Delaware
|
94-3327828
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
111 W. Pine Street, Lodi, California
|
95240
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ☐
|
Accelerated filer ☒
|
Non-accelerated filer ☐
|
Smaller Reporting Company ☐
|
Emerging growth company
☐
|
Title of each class:
|
Trading Symbol(s)
|
Name of each exchange on which registered:
|
||
Common Stock
|
FMCB
|
OTCQX
|
PART I. -
FINANCIAL INFORMATION
|
Page
|
||
|
Item 1 - Financial Statements
|
||
|
3
|
||
|
4
|
||
|
5
|
||
|
6
|
||
|
7
|
||
|
Notes to the Consolidated Financial Statements (Unaudited) |
8
|
|
|
36
|
||
|
56
|
||
|
58
|
||
PART II. -
OTHER INFORMATION
|
|||
59
|
|||
59
|
|||
59
|
|||
59
|
|||
60
|
|||
60
|
|||
60
|
|||
61
|
(in thousands except share data)
|
||||||||||||
June 30,
2019
|
December 31,
2018
|
June 30,
2018
|
||||||||||
Assets
|
||||||||||||
Cash and Cash Equivalents:
|
||||||||||||
Cash and Due from Banks
|
$
|
64,476
|
$
|
61,058
|
$
|
51,491
|
||||||
Interest Bearing Deposits with Banks
|
50,241
|
84,506
|
55,408
|
|||||||||
Total Cash and Cash Equivalents
|
114,717
|
145,564
|
106,899
|
|||||||||
Investment Securities:
|
||||||||||||
Available-for-Sale
|
488,093
|
495,396
|
450,174
|
|||||||||
Held-to-Maturity
|
60,310
|
53,566
|
52,210
|
|||||||||
Total Investment Securities
|
548,403
|
548,962
|
502,384
|
|||||||||
Loans & Leases:
|
2,598,898
|
2,571,241
|
2,344,448
|
|||||||||
Less: Allowance for Credit Losses
|
55,125
|
55,266
|
51,137
|
|||||||||
Loans & Leases, Net
|
2,543,773
|
2,515,975
|
2,293,311
|
|||||||||
Premises and Equipment, Net
|
31,864
|
32,623
|
29,254
|
|||||||||
Bank Owned Life Insurance
|
66,114
|
65,117
|
60,495
|
|||||||||
Interest Receivable and Other Assets
|
129,929
|
126,002
|
105,480
|
|||||||||
Total Assets
|
$
|
3,434,800
|
$
|
3,434,243
|
$
|
3,097,823
|
||||||
Liabilities
|
||||||||||||
Deposits:
|
||||||||||||
Demand
|
$
|
949,817
|
$
|
974,756
|
$
|
815,575
|
||||||
Interest Bearing Transaction
|
656,211
|
694,384
|
603,494
|
|||||||||
Savings and Money Market
|
899,741
|
903,665
|
812,083
|
|||||||||
Time
|
519,507
|
490,027
|
466,121
|
|||||||||
Total Deposits
|
3,025,276
|
3,062,832
|
2,697,273
|
|||||||||
Subordinated Debentures
|
10,310
|
10,310
|
10,310
|
|||||||||
Interest Payable and Other Liabilities
|
57,705
|
49,886
|
74,748
|
|||||||||
Total Liabilities
|
3,093,291
|
3,123,028
|
2,782,331
|
|||||||||
Shareholders’ Equity
|
||||||||||||
Preferred Stock: No Par Value, 1,000,000 Shares Authorized, None Issued or Outstanding
|
-
|
-
|
-
|
|||||||||
Common Stock: Par Value $0.01, 7,500,000 Shares Authorized, 787,307, 783,721, and 821,073 Shares Issued and Outstanding at June 30, 2019, December 31, 2018 and June 30, 2018, Respectively
|
8
|
8
|
8
|
|||||||||
Additional Paid-In Capital
|
75,538
|
72,974
|
99,192
|
|||||||||
Retained Earnings
|
263,325
|
241,221
|
221,671
|
|||||||||
Accumulated Other Comprehensive Income (Loss)
|
2,638
|
(2,988
|
)
|
(5,379
|
)
|
|||||||
Total Shareholders’ Equity
|
341,509
|
311,215
|
315,492
|
|||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
3,434,800
|
$
|
3,434,243
|
$
|
3,097,823
|
(in thousands except per share data)
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Interest Income
|
||||||||||||||||
Interest and Fees on Loans & Leases
|
$
|
34,716
|
$
|
28,927
|
$
|
67,893
|
$
|
55,971
|
||||||||
Interest on Deposits with Banks
|
1,161
|
514
|
2,286
|
1,099
|
||||||||||||
Interest on Investment Securities:
|
||||||||||||||||
Taxable
|
2,244
|
2,315
|
4,671
|
4,696
|
||||||||||||
Exempt from Federal Tax
|
505
|
405
|
949
|
823
|
||||||||||||
Total Interest Income
|
38,626
|
32,161
|
75,799
|
62,589
|
||||||||||||
Interest Expense
|
||||||||||||||||
Deposits
|
3,112
|
1,529
|
5,933
|
2,934
|
||||||||||||
Subordinated Debentures
|
141
|
131
|
286
|
248
|
||||||||||||
Total Interest Expense
|
3,253
|
1,660
|
6,219
|
3,182
|
||||||||||||
Net Interest Income
|
35,373
|
30,501
|
69,580
|
59,407
|
||||||||||||
Provision for Credit Losses
|
200
|
500
|
200
|
833
|
||||||||||||
Net Interest Income After Provision for Credit Losses
|
35,173
|
30,001
|
69,380
|
58,574
|
||||||||||||
Non-Interest Income
|
||||||||||||||||
Service Charges on Deposit Accounts
|
901
|
842
|
1,777
|
1,659
|
||||||||||||
Net (Loss) on Sale of Investment Securities
|
-
|
(1,330
|
)
|
-
|
(1,330
|
)
|
||||||||||
Increase in Cash Surrender Value of Bank Owned Life Insurance
|
505
|
460
|
997
|
912
|
||||||||||||
Debit Card and ATM Fees
|
1,291
|
1,096
|
2,468
|
2,112
|
||||||||||||
Net Gain on Deferred Compensation Investments
|
818
|
407
|
1,863
|
1,189
|
||||||||||||
Other
|
885
|
808
|
1,759
|
2,406
|
||||||||||||
Total Non-Interest Income
|
4,400
|
2,283
|
8,864
|
6,948
|
||||||||||||
Non-Interest Expense
|
||||||||||||||||
Salaries and Employee Benefits
|
13,439
|
11,653
|
26,863
|
25,180
|
||||||||||||
Net Gain on Deferred Compensation Investments
|
818
|
407
|
1,863
|
1,189
|
||||||||||||
Occupancy
|
1,014
|
907
|
2,054
|
1,849
|
||||||||||||
Equipment
|
1,176
|
1,018
|
2,353
|
2,041
|
||||||||||||
Marketing
|
233
|
390
|
613
|
719
|
||||||||||||
Legal
|
851
|
852
|
1,720
|
1,292
|
||||||||||||
FDIC Insurance
|
230
|
227
|
471
|
466
|
||||||||||||
Other
|
2,804
|
2,691
|
5,073
|
5,345
|
||||||||||||
Total Non-Interest Expense
|
20,565
|
18,145
|
41,010
|
38,081
|
||||||||||||
Income Before Provision for Income Taxes
|
19,008
|
14,139
|
37,234
|
27,441
|
||||||||||||
Provision for Income Taxes
|
4,903
|
3,589
|
9,580
|
6,950
|
||||||||||||
Net Income
|
$
|
14,105
|
$
|
10,550
|
$
|
27,654
|
$
|
20,491
|
||||||||
Basic and Diluted Earnings Per Common Share
|
$
|
17.92
|
$
|
12.90
|
$
|
35.19
|
$
|
25.14
|
(in thousands)
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net Income
|
$
|
14,105
|
$
|
10,550
|
$
|
27,654
|
$
|
20,491
|
||||||||
Other Comprehensive Income
|
||||||||||||||||
Increase in Net Unrealized Gain (Loss) on Available-for-Sale Securities
|
3,741
|
(2,519
|
)
|
7,987
|
(7,807
|
)
|
||||||||||
Deferred Tax (Expense) Benefit Related to net Unrealized Gains (loss)
|
(1,105
|
)
|
757
|
(2,361
|
)
|
2,320
|
||||||||||
Reclassification Adjustment for Realized Losses (Gains) on Available-for-Sale Securities Included in Net Income
|
-
|
1,330
|
-
|
1,330
|
||||||||||||
Deferred Tax (Expense) Benefit Related to Reclassification Adjustment
|
-
|
(405
|
)
|
-
|
(405
|
)
|
||||||||||
Total Other Comprehensive Income (Loss)
|
2,636
|
(837
|
)
|
5,626
|
(4,562
|
)
|
||||||||||
Comprehensive Income
|
$
|
16,741
|
$
|
9,713
|
$
|
33,280
|
$
|
15,929
|
For the three and six months ended June 30, 2019 and 2018
|
||||||||||||||||||||||||
(in thousands except share data)
|
Common
Shares
Outstanding
|
Common
Stock
|
Additional
Paid-In
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income, net
|
Total
Shareholders’
Equity
|
||||||||||||||||||
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||
Balance, April 1, 2019
|
787,307
|
$
|
8
|
$
|
75,538
|
$
|
254,770
|
$
|
2
|
$
|
330,318
|
|||||||||||||
Net Income
|
-
|
14,105
|
-
|
14,105
|
||||||||||||||||||||
Cash Dividends Declared on
|
-
|
|||||||||||||||||||||||
Common Stock ($7.05 per share)
|
-
|
-
|
(5,550
|
)
|
-
|
(5,550
|
)
|
|||||||||||||||||
Issuance of Common Stock
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax
|
-
|
-
|
-
|
2,636
|
2,636
|
|||||||||||||||||||
Balance, June 30, 2019
|
787,307
|
$
|
8
|
$
|
75,538
|
$
|
263,325
|
$
|
2,638
|
$
|
341,509
|
|||||||||||||
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||
Balance, April 1, 2018
|
812,304
|
$
|
8
|
$
|
93,624
|
$
|
216,786
|
$
|
(4,542
|
)
|
$
|
305,876
|
||||||||||||
Net Income
|
-
|
10,550
|
-
|
10,550
|
||||||||||||||||||||
Cash Dividends Declared on
|
-
|
|||||||||||||||||||||||
Common Stock ($6.90 per share)
|
-
|
-
|
(5,665
|
)
|
-
|
(5,665
|
)
|
|||||||||||||||||
Issuance of Common Stock
|
8,769
|
-
|
5,568
|
-
|
-
|
5,568
|
||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax
|
-
|
-
|
-
|
(837
|
)
|
(837
|
)
|
|||||||||||||||||
Balance, June 30, 2018
|
821,073
|
$
|
8
|
$
|
99,192
|
$
|
221,671
|
$
|
(5,379
|
)
|
$
|
315,492
|
||||||||||||
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||
Balance, January 1, 2019
|
783,721
|
$
|
8
|
$
|
72,974
|
$
|
241,221
|
$
|
(2,988
|
)
|
$
|
311,215
|
||||||||||||
Net Income
|
-
|
27,654
|
-
|
27,654
|
||||||||||||||||||||
Cash Dividends Declared on
|
-
|
|||||||||||||||||||||||
Common Stock ($7.05 per share)
|
-
|
-
|
(5,550
|
)
|
-
|
(5,550
|
)
|
|||||||||||||||||
Issuance of Common Stock
|
3,586
|
-
|
2,564
|
-
|
-
|
2,564
|
||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax
|
-
|
-
|
-
|
5,626
|
5,626
|
|||||||||||||||||||
Balance, June 30, 2019
|
787,307
|
$
|
8
|
$
|
75,538
|
$
|
263,325
|
$
|
2,638
|
$
|
341,509
|
|||||||||||||
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||
Balance, January 1, 2018
|
812,304
|
$
|
8
|
$
|
93,624
|
$
|
206,845
|
$
|
(817
|
)
|
$
|
299,660
|
||||||||||||
Net Income
|
-
|
20,491
|
-
|
20,491
|
||||||||||||||||||||
Cash Dividends Declared on
|
-
|
|||||||||||||||||||||||
Common Stock ($6.90 per share)
|
-
|
-
|
(5,665
|
)
|
-
|
(5,665
|
)
|
|||||||||||||||||
Issuance of Common Stock
|
8,769
|
-
|
5,568
|
-
|
-
|
5,568
|
||||||||||||||||||
Change in Net Unrealized Loss on Securities Available-for-Sale, net of tax
|
-
|
-
|
-
|
(4,562
|
)
|
(4,562
|
)
|
|||||||||||||||||
Balance, June 30, 2018
|
821,073
|
$
|
8
|
$
|
99,192
|
$
|
221,671
|
$
|
(5,379
|
)
|
$
|
315,492
|
Six Months Ended
|
||||||||
(in thousands)
|
June 30,
2019
|
June 30,
2018
|
||||||
Operating Activities:
|
||||||||
Net Income
|
$
|
27,654
|
$
|
20,491
|
||||
Adjustments to Reconcile Net Income to Net
|
||||||||
Cash Provided by Operating Activities:
|
||||||||
Provision for Credit Losses
|
200
|
833
|
||||||
Depreciation and Amortization
|
1,387
|
1,155
|
||||||
Net Amortization of Investment Security Premiums & Discounts
|
222
|
568
|
||||||
Amortization of Core Deposit Intangible
|
319
|
54
|
||||||
Accretion of Discount on Acquired Loans
|
(6
|
)
|
(87
|
)
|
||||
Net Loss on Sale of Investment Securities
|
-
|
1,330
|
||||||
Net (Gain) on Sale of Property & Equipment
|
-
|
(292
|
)
|
|||||
Earnings from Equity Investment
|
-
|
(164
|
)
|
|||||
Dividends from Equity Investment
|
-
|
63
|
||||||
Net Change in Operating Assets & Liabilities:
|
||||||||
Net Decrease in Interest Receivable and Other Assets
|
810
|
218
|
||||||
Net Increase in Interest Payable and Other Liabilities
|
4,175
|
1,788
|
||||||
Net Cash Provided by Operating Activities
|
34,761
|
25,957
|
||||||
Investing Activities:
|
||||||||
Purchase of Investment Securities Available-for-Sale
|
(316,054
|
)
|
(169,467
|
)
|
||||
Proceeds from Sold, Matured or Called Securities Available-for-Sale
|
330,902
|
227,072
|
||||||
Purchase of Investment Securities Held-to-Maturity
|
(11,606
|
)
|
(2,770
|
)
|
||||
Proceeds from Matured or Called Securities Held-to-Maturity
|
4,823
|
4,990
|
||||||
Net Loans & Leases Paid, Originated or Acquired
|
(28,069
|
)
|
(129,154
|
)
|
||||
Principal Collected on Loans & Leases Previously Charged Off
|
77
|
50
|
||||||
Additions to Premises and Equipment
|
(628
|
)
|
(2,497
|
)
|
||||
Purchase of Other Investments
|
(1,947
|
)
|
(3,794
|
)
|
||||
Proceeds from Sale of Property & Equipment
|
-
|
983
|
||||||
Net Cash Used in Investing Activities
|
(22,502
|
)
|
(74,587
|
)
|
||||
Financing Activities:
|
||||||||
Net Decrease in Deposits
|
(37,556
|
)
|
(25,955
|
)
|
||||
Cash Dividends
|
(5,550
|
)
|
(5,665
|
)
|
||||
Net Cash Used in Financing Activities
|
(43,106
|
)
|
(31,620
|
)
|
||||
Decrease in Cash and Cash Equivalents
|
(30,847
|
)
|
(80,250
|
)
|
||||
Cash and Cash Equivalents at Beginning of Period
|
145,564
|
187,149
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
114,717
|
$
|
106,899
|
||||
Supplementary Data
|
||||||||
Cash Payments Made for Income Taxes
|
$
|
4,631
|
$
|
3,051
|
||||
Issuance of Common Stock to the Bank’s Non-Qualified Retirement Plans
|
$
|
2,564
|
$
|
5,568
|
||||
Interest Paid
|
$
|
5,109
|
$
|
3,492
|
(in thousands)
|
2019
|
2020
|
2021
|
2022
|
2023
|
Thereafter
|
Total
|
|||||||||||||||||||||
Core Deposit Intangible Amortization
|
$
|
320
|
$
|
626
|
$
|
611
|
$
|
593
|
$
|
573
|
$
|
2,236
|
$
|
4,959
|
|
Amortized
|
Gross Unrealized
|
Fair/Book
|
|||||||||||||
June 30, 2019
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Government Agency & Government-Sponsored Entities
|
$
|
3,009
|
$
|
5
|
$
|
-
|
$
|
3,014
|
||||||||
US Treasury Notes
|
174,688
|
245
|
25
|
174,908
|
||||||||||||
US Government Agency SBA
|
13,289
|
23
|
114
|
13,198
|
||||||||||||
Mortgage Backed Securities
(1)
|
288,550
|
3,727
|
116
|
292,161
|
||||||||||||
Other
|
4,812
|
-
|
-
|
4,812
|
||||||||||||
Total
|
$
|
484,348
|
$
|
4,000
|
$
|
255
|
$
|
488,093
|
|
Amortized |
Gross Unrealized
|
Fair/Book
|
|||||||||||||
December 31, 2018
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Government Agency & Government-Sponsored Entities
|
$
|
3,033
|
$
|
6
|
$
|
-
|
$
|
3,039
|
||||||||
US Treasury Notes
|
164,672
|
-
|
158
|
164,514
|
||||||||||||
US Government Agency SBA
|
15,601
|
6
|
160
|
15,447
|
||||||||||||
Mortgage Backed Securities
(1)
|
310,982
|
1,196
|
5,133
|
307,045
|
||||||||||||
Other
|
5,351
|
-
|
-
|
5,351
|
||||||||||||
Total
|
$
|
499,639
|
$
|
1,208
|
$
|
5,451
|
$
|
495,396
|
|
Amortized
|
Gross Unrealized
|
Fair/Book
|
|||||||||||||
June 30, 2018
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Government Agency & Government-Sponsored Entities
|
$
|
3,056
|
$
|
15
|
$
|
-
|
$
|
3,071
|
||||||||
US Treasury Notes
|
139,689
|
2
|
416
|
139,275
|
||||||||||||
US Government Agency SBA
|
18,583
|
8
|
188
|
18,403
|
||||||||||||
Mortgage Backed Securities
(1)
|
293,473
|
337
|
7,396
|
286,414
|
||||||||||||
Other
|
3,011
|
-
|
-
|
3,011
|
||||||||||||
Total
|
$
|
457,812
|
$
|
362
|
$
|
8,000
|
$
|
450,174
|
|
Book
|
Gross Unrealized
|
Fair | |||||||||||||
June 30, 2019
|
Value
|
Gains
|
Losses
|
Value
|
||||||||||||
Obligations of States and Political Subdivisions
|
$
|
60,310
|
$
|
845
|
$
|
-
|
$
|
61,155
|
||||||||
Total
|
$
|
60,310
|
$
|
845
|
$
|
-
|
$
|
61,155
|
|
Book
|
Gross Unrealized
|
Fair | |||||||||||||
December 31, 2018
|
Value
|
Gains
|
Losses
|
Value
|
||||||||||||
Obligations of States and Political Subdivisions
|
$
|
53,566
|
$
|
211
|
$
|
39
|
$
|
53,738
|
||||||||
Total
|
$
|
53,566
|
$
|
211
|
$
|
39
|
$
|
53,738
|
|
Book
|
Gross Unrealized
|
Fair | |||||||||||||
June 30, 2018
|
Value
|
Gains
|
Losses
|
Value
|
||||||||||||
Obligations of States and Political Subdivisions
|
$
|
52,210
|
$
|
227
|
$
|
79
|
$
|
52,358
|
||||||||
Total
|
$
|
52,210
|
$
|
227
|
$
|
79
|
$
|
52,358
|
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
June 30, 2019
|
Amortized
Cost
|
Fair/Book
Value
|
Book
Value
|
Fair
Value
|
||||||||||||
Within one year
|
$
|
166,665
|
$
|
166,644
|
$
|
562
|
$
|
563
|
||||||||
After one year through five years
|
16,515
|
16,760
|
3,513
|
3,520
|
||||||||||||
After five years through ten years
|
1,239
|
1,241
|
24,440
|
25,048
|
||||||||||||
After ten years
|
11,380
|
11,287
|
31,795
|
32,024
|
||||||||||||
195,799
|
195,932
|
60,310
|
61,155
|
|||||||||||||
Investment securities not due at a single maturity date:
|
||||||||||||||||
Mortgage-backed securities
|
288,549
|
292,161
|
-
|
-
|
||||||||||||
Total
|
$
|
484,348
|
$
|
488,093
|
$
|
60,310
|
$
|
61,155
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
June 30, 2019
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
US Treasury Notes
|
$
|
159,966
|
$
|
25
|
$
|
-
|
$
|
-
|
$
|
159,966
|
$
|
25
|
||||||||||||
US Government Agency SBA
|
60
|
-
|
6,750
|
114
|
6,810
|
114
|
||||||||||||||||||
Mortgage Backed Securities
|
1,331
|
1
|
35,247
|
115
|
36,578
|
116
|
||||||||||||||||||
Total
|
$
|
161,357
|
$
|
26
|
$
|
41,997
|
$
|
229
|
$
|
203,354
|
$
|
255
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
December 31, 2018
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
US Treasury Notes
|
$
|
124,985
|
$
|
7
|
$
|
39,529
|
$
|
151
|
$
|
164,514
|
$
|
158
|
||||||||||||
US Government Agency SBA
|
3,250
|
28
|
8,618
|
132
|
11,868
|
160
|
||||||||||||||||||
Mortgage Backed Securities
|
52,289
|
528
|
207,271
|
4,605
|
259,560
|
5,133
|
||||||||||||||||||
Total
|
$
|
180,524
|
$
|
563
|
$
|
255,418
|
$
|
4,888
|
$
|
435,942
|
$
|
5,451
|
||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||||||||||
Obligations of States and Political Subdivisions
|
$
|
6,052
|
$
|
23
|
$
|
849
|
$
|
16
|
$
|
6,901
|
$
|
39
|
||||||||||||
Total
|
$
|
6,052
|
$
|
23
|
$
|
849
|
$
|
16
|
$
|
6,901
|
$
|
39
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
June 30, 2018
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
US Treasury Notes
|
$
|
14,412
|
$
|
178
|
$
|
29,876
|
$
|
238
|
$
|
44,288
|
$
|
416
|
||||||||||||
US Government Agency SBA
|
5,589
|
68
|
9,023
|
120
|
14,612
|
188
|
||||||||||||||||||
Mortgage Backed Securities
|
214,949
|
5,464
|
58,148
|
1,932
|
273,097
|
7,396
|
||||||||||||||||||
Total
|
$
|
234,950
|
$
|
5,710
|
$
|
97,047
|
$
|
2,290
|
$
|
331,997
|
$
|
8,000
|
||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||||||||||
Obligations of States and Political Subdivisions
|
$
|
8,543
|
$
|
79
|
$
|
-
|
$
|
-
|
$
|
8,543
|
$
|
79
|
||||||||||||
Total
|
$
|
8,543
|
$
|
79
|
$
|
-
|
$
|
-
|
$
|
8,543
|
$
|
79
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
(in thousands)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Proceeds
|
$
|
1,310
|
$
|
31,370
|
$
|
1,310
|
$
|
31,370
|
||||||||
Gains
|
-
|
8
|
-
|
8
|
||||||||||||
Losses
|
-
|
1,338
|
-
|
1,338
|
June 30, 2019
|
Commercial Real
Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans |
Agricultural
|
Commercial
|
Consumer &
Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2019
|
$
|
11,609
|
$
|
14,092
|
$
|
1,249
|
$
|
880
|
$
|
2,761
|
$
|
8,242
|
$
|
11,656
|
$
|
494
|
$
|
4,022
|
$
|
261
|
$
|
55,266
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
-
|
-
|
-
|
(379
|
)
|
(39
|
)
|
-
|
-
|
(418
|
)
|
||||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
6
|
11
|
11
|
23
|
26
|
-
|
-
|
77
|
|||||||||||||||||||||||||||||||||
Provision
|
(929
|
)
|
480
|
448
|
(22
|
)
|
(29
|
)
|
(772
|
)
|
967
|
(17
|
)
|
(922
|
)
|
996
|
200
|
|||||||||||||||||||||||||||
Ending Balance- June 30, 2019
|
$
|
10,680
|
$
|
14,572
|
$
|
1,697
|
$
|
864
|
$
|
2,743
|
$
|
7,481
|
$
|
12,267
|
$
|
464
|
$
|
3,100
|
$
|
1,257
|
$
|
55,125
|
||||||||||||||||||||||
Second Quarter Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- April 1, 2019
|
$
|
11,400
|
$
|
14,493
|
$
|
1,207
|
$
|
863
|
$
|
2,738
|
$
|
7,448
|
$
|
11,933
|
$
|
467
|
$
|
4,008
|
$
|
350
|
$
|
54,907
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(18
|
)
|
-
|
-
|
(18
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
3
|
5
|
4
|
12
|
12
|
-
|
-
|
36
|
|||||||||||||||||||||||||||||||||
Provision
|
(720
|
)
|
79
|
490
|
(2
|
)
|
-
|
29
|
322
|
3
|
(908
|
)
|
907
|
200
|
||||||||||||||||||||||||||||||
Ending Balance- June 30, 2019
|
$
|
10,680
|
$
|
14,572
|
$
|
1,697
|
$
|
864
|
$
|
2,743
|
$
|
7,481
|
$
|
12,267
|
$
|
464
|
$
|
3,100
|
$
|
1,257
|
$
|
55,125
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
201
|
-
|
-
|
122
|
12
|
99
|
158
|
6
|
-
|
-
|
598
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
10,479
|
14,572
|
1,697
|
742
|
2,731
|
7,382
|
12,109
|
458
|
3,100
|
1,257
|
54,527
|
|||||||||||||||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||||||||||||||||||
Ending Balance
|
$
|
813,750
|
$
|
605,776
|
$
|
93,539
|
$
|
257,408
|
$
|
40,210
|
$
|
284,858
|
$
|
382,192
|
$
|
17,844
|
$
|
103,321
|
$
|
-
|
$
|
2,598,898
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
4,601
|
5,702
|
-
|
2,444
|
247
|
196
|
1,579
|
6
|
-
|
-
|
14,775
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
$
|
809,149
|
$
|
600,074
|
$
|
93,539
|
$
|
254,964
|
$
|
39,963
|
$
|
284,662
|
$
|
380,613
|
$
|
17,838
|
$
|
103,321
|
$
|
-
|
$
|
2,584,123
|
December 31, 2018
|
Commercial Real
Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans
|
Agricultural
|
Commercial
|
Consumer &
Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2018
|
$
|
10,922
|
$
|
12,085
|
$
|
1,846
|
$
|
815
|
$
|
2,324
|
$
|
8,159
|
$
|
9,197
|
$
|
209
|
$
|
3,363
|
$
|
1,422
|
$
|
50,342
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
(31
|
)
|
(8
|
)
|
-
|
(613
|
)
|
(115
|
)
|
-
|
-
|
(767
|
)
|
||||||||||||||||||||||||||||
Recoveries
|
2
|
-
|
-
|
15
|
6
|
61
|
20
|
54
|
-
|
-
|
158
|
|||||||||||||||||||||||||||||||||
Provision
|
685
|
2,007
|
(597
|
)
|
81
|
439
|
22
|
3,052
|
346
|
659
|
(1,161
|
)
|
5,533
|
|||||||||||||||||||||||||||||||
Ending Balance- December 31, 2018
|
$
|
11,609
|
$
|
14,092
|
$
|
1,249
|
$
|
880
|
$
|
2,761
|
$
|
8,242
|
$
|
11,656
|
$
|
494
|
$
|
4,022
|
$
|
261
|
$
|
55,266
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
234
|
-
|
-
|
125
|
15
|
-
|
185
|
6
|
-
|
-
|
565
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
11,375
|
14,092
|
1,249
|
755
|
2,746
|
8,242
|
11,471
|
488
|
4,022
|
261
|
54,701
|
|||||||||||||||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||||||||||||||||||
Ending Balance
|
$
|
826,549
|
$
|
584,625
|
$
|
98,568
|
$
|
259,736
|
$
|
40,789
|
$
|
290,463
|
$
|
343,834
|
$
|
19,412
|
$
|
107,265
|
$
|
-
|
$
|
2,571,241
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
4,676
|
7,238
|
-
|
2,491
|
297
|
-
|
1,639
|
6
|
-
|
-
|
16,347
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
821,873
|
577,387
|
98,568
|
257,245
|
40,492
|
290,463
|
342,195
|
19,406
|
107,265
|
-
|
2,554,894
|
June 30, 2018
|
Commercial Real
Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans
|
Agricultural
|
Commercial
|
Consumer &
Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2018
|
$
|
10,922
|
$
|
12,085
|
$
|
1,846
|
$
|
815
|
$
|
2,324
|
$
|
8,159
|
$
|
9,197
|
$
|
209
|
$
|
3,363
|
$
|
1,422
|
$
|
50,342
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
(12
|
)
|
(4
|
)
|
-
|
(14
|
)
|
(58
|
)
|
-
|
-
|
(88
|
)
|
||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
6
|
2
|
13
|
3
|
26
|
-
|
-
|
50
|
|||||||||||||||||||||||||||||||||
Provision
|
(139
|
)
|
1,229
|
(230
|
)
|
55
|
226
|
(514
|
)
|
250
|
93
|
37
|
(174
|
)
|
833
|
|||||||||||||||||||||||||||||
Ending Balance- June 30, 2018
|
$
|
10,783
|
$
|
13,314
|
$
|
1,616
|
$
|
864
|
$
|
2,548
|
$
|
7,658
|
$
|
9,436
|
$
|
270
|
$
|
3,400
|
$
|
1,248
|
$
|
51,137
|
||||||||||||||||||||||
Second Quarter Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- April 1, 2018
|
$
|
11,078
|
$
|
12,242
|
$
|
1,873
|
$
|
827
|
$
|
2,343
|
$
|
7,868
|
$
|
9,374
|
$
|
239
|
$
|
3,390
|
$
|
1,443
|
$
|
50,677
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
(12
|
)
|
-
|
-
|
(14
|
)
|
(41
|
)
|
-
|
-
|
(67
|
)
|
|||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
3
|
1
|
7
|
1
|
15
|
-
|
-
|
27
|
|||||||||||||||||||||||||||||||||
Provision
|
(295
|
)
|
1,072
|
(257
|
)
|
46
|
204
|
(217
|
)
|
75
|
57
|
10
|
(195
|
)
|
500
|
|||||||||||||||||||||||||||||
Ending Balance- June 30, 2018
|
$
|
10,783
|
$
|
13,314
|
$
|
1,616
|
$
|
864
|
$
|
2,548
|
$
|
7,658
|
$
|
9,436
|
$
|
270
|
$
|
3,400
|
$
|
1,248
|
$
|
51,137
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
333
|
-
|
-
|
131
|
16
|
-
|
487
|
7
|
-
|
-
|
974
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
10,450
|
13,314
|
1,616
|
733
|
2,532
|
7,658
|
8,949
|
263
|
3,400
|
1,248
|
50,163
|
|||||||||||||||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||||||||||||||||||
Ending Balance
|
$
|
752,043
|
$
|
540,852
|
$
|
94,223
|
$
|
261,804
|
$
|
37,669
|
$
|
273,170
|
$
|
286,651
|
$
|
7,390
|
$
|
90,646
|
$
|
-
|
$
|
2,344,448
|
||||||||||||||||||||||
Ending Balance Individually Evaluated for Impairment
|
4,749
|
-
|
-
|
2,628
|
324
|
-
|
2,290
|
7
|
-
|
-
|
9,998
|
|||||||||||||||||||||||||||||||||
Ending Balance Collectively Evaluated for Impairment
|
$
|
747,294
|
$
|
540,852
|
$
|
94,223
|
$
|
259,176
|
$
|
37,345
|
$
|
273,170
|
$
|
284,361
|
$
|
7,383
|
$
|
90,646
|
$
|
-
|
$
|
2,334,450
|
June 30, 2019
|
Pass
|
Special
Mention
|
Substandard
|
Total Loans
& Leases
|
||||||||||||
Loans & Leases:
|
||||||||||||||||
Commercial Real Estate
|
$
|
811,627
|
$
|
2,123
|
$
|
-
|
$
|
813,750
|
||||||||
Agricultural Real Estate
|
591,191
|
2,523
|
12,062
|
605,776
|
||||||||||||
Real Estate Construction
|
93,539
|
-
|
-
|
93,539
|
||||||||||||
Residential 1st Mortgages
|
257,102
|
-
|
306
|
257,408
|
||||||||||||
Home Equity Lines & Loans
|
40,178
|
-
|
32
|
40,210
|
||||||||||||
Agricultural
|
278,794
|
5,254
|
810
|
284,858
|
||||||||||||
Commercial
|
377,794
|
3,212
|
1,186
|
382,192
|
||||||||||||
Consumer & Other
|
17,660
|
-
|
184
|
17,844
|
||||||||||||
Leases
|
103,321
|
-
|
-
|
103,321
|
||||||||||||
Total
|
$
|
2,571,206
|
$
|
13,112
|
$
|
14,580
|
$
|
2,598,898
|
December 31, 2018
|
Pass
|
Special
Mention
|
Substandard
|
Total Loans
& Leases
|
||||||||||||
Loans & Leases:
|
||||||||||||||||
Commercial Real Estate
|
$
|
823,983
|
$
|
2,566
|
$
|
-
|
$
|
826,549
|
||||||||
Agricultural Real Estate
|
566,612
|
4,703
|
13,310
|
584,625
|
||||||||||||
Real Estate Construction
|
98,568
|
-
|
-
|
98,568
|
||||||||||||
Residential 1st Mortgages
|
259,208
|
-
|
528
|
259,736
|
||||||||||||
Home Equity Lines & Loans
|
40,744
|
-
|
45
|
40,789
|
||||||||||||
Agricultural
|
284,561
|
5,433
|
469
|
290,463
|
||||||||||||
Commercial
|
343,085
|
163
|
586
|
343,834
|
||||||||||||
Consumer & Other
|
19,229
|
-
|
183
|
19,412
|
||||||||||||
Leases
|
107,265
|
-
|
-
|
107,265
|
||||||||||||
Total
|
$
|
2,543,255
|
$
|
12,865
|
$
|
15,121
|
$
|
2,571,241
|
June 30, 2018
|
Pass
|
Special
Mention
|
Substandard
|
Total Loans
& Leases
|
||||||||||||
Loans & Leases:
|
||||||||||||||||
Commercial Real Estate
|
$
|
749,467
|
$
|
2,576
|
$
|
-
|
$
|
752,043
|
||||||||
Agricultural Real Estate
|
524,259
|
10,521
|
6,072
|
540,852
|
||||||||||||
Real Estate Construction
|
85,638
|
8,585
|
-
|
94,223
|
||||||||||||
Residential 1st Mortgages
|
261,112
|
-
|
692
|
261,804
|
||||||||||||
Home Equity Lines & Loans
|
37,622
|
-
|
47
|
37,669
|
||||||||||||
Agricultural
|
266,837
|
5,050
|
1,283
|
273,170
|
||||||||||||
Commercial
|
285,113
|
283
|
1,255
|
286,651
|
||||||||||||
Consumer & Other
|
7,245
|
-
|
145
|
7,390
|
||||||||||||
Leases
|
88,677
|
1,969
|
-
|
90,646
|
||||||||||||
Total
|
$
|
2,305,970
|
$
|
28,984
|
$
|
9,494
|
$
|
2,344,448
|
June 30, 2019
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days and
Still Accruing
|
Nonaccrual
|
Total Past
Due
|
Current
|
Total
Loans & Leases
|
|||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
813,750
|
$
|
813,750
|
||||||||||||||
Agricultural Real Estate
|
-
|
-
|
-
|
-
|
-
|
605,776
|
605,776
|
|||||||||||||||||||||
Real Estate Construction
|
-
|
-
|
-
|
-
|
-
|
93,539
|
93,539
|
|||||||||||||||||||||
Residential 1st Mortgages
|
8
|
-
|
-
|
-
|
8
|
257,400
|
257,408
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
-
|
-
|
-
|
-
|
-
|
40,210
|
40,210
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
284,858
|
284,858
|
|||||||||||||||||||||
Commercial
|
75
|
150
|
-
|
-
|
225
|
381,967
|
382,192
|
|||||||||||||||||||||
Consumer & Other
|
18
|
-
|
-
|
-
|
18
|
17,826
|
17,844
|
|||||||||||||||||||||
Leases
|
-
|
-
|
-
|
-
|
-
|
103,321
|
103,321
|
|||||||||||||||||||||
Total
|
$
|
101
|
$
|
150
|
$
|
-
|
$
|
-
|
$
|
251
|
$
|
2,598,647
|
$
|
2,598,898
|
December 31, 2018
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days and
Still Accruing
|
Nonaccrual
|
Total Past
Due
|
Current
|
Total
Loans & Leases
|
|||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
-
|
$
|
731
|
$
|
-
|
$
|
-
|
$
|
731
|
$
|
825,818
|
$
|
826,549
|
||||||||||||||
Agricultural Real Estate
|
-
|
-
|
-
|
-
|
-
|
584,625
|
584,625
|
|||||||||||||||||||||
Real Estate Construction
|
327
|
-
|
-
|
-
|
327
|
98,241
|
98,568
|
|||||||||||||||||||||
Residential 1st Mortgages
|
367
|
-
|
-
|
-
|
367
|
259,369
|
259,736
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
-
|
-
|
-
|
-
|
-
|
40,789
|
40,789
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
290,463
|
290,463
|
|||||||||||||||||||||
Commercial
|
-
|
-
|
-
|
-
|
-
|
343,834
|
343,834
|
|||||||||||||||||||||
Consumer & Other
|
13
|
-
|
-
|
-
|
13
|
19,399
|
19,412
|
|||||||||||||||||||||
Leases
|
-
|
-
|
-
|
-
|
-
|
107,265
|
107,265
|
|||||||||||||||||||||
Total
|
$
|
707
|
$
|
731
|
$
|
-
|
$
|
-
|
$
|
1,438
|
$
|
2,569,803
|
$
|
2,571,241
|
June 30, 2018
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days and
Still Accruing
|
Nonaccrual
|
Total Past
Due
|
Current
|
Total
Loans & Leases
|
|||||||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
752,043
|
$
|
752,043
|
||||||||||||||
Agricultural Real Estate
|
-
|
-
|
-
|
-
|
-
|
540,852
|
540,852
|
|||||||||||||||||||||
Real Estate Construction
|
277
|
-
|
-
|
-
|
277
|
93,946
|
94,223
|
|||||||||||||||||||||
Residential 1st Mortgages
|
107
|
-
|
-
|
130
|
237
|
261,567
|
261,804
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
19
|
-
|
-
|
-
|
19
|
37,650
|
37,669
|
|||||||||||||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
-
|
273,170
|
273,170
|
|||||||||||||||||||||
Commercial
|
-
|
-
|
-
|
599
|
599
|
286,052
|
286,651
|
|||||||||||||||||||||
Consumer & Other
|
6
|
-
|
-
|
6
|
7,384
|
7,390
|
||||||||||||||||||||||
Leases
|
-
|
-
|
-
|
-
|
90,646
|
90,646
|
||||||||||||||||||||||
Total
|
$
|
409
|
$
|
-
|
$
|
-
|
$
|
729
|
$
|
1,138
|
$
|
2,343,310
|
$
|
2,344,448
|
Three Months Ended June 30, 2019
|
Six Months Ended June 30, 2019
|
|||||||||||||||||||||||||||
June 30, 2019
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
91
|
$
|
91
|
$
|
-
|
$
|
92
|
$
|
2
|
$
|
93
|
$
|
4
|
||||||||||||||
Agricultural Real Estate
|
5,702
|
5,702
|
-
|
6,471
|
128
|
6,855
|
201
|
|||||||||||||||||||||
Commercial
|
32
|
32
|
-
|
16
|
1
|
8
|
1
|
|||||||||||||||||||||
$
|
5,825
|
$
|
5,825
|
$
|
-
|
$
|
6,579
|
$
|
131
|
$
|
6,956
|
$
|
206
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
2,857
|
$
|
2,857
|
$
|
201
|
$
|
2,874
|
$
|
24
|
2,884
|
$
|
47
|
|||||||||||||||
Residential 1st Mortgages
|
1,614
|
1,820
|
81
|
1,620
|
17
|
1,627
|
38
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
71
|
82
|
3
|
72
|
1
|
73
|
2
|
|||||||||||||||||||||
Agricultural
|
196
|
196
|
98
|
199
|
2
|
150
|
2
|
|||||||||||||||||||||
Commercial
|
1,548
|
1,548
|
158
|
1,574
|
13
|
1,597
|
27
|
|||||||||||||||||||||
Consumer & Other
|
6
|
6
|
6
|
6
|
-
|
6
|
-
|
|||||||||||||||||||||
$
|
6,292
|
$
|
6,509
|
$
|
547
|
$
|
6,345
|
$
|
57
|
6,337
|
$
|
116
|
||||||||||||||||
Total
|
$
|
12,117
|
$
|
12,334
|
$
|
547
|
$
|
12,924
|
$
|
188
|
$
|
13,293
|
$
|
322
|
December 31, 2018
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial Real Estate
|
$
|
95
|
$
|
96
|
$
|
-
|
$
|
99
|
$
|
8
|
||||||||||
Agricultural Real Estate
|
7,239
|
7,238
|
-
|
3,620
|
119
|
|||||||||||||||
Residential 1st Mortgages
|
-
|
-
|
-
|
226
|
8
|
|||||||||||||||
$
|
7,334
|
$
|
7,334
|
$
|
-
|
$
|
3,945
|
$
|
135
|
|||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial Real Estate
|
$
|
2,902
|
$
|
2,892
|
$
|
234
|
$
|
2,929
|
$
|
96
|
||||||||||
Residential 1st Mortgages
|
1,640
|
1,838
|
82
|
1,371
|
48
|
|||||||||||||||
Home Equity Lines & Loans
|
74
|
84
|
4
|
76
|
4
|
|||||||||||||||
Commercial
|
1,644
|
1,639
|
185
|
1,834
|
58
|
|||||||||||||||
Consumer & Other
|
6
|
7
|
6
|
7
|
-
|
|||||||||||||||
$
|
6,266
|
$
|
6,460
|
$
|
511
|
$
|
6,217
|
$
|
206
|
|||||||||||
Total
|
$
|
13,600
|
$
|
13,794
|
$
|
511
|
$
|
10,162
|
$
|
341
|
Three Months Ended June 30, 2018
|
Six Months Ended June 30, 2018
|
|||||||||||||||||||||||||||
June 30, 2018
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
100
|
$
|
100
|
$
|
-
|
$
|
101
|
$
|
2
|
$
|
102
|
$
|
4
|
||||||||||||||
Residential 1st Mortgages
|
-
|
-
|
-
|
452
|
-
|
680
|
8
|
|||||||||||||||||||||
$
|
100
|
$
|
100
|
$
|
-
|
$
|
553
|
$
|
2
|
$
|
782
|
$
|
12
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||||||
Commercial Real Estate
|
$
|
2,938
|
$
|
2,927
|
$
|
333
|
$
|
2,947
|
$
|
24
|
2,956
|
$
|
48
|
|||||||||||||||
Residential 1st Mortgages
|
1,698
|
1,877
|
85
|
1,141
|
13
|
844
|
20
|
|||||||||||||||||||||
Home Equity Lines & Loans
|
76
|
86
|
3
|
77
|
1
|
77
|
2
|
|||||||||||||||||||||
Commercial
|
2,297
|
2,290
|
487
|
2,009
|
15
|
1,870
|
30
|
|||||||||||||||||||||
Consumer & Other
|
7
|
8
|
7
|
8
|
-
|
8
|
-
|
|||||||||||||||||||||
$
|
7,016
|
$
|
7,188
|
$
|
915
|
$
|
6,182
|
$
|
53
|
5,755
|
$
|
100
|
||||||||||||||||
Total
|
$
|
7,116
|
$
|
7,288
|
$
|
915
|
$
|
6,735
|
$
|
55
|
$
|
6,537
|
$
|
112
|
Three Months Ended June 30, 2019
|
Six Months Ended June 30, 2019
|
|||||||||||||||||||||||
Troubled Debt Restructurings
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||||||||||
Agricultural
|
-
|
$
|
-
|
$
|
-
|
1
|
$
|
201
|
$
|
201
|
||||||||||||||
Total
|
-
|
$
|
-
|
$
|
-
|
1
|
$
|
201
|
$
|
201
|
Year ended December 31, 2018
|
||||||||||||
Troubled Debt Restructurings
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
|||||||||
Agricultural Real Estate
|
1
|
$
|
7,239
|
$
|
7,239
|
|||||||
Residential 1st Mortgages
|
2
|
286
|
255
|
|||||||||
Total
|
3
|
$
|
7,525
|
$
|
7,494
|
Three Months Ended June 30, 2018
|
Six Months Ended June 30, 2018
|
|||||||||||||||||||||||
Troubled Debt Restructurings
|
Number
of Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number of
Loans
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||||||||||
Residential 1st Mortgages
|
1
|
$
|
175
|
$
|
163
|
1
|
$
|
175
|
$
|
163
|
||||||||||||||
Total
|
1
|
$
|
175
|
$
|
163
|
1
|
$
|
175
|
$
|
163
|
Fair Value Measurements
At June 30, 2019, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Available-for-Sale Securities:
|
||||||||||||||||
Government Agency & Government-Sponsored Entities
|
$
|
3,014
|
$
|
-
|
$
|
3,014
|
$
|
-
|
||||||||
US Treasury Notes
|
174,908
|
174,908
|
-
|
-
|
||||||||||||
US Government Agency SBA
|
13,198
|
-
|
13,198
|
-
|
||||||||||||
Mortgage Backed Securities
|
292,161
|
-
|
292,161
|
-
|
||||||||||||
Other
|
4,812
|
203
|
310
|
4,299
|
||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis
|
$
|
488,093
|
$
|
175,111
|
$
|
308,683
|
$
|
4,299
|
Fair Value Measurements
At December 31, 2018, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Available-for-Sale Securities:
|
||||||||||||||||
Government Agency & Government-Sponsored Entities
|
$
|
3,039
|
$
|
-
|
$
|
3,039
|
$
|
-
|
||||||||
US Treasury Notes
|
164,514
|
164,514
|
-
|
-
|
||||||||||||
US Government Agency SBA
|
15,447
|
-
|
15,447
|
-
|
||||||||||||
Mortgage Backed Securities
|
307,045
|
-
|
307,045
|
-
|
||||||||||||
Other
|
5,351
|
202
|
310
|
4,839
|
||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis
|
$
|
495,396
|
$
|
164,716
|
$
|
325,841
|
$
|
4,839
|
Fair Value Measurements
At June 30, 2018, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Available-for-Sale Securities:
|
||||||||||||||||
Government Agency & Government-Sponsored Entities
|
$
|
3,071
|
$
|
-
|
$
|
3,071
|
$
|
-
|
||||||||
US Treasury Notes
|
139,275
|
139,275
|
-
|
-
|
||||||||||||
US Government Agency SBA
|
18,403
|
-
|
18,403
|
-
|
||||||||||||
Mortgage Backed Securities
|
286,414
|
-
|
286,414
|
-
|
||||||||||||
Other
|
3,011
|
201
|
310
|
2,500
|
||||||||||||
Total Assets Measured at Fair Value On a Recurring Basis
|
$
|
450,174
|
$
|
139,476
|
$
|
308,198
|
$
|
2,500
|
Net Realized / Unrealized
Gains (Losses)
|
||||||||||||||||||||||||
(in thousands)
|
Balance at
Beginning
of Period
|
Purchases
/Additions
|
Sales /
Reductions
|
Realized
|
Unrealized
|
Balance at
End of
Period
|
||||||||||||||||||
Three months ended June 30, 2019
|
||||||||||||||||||||||||
Available-for-sale debt securities:
|
$
|
1,397
|
$
|
219
|
$
|
453
|
$
|
-
|
$
|
-
|
$
|
1,163
|
||||||||||||
Equity securities:
|
$
|
3,246
|
$
|
80
|
$
|
190
|
$
|
-
|
$
|
-
|
$
|
3,136
|
||||||||||||
Total
|
$
|
4,643
|
$
|
299
|
$
|
643
|
$
|
-
|
$
|
-
|
$
|
4,299
|
||||||||||||
Six months ended June 30, 2019
|
||||||||||||||||||||||||
Available-for-sale debt securities:
|
$
|
1,593
|
$
|
698
|
$
|
1,128
|
$
|
-
|
$
|
-
|
$
|
1,163
|
||||||||||||
Equity securities:
|
$
|
3,246
|
$
|
80
|
$
|
190
|
$
|
-
|
$
|
-
|
$
|
3,136
|
||||||||||||
Total
|
$
|
4,839
|
$
|
778
|
$
|
1,318
|
$
|
-
|
$
|
-
|
$
|
4,299
|
Fair Value Measurements
At June 30, 2019, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Impaired Loans
|
||||||||||||||||
Commercial Real Estate
|
$
|
2,656
|
$
|
-
|
$
|
-
|
$
|
2,656
|
||||||||
Residential 1st Mortgage
|
1,530
|
-
|
-
|
1,530
|
||||||||||||
Home Equity Lines and Loans
|
67
|
-
|
-
|
67
|
||||||||||||
Agricultural
|
98
|
-
|
-
|
98
|
||||||||||||
Commercial
|
1,390
|
-
|
-
|
1,390
|
||||||||||||
Total Impaired Loans
|
5,741
|
-
|
-
|
5,741
|
||||||||||||
Other Real Estate
|
||||||||||||||||
Real Estate Construction
|
873
|
-
|
-
|
873
|
||||||||||||
Total Other Real Estate
|
873
|
-
|
-
|
873
|
||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis
|
$
|
6,614
|
$
|
-
|
$
|
-
|
$
|
6,614
|
Fair Value Measurements
At December 31, 2018, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial Real Estate
|
$
|
2,658
|
$
|
-
|
$
|
-
|
$
|
2,658
|
||||||||
Residential 1st Mortgage
|
1,550
|
-
|
-
|
1,550
|
||||||||||||
Home Equity Lines and Loans
|
70
|
-
|
-
|
70
|
||||||||||||
Commercial
|
1,454
|
-
|
-
|
1,454
|
||||||||||||
Total Impaired Loans
|
5,732
|
-
|
-
|
5,732
|
||||||||||||
Other Real Estate:
|
||||||||||||||||
Real Estate Construction
|
873
|
-
|
-
|
873
|
||||||||||||
Total Other Real Estate
|
873
|
-
|
-
|
873
|
||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis
|
$
|
6,605
|
$
|
-
|
$
|
-
|
$
|
6,605
|
Fair Value Measurements
At June 30, 2018, Using
|
||||||||||||||||
(in thousands)
|
Fair Value
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Impaired Loans
|
||||||||||||||||
Commercial Real Estate
|
$
|
2,594
|
$
|
-
|
$
|
-
|
$
|
2,594
|
||||||||
Residential 1st Mortgage
|
1,485
|
-
|
-
|
1,485
|
||||||||||||
Home Equity Lines and Loans
|
72
|
-
|
-
|
72
|
||||||||||||
Commercial
|
1,490
|
-
|
-
|
1,490
|
||||||||||||
Total Impaired Loans
|
5,641
|
-
|
-
|
5,641
|
||||||||||||
Other Real Estate
|
||||||||||||||||
Real Estate Construction
|
873
|
-
|
-
|
873
|
||||||||||||
Total Other Real Estate
|
873
|
-
|
-
|
873
|
||||||||||||
Total Assets Measured at Fair Value On a Non-Recurring Basis
|
$
|
6,514
|
$
|
-
|
$
|
-
|
$
|
6,514
|
June 30, 2019
(in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range, Weighted Avg.
|
||||||
Impaired Loans
|
||||||||||
Commercial Real Estate
|
$
|
2,656
|
Income Approach
|
Capitalization Rate
|
3.25%, 3.25
|
%
|
||||
Residential 1st Mortgage
|
$
|
1,530
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
1% - 4%, 2.83
|
%
|
||||
Home Equity Lines and Loans
|
$
|
67
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
1% - 2%, 1.40
|
%
|
||||
Agricultural
|
$
|
98
|
Income Approach
|
Capitalization Rate
|
5.10%, 5.10
|
%
|
||||
Commercial
|
$
|
1,390
|
Income Approach
|
Capitalization Rate
|
3.25%, 3.25
|
%
|
||||
Other Real Estate
|
||||||||||
Real Estate Construction
|
$
|
873
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
10%, 10
|
%
|
December 31, 2018
(in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range, Weighted Avg.
|
||||||
Impaired Loans:
|
||||||||||
Commercial Real Estate
|
$
|
2,658
|
Income Approach
|
Capitalization Rate
|
3.25%, 3.25
|
%
|
||||
Residential 1st Mortgages
|
$
|
1,550
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
1% - 4%, 3
|
%
|
||||
Home Equity Lines and Loans
|
$
|
70
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
1% - 2%, 2
|
%
|
||||
Commercial
|
$
|
1,454
|
Income Approach
|
Capitalization Rate
|
2.95% - 8.70%, 3.40
|
%
|
||||
Other Real Estate:
|
||||||||||
Real Estate Construction
|
$
|
873
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
10%, 10
|
%
|
June 30, 2018
(in thousands)
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range, Weighted Avg.
|
||||||
Impaired Loans
|
||||||||||
Commercial Real Estate
|
$
|
2,594
|
Income Approach
|
Capitalization Rate
|
3.25%, 3.25
|
%
|
||||
Residential 1st Mortgage
|
$
|
1,485
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
1% -4%, 3
|
%
|
||||
Home Equity Lines and Loans
|
$
|
72
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
1% - 2%, 1
|
%
|
||||
Commercial
|
$
|
1,490
|
Income Approach
|
Capitalization Rate
|
2.95% - 8.70%, 3.40
|
%
|
||||
Other Real Estate
|
||||||||||
Real Estate Construction
|
$
|
873
|
Sales Comparison Approach
|
Adjustment for Difference Between Comparable Sales
|
10%, 10
|
%
|
Fair Value of Financial Instruments Using
|
||||||||||||||||||||
June 30, 2019
(in thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Estimated
Fair Value
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
114,717
|
$
|
114,717
|
$
|
-
|
$
|
-
|
$
|
114,717
|
||||||||||
Investment Securities Available-for-Sale
|
488,093
|
175,111
|
308,683
|
4,299
|
488,093
|
|||||||||||||||
Investment Securities Held-to-Maturity
|
60,310
|
-
|
25,754
|
35,400
|
61,154
|
|||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance
|
2,543,773
|
-
|
-
|
2,527,799
|
2,527,799
|
|||||||||||||||
Accrued Interest Receivable
|
15,688
|
-
|
15,688
|
-
|
15,688
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
3,025,276
|
2,505,769
|
517,607
|
-
|
3,023,376
|
|||||||||||||||
Subordinated Debentures
|
10,310
|
-
|
7,431
|
-
|
7,431
|
|||||||||||||||
Accrued Interest Payable
|
2,465
|
-
|
2,465
|
-
|
2,465
|
Fair Value of Financial Instruments Using
|
||||||||||||||||||||
December 31, 2018
(in thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Estimated
Fair Value
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
145,564
|
$
|
145,564
|
$
|
-
|
$
|
-
|
$
|
145,564
|
||||||||||
Investment Securities Available-for-Sale
|
495,396
|
164,716
|
325,841
|
4,839
|
495,396
|
|||||||||||||||
Investment Securities Held-to-Maturity
|
53,566
|
-
|
35,083
|
18,655
|
53,738
|
|||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance
|
2,515,975
|
-
|
-
|
2,485,182
|
2,485,182
|
|||||||||||||||
Accrued Interest Receivable
|
14,098
|
-
|
14,098
|
-
|
14,098
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
3,062,832
|
2,572,805
|
485,766
|
-
|
3,058,571
|
|||||||||||||||
Subordinated Debentures
|
10,310
|
-
|
7,745
|
-
|
7,745
|
|||||||||||||||
Accrued Interest Payable
|
1,365
|
-
|
1,365
|
-
|
1,365
|
Fair Value of Financial Instruments Using
|
||||||||||||||||||||
June 30, 2018
(in thousands)
|
Carrying
Amount
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Estimated
Fair Value
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and Cash Equivalents
|
$
|
106,899
|
$
|
106,899
|
$
|
-
|
$
|
-
|
$
|
106,899
|
||||||||||
Investment Securities Available-for-Sale
|
450,174
|
139,476
|
308,198
|
2,500
|
450,174
|
|||||||||||||||
|
||||||||||||||||||||
Investment Securities Held-to-Maturity
|
52,210
|
-
|
36,693
|
15,665
|
52,358
|
|||||||||||||||
Loans & Leases, Net of Deferred Fees & Allowance
|
2,293,311
|
-
|
-
|
2,253,733
|
2,253,733
|
|||||||||||||||
Accrued Interest Receivable
|
11,548
|
-
|
11,548
|
-
|
11,548
|
|||||||||||||||
Liabilities:
|
||||||||||||||||||||
Deposits
|
2,697,273
|
2,231,153
|
462,040
|
-
|
2,693,193
|
|||||||||||||||
Subordinated Debentures
|
10,310
|
-
|
7,639
|
-
|
7,639
|
|||||||||||||||
Accrued Interest Payable
|
827
|
-
|
827
|
-
|
827
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
(net income in thousands)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net Income
|
$
|
14,105
|
$
|
10,550
|
$
|
27,654
|
$
|
20,491
|
||||||||
Weighted Average Number of Common Shares Outstanding
|
787,307
|
817,893
|
785,881
|
815,114
|
||||||||||||
Basic Earnings Per Common Share Amount
|
$
|
17.92
|
$
|
12.90
|
$
|
35.19
|
$
|
25.14
|
(in thousands except for percent and period data)
|
Three Months Ended
June 30, 2019
|
Six Months Ended
June 30, 2019
|
||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
|
||||||||
Operating Cash Flow from Operating Leases
|
$
|
197
|
$
|
393
|
||||
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities
|
$
|
916
|
$
|
5,645
|
||||
Weighted-Average Remaining Lease Term - Operating Leases, in Years
|
8.30
|
8.30
|
||||||
Weighted-Average Discount Rate - Operating Leases
|
3.2
|
%
|
3.2
|
%
|
(in thousands)
|
June 30, 2019
|
|||
2019
|
$
|
390
|
||
2020
|
795
|
|||
2021
|
719
|
|||
2022
|
686
|
|||
2023
|
697
|
|||
2024 and thereafter
|
2,811
|
|||
Total Lease Payments
|
6,098
|
|||
Less: Interest
|
(760
|
)
|
||
Present Value of Lease Liabilities
|
$
|
5,338
|
• |
Net income increased 35.0% to $27,654,000 from $20,491,000.
|
• |
Earnings per share increased 40.0% to $35.19 from $25.14.
|
• |
Total assets increased 10.9% to $3.43 billion from $3.10 billion.
|
• |
Total loans & leases increased 10.9% to $2.60 billion from $2.34 billion.
|
• |
Total deposits increased 12.2% to $3.02 billion from $2.69 billion.
|
• |
A $10.2 million increase in net interest income related to the growth in earning assets and the improvement in the net interest margin.
|
• |
A $633,000 decrease in the provision for credit losses.
|
• |
A $1.3 million decrease in the net loss on the sale of investment securities during the first half of the prior year (2018).
|
• |
A $1.6 million increase in salaries and employee benefits.
|
• |
A $428,000 increase in legal expenses.
|
• |
A $2.6 million increase in net income before taxes.
|
Three Months Ended June 30,
2019
|
Three Months Ended June 30,
2018
|
|||||||||||||||||||||||
Assets
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest Bearing Deposits with Banks
|
$
|
193,623
|
$
|
1,161
|
2.41
|
%
|
$
|
114,300
|
$
|
515
|
1.81
|
%
|
||||||||||||
Investment Securities:
|
||||||||||||||||||||||||
U.S. Treasuries
|
23,360
|
131
|
2.24
|
%
|
66,953
|
250
|
1.49
|
%
|
||||||||||||||||
U.S. Govt SBA
|
14,098
|
97
|
2.75
|
%
|
26,906
|
119
|
1.77
|
%
|
||||||||||||||||
Government Agency & Government-Sponsored Entities
|
3,016
|
22
|
2.92
|
%
|
3,064
|
22
|
2.87
|
%
|
||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable
(1)
|
60,387
|
638
|
4.23
|
%
|
53,037
|
510
|
3.85
|
%
|
||||||||||||||||
Mortgage Backed Securities
|
297,467
|
1,952
|
2.62
|
%
|
316,991
|
1,904
|
2.40
|
%
|
||||||||||||||||
Other
|
4,968
|
42
|
3.38
|
%
|
3,010
|
20
|
2.66
|
%
|
||||||||||||||||
Total Investment Securities
|
403,296
|
2,882
|
2.86
|
%
|
469,961
|
2,825
|
2.40
|
%
|
||||||||||||||||
Loans & Leases:
(2)
|
||||||||||||||||||||||||
Real Estate
|
1,761,806
|
23,556
|
5.36
|
%
|
1,604,920
|
20,152
|
5.05
|
%
|
||||||||||||||||
Home Equity Lines & Loans
|
39,996
|
605
|
6.07
|
%
|
35,697
|
483
|
5.44
|
%
|
||||||||||||||||
Agricultural
|
269,980
|
3,848
|
5.72
|
%
|
262,230
|
3,339
|
5.12
|
%
|
||||||||||||||||
Commercial
|
373,910
|
5,027
|
5.39
|
%
|
286,123
|
3,755
|
5.28
|
%
|
||||||||||||||||
Consumer
|
17,277
|
255
|
5.92
|
%
|
5,783
|
66
|
4.59
|
%
|
||||||||||||||||
Other
|
1,079
|
6
|
2.23
|
%
|
1,382
|
7
|
2.04
|
%
|
||||||||||||||||
Leases
|
105,953
|
1,419
|
5.37
|
%
|
90,836
|
1,125
|
4.98
|
%
|
||||||||||||||||
Total Loans & Leases
|
2,570,001
|
34,716
|
5.42
|
%
|
2,286,971
|
28,927
|
5.09
|
%
|
||||||||||||||||
Total Earning Assets
|
3,166,920
|
$
|
38,759
|
4.91
|
%
|
2,871,232
|
$
|
32,267
|
4.52
|
%
|
||||||||||||||
Unrealized Gain on Securities Available-for-Sale
|
(437
|
)
|
(8,660
|
)
|
||||||||||||||||||||
Allowance for Credit Losses
|
(55,056
|
)
|
(50,882
|
)
|
||||||||||||||||||||
Cash and Due From Banks
|
54,382
|
45,430
|
||||||||||||||||||||||
All Other Assets
|
223,249
|
193,197
|
||||||||||||||||||||||
Total Assets
|
$
|
3,389,058
|
$
|
3,050,317
|
||||||||||||||||||||
Liabilities & Shareholders’ Equity
|
||||||||||||||||||||||||
Interest Bearing Deposits:
|
||||||||||||||||||||||||
Interest Bearing DDA
|
$
|
649,230
|
574
|
0.35
|
%
|
$
|
585,363
|
305
|
0.21
|
%
|
||||||||||||||
Savings and Money Market
|
900,327
|
797
|
0.36
|
%
|
814,536
|
333
|
0.16
|
%
|
||||||||||||||||
Time Deposits
|
517,896
|
1,741
|
1.35
|
%
|
471,320
|
891
|
0.76
|
%
|
||||||||||||||||
Total Interest Bearing Deposits
|
2,067,453
|
3,112
|
0.60
|
%
|
1,871,219
|
1,529
|
0.33
|
%
|
||||||||||||||||
Subordinated Debentures
|
10,310
|
141
|
5.49
|
%
|
10,310
|
131
|
5.11
|
%
|
||||||||||||||||
Total Interest Bearing Liabilities
|
2,077,763
|
$
|
3,253
|
0.63
|
%
|
1,881,529
|
$
|
1,660
|
0.35
|
%
|
||||||||||||||
Interest Rate Spread
(3)
|
4.28
|
%
|
4.17
|
%
|
||||||||||||||||||||
Demand Deposits (Non-Interest Bearing)
|
920,627
|
810,962
|
||||||||||||||||||||||
All Other Liabilities
|
56,473
|
47,971
|
||||||||||||||||||||||
Total Liabilities
|
3,054,863
|
2,740,462
|
||||||||||||||||||||||
Shareholders’ Equity
|
334,195
|
309,855
|
||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity
|
$
|
3,389,058
|
$
|
3,050,317
|
||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets
(4)
|
35,506
|
4.50
|
%
|
30,607
|
4.29
|
%
|
||||||||||||||||||
Tax Equivalent Adjustment
|
(132
|
)
|
(106
|
)
|
||||||||||||||||||||
Net Interest Income
|
$
|
35,374
|
4.48
|
%
|
$
|
30,501
|
4.27
|
%
|
Six Months Ended June 30,
2019
|
Six Months Ended June 30,
2018
|
|||||||||||||||||||||||
Assets
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
Interest Bearing Deposits with Banks
|
$
|
190,559
|
$
|
2,286
|
2.42
|
%
|
$
|
133,512
|
$
|
1,100
|
1.66
|
%
|
||||||||||||
Investment Securities:
|
||||||||||||||||||||||||
U.S. Treasuries
|
34,924
|
326
|
1.87
|
%
|
79,461
|
547
|
1.38
|
%
|
||||||||||||||||
U.S. Govt SBA
|
14,671
|
196
|
2.67
|
%
|
27,823
|
242
|
1.74
|
%
|
||||||||||||||||
Government Agency & Government-Sponsored Entities
|
3,022
|
44
|
2.91
|
%
|
3,069
|
44
|
2.87
|
%
|
||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable
(1)
|
57,251
|
1,197
|
4.18
|
%
|
53,858
|
1,039
|
3.86
|
%
|
||||||||||||||||
Mortgage Backed Securities
|
302,244
|
3,996
|
2.64
|
%
|
319,628
|
3,824
|
2.39
|
%
|
||||||||||||||||
Other
|
5,075
|
109
|
4.30
|
%
|
3,010
|
38
|
2.52
|
%
|
||||||||||||||||
Total Investment Securities
|
417,187
|
5,868
|
2.81
|
%
|
486,849
|
5,734
|
2.36
|
%
|
||||||||||||||||
Loans & Leases:
(2)
|
||||||||||||||||||||||||
Real Estate
|
1,770,288
|
46,249
|
5.27
|
%
|
1,576,795
|
39,196
|
5.01
|
%
|
||||||||||||||||
Home Equity Lines & Loans
|
39,804
|
1,201
|
6.08
|
%
|
35,219
|
931
|
5.33
|
%
|
||||||||||||||||
Agricultural
|
264,574
|
7,476
|
5.70
|
%
|
257,036
|
6,367
|
5.00
|
%
|
||||||||||||||||
Commercial
|
358,763
|
9,548
|
5.37
|
%
|
277,128
|
7,066
|
5.14
|
%
|
||||||||||||||||
Consumer
|
17,524
|
509
|
5.86
|
%
|
5,539
|
142
|
5.17
|
%
|
||||||||||||||||
Other
|
1,079
|
12
|
2.24
|
%
|
1,382
|
15
|
2.19
|
%
|
||||||||||||||||
Leases
|
106,905
|
2,898
|
5.47
|
%
|
91,028
|
2,254
|
4.99
|
%
|
||||||||||||||||
Total Loans & Leases
|
2,558,937
|
67,893
|
5.35
|
%
|
2,244,127
|
55,971
|
5.03
|
%
|
||||||||||||||||
Total Earning Assets
|
3,166,683
|
$
|
76,047
|
4.84
|
%
|
2,864,488
|
$
|
62,805
|
4.42
|
%
|
||||||||||||||
Unrealized Gain on Securities Available-for-Sale
|
(2,219
|
)
|
(6,756
|
)
|
||||||||||||||||||||
Allowance for Credit Losses
|
(55,147
|
)
|
(50,748
|
)
|
||||||||||||||||||||
Cash and Due From Banks
|
55,289
|
45,975
|
||||||||||||||||||||||
All Other Assets
|
220,571
|
190,269
|
||||||||||||||||||||||
Total Assets
|
$
|
3,385,177
|
$
|
3,043,228
|
||||||||||||||||||||
Liabilities & Shareholders’ Equity
|
||||||||||||||||||||||||
Interest Bearing Deposits:
|
||||||||||||||||||||||||
Interest Bearing DDA
|
$
|
658,297
|
$
|
1,126
|
0.34
|
%
|
$
|
585,270
|
$
|
577
|
0.20
|
%
|
||||||||||||
Savings and Money Market
|
905,531
|
1,527
|
0.34
|
%
|
819,995
|
663
|
0.16
|
%
|
||||||||||||||||
Time Deposits
|
515,886
|
3,280
|
1.28
|
%
|
475,010
|
1,694
|
0.72
|
%
|
||||||||||||||||
Total Interest Bearing Deposits
|
2,079,714
|
5,933
|
0.58
|
%
|
1,880,275
|
2,934
|
0.31
|
%
|
||||||||||||||||
Federal Home Loan Bank Advances
|
2
|
-
|
0.00
|
%
|
2
|
-
|
0.00
|
%
|
||||||||||||||||
Subordinated Debentures
|
10,310
|
286
|
5.59
|
%
|
10,310
|
248
|
4.85
|
%
|
||||||||||||||||
Total Interest Bearing Liabilities
|
2,090,026
|
$
|
6,219
|
0.60
|
%
|
1,890,587
|
$
|
3,182
|
0.34
|
%
|
||||||||||||||
Interest Rate Spread
(3)
|
4.24
|
%
|
4.08
|
%
|
||||||||||||||||||||
Demand Deposits (Non-Interest Bearing)
|
918,280
|
803,155
|
||||||||||||||||||||||
All Other Liabilities
|
50,006
|
43,279
|
||||||||||||||||||||||
Total Liabilities
|
3,058,312
|
2,737,021
|
||||||||||||||||||||||
Shareholders’ Equity
|
326,865
|
306,207
|
||||||||||||||||||||||
Total Liabilities & Shareholders’ Equity
|
$
|
3,385,177
|
$
|
3,043,228
|
||||||||||||||||||||
Net Interest Income and Margin on Total Earning Assets
(4)
|
69,828
|
4.45
|
%
|
59,623
|
4.20
|
%
|
||||||||||||||||||
Tax Equivalent Adjustment
|
(248
|
)
|
(216
|
)
|
||||||||||||||||||||
Net Interest Income
|
$
|
69,580
|
4.43
|
%
|
$
|
59,407
|
4.18
|
%
|
(in thousands)
|
Three Months Ended
June 30, 2019 compared to June 30, 2018
|
Six Months Ended
June 30, 2019 compared to June 30, 2018
|
||||||||||||||||||||||
Interest Earning Assets
|
Volume
|
Rate
|
Net Chg.
|
Volume
|
Rate
|
Net Chg.
|
||||||||||||||||||
Interest Bearing Deposits with Banks
|
$
|
437
|
$
|
209
|
$
|
646
|
$
|
573
|
$
|
613
|
$
|
1,186
|
||||||||||||
Investment Securities:
|
||||||||||||||||||||||||
U.S. Treasuries
|
(209
|
)
|
90
|
(119
|
)
|
(374
|
)
|
153
|
(221
|
)
|
||||||||||||||
U.S. Govt SBA
|
(71
|
)
|
49
|
(22
|
)
|
(142
|
)
|
96
|
(46
|
)
|
||||||||||||||
Government Agency & Government-Sponsored Entities
|
-
|
-
|
-
|
(1
|
)
|
1
|
-
|
|||||||||||||||||
Obligations of States and Political Subdivisions - Non-Taxable
|
75
|
53
|
128
|
68
|
90
|
158
|
||||||||||||||||||
Mortgage Backed Securities
|
(121
|
)
|
169
|
48
|
(216
|
)
|
388
|
172
|
||||||||||||||||
Other
|
16
|
6
|
22
|
35
|
36
|
71
|
||||||||||||||||||
Total Investment Securities
|
(310
|
)
|
367
|
57
|
(630
|
)
|
764
|
134
|
||||||||||||||||
Loans & Leases:
|
||||||||||||||||||||||||
Real Estate
|
2,084
|
1,319
|
3,403
|
4,984
|
2,069
|
7,053
|
||||||||||||||||||
Home Equity Lines & Loans
|
62
|
60
|
122
|
129
|
141
|
270
|
||||||||||||||||||
Agricultural
|
103
|
406
|
509
|
191
|
918
|
1,109
|
||||||||||||||||||
Commercial
|
1,188
|
84
|
1,272
|
2,161
|
321
|
2,482
|
||||||||||||||||||
Consumer
|
165
|
24
|
189
|
346
|
21
|
367
|
||||||||||||||||||
Other
|
(2
|
)
|
1
|
(1
|
)
|
(3
|
)
|
-
|
(3
|
)
|
||||||||||||||
Leases
|
200
|
94
|
294
|
417
|
227
|
644
|
||||||||||||||||||
Total Loans & Leases
|
3,800
|
1,988
|
5,788
|
8,225
|
3,697
|
11,922
|
||||||||||||||||||
Total Earning Assets
|
3,927
|
2,564
|
6,491
|
8,168
|
5,074
|
13,242
|
||||||||||||||||||
Interest Bearing Liabilities
|
||||||||||||||||||||||||
Interest Bearing Deposits:
|
||||||||||||||||||||||||
Interest Bearing DDA
|
37
|
232
|
269
|
80
|
469
|
549
|
||||||||||||||||||
Savings and Money Market
|
39
|
425
|
464
|
76
|
788
|
864
|
||||||||||||||||||
Time
|
96
|
754
|
850
|
157
|
1,429
|
1,586
|
||||||||||||||||||
Total Interest Bearing Deposits
|
172
|
1,411
|
1,583
|
313
|
2,686
|
2,999
|
||||||||||||||||||
Subordinated Debentures
|
-
|
10
|
10
|
-
|
38
|
38
|
||||||||||||||||||
Total Interest Bearing Liabilities
|
172
|
1,421
|
1,593
|
313
|
2,724
|
3,037
|
||||||||||||||||||
Total Change on a Tax Equivalent Basis
|
$
|
3,755
|
$
|
1,143
|
$
|
4,898
|
$
|
7,855
|
$
|
2,350
|
$
|
10,205
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(in thousands)
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Balance at Beginning of Period
|
$
|
54,907
|
$
|
50,677
|
$
|
55,266
|
$
|
50,342
|
||||||||
Charge-Offs
|
(18
|
)
|
(67
|
)
|
(418
|
)
|
(88
|
)
|
||||||||
Recoveries
|
36
|
27
|
77
|
50
|
||||||||||||
Provision
|
200
|
500
|
200
|
833
|
||||||||||||
Balance at End of Period
|
$
|
55,125
|
$
|
51,137
|
$
|
55,125
|
$
|
51,137
|
June 30, 2019
|
Commercial Real
Estate
|
Agricultural
Real Estate
|
Real Estate
Construction
|
Residential 1st
Mortgages
|
Home Equity
Lines & Loans
|
Agricultural
|
Commercial
|
Consumer &
Other
|
Leases
|
Unallocated
|
Total
|
|||||||||||||||||||||||||||||||||
Year-To-Date Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- January 1, 2019
|
$
|
11,609
|
$
|
14,092
|
$
|
1,249
|
$
|
880
|
$
|
2,761
|
$
|
8,242
|
$
|
11,656
|
$
|
494
|
$
|
4,022
|
$
|
261
|
$
|
55,266
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
-
|
-
|
-
|
(379
|
)
|
(39
|
)
|
-
|
-
|
(418
|
)
|
||||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
6
|
11
|
11
|
23
|
26
|
-
|
-
|
77
|
|||||||||||||||||||||||||||||||||
Provision
|
(929
|
)
|
480
|
448
|
(22
|
)
|
(29
|
)
|
(772
|
)
|
967
|
(17
|
)
|
(922
|
)
|
996
|
200
|
|||||||||||||||||||||||||||
Ending Balance- June 30, 2019
|
$
|
10,680
|
$
|
14,572
|
$
|
1,697
|
$
|
864
|
$
|
2,743
|
$
|
7,481
|
$
|
12,267
|
$
|
464
|
$
|
3,100
|
$
|
1,257
|
$
|
55,125
|
||||||||||||||||||||||
Second Quarter Allowance for Credit Losses:
|
||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance- April 1, 2019
|
$
|
11,400
|
$
|
14,493
|
$
|
1,207
|
$
|
863
|
$
|
2,738
|
$
|
7,448
|
$
|
11,933
|
$
|
467
|
$
|
4,008
|
$
|
350
|
$
|
54,907
|
||||||||||||||||||||||
Charge-Offs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(18
|
)
|
-
|
-
|
(18
|
)
|
|||||||||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
3
|
5
|
4
|
12
|
12
|
-
|
-
|
36
|
|||||||||||||||||||||||||||||||||
Provision
|
(720
|
)
|
79
|
490
|
(2
|
)
|
-
|
29
|
322
|
3
|
(908
|
)
|
907
|
200
|
||||||||||||||||||||||||||||||
Ending Balance- June 30, 2019
|
$
|
10,680
|
$
|
14,572
|
$
|
1,697
|
$
|
864
|
$
|
2,743
|
$
|
7,481
|
$
|
12,267
|
$
|
464
|
$
|
3,100
|
$
|
1,257
|
$
|
55,125
|
|
• |
The allowance for commercial real estate loans, agricultural loans and leases decreased primarily due to decreases in loan balances in these portfolio segments.
|
|
• |
The allowance for commercial loans increased primarily due to balance increases along with a $3.65 million increase in special mention and substandard loans in this portfolio segment.
|
|
• |
The allowance for agricultural real estate loans increased primarily due to increases in loan balances in this portfolio segment.
|
Loan & Lease Portfolio
|
June 30, 2019
|
December 31, 2018
|
June 30, 2018
|
|||||||||||||||||||||
(in thousands)
|
$
|
|
%
|
$ |
|
%
|
$ |
|
%
|
|||||||||||||||
Commercial Real Estate
|
$
|
821,472
|
31.5
|
%
|
$
|
834,476
|
32.4
|
%
|
$
|
759,389
|
32.3
|
%
|
||||||||||||
Agricultural Real Estate
|
605,776
|
23.2
|
%
|
584,625
|
22.7
|
%
|
540,852
|
23.0
|
%
|
|||||||||||||||
Real Estate Construction
|
93,539
|
3.6
|
%
|
98,568
|
3.8
|
%
|
94,223
|
4.0
|
%
|
|||||||||||||||
Residential 1st Mortgages
|
257,408
|
9.9
|
%
|
259,736
|
10.1
|
%
|
261,804
|
11.1
|
%
|
|||||||||||||||
Home Equity Lines and Loans
|
40,210
|
1.5
|
%
|
40,789
|
1.6
|
%
|
37,669
|
1.6
|
%
|
|||||||||||||||
Agricultural
|
284,858
|
10.9
|
%
|
290,463
|
11.3
|
%
|
273,170
|
11.6
|
%
|
|||||||||||||||
Commercial
|
382,192
|
14.7
|
%
|
343,834
|
13.3
|
%
|
286,651
|
12.2
|
%
|
|||||||||||||||
Consumer & Other
|
17,844
|
0.7
|
%
|
19,412
|
0.8
|
%
|
7,390
|
0.3
|
%
|
|||||||||||||||
Leases
|
102,300
|
4.0
|
%
|
106,217
|
4.0
|
%
|
89,928
|
3.9
|
%
|
|||||||||||||||
Total Gross Loans & Leases
|
2,605,599
|
100.0
|
%
|
2,578,120
|
100.0
|
%
|
2,351,076
|
100.0
|
%
|
|||||||||||||||
Less: Unearned Income
|
6,701
|
6,879
|
6,628
|
|||||||||||||||||||||
Subtotal
|
2,598,898
|
2,571,241
|
2,344,448
|
|||||||||||||||||||||
Less: Allowance for Credit Losses
|
55,125
|
55,266
|
51,337
|
|||||||||||||||||||||
Net Loans & Leases
|
$
|
2,543,773
|
$
|
2,515,975
|
$
|
2,293,111
|
(in thousands)
|
June 30, 2019
|
Dec. 31, 2018
|
June 30, 2018
|
|||||||||
Non-Performing Loans & Leases
|
$
|
-
|
$
|
-
|
$
|
729
|
||||||
Other Real Estate
|
873
|
873
|
873
|
|||||||||
Total Non-Performing Assets
|
$
|
873
|
$
|
873
|
$
|
1,602
|
||||||
Non-Performing Loans & Leases as a % of Total Loans & Leases
|
0.00
|
%
|
0.00
|
%
|
0.03
|
%
|
||||||
Restructured Loans & Leases (Performing)
|
$
|
12,113
|
$
|
13,577
|
$
|
6,365
|
• |
The Central Valley was one of the hardest hit areas in the country during the recession. In many areas, housing prices declined as much as 60% and unemployment reached 15% or more. Although the economy has strengthened
throughout most of the Central Valley, in some of the Company’s market segments housing prices remain below peak levels and unemployment levels remain above those in other areas of the state and country.
|
• |
The State of California experienced drought conditions from 2013 through most of 2016. Since 2016, reasonable levels of rain and snow have alleviated drought conditions in many areas of California, including those in the
Company’s primary service area. As a result, reservoir levels are high and the availability of water in our primary service area should not be an issue. Even though the vast majority of the Company’s agricultural customers are
located in the more northern portion of the Central Valley, where even during the worst of the drought, farmers still had access to reasonable ground water sources, the weather patterns over the past 5 years further reinforce the
fact that the long-term risks associated with the availability of water are significant.
|
• |
The agricultural industry is facing challenges associated with: (1) weakness in export markets due to a stronger dollar and proposed changes in trade policies; (2) tight labor markets and higher wages due to legislative changes
at the state and federal levels; and (3) proposed changes in immigration policy and the resulting impact on the labor pool.
|
• |
Demand and interest-bearing transaction accounts increased $187.0 million or 13.2% since June 30, 2018.
|
• |
Savings and money market accounts have increased $87.7 million or 10.8% since June 30, 2018.
|
• |
Time deposit accounts have increased $53.4 million or 11.5% since June 30, 2018.
|
(in thousands)
|
Actual
|
Current
Regulatory
Capital
Requirements
|
Well Capitalized Under Prompt Corrective Action
|
|||||||||||||||||||||
The Company:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of June 30, 2019
|
||||||||||||||||||||||||
Total Capital Ratio
|
$
|
372,319
|
12.05
|
%
|
$
|
247,101
|
8.0
|
%
|
N/A
|
N/A
|
||||||||||||||
Common Equity Tier 1 Capital Ratio
|
$
|
323,502
|
10.47
|
%
|
$
|
138,995
|
4.5
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 Capital Ratio
|
$
|
333,502
|
10.80
|
%
|
$
|
185,326
|
6.0
|
%
|
N/A
|
N/A
|
||||||||||||||
Tier 1 Leverage Ratio
|
$
|
333,502
|
9.87
|
%
|
$
|
135,131
|
3.0
|
%
|
N/A
|
N/A
|
(
in thousands)
|
Actual
|
Current
Regulatory
Capital
Requirements
|
Well Capitalized Under Prompt Corrective Action
|
|||||||||||||||||||||
The Bank:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of June 30, 2019
|
||||||||||||||||||||||||
Total Capital Ratio
|
$
|
370,938
|
12.01
|
%
|
$
|
247,073
|
8.0
|
%
|
$
|
308,841
|
10.0
|
%
|
||||||||||||
Common Equity Tier 1 Capital Ratio
|
$
|
332,125
|
10.75
|
%
|
$
|
138,978
|
4.5
|
%
|
$
|
200,747
|
6.5
|
%
|
||||||||||||
Tier 1 Capital Ratio
|
$
|
332,125
|
10.75
|
%
|
$
|
185,305
|
6.0
|
%
|
$
|
247,073
|
8.0
|
%
|
||||||||||||
Tier 1 Leverage Ratio
|
$
|
332,125
|
9.84
|
%
|
$
|
134,964
|
3.0
|
%
|
$
|
168,705
|
5.0
|
%
|
(in thousands)
|
June 30, 2019
|
December 31, 2018
|
June 30, 2018
|
|||||||||
Commitments to Extend Credit
|
$
|
835,230
|
$
|
828,539
|
$
|
797,006
|
||||||
Letters of Credit
|
20,340
|
19,108
|
18,873
|
|||||||||
Performance Guarantees Under Interest Rate Swap Contracts Entered
|
||||||||||||
Into Between Our Borrowing Customers and Third Parties
|
1,485
|
-
|
747
|
◾ |
general economic and business conditions affecting the key service areas of the Company;
|
◾ |
credit quality trends (including trends in collateral values, delinquencies and non-performing loans & leases);
|
◾ |
loan & lease volumes, growth rates and concentrations;
|
◾ |
loan & lease portfolio seasoning;
|
◾ |
specific industry and crop conditions;
|
◾ |
recent loss experience; and
|
◾ |
duration of the current business cycle.
|
Exhibit No.
|
Description
|
|
Amended and Restated Employment Agreement effective August 1, 2019, between Farmers & Merchants Bank of Central California and Kent A. Steinwert, filed on Registrant’s Form 10-Q for the quarter
ended June 30, 2019.
|
||
Amended and Restated Employment Agreement effective August 1, 2019, between Farmers & Merchants Bank of Central California and Deborah E. Skinner, filed on Registrant’s Form 10-Q for the quarter
ended June 30, 2019.
|
||
Amended and Restated Employment Agreement effective August 1, 2019, between Farmers & Merchants Bank of Central California and Kenneth W. Smith, filed on Registrant’s Form 10-Q for the quarter ended
June 30, 2019.
|
||
Amended and Restated Employment Agreement effective August 1, 2019, between Farmers & Merchants Bank of Central California and Stephen W. Haley, filed on Registrant’s Form 10-Q for the quarter ended
June 30, 2019.
|
||
Amended and Restated Employment Agreement effective August 1, 2019, between Farmers & Merchants Bank of Central California and Jay J. Colombini, filed on Registrant’s Form 10-Q for the quarter ended
June 30, 2019.
|
||
Amended and Restated Employment Agreement effective August 1, 2019, between Farmers & Merchants Bank of Central California and Ryan J. Misasi, filed on Registrant’s Form 10-Q for the quarter ended
June 30, 2019.
|
||
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Schema Document
|
|
101.CAL
|
XBRL Calculation Linkbase Document
|
|
101.LAB
|
XBRL Label Linkbase Document
|
|
101.PRE XBRL
|
Presentation Linkbase Document
|
|
101.DEF
|
XBRL Definition Linkbase Document
|
|
FARMERS & MERCHANTS BANCORP
|
|
Date: August 9, 2019
|
/s/ Kent A. Steinwert
|
|
Kent A. Steinwert
|
||
Chairman, President
|
||
& Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
Date: August 9, 2019
|
/s/ Stephen W. Haley
|
|
Stephen W. Haley
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
(Principal Financial & Accounting Officer)
|
2. |
A document acknowledging all responsibilities under the Farmers & Merchants Bank of Central California Split Dollar Agreement and the related Farmers & Merchants Bank of Central California Executive Bonus Agreement.
|
2. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of a Change in Control of Employer or Bancorp under
Section 8.01.1(i), (ii) or (iv), or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (i), (ii) or (iv) during the term of this Agreement and prior to Employee’s termination of employment, and in each case upon the
execution by Employee and non-revocation of (A) a general release of all claims provided by Employer and (B) a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with
a Change of Control Compensation Package equal to (A) two (2) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $250,000; (C) Employee’s monthly
premium for continuation coverage under COBRA (as defined in Section 7.06), determined as of the closing or other occurrence of the Change of Control, multiplied by thirty-six (36) months, whether or not such continuation coverage is
elected by Employee; (D) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book Trade-In Value in Good Condition; and (E) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
3. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of, a Change of Control of Employer or Bancorp under
Section 8.01.1(iii) (and not under (i), (ii) or (iv)) or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (iii) (and not under (i), (ii) or (iv)) during the term of this Agreement and prior to Employee’s termination
of employment, and subject to execution by Employee of a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with a Change of Control Compensation Package equal to (A)
one (1) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $250,000; (C) Employee’s company car valued for tax purposes using the vehicle’s Kelley
Blue Book Trade-In Value in Good Condition; and (D) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
4. |
Gross-Up Payment: Employee shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to Section 8.01.4.a and any federal and
state tax reimbursements due pursuant to Section 8.01.4.b.
|
A. |
Disclosure of Proprietary Information or Materials. Employee agrees that he/she will not directly or indirectly reveal, report, publish or disclose to any person, firm, or corporation not expressly authorized in writing by
Employer’s Board of Directors to receive any Trade and Business Secret, Proprietary and Confidential Information or Employer Materials (as defined in Section 9.03 below). Employee further agrees that he/she will not use any Trade and
Business Secret, Proprietary and Confidential Information and/or Employer Materials for any purpose except to perform his/her employment duties for Employer and such Trade and Business Secret, Proprietary and Confidential Information
and/or Employer Materials may not be used or disclosed by Employee for his/her own benefit or purpose or for the benefit or purpose of a subsequent employer. These agreements will continue to apply after Employee is no longer employed
by Employer so long as such Trade and Business Secrets, Proprietary and Confidential Information and Employer Materials are not nor have become, by legitimate means, generally known to the public.
|
FARMERS & MERCHANTS BANK OF
CENTRAL CALIFORNIA and FARMERS &
MERCHANTS BANCORP
|
|||
By:
|
/s/ Edward Corum, Jr.
|
||
Edward Corum, Jr.
|
|||
Chairman of the Personnel Committee
|
|||
By:
|
/s/ Stephenson K. Green
|
||
Stephenson K. Green
|
|||
Member of the Personnel Committee
|
|||
By:
|
/s/ Kevin Sanguinetti
|
||
Kevin Sanguinetti
|
|||
Member of the Personnel Committee
|
Employee:
|
/s/ Kent A. Steinwert
|
||
|
|||
Kent A. Steinwert
|
2. |
A document acknowledging all responsibilities under the Farmers & Merchants Bank of Central California Split Dollar Agreement and the related Farmers & Merchants Bank of Central California Executive Bonus Agreement.
|
2. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of a Change in Control of Employer or Bancorp under
Section 8.01.1(i), (ii) or (iv), or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (i), (ii) or (iv) during the term of this Agreement and prior to Employee’s termination of employment, and in each case upon the
execution by Employee and non-revocation of (A) a general release of all claims provided by Employer and (B) a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with
a Change of Control Compensation Package equal to (A) two (2) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $125,000; (C) Employee’s monthly
premium for continuation coverage under COBRA (as defined in Section 7.06), determined as of the closing or other occurrence of the Change of Control, multiplied by thirty-six (36) months, whether or not such continuation coverage is
elected by Employee; (D) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book Trade-In Value in Good Condition; and (E) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
3. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of, a Change of Control of Employer or Bancorp under
Section 8.01.1(iii) (and not under (i), (ii) or (iv)) or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (iii) (and not under (i), (ii) or (iv)) during the term of this Agreement and prior to Employee’s termination
of employment, and subject to execution by Employee of a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with a Change of Control Compensation Package equal to (A)
one (1) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $125,000; (C) Employee’s company car valued for tax purposes using the vehicle’s Kelley
Blue Book Trade-In Value in Good Condition; and (D) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
4. |
Gross-Up Payment: Employee shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to Section 8.01.4.a and any federal and
state tax reimbursements due pursuant to Section 8.01.4.b.
|
A. |
Disclosure of Proprietary Information or Materials. Employee agrees that he/she will not directly or indirectly reveal, report, publish or disclose to any person, firm, or corporation not expressly authorized in writing by
Employer’s Board of Directors to receive any Trade and Business Secret, Proprietary and Confidential Information or Employer Materials (as defined in Section 9.03 below). Employee further agrees that he/she will not use any Trade and
Business Secret, Proprietary and Confidential Information and/or Employer Materials for any purpose except to perform his/her employment duties for Employer and such Trade and Business Secret, Proprietary and Confidential Information
and/or Employer Materials may not be used or disclosed by Employee for his/her own benefit or purpose or for the benefit or purpose of a subsequent employer. These agreements will continue to apply after Employee is no longer employed
by Employer so long as such Trade and Business Secrets, Proprietary and Confidential Information and Employer Materials are not nor have become, by legitimate means, generally known to the public.
|
FARMERS & MERCHANTS BANK OF
CENTRAL CALIFORNIA and FARMERS &
MERCHANTS BANCORP
|
|||
By:
|
/s/ Edward Corum, Jr.
|
|
|
Edward Corum, Jr.
|
|||
Chairman of the Personnel Committee
|
Employee:
|
/s/ Deborah E. Skinner
|
||
Deborah E. Skinner
|
|
2. |
A document acknowledging all responsibilities under the Farmers & Merchants Bank of Central California Split Dollar Agreement and the related Farmers & Merchants Bank of Central California Executive Bonus Agreement.
|
2. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of a Change in Control of Employer or Bancorp under
Section 8.01.1(i), (ii) or (iv), or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (i), (ii) or (iv) during the term of this Agreement and prior to Employee’s termination of employment, and in each case upon the
execution by Employee and non-revocation of (A) a general release of all claims provided by Employer and (B) a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with
a Change of Control Compensation Package equal to (A) two (2) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $125,000; (C) Employee’s monthly
premium for continuation coverage under COBRA (as defined in Section 7.06), determined as of the closing or other occurrence of the Change of Control, multiplied by thirty-six (36) months, whether or not such continuation coverage is
elected by Employee; (D) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book Trade-In Value in Good Condition; and (E) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
3. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of, a Change of Control of Employer or Bancorp under
Section 8.01.1(iii) (and not under (i), (ii) or (iv)) or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (iii) (and not under (i), (ii) or (iv)) during the term of this Agreement and prior to Employee’s termination
of employment, and subject to execution by Employee of a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with a Change of Control Compensation Package equal to (A)
one (1) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $125,000; (C) Employee’s company car valued for tax purposes using the vehicle’s Kelley
Blue Book Trade-In Value in Good Condition; and (D) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
4. |
Gross-Up Payment: Employee shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to Section 8.01.4.a and any federal and
state tax reimbursements due pursuant to Section 8.01.4.b.
|
A. |
Disclosure of Proprietary Information or Materials. Employee agrees that he/she will not directly or indirectly reveal, report, publish or disclose to any person, firm, or corporation not expressly authorized in writing by
Employer’s Board of Directors to receive any Trade and Business Secret, Proprietary and Confidential Information or Employer Materials (as defined in Section 9.03 below). Employee further agrees that he/she will not use any Trade and
Business Secret, Proprietary and Confidential Information and/or Employer Materials for any purpose except to perform his/her employment duties for Employer and such Trade and Business Secret, Proprietary and Confidential Information
and/or Employer Materials may not be used or disclosed by Employee for his/her own benefit or purpose or for the benefit or purpose of a subsequent employer. These agreements will continue to apply after Employee is no longer employed
by Employer so long as such Trade and Business Secrets, Proprietary and Confidential Information and Employer Materials are not nor have become, by legitimate means, generally known to the public.
|
FARMERS & MERCHANTS BANK OF CENTRAL
CALIFORNIA and FARMERS &
MERCHANTS BANCORP
|
|||
By:
|
/s/ Edward Corum, Jr.
|
||
Edward Corum, Jr.
|
|||
Chairman of the Personnel Committee
|
Employee:
|
/s/ Kenneth W. Smith
|
||
Kenneth W. Smith
|
|
2. |
A document acknowledging all responsibilities under the Farmers & Merchants Bank of Central California Split Dollar Agreement and the related Farmers & Merchants Bank of Central California Executive Bonus Agreement.
|
2. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of a Change in Control of Employer or Bancorp under
Section 8.01.1(i), (ii) or (iv), or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (i), (ii) or (iv) during the term of this Agreement and prior to Employee’s termination of employment, and in each case upon the
execution by Employee and non-revocation of (A) a general release of all claims provided by Employer and (B) a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with
a Change of Control Compensation Package equal to (A) two (2) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $125,000; (C) Employee’s monthly
premium for continuation coverage under COBRA (as defined in Section 7.06), determined as of the closing or other occurrence of the Change of Control, multiplied by thirty-six (36) months, whether or not such continuation coverage is
elected by Employee; (D) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book Trade-In Value in Good Condition; and (E) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
3. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of, a Change of Control of Employer or Bancorp under
Section 8.01.1(iii) (and not under (i), (ii) or (iv)) or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (iii) (and not under (i), (ii) or (iv)) during the term of this Agreement and prior to Employee’s termination
of employment, and subject to execution by Employee of a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with a Change of Control Compensation Package equal to (A)
one (1) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) $125,000; (C) Employee’s company car valued for tax purposes using the vehicle’s Kelley
Blue Book Trade-In Value in Good Condition; and (D) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
4. |
Gross-Up Payment: Employee shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to Section 8.01.4.a and any federal and
state tax reimbursements due pursuant to Section 8.01.4.b.
|
A. |
Disclosure of Proprietary Information or Materials. Employee agrees that he/she will not directly or indirectly reveal, report, publish or disclose to any person, firm, or corporation not expressly authorized in writing by
Employer’s Board of Directors to receive any Trade and Business Secret, Proprietary and Confidential Information or Employer Materials (as defined in Section 9.03 below). Employee further agrees that he/she will not use any Trade and
Business Secret, Proprietary and Confidential Information and/or Employer Materials for any purpose except to perform his/her employment duties for Employer and such Trade and Business Secret, Proprietary and Confidential Information
and/or Employer Materials may not be used or disclosed by Employee for his/her own benefit or purpose or for the benefit or purpose of a subsequent employer. These agreements will continue to apply after Employee is no longer employed
by Employer so long as such Trade and Business Secrets, Proprietary and Confidential Information and Employer Materials are not nor have become, by legitimate means, generally known to the public.
|
FARMERS & MERCHANTS BANK OF
CENTRAL CALIFORNIA and FARMERS &
MERCHANTS BANCORP
|
|||
By:
|
/s/ Edward Corum, Jr.
|
||
Edward Corum, Jr.
|
|||
Chairman of the Personnel Committee
|
Employee:
|
/s/ Stephen W. Haley
|
||
Stephen W. Haley
|
|
2. |
A document acknowledging all responsibilities under the Farmers & Merchants Bank of Central California Split Dollar Agreement and the related Farmers & Merchants Bank of Central California Executive Bonus Agreement.
|
2. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of a Change in Control of Employer or Bancorp under
Section 8.01.1(i), (ii) or (iv), or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (i), (ii) or (iv) during the term of this Agreement and prior to Employee’s termination of employment, and in each case upon the
execution by Employee and non-revocation of (A) a general release of all claims provided by Employer and (B) a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with
a Change of Control Compensation Package equal to (A) two (2) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) Employee’s monthly premium for
continuation coverage under COBRA (as defined in Section 7.06), determined as of the closing or other occurrence of the Change of Control, multiplied by thirty-six (36) months, whether or not such continuation coverage is elected by
Employee; (C) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book Trade-In Value in Good Condition; and (D) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
3. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of, a Change of Control of Employer or Bancorp under
Section 8.01.1(iii) (and not under (i), (ii) or (iv)) or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (iii) (and not under (i), (ii) or (iv)) during the term of this Agreement and prior to Employee’s termination
of employment, and subject to execution by Employee of a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with a Change of Control Compensation Package equal to (A)
one (1) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book
Trade-In Value in Good Condition; (C) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
4. |
Gross-Up Payment: Employee shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to Section 8.01.4.a and any federal and
state tax reimbursements due pursuant to Section 8.01.4.b.
|
A. |
Disclosure of Proprietary Information or Materials. Employee agrees that he/she will not directly or indirectly reveal, report, publish or disclose to any person, firm, or corporation not expressly authorized in writing by
Employer’s Board of Directors to receive any Trade and Business Secret, Proprietary and Confidential Information or Employer Materials (as defined in Section 9.03 below). Employee further agrees that he/she will not use any Trade and
Business Secret, Proprietary and Confidential Information and/or Employer Materials for any purpose except to perform his/her employment duties for Employer and such Trade and Business Secret, Proprietary and Confidential Information
and/or Employer Materials may not be used or disclosed by Employee for his/her own benefit or purpose or for the benefit or purpose of a subsequent employer. These agreements will continue to apply after Employee is no longer employed
by Employer so long as such Trade and Business Secrets, Proprietary and Confidential Information and Employer Materials are not nor have become, by legitimate means, generally known to the public.
|
FARMERS & MERCHANTS BANK OF
CENTRAL CALIFORNIA and FARMERS &
MERCHANTS BANCORP
|
|||
By:
|
/s/ Edward Corum, Jr.
|
||
Edward Corum, Jr.
|
|||
Chairman of the Personnel Committee
|
Employee:
|
/s/ Jay J. Colombini
|
||
Jay J. Colombini
|
|
2. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of a Change in Control of Employer or Bancorp under
Section 8.01.1(i), (ii) or (iv), or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (i), (ii) or (iv) during the term of this Agreement and prior to Employee’s termination of employment, and in each case upon the
execution by Employee and non-revocation of (A) a general release of all claims provided by Employer and (B) a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with
a Change of Control Compensation Package equal to (A) two (2) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) Employee’s monthly premium for
continuation coverage under COBRA (as defined in Section 7.06), determined as of the closing or other occurrence of the Change of Control, multiplied by thirty-six (36) months, whether or not such continuation coverage is elected by
Employee; (C) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book Trade-In Value in Good Condition and (D) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
3. |
In the event of either (i) Employee’s termination of employment during the term of this Agreement and after the signing of an agreement providing for, or otherwise in anticipation of, a Change of Control of Employer or Bancorp under
Section 8.01.1(iii) (and not under (i), (ii) or (iv)) or (ii) a Change of Control of Employer or Bancorp under Section 8.01.1 (iii) (and not under (i), (ii) or (iv)) during the term of this Agreement and prior to Employee’s termination
of employment, and subject to execution by Employee of a non-competition and non-solicitation agreement in the form attached hereto as Exhibit B, Employer will provide Employee with a Change of Control Compensation Package equal to (A)
one (1) times Employee’s highest Annual Compensation paid before the earlier of the (i) termination of employment or (ii) Change of Control; (B) Employee’s company car valued for tax purposes using the vehicle’s Kelley Blue Book
Trade-In Value in Good Condition; and (C) a gross-up payment as defined and set forth herein in Section 8.01.4.
|
4. |
Gross-Up Payment: Employee shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to Section 8.01.4.a and any federal and
state tax reimbursements due pursuant to Section 8.01.4.b.
|
A. |
Disclosure of Proprietary Information or Materials. Employee agrees that he/she will not directly or indirectly reveal, report, publish or disclose to any person, firm, or corporation not expressly authorized in writing by
Employer’s Board of Directors to receive any Trade and Business Secret, Proprietary and Confidential Information or Employer Materials (as defined in Section 9.03 below). Employee further agrees that he/she will not use any Trade and
Business Secret, Proprietary and Confidential Information and/or Employer Materials for any purpose except to perform his/her employment duties for Employer and such Trade and Business Secret, Proprietary and Confidential Information
and/or Employer Materials may not be used or disclosed by Employee for his/her own benefit or purpose or for the benefit or purpose of a subsequent employer. These agreements will continue to apply after Employee is no longer employed
by Employer so long as such Trade and Business Secrets, Proprietary and Confidential Information and Employer Materials are not nor have become, by legitimate means, generally known to the public.
|
CENTRAL CALIFORNIA and FARMERS &
MERCHANTS BANCORP
|
|||
By:
|
/s/ Edward Corum, Jr.
|
||
Edward Corum, Jr.
|
|||
Chairman of the Personnel Committee
|
Employee:
|
/s/ Ryan J. Misasi
|
||
Ryan J. Misasi
|
|
1. |
I have reviewed this quarterly report on Form 10-Q of Farmers & Merchants Bancorp;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
Date: August 9, 2019
|
||
/s/ Kent A. Steinwert
|
||
Kent A. Steinwert
|
||
Chairman, President & Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Farmers & Merchants Bancorp;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
Date: August 9, 2019
|
||
|
/s/ Stephen W. Haley
|
|
Stephen W. Haley
|
||
Executive Vice President & Chief Financial Officer
|
|
1. |
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. $ 78m or 78o(d)); and
|
|
2. |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Kent A. Steinwert
|
|
Kent A. Steinwert
|
|
Chairman, President
|
|
& Chief Executive Officer
|
|
/s/ Stephen W. Haley
|
|
Stephen W. Haley
|
|
Executive Vice President & Chief Financial Officer
|