|
301,504
|
|
||||||
Total(1)
|
|
$
|
2,732,452
|
|
|
$
|
9,691
|
|
|
$
|
2,118
|
|
|
$
|
3,710
|
|
|
$
|
15,519
|
|
|
$
|
2,716,933
|
|
Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
|
|
$
|
10,029
|
|
|
$
|
860
|
|
|
$
|
26
|
|
|
$
|
974
|
|
|
$
|
1,860
|
|
|
$
|
8,169
|
|
December 31, 2018
|
|
Total
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days or More Past Due
|
|
Total
Past Due
|
|
Loans Not Past Due
|
||||||||||||
Commercial and Industrial Loans and Leases
|
|
$
|
545,342
|
|
|
$
|
5,414
|
|
|
$
|
183
|
|
|
$
|
72
|
|
|
$
|
5,669
|
|
|
$
|
539,673
|
|
Commercial Real Estate Loans
|
|
1,211,882
|
|
|
768
|
|
|
705
|
|
|
3,032
|
|
|
4,505
|
|
|
1,207,377
|
|
||||||
Agricultural Loans
|
|
370,694
|
|
|
563
|
|
|
805
|
|
|
274
|
|
|
1,642
|
|
|
369,052
|
|
||||||
Home Equity Loans
|
|
209,009
|
|
|
471
|
|
|
125
|
|
|
60
|
|
|
656
|
|
|
208,353
|
|
||||||
Consumer Loans
|
|
77,761
|
|
|
971
|
|
|
94
|
|
|
149
|
|
|
1,214
|
|
|
76,547
|
|
||||||
Residential Mortgage Loans
|
|
329,354
|
|
|
4,771
|
|
|
1,520
|
|
|
1,387
|
|
|
7,678
|
|
|
321,676
|
|
||||||
Total(1)
|
|
$
|
2,744,042
|
|
|
$
|
12,958
|
|
|
$
|
3,432
|
|
|
$
|
4,974
|
|
|
$
|
21,364
|
|
|
$
|
2,722,678
|
|
Loans Acquired With Deteriorated Credit Quality (Included in the Total Above)
|
|
$
|
11,556
|
|
|
$
|
448
|
|
|
$
|
885
|
|
|
$
|
1,259
|
|
|
$
|
2,592
|
|
|
$
|
8,964
|
|
Loans Acquired in Current Year
(Included in the Total Above)
|
|
$
|
481,901
|
|
|
$
|
2,571
|
|
|
$
|
1,620
|
|
|
$
|
2,191
|
|
|
$
|
6,382
|
|
|
$
|
475,519
|
|
June 30, 2019
|
|
Total
|
|
Performing
|
|
Non-Accrual(1)
|
||||||
Commercial and Industrial Loans and Leases
|
|
$
|
118
|
|
|
$
|
118
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
118
|
|
|
$
|
118
|
|
|
$
|
—
|
|
December 31, 2018
|
|
Total
|
|
Performing
|
|
Non-Accrual(1)
|
||||||
Commercial and Industrial Loans and Leases
|
|
$
|
121
|
|
|
$
|
121
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
121
|
|
|
$
|
121
|
|
|
$
|
—
|
|
June 30, 2019
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and Industrial Loans and Leases
|
|
$
|
536,263
|
|
|
$
|
5,745
|
|
|
$
|
13,927
|
|
|
$
|
—
|
|
|
$
|
555,935
|
|
Commercial Real Estate Loans
|
|
1,182,369
|
|
|
22,329
|
|
|
12,208
|
|
|
—
|
|
|
1,216,906
|
|
|||||
Agricultural Loans
|
|
309,423
|
|
|
47,012
|
|
|
12,477
|
|
|
—
|
|
|
368,912
|
|
|||||
Total
|
|
$
|
2,028,055
|
|
|
$
|
75,086
|
|
|
$
|
38,612
|
|
|
$
|
—
|
|
|
$
|
2,141,753
|
|
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
|
|
$
|
230
|
|
|
$
|
1,435
|
|
|
$
|
6,728
|
|
|
$
|
—
|
|
|
$
|
8,393
|
|
December 31, 2018
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial and Industrial Loans and Leases
|
|
$
|
517,497
|
|
|
$
|
7,541
|
|
|
$
|
20,304
|
|
|
$
|
—
|
|
|
$
|
545,342
|
|
Commercial Real Estate Loans
|
|
1,165,937
|
|
|
26,723
|
|
|
19,222
|
|
|
—
|
|
|
1,211,882
|
|
|||||
Agricultural Loans
|
|
313,309
|
|
|
40,983
|
|
|
16,402
|
|
|
—
|
|
|
370,694
|
|
|||||
Total
|
|
$
|
1,996,743
|
|
|
$
|
75,247
|
|
|
$
|
55,928
|
|
|
$
|
—
|
|
|
$
|
2,127,918
|
|
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
|
|
$
|
—
|
|
|
$
|
1,436
|
|
|
$
|
8,472
|
|
|
$
|
—
|
|
|
$
|
9,908
|
|
Loans Acquired in Current Year
(Included in the Total Above)
|
|
$
|
250,415
|
|
|
$
|
14,972
|
|
|
$
|
11,521
|
|
|
$
|
—
|
|
|
$
|
276,908
|
|
June 30, 2019
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
||||||
Performing
|
|
$
|
204,260
|
|
|
$
|
77,711
|
|
|
$
|
307,019
|
|
Nonperforming
|
|
90
|
|
|
113
|
|
|
1,506
|
|
|||
Total
|
|
$
|
204,350
|
|
|
$
|
77,824
|
|
|
$
|
308,525
|
|
December 31, 2018
|
|
Home Equity Loans
|
|
Consumer Loans
|
|
Residential Mortgage Loans
|
||||||
Performing
|
|
$
|
208,921
|
|
|
$
|
77,599
|
|
|
$
|
327,737
|
|
Nonperforming
|
|
88
|
|
|
162
|
|
|
1,617
|
|
|||
Total
|
|
$
|
209,009
|
|
|
$
|
77,761
|
|
|
$
|
329,354
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
|
||||
Commercial and Industrial Loans
|
|
$
|
882
|
|
|
$
|
1,038
|
|
Commercial Real Estate Loans
|
|
5,629
|
|
|
6,993
|
|
||
Agricultural Loans
|
|
1,882
|
|
|
1,877
|
|
||
Home Equity Loans
|
|
368
|
|
|
365
|
|
||
Residential Mortgage Loans
|
|
1,268
|
|
|
1,283
|
|
||
Total
|
|
$
|
10,029
|
|
|
$
|
11,556
|
|
|
|
|
|
|
|
|
||
Carrying Amount, Net of Allowance
|
|
$
|
9,626
|
|
|
$
|
11,548
|
|
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Balance at April 1
|
|
$
|
3,203
|
|
|
$
|
2,739
|
|
New Loans Purchased
|
|
—
|
|
|
—
|
|
||
Accretion of Income
|
|
(202
|
)
|
|
(140
|
)
|
||
Reclassifications from Non-accretable Difference
|
|
131
|
|
|
65
|
|
||
Charge-off of Accretable Yield
|
|
—
|
|
|
(97
|
)
|
||
Balance at June 30
|
|
$
|
3,132
|
|
|
$
|
2,567
|
|
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Balance at January 1
|
|
$
|
3,138
|
|
|
$
|
2,734
|
|
New Loans Purchased
|
|
—
|
|
|
—
|
|
||
Accretion of Income
|
|
(524
|
)
|
|
(221
|
)
|
||
Reclassifications from Non-accretable Difference
|
|
518
|
|
|
151
|
|
||
Charge-off of Accretable Yield
|
|
—
|
|
|
(97
|
)
|
||
Balance at June 30
|
|
$
|
3,132
|
|
|
$
|
2,567
|
|
|
|
Core
Banking |
|
Trust and Investment Advisory Services
|
|
Insurance
|
|
Other
|
|
Consolidated Totals
|
||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Income
|
|
$
|
34,182
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
(549
|
)
|
|
$
|
33,641
|
|
Net Gains on Sales of Loans
|
|
1,030
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,030
|
|
|||||
Net Gains on Securities
|
|
516
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
516
|
|
|||||
Trust and Investment Product Fees
|
|
1
|
|
|
1,912
|
|
|
—
|
|
|
—
|
|
|
1,913
|
|
|||||
Insurance Revenues
|
|
4
|
|
|
4
|
|
|
1,921
|
|
|
—
|
|
|
1,929
|
|
|||||
Noncash Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Provision for Loan Losses
|
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|||||
Depreciation and Amortization
|
|
1,976
|
|
|
2
|
|
|
21
|
|
|
64
|
|
|
2,063
|
|
|||||
Income Tax Expense (Benefit)
|
|
3,437
|
|
|
128
|
|
|
50
|
|
|
(604
|
)
|
|
3,011
|
|
|||||
Segment Profit (Loss)
|
|
15,068
|
|
|
372
|
|
|
147
|
|
|
(316
|
)
|
|
15,271
|
|
|||||
Segment Assets at June 30, 2019
|
|
3,944,736
|
|
|
3,324
|
|
|
8,784
|
|
|
13,895
|
|
|
3,970,739
|
|
|
|
Core
Banking |
|
Trust and Investment Advisory Services
|
|
Insurance
|
|
Other
|
|
Consolidated Totals
|
||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Interest Income
|
|
$
|
27,672
|
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
(205
|
)
|
|
$
|
27,469
|
|
Net Gains on Sales of Loans
|
|
905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
905
|
|
|||||
Net Gains on Securities
|
|
74
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|||||
Trust and Investment Product Fees
|
|
—
|
|
|
1,677
|
|
|
—
|
|
|
—
|
|
|
1,677
|
|
|||||
Insurance Revenues
|
|
5
|
|
|
2
|
|
|
1,689
|
|
|
—
|
|
|
1,696
|
|
|||||
Noncash Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Provision for Loan Losses
|
|
1,220
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,220
|
|
|||||
Depreciation and Amortization
|
|
1,316
|
|
|
1
|
|
|
21
|
|
|
64
|
|
|
1,402
|
|
|||||
Income Tax Expense (Benefit)
|
|
2,487
|
|
|
96
|
|
|
13
|
|
|
(270
|
)
|
|
2,326
|
|
|||||
Segment Profit (Loss)
|
|
11,478
|
|
|
269
|
|
|
30
|
|
|
(680
|
)
|
|
11,097
|
|
|||||
Segment Assets at December 31, 2018
|
|
3,926,242
|
|
|
2,658
|
|
|
11,368
|
|
|
(11,178
|
)
|
|
3,929,090
|
|
|
|
Core
Banking
|
|
Trust and Investment Advisory Services
|
|
Insurance
|
|
Other
|
|
Consolidated Totals
|
||||||||||
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net Interest Income
|
|
$
|
68,317
|
|
|
$
|
6
|
|
|
$
|
9
|
|
|
$
|
(1,100
|
)
|
|
$
|
67,232
|
|
Net Gains on Sales of Loans
|
|
2,011
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,011
|
|
|||||
Net Gains on Securities
|
|
671
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
671
|
|
|||||
Trust and Investment Product Fees
|
|
2
|
|
|
3,478
|
|
|
—
|
|
|
—
|
|
|
3,480
|
|
|||||
Insurance Revenues
|
|
7
|
|
|
25
|
|
|
5,102
|
|
|
—
|
|
|
5,134
|
|
|||||
Noncash Items:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Provision for Loan Losses
|
|
925
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
925
|
|
|||||
Depreciation and Amortization
|
|
3,903
|
|
|
3
|
|
|
39
|
|
|
128
|
|
|
4,073
|
|
|||||
Income Tax Expense (Benefit)
|
|
6,092
|
|
|
204
|
|
|
407
|
|
|
(944
|
)
|
|
5,759
|
|
|||||
Segment Profit (Loss)
|
|
29,567
|
|
|
587
|
|
|
1,237
|
|
|
(1,053
|
)
|
|
30,338
|
|
|||||
Segment Assets at June 30, 2019
|
|
3,944,736
|
|
|
3,324
|
|
|
8,784
|
|
|
13,895
|
|
|
3,970,739
|
|
|
|
Core
Banking
|
|
Trust and Investment Advisory Services
|
|
Insurance
|
|
Other
|
|
Consolidated Totals
|
||||||||||
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net Interest Income
|
|
$
|
53,462
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
(390
|
)
|
|
$
|
53,079
|
|
Net Gains on Sales of Loans
|
|
1,555
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,555
|
|
|||||
Net Gains on Securities
|
|
344
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|||||
Trust and Investment Product Fees
|
|
2
|
|
|
3,448
|
|
|
—
|
|
|
—
|
|
|
3,450
|
|
|||||
Insurance Revenues
|
|
6
|
|
|
4
|
|
|
4,616
|
|
|
—
|
|
|
4,626
|
|
|||||
Noncash Items:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Provision for Loan Losses
|
|
1,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,570
|
|
|||||
Depreciation and Amortization
|
|
2,431
|
|
|
2
|
|
|
40
|
|
|
128
|
|
|
2,601
|
|
|||||
Income Tax Expense (Benefit)
|
|
4,731
|
|
|
232
|
|
|
334
|
|
|
(487
|
)
|
|
4,810
|
|
|||||
Segment Profit (Loss)
|
|
22,240
|
|
|
654
|
|
|
969
|
|
|
(953
|
)
|
|
22,910
|
|
|||||
Segment Assets at December 31, 2018
|
|
3,926,242
|
|
|
2,658
|
|
|
11,368
|
|
|
(11,178
|
)
|
|
3,929,090
|
|
|
|
Three Months Ended
June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
|
|
||
Restricted Stock Expense
|
|
$
|
311
|
|
|
$
|
383
|
|
Cash Entitlement Expense
|
|
152
|
|
|
172
|
|
||
Tax Effect
|
|
(120
|
)
|
|
(145
|
)
|
||
Net of Tax
|
|
$
|
343
|
|
|
$
|
410
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Restricted Stock Expense
|
|
$
|
622
|
|
|
$
|
661
|
|
Cash Entitlement Expense
|
|
302
|
|
|
342
|
|
||
Tax Effect
|
|
(240
|
)
|
|
(262
|
)
|
||
Net of Tax
|
|
$
|
684
|
|
|
$
|
741
|
|
|
|
Fair Value Measurements at June 30, 2019 Using
|
||||||||||||||
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant
Unobservable Inputs (Level 3)
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Obligations of State and Political Subdivisions
|
|
$
|
—
|
|
|
$
|
298,778
|
|
|
$
|
4,506
|
|
|
$
|
303,284
|
|
MBS/CMO - Residential
|
|
—
|
|
|
537,408
|
|
|
—
|
|
|
537,408
|
|
||||
Total Securities
|
|
$
|
—
|
|
|
$
|
836,186
|
|
|
$
|
4,506
|
|
|
$
|
840,692
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans Held-for-Sale
|
|
$
|
—
|
|
|
$
|
14,184
|
|
|
$
|
—
|
|
|
$
|
14,184
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Assets
|
|
$
|
—
|
|
|
$
|
2,381
|
|
|
$
|
—
|
|
|
$
|
2,381
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Liabilities
|
|
$
|
—
|
|
|
$
|
2,607
|
|
|
$
|
—
|
|
|
$
|
2,607
|
|
|
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant
Unobservable Inputs (Level 3)
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Obligations of State and Political Subdivisions
|
|
$
|
—
|
|
|
$
|
289,542
|
|
|
$
|
4,991
|
|
|
$
|
294,533
|
|
MBS/CMO - Residential
|
|
—
|
|
|
518,078
|
|
|
—
|
|
|
518,078
|
|
||||
Total Securities
|
|
$
|
—
|
|
|
$
|
807,620
|
|
|
$
|
4,991
|
|
|
$
|
812,611
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans Held-for-Sale
|
|
$
|
—
|
|
|
$
|
4,263
|
|
|
$
|
—
|
|
|
$
|
4,263
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Assets
|
|
$
|
—
|
|
|
$
|
1,713
|
|
|
$
|
—
|
|
|
$
|
1,713
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Liabilities
|
|
$
|
—
|
|
|
$
|
1,734
|
|
|
$
|
—
|
|
|
$
|
1,734
|
|
|
|
Obligations of State and Political Subdivisions
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Balance of Recurring Level 3 Assets at April 1
|
|
$
|
4,512
|
|
|
$
|
5,171
|
|
Total Gains or Losses Included in Other Comprehensive Income
|
|
(6
|
)
|
|
(4
|
)
|
||
Maturities / Calls
|
|
—
|
|
|
—
|
|
||
Purchases
|
|
—
|
|
|
—
|
|
||
Balance of Recurring Level 3 Assets at June 30
|
|
$
|
4,506
|
|
|
$
|
5,167
|
|
|
|
Obligations of State and Political Subdivisions
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
|
|
||
Balance of Recurring Level 3 Assets at January 1
|
|
$
|
4,991
|
|
|
$
|
5,649
|
|
Total Gains or Losses Included in Other Comprehensive Income
|
|
(15
|
)
|
|
(22
|
)
|
||
Maturities / Calls
|
|
(470
|
)
|
|
(460
|
)
|
||
Purchases
|
|
—
|
|
|
—
|
|
||
Balance of Recurring Level 3 Assets at June 30
|
|
$
|
4,506
|
|
|
$
|
5,167
|
|
|
|
Fair Value Measurements at June 30, 2019 Using
|
||||||||||||||
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable
Inputs (Level 3)
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and Industrial Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,835
|
|
|
$
|
1,835
|
|
Commercial Real Estate Loans
|
|
—
|
|
|
—
|
|
|
1,750
|
|
|
1,750
|
|
|
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable
Inputs (Level 3)
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and Industrial Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,210
|
|
|
$
|
2,210
|
|
Commercial Real Estate Loans
|
|
—
|
|
|
—
|
|
|
2,528
|
|
|
2,528
|
|
June 30, 2019
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range (Weighted Average)
|
||
|
|
|
|
|
|
|
|
|
|
|
Impaired Loans - Commercial and Industrial Loans
|
|
$
|
1,835
|
|
|
Sales comparison approach
|
|
Adjustment for physical condition of comparable properties sold
|
|
60%-100%
(61%)
|
Impaired Loans - Commercial Real Estate Loans
|
|
$
|
1,750
|
|
|
Sales comparison approach
|
|
Adjustment for physical condition of comparable properties sold
|
|
47%-76%
(60%)
|
December 31, 2018
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range (Weighted Average)
|
||
|
|
|
|
|
|
|
|
|
||
Impaired Loans - Commercial and Industrial Loans
|
|
$
|
2,210
|
|
|
Sales comparison approach
|
|
Adjustment for physical condition of comparable properties sold
|
|
0%-100%
(99%)
|
Impaired Loans - Commercial Real Estate Loans
|
|
$
|
2,528
|
|
|
Sales comparison approach
|
|
Adjustment for physical condition of comparable properties sold
|
|
22%-76%
(55%)
|
|
|
|
|
Fair Value Measurements at
June 30, 2019 Using
|
||||||||||||||||
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and Short-term Investments
|
|
$
|
90,007
|
|
|
$
|
48,634
|
|
|
$
|
41,373
|
|
|
$
|
—
|
|
|
$
|
90,007
|
|
Interest Bearing Time Deposits with Banks
|
|
250
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|||||
Loans, Net
|
|
2,697,204
|
|
|
—
|
|
|
—
|
|
|
2,684,900
|
|
|
2,684,900
|
|
|||||
Accrued Interest Receivable
|
|
16,210
|
|
|
—
|
|
|
4,389
|
|
|
11,821
|
|
|
16,210
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand, Savings, and Money Market Deposits
|
|
(2,531,061
|
)
|
|
(2,531,061
|
)
|
|
—
|
|
|
—
|
|
|
(2,531,061
|
)
|
|||||
Time Deposits
|
|
(597,771
|
)
|
|
—
|
|
|
(597,447
|
)
|
|
—
|
|
|
(597,447
|
)
|
|||||
Short-term Borrowings
|
|
(142,318
|
)
|
|
(106,000
|
)
|
|
(36,318
|
)
|
|
—
|
|
|
(142,318
|
)
|
|||||
Long-term Debt
|
|
(163,622
|
)
|
|
—
|
|
|
(152,022
|
)
|
|
(8,751
|
)
|
|
(160,773
|
)
|
|||||
Accrued Interest Payable
|
|
(2,060
|
)
|
|
—
|
|
|
(2,040
|
)
|
|
(20
|
)
|
|
(2,060
|
)
|
|
|
|
|
Fair Value Measurements at
December 31, 2018 Using
|
||||||||||||||||
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and Short-term Investments
|
|
$
|
96,550
|
|
|
$
|
64,549
|
|
|
$
|
32,001
|
|
|
$
|
—
|
|
|
$
|
96,550
|
|
Interest Bearing Time Deposits with Banks
|
|
250
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|||||
Loans, Net
|
|
2,707,498
|
|
|
—
|
|
|
—
|
|
|
2,689,393
|
|
|
2,689,393
|
|
|||||
Accrued Interest Receivable
|
|
16,634
|
|
|
—
|
|
|
4,143
|
|
|
12,491
|
|
|
16,634
|
|
|||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand, Savings, and Money Market Deposits
|
|
(2,484,149
|
)
|
|
(2,848,149
|
)
|
|
—
|
|
|
—
|
|
|
(2,848,149
|
)
|
|||||
Time Deposits
|
|
(588,483
|
)
|
|
—
|
|
|
(586,338
|
)
|
|
—
|
|
|
(586,338
|
)
|
|||||
Short-term Borrowings
|
|
(249,774
|
)
|
|
(204,500
|
)
|
|
(45,274
|
)
|
|
—
|
|
|
(249,774
|
)
|
|||||
Long-term Debt
|
|
(126,635
|
)
|
|
—
|
|
|
(117,513
|
)
|
|
(11,315
|
)
|
|
(128,828
|
)
|
|||||
Accrued Interest Payable
|
|
(1,740
|
)
|
|
—
|
|
|
(1,718
|
)
|
|
(22
|
)
|
|
(1,740
|
)
|
June 30, 2019
|
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
Postretirement Benefit Items
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Beginning Balance at April 1, 2019
|
|
$
|
2,655
|
|
|
$
|
(339
|
)
|
|
$
|
2,316
|
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
9,299
|
|
|
—
|
|
|
9,299
|
|
|||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
(408
|
)
|
|
—
|
|
|
(408
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
8,891
|
|
|
—
|
|
|
8,891
|
|
|||
Ending Balance at June 30, 2019
|
|
$
|
11,546
|
|
|
$
|
(339
|
)
|
|
$
|
11,207
|
|
June 30, 2019
|
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
Postretirement Benefit Items
|
|
Total
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Beginning Balance at January 1, 2019
|
|
$
|
(6,759
|
)
|
|
$
|
(339
|
)
|
|
$
|
(7,098
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
18,835
|
|
|
—
|
|
|
18,835
|
|
|||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
(530
|
)
|
|
—
|
|
|
(530
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
18,305
|
|
|
—
|
|
|
18,305
|
|
|||
Ending Balance at June 30, 2019
|
|
$
|
11,546
|
|
|
$
|
(339
|
)
|
|
$
|
11,207
|
|
June 30, 2018
|
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
Postretirement Benefit Items
|
|
Total
|
||||||
|
|
|
|
|
|
|
||||||
Beginning Balance at April 1, 2018
|
|
$
|
(11,553
|
)
|
|
$
|
(285
|
)
|
|
$
|
(11,838
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
(1,443
|
)
|
|
—
|
|
|
(1,443
|
)
|
|||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
(58
|
)
|
|
—
|
|
|
(58
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
(1,501
|
)
|
|
—
|
|
|
(1,501
|
)
|
|||
Ending Balance at June 30, 2018
|
|
$
|
(13,054
|
)
|
|
$
|
(285
|
)
|
|
$
|
(13,339
|
)
|
June 30, 2018
|
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
Postretirement Benefit Items
|
|
Total
|
||||||
|
|
|
|
|
|
|
||||||
Beginning Balance at January 1, 2018
|
|
$
|
(2,335
|
)
|
|
$
|
(285
|
)
|
|
$
|
(2,620
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
(10,448
|
)
|
|
—
|
|
|
(10,448
|
)
|
|||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
(271
|
)
|
|
—
|
|
|
(271
|
)
|
|||
Net Current Period Other Comprehensive Income (Loss)
|
|
(10,719
|
)
|
|
—
|
|
|
(10,719
|
)
|
|||
Ending Balance at June 30, 2018
|
|
$
|
(13,054
|
)
|
|
$
|
(285
|
)
|
|
$
|
(13,339
|
)
|
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||
|
|
|
|
|
|
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
$
|
516
|
|
|
Net Gains on Securities
|
|
|
(108
|
)
|
|
Income Tax Expense
|
|
|
|
408
|
|
|
Net of Tax
|
|
|
|
|
|
|
|
|
Total Reclassifications for the Three Months Ended June 30, 2019
|
|
$
|
408
|
|
|
|
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||
|
|
|
|
|
|
|
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
$
|
671
|
|
|
Net Gains on Securities
|
|
|
(141
|
)
|
|
Income Tax Expense
|
|
|
|
530
|
|
|
Net of Tax
|
|
|
|
|
|
|
|
|
Total Reclassifications for the Six Months Ended June 30, 2019
|
|
$
|
530
|
|
|
|
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||
|
|
|
|
|
||
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
$
|
74
|
|
|
Net Gains on Securities
|
|
|
(16
|
)
|
|
Income Tax Expense
|
|
|
|
58
|
|
|
Net of Tax
|
|
|
|
|
|
|
||
Total Reclassifications for the Three Months Ended June 30, 2018
|
|
$
|
58
|
|
|
|
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||
|
|
|
|
|
||
Unrealized Gains and Losses on Available-for-Sale Securities
|
|
$
|
344
|
|
|
Net Gains on Securities
|
|
|
(73
|
)
|
|
Income Tax Expense
|
|
|
|
271
|
|
|
Net of Tax
|
|
|
|
|
|
|
||
Total Reclassifications for the Six Months Ended June 30, 2018
|
|
$
|
271
|
|
|
|
•
|
For debt securities with other-than-temporary impairment (OTTI), the guidance will be applied prospectively.
|
•
|
Existing purchased credit impaired (PCI) assets will be grandfathered and classified as purchased credit deteriorated (PCD) assets at the date of adoption. The asset will be grossed up for the allowance for expected credit losses for all PCD assets at the date of adoption and will continue to recognize the noncredit discount in interest income based on the yield of such assets as of the adoption date. Subsequent changes in expected credit losses will be recorded through the allowance.
|
•
|
For all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
|
June 30, 2019
|
|
June 30, 2019
|
||||
|
|
|
|
|
||||
Finance Lease Cost:
|
|
|
|
|
||||
Amortization of Right-of -Use Assets
|
|
$
|
52
|
|
|
$
|
104
|
|
Interest on Lease Liabilities
|
|
95
|
|
|
191
|
|
||
Operating Lease Cost
|
|
360
|
|
|
720
|
|
||
Short-term Lease Cost
|
|
15
|
|
|
30
|
|
||
Total Lease Cost
|
|
$
|
522
|
|
|
$
|
1,045
|
|
|
|
June 30, 2019
|
|
|
|
|
|
Weighted Average Remaining Lease Term:
|
|
|
|
Finance Leases
|
|
13 years
|
|
Operating Leases
|
|
9 years
|
|
|
|
|
|
Weighted Average Discount Rate:
|
|
|
|
Finance Leases
|
|
11.49
|
%
|
Operating Leases
|
|
3.44
|
%
|
|
|
June 30, 2019
|
||
|
|
|
||
Finance Leases
|
|
|
||
Premises, Furniture and Equipment, Net
|
|
$
|
2,593
|
|
Other Borrowings
|
|
3,453
|
|
|
|
|
|
||
Operating Leases
|
|
|
||
Operating Lease Right-of-Use Assets
|
|
$
|
8,464
|
|
Operating Lease Liabilities
|
|
8,498
|
|
|
|
Six Months Ended
|
||
|
|
June 30, 2019
|
||
|
|
|
||
Cash Paid for amounts in the measurement of lease liabilities:
|
|
|
||
Operating Cash Flows from Finance Leases
|
|
$
|
191
|
|
Operating Cash Flows from Operating Leases
|
|
687
|
|
|
Financing Cash Flows from Finance Leases
|
|
53
|
|
|
|
June 30, 2019
|
||||||
|
|
Finance Leases
|
|
Operating Leases
|
||||
|
|
|
|
|
||||
Year 1
|
|
$
|
519
|
|
|
$
|
1,362
|
|
Year 2
|
|
519
|
|
|
1,240
|
|
||
Year 3
|
|
519
|
|
|
1,134
|
|
||
Year 4
|
|
519
|
|
|
1,112
|
|
||
Year 5
|
|
519
|
|
|
1,069
|
|
||
Thereafter
|
|
3,732
|
|
|
4,099
|
|
||
Total Lease Payments
|
|
6,327
|
|
|
10,016
|
|
||
Less Imputed Interest
|
|
(2,874
|
)
|
|
(1,518
|
)
|
||
Total
|
|
$
|
3,453
|
|
|
$
|
8,498
|
|
(1)
|
Effective tax rates were determined as though interest earned on the Company’s investments in municipal bonds and loans was fully taxable.
|
(2)
|
Loans held-for-sale and non-accruing loans have been included in average loans.
|
(1)
|
Effective tax rates were determined as though interest earned on the Company’s investments in municipal bonds and loans was fully taxable.
|
(2)
|
Loans held-for-sale and non-accruing loans have been included in average loans.
|
Non-interest Income
(dollars in thousands) |
|
Three Months
Ended June 30,
|
|
Change From
Prior Period |
|||||||||||
|
|
|
|
|
|
Amount
|
|
Percent
|
|||||||
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
|||||||
Trust and Investment Product Fees
|
|
$
|
1,913
|
|
|
$
|
1,677
|
|
|
$
|
236
|
|
|
14
|
%
|
Service Charges on Deposit Accounts
|
|
2,024
|
|
|
1,643
|
|
|
381
|
|
|
23
|
|
|||
Insurance Revenues
|
|
1,929
|
|
|
1,696
|
|
|
233
|
|
|
14
|
|
|||
Company Owned Life Insurance
|
|
304
|
|
|
260
|
|
|
44
|
|
|
17
|
|
|||
Interchange Fee Income
|
|
2,332
|
|
|
1,714
|
|
|
618
|
|
|
36
|
|
|||
Other Operating Income
|
|
461
|
|
|
913
|
|
|
(452
|
)
|
|
(50
|
)
|
|||
Subtotal
|
|
8,963
|
|
|
7,903
|
|
|
1,060
|
|
|
13
|
|
|||
Net Gains on Sales of Loans
|
|
1,030
|
|
|
905
|
|
|
125
|
|
|
14
|
|
|||
Net Gains on Securities
|
|
516
|
|
|
74
|
|
|
442
|
|
|
597
|
|
|||
Total Non-interest Income
|
|
$
|
10,509
|
|
|
$
|
8,882
|
|
|
$
|
1,627
|
|
|
18
|
|
Non-interest Income
(dollars in thousands) |
|
Six Months
Ended June 30, |
|
Change From
Prior Period |
|||||||||||
|
|
|
|
|
|
Amount
|
|
Percent
|
|||||||
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
|||||||
Trust and Investment Product Fees
|
|
$
|
3,480
|
|
|
$
|
3,450
|
|
|
$
|
30
|
|
|
1
|
%
|
Service Charges on Deposit Accounts
|
|
3,924
|
|
|
3,114
|
|
|
810
|
|
|
26
|
|
|||
Insurance Revenues
|
|
5,134
|
|
|
4,626
|
|
|
508
|
|
|
11
|
|
|||
Company Owned Life Insurance
|
|
1,188
|
|
|
572
|
|
|
616
|
|
|
108
|
|
|||
Interchange Fee Income
|
|
4,427
|
|
|
3,196
|
|
|
1,231
|
|
|
39
|
|
|||
Other Operating Income
|
|
1,332
|
|
|
1,517
|
|
|
(185
|
)
|
|
(12
|
)
|
|||
Subtotal
|
|
19,485
|
|
|
16,475
|
|
|
3,010
|
|
|
18
|
|
|||
Net Gains on Sales of Loans
|
|
2,011
|
|
|
1,555
|
|
|
456
|
|
|
29
|
|
|||
Net Gains on Securities
|
|
671
|
|
|
344
|
|
|
327
|
|
|
95
|
|
|||
Total Non-interest Income
|
|
$
|
22,167
|
|
|
$
|
18,374
|
|
|
$
|
3,793
|
|
|
21
|
|
Non-interest Expense
(dollars in thousands) |
|
Three Months
Ended June 30,
|
|
Change From
Prior Period |
|||||||||||
|
|
|
|
|
|
Amount
|
|
Percent
|
|||||||
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
|||||||
Salaries and Employee Benefits
|
|
$
|
14,117
|
|
|
$
|
12,019
|
|
|
$
|
2,098
|
|
|
17
|
%
|
Occupancy, Furniture and Equipment Expense
|
|
3,212
|
|
|
2,527
|
|
|
685
|
|
|
27
|
|
|||
FDIC Premiums
|
|
245
|
|
|
238
|
|
|
7
|
|
|
3
|
|
|||
Data Processing Fees
|
|
1,803
|
|
|
1,398
|
|
|
405
|
|
|
29
|
|
|||
Professional Fees
|
|
1,174
|
|
|
1,361
|
|
|
(187
|
)
|
|
(14
|
)
|
|||
Advertising and Promotion
|
|
936
|
|
|
857
|
|
|
79
|
|
|
9
|
|
|||
Intangible Amortization
|
|
802
|
|
|
306
|
|
|
496
|
|
|
162
|
|
|||
Other Operating Expenses
|
|
3,329
|
|
|
3,002
|
|
|
327
|
|
|
11
|
|
|||
Total Non-interest Expense
|
|
$
|
25,618
|
|
|
$
|
21,708
|
|
|
$
|
3,910
|
|
|
18
|
|
Non-interest Expense
(dollars in thousands) |
|
Six Months
Ended June 30, |
|
Change From
Prior Period |
|||||||||||
|
|
|
|
|
|
Amount
|
|
Percent
|
|||||||
|
|
2019
|
|
2018
|
|
Change
|
|
Change
|
|||||||
Salaries and Employee Benefits
|
|
$
|
29,161
|
|
|
$
|
24,145
|
|
|
$
|
5,016
|
|
|
21
|
%
|
Occupancy, Furniture and Equipment Expense
|
|
6,431
|
|
|
4,936
|
|
|
1,495
|
|
|
30
|
|
|||
FDIC Premiums
|
|
533
|
|
|
475
|
|
|
58
|
|
|
12
|
|
|||
Data Processing Fees
|
|
3,386
|
|
|
2,525
|
|
|
861
|
|
|
34
|
|
|||
Professional Fees
|
|
2,501
|
|
|
2,232
|
|
|
269
|
|
|
12
|
|
|||
Advertising and Promotion
|
|
1,806
|
|
|
1,558
|
|
|
248
|
|
|
16
|
|
|||
Intangible Amortization
|
|
1,645
|
|
|
512
|
|
|
1,133
|
|
|
221
|
|
|||
Other Operating Expenses
|
|
6,914
|
|
|
5,780
|
|
|
1,134
|
|
|
20
|
|
|||
Total Non-interest Expense
|
|
$
|
52,377
|
|
|
$
|
42,163
|
|
|
$
|
10,214
|
|
|
24
|
|
End of Period Loan Balances:
(dollars in thousands) |
|
June 30,
2019 |
|
December 31,
2018 |
|
Current Period Change
|
||||||
Commercial and Industrial Loans and Leases
|
|
$
|
554,290
|
|
|
$
|
543,761
|
|
|
$
|
10,529
|
|
Commercial Real Estate Loans
|
|
1,213,579
|
|
|
1,208,646
|
|
|
4,933
|
|
|||
Agricultural Loans
|
|
364,116
|
|
|
365,208
|
|
|
(1,092
|
)
|
|||
Home Equity and Consumer Loans
|
|
280,963
|
|
|
285,534
|
|
|
(4,571
|
)
|
|||
Residential Mortgage Loans
|
|
307,726
|
|
|
328,592
|
|
|
(20,866
|
)
|
|||
Total Loans
|
|
$
|
2,720,674
|
|
|
$
|
2,731,741
|
|
|
$
|
(11,067
|
)
|
|
|
June 30,
2019
|
|
December 31,
2018 |
||||
Commercial and Industrial Loans and Leases
|
|
$
|
2,992
|
|
|
$
|
2,953
|
|
Commercial Real Estate Loans
|
|
5,841
|
|
|
5,291
|
|
||
Agricultural Loans
|
|
5,725
|
|
|
5,776
|
|
||
Home Equity and Consumer Loans
|
|
680
|
|
|
649
|
|
||
Residential Mortgage Loans
|
|
349
|
|
|
472
|
|
||
Unallocated
|
|
652
|
|
|
682
|
|
||
|
|
|
|
|
||||
Total Allowance for Loan Loss
|
|
$
|
16,239
|
|
|
$
|
15,823
|
|
Non-performing Assets:
(dollars in thousands) |
|
June 30,
2019 |
|
December 31,
2018 |
||||
Non-accrual Loans
|
|
$
|
10,929
|
|
|
$
|
12,579
|
|
Past Due Loans (90 days or more)
|
|
959
|
|
|
633
|
|
||
Total Non-performing Loans
|
|
11,888
|
|
|
13,212
|
|
||
Other Real Estate
|
|
635
|
|
|
286
|
|
||
Total Non-performing Assets
|
|
$
|
12,523
|
|
|
$
|
13,498
|
|
|
|
|
|
|
||||
Restructured Loans
|
|
$
|
118
|
|
|
$
|
121
|
|
|
|
|
|
|
||||
Non-performing Loans to Total Loans
|
|
0.44
|
%
|
|
0.48
|
%
|
||
Allowance for Loan Loss to Non-performing Loans
|
|
136.60
|
%
|
|
119.76
|
%
|
|
|
Non-Accrual Loans
|
|
Loans Past Due 90 Days
or More & Still Accruing
|
||||||||||||
|
|
June 30,
2019
|
|
December 31,
2018
|
|
June 30,
2019
|
|
December 31,
2018
|
||||||||
Commercial and Industrial Loans and Leases
|
|
$
|
1,997
|
|
|
$
|
2,430
|
|
|
$
|
441
|
|
|
$
|
—
|
|
Commercial Real Estate Loans
|
|
5,748
|
|
|
6,833
|
|
|
109
|
|
|
364
|
|
||||
Agricultural Loans
|
|
1,475
|
|
|
1,449
|
|
|
409
|
|
|
269
|
|
||||
Home Equity Loans
|
|
90
|
|
|
88
|
|
|
—
|
|
|
—
|
|
||||
Consumer Loans
|
|
113
|
|
|
162
|
|
|
—
|
|
|
—
|
|
||||
Residential Mortgage Loans
|
|
1,506
|
|
|
1,617
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
10,929
|
|
|
$
|
12,579
|
|
|
$
|
959
|
|
|
$
|
633
|
|
End of Period Deposit Balances:
(dollars in thousands) |
|
June 30,
2019 |
|
December 31,
2018 |
|
Current Period Change
|
||||||
Non-interest-bearing Demand Deposits
|
|
$
|
725,367
|
|
|
$
|
715,972
|
|
|
$
|
9,395
|
|
Interest-bearing Demand, Savings, & Money Market Accounts
|
|
1,805,694
|
|
|
1,768,177
|
|
|
37,517
|
|
|||
Time Deposits < $100,000
|
|
248,744
|
|
|
249,309
|
|
|
(565
|
)
|
|||
Time Deposits of $100,000 or more
|
|
349,027
|
|
|
339,174
|
|
|
9,853
|
|
|||
Total Deposits
|
|
$
|
3,128,832
|
|
|
$
|
3,072,632
|
|
|
$
|
56,200
|
|
|
|
6/30/2019
Ratio
|
|
12/31/2018
Ratio
|
|
Minimum for Capital Adequacy Purposes (1)
|
|
Well-Capitalized Guidelines
|
||||
Total Capital (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
||||
Consolidated
|
|
14.33
|
%
|
|
12.36
|
%
|
|
8.00
|
%
|
|
N/A
|
|
Bank
|
|
12.60
|
%
|
|
12.37
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
Tier 1 (Core) Capital (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
||||
Consolidated
|
|
12.52
|
%
|
|
11.85
|
%
|
|
6.00
|
%
|
|
N/A
|
|
Bank
|
|
12.07
|
%
|
|
11.86
|
%
|
|
6.00
|
%
|
|
8.00
|
%
|
Common Tier 1, (CET 1) Capital Ratio (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
||||
Consolidated
|
|
12.15
|
%
|
|
11.48
|
%
|
|
4.50
|
%
|
|
N/A
|
|
Bank
|
|
12.07
|
%
|
|
11.86
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
Tier 1 Capital (to Average Assets)
|
|
|
|
|
|
|
|
|
||||
Consolidated
|
|
10.23
|
%
|
|
9.75
|
%
|
|
4.00
|
%
|
|
N/A
|
|
Bank
|
|
9.83
|
%
|
|
9.78
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|
|
Net Interest Income
|
|
|||||
|
|
|
|
|
|
|||
Changes in Rates
|
|
Amount
|
|
|
% Change
|
|
|
|
+2%
|
|
$
|
135,564
|
|
|
(2.65
|
)%
|
|
+1%
|
|
137,721
|
|
|
(1.10
|
)%
|
|
|
Base
|
|
139,251
|
|
|
—
|
|
|
|
-1%
|
|
137,419
|
|
|
(1.32
|
)%
|
|
|
-2%
|
|
130,733
|
|
|
(6.12
|
)%
|
|
|
|
Net Portfolio Value
|
|
Net Portfolio Value as a % of Present Value of Assets
|
|||||||||
Changes in Rates
|
|
Amount
|
|
% Change
|
|
NPV Ratio
|
|
Change
|
|||||
|
|
|
|
|
|
|
|
|
|||||
+2%
|
|
$
|
435,131
|
|
|
(7.15
|
)%
|
|
11.92
|
%
|
|
(32) b.p.
|
|
+1%
|
|
455,829
|
|
|
(2.73
|
)%
|
|
12.19
|
%
|
|
(5) b.p.
|
|
|
Base
|
|
468,632
|
|
|
—
|
|
|
12.24
|
%
|
|
—
|
|
|
-1%
|
|
452,139
|
|
|
(3.52
|
)%
|
|
11.61
|
%
|
|
(63) b.p.
|
|
|
-2%
|
|
397,978
|
|
|
(15.08
|
)%
|
|
10.06
|
%
|
|
(218) b.p.
|
|
Period
|
|
Total Number
of Shares (or Units) Purchased
|
|
Average Price Paid Per Share (or Unit)
|
|
Total Number of Shares
(or Units) Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number
(or Approximate Dollar Value) of Shares (or Units) that
May Yet Be Purchased under the Plans or Programs (1)
|
||||
April 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
409,184
|
|
May 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
409,184
|
|
June 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
409,184
|
|
101++
|
|
The following materials from German American Bancorp, Inc.’s Form 10-Q Report for the quarterly period ended June 30, 2019, formatted in Inline XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.
|
104++
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
|
GERMAN AMERICAN BANCORP, INC.
|
|
|
Date: August 9, 2019
|
By: /s/Mark A. Schroeder
|
|
Mark A. Schroeder
|
|
Chairman and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
Date: August 9, 2019
|
By: /s/Bradley M. Rust
|
|
Bradley M. Rust
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of German American Bancorp, Inc. (the “registrant”):
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of German American Bancorp, Inc. (the “registrant”):
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
1.
|
The Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (the “Periodic Report”), which this statement accompanies, fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and
|
2.
|
Information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of German American Bancorp, Inc.
|
1.
|
The Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (the “Periodic Report”), which this statement accompanies, fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and
|
2.
|
Information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of German American Bancorp, Inc.
|