|
|
|
|
|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Iowa
|
|
42-1208067
|
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
|||
131 E. Main Street, PO Box 160
|
Hills
|
Iowa
|
52235
|
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Large accelerated filer
|
o
|
Accelerated filer
|
x
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
PART I
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
PART II
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
|
|
|
|
PART III
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
|
|
|
PART IV
|
|
Item 15.
|
Item 1.
|
Business
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
ASSETS
|
|
|
|
|
|
||||||
Noninterest-bearing cash and cash equivalents
|
$
|
27,663
|
|
|
$
|
27,914
|
|
|
$
|
27,409
|
|
Interest-bearing cash and cash equivalents
|
190,205
|
|
|
105,609
|
|
|
37,024
|
|
|||
Taxable securities
|
139,188
|
|
|
128,128
|
|
|
105,059
|
|
|||
Nontaxable securities
|
189,739
|
|
|
180,912
|
|
|
168,877
|
|
|||
Federal funds sold
|
79
|
|
|
46
|
|
|
71
|
|
|||
Loans, net
|
2,611,546
|
|
|
2,487,736
|
|
|
2,340,606
|
|
|||
Property and equipment, net
|
36,584
|
|
|
37,766
|
|
|
38,139
|
|
|||
Other assets
|
44,631
|
|
|
32,178
|
|
|
39,175
|
|
|||
|
$
|
3,239,635
|
|
|
$
|
3,000,289
|
|
|
$
|
2,756,360
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|||
Noninterest-bearing demand deposits
|
$
|
366,682
|
|
|
$
|
364,916
|
|
|
$
|
342,640
|
|
Interest-bearing demand deposits
|
716,848
|
|
|
644,712
|
|
|
548,598
|
|
|||
Savings deposits
|
851,503
|
|
|
832,772
|
|
|
748,862
|
|
|||
Time deposits
|
661,548
|
|
|
537,575
|
|
|
451,208
|
|
|||
Other borrowings
|
8
|
|
|
9
|
|
|
28,602
|
|
|||
FHLB borrowings
|
213,468
|
|
|
228,066
|
|
|
268,411
|
|
|||
Noninterest-bearing other liabilities
|
26,162
|
|
|
21,773
|
|
|
22,226
|
|
|||
Redeemable common stock held by Employee Stock Ownership Plan
|
50,348
|
|
|
46,089
|
|
|
42,045
|
|
|||
Stockholders' equity
|
353,068
|
|
|
324,377
|
|
|
303,768
|
|
|||
|
$
|
3,239,635
|
|
|
$
|
3,000,289
|
|
|
$
|
2,756,360
|
|
Name
|
Age
|
Position
|
Company
|
|
|
Dwight O. Seegmiller
|
67
|
Mr. Seegmiller, who joined the Company in 1975, has served as its President since 1986. Prior to 1986, Mr. Seegmiller was the Senior Vice President of Lending.
|
|
|
|
Shari J. DeMaris
|
50
|
Ms. DeMaris has held the position of Secretary, Treasurer and Principal Financial Officer since 2012.
|
|
|
|
Bank
|
|
|
Timothy D. Finer
|
58
|
Mr. Finer has held the position of Senior Vice President, Director of Real Estate Lending since 2005.
|
|
|
|
Steven R. Ropp
|
59
|
Mr. Ropp has held the position of Senior Vice President, Director of Commercial Banking since 2008.
|
|
|
|
Bradford C. Zuber
|
63
|
Mr. Zuber has held the position of Senior Vice President, Director of Trust Services since 1987.
|
|
|
|
Brian R. Globokar
|
46
|
Mr. Globokar has held the position of Senior Vice President, Trust Officer since 2015.
|
|
|
|
Joan M. Frieden
|
49
|
Ms. Frieden has held the position of Senior Vice President, Human Resource Director since 2005.
|
|
|
|
Kenneth W. Hinrichs
|
46
|
Mr. Hinrichs has held the position of Senior Vice President, Director of Operations and Digital Banking since 2019.
|
|
|
|
Kevin H. Sheehan
|
49
|
Mr. Sheehan has held the position of Senior Vice President, Director of Risk Management since 2019.
|
|
|
|
Lisa A. Shileny
|
43
|
Ms. Shileny has held the position of Senior Vice President, Director of Administration since 2019.
|
|
|
|
Neal T. Marple
|
50
|
Mr. Marple has held the position of Senior Vice President, Director of Information Services since 2019.
|
|
|
|
Nicole M. Slaubaugh
|
42
|
Ms. Slaubaugh has held the position of Senior Vice President, Director of Retail Banking since 2016.
|
|
Johnson County
|
|
Linn County
|
|
Washington County
|
|||||||||||||||
|
Offices
|
|
Deposits
(in millions)
|
|
Offices
|
|
Deposits
(in millions)
|
|
Offices
|
|
Deposits
(in millions)
|
|||||||||
Hills Bank and Trust Company
|
9
|
|
|
$
|
1,925
|
|
|
7
|
|
|
$
|
488
|
|
|
3
|
|
|
$
|
208
|
|
Branches of largest competing national bank
|
5
|
|
|
234
|
|
|
8
|
|
|
841
|
|
|
1
|
|
|
22
|
|
|||
Largest competing independent bank
|
7
|
|
|
719
|
|
|
5
|
|
|
1,151
|
|
|
2
|
|
|
202
|
|
|||
Largest competing credit union (1)
|
6
|
|
|
4,320
|
|
|
7
|
|
|
979
|
|
|
1
|
|
|
1
|
|
|||
All other bank and credit union offices
|
22
|
|
|
956
|
|
|
81
|
|
|
3,384
|
|
|
8
|
|
|
211
|
|
|||
Total Market in County
|
49
|
|
|
$
|
8,154
|
|
|
108
|
|
|
$
|
6,843
|
|
|
15
|
|
|
$
|
644
|
|
(1)
|
Deposit balance of the largest competing credit union in Johnson County and Linn County includes the credit union’s deposit balance for the entire institution. County specific deposit balances for the credit union are unavailable.
|
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||
As of December 31, 2019:
|
|
|
|
|
|
|
|
|||||
Company:
|
|
|
|
|
|
|
|
|||||
Total risk-based capital
|
$
|
454,452
|
|
|
18.15
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
Tier 1 risk-based capital
|
423,122
|
|
|
16.90
|
|
|
6.00
|
|
|
8.00
|
|
|
Tier 1 common equity
|
423,122
|
|
|
16.90
|
|
|
4.50
|
|
|
6.50
|
|
|
Leverage ratio
|
423,122
|
|
|
12.77
|
|
|
4.00
|
|
|
5.00
|
|
|
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
455,440
|
|
|
18.20
|
|
|
8.00
|
|
|
10.00
|
|
|
Tier 1 risk-based capital
|
424,127
|
|
|
16.95
|
|
|
6.00
|
|
|
8.00
|
|
|
Tier 1 common equity
|
424,127
|
|
|
16.95
|
|
|
4.50
|
|
|
6.50
|
|
|
Leverage ratio
|
424,127
|
|
|
12.81
|
|
|
4.00
|
|
|
5.00
|
|
Item 1A.
|
Risk Factors
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
2019
|
2018
|
||||||||||
|
High
|
Low
|
High
|
Low
|
||||||||
1st quarter
|
$
|
65.00
|
|
$
|
60.60
|
|
$
|
57.00
|
|
$
|
54.75
|
|
2nd quarter
|
65.85
|
|
62.01
|
|
57.50
|
|
55.50
|
|
||||
3rd quarter
|
66.00
|
|
63.80
|
|
59.50
|
|
58.00
|
|
||||
4th quarter
|
71.00
|
|
65.00
|
|
62.99
|
|
59.00
|
|
Year
|
Number of Shares Traded
|
Number of Transactions
|
High Selling Price
|
Low Selling Price
|
|
||||||
2019
|
126,189
|
|
146
|
|
$
|
65.00
|
|
$
|
61.00
|
|
(1)
|
2018
|
157,749
|
|
168
|
|
$
|
61.00
|
|
$
|
54.00
|
|
(2)
|
2017
|
93,095
|
|
176
|
|
$
|
54.00
|
|
$
|
48.00
|
|
(3)
|
(1)
|
2019 transactions included repurchases by the Company of 89,124 shares of stock under the 2005 Stock Repurchase Program. 2019 transactions made under the 2005 Stock Repurchase Program were made at prices that ranged from $61.00 to $65.00 per share.
|
(2)
|
2018 transactions included repurchases by the Company of 116,962 shares of stock under the 2005 Stock Repurchase Program. 2018 transactions made under the 2005 Stock Repurchase Program were made at prices that ranged from $54.00 to $61.00 per share.
|
(3)
|
2017 transactions included repurchases by the Company of 46,966 shares of stock under the 2005 Stock Repurchase Program. 2017 transactions made under the 2005 Stock Repurchase Program were made at prices that ranged from $48.00 to $54.00 per share.
|
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||||||||
HILLS BANCORPORATION
|
$
|
100.00
|
|
$
|
109.51
|
|
$
|
119.85
|
|
$
|
136.80
|
|
$
|
156.68
|
|
$
|
169.20
|
|
REGIONAL-SOUTHWEST BANKS
|
$
|
100.00
|
|
$
|
97.30
|
|
$
|
147.25
|
|
$
|
155.26
|
|
$
|
141.52
|
|
$
|
172.41
|
|
NASDAQ MARKET INDEX
|
$
|
100.00
|
|
$
|
106.96
|
|
$
|
116.45
|
|
$
|
150.96
|
|
$
|
146.67
|
|
$
|
200.49
|
|
Plan Category
|
Number of securities to
be issued upon exercise of
outstanding options,
warrants and rights (a)
|
Weighted-average
exercise price of
outstanding options,
warrants and rights (b)
|
Number of securities
remaining available for
future issuance under equity
compensation plans
[excluding securities reflected
in column (a)] (c)
|
||||
Equity compensation plans approved by security holders
|
13,025
|
|
$
|
45.92
|
|
19,853
|
|
Equity compensation plans not approved by security holders
|
—
|
|
—
|
|
—
|
|
|
Total
|
13,025
|
|
$
|
45.92
|
|
19,853
|
|
Period in 2019
|
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
|
|||||
October 1 to October 31
|
2,556
|
|
$
|
64.50
|
|
2,556
|
|
286,959
|
|
November 1 to November 30
|
2,602
|
|
65.00
|
|
2,602
|
|
284,357
|
|
|
December 1 to December 31
|
360
|
|
65.00
|
|
360
|
|
283,997
|
|
|
Total
|
5,518
|
|
$
|
64.77
|
|
5,518
|
|
283,997
|
|
Item 6.
|
Selected Financial Data
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
YEAR-END TOTALS (Amounts in Thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
3,300,887
|
|
|
$
|
3,042,464
|
|
|
$
|
2,963,360
|
|
|
$
|
2,655,770
|
|
|
$
|
2,493,607
|
|
Investment securities
|
366,368
|
|
|
331,098
|
|
|
300,160
|
|
|
279,950
|
|
|
276,069
|
|
|||||
Loans held for sale
|
8,400
|
|
|
1,984
|
|
|
5,162
|
|
|
9,806
|
|
|
5,554
|
|
|||||
Loans, net
|
2,606,277
|
|
|
2,591,085
|
|
|
2,431,165
|
|
|
2,251,445
|
|
|
2,099,174
|
|
|||||
Deposits
|
2,661,364
|
|
|
2,421,124
|
|
|
2,288,565
|
|
|
2,036,312
|
|
|
1,890,702
|
|
|||||
Federal Home Loan Bank borrowings
|
185,000
|
|
|
215,000
|
|
|
295,000
|
|
|
235,000
|
|
|
225,000
|
|
|||||
Redeemable common stock
|
51,826
|
|
|
48,870
|
|
|
43,308
|
|
|
40,781
|
|
|
37,562
|
|
|||||
Stockholders' equity
|
375,211
|
|
|
334,882
|
|
|
311,716
|
|
|
289,270
|
|
|
272,175
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
EARNINGS (Amounts in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income
|
$
|
132,332
|
|
|
$
|
118,797
|
|
|
$
|
105,952
|
|
|
$
|
97,677
|
|
|
$
|
92,167
|
|
Interest expense
|
34,873
|
|
|
26,323
|
|
|
17,972
|
|
|
16,087
|
|
|
14,967
|
|
|||||
Provision for loan losses
|
(2,880
|
)
|
|
8,497
|
|
|
1,688
|
|
|
(1,163
|
)
|
|
1,655
|
|
|||||
Other income
|
24,792
|
|
|
23,818
|
|
|
20,818
|
|
|
19,995
|
|
|
20,802
|
|
|||||
Other expenses
|
67,264
|
|
|
62,123
|
|
|
59,512
|
|
|
56,799
|
|
|
55,460
|
|
|||||
Income taxes
|
12,549
|
|
|
8,905
|
|
|
19,537
|
|
|
14,394
|
|
|
12,469
|
|
|||||
Net income
|
45,318
|
|
|
36,767
|
|
|
28,061
|
|
|
31,555
|
|
|
28,418
|
|
|||||
Net income before Tax Act (1)
|
NA
|
|
NA
|
|
32,770
|
|
|
NA
|
|
NA
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
$
|
4.85
|
|
|
$
|
3.93
|
|
|
$
|
3.01
|
|
|
$
|
3.40
|
|
|
$
|
3.04
|
|
Basic before Tax Act (1)
|
NA
|
|
NA
|
|
3.51
|
|
|
NA
|
|
NA
|
|||||||||
Diluted
|
4.85
|
|
|
3.92
|
|
|
3.01
|
|
|
3.40
|
|
|
3.04
|
|
|||||
Diluted before Tax Act (1)
|
NA
|
|
NA
|
|
3.51
|
|
|
NA
|
|
NA
|
|||||||||
Cash dividends
|
0.820
|
|
|
0.750
|
|
|
0.700
|
|
|
0.650
|
|
|
0.625
|
|
|||||
Book value as of December 31
|
40.12
|
|
|
35.87
|
|
|
33.39
|
|
|
31.22
|
|
|
29.20
|
|
|||||
Increase (decrease) in book value due to:
|
|
|
|
|
|
|
|
|
|
||||||||||
ESOP obligation
|
(5.54
|
)
|
|
(5.23
|
)
|
|
(4.64
|
)
|
|
(4.40
|
)
|
|
(4.03
|
)
|
|||||
Accumulated other comprehensive income
|
0.15
|
|
|
(0.35
|
)
|
|
(0.26
|
)
|
|
(0.36
|
)
|
|
(0.13
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
SELECTED RATIOS
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.40
|
%
|
|
1.23
|
%
|
|
1.02
|
%
|
|
1.23
|
%
|
|
1.19
|
%
|
|||||
Return on average assets before Tax Act (1)
|
NA
|
|
NA
|
|
|
1.19
|
|
|
NA
|
|
NA
|
||||||||
Return on average equity
|
11.23
|
|
|
9.92
|
|
|
9.24
|
|
|
11.26
|
|
|
10.79
|
|
|||||
Return on average equity before Tax Act (1)
|
NA
|
|
NA
|
|
|
10.79
|
|
|
NA
|
|
NA
|
||||||||
Net interest margin
|
3.18
|
|
|
3.25
|
|
|
3.43
|
|
|
3.43
|
|
|
3.50
|
|
|||||
Average stockholders' equity to average total assets
|
12.45
|
|
|
12.35
|
|
|
11.02
|
|
|
10.94
|
|
|
11.03
|
|
|||||
Dividend payout ratio
|
16.90
|
|
|
19.05
|
|
|
23.11
|
|
|
19.20
|
|
|
20.60
|
|
(1)
|
Non-GAAP financial measurement. For further information, refer to the Non-GAAP Financial Measures section of this report in Item 7.
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operation
|
•
|
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 financial market disruptions and/or an economic recession, and monetary and other governmental actions designed to address such disruptions and recession.
|
•
|
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 technology 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.
|
|
|
Year Ended December 31, 2017
|
||
Reconciliation of net income before effect of Tax Act to net income (GAAP):
|
|
|
||
Net Income (GAAP)
|
|
$
|
28,061
|
|
Tax Act related tax expense
|
|
4,709
|
|
|
Net Income before Tax Act related expense
|
|
$
|
32,770
|
|
|
|
|
||
Reconciliation of earnings per share before effect of Tax Act to earnings per share (GAAP):
|
|
|
||
Non-GAAP net income reconciled above
|
|
$
|
32,770
|
|
Weighted average shares outstanding (basic)
|
|
9,330,003
|
|
|
Earnings Per Share (basic) before effect of Tax Act
|
|
$
|
3.51
|
|
|
|
|
||
Weighted average shares outstanding (diluted)
|
|
9,334,635
|
|
|
Earnings Per Share (diluted) before effect of Tax Act
|
|
$
|
3.51
|
|
|
|
|
||
Reconciliation of return on average assets before effect of Tax Act to return on average assets (GAAP):
|
|
|
||
Non-GAAP net income reconciled above
|
|
$
|
32,770
|
|
Average assets
|
|
2,756,360
|
|
|
Return on average assets before effect of Tax Act
|
|
1.19
|
%
|
|
|
|
|
||
Reconciliation of return on average equity after effect of Tax Act to return on average equity (GAAP):
|
|
|
||
Non-GAAP net income reconciled above
|
|
$
|
32,770
|
|
Average equity
|
|
303,768
|
|
|
Return on average equity before effect of Tax Act
|
|
10.79
|
%
|
•
|
Loans, net of allowance for loan losses and unamortized fees and costs, totaling $2.615 billion.
|
•
|
Net loan growth in 2019 of $15.19 million.
|
•
|
Deposit growth of $240.24 million in 2019. Deposits increased to $2.661 billion and included $109.29 million of brokered deposits.
|
•
|
FHLB Borrowings decreased $30.00 million.
|
•
|
Stockholders’ equity increased $40.33 million to $375.21 million in 2019, with dividends having been paid in 2019 of $7.66 million.
|
Year End Amounts
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Amounts In Thousands)
|
|
|
||||||||||||||||
Total assets
|
$
|
3,300,887
|
|
|
$
|
3,042,464
|
|
|
$
|
2,963,360
|
|
|
$
|
2,655,770
|
|
|
$
|
2,493,607
|
|
Investment securities
|
366,368
|
|
|
331,098
|
|
|
300,160
|
|
|
279,950
|
|
|
276,069
|
|
|||||
Loans held for sale
|
8,400
|
|
|
1,984
|
|
|
5,162
|
|
|
9,806
|
|
|
5,554
|
|
|||||
Loans, net
|
2,606,277
|
|
|
2,591,085
|
|
|
2,431,165
|
|
|
2,251,445
|
|
|
2,099,174
|
|
|||||
Deposits
|
2,661,364
|
|
|
2,421,124
|
|
|
2,288,565
|
|
|
2,036,312
|
|
|
1,890,702
|
|
|||||
Federal Home Loan Bank borrowings
|
185,000
|
|
|
215,000
|
|
|
295,000
|
|
|
235,000
|
|
|
225,000
|
|
|||||
Redeemable common stock
|
51,826
|
|
|
48,870
|
|
|
43,308
|
|
|
40,781
|
|
|
37,562
|
|
|||||
Stockholders' equity
|
375,211
|
|
|
334,882
|
|
|
311,716
|
|
|
289,270
|
|
|
272,175
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
91,317
|
|
|
$
|
92,673
|
|
|
$
|
88,580
|
|
|
$
|
92,871
|
|
|
$
|
101,588
|
|
Commercial and financial
|
221,323
|
|
|
229,501
|
|
|
218,632
|
|
|
192,995
|
|
|
184,199
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction, 1 to 4 family residential
|
80,209
|
|
|
72,279
|
|
|
69,738
|
|
|
57,864
|
|
|
51,346
|
|
|||||
Construction, land development and commercial
|
108,410
|
|
|
113,807
|
|
|
109,595
|
|
|
121,561
|
|
|
83,121
|
|
|||||
Mortgage, farmland
|
242,730
|
|
|
236,454
|
|
|
215,286
|
|
|
202,340
|
|
|
187,856
|
|
|||||
Mortgage, 1 to 4 family first liens
|
910,742
|
|
|
912,059
|
|
|
831,591
|
|
|
767,469
|
|
|
727,160
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
149,227
|
|
|
152,625
|
|
|
144,200
|
|
|
125,400
|
|
|
117,873
|
|
|||||
Mortgage, multi-family
|
350,761
|
|
|
352,434
|
|
|
336,810
|
|
|
302,831
|
|
|
271,974
|
|
|||||
Mortgage, commercial
|
402,181
|
|
|
383,314
|
|
|
361,196
|
|
|
334,198
|
|
|
323,409
|
|
|||||
Loans to individuals
|
32,308
|
|
|
30,072
|
|
|
26,417
|
|
|
25,157
|
|
|
24,019
|
|
|||||
Obligations of state and political subdivisions
|
49,896
|
|
|
52,725
|
|
|
57,626
|
|
|
54,462
|
|
|
52,371
|
|
|||||
|
$
|
2,639,104
|
|
|
$
|
2,627,943
|
|
|
$
|
2,459,671
|
|
|
$
|
2,277,148
|
|
|
$
|
2,124,916
|
|
Net unamortized fees and costs
|
933
|
|
|
952
|
|
|
894
|
|
|
827
|
|
|
768
|
|
|||||
|
$
|
2,640,037
|
|
|
$
|
2,628,895
|
|
|
$
|
2,460,565
|
|
|
$
|
2,277,975
|
|
|
$
|
2,125,684
|
|
Less allowance for loan losses
|
33,760
|
|
|
37,810
|
|
|
29,400
|
|
|
26,530
|
|
|
26,510
|
|
|||||
|
$
|
2,606,277
|
|
|
$
|
2,591,085
|
|
|
$
|
2,431,165
|
|
|
$
|
2,251,445
|
|
|
$
|
2,099,174
|
|
(1)
|
A significant portion of the commercial loans are due in one year or less. A significant percentage of the loans will be re-evaluated prior to their maturity and are likely to be extended.
|
(2)
|
Commercial, multi-family, construction 1 to 4 family residential, construction land development and commercial, and agricultural real estate loans are reflected in the Commercial and Agricultural total.
|
|
Unemployment Rate %
|
|
Median Income
|
|||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2016
|
|||||||||
United States
|
3.5
|
%
|
|
3.9
|
%
|
|
4.1
|
%
|
|
$
|
60,293
|
|
|
$
|
60,336
|
|
|
$
|
57,617
|
|
State of Iowa
|
2.7
|
%
|
|
2.5
|
%
|
|
2.8
|
%
|
|
58,580
|
|
|
58,570
|
|
|
56,247
|
|
|||
Johnson County
|
2.2
|
%
|
|
1.7
|
%
|
|
2.0
|
%
|
|
61,640
|
|
|
59,965
|
|
|
56,808
|
|
|||
Linn County
|
3.1
|
%
|
|
2.7
|
%
|
|
3.2
|
%
|
|
64,862
|
|
|
62,702
|
|
|
60,989
|
|
|||
Washington County
|
2.5
|
%
|
|
2.2
|
%
|
|
2.4
|
%
|
|
61,769
|
|
|
59,157
|
|
|
56,864
|
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
Rate
|
|
2018
|
|
Rate
|
|
2017
|
|
Rate
|
|||||||||
|
(Amounts In Thousands)
|
|||||||||||||||||||
Average noninterest-bearing deposits
|
$
|
366,682
|
|
|
—
|
|
|
$
|
364,916
|
|
|
—
|
|
|
$
|
342,640
|
|
|
—
|
|
Average interest-bearing demand deposits
|
716,848
|
|
|
0.87
|
%
|
|
644,712
|
|
|
0.63
|
%
|
|
548,598
|
|
|
0.21
|
%
|
|||
Average savings deposits
|
851,503
|
|
|
0.92
|
|
|
832,772
|
|
|
0.75
|
|
|
748,862
|
|
|
0.34
|
|
|||
Average time deposits
|
661,548
|
|
|
2.19
|
|
|
537,575
|
|
|
1.72
|
|
|
451,208
|
|
|
1.34
|
|
|||
|
$
|
2,596,581
|
|
|
|
|
|
$
|
2,379,975
|
|
|
|
|
|
$
|
2,091,308
|
|
|
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
Carrying value:
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
128,585
|
|
|
$
|
83,155
|
|
|
$
|
54,318
|
|
Other securities (FHLB, FHLMC and FNMA)
|
15,229
|
|
|
34,871
|
|
|
43,959
|
|
|||
Stock of the Federal Home Loan Bank
|
11,065
|
|
|
12,172
|
|
|
15,005
|
|
|||
Obligations of state and political subdivisions
|
211,489
|
|
|
200,900
|
|
|
186,878
|
|
|||
|
$
|
366,368
|
|
|
$
|
331,098
|
|
|
$
|
300,160
|
|
|
December 31, 2019
|
|||||
|
Carrying
Value
|
|
Weighted
Average
Yield
|
|||
|
(Amounts In Thousands)
|
|||||
U.S. Treasury
|
|
|
|
|||
Within 1 year
|
$
|
12,493
|
|
|
1.98
|
%
|
From 1 to 5 years
|
116,092
|
|
|
2.11
|
%
|
|
|
$
|
128,585
|
|
|
|
|
Other securities (FHLB, FHLMC and FNMA), maturities:
|
|
|
|
|||
Within 1 year
|
$
|
12,743
|
|
|
1.21
|
%
|
From 1 to 5 years
|
2,486
|
|
|
1.33
|
|
|
From 5 to 10 years
|
—
|
|
|
—
|
|
|
|
$
|
15,229
|
|
|
|
|
|
|
|
|
|||
Stock of the Federal Home Loan Bank
|
$
|
11,065
|
|
|
2.92
|
%
|
|
|
|
|
|||
Obligations of state and political subdivisions, maturities:
|
|
|
|
|
|
|
Within 1 year
|
$
|
37,953
|
|
|
1.79
|
%
|
From 1 to 5 years
|
79,981
|
|
|
1.90
|
|
|
From 5 to 10 years
|
84,025
|
|
|
2.18
|
|
|
Over 10 years
|
9,530
|
|
|
2.05
|
|
|
|
$
|
211,489
|
|
|
|
|
Total
|
$
|
366,368
|
|
|
|
|
(1)
|
Non-GAAP financial measurement. For further information, refer to the Non-GAAP Financial Measures section of this report in Item 7.
|
Year
|
Net Income
|
|
% (Decrease) Increase
|
|
Earnings Per
Share - Diluted
|
|||||
|
(In Thousands)
|
|
|
|
|
|||||
2019
|
$
|
45,318
|
|
|
23.26
|
%
|
|
$
|
4.85
|
|
2018
|
36,767
|
|
|
31.03
|
|
|
3.92
|
|
||
2017
|
28,061
|
|
|
(11.07
|
)
|
|
3.01
|
|
||
2017 (1)
|
32,770
|
|
|
3.85
|
|
|
3.51
|
|
||
2016
|
31,555
|
|
|
11.04
|
|
|
3.40
|
|
||
2015
|
28,418
|
|
|
5.35
|
|
|
3.04
|
|
(1)
|
Non-GAAP financial measurement. For further information, refer to the Non-GAAP Financial Measurement section of this report.
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
Income:
|
|
|
|
|
|
||||||
Loans (1)
|
$
|
121,862
|
|
|
$
|
111,172
|
|
|
$
|
101,564
|
|
Taxable securities
|
3,239
|
|
|
2,759
|
|
|
1,709
|
|
|||
Nontaxable securities (1)
|
5,168
|
|
|
4,717
|
|
|
4,972
|
|
|||
Interest-bearing cash and cash equivalents
|
3,980
|
|
|
1,939
|
|
|
433
|
|
|||
Total interest income
|
$
|
134,249
|
|
|
$
|
120,587
|
|
|
$
|
108,678
|
|
Expense:
|
|
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits
|
6,232
|
|
|
4,056
|
|
|
1,172
|
|
|||
Savings deposits
|
7,825
|
|
|
6,208
|
|
|
2,532
|
|
|||
Time deposits
|
14,483
|
|
|
9,267
|
|
|
6,038
|
|
|||
Other borrowings
|
—
|
|
|
—
|
|
|
184
|
|
|||
FHLB borrowings
|
6,333
|
|
|
6,792
|
|
|
8,046
|
|
|||
Interest-bearing other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total interest expense
|
$
|
34,873
|
|
|
$
|
26,323
|
|
|
$
|
17,972
|
|
Net interest income
|
$
|
99,376
|
|
|
$
|
94,264
|
|
|
$
|
90,706
|
|
|
Change In
|
|
Change In
|
|
Increase (Decrease)
|
|||||||||||||
|
Average
Balance
|
|
Average
Rate
|
|
Volume
Changes
|
|
Rate
Changes
|
|
Net
Change
|
|||||||||
|
(Amounts In Thousands)
|
|||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans, net
|
$
|
123,810
|
|
|
0.20
|
%
|
|
$
|
5,716
|
|
|
$
|
4,974
|
|
|
$
|
10,690
|
|
Taxable securities
|
11,060
|
|
|
0.15
|
|
|
325
|
|
|
155
|
|
|
480
|
|
||||
Nontaxable securities
|
8,827
|
|
|
0.11
|
|
|
230
|
|
|
221
|
|
|
451
|
|
||||
Interest-bearing cash and cash equivalents
|
84,596
|
|
|
0.26
|
|
|
1,553
|
|
|
488
|
|
|
2,041
|
|
||||
Federal funds sold
|
33
|
|
|
1.13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
228,326
|
|
|
|
|
|
$
|
7,824
|
|
|
$
|
5,838
|
|
|
$
|
13,662
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing demand deposits
|
$
|
72,136
|
|
|
0.24
|
%
|
|
$
|
(454
|
)
|
|
$
|
(1,723
|
)
|
|
$
|
(2,177
|
)
|
Savings deposits
|
18,731
|
|
|
0.17
|
|
|
(119
|
)
|
|
(1,497
|
)
|
|
(1,616
|
)
|
||||
Time deposits
|
123,973
|
|
|
0.47
|
|
|
(2,137
|
)
|
|
(3,079
|
)
|
|
(5,216
|
)
|
||||
Other borrowings
|
(1
|
)
|
|
(0.07
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
FHLB borrowings
|
(14,598
|
)
|
|
(0.01
|
)
|
|
435
|
|
|
24
|
|
|
459
|
|
||||
Interest-bearing other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
200,241
|
|
|
|
|
|
$
|
(2,275
|
)
|
|
$
|
(6,275
|
)
|
|
$
|
(8,550
|
)
|
Change in net interest income
|
|
|
|
|
|
|
$
|
5,549
|
|
|
$
|
(437
|
)
|
|
$
|
5,112
|
|
|
Change In Average Balance
|
|
Change In Average Rate
|
|
Increase (Decrease)
|
|||||||||||||
|
|
|
Volume
Changes
|
|
Rate
Changes
|
|
Net
Change
|
|||||||||||
|
(Amounts In Thousands)
|
|||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans, net
|
$
|
147,130
|
|
|
0.13
|
%
|
|
$
|
6,369
|
|
|
$
|
3,239
|
|
|
$
|
9,608
|
|
Taxable securities
|
23,069
|
|
|
0.50
|
|
|
374
|
|
|
676
|
|
|
1,050
|
|
||||
Nontaxable securities
|
12,035
|
|
|
(0.33
|
)
|
|
354
|
|
|
(609
|
)
|
|
(255
|
)
|
||||
Interest-bearing cash and cash equivalents
|
68,585
|
|
|
0.67
|
|
|
801
|
|
|
705
|
|
|
1,506
|
|
||||
Federal funds sold
|
(25
|
)
|
|
0.99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
250,794
|
|
|
|
|
|
$
|
7,898
|
|
|
$
|
4,011
|
|
|
$
|
11,909
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing demand deposits
|
$
|
96,114
|
|
|
0.42
|
%
|
|
$
|
(205
|
)
|
|
$
|
(2,679
|
)
|
|
$
|
(2,884
|
)
|
Savings deposits
|
83,910
|
|
|
0.41
|
|
|
(389
|
)
|
|
(3,288
|
)
|
|
(3,677
|
)
|
||||
Time deposits
|
86,367
|
|
|
0.38
|
|
|
(1,156
|
)
|
|
(2,072
|
)
|
|
(3,228
|
)
|
||||
Other borrowings
|
(28,593
|
)
|
|
2.07
|
|
|
184
|
|
|
—
|
|
|
184
|
|
||||
FHLB borrowings
|
(40,345
|
)
|
|
(0.02
|
)
|
|
1,209
|
|
|
45
|
|
|
1,254
|
|
||||
Interest-bearing other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
197,453
|
|
|
|
|
|
$
|
(357
|
)
|
|
$
|
(7,994
|
)
|
|
$
|
(8,351
|
)
|
Change in net interest income
|
|
|
|
|
|
|
$
|
7,541
|
|
|
$
|
(3,983
|
)
|
|
$
|
3,558
|
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Average yields:
|
|
|
|
|
|
|||
Loans (1)
|
4.64
|
%
|
|
4.45
|
%
|
|
4.30
|
%
|
Loans (tax equivalent basis) (1)
|
4.67
|
|
|
4.47
|
|
|
4.34
|
|
Taxable securities
|
2.27
|
|
|
2.13
|
|
|
1.63
|
|
Nontaxable securities
|
2.04
|
|
|
1.96
|
|
|
1.91
|
|
Nontaxable securities (tax equivalent basis)
|
2.72
|
|
|
2.61
|
|
|
2.94
|
|
Interest-bearing cash and cash equivalents
|
2.09
|
|
|
1.84
|
|
|
1.17
|
|
Federal funds sold
|
2.89
|
|
|
1.75
|
|
|
0.76
|
|
Average rates paid:
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
0.87
|
|
|
0.63
|
|
|
0.21
|
|
Savings deposits
|
0.92
|
|
|
0.75
|
|
|
0.34
|
|
Time deposits
|
2.19
|
|
|
1.72
|
|
|
1.34
|
|
Short-term borrowings
|
2.64
|
|
|
2.71
|
|
|
0.64
|
|
FHLB borrowings
|
2.93
|
|
|
2.94
|
|
|
2.96
|
|
Yield on average interest-earning assets
|
4.29
|
|
|
4.15
|
|
|
4.10
|
|
Rate on average interest-bearing liabilities
|
1.42
|
|
|
1.17
|
|
|
0.87
|
|
Net interest spread (2)
|
2.86
|
|
|
2.99
|
|
|
3.23
|
|
Net interest margin (3)
|
3.18
|
|
|
3.25
|
|
|
3.43
|
|
(1)
|
Non-accruing loans have been included in the average loan balances for purposes of this computation.
|
(2)
|
Net interest spread is the difference between the yield on average interest-earning assets and the yield on average interest-paying liabilities stated on a tax equivalent basis using a federal rate of 21% for 2019 and 2018 and 35% for 2017. The net interest spread decreased 13 basis points in 2019 compared to 2018 and the net interest spread decreased 24 basis points compared to 2017.
|
(3)
|
Net interest margin is net interest income, on a tax equivalent basis, divided by average interest-earning assets. The net interest margin decreased 7 basis points in 2019. The net interest margin decreased 18 basis points in 2018 compared to 2017.
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||
Nonaccrual loans (1)
|
$
|
10,768
|
|
|
$
|
10,829
|
|
|
$
|
9,096
|
|
|
$
|
9,938
|
|
|
$
|
7,415
|
|
Accruing loans past due 90 days or more (2)
|
606
|
|
|
370
|
|
|
971
|
|
|
635
|
|
|
467
|
|
|||||
Specific reserve loans
|
243
|
|
|
8,247
|
|
|
12,950
|
|
|
17,683
|
|
|
100
|
|
|||||
Troubled debt restructurings ("TDR loans")(1) (3)
|
9,308
|
|
|
8,539
|
|
|
8,470
|
|
|
5,408
|
|
|
8,279
|
|
|||||
Total impaired loans
|
$
|
20,925
|
|
|
$
|
27,985
|
|
|
$
|
31,487
|
|
|
$
|
33,664
|
|
|
$
|
16,261
|
|
Other real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
237
|
|
|
439
|
|
|||||
Non-performing assets (includes impaired loans and other real estate)
|
$
|
20,925
|
|
|
$
|
27,985
|
|
|
$
|
31,487
|
|
|
$
|
33,901
|
|
|
$
|
16,700
|
|
Loans held for investment
|
$2,639,104
|
|
$2,627,943
|
|
$2,459,671
|
|
$2,277,148
|
|
$2,124,916
|
||||||||||
Ratio of allowance for loan losses to loans held for investment
|
1.28
|
%
|
|
1.44
|
%
|
|
1.20
|
%
|
|
1.17
|
%
|
|
1.25
|
%
|
|||||
Ratio of allowance for loan losses to impaired loans
|
161.34
|
|
|
135.11
|
|
|
93.37
|
|
|
78.81
|
|
|
163.03
|
|
|||||
Ratio of impaired loans to total loans held for investment
|
0.79
|
|
|
1.06
|
|
|
1.28
|
|
|
1.48
|
|
|
0.77
|
|
|||||
Ratio of non-performing assets to total assets
|
0.63
|
|
|
0.92
|
|
|
1.06
|
|
|
1.28
|
|
|
0.67
|
|
(1)
|
The gross interest income that would have been recorded if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period was $0.58 million in 2019 and $0.79 million in 2018. The amount of interest income on the loans that was included in income was $0.53 million in 2019 and $0.40 million in 2018.
|
(2)
|
The accruing loans past due 90 days or more are still believed to be adequately collateralized. Loans are placed on nonaccrual status when management believes the collection of future principal and interest is not reasonably assured.
|
(3)
|
Total TDR loans were $13.71, $13.38, $12.09, $9.64 and $10.59 million as of December 31, 2019, 2018, 2017, 2016, and 2015, respectively. Included in the total nonaccrual loans were $4.34, $4.84, $3.62, $4.23, and $2.31 million of TDR loans as of December 31, 2019, 2018, 2017, 2016, and 2015, respectively.
|
|
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)
|
||||||||||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,789
|
|
|
$
|
5,826
|
|
|
$
|
3,292
|
|
|
$
|
3,972
|
|
|
$
|
12,516
|
|
|
$
|
8,165
|
|
|
$
|
1,250
|
|
|
$
|
37,810
|
|
Charge-offs
|
(266
|
)
|
|
(981
|
)
|
|
(45
|
)
|
|
(6
|
)
|
|
(896
|
)
|
|
(341
|
)
|
|
(434
|
)
|
|
(2,969
|
)
|
||||||||
Recoveries
|
95
|
|
|
646
|
|
|
8
|
|
|
5
|
|
|
700
|
|
|
180
|
|
|
165
|
|
|
1,799
|
|
||||||||
Provision
|
(218
|
)
|
|
(503
|
)
|
|
(656
|
)
|
|
(21
|
)
|
|
(1,682
|
)
|
|
(145
|
)
|
|
345
|
|
|
(2,880
|
)
|
||||||||
Ending balance
|
$
|
2,400
|
|
|
$
|
4,988
|
|
|
$
|
2,599
|
|
|
$
|
3,950
|
|
|
$
|
10,638
|
|
|
$
|
7,859
|
|
|
$
|
1,326
|
|
|
$
|
33,760
|
|
|
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)
|
||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,294
|
|
|
$
|
4,837
|
|
|
$
|
2,989
|
|
|
$
|
3,669
|
|
|
$
|
8,668
|
|
|
$
|
5,700
|
|
|
$
|
1,243
|
|
|
$
|
29,400
|
|
Charge-offs
|
(95
|
)
|
|
(585
|
)
|
|
—
|
|
|
—
|
|
|
(830
|
)
|
|
(251
|
)
|
|
(561
|
)
|
|
(2,322
|
)
|
||||||||
Recoveries
|
119
|
|
|
1,057
|
|
|
148
|
|
|
30
|
|
|
612
|
|
|
107
|
|
|
162
|
|
|
2,235
|
|
||||||||
Provision
|
471
|
|
|
517
|
|
|
155
|
|
|
273
|
|
|
4,066
|
|
|
2,609
|
|
|
406
|
|
|
8,497
|
|
||||||||
Ending balance
|
$
|
2,789
|
|
|
$
|
5,826
|
|
|
$
|
3,292
|
|
|
$
|
3,972
|
|
|
$
|
12,516
|
|
|
$
|
8,165
|
|
|
$
|
1,250
|
|
|
$
|
37,810
|
|
|
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)
|
||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,947
|
|
|
$
|
4,531
|
|
|
$
|
2,890
|
|
|
$
|
3,417
|
|
|
$
|
7,677
|
|
|
$
|
4,045
|
|
|
$
|
1,023
|
|
|
$
|
26,530
|
|
Charge-offs
|
(167
|
)
|
|
(583
|
)
|
|
(114
|
)
|
|
(3
|
)
|
|
(553
|
)
|
|
(130
|
)
|
|
(554
|
)
|
|
(2,104
|
)
|
||||||||
Recoveries
|
146
|
|
|
1,183
|
|
|
662
|
|
|
—
|
|
|
661
|
|
|
376
|
|
|
258
|
|
|
3,286
|
|
||||||||
Provision
|
(632
|
)
|
|
(294
|
)
|
|
(449
|
)
|
|
255
|
|
|
883
|
|
|
1,409
|
|
|
516
|
|
|
1,688
|
|
||||||||
Ending balance
|
$
|
2,294
|
|
|
$
|
4,837
|
|
|
$
|
2,989
|
|
|
$
|
3,669
|
|
|
$
|
8,668
|
|
|
$
|
5,700
|
|
|
$
|
1,243
|
|
|
$
|
29,400
|
|
|
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)
|
||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
3,082
|
|
|
$
|
4,517
|
|
|
$
|
2,280
|
|
|
$
|
3,342
|
|
|
$
|
8,172
|
|
|
$
|
4,223
|
|
|
$
|
894
|
|
|
$
|
26,510
|
|
Charge-offs
|
(226
|
)
|
|
(315
|
)
|
|
(34
|
)
|
|
(116
|
)
|
|
(1,181
|
)
|
|
(66
|
)
|
|
(693
|
)
|
|
(2,631
|
)
|
||||||||
Recoveries
|
181
|
|
|
1,169
|
|
|
849
|
|
|
—
|
|
|
1,043
|
|
|
385
|
|
|
187
|
|
|
3,814
|
|
||||||||
Provision
|
(90
|
)
|
|
(840
|
)
|
|
(205
|
)
|
|
191
|
|
|
(357
|
)
|
|
(497
|
)
|
|
635
|
|
|
(1,163
|
)
|
||||||||
Ending balance
|
$
|
2,947
|
|
|
$
|
4,531
|
|
|
$
|
2,890
|
|
|
$
|
3,417
|
|
|
$
|
7,677
|
|
|
$
|
4,045
|
|
|
$
|
1,023
|
|
|
$
|
26,530
|
|
|
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)
|
||||||||||||||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,515
|
|
|
$
|
4,231
|
|
|
$
|
2,241
|
|
|
$
|
2,672
|
|
|
$
|
7,419
|
|
|
$
|
4,195
|
|
|
$
|
747
|
|
|
$
|
24,020
|
|
Charge-offs
|
(325
|
)
|
|
(526
|
)
|
|
(285
|
)
|
|
—
|
|
|
(1,108
|
)
|
|
(723
|
)
|
|
(438
|
)
|
|
(3,405
|
)
|
||||||||
Recoveries
|
123
|
|
|
1,370
|
|
|
501
|
|
|
6
|
|
|
762
|
|
|
1,310
|
|
|
168
|
|
|
4,240
|
|
||||||||
Provision
|
769
|
|
|
(558
|
)
|
|
(177
|
)
|
|
664
|
|
|
1,099
|
|
|
(559
|
)
|
|
417
|
|
|
1,655
|
|
||||||||
Ending balance
|
$
|
3,082
|
|
|
$
|
4,517
|
|
|
$
|
2,280
|
|
|
$
|
3,342
|
|
|
$
|
8,172
|
|
|
$
|
4,223
|
|
|
$
|
894
|
|
|
$
|
26,510
|
|
|
2019
|
|
2018
|
||||||||||||||||
|
Amount
|
|
% of Total Allowance
|
|
% of Loans
to Total Loans |
|
Amount
|
|
% of Total Allowance
|
|
% of Loans
to Total Loans
|
||||||||
|
(In Thousands)
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
||||||||
Agricultural
|
$
|
2,400
|
|
|
7.11
|
%
|
|
3.46
|
%
|
|
$
|
2,789
|
|
|
7.38
|
%
|
|
3.53
|
%
|
Commercial and financial
|
4,988
|
|
|
14.77
|
%
|
|
8.39
|
|
|
5,826
|
|
|
15.41
|
%
|
|
8.73
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Construction, 1 to 4 family residential
|
1,113
|
|
|
3.30
|
%
|
|
3.04
|
|
|
1,297
|
|
|
3.43
|
%
|
|
2.75
|
|
||
Construction, land development and commercial
|
1,486
|
|
|
4.40
|
%
|
|
4.11
|
|
|
1,995
|
|
|
5.28
|
%
|
|
4.33
|
|
||
Mortgage, farmland
|
3,950
|
|
|
11.70
|
%
|
|
9.20
|
|
|
3,972
|
|
|
10.51
|
%
|
|
9.00
|
|
||
Mortgage, 1 to 4 family first liens
|
9,045
|
|
|
26.79
|
%
|
|
34.51
|
|
|
10,750
|
|
|
28.43
|
%
|
|
34.71
|
|
||
Mortgage, 1 to 4 family junior liens
|
1,593
|
|
|
4.72
|
%
|
|
5.65
|
|
|
1,766
|
|
|
4.67
|
%
|
|
5.81
|
|
||
Mortgage, multi-family
|
3,823
|
|
|
11.32
|
%
|
|
13.29
|
|
|
4,083
|
|
|
10.80
|
%
|
|
13.41
|
|
||
Mortgage, commercial
|
4,036
|
|
|
11.95
|
%
|
|
15.24
|
|
|
4,082
|
|
|
10.80
|
%
|
|
14.58
|
|
||
Loans to individuals
|
853
|
|
|
2.53
|
%
|
|
1.22
|
|
|
723
|
|
|
1.91
|
%
|
|
1.14
|
|
||
Obligations of state and political subdivisions
|
473
|
|
|
1.41
|
|
|
1.89
|
|
|
527
|
|
|
1.38
|
|
|
2.01
|
|
||
|
$
|
33,760
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
$
|
37,810
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
2017
|
|
2016
|
||||||||||||||||
Agricultural
|
$
|
2,294
|
|
|
7.80
|
%
|
|
3.60
|
%
|
|
$
|
2,947
|
|
|
11.11
|
%
|
|
4.08
|
%
|
Commercial and financial
|
4,837
|
|
|
16.45
|
%
|
|
8.89
|
|
|
4,531
|
|
|
17.08
|
|
|
8.48
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction, 1 to 4 family residential
|
1,193
|
|
|
4.06
|
%
|
|
2.84
|
|
|
1,023
|
|
|
3.86
|
|
|
2.54
|
|
||
Construction, land development and commercial
|
1,796
|
|
|
6.11
|
%
|
|
4.46
|
|
|
1,867
|
|
|
7.04
|
|
|
5.34
|
|
||
Mortgage, farmland
|
3,669
|
|
|
12.48
|
%
|
|
8.75
|
|
|
3,417
|
|
|
12.88
|
|
|
8.89
|
|
||
Mortgage, 1 to 4 family first liens
|
7,369
|
|
|
25.07
|
%
|
|
33.81
|
|
|
6,560
|
|
|
24.72
|
|
|
33.70
|
|
||
Mortgage, 1 to 4 family junior liens
|
1,299
|
|
|
4.42
|
%
|
|
5.86
|
|
|
1,117
|
|
|
4.21
|
|
|
5.51
|
|
||
Mortgage, multi-family
|
2,791
|
|
|
9.49
|
%
|
|
13.69
|
|
|
1,669
|
|
|
6.29
|
|
|
13.30
|
|
||
Mortgage, commercial
|
2,909
|
|
|
9.89
|
%
|
|
14.69
|
|
|
2,376
|
|
|
8.95
|
|
|
14.67
|
|
||
Loans to individuals
|
782
|
|
|
2.66
|
%
|
|
1.07
|
|
|
642
|
|
|
2.42
|
|
|
1.10
|
|
||
Obligations of state and political subdivisions
|
461
|
|
|
1.57
|
|
|
2.34
|
|
|
381
|
|
|
1.44
|
|
|
2.39
|
|
||
|
$
|
29,400
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
$
|
26,530
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
2015
|
||||||||
|
Amount
|
|
% of Total Allowance
|
|
% of Loans
to Total Loans
|
||||
|
(In Thousands)
|
|
|
|
|
||||
Agricultural
|
$
|
3,082
|
|
|
11.63
|
%
|
|
4.78
|
%
|
Commercial and financial
|
4,517
|
|
|
17.04
|
|
|
8.67
|
|
|
Real estate:
|
|
|
|
|
|
|
|
||
Construction, 1 to 4 family residential
|
866
|
|
|
3.27
|
|
|
2.42
|
|
|
Construction, land development and commercial
|
1,414
|
|
|
5.33
|
|
|
3.91
|
|
|
Mortgage, farmland
|
3,342
|
|
|
12.61
|
|
|
8.84
|
|
|
Mortgage, 1 to 4 family first liens
|
6,931
|
|
|
26.14
|
|
|
34.22
|
|
|
Mortgage, 1 to 4 family junior liens
|
1,241
|
|
|
4.68
|
|
|
5.55
|
|
|
Mortgage, multi-family
|
1,713
|
|
|
6.46
|
|
|
12.80
|
|
|
Mortgage, commercial
|
2,510
|
|
|
9.47
|
|
|
15.22
|
|
|
Loans to individuals
|
501
|
|
|
1.89
|
|
|
1.13
|
|
|
Obligations of state and political subdivisions
|
393
|
|
|
1.48
|
|
|
2.46
|
|
|
|
$
|
26,510
|
|
|
100.00
|
%
|
|
100.00
|
%
|
|
Year Ended December 31,
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019/2018
|
|
|
2018/2017
|
|
|
2019/2018
|
|
|
2018/2017
|
|
||||||||
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net gain on sale of loans
|
$
|
3,539
|
|
|
$
|
1,517
|
|
|
$
|
1,547
|
|
|
$
|
2,022
|
|
|
$
|
(30
|
)
|
|
133.29
|
%
|
|
(1.94
|
)%
|
Trust fees
|
9,579
|
|
|
10,007
|
|
|
8,043
|
|
|
(428
|
)
|
|
1,964
|
|
|
(4.28
|
)
|
|
24.42
|
|
|||||
Service charges and fees
|
10,276
|
|
|
9,614
|
|
|
8,850
|
|
|
662
|
|
|
764
|
|
|
6.89
|
|
|
8.63
|
|
|||||
Other noninterest income
|
1,426
|
|
|
2,680
|
|
|
2,378
|
|
|
(1,254
|
)
|
|
302
|
|
|
(46.79
|
)
|
|
12.70
|
|
|||||
Loss on sale of investment securities
|
$
|
(28
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
$
|
24,792
|
|
|
$
|
23,818
|
|
|
$
|
20,818
|
|
|
$
|
974
|
|
|
$
|
3,000
|
|
|
4.09
|
%
|
|
14.41
|
%
|
|
Year Ended December 31,
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019/2018
|
|
|
2018/2017
|
|
|
2019/2018
|
|
|
2018/2017
|
|
||||||||
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries and employee benefits
|
$
|
36,709
|
|
|
$
|
34,981
|
|
|
$
|
33,197
|
|
|
$
|
1,728
|
|
|
$
|
1,784
|
|
|
4.94
|
%
|
|
5.37
|
%
|
Occupancy
|
4,336
|
|
|
4,374
|
|
|
4,189
|
|
|
(38
|
)
|
|
185
|
|
|
(0.87
|
)
|
|
4.42
|
|
|||||
Furniture and equipment
|
6,795
|
|
|
5,741
|
|
|
5,580
|
|
|
1,054
|
|
|
161
|
|
|
18.36
|
|
|
2.89
|
|
|||||
Office supplies and postage
|
1,841
|
|
|
1,778
|
|
|
1,961
|
|
|
63
|
|
|
(183
|
)
|
|
3.54
|
|
|
(9.33
|
)
|
|||||
Advertising and business development
|
2,595
|
|
|
2,513
|
|
|
2,764
|
|
|
82
|
|
|
(251
|
)
|
|
3.26
|
|
|
(9.08
|
)
|
|||||
Outside services
|
10,360
|
|
|
10,076
|
|
|
8,303
|
|
|
284
|
|
|
1,773
|
|
|
2.82
|
|
|
21.35
|
|
|||||
FDIC insurance assessment
|
194
|
|
|
856
|
|
|
845
|
|
|
(662
|
)
|
|
11
|
|
|
(77.34
|
)
|
|
1.30
|
|
|||||
Other noninterest expense
|
4,434
|
|
|
1,804
|
|
|
2,673
|
|
|
2,630
|
|
|
(869
|
)
|
|
145.79
|
|
|
(32.51
|
)
|
|||||
|
$
|
67,264
|
|
|
$
|
62,123
|
|
|
$
|
59,512
|
|
|
$
|
5,141
|
|
|
$
|
2,611
|
|
|
8.28
|
%
|
|
4.39
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
Outstanding balance as of December 31
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Weighted average interest rate at year end
|
—
|
%
|
|
—
|
%
|
|
0.73
|
%
|
|||
Maximum month-end balance
|
—
|
|
|
—
|
|
|
44,588
|
|
|||
Average month-end balance
|
—
|
|
|
—
|
|
|
25,360
|
|
|||
Weighted average interest rate for the year
|
2.64
|
%
|
|
2.71
|
%
|
|
0.64
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
Outstanding balance as of December 31
|
$
|
185,000
|
|
|
$
|
215,000
|
|
|
$
|
295,000
|
|
Weighted average interest rate at year end
|
2.93
|
%
|
|
2.94
|
%
|
|
2.82
|
%
|
|||
Maximum month-end balance
|
215,000
|
|
|
280,000
|
|
|
345,000
|
|
|||
Average month-end balance
|
212,500
|
|
|
228,066
|
|
|
268,411
|
|
|||
Weighted average interest rate for the year
|
2.93
|
%
|
|
2.94
|
%
|
|
2.96
|
%
|
|
Payments Due By Period
|
||||||||||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||
|
Total
|
|
Less Than
One Year
|
|
One -
Three Years
|
|
Three -
Five Years
|
|
More Than
Five Years
|
||||||||||
Contractual obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt obligations
|
$
|
185,000
|
|
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
15,000
|
|
|
$
|
120,000
|
|
Operating lease obligations
|
1,562
|
|
|
469
|
|
|
694
|
|
|
398
|
|
|
1
|
|
|||||
Total contractual obligations:
|
$
|
186,562
|
|
|
$
|
25,469
|
|
|
$
|
25,694
|
|
|
$
|
15,398
|
|
|
$
|
120,001
|
|
Other commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Lines of credit
|
$
|
424,165
|
|
|
$
|
288,487
|
|
|
$
|
101,560
|
|
|
$
|
21,605
|
|
|
$
|
12,513
|
|
Standby letters of credit
|
8,569
|
|
|
8,569
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total other commitments
|
$
|
432,734
|
|
|
$
|
297,056
|
|
|
$
|
101,560
|
|
|
$
|
21,605
|
|
|
$
|
12,513
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Repricing
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Maturities
|
|
Days
|
|
More Than
|
|
|
||||||||||||||||||||
|
Immediately
|
|
2-30
|
|
31-90
|
|
91-180
|
|
181-365
|
|
One Year
|
|
Total
|
||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||||||||
Earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Excess Cash
|
$
|
213,673
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
213,673
|
|
Federal funds sold
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Investment securities
|
—
|
|
|
3,071
|
|
|
5,135
|
|
|
35,095
|
|
|
19,890
|
|
|
303,177
|
|
|
366,368
|
|
|||||||
Loans
|
10,919
|
|
|
225,178
|
|
|
57,890
|
|
|
98,057
|
|
|
243,868
|
|
|
2,012,526
|
|
|
2,648,438
|
|
|||||||
Total earning assets
|
224,592
|
|
|
228,249
|
|
|
63,025
|
|
|
133,152
|
|
|
263,758
|
|
|
2,315,703
|
|
|
3,228,479
|
|
|||||||
Sources of funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing checking and savings accounts
|
165,465
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,426,633
|
|
|
1,592,098
|
|
|||||||
Certificates of deposit
|
—
|
|
|
19,096
|
|
|
45,604
|
|
|
112,123
|
|
|
147,731
|
|
|
357,100
|
|
|
681,654
|
|
|||||||
FHLB borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,000
|
|
|
160,000
|
|
|
185,000
|
|
|||||||
Federal funds and repurchase agreements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
165,465
|
|
|
19,096
|
|
|
45,604
|
|
|
112,123
|
|
|
172,731
|
|
|
1,943,733
|
|
|
2,458,752
|
|
|||||||
Other sources, primarily noninterest-bearing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
763,949
|
|
|
763,949
|
|
|||||||
Total sources
|
165,465
|
|
|
19,096
|
|
|
45,604
|
|
|
112,123
|
|
|
172,731
|
|
|
2,707,682
|
|
|
3,222,701
|
|
|||||||
Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Rate Gap
|
$
|
59,127
|
|
|
$
|
209,153
|
|
|
$
|
17,421
|
|
|
$
|
21,029
|
|
|
$
|
91,027
|
|
|
$
|
(391,979
|
)
|
|
$
|
5,778
|
|
Cumulative Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Rate Gap at December 31, 2019
|
$
|
59,127
|
|
|
$
|
268,280
|
|
|
$
|
285,701
|
|
|
$
|
306,730
|
|
|
$
|
397,757
|
|
|
$
|
5,778
|
|
|
|
|
|
Gap Ratio
|
1.36
|
|
|
11.95
|
|
|
1.38
|
|
|
1.19
|
|
|
1.53
|
|
|
0.86
|
|
|
|
|
|||||||
Cumulative Gap Ratio
|
1.36
|
|
|
2.45
|
|
|
2.24
|
|
|
1.90
|
|
|
1.77
|
|
|
1.00
|
|
|
|
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|
Fair Value
|
||||||||||||||||
|
(Amounts In Thousands)
|
||||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans, fixed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance
|
$
|
422,029
|
|
|
$
|
160,434
|
|
|
$
|
250,725
|
|
|
$
|
205,525
|
|
|
$
|
321,253
|
|
|
$
|
183,680
|
|
|
$
|
1,543,646
|
|
|
$
|
1,329,731
|
|
Average interest rate
|
4.77
|
%
|
|
4.30
|
%
|
|
4.40
|
%
|
|
4.84
|
%
|
|
4.71
|
%
|
|
4.06
|
%
|
|
4.57
|
%
|
|
|
|
||||||||
Loans, variable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance
|
$
|
186,326
|
|
|
$
|
162,841
|
|
|
$
|
235,606
|
|
|
$
|
200,295
|
|
|
$
|
169,059
|
|
|
$
|
141,331
|
|
|
$
|
1,095,458
|
|
|
$
|
1,273,502
|
|
Average interest rate
|
5.11
|
%
|
|
4.19
|
%
|
|
4.12
|
%
|
|
4.30
|
%
|
|
4.48
|
%
|
|
4.35
|
%
|
|
4.42
|
%
|
|
|
|
||||||||
Investments (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance
|
$
|
74,254
|
|
|
$
|
47,118
|
|
|
$
|
52,019
|
|
|
$
|
50,593
|
|
|
$
|
48,829
|
|
|
$
|
93,555
|
|
|
$
|
366,368
|
|
|
$
|
366,368
|
|
Average interest rate
|
2.25
|
%
|
|
2.10
|
%
|
|
2.39
|
%
|
|
2.60
|
%
|
|
1.99
|
%
|
|
2.87
|
%
|
|
2.42
|
%
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liquid deposits (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,592,041
|
|
|
$
|
1,591,997
|
|
Average interest rate
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.82
|
%
|
|
|
|
||||||||
Deposits, certificates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance
|
$
|
324,554
|
|
|
$
|
124,527
|
|
|
$
|
90,009
|
|
|
$
|
130,252
|
|
|
$
|
12,312
|
|
|
$
|
—
|
|
|
$
|
681,654
|
|
|
$
|
695,221
|
|
Average interest rate
|
1.92
|
%
|
|
1.95
|
%
|
|
2.65
|
%
|
|
3.19
|
%
|
|
2.22
|
%
|
|
—
|
%
|
|
2.27
|
%
|
|
|
|
(1)
|
Includes all available-for-sale investments, federal funds and Federal Home Loan Bank stock.
|
(2)
|
Includes NOW and other demand, savings and money market funds.
|
Item 8.
|
Consolidated Financial Statements and Supplementary Data
|
ASSETS
|
2019
|
|
2018
|
||||
Cash and cash equivalents
|
$
|
241,965
|
|
|
$
|
43,305
|
|
Investment securities available for sale at fair value (amortized cost 2019 $351,069; 2018 $321,660) (Notes 1, 2 and 13)
|
355,303
|
|
|
318,926
|
|
||
Stock of Federal Home Loan Bank
|
11,065
|
|
|
12,172
|
|
||
Loans held for sale
|
8,400
|
|
|
1,984
|
|
||
Loans, net of allowance for loan losses (2019 $33,760; 2018 $37,810) (Notes 1, 3, and 12)
|
2,606,277
|
|
|
2,591,085
|
|
||
Property and equipment, net (Note 4)
|
37,146
|
|
|
37,051
|
|
||
Tax credit real estate
|
8,280
|
|
|
9,193
|
|
||
Accrued interest receivable
|
12,442
|
|
|
11,784
|
|
||
Deferred income taxes, net (Note 10)
|
8,018
|
|
|
10,869
|
|
||
Goodwill
|
2,500
|
|
|
2,500
|
|
||
Other assets
|
9,491
|
|
|
3,595
|
|
||
Total Assets
|
$
|
3,300,887
|
|
|
$
|
3,042,464
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
||
Noninterest-bearing deposits
|
$
|
387,612
|
|
|
$
|
372,152
|
|
Interest-bearing deposits (Note 6)
|
2,273,752
|
|
|
2,048,972
|
|
||
Total deposits
|
2,661,364
|
|
|
2,421,124
|
|
||
Federal Home Loan Bank borrowings (Note 7)
|
185,000
|
|
|
215,000
|
|
||
Accrued interest payable
|
2,474
|
|
|
1,812
|
|
||
Other liabilities
|
25,012
|
|
|
20,776
|
|
||
Total Liabilities
|
2,873,850
|
|
|
2,658,712
|
|
||
Commitments and Contingencies (Notes 9 and 15)
|
|
|
|
|
|
||
Redeemable Common Stock Held By Employee Stock
|
|
|
|
|
|
||
Ownership Plan (ESOP) (Note 9)
|
51,826
|
|
|
48,870
|
|
||
Stockholders' Equity (Note 11)
|
|
|
|
|
|
||
Common stock, no par value; authorized 20,000,000 shares; issued 2019 10,327,656 shares; 2018 10,325,191 shares
|
—
|
|
|
—
|
|
||
Paid in capital
|
55,943
|
|
|
52,122
|
|
||
Retained earnings
|
409,509
|
|
|
371,848
|
|
||
Accumulated other comprehensive gain (loss) (Note 8)
|
1,415
|
|
|
(3,250
|
)
|
||
Treasury stock at cost (2019 975,962 shares; 2018 988,750 shares)
|
(39,830
|
)
|
|
(36,968
|
)
|
||
Total Stockholders' Equity
|
427,037
|
|
|
383,752
|
|
||
Less maximum cash obligation related to ESOP shares (Note 9)
|
51,826
|
|
|
48,870
|
|
||
Total Stockholders' Equity Less Maximum Cash Obligations Related To ESOP Shares
|
375,211
|
|
|
334,882
|
|
||
Total Liabilities & Stockholders' Equity
|
$
|
3,300,887
|
|
|
$
|
3,042,464
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Loans, including fees
|
$
|
121,269
|
|
|
$
|
110,588
|
|
|
$
|
100,579
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|||
Taxable
|
3,239
|
|
|
2,759
|
|
|
1,709
|
|
|||
Nontaxable
|
3,844
|
|
|
3,511
|
|
|
3,231
|
|
|||
Federal funds sold
|
3,980
|
|
|
1,939
|
|
|
433
|
|
|||
Total interest income
|
132,332
|
|
|
118,797
|
|
|
105,952
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Deposits
|
28,540
|
|
|
19,531
|
|
|
9,742
|
|
|||
Other borrowings
|
—
|
|
|
—
|
|
|
184
|
|
|||
FHLB borrowings
|
6,333
|
|
|
6,792
|
|
|
8,046
|
|
|||
Total interest expense
|
34,873
|
|
|
26,323
|
|
|
17,972
|
|
|||
Net interest income
|
97,459
|
|
|
92,474
|
|
|
87,980
|
|
|||
Provision for loan losses (Note 3)
|
(2,880
|
)
|
|
8,497
|
|
|
1,688
|
|
|||
Net interest income after provision for loan losses
|
100,339
|
|
|
83,977
|
|
|
86,292
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
|
|
|||
Net gain on sale of loans
|
3,539
|
|
|
1,517
|
|
|
1,547
|
|
|||
Trust fees
|
9,579
|
|
|
10,007
|
|
|
8,043
|
|
|||
Service charges and fees
|
10,276
|
|
|
9,614
|
|
|
8,850
|
|
|||
Other noninterest income
|
1,426
|
|
|
2,680
|
|
|
2,378
|
|
|||
Loss on sale of investment securities
|
(28
|
)
|
|
—
|
|
|
—
|
|
|||
|
24,792
|
|
|
23,818
|
|
|
20,818
|
|
|||
Noninterest expenses:
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
36,709
|
|
|
34,981
|
|
|
33,197
|
|
|||
Occupancy
|
4,336
|
|
|
4,374
|
|
|
4,189
|
|
|||
Furniture and equipment
|
6,795
|
|
|
5,741
|
|
|
5,580
|
|
|||
Office supplies and postage
|
1,841
|
|
|
1,778
|
|
|
1,961
|
|
|||
Advertising and business development
|
2,595
|
|
|
2,513
|
|
|
2,764
|
|
|||
Outside services
|
10,360
|
|
|
10,076
|
|
|
8,303
|
|
|||
FDIC insurance assessment
|
194
|
|
|
856
|
|
|
845
|
|
|||
Other noninterest expenses
|
4,434
|
|
|
1,804
|
|
|
2,673
|
|
|||
|
67,264
|
|
|
62,123
|
|
|
59,512
|
|
|||
Income before income taxes
|
57,867
|
|
|
45,672
|
|
|
47,598
|
|
|||
Income taxes (Note 10)
|
12,549
|
|
|
8,905
|
|
|
19,537
|
|
|||
Net income
|
$
|
45,318
|
|
|
$
|
36,767
|
|
|
$
|
28,061
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
4.85
|
|
|
$
|
3.93
|
|
|
$
|
3.01
|
|
Diluted
|
4.85
|
|
|
3.92
|
|
|
3.01
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
45,318
|
|
|
$
|
36,767
|
|
|
$
|
28,061
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|||
Securities:
|
|
|
|
|
|
|
|
|
|||
Net change in unrealized gain (loss) on securities available for sale
|
6,940
|
|
|
(1,593
|
)
|
|
361
|
|
|||
Reclassification adjustment for net losses realized in net income
|
28
|
|
|
—
|
|
|
—
|
|
|||
Income taxes
|
(1,738
|
)
|
|
397
|
|
|
(139
|
)
|
|||
Other comprehensive income (loss) on securities available for sale
|
5,230
|
|
|
(1,196
|
)
|
|
222
|
|
|||
Derivatives used in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|||
Net change in unrealized (loss) gain on derivatives
|
(753
|
)
|
|
1,223
|
|
|
1,119
|
|
|||
Income taxes
|
188
|
|
|
(305
|
)
|
|
(428
|
)
|
|||
Other comprehensive (loss) income on cash flow hedges
|
(565
|
)
|
|
918
|
|
|
691
|
|
|||
Other comprehensive income (loss), net of tax
|
4,665
|
|
|
(278
|
)
|
|
913
|
|
|||
Comprehensive income
|
$
|
49,983
|
|
|
$
|
36,489
|
|
|
$
|
28,974
|
|
|
Paid In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Maximum
Cash
Obligation
Related
To ESOP
Shares
|
|
Total
|
||||||||||||
Balance, December 31, 2016
|
$
|
44,606
|
|
|
$
|
319,982
|
|
|
$
|
(3,359
|
)
|
|
$
|
(31,178
|
)
|
|
$
|
(40,781
|
)
|
|
$
|
289,270
|
|
Issuance of 114,935 shares of common stock
|
4,851
|
|
|
—
|
|
|
—
|
|
|
595
|
|
|
—
|
|
|
5,446
|
|
||||||
Issuance of 6,892 shares of common stock under the employee stock purchase plan
|
325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325
|
|
||||||
Unearned restricted stock compensation
|
(707
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(707
|
)
|
||||||
Forfeiture of 3,934 shares of common stock
|
(156
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(156
|
)
|
||||||
Share-based compensation
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Change related to ESOP shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,527
|
)
|
|
(2,527
|
)
|
||||||
Net income
|
—
|
|
|
28,061
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,061
|
|
||||||
Cash dividends ($0.70 per share)
|
—
|
|
|
(6,485
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,485
|
)
|
||||||
Purchase of 46,966 shares of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,435
|
)
|
|
—
|
|
|
(2,435
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
913
|
|
|
—
|
|
|
—
|
|
|
913
|
|
||||||
Balance, December 31, 2017
|
$
|
48,930
|
|
|
$
|
341,558
|
|
|
$
|
(2,446
|
)
|
|
$
|
(33,018
|
)
|
|
$
|
(43,308
|
)
|
|
$
|
311,716
|
|
Issuance of 113,373 shares of common stock
|
3,386
|
|
|
—
|
|
|
—
|
|
|
2,834
|
|
|
—
|
|
|
6,220
|
|
||||||
Issuance of 8,172 shares of common stock under the employee stock purchase plan
|
421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
421
|
|
||||||
Unearned restricted stock compensation
|
(463
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(463
|
)
|
||||||
Forfeiture of 3,296 shares of common stock
|
(152
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(152
|
)
|
||||||
Change related to ESOP shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,562
|
)
|
|
(5,562
|
)
|
||||||
Net income
|
—
|
|
|
36,767
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,767
|
|
||||||
Cash dividends ($0.75 per share)
|
—
|
|
|
(7,003
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,003
|
)
|
||||||
Reclassification of stranded tax effects due to the Tax Cuts and Jobs Act
|
—
|
|
|
526
|
|
|
(526
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Purchase of 116,962 shares of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,784
|
)
|
|
—
|
|
|
(6,784
|
)
|
||||||
Other comprehensive (loss)
|
—
|
|
|
—
|
|
|
(278
|
)
|
|
—
|
|
|
—
|
|
|
(278
|
)
|
||||||
Balance, December 31, 2018
|
$
|
52,122
|
|
|
$
|
371,848
|
|
|
$
|
(3,250
|
)
|
|
$
|
(36,968
|
)
|
|
$
|
(48,870
|
)
|
|
$
|
334,882
|
|
Issuance of 101,912 shares of common stock
|
3,549
|
|
|
—
|
|
|
—
|
|
|
2,672
|
|
|
—
|
|
|
6,221
|
|
||||||
Issuance of 7,720 shares of common stock under the employee stock purchase plan
|
434
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
434
|
|
||||||
Unearned restricted stock compensation
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
||||||
Forfeiture of 5,255 shares of common stock
|
(262
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(262
|
)
|
||||||
Share-based compensation
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||
Change related to ESOP shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,956
|
)
|
|
(2,956
|
)
|
||||||
Net income
|
—
|
|
|
45,318
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,318
|
|
||||||
Cash dividends ($0.82 per share)
|
—
|
|
|
(7,657
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,657
|
)
|
||||||
Purchase of 89,124 shares of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,534
|
)
|
|
—
|
|
|
(5,534
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
4,665
|
|
|
—
|
|
|
—
|
|
|
4,665
|
|
||||||
Balance, December 31, 2019
|
$
|
55,943
|
|
|
$
|
409,509
|
|
|
$
|
1,415
|
|
|
$
|
(39,830
|
)
|
|
$
|
(51,826
|
)
|
|
$
|
375,211
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows from Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
45,318
|
|
|
$
|
36,767
|
|
|
$
|
28,061
|
|
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation
|
3,072
|
|
|
3,012
|
|
|
2,856
|
|
|||
Provision for loan losses
|
(2,880
|
)
|
|
8,497
|
|
|
1,688
|
|
|||
Net loss on sale of investment securities available for sale
|
28
|
|
|
—
|
|
|
—
|
|
|||
Share-based compensation
|
14
|
|
|
—
|
|
|
11
|
|
|||
Compensation expensed through issuance of common stock
|
1,133
|
|
|
1,466
|
|
|
1,446
|
|
|||
Forfeiture of common stock
|
(262
|
)
|
|
(152
|
)
|
|
(156
|
)
|
|||
Provision for deferred income taxes
|
1,301
|
|
|
(1,971
|
)
|
|
3,238
|
|
|||
Net gain on sale of other real estate owned and other repossessed assets
|
(94
|
)
|
|
(18
|
)
|
|
(60
|
)
|
|||
Increase in accrued interest receivable
|
(658
|
)
|
|
(1,012
|
)
|
|
(1,651
|
)
|
|||
Amortization of premium on investment securities, net
|
441
|
|
|
480
|
|
|
586
|
|
|||
(Increase) decrease in other assets
|
(2,681
|
)
|
|
(1,086
|
)
|
|
972
|
|
|||
Amortization of operating lease right of use assets
|
354
|
|
|
—
|
|
|
—
|
|
|||
Increase (decrease) in accrued interest and other liabilities
|
650
|
|
|
(1,423
|
)
|
|
4,263
|
|
|||
Loans originated for sale
|
(299,223
|
)
|
|
(136,746
|
)
|
|
(150,264
|
)
|
|||
Proceeds on sales of loans
|
296,346
|
|
|
141,441
|
|
|
156,455
|
|
|||
Net gain on sales of loans
|
(3,539
|
)
|
|
(1,517
|
)
|
|
(1,547
|
)
|
|||
Net cash and cash equivalents provided by operating activities
|
39,320
|
|
|
47,738
|
|
|
45,898
|
|
|||
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
|
|||
Proceeds from maturities of investment securities available for sale
|
63,301
|
|
|
57,284
|
|
|
65,339
|
|
|||
Proceeds from sale of investment securities available for sale
|
12,467
|
|
|
—
|
|
|
—
|
|
|||
Purchases of investment securities available for sale
|
(104,539
|
)
|
|
(90,295
|
)
|
|
(85,772
|
)
|
|||
Loans made to customers, net of collections
|
(13,024
|
)
|
|
(168,567
|
)
|
|
(181,631
|
)
|
|||
Proceeds on sale of other real estate owned and other repossessed assets
|
818
|
|
|
168
|
|
|
520
|
|
|||
Purchases of property and equipment
|
(3,167
|
)
|
|
(2,206
|
)
|
|
(2,854
|
)
|
|||
Net changes from tax credit real estate investment
|
913
|
|
|
883
|
|
|
487
|
|
|||
Net cash and cash equivalents used in investing activities
|
(43,231
|
)
|
|
(202,733
|
)
|
|
(203,911
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows from Financing Activities
|
|
|
|
|
|
||||||
Net increase in deposits
|
240,240
|
|
|
132,559
|
|
|
252,253
|
|
|||
Net decrease in short-term borrowings
|
—
|
|
|
—
|
|
|
(33,489
|
)
|
|||
Net (decrease) increase in FHLB borrowings
|
(30,000
|
)
|
|
(80,000
|
)
|
|
60,000
|
|
|||
Borrowings from FRB
|
1
|
|
|
1
|
|
|
820
|
|
|||
Payments on FRB borrowings
|
(1
|
)
|
|
(1
|
)
|
|
(820
|
)
|
|||
Issuance of common stock, net of costs
|
5,026
|
|
|
4,713
|
|
|
3,762
|
|
|||
Stock options exercised
|
62
|
|
|
41
|
|
|
238
|
|
|||
Purchase of treasury stock
|
(5,534
|
)
|
|
(6,784
|
)
|
|
(2,435
|
)
|
|||
Proceeds from the issuance of common stock through the employee stock purchase plan
|
434
|
|
|
421
|
|
|
325
|
|
|||
Dividends paid
|
(7,657
|
)
|
|
(7,003
|
)
|
|
(6,485
|
)
|
|||
Net cash and cash equivalents provided by financing activities
|
202,571
|
|
|
43,947
|
|
|
274,169
|
|
|||
|
|
|
|
|
|
||||||
Increase (decrease) in cash and cash equivalents
|
198,660
|
|
|
(111,048
|
)
|
|
116,156
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|||
Beginning of year
|
43,305
|
|
|
154,353
|
|
|
38,197
|
|
|||
End of year
|
$
|
241,965
|
|
|
$
|
43,305
|
|
|
$
|
154,353
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures
|
|
|
|
|
|
|
|
|
|||
Cash payments for:
|
|
|
|
|
|
|
|
|
|||
Interest paid to depositors
|
$
|
27,878
|
|
|
$
|
19,009
|
|
|
$
|
9,436
|
|
Interest paid on other obligations
|
6,333
|
|
|
6,792
|
|
|
8,230
|
|
|||
Income taxes paid
|
10,784
|
|
|
9,924
|
|
|
14,488
|
|
|||
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|||
Increase in maximum cash obligation related to ESOP shares
|
$
|
2,956
|
|
|
$
|
5,562
|
|
|
$
|
2,527
|
|
Transfers to other real estate owned
|
712
|
|
|
150
|
|
|
223
|
|
|||
Sale and financing of other real estate owned
|
97
|
|
|
96
|
|
|
433
|
|
|||
Right-of-use assets obtained in exchange for operating lease obligations
|
3,581
|
|
|
—
|
|
|
—
|
|
Note 1.
|
Nature of Activities and Significant Accounting Policies
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands, except share and per share data)
|
||||||||||
Computation of weighted average number of basic and diluted shares:
|
|
|
|
|
|
||||||
Common shares outstanding at the beginning of the year
|
9,336,441
|
|
|
9,335,154
|
|
|
9,264,227
|
|
|||
Weighted average number of net shares issued (redeemed)
|
19,304
|
|
|
31,160
|
|
|
65,776
|
|
|||
Weighted average shares outstanding (basic)
|
9,355,745
|
|
|
9,366,314
|
|
|
9,330,003
|
|
|||
Weighted average of potential dilutive shares attributable to stock options granted, computed under the treasury stock method
|
4,035
|
|
|
4,027
|
|
|
4,632
|
|
|||
Weighted average number of shares (diluted)
|
9,359,780
|
|
|
9,370,341
|
|
|
9,334,635
|
|
|||
Net income
|
$
|
45,318
|
|
|
$
|
36,767
|
|
|
$
|
28,061
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
4.85
|
|
|
$
|
3.93
|
|
|
$
|
3.01
|
|
Diluted
|
$
|
4.85
|
|
|
$
|
3.92
|
|
|
$
|
3.01
|
|
•
|
An initial forecast period of one year for all portfolio segments and off-balance-sheet credit exposures. This period reflects management’s expectation of losses based on forward-looking economic scenarios over that time.
|
•
|
A historical loss forecast period covering the remaining contractual life, adjusted for prepayments, by portfolio segment based on the change in key historical economic variables.
|
•
|
A reversion period of up to 3 years connecting the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date.
|
•
|
We will primarily utilize discounted cash flow (DCF) methods to estimate credit losses by portfolio segment. The DCF methods obtain estimated life-time credit losses using the conceptual components described above.
|
Note 2.
|
Investment Securities
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
128,585
|
|
|
36.19
|
%
|
|
$
|
83,155
|
|
|
26.07
|
%
|
Other securities (FHLB, FHLMC and FNMA)
|
15,229
|
|
|
4.29
|
%
|
|
34,871
|
|
|
10.93
|
%
|
||
State and political subdivisions
|
211,489
|
|
|
59.52
|
%
|
|
200,900
|
|
|
63.00
|
%
|
||
Total securities available for sale
|
$
|
355,303
|
|
|
100.00
|
%
|
|
$
|
318,926
|
|
|
100.00
|
%
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Estimated
Fair
Value
|
||||||||
December 31, 2019:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
127,096
|
|
|
$
|
1,626
|
|
|
$
|
(137
|
)
|
|
$
|
128,585
|
|
Other securities (FHLB, FHLMC and FNMA)
|
15,287
|
|
|
—
|
|
|
(58
|
)
|
|
15,229
|
|
||||
State and political subdivisions
|
208,686
|
|
|
2,938
|
|
|
(135
|
)
|
|
211,489
|
|
||||
Total
|
$
|
351,069
|
|
|
$
|
4,564
|
|
|
$
|
(330
|
)
|
|
$
|
355,303
|
|
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
|
$
|
63,191
|
|
|
$
|
63,189
|
|
Due after one year through five years
|
196,456
|
|
|
198,559
|
|
||
Due after five years through ten years
|
81,854
|
|
|
84,025
|
|
||
Due over ten years
|
9,568
|
|
|
9,530
|
|
||
Total
|
$
|
351,069
|
|
|
$
|
355,303
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Sales proceeds
|
$
|
12,467
|
|
|
$
|
—
|
|
Gross realized gains
|
24
|
|
|
—
|
|
||
Gross realized losses
|
52
|
|
|
—
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Description
|
#
|
|
|
Fair Value
|
|
Unrealized Loss
|
|
%
|
|
#
|
|
|
Fair Value
|
|
Unrealized Loss
|
|
%
|
|
#
|
|
|
Fair Value
|
|
Unrealized Loss
|
|
%
|
|||||||||||||||
of Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury
|
11
|
|
|
$
|
27,932
|
|
|
$
|
(136
|
)
|
|
0.49
|
%
|
|
1
|
|
|
$
|
2,495
|
|
|
$
|
(1
|
)
|
|
0.04
|
%
|
|
12
|
|
|
$
|
30,427
|
|
|
$
|
(137
|
)
|
|
0.45
|
%
|
Other securities (FHLB, FHLMC and FNMA)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
6
|
|
|
15,229
|
|
|
(58
|
)
|
|
0.38
|
%
|
|
6
|
|
|
15,229
|
|
|
(58
|
)
|
|
0.38
|
%
|
||||||
State and political subdivisions
|
66
|
|
|
17,881
|
|
|
(119
|
)
|
|
0.67
|
%
|
|
20
|
|
|
3,825
|
|
|
(16
|
)
|
|
0.42
|
%
|
|
86
|
|
|
21,706
|
|
|
(135
|
)
|
|
0.62
|
%
|
||||||
Total temporarily impaired securities
|
77
|
|
|
$
|
45,813
|
|
|
$
|
(255
|
)
|
|
0.56
|
%
|
|
27
|
|
|
$
|
21,549
|
|
|
$
|
(75
|
)
|
|
0.35
|
%
|
|
104
|
|
|
$
|
67,362
|
|
|
$
|
(330
|
)
|
|
0.49
|
%
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Description
|
#
|
|
|
Fair Value
|
|
Unrealized Loss
|
|
%
|
|
#
|
|
|
Fair Value
|
|
Unrealized Loss
|
|
%
|
|
#
|
|
|
Fair Value
|
|
Unrealized Loss
|
|
%
|
|||||||||||||||
of Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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 3.
|
Loans
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
Agricultural
|
$
|
91,317
|
|
|
$
|
92,673
|
|
Commercial and financial
|
221,323
|
|
|
229,501
|
|
||
Real estate:
|
|
|
|
|
|||
Construction, 1 to 4 family residential
|
80,209
|
|
|
72,279
|
|
||
Construction, land development and commercial
|
108,410
|
|
|
113,807
|
|
||
Mortgage, farmland
|
242,730
|
|
|
236,454
|
|
||
Mortgage, 1 to 4 family first liens
|
910,742
|
|
|
912,059
|
|
||
Mortgage, 1 to 4 family junior liens
|
149,227
|
|
|
152,625
|
|
||
Mortgage, multi-family
|
350,761
|
|
|
352,434
|
|
||
Mortgage, commercial
|
402,181
|
|
|
383,314
|
|
||
Loans to individuals
|
32,308
|
|
|
30,072
|
|
||
Obligations of state and political subdivisions
|
49,896
|
|
|
52,725
|
|
||
|
2,639,104
|
|
|
2,627,943
|
|
||
Net unamortized fees and costs
|
933
|
|
|
952
|
|
||
|
2,640,037
|
|
|
2,628,895
|
|
||
Less allowance for loan losses
|
33,760
|
|
|
37,810
|
|
||
|
$
|
2,606,277
|
|
|
$
|
2,591,085
|
|
|
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)
|
||||||||||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,789
|
|
|
$
|
5,826
|
|
|
$
|
3,292
|
|
|
$
|
3,972
|
|
|
$
|
12,516
|
|
|
$
|
8,165
|
|
|
$
|
1,250
|
|
|
$
|
37,810
|
|
Charge-offs
|
(266
|
)
|
|
(981
|
)
|
|
(45
|
)
|
|
(6
|
)
|
|
(896
|
)
|
|
(341
|
)
|
|
(434
|
)
|
|
(2,969
|
)
|
||||||||
Recoveries
|
95
|
|
|
646
|
|
|
8
|
|
|
5
|
|
|
700
|
|
|
180
|
|
|
165
|
|
|
1,799
|
|
||||||||
Provision
|
(218
|
)
|
|
(503
|
)
|
|
(656
|
)
|
|
(21
|
)
|
|
(1,682
|
)
|
|
(145
|
)
|
|
345
|
|
|
(2,880
|
)
|
||||||||
Ending balance
|
$
|
2,400
|
|
|
$
|
4,988
|
|
|
$
|
2,599
|
|
|
$
|
3,950
|
|
|
$
|
10,638
|
|
|
$
|
7,859
|
|
|
$
|
1,326
|
|
|
$
|
33,760
|
|
Ending balance, individually evaluated for impairment
|
$
|
87
|
|
|
$
|
792
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
111
|
|
|
$
|
1
|
|
|
$
|
93
|
|
|
$
|
1,084
|
|
Ending balance, collectively evaluated for impairment
|
$
|
2,313
|
|
|
$
|
4,196
|
|
|
$
|
2,599
|
|
|
$
|
3,950
|
|
|
$
|
10,527
|
|
|
$
|
7,858
|
|
|
$
|
1,233
|
|
|
$
|
32,676
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
$
|
91,317
|
|
|
$
|
221,323
|
|
|
$
|
188,619
|
|
|
$
|
242,730
|
|
|
$
|
1,059,969
|
|
|
$
|
752,942
|
|
|
$
|
82,204
|
|
|
$
|
2,639,104
|
|
Ending balance, individually evaluated for impairment
|
$
|
1,730
|
|
|
$
|
2,742
|
|
|
$
|
421
|
|
|
$
|
4,081
|
|
|
$
|
8,670
|
|
|
$
|
3,188
|
|
|
$
|
93
|
|
|
$
|
20,925
|
|
Ending balance, collectively evaluated for impairment
|
$
|
89,587
|
|
|
$
|
218,581
|
|
|
$
|
188,198
|
|
|
$
|
238,649
|
|
|
$
|
1,051,299
|
|
|
$
|
749,754
|
|
|
$
|
82,111
|
|
|
$
|
2,618,179
|
|
|
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)
|
||||||||||||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,294
|
|
|
$
|
4,837
|
|
|
$
|
2,989
|
|
|
$
|
3,669
|
|
|
$
|
8,668
|
|
|
$
|
5,700
|
|
|
$
|
1,243
|
|
|
$
|
29,400
|
|
Charge-offs
|
(95
|
)
|
|
(585
|
)
|
|
—
|
|
|
—
|
|
|
(830
|
)
|
|
(251
|
)
|
|
(561
|
)
|
|
(2,322
|
)
|
||||||||
Recoveries
|
119
|
|
|
1,057
|
|
|
148
|
|
|
30
|
|
|
612
|
|
|
107
|
|
|
162
|
|
|
2,235
|
|
||||||||
Provision
|
471
|
|
|
517
|
|
|
155
|
|
|
273
|
|
|
4,066
|
|
|
2,609
|
|
|
406
|
|
|
8,497
|
|
||||||||
Ending balance
|
$
|
2,789
|
|
|
$
|
5,826
|
|
|
$
|
3,292
|
|
|
$
|
3,972
|
|
|
$
|
12,516
|
|
|
$
|
8,165
|
|
|
$
|
1,250
|
|
|
$
|
37,810
|
|
Ending balance, individually evaluated for impairment
|
$
|
479
|
|
|
$
|
1,189
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
72
|
|
|
$
|
306
|
|
|
$
|
64
|
|
|
$
|
2,114
|
|
Ending balance, collectively evaluated for impairment
|
$
|
2,310
|
|
|
$
|
4,637
|
|
|
$
|
3,288
|
|
|
$
|
3,972
|
|
|
$
|
12,444
|
|
|
$
|
7,859
|
|
|
$
|
1,186
|
|
|
$
|
35,696
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
$
|
92,673
|
|
|
$
|
229,501
|
|
|
$
|
186,086
|
|
|
$
|
236,454
|
|
|
$
|
1,064,684
|
|
|
$
|
735,748
|
|
|
$
|
82,797
|
|
|
$
|
2,627,943
|
|
Ending balance, individually evaluated for impairment
|
$
|
2,460
|
|
|
$
|
4,162
|
|
|
$
|
1,137
|
|
|
$
|
3,612
|
|
|
$
|
7,012
|
|
|
$
|
9,538
|
|
|
$
|
64
|
|
|
$
|
27,985
|
|
Ending balance, collectively evaluated for impairment
|
$
|
90,213
|
|
|
$
|
225,339
|
|
|
$
|
184,949
|
|
|
$
|
232,842
|
|
|
$
|
1,057,672
|
|
|
$
|
726,210
|
|
|
$
|
82,733
|
|
|
$
|
2,599,958
|
|
|
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)
|
||||||||||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,947
|
|
|
$
|
4,531
|
|
|
$
|
2,890
|
|
|
$
|
3,417
|
|
|
$
|
7,677
|
|
|
$
|
4,045
|
|
|
$
|
1,023
|
|
|
$
|
26,530
|
|
Charge-offs
|
(167
|
)
|
|
(583
|
)
|
|
(114
|
)
|
|
(3
|
)
|
|
(553
|
)
|
|
(130
|
)
|
|
(554
|
)
|
|
(2,104
|
)
|
||||||||
Recoveries
|
146
|
|
|
1,183
|
|
|
662
|
|
|
—
|
|
|
661
|
|
|
376
|
|
|
258
|
|
|
3,286
|
|
||||||||
Provision
|
(632
|
)
|
|
(294
|
)
|
|
(449
|
)
|
|
255
|
|
|
883
|
|
|
1,409
|
|
|
516
|
|
|
1,688
|
|
||||||||
Ending balance
|
$
|
2,294
|
|
|
$
|
4,837
|
|
|
$
|
2,989
|
|
|
$
|
3,669
|
|
|
$
|
8,668
|
|
|
$
|
5,700
|
|
|
$
|
1,243
|
|
|
$
|
29,400
|
|
Ending balance, individually evaluated for impairment
|
$
|
133
|
|
|
$
|
1,018
|
|
|
$
|
39
|
|
|
$
|
238
|
|
|
$
|
66
|
|
|
$
|
482
|
|
|
$
|
190
|
|
|
$
|
2,166
|
|
Ending balance, collectively evaluated for impairment
|
$
|
2,161
|
|
|
$
|
3,819
|
|
|
$
|
2,950
|
|
|
$
|
3,431
|
|
|
$
|
8,602
|
|
|
$
|
5,218
|
|
|
$
|
1,053
|
|
|
$
|
27,234
|
|
Loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
$
|
88,580
|
|
|
$
|
218,632
|
|
|
$
|
179,333
|
|
|
$
|
215,286
|
|
|
$
|
975,791
|
|
|
$
|
698,006
|
|
|
$
|
84,043
|
|
|
$
|
2,459,671
|
|
Ending balance, individually evaluated for impairment
|
$
|
4,916
|
|
|
$
|
2,768
|
|
|
$
|
957
|
|
|
$
|
7,962
|
|
|
$
|
6,654
|
|
|
$
|
8,040
|
|
|
$
|
190
|
|
|
$
|
31,487
|
|
Ending balance, collectively evaluated for impairment
|
$
|
83,664
|
|
|
$
|
215,864
|
|
|
$
|
178,376
|
|
|
$
|
207,324
|
|
|
$
|
969,137
|
|
|
$
|
689,966
|
|
|
$
|
83,853
|
|
|
$
|
2,428,184
|
|
|
Agricultural
|
|
Commercial
and Financial
|
|
Real Estate:
Construction, 1 to 4
family residential
|
|
Real Estate:
Construction, land
development and commercial
|
||||||||
|
(Amounts In Thousands)
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
3,594
|
|
|
$
|
3,461
|
|
|
$
|
260
|
|
|
$
|
190
|
|
Good
|
12,380
|
|
|
47,843
|
|
|
8,868
|
|
|
23,217
|
|
||||
Satisfactory
|
43,308
|
|
|
117,114
|
|
|
51,093
|
|
|
47,987
|
|
||||
Monitor
|
24,857
|
|
|
44,543
|
|
|
17,505
|
|
|
29,009
|
|
||||
Special Mention
|
3,110
|
|
|
5,157
|
|
|
2,483
|
|
|
7,428
|
|
||||
Substandard
|
4,068
|
|
|
3,205
|
|
|
—
|
|
|
579
|
|
||||
Total
|
$
|
91,317
|
|
|
$
|
221,323
|
|
|
$
|
80,209
|
|
|
$
|
108,410
|
|
|
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
|
||||||||
2019
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
3,630
|
|
|
$
|
3,209
|
|
|
$
|
261
|
|
|
$
|
18,955
|
|
Good
|
40,118
|
|
|
32,474
|
|
|
4,233
|
|
|
47,871
|
|
||||
Satisfactory
|
134,738
|
|
|
751,215
|
|
|
136,079
|
|
|
189,391
|
|
||||
Monitor
|
53,147
|
|
|
96,353
|
|
|
5,473
|
|
|
60,965
|
|
||||
Special Mention
|
3,033
|
|
|
11,167
|
|
|
1,469
|
|
|
27,559
|
|
||||
Substandard
|
8,064
|
|
|
16,324
|
|
|
1,712
|
|
|
6,020
|
|
||||
Total
|
$
|
242,730
|
|
|
$
|
910,742
|
|
|
$
|
149,227
|
|
|
$
|
350,761
|
|
|
Real Estate:
Mortgage,
commercial
|
|
Loans to
individuals
|
|
Obligations of state
and political
subdivisions
|
|
Total
|
||||||||
2019
|
|
|
|
|
|
|
|
||||||||
Grade:
|
|
|
|
|
|
|
|
||||||||
Excellent
|
$
|
27,017
|
|
|
$
|
—
|
|
|
$
|
7,444
|
|
|
$
|
68,021
|
|
Good
|
79,467
|
|
|
221
|
|
|
14,465
|
|
|
311,157
|
|
||||
Satisfactory
|
206,196
|
|
|
31,385
|
|
|
20,274
|
|
|
1,728,780
|
|
||||
Monitor
|
81,381
|
|
|
437
|
|
|
7,323
|
|
|
420,993
|
|
||||
Special Mention
|
4,802
|
|
|
212
|
|
|
390
|
|
|
66,810
|
|
||||
Substandard
|
3,318
|
|
|
53
|
|
|
—
|
|
|
43,343
|
|
||||
Total
|
$
|
402,181
|
|
|
$
|
32,308
|
|
|
$
|
49,896
|
|
|
$
|
2,639,104
|
|
|
Agricultural
|
|
Commercial
and Financial
|
|
Real Estate:
Construction, 1 to 4
family residential
|
|
Real Estate:
Construction, land
development and commercial
|
||||||||
|
(Amounts In Thousands)
|
||||||||||||||
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
|
||||||||
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
|
||||||||
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)
|
||||||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agricultural
|
$
|
163
|
|
|
$
|
275
|
|
|
$
|
122
|
|
|
$
|
560
|
|
|
$
|
90,757
|
|
|
$
|
91,317
|
|
|
$
|
48
|
|
Commercial and financial
|
1,076
|
|
|
229
|
|
|
101
|
|
|
1,406
|
|
|
219,917
|
|
|
221,323
|
|
|
65
|
|
|||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction, 1 to 4 family residential
|
635
|
|
|
—
|
|
|
—
|
|
|
635
|
|
|
79,574
|
|
|
80,209
|
|
|
—
|
|
|||||||
Construction, land development and commercial
|
215
|
|
|
101
|
|
|
—
|
|
|
316
|
|
|
108,094
|
|
|
108,410
|
|
|
—
|
|
|||||||
Mortgage, farmland
|
736
|
|
|
—
|
|
|
610
|
|
|
1,346
|
|
|
241,384
|
|
|
242,730
|
|
|
—
|
|
|||||||
Mortgage, 1 to 4 family first liens
|
5,026
|
|
|
3,100
|
|
|
4,149
|
|
|
12,275
|
|
|
898,467
|
|
|
910,742
|
|
|
354
|
|
|||||||
Mortgage, 1 to 4 family junior liens
|
813
|
|
|
126
|
|
|
233
|
|
|
1,172
|
|
|
148,055
|
|
|
149,227
|
|
|
139
|
|
|||||||
Mortgage, multi-family
|
—
|
|
|
97
|
|
|
—
|
|
|
97
|
|
|
350,664
|
|
|
350,761
|
|
|
—
|
|
|||||||
Mortgage, commercial
|
321
|
|
|
489
|
|
|
—
|
|
|
810
|
|
|
401,371
|
|
|
402,181
|
|
|
—
|
|
|||||||
Loans to individuals
|
226
|
|
|
55
|
|
|
15
|
|
|
296
|
|
|
32,012
|
|
|
32,308
|
|
|
—
|
|
|||||||
Obligations of state and political subdivisions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,896
|
|
|
49,896
|
|
|
—
|
|
|||||||
|
$
|
9,211
|
|
|
$
|
4,472
|
|
|
$
|
5,230
|
|
|
$
|
18,913
|
|
|
$
|
2,620,191
|
|
|
$
|
2,639,104
|
|
|
$
|
606
|
|
|
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)
|
||||||||||||||||||||||||||
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
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Nonaccrual
loans (1)
|
|
Accruing loans
past due 90
days or more
|
|
TDR
loans
|
|
Nonaccrual
loans (1)
|
|
Accruing loans
past due 90
days or more
|
|
TDR
loans
|
||||||||||||
|
(Amounts In Thousands)
|
|
(Amounts In Thousands)
|
||||||||||||||||||||
Agricultural
|
$
|
1,192
|
|
|
$
|
48
|
|
|
$
|
404
|
|
|
$
|
1,338
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Commercial and financial
|
679
|
|
|
65
|
|
|
1,934
|
|
|
1,476
|
|
|
—
|
|
|
2,686
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
212
|
|
|
—
|
|
||||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
320
|
|
|
—
|
|
|
—
|
|
|
328
|
|
||||||
Mortgage, farmland
|
1,369
|
|
|
—
|
|
|
2,712
|
|
|
1,062
|
|
|
—
|
|
|
3,301
|
|
||||||
Mortgage, 1 to 4 family first liens
|
6,558
|
|
|
354
|
|
|
1,626
|
|
|
5,799
|
|
|
158
|
|
|
1,143
|
|
||||||
Mortgage, 1 to 4 family junior liens
|
94
|
|
|
139
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||
Mortgage, multi-family
|
97
|
|
|
—
|
|
|
1,719
|
|
|
145
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage, commercial
|
779
|
|
|
—
|
|
|
593
|
|
|
1,009
|
|
|
—
|
|
|
937
|
|
||||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
$
|
10,768
|
|
|
$
|
606
|
|
|
$
|
9,308
|
|
|
$
|
10,829
|
|
|
$
|
370
|
|
|
$
|
8,539
|
|
(1)
|
There were $4.34 million and $4.84 million of TDR loans included within nonaccrual loans as of December 31, 2019 and 2018, respectively.
|
|
December 31, 2019
|
|||||||||
|
Number of
contracts
|
|
Recorded
investment
|
|
Commitments
outstanding
|
|||||
|
|
|
(Dollar Amounts In Thousands)
|
|||||||
Agricultural
|
9
|
|
|
$
|
1,552
|
|
|
$
|
3
|
|
Commercial and financial
|
16
|
|
|
2,641
|
|
|
95
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction, land development and commercial
|
2
|
|
|
320
|
|
|
—
|
|
||
Mortgage, farmland
|
8
|
|
|
4,021
|
|
|
—
|
|
||
Mortgage, 1 to 4 family first liens
|
16
|
|
|
2,083
|
|
|
—
|
|
||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, multi-family
|
2
|
|
|
1,719
|
|
|
—
|
|
||
Mortgage, commercial
|
7
|
|
|
1,373
|
|
|
—
|
|
||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
||
|
60
|
|
|
$
|
13,709
|
|
|
$
|
98
|
|
|
December 31, 2018
|
|||||||||
|
Number of
contracts
|
|
Recorded
investment
|
|
Commitments
outstanding
|
|||||
|
|
|
(Dollar Amounts In Thousands)
|
|||||||
Agricultural
|
5
|
|
|
$
|
1,316
|
|
|
$
|
91
|
|
Commercial and financial
|
13
|
|
|
3,867
|
|
|
75
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction, land development and commercial
|
2
|
|
|
328
|
|
|
—
|
|
||
Mortgage, farmland
|
8
|
|
|
4,291
|
|
|
—
|
|
||
Mortgage, 1 to 4 family first liens
|
16
|
|
|
1,710
|
|
|
—
|
|
||
Mortgage, 1 to 4 family junior liens
|
1
|
|
|
24
|
|
|
—
|
|
||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, commercial
|
9
|
|
|
1,839
|
|
|
—
|
|
||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
||
|
54
|
|
|
$
|
13,375
|
|
|
$
|
166
|
|
|
December 31, 2019
|
|||||||||
|
Number of
Contracts
|
|
Pre-modification
recorded
investment
|
|
Post-modification
recorded
investment
|
|||||
|
|
|
( Dollar Amounts In Thousands)
|
|||||||
Agricultural
|
4
|
|
|
$
|
574
|
|
|
$
|
574
|
|
Commercial and financial
|
5
|
|
|
503
|
|
|
503
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, farmland
|
1
|
|
|
620
|
|
|
620
|
|
||
Mortgage, 1 to 4 family first liens
|
3
|
|
|
705
|
|
|
705
|
|
||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, multi-family
|
2
|
|
|
1,719
|
|
|
1,719
|
|
||
Mortgage, commercial
|
—
|
|
|
—
|
|
|
—
|
|
||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
||
|
15
|
|
|
$
|
4,121
|
|
|
$
|
4,121
|
|
|
December 31, 2018
|
|||||||||
|
Number of
Contracts
|
|
Pre-modification
recorded
investment
|
|
Post-modification
recorded
investment
|
|||||
|
|
|
( Dollar Amounts In Thousands)
|
|||||||
Agricultural
|
1
|
|
|
$
|
163
|
|
|
$
|
163
|
|
Commercial and financial
|
6
|
|
|
2,294
|
|
|
2,294
|
|
||
Real estate:
|
|
|
|
|
|
|
|
|
||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
||
Construction, land development and commercial
|
1
|
|
|
218
|
|
|
218
|
|
||
Mortgage, farmland
|
2
|
|
|
4,944
|
|
|
4,944
|
|
||
Mortgage, 1 to 4 family first liens
|
6
|
|
|
627
|
|
|
627
|
|
||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
—
|
|
||
Mortgage, commercial
|
2
|
|
|
852
|
|
|
852
|
|
||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
||
|
18
|
|
|
$
|
9,098
|
|
|
$
|
9,098
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
1,596
|
|
|
$
|
2,157
|
|
|
$
|
—
|
|
|
$
|
1,785
|
|
|
$
|
37
|
|
Commercial and financial
|
1,340
|
|
|
2,220
|
|
|
—
|
|
|
1,617
|
|
|
64
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
101
|
|
|
144
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
320
|
|
|
336
|
|
|
—
|
|
|
324
|
|
|
18
|
|
|||||
Mortgage, farmland
|
4,081
|
|
|
4,613
|
|
|
—
|
|
|
4,144
|
|
|
157
|
|
|||||
Mortgage, 1 to 4 family first liens
|
7,157
|
|
|
9,015
|
|
|
—
|
|
|
6,822
|
|
|
51
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
1,816
|
|
|
1,930
|
|
|
—
|
|
|
1,873
|
|
|
83
|
|
|||||
Mortgage, commercial
|
1,302
|
|
|
1,852
|
|
|
—
|
|
|
1,364
|
|
|
26
|
|
|||||
Loans to individuals
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
17,713
|
|
|
$
|
22,527
|
|
|
$
|
—
|
|
|
$
|
18,035
|
|
|
$
|
436
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
134
|
|
|
$
|
134
|
|
|
$
|
87
|
|
|
$
|
287
|
|
|
$
|
17
|
|
Commercial and financial
|
1,402
|
|
|
1,539
|
|
|
792
|
|
|
1,510
|
|
|
83
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, 1 to 4 family first liens
|
1,280
|
|
|
1,501
|
|
|
64
|
|
|
1,318
|
|
|
29
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
233
|
|
|
233
|
|
|
47
|
|
|
239
|
|
|
6
|
|
|||||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, commercial
|
70
|
|
|
70
|
|
|
1
|
|
|
73
|
|
|
4
|
|
|||||
Loans to individuals
|
93
|
|
|
93
|
|
|
93
|
|
|
62
|
|
|
2
|
|
|||||
|
$
|
3,212
|
|
|
$
|
3,570
|
|
|
$
|
1,084
|
|
|
$
|
3,489
|
|
|
$
|
141
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
1,730
|
|
|
$
|
2,291
|
|
|
$
|
87
|
|
|
$
|
2,072
|
|
|
$
|
54
|
|
Commercial and financial
|
2,742
|
|
|
3,759
|
|
|
792
|
|
|
3,127
|
|
|
147
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
101
|
|
|
144
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
320
|
|
|
336
|
|
|
—
|
|
|
324
|
|
|
18
|
|
|||||
Mortgage, farmland
|
4,081
|
|
|
4,613
|
|
|
—
|
|
|
4,144
|
|
|
157
|
|
|||||
Mortgage, 1 to 4 family first liens
|
8,437
|
|
|
10,516
|
|
|
64
|
|
|
8,140
|
|
|
80
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
233
|
|
|
479
|
|
|
47
|
|
|
239
|
|
|
6
|
|
|||||
Mortgage, multi-family
|
1,816
|
|
|
1,930
|
|
|
—
|
|
|
1,873
|
|
|
83
|
|
|||||
Mortgage, commercial
|
1,372
|
|
|
1,922
|
|
|
1
|
|
|
1,437
|
|
|
30
|
|
|||||
Loans to individuals
|
93
|
|
|
107
|
|
|
93
|
|
|
62
|
|
|
2
|
|
|||||
|
$
|
20,925
|
|
|
$
|
26,097
|
|
|
$
|
1,084
|
|
|
$
|
21,524
|
|
|
$
|
577
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
1,395
|
|
|
$
|
1,663
|
|
|
$
|
—
|
|
|
$
|
1,071
|
|
|
$
|
23
|
|
Commercial and financial
|
1,650
|
|
|
2,503
|
|
|
—
|
|
|
1,977
|
|
|
58
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
111
|
|
|
148
|
|
|
—
|
|
|
113
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
328
|
|
|
344
|
|
|
—
|
|
|
333
|
|
|
18
|
|
|||||
Mortgage, farmland
|
3,612
|
|
|
4,071
|
|
|
—
|
|
|
3,068
|
|
|
89
|
|
|||||
Mortgage, 1 to 4 family first liens
|
6,089
|
|
|
7,819
|
|
|
—
|
|
|
6,435
|
|
|
36
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
254
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
145
|
|
|
213
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|||||
Mortgage, commercial
|
1,871
|
|
|
2,486
|
|
|
—
|
|
|
1,940
|
|
|
42
|
|
|||||
Loans to individuals
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
15,201
|
|
|
$
|
19,515
|
|
|
$
|
—
|
|
|
$
|
15,090
|
|
|
$
|
266
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
1,065
|
|
|
$
|
1,229
|
|
|
$
|
479
|
|
|
$
|
980
|
|
|
$
|
7
|
|
Commercial and financial
|
2,512
|
|
|
2,512
|
|
|
1,189
|
|
|
2,793
|
|
|
107
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
698
|
|
|
698
|
|
|
4
|
|
|
622
|
|
|
28
|
|
|||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage, 1 to 4 family first liens
|
899
|
|
|
974
|
|
|
70
|
|
|
888
|
|
|
25
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
24
|
|
|
24
|
|
|
2
|
|
|
25
|
|
|
1
|
|
|||||
Mortgage, multi-family
|
7,447
|
|
|
7,447
|
|
|
305
|
|
|
7,543
|
|
|
346
|
|
|||||
Mortgage, commercial
|
75
|
|
|
75
|
|
|
1
|
|
|
77
|
|
|
4
|
|
|||||
Loans to individuals
|
64
|
|
|
64
|
|
|
64
|
|
|
77
|
|
|
9
|
|
|||||
|
$
|
12,784
|
|
|
$
|
13,023
|
|
|
$
|
2,114
|
|
|
$
|
13,005
|
|
|
$
|
527
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
2,460
|
|
|
$
|
2,892
|
|
|
$
|
479
|
|
|
$
|
2,051
|
|
|
$
|
30
|
|
Commercial and financial
|
4,162
|
|
|
5,015
|
|
|
1,189
|
|
|
4,770
|
|
|
165
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
809
|
|
|
846
|
|
|
4
|
|
|
735
|
|
|
28
|
|
|||||
Construction, land development and commercial
|
328
|
|
|
344
|
|
|
—
|
|
|
333
|
|
|
18
|
|
|||||
Mortgage, farmland
|
3,612
|
|
|
4,071
|
|
|
—
|
|
|
3,068
|
|
|
89
|
|
|||||
Mortgage, 1 to 4 family first liens
|
6,988
|
|
|
8,793
|
|
|
70
|
|
|
7,323
|
|
|
61
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
24
|
|
|
278
|
|
|
2
|
|
|
25
|
|
|
1
|
|
|||||
Mortgage, multi-family
|
7,592
|
|
|
7,660
|
|
|
305
|
|
|
7,696
|
|
|
346
|
|
|||||
Mortgage, commercial
|
1,946
|
|
|
2,561
|
|
|
1
|
|
|
2,017
|
|
|
46
|
|
|||||
Loans to individuals
|
64
|
|
|
78
|
|
|
64
|
|
|
77
|
|
|
9
|
|
|||||
|
$
|
27,985
|
|
|
$
|
32,538
|
|
|
$
|
2,114
|
|
|
$
|
28,095
|
|
|
$
|
793
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
1,822
|
|
|
$
|
2,193
|
|
|
$
|
—
|
|
|
$
|
2,044
|
|
|
$
|
19
|
|
Commercial and financial
|
1,725
|
|
|
2,487
|
|
|
—
|
|
|
2,080
|
|
|
51
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
114
|
|
|
150
|
|
|
—
|
|
|
116
|
|
|
5
|
|
|||||
Construction, land development and commercial
|
338
|
|
|
371
|
|
|
—
|
|
|
344
|
|
|
14
|
|
|||||
Mortgage, farmland
|
2,523
|
|
|
2,902
|
|
|
—
|
|
|
2,476
|
|
|
56
|
|
|||||
Mortgage, 1 to 4 family first liens
|
6,045
|
|
|
7,507
|
|
|
—
|
|
|
6,286
|
|
|
80
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
7
|
|
|
482
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
218
|
|
|
355
|
|
|
—
|
|
|
231
|
|
|
—
|
|
|||||
Mortgage, commercial
|
1,564
|
|
|
2,274
|
|
|
—
|
|
|
1,706
|
|
|
45
|
|
|||||
Loans to individuals
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
14,356
|
|
|
$
|
18,735
|
|
|
$
|
—
|
|
|
$
|
15,306
|
|
|
$
|
270
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
3,094
|
|
|
$
|
3,149
|
|
|
$
|
133
|
|
|
$
|
3,526
|
|
|
$
|
160
|
|
Commercial and financial
|
1,043
|
|
|
1,043
|
|
|
1,018
|
|
|
1,249
|
|
|
60
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
505
|
|
|
505
|
|
|
39
|
|
|
321
|
|
|
14
|
|
|||||
Mortgage, farmland
|
5,439
|
|
|
5,439
|
|
|
238
|
|
|
5,596
|
|
|
242
|
|
|||||
Mortgage, 1 to 4 family first liens
|
577
|
|
|
593
|
|
|
63
|
|
|
585
|
|
|
20
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
25
|
|
|
25
|
|
|
3
|
|
|
26
|
|
|
1
|
|
|||||
Mortgage, multi-family
|
6,179
|
|
|
6,179
|
|
|
480
|
|
|
6,247
|
|
|
281
|
|
|||||
Mortgage, commercial
|
79
|
|
|
79
|
|
|
2
|
|
|
81
|
|
|
4
|
|
|||||
Loans to individuals
|
190
|
|
|
190
|
|
|
190
|
|
|
179
|
|
|
20
|
|
|||||
|
$
|
17,131
|
|
|
$
|
17,202
|
|
|
$
|
2,166
|
|
|
$
|
17,810
|
|
|
$
|
802
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
$
|
4,916
|
|
|
$
|
5,342
|
|
|
$
|
133
|
|
|
$
|
5,570
|
|
|
$
|
179
|
|
Commercial and financial
|
2,768
|
|
|
3,530
|
|
|
1,018
|
|
|
3,329
|
|
|
111
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
114
|
|
|
150
|
|
|
—
|
|
|
116
|
|
|
5
|
|
|||||
Construction, land development and commercial
|
843
|
|
|
876
|
|
|
39
|
|
|
665
|
|
|
28
|
|
|||||
Mortgage, farmland
|
7,962
|
|
|
8,341
|
|
|
238
|
|
|
8,072
|
|
|
298
|
|
|||||
Mortgage, 1 to 4 family first liens
|
6,622
|
|
|
8,100
|
|
|
63
|
|
|
6,871
|
|
|
100
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
32
|
|
|
507
|
|
|
3
|
|
|
49
|
|
|
1
|
|
|||||
Mortgage, multi-family
|
6,397
|
|
|
6,534
|
|
|
480
|
|
|
6,478
|
|
|
281
|
|
|||||
Mortgage, commercial
|
1,643
|
|
|
2,353
|
|
|
2
|
|
|
1,787
|
|
|
49
|
|
|||||
Loans to individuals
|
190
|
|
|
204
|
|
|
190
|
|
|
179
|
|
|
20
|
|
|||||
|
$
|
31,487
|
|
|
$
|
35,937
|
|
|
$
|
2,166
|
|
|
$
|
33,116
|
|
|
$
|
1,072
|
|
Note 4.
|
Property and Equipment
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
Land
|
$
|
11,261
|
|
|
$
|
10,899
|
|
Buildings and improvements
|
37,261
|
|
|
36,815
|
|
||
Furniture and equipment
|
38,449
|
|
|
36,090
|
|
||
|
86,971
|
|
|
83,804
|
|
||
Less accumulated depreciation
|
49,825
|
|
|
46,753
|
|
||
Net
|
$
|
37,146
|
|
|
$
|
37,051
|
|
Note 5.
|
Leases
|
Year ending December 31:
|
(Amounts In Thousands)
|
||
2020
|
470
|
|
|
2021
|
456
|
|
|
2022
|
447
|
|
|
2023
|
301
|
|
|
2024
|
250
|
|
|
Thereafter
|
2,009
|
|
|
Total lease payments
|
3,933
|
|
|
Less imputed interest
|
(706
|
)
|
|
Total operating lease liabilities
|
$
|
3,227
|
|
Note 6.
|
Interest - Bearing Deposits
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
NOW and other demand
|
$
|
610,271
|
|
|
$
|
542,388
|
|
Savings
|
981,827
|
|
|
925,214
|
|
||
Time, $100,000 and over
|
292,982
|
|
|
228,551
|
|
||
Other time
|
388,672
|
|
|
352,819
|
|
||
|
$
|
2,273,752
|
|
|
$
|
2,048,972
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
Due in one year or less
|
$
|
324,554
|
|
|
$
|
229,091
|
|
Due after one year through two years
|
124,527
|
|
|
223,254
|
|
||
Due after two years through three years
|
90,009
|
|
|
44,610
|
|
||
Due after three years through four years
|
130,252
|
|
|
35,002
|
|
||
Due over four years
|
12,312
|
|
|
49,413
|
|
||
|
$
|
681,654
|
|
|
$
|
581,370
|
|
Note 7.
|
Federal Home Loan Bank Borrowings
|
|
2019
|
|
2018
|
||||
(Effective interest rates as of December 31, 2019)
|
(Amounts In Thousands)
|
||||||
Due 2020, 3.05%
|
25,000
|
|
|
25,000
|
|
||
Due 2023, 3.77%
|
25,000
|
|
|
25,000
|
|
||
Due 2024, 2.38%
|
15,000
|
|
|
15,000
|
|
||
Due 2025, 2.54% to 2.94%
|
60,000
|
|
|
90,000
|
|
||
Due 2026, 2.52% to 2.86%
|
30,000
|
|
|
30,000
|
|
||
Due 2027, 2.76% to 2.95%
|
30,000
|
|
|
30,000
|
|
||
|
$
|
185,000
|
|
|
$
|
215,000
|
|
Note 8.
|
Accumulated Other Comprehensive Income
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(amounts in thousands)
|
||||||
Net unrealized gain (loss) on available-for-sale securities
|
$
|
4,234
|
|
|
$
|
(2,734
|
)
|
Net unrealized loss on derivatives used for cash flow hedges
|
(2,349
|
)
|
|
(1,596
|
)
|
||
Tax effect
|
(470
|
)
|
|
1,080
|
|
||
Net-of-tax amount
|
$
|
1,415
|
|
|
$
|
(3,250
|
)
|
Note 9.
|
Employee Benefit Plans
|
|
2019
|
|
2018
|
||||
Shares held by the ESOP
|
797,317
|
|
|
801,147
|
|
||
Fair value per share
|
$
|
65.00
|
|
|
$
|
61.00
|
|
Maximum cash obligation
|
$
|
51,826,000
|
|
|
$
|
48,870,000
|
|
|
Number of Shares
|
|
Weighted-
Average
Exercise Price
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate
Intrinsic Value
(In Thousands)
|
|||||
Balance, December 31, 2016
|
19,380
|
|
|
$
|
29.92
|
|
|
3.03
|
|
$
|
580
|
|
Granted
|
—
|
|
|
|
|
|
|
|
|
|
||
Exercised
|
(9,160
|
)
|
|
|
|
|
|
|
|
|
||
Balance, December 31, 2017
|
10,220
|
|
|
$
|
33.44
|
|
|
4.45
|
|
342
|
|
|
Granted
|
—
|
|
|
|
|
|
|
|
|
|
||
Exercised
|
(1,200
|
)
|
|
|
|
|
|
|
|
|
||
Balance, December 31, 2018
|
9,020
|
|
|
$
|
33.30
|
|
|
3.41
|
|
250
|
|
|
Granted
|
5,805
|
|
|
|
|
|
|
|
|
|
||
Exercised
|
(1,800
|
)
|
|
|
|
|
|
|
|
|
||
Balance, December 31, 2019
|
13,025
|
|
|
$
|
45.92
|
|
|
5.47
|
|
$
|
248
|
|
Exercise Price
|
|
Number Outstanding
|
|
Remaining Contractual Life
|
|
Number Exercisable
|
|||
33.00
|
|
|
7,220
|
|
|
28 months
|
|
7,220
|
|
62.00
|
|
|
5,805
|
|
|
113 months
|
|
—
|
|
|
|
|
13,025
|
|
|
|
|
7,220
|
|
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Balance, December 31, 2018
|
|
38,125
|
|
|
|
Granted
|
|
23,527
|
|
|
$63.96
|
Forfeited
|
|
5,255
|
|
|
$49.91
|
Balance, December 31, 2019
|
|
19,853
|
|
|
|
Note 10.
|
Income Taxes
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
8,857
|
|
|
$
|
7,783
|
|
|
$
|
13,770
|
|
State
|
2,391
|
|
|
3,093
|
|
|
2,529
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
Federal
|
1,068
|
|
|
(1,560
|
)
|
|
3,426
|
|
|||
State
|
233
|
|
|
(411
|
)
|
|
(188
|
)
|
|||
|
$
|
12,549
|
|
|
$
|
8,905
|
|
|
$
|
19,537
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
Deferred income tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
8,423
|
|
|
$
|
9,434
|
|
Deferred compensation
|
2,047
|
|
|
2,211
|
|
||
Unrealized losses on interest rate swaps
|
586
|
|
|
398
|
|
||
Accrued expenses
|
716
|
|
|
668
|
|
||
State net operating loss
|
929
|
|
|
795
|
|
||
Unrealized losses on investment securities
|
—
|
|
|
682
|
|
||
Gross deferred tax assets
|
$
|
12,701
|
|
|
$
|
14,188
|
|
Valuation allowance
|
(929
|
)
|
|
(795
|
)
|
||
Deferred tax asset, net of valuation allowance
|
$
|
11,772
|
|
|
$
|
13,393
|
|
Deferred income tax liabilities:
|
|
|
|
|
|
||
Property and equipment
|
1,955
|
|
|
1,728
|
|
||
Unrealized gains on investment securities
|
1,056
|
|
|
—
|
|
||
Goodwill
|
407
|
|
|
407
|
|
||
Other
|
336
|
|
|
389
|
|
||
Gross deferred tax liabilities
|
$
|
3,754
|
|
|
$
|
2,524
|
|
Net deferred tax assets
|
$
|
8,018
|
|
|
$
|
10,869
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Amounts In Thousands)
|
||||||||||
Consolidated statements of income
|
$
|
1,301
|
|
|
$
|
1,971
|
|
|
$
|
(3,238
|
)
|
Consolidated statements of stockholders' equity
|
1,550
|
|
|
92
|
|
|
(567
|
)
|
|||
|
$
|
2,851
|
|
|
$
|
2,063
|
|
|
$
|
(3,805
|
)
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Amount
|
|
% Of
Pretax
Income
|
|
Amount
|
|
% Of
Pretax
Income
|
|
Amount
|
|
% Of
Pretax
Income
|
|||||||||
|
(Amounts In Thousands)
|
|||||||||||||||||||
Expected tax expense
|
$
|
12,152
|
|
|
20.9
|
%
|
|
$
|
9,591
|
|
|
21.0
|
%
|
|
$
|
16,659
|
|
|
35.0
|
%
|
Tax-exempt interest
|
(1,201
|
)
|
|
(2.1
|
)
|
|
(1,122
|
)
|
|
(2.5
|
)
|
|
(1,771
|
)
|
|
(3.7
|
)
|
|||
Interest expense limitation
|
109
|
|
|
0.2
|
|
|
87
|
|
|
0.2
|
|
|
103
|
|
|
0.2
|
|
|||
State income taxes, net of federal income tax benefit
|
2,073
|
|
|
3.5
|
|
|
2,119
|
|
|
4.6
|
|
|
1,522
|
|
|
3.2
|
|
|||
Income tax credits
|
(531
|
)
|
|
(0.9
|
)
|
|
(1,292
|
)
|
|
(2.8
|
)
|
|
(1,426
|
)
|
|
(3.0
|
)
|
|||
Deferred tax asset revaluation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,710
|
|
|
9.9
|
|
|||
Other
|
(53
|
)
|
|
0.1
|
|
|
(478
|
)
|
|
(1.0
|
)
|
|
(260
|
)
|
|
(0.6
|
)
|
|||
|
$
|
12,549
|
|
|
21.7
|
%
|
|
$
|
8,905
|
|
|
19.5
|
%
|
|
$
|
19,537
|
|
|
41.0
|
%
|
Note 11.
|
Regulatory Capital Requirements, Restrictions on Subsidiary Dividends and Cash Restrictions
|
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To Be Well-Capitalized Under Prompt Corrective Action Provisions
|
|||||||
|
Amount
|
|
Ratio
|
|
Ratio
|
|
Ratio
|
|||||
As of December 31, 2019:
|
|
|
|
|
|
|
|
|||||
Company:
|
|
|
|
|
|
|
|
|||||
Total risk-based capital
|
$
|
454,452
|
|
|
18.15
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
Tier 1 risk-based capital
|
423,122
|
|
|
16.90
|
|
|
6.00
|
|
|
8.00
|
|
|
Tier 1 common equity
|
423,122
|
|
|
16.90
|
|
|
4.50
|
|
|
6.50
|
|
|
Leverage ratio
|
423,122
|
|
|
12.77
|
|
|
4.00
|
|
|
5.00
|
|
|
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital
|
455,440
|
|
|
18.20
|
|
|
8.00
|
|
|
10.00
|
|
|
Tier 1 risk-based capital
|
424,127
|
|
|
16.95
|
|
|
6.00
|
|
|
8.00
|
|
|
Tier 1 common equity
|
424,127
|
|
|
16.95
|
|
|
4.50
|
|
|
6.50
|
|
|
Leverage ratio
|
424,127
|
|
|
12.81
|
|
|
4.00
|
|
|
5.00
|
|
|
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
|
|
Note 12.
|
Related Party Transactions
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
Balance, beginning
|
$
|
51,216
|
|
|
$
|
42,496
|
|
Net increase (decrease) due to change in related parties
|
2,481
|
|
|
188
|
|
||
Advances
|
17,243
|
|
|
28,194
|
|
||
Collections
|
(15,223
|
)
|
|
(19,662
|
)
|
||
Balance, ending
|
$
|
55,717
|
|
|
$
|
51,216
|
|
Note 13.
|
Fair Value Measurements
|
|
December 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
|
$
|
241,965
|
|
|
$
|
241,965
|
|
|
$
|
241,965
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities
|
366,368
|
|
|
366,368
|
|
|
128,585
|
|
|
237,783
|
|
|
—
|
|
|||||
Loans held for sale
|
8,400
|
|
|
8,400
|
|
|
—
|
|
|
8,400
|
|
|
—
|
|
|||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
88,917
|
|
|
90,118
|
|
|
—
|
|
|
—
|
|
|
90,118
|
|
|||||
Commercial and financial
|
216,335
|
|
|
217,640
|
|
|
—
|
|
|
—
|
|
|
217,640
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction, 1 to 4 family residential
|
79,096
|
|
|
79,954
|
|
|
—
|
|
|
—
|
|
|
79,954
|
|
|||||
Construction, land development and commercial
|
106,924
|
|
|
107,276
|
|
|
—
|
|
|
—
|
|
|
107,276
|
|
|||||
Mortgage, farmland
|
238,780
|
|
|
239,521
|
|
|
—
|
|
|
—
|
|
|
239,521
|
|
|||||
Mortgage, 1 to 4 family first liens
|
902,630
|
|
|
896,676
|
|
|
—
|
|
|
—
|
|
|
896,676
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
147,634
|
|
|
143,261
|
|
|
—
|
|
|
—
|
|
|
143,261
|
|
|||||
Mortgage, multi-family
|
346,938
|
|
|
349,663
|
|
|
—
|
|
|
—
|
|
|
349,663
|
|
|||||
Mortgage, commercial
|
398,145
|
|
|
395,838
|
|
|
—
|
|
|
—
|
|
|
395,838
|
|
|||||
Loans to individuals
|
31,455
|
|
|
32,722
|
|
|
—
|
|
|
—
|
|
|
32,722
|
|
|||||
Obligations of state and political subdivisions
|
49,423
|
|
|
50,564
|
|
|
—
|
|
|
—
|
|
|
50,564
|
|
|||||
Accrued interest receivable
|
12,442
|
|
|
12,442
|
|
|
—
|
|
|
12,442
|
|
|
—
|
|
|||||
Total financial instrument assets
|
$
|
3,235,452
|
|
|
$
|
3,232,408
|
|
|
$
|
370,550
|
|
|
$
|
258,625
|
|
|
$
|
2,603,233
|
|
Financial instrument liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing deposits
|
$
|
387,612
|
|
|
$
|
387,612
|
|
|
$
|
—
|
|
|
$
|
387,612
|
|
|
$
|
—
|
|
Interest-bearing deposits
|
2,273,752
|
|
|
2,292,332
|
|
|
—
|
|
|
2,292,332
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
185,000
|
|
|
186,091
|
|
|
—
|
|
|
186,091
|
|
|
—
|
|
|||||
Interest rate swaps
|
2,349
|
|
|
2,349
|
|
|
—
|
|
|
2,349
|
|
|
—
|
|
|||||
Accrued interest payable
|
2,474
|
|
|
2,474
|
|
|
—
|
|
|
2,474
|
|
|
—
|
|
|||||
Total financial instrument liabilities
|
$
|
2,851,187
|
|
|
$
|
2,870,858
|
|
|
$
|
—
|
|
|
$
|
2,870,858
|
|
|
$
|
—
|
|
|
Face Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial instrument with off-balance sheet risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan commitments
|
$
|
424,165
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Letters of credit
|
8,569
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total financial instrument liabilities with off-balance-sheet risk
|
$
|
432,734
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(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
|
|
|
—
|
|
|||||
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 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
|
|
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.
|
|
December 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
|
$
|
128,585
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
128,585
|
|
State and political subdivisions
|
—
|
|
|
211,489
|
|
|
—
|
|
|
211,489
|
|
||||
Other securities (FHLB, FHLMC and FNMA)
|
—
|
|
|
15,229
|
|
|
—
|
|
|
15,229
|
|
||||
Derivative Financial Instruments
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
(2,349
|
)
|
|
—
|
|
|
(2,349
|
)
|
||||
Total
|
$
|
128,585
|
|
|
$
|
224,369
|
|
|
$
|
—
|
|
|
$
|
352,954
|
|
|
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.
|
|
December 31, 2019
|
|
Year Ended December 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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,272
|
|
|
$
|
1,272
|
|
|
$
|
36
|
|
Commercial and financial
|
—
|
|
|
—
|
|
|
1,803
|
|
|
1,803
|
|
|
499
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction, 1 to 4 family residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction, land development and commercial
|
—
|
|
|
—
|
|
|
215
|
|
|
215
|
|
|
8
|
|
|||||
Mortgage, farmland
|
—
|
|
|
—
|
|
|
3,576
|
|
|
3,576
|
|
|
—
|
|
|||||
Mortgage, 1 to 4 family first liens
|
—
|
|
|
—
|
|
|
7,986
|
|
|
7,986
|
|
|
370
|
|
|||||
Mortgage, 1 to 4 family junior liens
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
|
—
|
|
|||||
Mortgage, multi-family
|
—
|
|
|
—
|
|
|
1,816
|
|
|
1,816
|
|
|
—
|
|
|||||
Mortgage, commercial
|
—
|
|
|
—
|
|
|
1,237
|
|
|
1,237
|
|
|
125
|
|
|||||
Loans to individuals
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Foreclosed assets (5)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,954
|
|
|
$
|
17,954
|
|
|
$
|
1,038
|
|
(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 14.
|
Parent Company Only Financial Information
|
ASSETS
|
2019
|
|
2018
|
||||
Cash and cash equivalents at subsidiary bank
|
$
|
5,114
|
|
|
$
|
3,742
|
|
Investment in subsidiary bank
|
428,042
|
|
|
385,193
|
|
||
Other assets
|
1,331
|
|
|
1,231
|
|
||
Total assets
|
$
|
434,487
|
|
|
$
|
390,166
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Liabilities
|
$
|
7,450
|
|
|
$
|
6,414
|
|
Redeemable common stock held by ESOP
|
51,826
|
|
|
48,870
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Capital stock
|
55,943
|
|
|
52,122
|
|
||
Retained earnings
|
409,509
|
|
|
371,848
|
|
||
Accumulated other comprehensive gain (loss)
|
1,415
|
|
|
(3,250
|
)
|
||
Treasury stock at cost
|
(39,830
|
)
|
|
(36,968
|
)
|
||
|
427,037
|
|
|
383,752
|
|
||
Less maximum cash obligation related to ESOP shares
|
51,826
|
|
|
48,870
|
|
||
Total stockholders' equity
|
375,211
|
|
|
334,882
|
|
||
Total liabilities and stockholders' equity
|
$
|
434,487
|
|
|
$
|
390,166
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Dividends received from subsidiary
|
$
|
7,657
|
|
|
$
|
11,502
|
|
|
$
|
7,485
|
|
Other expenses
|
(708
|
)
|
|
(786
|
)
|
|
(741
|
)
|
|||
Income before income tax benefit and equity in undistributed income of subsidiary
|
6,949
|
|
|
10,716
|
|
|
6,744
|
|
|||
Income tax benefit
|
271
|
|
|
273
|
|
|
73
|
|
|||
|
7,220
|
|
|
10,989
|
|
|
6,817
|
|
|||
Equity in undistributed income of subsidiary
|
38,098
|
|
|
25,778
|
|
|
21,244
|
|
|||
Net income
|
$
|
45,318
|
|
|
$
|
36,767
|
|
|
$
|
28,061
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
45,318
|
|
|
$
|
36,767
|
|
|
$
|
28,061
|
|
Adjustments to reconcile net income to cash and cash equivalents provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Equity in undistributed income of subsidiary
|
(38,098
|
)
|
|
(25,778
|
)
|
|
(21,244
|
)
|
|||
Share-based compensation
|
14
|
|
|
—
|
|
|
11
|
|
|||
Compensation expensed through issuance of common stock
|
1,133
|
|
|
1,466
|
|
|
1,446
|
|
|||
Forfeiture of common stock
|
(262
|
)
|
|
(152
|
)
|
|
(156
|
)
|
|||
(Increase) decrease in other assets
|
(100
|
)
|
|
162
|
|
|
237
|
|
|||
Increase in other liabilities
|
1,036
|
|
|
574
|
|
|
3,212
|
|
|||
Net cash and cash equivalents provided by operating activities
|
9,041
|
|
|
13,039
|
|
|
11,567
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Issuance of common stock, net of costs
|
5,026
|
|
|
4,713
|
|
|
3,762
|
|
|||
Stock options exercised
|
62
|
|
|
41
|
|
|
238
|
|
|||
Purchase of treasury stock
|
(5,534
|
)
|
|
(6,784
|
)
|
|
(2,435
|
)
|
|||
Proceeds from the issuance of common stock through the employee stock purchase plan
|
434
|
|
|
421
|
|
|
325
|
|
|||
Capital contribution to subsidiary
|
—
|
|
|
(4,700
|
)
|
|
(3,500
|
)
|
|||
Dividends paid
|
(7,657
|
)
|
|
(7,003
|
)
|
|
(6,485
|
)
|
|||
Net cash and cash equivalents used by financing activities
|
(7,669
|
)
|
|
(13,312
|
)
|
|
(8,095
|
)
|
|||
Increase (decrease) in cash and cash equivalents
|
1,372
|
|
|
(273
|
)
|
|
3,472
|
|
|||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|||
Beginning of year
|
3,742
|
|
|
4,015
|
|
|
543
|
|
|||
Ending of year
|
$
|
5,114
|
|
|
$
|
3,742
|
|
|
$
|
4,015
|
|
Note 15.
|
Commitments and Contingencies
|
|
2019
|
|
2018
|
||||
|
(Amounts In Thousands)
|
||||||
Firm loan commitments and unused portion of lines of credit:
|
|
|
|
||||
Home equity loans
|
$
|
65,203
|
|
|
$
|
59,330
|
|
Credit cards
|
57,421
|
|
|
52,802
|
|
||
Commercial, real estate and home construction
|
94,490
|
|
|
89,171
|
|
||
Commercial lines and real estate purchase loans
|
207,051
|
|
|
174,637
|
|
||
Outstanding letters of credit
|
8,569
|
|
|
9,033
|
|
Year ending December 31:
|
(Amounts In Thousands)
|
||
2020
|
$
|
469
|
|
2021
|
375
|
|
|
2022
|
319
|
|
|
2023
|
316
|
|
|
2024
|
82
|
|
|
Thereafter
|
1
|
|
|
|
$
|
1,562
|
|
Note 16.
|
Quarterly Results of Operations (unaudited, amounts in thousands, except per share amounts)
|
|
Quarter Ended
|
||||||||||||||||||
|
March
|
|
June
|
|
September
|
|
December
|
|
Year
|
||||||||||
2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
31,847
|
|
|
$
|
33,236
|
|
|
$
|
33,969
|
|
|
$
|
33,280
|
|
|
$
|
132,332
|
|
Interest expense
|
8,074
|
|
|
8,848
|
|
|
9,274
|
|
|
8,677
|
|
|
34,873
|
|
|||||
Net interest income
|
$
|
23,773
|
|
|
$
|
24,388
|
|
|
$
|
24,695
|
|
|
$
|
24,603
|
|
|
$
|
97,459
|
|
Provision for loan losses
|
(1,246
|
)
|
|
(540
|
)
|
|
144
|
|
|
(1,238
|
)
|
|
(2,880
|
)
|
|||||
Other income
|
5,250
|
|
|
5,851
|
|
|
6,638
|
|
|
7,053
|
|
|
24,792
|
|
|||||
Other expense
|
16,049
|
|
|
16,360
|
|
|
16,604
|
|
|
18,251
|
|
|
67,264
|
|
|||||
Income before income taxes
|
$
|
14,220
|
|
|
$
|
14,419
|
|
|
$
|
14,585
|
|
|
$
|
14,643
|
|
|
$
|
57,867
|
|
Income taxes
|
3,017
|
|
|
3,199
|
|
|
3,303
|
|
|
3,030
|
|
|
12,549
|
|
|||||
Net income
|
$
|
11,203
|
|
|
$
|
11,220
|
|
|
$
|
11,282
|
|
|
$
|
11,613
|
|
|
$
|
45,318
|
|
Basic earnings per share
|
$
|
1.20
|
|
|
$
|
1.20
|
|
|
$
|
1.21
|
|
|
$
|
1.24
|
|
|
$
|
4.85
|
|
Diluted earnings per share
|
1.20
|
|
|
1.20
|
|
|
1.21
|
|
|
1.24
|
|
|
4.85
|
|
|||||
2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
28,031
|
|
|
$
|
29,064
|
|
|
$
|
30,411
|
|
|
$
|
31,291
|
|
|
$
|
118,797
|
|
Interest expense
|
5,738
|
|
|
6,241
|
|
|
6,891
|
|
|
7,453
|
|
|
26,323
|
|
|||||
Net interest income
|
$
|
22,293
|
|
|
$
|
22,823
|
|
|
$
|
23,520
|
|
|
$
|
23,838
|
|
|
$
|
92,474
|
|
Provision for loan losses
|
(765
|
)
|
|
711
|
|
|
1,593
|
|
|
6,958
|
|
|
8,497
|
|
|||||
Other income
|
5,628
|
|
|
6,234
|
|
|
6,668
|
|
|
5,288
|
|
|
23,818
|
|
|||||
Other expense
|
15,256
|
|
|
15,680
|
|
|
15,955
|
|
|
15,232
|
|
|
62,123
|
|
|||||
Income before income taxes
|
$
|
13,430
|
|
|
$
|
12,666
|
|
|
$
|
12,640
|
|
|
$
|
6,936
|
|
|
$
|
45,672
|
|
Income taxes
|
2,572
|
|
|
2,603
|
|
|
2,590
|
|
|
1,140
|
|
|
8,905
|
|
|||||
Net income
|
$
|
10,858
|
|
|
$
|
10,063
|
|
|
$
|
10,050
|
|
|
$
|
5,796
|
|
|
$
|
36,767
|
|
Basic earnings per share
|
$
|
1.16
|
|
|
$
|
1.07
|
|
|
$
|
1.07
|
|
|
$
|
0.63
|
|
|
$
|
3.93
|
|
Diluted earnings per share
|
1.16
|
|
|
1.07
|
|
|
1.07
|
|
|
0.62
|
|
|
3.92
|
|
Note 17.
|
Derivative Financial Instruments
|
|
Notional
Amount
|
|
Fair Value
|
|
Balance
Sheet
Category
|
|
Maturity
|
||||
|
(Amounts in Thousands)
|
|
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||
Interest rate swap
|
$
|
25,000
|
|
|
$
|
(279
|
)
|
|
Other Liabilities
|
|
11/9/2020
|
Interest rate swap
|
25,000
|
|
|
(2,070
|
)
|
|
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)
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
$
|
(119
|
)
|
|
Interest Expense
|
|
$
|
—
|
|
|
Other Income
|
|
$
|
—
|
|
Interest rate swap
|
(446
|
)
|
|
Interest Expense
|
|
—
|
|
|
Other Income
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
$
|
347
|
|
|
Interest Expense
|
|
$
|
—
|
|
|
Other Income
|
|
$
|
—
|
|
Interest rate swap
|
571
|
|
|
Interest Expense
|
|
—
|
|
|
Other Income
|
|
—
|
|
Note 18.
|
Subsequent Events
|
Item 9.
|
Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available for future issuance under equity compensation plans [excluding securities reflected in column (a)] |
||||
Plan Category
|
(a)
|
(b)
|
(c)
|
||||
Equity compensation plans approved by security holders
|
13,025
|
|
$
|
45.92
|
|
19,853
|
|
Equity compensation plans not approved by security holders
|
—
|
|
—
|
|
—
|
|
|
Total
|
13,025
|
|
$
|
45.92
|
|
19,853
|
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Item 15.
|
Exhibits, Consolidated Financial Statement Schedules
|
|
|
|
|
|
|
|
|
Form 10-K
|
(a)
|
|
1
|
|
|
|
Financial Statements
|
|
Reference
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent registered public accounting firm's report on the financial statements
|
|
Page 52-54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated balance sheets as of December 31, 2019 and 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of income for the years ended December 31, 2019, 2018, and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of comprehensive income for the years ended December 31, 2019, 2018 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of stockholders' equity for the years ended December 31, 2019, 2018 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated statements of cash flows for the years ended December 31, 2019, 2018 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to consolidated financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
Financial Statements Schedules
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All schedules are omitted because they are not applicable or not required, or because the required information is included in the consolidated financial statements or notes thereto.
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
3
|
|
|
|
Exhibits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
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10.4
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10.5
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11
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Statement Regarding Computation of Basic and Diluted Earnings Per Share. (Note: Statement included in Note 1 under Item 8 of Part II above)
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21
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Subsidiary of the Registrant is attached on Page 116.
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23.1
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Consent of Independent Registered Public Accounting Firm is attached on Page 117. BKD LLP
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31
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Certifications under Section 302 of the Sarbanes-Oxley Act of 2002 on Pages 118-119.
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32
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Certifications under Section 906 of the Sarbanes-Oxley Act of 2002 on Page 120.
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101.INS
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XBRL Instance Document (1)
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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101.DED
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XBRL Taxonomy Extension Definitions Linkbase Document
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HILLS BANCORPORATION
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Date:
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March 6, 2020
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By: /s/Dwight O. Seegmiller
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Dwight O. Seegmiller, Director, President and Chief Executive Officer
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Date:
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March 6, 2020
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By: /s/Shari DeMaris
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Shari DeMaris, Secretary, Treasurer and Chief Accounting Officer
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DIRECTORS OF THE REGISTRANT
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Date:
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March 6, 2020
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By: /s/Michael S. Donovan
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Michael S. Donovan, Director
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Date:
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March 6, 2020
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By: /s/Kirsten H. Frey
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Kirsten H. Frey, Director
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Date:
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March 6, 2020
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By: /s/Michael E. Hodge
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Michael E. Hodge, Director
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Date:
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March 6, 2020
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By: /s/Emily A. Hughes
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Emily A. Hughes, Director
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Date:
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March 6, 2020
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By: /s/Theodore H. Pacha
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Theodore H. Pacha, Director
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Date:
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March 6, 2020
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By: /s/Casey L. Peck
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Casey L. Peck, Director
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Date:
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March 6, 2020
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By: /s/John W. Phelan
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John W. Phelan, Director
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Date:
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March 6, 2020
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By: /s/Ann M. Rhodes
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Ann M. Rhodes, Director
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Date:
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March 6, 2020
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By: /s/James C. Schmitt
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James C. Schmitt, Director
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Date:
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March 6, 2020
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By: /s/Thomas R. Wiele
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Thomas R. Wiele, Director
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Date:
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March 6, 2020
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By: /s/Sheldon E. Yoder
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Sheldon E. Yoder, Director
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Page Number
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In The Sequential
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Exhibit
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Numbering System
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Number
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Description
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For 2019 Form 10-K
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4.1
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||
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11
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Statement Re Computation of Basic and Diluted Earnings Per Share
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(Note: Statement included in Note 1 under Item 8 of Part II above)
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21
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||
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23.1
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||
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31.1
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31.2
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32
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•
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The transaction is solely between the Registrant and another corporation, 100% of the voting stock of which is owned either directly or indirectly by the Registrant;
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•
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The board of directors has approved a memorandum of understanding with each counterparty to such transaction prior to the time that the counterparty became a beneficial owner of 5% or more of the Registrant’s outstanding common shares; or
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•
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The transaction has been approved by the affirmative vote of at least 75% of the entire membership of the board of directors at any time prior to the transaction’s consummation, provided further that a majority of the board at the time of the vote consists of directors with no affiliation with the counterparty or interest in the proposed transaction.
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1.
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I have reviewed this annual report on Form 10-K of Hills Bancorporation;
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2.
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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;
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3.
|
Based on my knowledge, the consolidated 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;
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4.
|
The registrant’s other certifying officer(s) 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 15(d)-15(f)) for the registrant and have:
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(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;
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(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;
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(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
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(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
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5.
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The registrant’s other certifying officer(s) 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:
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March 6, 2020
|
By: /s/Dwight O. Seegmiller
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|
|
Dwight O. Seegmiller, Director and President
|
1.
|
I have reviewed this annual report on Form 10-K 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 consolidated 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(s) 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 15(d)-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(s) 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:
|
March 6, 2020
|
By: /s/Shari DeMaris
|
|
|
Shari DeMaris, Treasurer and Chief Accounting Officer
|
Date:
|
March 6, 2020
|
By: /s/Dwight O. Seegmiller
|
|
|
Dwight O. Seegmiller, Director and President
|
Date:
|
March 6, 2020
|
By: /s/Shari DeMaris
|
|
|
Shari DeMaris, Treasurer and Chief Accounting Officer
|