|
Incorporated in Iowa
|
I.R.S. Employer Identification
|
|
No. 42-1208067
|
Large accelerated filer
o
|
Accelerated Filer
þ
|
Non-accelerated filer
o
|
Small Reporting Company
o
|
Emerging Growth Company
o
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
SHARES OUTSTANDING
|
CLASS
|
April 30, 2019
|
|
|
Common Stock, no par value
|
9,351,299
|
|
|
|
|
|
|
Page
|
|
|
Number
|
|
|
|
Item 1.
|
Financial Statements
|
|
|
|
|
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||
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||
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||
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||
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||
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||
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Item 2.
|
||
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Item 3.
|
||
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|
Item 4.
|
||
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|
|
|
Part II
|
|
|
OTHER INFORMATION
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
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Item 2.
|
||
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Item 3.
|
||
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Item 4.
|
||
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Item 5.
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||
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Item 6.
|
||
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||
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|
March 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
(Unaudited)
|
|
|||||
Cash and cash equivalents
|
$
|
200,476
|
|
|
$
|
43,305
|
|
Investment securities available for sale at fair value (amortized cost March 31, 2019 $323,358 December 31, 2018 $321,660)
|
323,917
|
|
|
318,926
|
|
||
Stock of Federal Home Loan Bank
|
12,266
|
|
|
12,172
|
|
||
Loans held for sale
|
5,267
|
|
|
1,984
|
|
||
Loans, net of allowance for loan losses (March 31, 2019 $36,520; December 31, 2018 $37,810)
|
2,607,488
|
|
|
2,591,085
|
|
||
Property and equipment, net
|
36,631
|
|
|
37,051
|
|
||
Tax credit real estate investment
|
8,931
|
|
|
9,193
|
|
||
Accrued interest receivable
|
13,970
|
|
|
11,784
|
|
||
Deferred income taxes, net
|
9,669
|
|
|
10,869
|
|
||
Goodwill
|
2,500
|
|
|
2,500
|
|
||
Other assets
|
6,750
|
|
|
3,595
|
|
||
Total Assets
|
$
|
3,227,865
|
|
|
$
|
3,042,464
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Noninterest-bearing deposits
|
$
|
363,142
|
|
|
$
|
372,152
|
|
Interest-bearing deposits
|
2,233,750
|
|
|
2,048,972
|
|
||
Total deposits
|
$
|
2,596,892
|
|
|
$
|
2,421,124
|
|
Federal Home Loan Bank borrowings
|
215,000
|
|
|
215,000
|
|
||
Accrued interest payable
|
2,051
|
|
|
1,812
|
|
||
Other liabilities
|
23,291
|
|
|
20,776
|
|
||
Total Liabilities
|
$
|
2,837,234
|
|
|
$
|
2,658,712
|
|
|
|
|
|
||||
Redeemable Common Stock Held by Employee Stock Ownership Plan (ESOP)
|
$
|
49,851
|
|
|
$
|
48,870
|
|
|
|
|
|
||||
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Common stock, no par value; authorized 20,000,000 shares; issued March 31, 2019 10,326,417 shares; December 31, 2018 10,325,191 shares
|
$
|
—
|
|
|
$
|
—
|
|
Paid in capital
|
55,295
|
|
|
52,122
|
|
||
Retained earnings
|
375,394
|
|
|
371,848
|
|
||
Accumulated other comprehensive loss
|
(1,001
|
)
|
|
(3,250
|
)
|
||
Treasury stock at cost (March 31, 2019 974,357 shares; December 31, 2018 988,750 shares)
|
(39,057
|
)
|
|
(36,968
|
)
|
||
Total Stockholders' Equity
|
$
|
390,631
|
|
|
$
|
383,752
|
|
Less maximum cash obligation related to ESOP shares
|
49,851
|
|
|
48,870
|
|
||
Total Stockholders' Equity Less Maximum Cash Obligation Related to ESOP Shares
|
$
|
340,780
|
|
|
$
|
334,882
|
|
Total Liabilities & Stockholders' Equity
|
$
|
3,227,865
|
|
|
$
|
3,042,464
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Interest income:
|
|
|
|
||||
Loans, including fees
|
$
|
29,573
|
|
|
$
|
26,028
|
|
Investment securities:
|
|
|
|
|
|
||
Taxable
|
758
|
|
|
563
|
|
||
Nontaxable
|
1,025
|
|
|
889
|
|
||
Federal funds sold
|
491
|
|
|
551
|
|
||
Total interest income
|
$
|
31,847
|
|
|
$
|
28,031
|
|
Interest expense:
|
|
|
|
|
|
||
Deposits
|
$
|
6,499
|
|
|
$
|
3,864
|
|
FHLB borrowings
|
1,575
|
|
|
1,874
|
|
||
Total interest expense
|
$
|
8,074
|
|
|
$
|
5,738
|
|
Net interest income
|
$
|
23,773
|
|
|
$
|
22,293
|
|
Provision for loan losses
|
(1,246
|
)
|
|
(765
|
)
|
||
Net interest income after provision for loan losses
|
$
|
25,019
|
|
|
$
|
23,058
|
|
Noninterest income:
|
|
|
|
|
|
||
Net gain on sale of loans
|
$
|
286
|
|
|
$
|
331
|
|
Trust fees
|
2,252
|
|
|
2,641
|
|
||
Service charges and fees
|
2,275
|
|
|
2,228
|
|
||
Other noninterest income
|
437
|
|
|
428
|
|
||
|
$
|
5,250
|
|
|
$
|
5,628
|
|
|
|
|
|
||||
Noninterest expenses:
|
|
|
|
|
|
||
Salaries and employee benefits
|
$
|
8,722
|
|
|
$
|
8,284
|
|
Occupancy
|
1,186
|
|
|
1,101
|
|
||
Furniture and equipment
|
1,673
|
|
|
1,474
|
|
||
Office supplies and postage
|
459
|
|
|
434
|
|
||
Advertising and business development
|
638
|
|
|
630
|
|
||
Outside services
|
2,572
|
|
|
2,578
|
|
||
FDIC insurance assessment
|
209
|
|
|
218
|
|
||
Other noninterest expense
|
590
|
|
|
537
|
|
||
|
$
|
16,049
|
|
|
$
|
15,256
|
|
Income before income taxes
|
$
|
14,220
|
|
|
$
|
13,430
|
|
Income taxes
|
3,017
|
|
|
2,572
|
|
||
Net income
|
$
|
11,203
|
|
|
$
|
10,858
|
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
|
|
||
Basic
|
$
|
1.20
|
|
|
$
|
1.16
|
|
Diluted
|
$
|
1.20
|
|
|
$
|
1.16
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net income
|
$
|
11,203
|
|
|
$
|
10,858
|
|
|
|
|
|
||||
Other comprehensive income (loss)
|
|
|
|
|
|
||
Securities:
|
|
|
|
|
|
||
Net change in unrealized income (loss) on securities available for sale
|
$
|
3,293
|
|
|
$
|
(2,257
|
)
|
Reclassification adjustment for net gains realized in net income
|
—
|
|
|
—
|
|
||
Income taxes
|
(821
|
)
|
|
563
|
|
||
Other comprehensive income (loss) on securities available for sale
|
$
|
2,472
|
|
|
$
|
(1,694
|
)
|
Derivatives used in cash flow hedging relationships:
|
|
|
|
|
|
||
Net change in unrealized (loss) income on derivatives
|
$
|
(298
|
)
|
|
$
|
1,054
|
|
Income taxes
|
75
|
|
|
(263
|
)
|
||
Other comprehensive (loss) income on cash flow hedges
|
$
|
(223
|
)
|
|
$
|
791
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax
|
$
|
2,249
|
|
|
$
|
(903
|
)
|
|
|
|
|
||||
Comprehensive income
|
$
|
13,452
|
|
|
$
|
9,955
|
|
|
Paid In Capital
|
|
Retained Earnings
|
|
Accumulated Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
Maximum Cash
Obligation Related
To ESOP Shares
|
|
Total
|
||||||||||||
Balance, December 31, 2017
|
$
|
48,930
|
|
|
$
|
341,558
|
|
|
$
|
(2,446
|
)
|
|
$
|
(33,018
|
)
|
|
$
|
(43,308
|
)
|
|
$
|
311,716
|
|
Issuance of 88,943 shares of common stock
|
2,580
|
|
|
—
|
|
|
—
|
|
|
2,224
|
|
|
—
|
|
|
4,804
|
|
||||||
Issuance of 1,957 shares of common stock under the employee stock purchase plan
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
||||||
Unearned restricted stock compensation
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
||||||
Forfeiture of 208 shares of common stock
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
(8
|
)
|
||||||||||
Change related to ESOP shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,471
|
)
|
|
(2,471
|
)
|
||||||
Net income
|
—
|
|
|
10,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,858
|
|
||||||
Cash dividends ($0.75 per share)
|
—
|
|
|
(7,002
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,002
|
)
|
||||||
Reclassification of stranded tax effects due to the Tax Cuts and Jobs Act
|
|
|
526
|
|
|
(526
|
)
|
|
|
|
|
|
—
|
|
|||||||||
Purchase of 47,432 shares of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,694
|
)
|
|
—
|
|
|
(2,694
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(903
|
)
|
|
—
|
|
|
—
|
|
|
(903
|
)
|
||||||
Balance, March 31, 2018
|
$
|
51,720
|
|
|
$
|
345,940
|
|
|
$
|
(3,875
|
)
|
|
$
|
(33,488
|
)
|
|
$
|
(45,779
|
)
|
|
$
|
314,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2018
|
$
|
52,122
|
|
|
$
|
371,848
|
|
|
$
|
(3,250
|
)
|
|
$
|
(36,968
|
)
|
|
$
|
(48,870
|
)
|
|
$
|
334,882
|
|
Issuance of 84,164 shares of common stock
|
2,932
|
|
|
—
|
|
|
—
|
|
|
2,202
|
|
|
—
|
|
|
5,134
|
|
||||||
Issuance of 1,929 shares of common stock under the employee stock purchase plan
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||||
Unearned restricted stock compensation
|
170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
||||||
Forfeiture of 703 shares of common stock
|
(34
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
||||||
Change related to ESOP shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(981
|
)
|
|
(981
|
)
|
||||||
Net income
|
—
|
|
|
11,203
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,203
|
|
||||||
Cash dividends ($0.82 per share)
|
—
|
|
|
(7,657
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,657
|
)
|
||||||
Purchase of 69,771 shares of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,291
|
)
|
|
—
|
|
|
(4,291
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2,249
|
|
|
—
|
|
|
—
|
|
|
2,249
|
|
||||||
Balance, March 31, 2019
|
$
|
55,295
|
|
|
$
|
375,394
|
|
|
$
|
(1,001
|
)
|
|
$
|
(39,057
|
)
|
|
$
|
(49,851
|
)
|
|
$
|
340,780
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net income
|
$
|
11,203
|
|
|
$
|
10,858
|
|
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
|
|
|
|
|
|
||
Depreciation
|
847
|
|
|
821
|
|
||
Provision for loan losses
|
(1,246
|
)
|
|
(765
|
)
|
||
Forfeiture of common stock
|
(34
|
)
|
|
(8
|
)
|
||
Compensation expensed through issuance of common stock
|
108
|
|
|
91
|
|
||
Provision for deferred income taxes
|
454
|
|
|
303
|
|
||
Net gain on sale of other real estate owned and other repossessed assets
|
(11
|
)
|
|
(2
|
)
|
||
Increase in accrued interest receivable
|
(2,186
|
)
|
|
(593
|
)
|
||
Amortization of premium on investment securities, net
|
100
|
|
|
134
|
|
||
Decrease (increase) in other assets
|
426
|
|
|
(86
|
)
|
||
Decrease in accrued interest payable and other liabilities
|
(955
|
)
|
|
(1,465
|
)
|
||
Loans originated for sale
|
(29,847
|
)
|
|
(31,571
|
)
|
||
Proceeds on sales of loans
|
26,850
|
|
|
31,480
|
|
||
Net gain on sales of loans
|
(286
|
)
|
|
(331
|
)
|
||
Net cash and cash equivalents provided by operating activities
|
$
|
5,423
|
|
|
$
|
8,866
|
|
|
|
|
|
||||
Cash Flows from Investing Activities
|
|
|
|
|
|
||
Proceeds from maturities of investment securities available for sale
|
$
|
10,251
|
|
|
$
|
10,711
|
|
Purchases of investment securities available for sale
|
(12,143
|
)
|
|
(25,856
|
)
|
||
Loans made to customers, net of collections
|
(15,208
|
)
|
|
7,953
|
|
||
Proceeds on sale of other real estate owned and other repossessed assets
|
62
|
|
|
2
|
|
||
Purchases of property and equipment
|
(427
|
)
|
|
(651
|
)
|
||
Income from tax credit real estate, net
|
262
|
|
|
390
|
|
||
Net cash and cash equivalents used in investing activities
|
$
|
(17,203
|
)
|
|
$
|
(7,451
|
)
|
|
|
|
|
||||
Cash Flows from Financing Activities
|
|
|
|
|
|
||
Net increase in deposits
|
$
|
175,768
|
|
|
$
|
153,212
|
|
Net decrease in FHLB borrowings
|
—
|
|
|
(60,000
|
)
|
||
Issuance of common stock, net of costs
|
5,026
|
|
|
4,713
|
|
||
Purchase of treasury stock
|
(4,291
|
)
|
|
(2,694
|
)
|
||
Proceeds from the issuance of common stock through the employee stock purchase plan
|
105
|
|
|
100
|
|
||
Dividends paid
|
(7,657
|
)
|
|
(7,002
|
)
|
||
Net cash and cash equivalents provided by financing activities
|
$
|
168,951
|
|
|
$
|
88,329
|
|
HILLS BANCORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Continued) (Amounts In Thousands)
|
|||||||
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Increase in cash and cash equivalents
|
$
|
157,171
|
|
|
$
|
89,744
|
|
Cash and cash equivalents:
|
|
|
|
|
|
||
Beginning of period
|
43,305
|
|
|
154,353
|
|
||
End of period
|
$
|
200,476
|
|
|
$
|
244,097
|
|
|
|
|
|
||||
Supplemental Disclosures
|
|
|
|
|
|
||
Cash payments for:
|
|
|
|
|
|
||
Interest paid to depositors
|
$
|
6,260
|
|
|
$
|
3,844
|
|
Interest paid on other obligations
|
1,575
|
|
|
1,874
|
|
||
Income taxes paid
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Noncash activities:
|
|
|
|
|
|
||
Increase in maximum cash obligation related to ESOP shares
|
$
|
981
|
|
|
$
|
2,471
|
|
Transfers to other real estate owned
|
51
|
|
|
62
|
|
||
Right-of-use assets obtained in exchange for operating lease obligations
|
3,581
|
|
|
—
|
|
Note 1.
|
Summary of Significant Accounting Policies
|
Note 2.
|
Earnings Per Share
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Common shares outstanding at the beginning of the period
|
9,336,441
|
|
|
9,335,154
|
|
||
Weighted average number of net shares issued
|
30,816
|
|
|
48,969
|
|
||
Weighted average shares outstanding (basic)
|
9,367,257
|
|
|
9,384,123
|
|
||
Weighted average of potential dilutive shares attributable to stock options granted, computed under the treasury stock method
|
4,008
|
|
|
3,890
|
|
||
Weighted average number of shares (diluted)
|
9,371,265
|
|
|
9,388,013
|
|
||
Net income (In thousands)
|
$
|
11,203
|
|
|
$
|
10,858
|
|
Earnings per share:
|
|
|
|
|
|
||
Basic
|
$
|
1.20
|
|
|
$
|
1.16
|
|
Diluted
|
$
|
1.20
|
|
|
$
|
1.16
|
|
Note 3.
|
Other Comprehensive Income (Loss)
|
|
March 31,
2019 |
|
December 31, 2018
|
||||
|
(amounts in thousands)
|
||||||
Net unrealized income (loss) on available-for-sale securities
|
$
|
559
|
|
|
$
|
(2,734
|
)
|
Net unrealized loss on derivatives used for cash flow hedges
|
(1,894
|
)
|
|
(1,596
|
)
|
||
Tax effect
|
$
|
334
|
|
|
$
|
1,080
|
|
Net-of-tax amount
|
$
|
(1,001
|
)
|
|
$
|
(3,250
|
)
|
Note 4.
|
Securities
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
91,573
|
|
|
28.27
|
%
|
|
$
|
83,155
|
|
|
26.07
|
%
|
Other securities (FHLB, FHLMC and FNMA)
|
27,531
|
|
|
8.50
|
|
|
34,871
|
|
|
10.93
|
|
||
State and political subdivisions
|
204,813
|
|
|
63.23
|
|
|
200,900
|
|
|
63.00
|
|
||
Total securities available for sale
|
$
|
323,917
|
|
|
100.00
|
%
|
|
$
|
318,926
|
|
|
100.00
|
%
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Estimated Fair
Value
|
||||||||
March 31, 2019:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
91,181
|
|
|
$
|
726
|
|
|
$
|
(334
|
)
|
|
$
|
91,573
|
|
Other securities (FHLB, FHLMC and FNMA)
|
27,846
|
|
|
—
|
|
|
(315
|
)
|
|
27,531
|
|
||||
State and political subdivisions
|
204,331
|
|
|
1,189
|
|
|
(707
|
)
|
|
204,813
|
|
||||
Total
|
$
|
323,358
|
|
|
$
|
1,915
|
|
|
$
|
(1,356
|
)
|
|
$
|
323,917
|
|
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury
|
$
|
83,839
|
|
|
$
|
124
|
|
|
$
|
(808
|
)
|
|
$
|
83,155
|
|
Other securities (FHLB, FHLMC and FNMA)
|
35,371
|
|
|
—
|
|
|
(500
|
)
|
|
34,871
|
|
||||
State and political subdivisions
|
202,450
|
|
|
278
|
|
|
(1,828
|
)
|
|
200,900
|
|
||||
Total
|
$
|
321,660
|
|
|
$
|
402
|
|
|
$
|
(3,136
|
)
|
|
$
|
318,926
|
|
|
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
57,358
|
|
|
$
|
57,169
|
|
Due after one year through five years
|
186,161
|
|
|
186,388
|
|
||
Due after five years through ten years
|
79,278
|
|
|
79,787
|
|
||
Due over ten years
|
561
|
|
|
573
|
|
||
Total
|
$
|
323,358
|
|
|
$
|
323,917
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||||||||||||||
March 31, 2019
Description of Securities |
#
|
|
Fair Value
|
|
Unrealized
Loss
|
|
%
|
|
#
|
|
Fair Value
|
|
Unrealized
Loss
|
|
%
|
|
#
|
|
Fair Value
|
|
Unrealized
Loss
|
|
%
|
||||||||||||||||||
U.S. Treasury
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
19
|
|
|
$
|
46,923
|
|
|
$
|
(334
|
)
|
|
0.71
|
%
|
|
19
|
|
|
$
|
46,923
|
|
|
$
|
(334
|
)
|
|
0.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other securities (FHLB, FHLMC and FNMA)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
27,531
|
|
|
(315
|
)
|
|
1.14
|
|
|
11
|
|
|
27,531
|
|
|
(315
|
)
|
|
1.14
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivisions
|
59
|
|
|
30,332
|
|
|
(148
|
)
|
|
0.49
|
|
|
262
|
|
|
62,104
|
|
|
(559
|
)
|
|
0.90
|
|
|
321
|
|
|
92,436
|
|
|
(707
|
)
|
|
0.76
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired securities
|
59
|
|
|
$
|
30,332
|
|
|
$
|
(148
|
)
|
|
0.49
|
%
|
|
292
|
|
|
$
|
136,558
|
|
|
$
|
(1,208
|
)
|
|
0.88
|
%
|
|
351
|
|
|
$
|
166,890
|
|
|
$
|
(1,356
|
)
|
|
0.81
|
%
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||||||||||||||
December 31, 2018
Description of Securities |
#
|
|
Fair Value
|
|
Unrealized
Loss
|
|
%
|
|
#
|
|
Fair Value
|
|
Unrealized
Loss
|
|
%
|
|
#
|
|
Fair Value
|
|
Unrealized
Loss
|
|
%
|
||||||||||||||||||
U.S. Treasury
|
6
|
|
|
$
|
14,644
|
|
|
$
|
(49
|
)
|
|
0.33
|
%
|
|
19
|
|
|
$
|
46,443
|
|
|
$
|
(759
|
)
|
|
1.63
|
%
|
|
25
|
|
|
$
|
61,087
|
|
|
$
|
(808
|
)
|
|
1.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other securities (FHLB, FHLMC and FNMA)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
34,871
|
|
|
(500
|
)
|
|
1.43
|
|
|
14
|
|
|
34,871
|
|
|
(500
|
)
|
|
1.43
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
State and political subdivisions
|
113
|
|
|
31,022
|
|
|
(162
|
)
|
|
0.52
|
|
|
325
|
|
|
77,921
|
|
|
(1,666
|
)
|
|
2.14
|
|
|
438
|
|
|
108,943
|
|
|
(1,828
|
)
|
|
1.68
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total temporarily impaired securities
|
119
|
|
|
$
|
45,666
|
|
|
$
|
(211
|
)
|
|
0.46
|
%
|
|
358
|
|
|
$
|
159,235
|
|
|
$
|
(2,925
|
)
|
|
1.84
|
%
|
|
477
|
|
|
$
|
204,901
|
|
|
$
|
(3,136
|
)
|
|
1.53
|
%
|
Note 5.
|
Loans
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
|
(Amounts In Thousands)
|
||||||
Agricultural
|
$
|
93,573
|
|
|
$
|
92,673
|
|
Commercial and financial
|
227,403
|
|
|
229,501
|
|
||
Real estate:
|
|
|
|
||||
Construction, 1 to 4 family residential
|
73,868
|
|
|
72,279
|
|
||
Construction, land development and commercial
|
105,466
|
|
|
113,807
|
|
||
Mortgage, farmland
|
238,109
|
|
|
236,454
|
|
||
Mortgage, 1 to 4 family first liens
|
916,408
|
|
|
912,059
|
|
||
Mortgage, 1 to 4 family junior liens
|
152,183
|
|
|
152,625
|
|
||
Mortgage, multi-family
|
351,090
|
|
|
352,434
|
|
||
Mortgage, commercial
|
402,073
|
|
|
383,314
|
|
||
Loans to individuals
|
29,739
|
|
|
30,072
|
|
||
Obligations of state and political subdivisions
|
53,153
|
|
|
52,725
|
|
||
|
$
|
2,643,065
|
|
|
$
|
2,627,943
|
|
Net unamortized fees and costs
|
943
|
|
|
952
|
|
||
|
$
|
2,644,008
|
|
|
$
|
2,628,895
|
|
Less allowance for loan losses
|
36,520
|
|
|
37,810
|
|
||
|
$
|
2,607,488
|
|
|
$
|
2,591,085
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||||||
|
Agricultural
|
|
Commercial and
Financial
|
|
Real Estate:
Construction and
land development
|
|
Real Estate:
Mortgage,
farmland
|
|
Real Estate:
Mortgage, 1 to 4
family
|
|
Real Estate:
Mortgage, multi-
family and
commercial
|
|
Other
|
|
Total
|
||||||||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,789
|
|
|
$
|
5,826
|
|
|
$
|
3,292
|
|
|
$
|
3,972
|
|
|
$
|
12,516
|
|
|
$
|
8,165
|
|
|
$
|
1,250
|
|
|
$
|
37,810
|
|
Charge-offs
|
—
|
|
|
(180
|
)
|
|
(8
|
)
|
|
—
|
|
|
(177
|
)
|
|
(4
|
)
|
|
(108
|
)
|
|
(477
|
)
|
||||||||
Recoveries
|
10
|
|
|
184
|
|
|
2
|
|
|
5
|
|
|
110
|
|
|
85
|
|
|
37
|
|
|
433
|
|
||||||||
Provision
|
(258
|
)
|
|
174
|
|
|
(358
|
)
|
|
(106
|
)
|
|
(819
|
)
|
|
(23
|
)
|
|
144
|
|
|
(1,246
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
$
|
2,541
|
|
|
$
|
6,004
|
|
|
$
|
2,928
|
|
|
$
|
3,871
|
|
|
$
|
11,630
|
|
|
$
|
8,223
|
|
|
$
|
1,323
|
|
|
$
|
36,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, individually evaluated for impairment
|
$
|
258
|
|
|
$
|
1,375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
483
|
|
|
$
|
59
|
|
|
$
|
2,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, collectively evaluated for impairment
|
$
|
2,283
|
|
|
$
|
4,629
|
|
|
$
|
2,928
|
|
|
$
|
3,871
|
|
|
$
|
11,556
|
|
|
$
|
7,740
|
|
|
$
|
1,264
|
|
|
$
|
34,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance
|
$
|
93,573
|
|
|
$
|
227,403
|
|
|
$
|
179,334
|
|
|
$
|
238,109
|
|
|
$
|
1,068,591
|
|
|
$
|
753,163
|
|
|
$
|
82,892
|
|
|
$
|
2,643,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending balance, individually evaluated for impairment
|
$
|
2,740
|
|
|
$
|
4,039
|
|
|
$
|
832
|
|
|
$
|
4,189
|
|
|
$
|
6,879
|
|
|
$
|
4,333
|
|
|
$
|
59
|
|
|
$
|
23,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, collectively evaluated for impairment
|
$
|
90,833
|
|
|
$
|
223,364
|
|
|
$
|
178,502
|
|
|
$
|
233,920
|
|
|
$
|
1,061,712
|
|
|
$
|
748,830
|
|
|
$
|
82,833
|
|
|
$
|
2,619,994
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||||||
|
Agricultural
|
|
Commercial and
Financial
|
|
Real Estate:
Construction and
land development
|
|
Real Estate:
Mortgage,
farmland
|
|
Real Estate:
Mortgage,
1 to 4 family
|
|
Real Estate:
Mortgage, multi-
family and
commercial
|
|
Other
|
|
Total
|
||||||||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,294
|
|
|
$
|
4,837
|
|
|
$
|
2,989
|
|
|
$
|
3,669
|
|
|
$
|
8,668
|
|
|
$
|
5,700
|
|
|
$
|
1,243
|
|
|
$
|
29,400
|
|
Charge-offs
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
(1
|
)
|
|
(115
|
)
|
|
(267
|
)
|
||||||||
Recoveries
|
12
|
|
|
248
|
|
|
143
|
|
|
—
|
|
|
98
|
|
|
4
|
|
|
37
|
|
|
542
|
|
||||||||
Provision
|
(53
|
)
|
|
(397
|
)
|
|
(352
|
)
|
|
40
|
|
|
10
|
|
|
91
|
|
|
(104
|
)
|
|
(765
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance
|
$
|
2,253
|
|
|
$
|
4,658
|
|
|
$
|
2,780
|
|
|
$
|
3,709
|
|
|
$
|
8,655
|
|
|
$
|
5,794
|
|
|
$
|
1,061
|
|
|
$
|
28,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, individually evaluated for impairment
|
$
|
199
|
|
|
$
|
759
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
493
|
|
|
$
|
63
|
|
|
$
|
1,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, collectively evaluated for impairment
|
$
|
2,054
|
|
|
$
|
3,899
|
|
|
$
|
2,740
|
|
|
$
|
3,709
|
|
|
$
|
8,580
|
|
|
$
|
5,301
|
|
|
$
|
998
|
|
|
$
|
27,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance
|
$
|
83,940
|
|
|
$
|
214,004
|
|
|
$
|
166,761
|
|
|
$
|
218,462
|
|
|
$
|
980,150
|
|
|
$
|
705,576
|
|
|
$
|
83,032
|
|
|
$
|
2,451,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, individually evaluated for impairment
|
$
|
2,823
|
|
|
$
|
2,550
|
|
|
$
|
946
|
|
|
$
|
3,615
|
|
|
$
|
6,564
|
|
|
$
|
8,025
|
|
|
$
|
63
|
|
|
$
|
24,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ending balance, collectively evaluated for impairment
|
$
|
81,117
|
|
|
$
|
211,454
|
|
|
$
|
165,815
|
|
|
$
|
214,847
|
|
|
$
|
973,586
|
|
|
$
|
697,551
|
|
|
$
|
82,969
|
|
|
$
|
2,427,339
|
|
|
Agricultural
|
|
Commercial and
Financial
|
|
Real Estate:
Construction, 1 to 4
family residential
|
|
Real Estate:
Construction, land
development and
commercial
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
4,091
|
|
|
$
|
2,718
|
|
|
$
|
—
|
|
|
$
|
203
|
|
Good
|
15,703
|
|
|
47,718
|
|
|
12,376
|
|
|
17,416
|
|
||||
Satisfactory
|
39,421
|
|
|
123,709
|
|
|
44,934
|
|
|
57,452
|
|
||||
Monitor
|
27,703
|
|
|
38,547
|
|
|
14,185
|
|
|
21,312
|
|
||||
Special Mention
|
836
|
|
|
8,566
|
|
|
1,978
|
|
|
7,576
|
|
||||
Substandard
|
5,819
|
|
|
6,145
|
|
|
395
|
|
|
1,507
|
|
||||
Total
|
$
|
93,573
|
|
|
$
|
227,403
|
|
|
$
|
73,868
|
|
|
$
|
105,466
|
|
|
Real Estate:
Mortgage,
farmland
|
|
Real Estate:
Mortgage, 1 to 4
family first liens
|
|
Real Estate: Mortgage,
1 to 4 family junior
liens
|
|
Real Estate:
Mortgage, multi-
family
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
5,469
|
|
|
$
|
2,307
|
|
|
$
|
526
|
|
|
$
|
22,051
|
|
Good
|
50,050
|
|
|
31,571
|
|
|
4,071
|
|
|
59,203
|
|
||||
Satisfactory
|
126,988
|
|
|
756,430
|
|
|
138,533
|
|
|
189,192
|
|
||||
Monitor
|
45,440
|
|
|
97,980
|
|
|
6,241
|
|
|
58,506
|
|
||||
Special Mention
|
1,117
|
|
|
9,414
|
|
|
1,141
|
|
|
15,947
|
|
||||
Substandard
|
9,045
|
|
|
18,706
|
|
|
1,671
|
|
|
6,191
|
|
||||
Total
|
$
|
238,109
|
|
|
$
|
916,408
|
|
|
$
|
152,183
|
|
|
$
|
351,090
|
|
|
Real Estate:
Mortgage,
commercial
|
|
Loans to
individuals
|
|
Obligations of state and
political subdivisions
|
|
Total
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
35,391
|
|
|
$
|
—
|
|
|
$
|
7,985
|
|
|
$
|
80,741
|
|
Good
|
86,117
|
|
|
193
|
|
|
15,414
|
|
|
339,832
|
|
||||
Satisfactory
|
195,035
|
|
|
28,663
|
|
|
21,563
|
|
|
1,721,920
|
|
||||
Monitor
|
74,094
|
|
|
588
|
|
|
8,191
|
|
|
392,787
|
|
||||
Special Mention
|
2,901
|
|
|
229
|
|
|
—
|
|
|
49,705
|
|
||||
Substandard
|
8,535
|
|
|
66
|
|
|
—
|
|
|
58,080
|
|
||||
Total
|
$
|
402,073
|
|
|
$
|
29,739
|
|
|
$
|
53,153
|
|
|
$
|
2,643,065
|
|
|
Agricultural
|
|
Commercial and
Financial
|
|
Real Estate:
Construction, 1 to 4
family residential
|
|
Real Estate:
Construction, land
development and
commercial
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
3,667
|
|
|
$
|
3,322
|
|
|
$
|
—
|
|
|
$
|
209
|
|
Good
|
15,342
|
|
|
51,562
|
|
|
13,029
|
|
|
16,667
|
|
||||
Satisfactory
|
39,897
|
|
|
121,759
|
|
|
42,043
|
|
|
68,123
|
|
||||
Monitor
|
27,510
|
|
|
35,897
|
|
|
15,045
|
|
|
19,888
|
|
||||
Special Mention
|
647
|
|
|
11,418
|
|
|
1,767
|
|
|
7,635
|
|
||||
Substandard
|
5,610
|
|
|
5,543
|
|
|
395
|
|
|
1,285
|
|
||||
Total
|
$
|
92,673
|
|
|
$
|
229,501
|
|
|
$
|
72,279
|
|
|
$
|
113,807
|
|
|
Real Estate:
Mortgage,
farmland
|
|
Real Estate:
Mortgage, 1 to 4
family first liens
|
|
Real Estate: Mortgage,
1 to 4 family junior
liens
|
|
Real Estate:
Mortgage, multi-
family
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
5,619
|
|
|
$
|
2,715
|
|
|
$
|
520
|
|
|
$
|
22,058
|
|
Good
|
52,364
|
|
|
33,134
|
|
|
4,569
|
|
|
60,047
|
|
||||
Satisfactory
|
126,706
|
|
|
752,473
|
|
|
138,533
|
|
|
187,641
|
|
||||
Monitor
|
41,486
|
|
|
96,187
|
|
|
6,242
|
|
|
60,398
|
|
||||
Special Mention
|
1,055
|
|
|
10,439
|
|
|
1,130
|
|
|
16,065
|
|
||||
Substandard
|
9,224
|
|
|
17,111
|
|
|
1,631
|
|
|
6,225
|
|
||||
Total
|
$
|
236,454
|
|
|
$
|
912,059
|
|
|
$
|
152,625
|
|
|
$
|
352,434
|
|
|
Real Estate:
Mortgage,
commercial
|
|
Loans to
individuals
|
|
Obligations of state and
political subdivisions
|
|
Total
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
34,096
|
|
|
$
|
—
|
|
|
$
|
8,117
|
|
|
$
|
80,323
|
|
Good
|
86,453
|
|
|
315
|
|
|
15,652
|
|
|
349,134
|
|
||||
Satisfactory
|
177,271
|
|
|
28,797
|
|
|
20,685
|
|
|
1,703,928
|
|
||||
Monitor
|
74,990
|
|
|
647
|
|
|
8,271
|
|
|
386,561
|
|
||||
Special Mention
|
3,228
|
|
|
217
|
|
|
—
|
|
|
53,601
|
|
||||
Substandard
|
7,276
|
|
|
96
|
|
|
—
|
|
|
54,396
|
|
||||
Total
|
$
|
383,314
|
|
|
$
|
30,072
|
|
|
$
|
52,725
|
|
|
$
|
2,627,943
|
|
|
30 - 59 Days
Past Due
|
|
60 - 89 Days
Past Due
|
|
90 Days
or More
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Loans
Receivable
|
|
Accruing Loans
Past Due 90
Days or More
|
||||||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agricultural
|
$
|
2,057
|
|
|
$
|
445
|
|
|
$
|
1,616
|
|
|
$
|
4,118
|
|
|
$
|
89,455
|
|
|
$
|
93,573
|
|
|
$
|
583
|
|
Commercial and financial
|
1,158
|
|
|
371
|
|
|
242
|
|
|
1,771
|
|
|
225,632
|
|
|
227,403
|
|
|
—
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction, 1 to 4 family residential
|
692
|
|
|
—
|
|
|
—
|
|
|
692
|
|
|
73,176
|
|
|
73,868
|
|
|
—
|
|
|||||||
Construction, land development and commercial
|
1,036
|
|
|
32
|
|
|
—
|
|
|
1,068
|
|
|
104,398
|
|
|
105,466
|
|
|
—
|
|
|||||||
Mortgage, farmland
|
6,954
|
|
|
—
|
|
|
630
|
|
|
7,584
|
|
|
230,525
|
|
|
238,109
|
|
|
—
|
|
|||||||
Mortgage, 1 to 4 family first liens
|
9,145
|
|
|
666
|
|
|
2,790
|
|
|
12,601
|
|
|
903,807
|
|
|
916,408
|
|
|
—
|
|
|||||||
Mortgage, 1 to 4 family junior liens
|
190
|
|
|
395
|
|
|
—
|
|
|
585
|
|
|
151,598
|
|
|
152,183
|
|
|
—
|
|
|||||||
Mortgage, multi-family
|
143
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|
350,947
|
|
|
351,090
|
|
|
—
|
|
|||||||
Mortgage, commercial
|
1,633
|
|
|
—
|
|
|
281
|
|
|
1,914
|
|
|
400,159
|
|
|
402,073
|
|
|
—
|
|
|||||||
Loans to individuals
|
124
|
|
|
46
|
|
|
—
|
|
|
170
|
|
|
29,569
|
|
|
29,739
|
|
|
—
|
|
|||||||
Obligations of state and political subdivisions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,153
|
|
|
53,153
|
|
|
—
|
|
|||||||
|
$
|
23,132
|
|
|
$
|
1,955
|
|
|
$
|
5,559
|
|
|
$
|
30,646
|
|
|
$
|
2,612,419
|
|
|
$
|
2,643,065
|
|
|
$
|
583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Agricultural
|
$
|
1,026
|
|
|
$
|
—
|
|
|
$
|
135
|
|
|
$
|
1,161
|
|
|
$
|
91,512
|
|
|
$
|
92,673
|
|
|
$
|
—
|
|
Commercial and financial
|
988
|
|
|
459
|
|
|
225
|
|
|
1,672
|
|
|
227,829
|
|
|
229,501
|
|
|
—
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
212
|
|
|
212
|
|
|
72,067
|
|
|
72,279
|
|
|
212
|
|
|||||||
Construction, land development and commercial
|
233
|
|
|
202
|
|
|
—
|
|
|
435
|
|
|
113,372
|
|
|
113,807
|
|
|
—
|
|
|||||||
Mortgage, farmland
|
193
|
|
|
388
|
|
|
—
|
|
|
581
|
|
|
235,873
|
|
|
236,454
|
|
|
—
|
|
|||||||
Mortgage, 1 to 4 family first liens
|
3,972
|
|
|
833
|
|
|
3,234
|
|
|
8,039
|
|
|
904,020
|
|
|
912,059
|
|
|
158
|
|
|||||||
Mortgage, 1 to 4 family junior liens
|
199
|
|
|
36
|
|
|
—
|
|
|
235
|
|
|
152,390
|
|
|
152,625
|
|
|
—
|
|
|||||||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
352,434
|
|
|
352,434
|
|
|
—
|
|
|||||||
Mortgage, commercial
|
733
|
|
|
344
|
|
|
—
|
|
|
1,077
|
|
|
382,237
|
|
|
383,314
|
|
|
—
|
|
|||||||
Loans to individuals
|
195
|
|
|
—
|
|
|
22
|
|
|
217
|
|
|
29,855
|
|
|
30,072
|
|
|
—
|
|
|||||||
Obligations of state and political subdivisions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,725
|
|
|
52,725
|
|
|
—
|
|
|||||||
|
$
|
7,539
|
|
|
$
|
2,262
|
|
|
$
|
3,828
|
|
|
$
|
13,629
|
|
|
$
|
2,614,314
|
|
|
$
|
2,627,943
|
|
|
$
|
370
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Non-accrual
loans (1)
|
|
Accruing loans
past due 90 days
or more
|
|
TDR loans
|
|
Non-
accrual
loans (1)
|
|
Accruing loans
past due 90 days
or more
|
|
TDR loans
|
||||||||||||
|
(Amounts In Thousands)
|
|
(Amounts In Thousands)
|
||||||||||||||||||||
Agricultural
|
$
|
1,308
|
|
|
$
|
583
|
|
|
$
|
97
|
|
|
$
|
1,338
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Commercial and financial
|
1,857
|
|
|
—
|
|
|
2,143
|
|
|
1,476
|
|
|
—
|
|
|
2,686
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction, 1 to 4 family residential
|
395
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
—
|
|
||||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
326
|
|
|
—
|
|
|
—
|
|
|
328
|
|
||||||
Mortgage, farmland
|
1,037
|
|
|
—
|
|
|
3,903
|
|
|
1,062
|
|
|
—
|
|
|
3,301
|
|
||||||
Mortgage, 1 to 4 family first liens
|
5,833
|
|
|
—
|
|
|
1,132
|
|
|
5,799
|
|
|
158
|
|
|
1,143
|
|
||||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||
Mortgage, multi-family
|
143
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage, commercial
|
1,196
|
|
|
—
|
|
|
925
|
|
|
1,009
|
|
|
—
|
|
|
937
|
|
||||||
|
$
|
11,769
|
|
|
$
|
583
|
|
|
$
|
8,550
|
|
|
$
|
10,829
|
|
|
$
|
370
|
|
|
$
|
8,539
|
|
(1)
|
There were
$5.07 million
and
$4.84 million
of TDR loans included within nonaccrual loans as of
March 31, 2019
and
December 31, 2018
, respectively.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
Number
of
contracts
|
|
Recorded
investment
|
|
Commitments
outstanding
|
|
Number
of
contracts
|
|
Recorded
investment
|
|
Commitments
outstanding
|
||||||||||
|
|
|
(Amounts In Thousands)
|
|
|
|
(Amounts In Thousands)
|
||||||||||||||
Agricultural
|
6
|
|
|
$
|
1,512
|
|
|
$
|
12
|
|
|
5
|
|
|
$
|
1,316
|
|
|
$
|
91
|
|
Commercial and financial
|
13
|
|
|
3,646
|
|
|
135
|
|
|
13
|
|
|
3,867
|
|
|
75
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction, land development and commercial
|
2
|
|
|
326
|
|
|
—
|
|
|
2
|
|
|
328
|
|
|
—
|
|
||||
Mortgage, farmland
|
9
|
|
|
4,873
|
|
|
—
|
|
|
8
|
|
|
4,291
|
|
|
—
|
|
||||
Mortgage, 1 to 4 family first liens
|
15
|
|
|
1,695
|
|
|
—
|
|
|
16
|
|
|
1,710
|
|
|
—
|
|
||||
Mortgage, 1 to 4 family junior liens
|
1
|
|
|
24
|
|
|
—
|
|
|
1
|
|
|
24
|
|
|
—
|
|
||||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage, commercial
|
9
|
|
|
1,798
|
|
|
—
|
|
|
9
|
|
|
1,839
|
|
|
—
|
|
||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
55
|
|
|
$
|
13,874
|
|
|
$
|
147
|
|
|
54
|
|
|
$
|
13,375
|
|
|
$
|
166
|
|
|
Three Months Ended March 31, 2019
|
|||||||||
|
Number
of
contracts
|
|
Pre-modification
recorded
investment
|
|
Post-modification
recorded
investment
|
|||||
|
|
|
(Amounts In Thousands)
|
|||||||
Agricultural
|
1
|
|
|
$
|
250
|
|
|
$
|
250
|
|
Commercial and financial
|
—
|
|
|
—
|
|
|
—
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, farmland
|
1
|
|
|
620
|
|
|
620
|
|
||
Mortgage, 1 to 4 family first lien
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, commercial
|
—
|
|
|
—
|
|
|
—
|
|
||
|
2
|
|
|
$
|
870
|
|
|
$
|
870
|
|
|
March 31, 2019
|
|
Three Months Ended
March 31, 2019 |
||||||||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||||
With no related allowance recorded:
|
(Amounts In Thousands)
|
||||||||||||||||||
Agricultural
|
$
|
1,359
|
|
|
$
|
1,653
|
|
|
$
|
—
|
|
|
$
|
1,377
|
|
|
$
|
9
|
|
Commercial and financial
|
1,639
|
|
|
2,493
|
|
|
—
|
|
|
1,682
|
|
|
11
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction, 1 to 4 family residential
|
110
|
|
|
148
|
|
|
—
|
|
|
111
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
722
|
|
|
738
|
|
|
—
|
|
|
722
|
|
|
4
|
|
|||||
Mortgage, farmland
|
4,189
|
|
|
4,667
|
|
|
—
|
|
|
4,198
|
|
|
39
|
|
|||||
Mortgage, 1 to 4 family first liens
|
6,068
|
|
|
7,860
|
|
|
—
|
|
|
6,143
|
|
|
9
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
252
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
143
|
|
|
213
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|||||
Mortgage, commercial
|
2,047
|
|
|
2,745
|
|
|
—
|
|
|
2,068
|
|
|
10
|
|
|||||
Loans to individuals
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
16,277
|
|
|
$
|
20,783
|
|
|
$
|
—
|
|
|
$
|
16,445
|
|
|
$
|
82
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
1,381
|
|
|
$
|
1,552
|
|
|
$
|
258
|
|
|
$
|
1,396
|
|
|
$
|
8
|
|
Commercial and financial
|
2,400
|
|
|
2,429
|
|
|
1,375
|
|
|
2,476
|
|
|
23
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, 1 to 4 family first liens
|
787
|
|
|
794
|
|
|
73
|
|
|
789
|
|
|
4
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
24
|
|
|
24
|
|
|
1
|
|
|
24
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
1,402
|
|
|
1,402
|
|
|
282
|
|
|
1,408
|
|
|
17
|
|
|||||
Mortgage, commercial
|
741
|
|
|
741
|
|
|
201
|
|
|
744
|
|
|
8
|
|
|||||
Loans to individuals
|
59
|
|
|
59
|
|
|
59
|
|
|
56
|
|
|
2
|
|
|||||
|
$
|
6,794
|
|
|
$
|
7,001
|
|
|
$
|
2,249
|
|
|
$
|
6,893
|
|
|
$
|
62
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
2,740
|
|
|
$
|
3,205
|
|
|
$
|
258
|
|
|
$
|
2,773
|
|
|
$
|
17
|
|
Commercial and financial
|
4,039
|
|
|
4,922
|
|
|
1,375
|
|
|
4,158
|
|
|
34
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
110
|
|
|
148
|
|
|
—
|
|
|
111
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
722
|
|
|
738
|
|
|
—
|
|
|
722
|
|
|
4
|
|
|||||
Mortgage, farmland
|
4,189
|
|
|
4,667
|
|
|
—
|
|
|
4,198
|
|
|
39
|
|
|||||
Mortgage, 1 to 4 family first liens
|
6,855
|
|
|
8,654
|
|
|
73
|
|
|
6,932
|
|
|
13
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
24
|
|
|
276
|
|
|
1
|
|
|
24
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
1,545
|
|
|
1,615
|
|
|
282
|
|
|
1,552
|
|
|
17
|
|
|||||
Mortgage, commercial
|
2,788
|
|
|
3,486
|
|
|
201
|
|
|
2,812
|
|
|
18
|
|
|||||
Loans to individuals
|
59
|
|
|
73
|
|
|
59
|
|
|
56
|
|
|
2
|
|
|||||
|
$
|
23,071
|
|
|
$
|
27,784
|
|
|
$
|
2,249
|
|
|
$
|
23,338
|
|
|
$
|
144
|
|
|
Recorded
Investment
|
|
Unpaid Principal
Balance
|
|
Related
Allowance
|
||||||
With no related allowance recorded:
|
(Amounts In Thousands)
|
||||||||||
Agricultural
|
$
|
1,395
|
|
|
$
|
1,663
|
|
|
$
|
—
|
|
Commercial and financial
|
1,650
|
|
|
2,503
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|||
Construction, 1 to 4 family residential
|
111
|
|
|
148
|
|
|
—
|
|
|||
Construction, land development and commercial
|
328
|
|
|
344
|
|
|
—
|
|
|||
Mortgage, farmland
|
3,612
|
|
|
4,071
|
|
|
—
|
|
|||
Mortgage, 1 to 4 family first liens
|
6,089
|
|
|
7,819
|
|
|
—
|
|
|||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
254
|
|
|
—
|
|
|||
Mortgage, multi-family
|
145
|
|
|
213
|
|
|
—
|
|
|||
Mortgage, commercial
|
1,871
|
|
|
2,486
|
|
|
—
|
|
|||
Loans to individuals
|
—
|
|
|
14
|
|
|
—
|
|
|||
|
$
|
15,201
|
|
|
$
|
19,515
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|||
Agricultural
|
$
|
1,065
|
|
|
$
|
1,229
|
|
|
$
|
479
|
|
Commercial and financial
|
2,512
|
|
|
2,512
|
|
|
1,189
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|||
Construction, 1 to 4 family residential
|
698
|
|
|
698
|
|
|
4
|
|
|||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
—
|
|
|||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
—
|
|
|||
Mortgage, 1 to 4 family first liens
|
899
|
|
|
974
|
|
|
70
|
|
|||
Mortgage, 1 to 4 family junior liens
|
24
|
|
|
24
|
|
|
2
|
|
|||
Mortgage, multi-family
|
7,447
|
|
|
7,447
|
|
|
305
|
|
|||
Mortgage, commercial
|
75
|
|
|
75
|
|
|
1
|
|
|||
Loans to individuals
|
64
|
|
|
64
|
|
|
64
|
|
|||
|
$
|
12,784
|
|
|
$
|
13,023
|
|
|
$
|
2,114
|
|
|
|
|
|
|
|
||||||
Total:
|
|
|
|
|
|
|
|
|
|||
Agricultural
|
$
|
2,460
|
|
|
$
|
2,892
|
|
|
$
|
479
|
|
Commercial and financial
|
4,162
|
|
|
5,015
|
|
|
1,189
|
|
|||
Real estate:
|
|
|
|
|
|
|
|
|
|||
Construction, 1 to 4 family residential
|
809
|
|
|
846
|
|
|
4
|
|
|||
Construction, land development and commercial
|
328
|
|
|
344
|
|
|
—
|
|
|||
Mortgage, farmland
|
3,612
|
|
|
4,071
|
|
|
—
|
|
|||
Mortgage, 1 to 4 family first liens
|
6,988
|
|
|
8,793
|
|
|
70
|
|
|||
Mortgage, 1 to 4 family junior liens
|
24
|
|
|
278
|
|
|
2
|
|
|||
Mortgage, multi-family
|
7,592
|
|
|
7,660
|
|
|
305
|
|
|||
Mortgage, commercial
|
1,946
|
|
|
2,561
|
|
|
1
|
|
|||
Loans to individuals
|
64
|
|
|
78
|
|
|
64
|
|
|||
|
$
|
27,985
|
|
|
$
|
32,538
|
|
|
$
|
2,114
|
|
Note 6.
|
Leases
|
Year ending December 31:
|
(Amounts In Thousands)
|
||
2019
|
$
|
467
|
|
2020
|
470
|
|
|
2021
|
456
|
|
|
2022
|
447
|
|
|
2023
|
301
|
|
|
Thereafter
|
2,259
|
|
|
Total lease payments
|
4,400
|
|
|
Less imputed interest
|
(819
|
)
|
|
Total operating lease liabilities
|
$
|
3,581
|
|
Note 7.
|
Fair Value Measurements
|
|
March 31, 2019
|
||||||||||||||||||
|
Carrying
Amount
|
|
Estimated Fair
Value
|
|
Readily
Available
Market
Prices(1)
|
|
Observable
Market
Prices(2)
|
|
Company
Determined
Market
Prices(3)
|
||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||
Financial instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
200,476
|
|
|
$
|
200,476
|
|
|
$
|
200,476
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities
|
336,183
|
|
|
336,183
|
|
|
91,573
|
|
|
244,610
|
|
|
—
|
|
|||||
Loans held for sale
|
5,267
|
|
|
5,267
|
|
|
—
|
|
|
5,267
|
|
|
—
|
|
|||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
91,032
|
|
|
93,028
|
|
|
—
|
|
|
—
|
|
|
93,028
|
|
|||||
Commercial and financial
|
221,399
|
|
|
225,946
|
|
|
—
|
|
|
—
|
|
|
225,946
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
72,589
|
|
|
73,965
|
|
|
—
|
|
|
—
|
|
|
73,965
|
|
|||||
Construction, land development and commercial
|
103,817
|
|
|
105,134
|
|
|
—
|
|
|
—
|
|
|
105,134
|
|
|||||
Mortgage, farmland
|
234,238
|
|
|
235,465
|
|
|
—
|
|
|
—
|
|
|
235,465
|
|
|||||
Mortgage, 1 to 4 family first liens
|
907,397
|
|
|
888,705
|
|
|
—
|
|
|
—
|
|
|
888,705
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
150,507
|
|
|
148,210
|
|
|
—
|
|
|
—
|
|
|
148,210
|
|
|||||
Mortgage, multi-family
|
347,138
|
|
|
344,083
|
|
|
—
|
|
|
—
|
|
|
344,083
|
|
|||||
Mortgage, commercial
|
397,802
|
|
|
395,694
|
|
|
—
|
|
|
—
|
|
|
395,694
|
|
|||||
Loans to individuals
|
28,921
|
|
|
30,424
|
|
|
—
|
|
|
—
|
|
|
30,424
|
|
|||||
Obligations of state and political subdivisions
|
52,648
|
|
|
52,338
|
|
|
—
|
|
|
—
|
|
|
52,338
|
|
|||||
Accrued interest receivable
|
13,970
|
|
|
13,970
|
|
|
—
|
|
|
13,970
|
|
|
—
|
|
|||||
Total financial instrument assets
|
$
|
3,163,384
|
|
|
$
|
3,148,888
|
|
|
$
|
292,049
|
|
|
$
|
263,847
|
|
|
$
|
2,592,992
|
|
Financial instrument liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing deposits
|
$
|
363,142
|
|
|
$
|
363,142
|
|
|
$
|
—
|
|
|
$
|
363,142
|
|
|
$
|
—
|
|
Interest-bearing deposits
|
2,233,750
|
|
|
2,243,433
|
|
|
—
|
|
|
2,243,433
|
|
|
—
|
|
|||||
Other borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
215,000
|
|
|
208,188
|
|
|
—
|
|
|
208,188
|
|
|
—
|
|
|||||
Interest rate swaps
|
1,894
|
|
|
1,894
|
|
|
—
|
|
|
1,894
|
|
|
—
|
|
|||||
Accrued interest payable
|
2,051
|
|
|
2,051
|
|
|
—
|
|
|
2,051
|
|
|
—
|
|
|||||
Total financial instrument liabilities
|
$
|
2,815,837
|
|
|
$
|
2,818,708
|
|
|
$
|
—
|
|
|
$
|
2,818,708
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Face Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial instrument with off-balance sheet risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan commitments
|
$
|
393,424
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Letters of credit
|
8,918
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total financial instrument liabilities with off-balance-sheet risk
|
$
|
402,342
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Considered Level 1 under Accounting Standards Codification (“ASC”) Topic 820,
Fair Value Measurements and Disclosures (“ASC 820”).
|
(2)
|
Considered Level 2 under ASC 820.
|
(3)
|
Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying
Amount
|
|
Estimated Fair
Value
|
|
Readily
Available
Market
Prices(1)
|
|
Observable
Market
Prices(2)
|
|
Company
Determined
Market
Prices(3)
|
||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||
Financial instrument assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
43,305
|
|
|
$
|
43,305
|
|
|
$
|
43,305
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities
|
331,098
|
|
|
331,098
|
|
|
83,155
|
|
|
247,943
|
|
|
—
|
|
|||||
Loans held for sale
|
1,984
|
|
|
1,984
|
|
|
—
|
|
|
1,984
|
|
|
—
|
|
|||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
89,884
|
|
|
93,736
|
|
|
—
|
|
|
—
|
|
|
93,736
|
|
|||||
Commercial and financial
|
223,675
|
|
|
227,774
|
|
|
—
|
|
|
—
|
|
|
227,774
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
70,982
|
|
|
72,419
|
|
|
—
|
|
|
—
|
|
|
72,419
|
|
|||||
Construction, land development and commercial
|
111,812
|
|
|
112,960
|
|
|
—
|
|
|
—
|
|
|
112,960
|
|
|||||
Mortgage, farmland
|
232,482
|
|
|
235,771
|
|
|
—
|
|
|
—
|
|
|
235,771
|
|
|||||
Mortgage, 1 to 4 family first liens
|
902,261
|
|
|
882,908
|
|
|
—
|
|
|
—
|
|
|
882,908
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
150,859
|
|
|
148,128
|
|
|
—
|
|
|
—
|
|
|
148,128
|
|
|||||
Mortgage, multi-family
|
348,351
|
|
|
342,099
|
|
|
—
|
|
|
—
|
|
|
342,099
|
|
|||||
Mortgage, commercial
|
379,232
|
|
|
376,257
|
|
|
—
|
|
|
—
|
|
|
376,257
|
|
|||||
Loans to individuals
|
29,349
|
|
|
29,962
|
|
|
—
|
|
|
—
|
|
|
29,962
|
|
|||||
Obligations of state and political subdivisions
|
52,198
|
|
|
51,945
|
|
|
—
|
|
|
—
|
|
|
51,945
|
|
|||||
Accrued interest receivable
|
11,784
|
|
|
11,784
|
|
|
—
|
|
|
11,784
|
|
|
—
|
|
|||||
Total financial instrument assets
|
$
|
2,979,256
|
|
|
$
|
2,962,130
|
|
|
$
|
126,460
|
|
|
$
|
261,711
|
|
|
$
|
2,573,959
|
|
Financial instrument liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing deposits
|
$
|
372,152
|
|
|
$
|
372,152
|
|
|
$
|
—
|
|
|
$
|
372,152
|
|
|
$
|
—
|
|
Interest-bearing deposits
|
2,048,972
|
|
|
2,059,336
|
|
|
—
|
|
|
2,059,336
|
|
|
—
|
|
|||||
Other borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
215,000
|
|
|
207,948
|
|
|
—
|
|
|
207,948
|
|
|
—
|
|
|||||
Interest rate swaps
|
1,596
|
|
|
1,596
|
|
|
|
|
1,596
|
|
|
|
|||||||
Accrued interest payable
|
1,812
|
|
|
1,812
|
|
|
—
|
|
|
1,812
|
|
|
—
|
|
|||||
Total financial instrument liabilities
|
$
|
2,639,532
|
|
|
$
|
2,642,844
|
|
|
$
|
—
|
|
|
$
|
2,642,844
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Face Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial instrument with off-balance sheet risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan commitments
|
$
|
375,940
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Letters of credit
|
9,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total financial instrument liabilities with off-balance-sheet risk
|
$
|
384,973
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Considered Level 1 under ASC 820.
|
(2)
|
Considered Level 2 under ASC 820.
|
(3)
|
Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities.
|
|
Level 2
|
Observable inputs other than quoted prices included within Level 1. Observable inputs include the quoted prices for similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability.
|
|
Level 3
|
Unobservable inputs supported by little or no market activity for financial instruments. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
|
March 31, 2019
|
||||||||||||||
|
Readily
Available
Market
Prices(1)
|
|
Observable
Market Prices(2)
|
|
Company
Determined
Market
Prices(3)
|
|
Total at Fair
Value
|
||||||||
Securities available for sale
|
(Amounts In Thousands)
|
||||||||||||||
U.S. Treasury
|
$
|
91,573
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91,573
|
|
State and political subdivisions
|
—
|
|
|
204,813
|
|
|
—
|
|
|
204,813
|
|
||||
Other securities (FHLB, FHLMC and FNMA)
|
—
|
|
|
27,531
|
|
|
—
|
|
|
27,531
|
|
||||
Derivative Financial Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
(1,894
|
)
|
|
$
|
—
|
|
|
(1,894
|
)
|
||
Total
|
$
|
91,573
|
|
|
$
|
230,450
|
|
|
$
|
—
|
|
|
$
|
322,023
|
|
|
December 31, 2018
|
||||||||||||||
|
Readily
Available
Market
Prices(1)
|
|
Observable
Market Prices(2)
|
|
Company
Determined
Market
Prices(3)
|
|
Total at Fair
Value
|
||||||||
Securities available for sale
|
(Amounts In Thousands)
|
||||||||||||||
U.S. Treasury
|
$
|
83,155
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83,155
|
|
State and political subdivisions
|
—
|
|
|
200,900
|
|
|
—
|
|
|
200,900
|
|
||||
Other securities (FHLB, FHLMC and FNMA)
|
—
|
|
|
34,871
|
|
|
—
|
|
|
34,871
|
|
||||
Derivative Financial Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
(1,596
|
)
|
|
—
|
|
|
(1,596
|
)
|
||||
Total
|
$
|
83,155
|
|
|
$
|
234,175
|
|
|
$
|
—
|
|
|
$
|
317,330
|
|
(1)
|
Considered Level 1 under ASC 820.
|
(2)
|
Considered Level 2 under ASC 820.
|
(3)
|
Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
|
|
March 31, 2019
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||
|
Readily
Available
Market
Prices(1)
|
|
Observable
Market
Prices(2)
|
|
Company
Determined
Market
Prices(3)
|
|
Total at
Fair
Value
|
|
Total Losses
|
||||||||||
|
(Amounts in Thousands)
|
|
|
||||||||||||||||
Loans (4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,090
|
|
|
$
|
2,090
|
|
|
$
|
—
|
|
Commercial and financial
|
—
|
|
|
—
|
|
|
2,566
|
|
|
2,566
|
|
|
50
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
612
|
|
|
612
|
|
|
8
|
|
|||||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
3,674
|
|
|
3,674
|
|
|
—
|
|
|||||
Mortgage, 1 to 4 family first liens
|
—
|
|
|
—
|
|
|
6,746
|
|
|
6,746
|
|
|
90
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
1,120
|
|
|
1,120
|
|
|
—
|
|
|||||
Mortgage, commercial
|
—
|
|
|
—
|
|
|
2,108
|
|
|
2,108
|
|
|
—
|
|
|||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreclosed assets (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,939
|
|
|
$
|
18,939
|
|
|
$
|
148
|
|
(1)
|
Considered Level 1 under ASC 820.
|
(2)
|
Considered Level 2 under ASC 820.
|
(3)
|
Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
|
(4)
|
Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully-charged off is
zero
.
|
(5)
|
Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets.
|
|
December 31, 2018
|
|
Year Ended December 31, 2018
|
||||||||||||||||
|
Readily
Available
Market
Prices(1)
|
|
Observable
Market
Prices(2)
|
|
Company
Determined
Market
Prices(3)
|
|
Total at Fair
Value
|
|
Total Losses
|
||||||||||
|
(Amounts in Thousands)
|
|
|
||||||||||||||||
Loans (4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,160
|
|
|
$
|
1,160
|
|
|
$
|
63
|
|
Commercial and financial
|
—
|
|
|
—
|
|
|
2,882
|
|
|
2,882
|
|
|
122
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
703
|
|
|
703
|
|
|
—
|
|
|||||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
3,848
|
|
|
3,848
|
|
|
—
|
|
|||||
Mortgage, 1 to 4 family first liens
|
—
|
|
|
—
|
|
|
6,729
|
|
|
6,729
|
|
|
520
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
60
|
|
|||||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
7,286
|
|
|
7,286
|
|
|
—
|
|
|||||
Mortgage, commercial
|
—
|
|
|
—
|
|
|
1,458
|
|
|
1,458
|
|
|
349
|
|
|||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreclosed assets (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,088
|
|
|
$
|
24,088
|
|
|
$
|
1,114
|
|
(1)
|
Considered Level 1 under ASC 820.
|
(2)
|
Considered Level 2 under ASC 820.
|
(3)
|
Considered Level 3 under ASC 820 and are based on valuation models that use significant assumptions that are not observable in an active market.
|
(4)
|
Represents carrying value and related write-downs of loans for which adjustments are based on the value of the collateral. The carrying value of loans fully-charged off is zero.
|
(5)
|
Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets.
|
Note 8.
|
Stock Repurchase Program
|
Note 9.
|
Commitments and Contingencies
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(Amounts In Thousands)
|
||||||
Firm loan commitments and unused portion of lines of credit:
|
|
|
|
||||
Home equity loans
|
$
|
60,782
|
|
|
$
|
59,330
|
|
Credit cards
|
54,165
|
|
|
52,802
|
|
||
Commercial, real estate and home construction
|
100,245
|
|
|
89,171
|
|
||
Commercial lines and real estate purchase loans
|
178,232
|
|
|
174,637
|
|
||
Outstanding letters of credit
|
8,918
|
|
|
9,033
|
|
Note 10.
|
Income Taxes
|
Note 11.
|
Derivative Financial Instruments
|
|
Notional
Amount
|
|
Fair
Value
|
|
Balance
Sheet
Category
|
|
Maturity
|
||||
|
(Amounts in Thousands)
|
|
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||
Interest rate swap
|
$
|
25,000
|
|
|
$
|
(182
|
)
|
|
Other Liabilities
|
|
11/9/2020
|
Interest rate swap
|
25,000
|
|
|
(1,712
|
)
|
|
Other Liabilities
|
|
11/7/2023
|
||
|
|
|
|
|
|
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||
Interest rate swap
|
$
|
25,000
|
|
|
$
|
(120
|
)
|
|
Other Liabilities
|
|
11/9/2020
|
Interest rate swap
|
25,000
|
|
|
(1,476
|
)
|
|
Other Liabilities
|
|
11/7/2023
|
|
|
|
|
||||||||||||
|
Recognized
in OCI
|
|
Reclassified from AOCI into
Income
|
|
Recognized in Income on
Derivatives
|
||||||||||
|
Amount of
Gain (Loss)
|
|
Category
|
|
Amount
of Gain
(Loss)
|
|
Category
|
|
Amount
of Gain
(Loss)
|
||||||
|
(Amounts in Thousands)
|
||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
$
|
(46
|
)
|
|
Interest Expense
|
|
$
|
—
|
|
|
Other Income
|
|
$
|
—
|
|
Interest rate swap
|
(177
|
)
|
|
Interest Expense
|
|
—
|
|
|
Other Income
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swap
|
$
|
347
|
|
|
Interest Expense
|
|
$
|
—
|
|
|
Other Income
|
|
$
|
—
|
|
Interest rate swap
|
571
|
|
|
Interest Expense
|
|
—
|
|
|
Other Income
|
|
—
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
The strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations which may be less favorable than expected and may result in, among other things, a deterioration in the credit quality and value of the Company’s assets.
|
•
|
The effects of recent financial market disruptions, and monetary and other governmental actions designed to address such disruptions.
|
•
|
The financial strength of the counterparties with which the Company or the Company’s customers do business and as to which the Company has investment or financial exposure.
|
•
|
The credit quality and credit agency ratings of the securities in the Company’s investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the affected securities and the recognition of an impairment loss.
|
•
|
The effects of, and changes in, laws, regulations and policies affecting banking, securities, insurance and monetary and financial matters as well as any laws otherwise affecting the Company.
|
•
|
The effects of changes in interest rates (including the effects of changes in the rate of prepayments of the Company’s assets) and the policies of the Board of Governors of the Federal Reserve System.
|
•
|
The ability of the Company to compete with other financial institutions as effectively as the Company currently intends due to increases in competitive pressures in the financial services sector.
|
•
|
The ability of the Company to obtain new customers and to retain existing customers.
|
•
|
The timely development and acceptance of products and services, including products and services offered through alternative electronic delivery channels.
|
•
|
Technological changes implemented by the Company and by other parties, including third party vendors, which may be more difficult or more expensive than anticipated or which may have unforeseen consequences to the Company and its customers.
|
•
|
The ability of the Company to develop and maintain secure and reliable electronic systems.
|
•
|
The ability of the Company to retain key executives and employees and the difficulty that the Company may experience in replacing key executives and employees in an effective manner.
|
•
|
Consumer spending and saving habits which may change in a manner that affects the Company’s business adversely.
|
•
|
The economic impact of natural disasters, terrorist attacks and military actions.
|
•
|
Business combinations and the integration of acquired businesses and assets which may be more difficult or expensive than expected.
|
•
|
The costs, effects and outcomes of existing or future litigation.
|
•
|
Changes in accounting policies and practices that may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board.
|
•
|
The ability of the Company to manage the risks associated with the foregoing as well as anticipated.
|
•
|
Total assets were
$3.228 billion
, an increase of
$185.40 million
since
December 31, 2018
.
|
•
|
Cash and cash equivalents were
$200.48 million
, an increase of
$157.17 million
since
December 31, 2018
. Cash and cash equivalents growth included approximately $84.00 million of temporary public funds.
|
•
|
Net loans were
$2.613 billion
, an increase of
$19.69 million
since
December 31, 2018
. Loans held for sale increased
$3.28 million
since
December 31, 2018
.
|
•
|
Deposits increased
$175.77 million
since
December 31, 2018
. Deposit growth included approximately $84.00 million in temporary public funds.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
(Amounts In Thousands)
|
|
(Amounts In Thousands)
|
||||||||||
Agricultural
|
$
|
93,573
|
|
|
3.54
|
%
|
|
$
|
92,673
|
|
|
3.53
|
%
|
Commercial and financial
|
227,403
|
|
|
8.60
|
|
|
229,501
|
|
|
8.73
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||
Construction, 1 to 4 family residential
|
73,868
|
|
|
2.79
|
|
|
72,279
|
|
|
2.75
|
|
||
Construction, land development and commercial
|
105,466
|
|
|
3.99
|
|
|
113,807
|
|
|
4.33
|
|
||
Mortgage, farmland
|
238,109
|
|
|
9.01
|
|
|
236,454
|
|
|
9.00
|
|
||
Mortgage, 1 to 4 family first liens
|
916,408
|
|
|
34.67
|
|
|
912,059
|
|
|
34.71
|
|
||
Mortgage, 1 to 4 family junior liens
|
152,183
|
|
|
5.76
|
|
|
152,625
|
|
|
5.81
|
|
||
Mortgage, multi-family
|
351,090
|
|
|
13.28
|
|
|
352,434
|
|
|
13.41
|
|
||
Mortgage, commercial
|
402,073
|
|
|
15.21
|
|
|
383,314
|
|
|
14.58
|
|
||
Loans to individuals
|
29,739
|
|
|
1.13
|
|
|
30,072
|
|
|
1.14
|
|
||
Obligations of state and political subdivisions
|
53,153
|
|
|
2.01
|
|
|
52,725
|
|
|
2.01
|
|
||
|
$
|
2,643,065
|
|
|
100.00
|
%
|
|
$
|
2,627,943
|
|
|
100.00
|
%
|
Net unamortized fees and costs
|
943
|
|
|
|
|
|
952
|
|
|
|
|
||
|
$
|
2,644,008
|
|
|
|
|
|
$
|
2,628,895
|
|
|
|
|
Less allowance for loan losses
|
36,520
|
|
|
|
|
|
37,810
|
|
|
|
|
||
|
$
|
2,607,488
|
|
|
|
|
|
$
|
2,591,085
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
|
Amount
|
|
% of Total
Allowance
|
|
% of Loans to
Total Loans
|
|
Amount
|
|
% of Total
Allowance
|
|
% of Loans to
Total Loans
|
||||||||
|
(In Thousands)
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
||||||||
Agricultural
|
$
|
2,541
|
|
|
6.96
|
%
|
|
3.54
|
%
|
|
$
|
2,789
|
|
|
7.38
|
%
|
|
3.53
|
%
|
Commercial and financial
|
6,004
|
|
|
16.44
|
|
|
8.60
|
|
|
5,826
|
|
|
15.41
|
|
|
8.73
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
1,279
|
|
|
3.50
|
|
|
2.79
|
|
|
1,297
|
|
|
3.43
|
|
|
2.75
|
|
||
Construction, land development and commercial
|
1,649
|
|
|
4.52
|
|
|
3.99
|
|
|
1,995
|
|
|
5.28
|
|
|
4.33
|
|
||
Mortgage, farmland
|
3,871
|
|
|
10.60
|
|
|
9.01
|
|
|
3,972
|
|
|
10.51
|
|
|
9.00
|
|
||
Mortgage, 1 to 4 family first liens
|
9,954
|
|
|
27.26
|
|
|
34.67
|
|
|
10,750
|
|
|
28.43
|
|
|
34.71
|
|
||
Mortgage, 1 to 4 family junior liens
|
1,676
|
|
|
4.59
|
|
|
5.76
|
|
|
1,766
|
|
|
4.67
|
|
|
5.81
|
|
||
Mortgage, multi-family
|
3,952
|
|
|
10.82
|
|
|
13.28
|
|
|
4,083
|
|
|
10.80
|
|
|
13.41
|
|
||
Mortgage, commercial
|
4,271
|
|
|
11.69
|
|
|
15.21
|
|
|
4,082
|
|
|
10.80
|
|
|
14.58
|
|
||
Loans to individuals
|
818
|
|
|
2.24
|
|
|
1.13
|
|
|
723
|
|
|
1.91
|
|
|
1.14
|
|
||
Obligations of state and political subdivisions
|
505
|
|
|
1.38
|
|
|
2.01
|
|
|
527
|
|
|
1.38
|
|
|
2.01
|
|
||
|
$
|
36,520
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
$
|
37,810
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||
As of March 31, 2019:
|
|
|
|
|
|
|
|
|||||
Company:
|
|
|
|
|
|
|
|
|||||
Total risk-based capital
|
$
|
419,583
|
|
|
17.27
|
%
|
|
8.000
|
%
|
|
10.000
|
%
|
Tier 1 risk-based capital
|
389,132
|
|
|
16.01
|
|
|
6.000
|
|
|
8.000
|
|
|
Tier 1 common equity
|
389,132
|
|
|
16.01
|
|
|
4.500
|
|
|
6.500
|
|
|
Leverage ratio
|
389,132
|
|
|
12.50
|
|
|
4.000
|
|
|
5.000
|
|
|
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
420,141
|
|
|
17.30
|
|
|
8.000
|
|
|
10.000
|
|
|
Tier 1 risk-based capital
|
389,708
|
|
|
16.05
|
|
|
6.000
|
|
|
8.000
|
|
|
Tier 1 common equity
|
389,708
|
|
|
16.05
|
|
|
4.500
|
|
|
6.500
|
|
|
Leverage ratio
|
389,708
|
|
|
12.53
|
|
|
4.000
|
|
|
5.000
|
|
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||
As of December 31, 2018:
|
|
|
|
|
|
|
|
|||||
Company:
|
|
|
|
|
|
|
|
|||||
Total risk-based capital
|
$
|
414,772
|
|
|
17.18
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
Tier 1 risk-based capital
|
384,502
|
|
|
15.93
|
|
|
6.00
|
|
|
8.00
|
|
|
Tier 1 common equity
|
384,502
|
|
|
15.93
|
|
|
4.50
|
|
|
6.50
|
|
|
Leverage ratio
|
384,502
|
|
|
12.68
|
|
|
4.00
|
|
|
5.00
|
|
|
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
416,198
|
|
|
17.25
|
|
|
8.00
|
|
|
10.00
|
|
|
Tier 1 risk-based capital
|
385,943
|
|
|
16.00
|
|
|
6.00
|
|
|
8.00
|
|
|
Tier 1 common equity
|
385,943
|
|
|
16.00
|
|
|
4.50
|
|
|
6.50
|
|
|
Leverage ratio
|
385,943
|
|
|
12.73
|
|
|
4.00
|
|
|
5.00
|
|
•
|
Net interest income increased by
$1.48 million
, before provision expense. Total interest income increased by $3.82 million as a result of growth in the volume of earning assets. Total interest expense increased by $2.34 million primarily due to rising interest rates increasing the costs of funding.
|
•
|
The provision for loan losses decreased by
$0.48 million
.
|
•
|
Noninterest income decreased by $
0.38 million
.
|
•
|
Noninterest expenses increased by $
0.79 million
.
|
•
|
Income tax expense increased by
$0.45 million
.
|
|
|
|
|
|
Increase (Decrease) in Net Interest Income
|
|||||||||||||
|
Change in
Average Balance
|
|
Change in
Average Rate
|
|
Volume Changes
|
|
Rate Changes
|
|
Net Change
|
|||||||||
|
(Amounts in Thousands)
|
|||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans, net
|
$
|
169,047
|
|
|
0.25
|
%
|
|
$
|
1,857
|
|
|
$
|
1,682
|
|
|
$
|
3,539
|
|
Taxable securities
|
14,054
|
|
|
0.36
|
|
|
67
|
|
|
128
|
|
|
195
|
|
||||
Nontaxable securities
|
14,551
|
|
|
0.20
|
|
|
92
|
|
|
102
|
|
|
194
|
|
||||
Federal funds sold
|
(59,155
|
)
|
|
0.84
|
|
|
(232
|
)
|
|
172
|
|
|
(60
|
)
|
||||
|
$
|
138,497
|
|
|
|
|
|
$
|
1,784
|
|
|
$
|
2,084
|
|
|
$
|
3,868
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing demand deposits
|
$
|
6,058
|
|
|
0.32
|
%
|
|
$
|
(8
|
)
|
|
$
|
(533
|
)
|
|
$
|
(541
|
)
|
Savings deposits
|
29,532
|
|
|
0.39
|
|
|
(49
|
)
|
|
(809
|
)
|
|
(858
|
)
|
||||
Time deposits
|
116,749
|
|
|
0.53
|
|
|
(439
|
)
|
|
(797
|
)
|
|
(1,236
|
)
|
||||
Other borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
FHLB borrowings
|
(255,661
|
)
|
|
—
|
|
|
299
|
|
|
—
|
|
|
299
|
|
||||
Interest-bearing other liabilities
|
(4
|
)
|
|
1.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
(103,326
|
)
|
|
|
|
|
$
|
(197
|
)
|
|
$
|
(2,139
|
)
|
|
$
|
(2,336
|
)
|
Change in net interest income
|
|
|
|
|
|
|
$
|
1,587
|
|
|
$
|
(55
|
)
|
|
$
|
1,532
|
|
(Tax Equivalent Basis)
|
|
2019
|
|
2018
|
||
Yield on average interest-earning assets
|
|
4.35
|
%
|
|
4.05
|
%
|
Rate on average interest-bearing liabilities
|
|
1.39
|
|
|
1.04
|
|
Net interest spread
|
|
2.96
|
%
|
|
3.01
|
%
|
Effect of noninterest-bearing funds
|
|
0.31
|
|
|
0.24
|
|
Net interest margin (tax equivalent interest income divided by average interest-earning assets)
|
|
3.27
|
%
|
|
3.25
|
%
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Net gain on sale of loans
|
$
|
286
|
|
|
$
|
331
|
|
|
$
|
(45
|
)
|
|
(13.60
|
)%
|
Trust fees
|
2,252
|
|
|
2,641
|
|
|
(389
|
)
|
|
(14.73
|
)
|
|||
Service charges and fees
|
2,275
|
|
|
2,228
|
|
|
47
|
|
|
2.11
|
|
|||
Other noninterest income
|
437
|
|
|
428
|
|
|
9
|
|
|
2.10
|
|
|||
|
$
|
5,250
|
|
|
$
|
5,628
|
|
|
$
|
(378
|
)
|
|
(6.72
|
)
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
|
(Amounts in thousands)
|
|
|
|
|
|||||||||
Salaries and employee benefits
|
$
|
8,722
|
|
|
$
|
8,284
|
|
|
$
|
438
|
|
|
5.29
|
%
|
Occupancy
|
1,186
|
|
|
1,101
|
|
|
85
|
|
|
7.72
|
|
|||
Furniture and equipment
|
1,673
|
|
|
1,474
|
|
|
199
|
|
|
13.50
|
|
|||
Office supplies and postage
|
459
|
|
|
434
|
|
|
25
|
|
|
5.76
|
|
|||
Advertising and business development
|
638
|
|
|
630
|
|
|
8
|
|
|
1.27
|
|
|||
Outside services
|
2,572
|
|
|
2,578
|
|
|
(6
|
)
|
|
(0.23
|
)
|
|||
FDIC insurance assessment
|
209
|
|
|
218
|
|
|
(9
|
)
|
|
(4.13
|
)
|
|||
Other noninterest expense
|
590
|
|
|
537
|
|
|
53
|
|
|
9.87
|
|
|||
|
$
|
16,049
|
|
|
$
|
15,256
|
|
|
$
|
793
|
|
|
5.20
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
Total number of shares
purchased
|
Average price paid per
share
|
Total number of
shares purchased
as part of publicly
announced plans
or programs
|
Maximum number
of shares that may
yet be purchased
under the plans
or programs (1)
|
|||||
January 1 to January 31
|
20,497
|
|
$
|
61.00
|
|
20,497
|
|
352,624
|
|
February 1 to February 28
|
14,100
|
|
61.00
|
|
14,100
|
|
338,524
|
|
|
March 1 to March 31
|
35,174
|
|
62.00
|
|
35,174
|
|
303,350
|
|
|
Total
|
69,771
|
|
$
|
61.50
|
|
69,771
|
|
303,350
|
|
Item 3.
|
Defaults upon Senior Securities
|
Item 4.
|
Mine Safety Disclosure
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
3.1
|
Restated Articles of Incorporation, incorporated by reference to Exhibit 3.1 to the Company's Form 10-Q Filed with the Commission on May 6, 2015.
|
3.2
|
Amended and Restated Bylaws of Hills Bancorporation.
|
31
|
Certifications under Section 302 of the Sarbanes-Oxley Act of 2002
|
32
|
Certifications under Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS
|
XBRL Instance Document (1)
|
101.SCH
|
XBRL Taxonomy Extension Schema Document (1)
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document (1)
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document (1)
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document (1)
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document (1)
|
(1)
|
Users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, and are otherwise not subject to liability under these sections.
|
|
|
|
HILLS BANCORPORATION
|
|
|
|
|
Date:
|
May 6 2019
|
|
By: /s/ Dwight O. Seegmiller
|
|
|
|
Dwight O. Seegmiller, Director, President and Chief Executive Officer
|
|
|
|
|
Date:
|
May 6 2019
|
|
By: /s/ Shari DeMaris
|
|
|
|
Shari DeMaris, Secretary, Treasurer and Chief Accounting Officer
|
Exhibit
Number
|
Description
|
Page Number In The Sequential
Numbering System
March 31, 2019 Form 10-Q
|
|
|
|
|
|
3.2
|
58-67
|
|
|
|
|
|
|
31
|
68-69
|
|
|
|
|
|
|
32
|
70
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Hills Bancorporation;
|
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:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
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):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 6 2019
|
|
By: /s/ Dwight O. Seegmiller
|
|
|
|
Dwight O. Seegmiller, Director, President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Hills Bancorporation;
|
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:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
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):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 6 2019
|
|
By: /s/ Shari DeMaris
|
|
|
|
Shari DeMaris, Secretary, Treasurer and Chief Accounting Officer
|
Date:
|
May 6 2019
|
|
By: /s/ Dwight O. Seegmiller
|
|
|
|
Dwight O. Seegmiller, Director, President and Chief Executive Officer
|
Date:
|
May 6 2019
|
|
By: /s/ Shari DeMaris
|
|
|
|
Shari DeMaris, Secretary, Treasurer and Chief Accounting Officer
|