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FORM 10-Q
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission file number 001-35968
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Iowa
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42-1206172
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
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☐
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Accelerated filer
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☒
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Non-accelerated filer
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☐ (Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page No.
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PART I
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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March 31, 2017
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December 31, 2016
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(dollars in thousands, except per share amounts)
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(unaudited)
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ASSETS
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Cash and due from banks
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$
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33,893
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$
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41,464
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Interest-bearing deposits in banks
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19,338
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1,764
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Federal funds sold
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1,239
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—
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Cash and cash equivalents
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54,470
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43,228
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Investment securities:
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Available for sale
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471,561
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477,518
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Held to maturity (fair value of $172,640 as of March 31, 2017 and $164,792 as of December 31, 2016)
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174,668
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168,392
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Loans held for sale
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381
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4,241
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Loans
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2,165,044
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2,165,143
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Allowance for loan losses
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(22,217
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)
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(21,850
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)
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Net loans
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2,142,827
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2,143,293
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Premises and equipment, net
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75,031
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75,043
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Accrued interest receivable
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12,696
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13,871
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Goodwill
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64,654
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64,654
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Other intangible assets, net
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14,322
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15,171
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Bank-owned life insurance
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47,559
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47,231
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Other real estate owned
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1,696
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2,097
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Deferred income taxes
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6,121
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6,523
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Other assets
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17,529
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18,313
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Total assets
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$
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3,083,515
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$
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3,079,575
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Deposits:
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Non-interest-bearing demand
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$
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481,718
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$
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494,586
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Interest-bearing checking
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1,164,293
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1,136,282
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Savings
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203,139
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197,698
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Certificates of deposit under $100,000
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326,766
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326,832
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Certificates of deposit $100,000 and over
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354,977
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325,050
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Total deposits
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2,530,893
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2,480,448
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Federal funds purchased
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—
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35,684
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Securities sold under agreements to repurchase
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67,591
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82,187
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Federal Home Loan Bank borrowings
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95,000
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115,000
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Junior subordinated notes issued to capital trusts
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23,718
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23,692
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Long-term debt
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16,250
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17,500
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Deferred compensation liability
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5,200
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5,180
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Accrued interest payable
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1,405
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1,472
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Other liabilities
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15,944
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12,956
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Total liabilities
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2,756,001
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2,774,119
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Shareholders' equity:
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Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at March 31, 2017 and December 31, 2016
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$
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—
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$
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—
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Common stock, $1.00 par value; authorized 15,000,000 shares at March 31, 2017 and December 31, 2016; issued 12,213,481 shares at March 31, 2017 and 11,713,481 shares at December 31, 2016; outstanding 11,959,521 shares at March 31, 2017 and 11,436,360 shares at December 31, 2016
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12,213
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11,713
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Additional paid-in capital
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179,014
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163,667
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Treasury stock at cost, 253,960 shares as of March 31, 2017 and 277,121 shares as of December 31, 2016
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(5,328
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)
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(5,766
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)
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Retained earnings
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141,797
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136,975
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Accumulated other comprehensive income
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(182
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)
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(1,133
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)
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Total shareholders' equity
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327,514
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305,456
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Total liabilities and shareholders' equity
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$
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3,083,515
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$
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3,079,575
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(unaudited) (dollars in thousands, except per share amounts)
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Three Months Ended March 31,
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2017
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2016
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Interest income:
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Interest and fees on loans
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$
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24,279
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$
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25,116
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Interest on bank deposits
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5
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8
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Interest on investment securities:
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Taxable securities
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2,718
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1,924
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Tax-exempt securities
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1,565
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1,437
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Total interest income
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28,567
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28,485
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Interest expense:
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Interest on deposits:
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Interest-bearing checking
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798
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760
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Savings
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51
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106
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Certificates of deposit under $100,000
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859
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569
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Certificates of deposit $100,000 and over
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917
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639
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Total interest expense on deposits
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2,625
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2,074
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Interest on federal funds purchased
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46
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25
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Interest on securities sold under agreements to repurchase
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38
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53
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Interest on Federal Home Loan Bank borrowings
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443
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451
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Interest on other borrowings
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3
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6
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Interest on junior subordinated notes issued to capital trusts
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221
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197
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Interest on long-term debt
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110
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124
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Total interest expense
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3,486
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2,930
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Net interest income
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25,081
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25,555
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Provision for loan losses
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1,041
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1,065
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Net interest income after provision for loan losses
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24,040
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24,490
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Noninterest income:
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Trust, investment, and insurance fees
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1,612
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1,498
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Service charges and fees on deposit accounts
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1,283
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|
1,258
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Loan origination and servicing fees
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|
802
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|
619
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|
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Other service charges and fees
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1,458
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1,430
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Bank-owned life insurance income
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328
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384
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|
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Gain on sale or call of available for sale securities
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—
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|
244
|
|
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Gain on sale of held to maturity securities
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43
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|
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—
|
|
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Loss on sale of premises and equipment
|
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(2
|
)
|
|
(211
|
)
|
||
Other gain
|
|
13
|
|
|
1,183
|
|
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Total noninterest income
|
|
5,537
|
|
|
6,405
|
|
||
Noninterest expense:
|
|
|
|
|
||||
Salaries and employee benefits
|
|
11,884
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|
|
12,645
|
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Net occupancy and equipment expense
|
|
3,304
|
|
|
3,251
|
|
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Professional fees
|
|
1,022
|
|
|
946
|
|
||
Data processing expense
|
|
711
|
|
|
2,573
|
|
||
FDIC insurance expense
|
|
367
|
|
|
421
|
|
||
Amortization of intangible assets
|
|
849
|
|
|
1,061
|
|
||
Other operating expense
|
|
2,198
|
|
|
2,549
|
|
||
Total noninterest expense
|
|
20,335
|
|
|
23,446
|
|
||
Income before income tax expense
|
|
9,242
|
|
|
7,449
|
|
||
Income tax expense
|
|
2,529
|
|
|
1,905
|
|
||
Net income
|
|
$
|
6,713
|
|
|
$
|
5,544
|
|
Share and per share information:
|
|
|
|
|
||||
Ending number of shares outstanding
|
|
11,959,521
|
|
|
11,425,035
|
|
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Average number of shares outstanding
|
|
11,505,687
|
|
|
11,416,993
|
|
||
Diluted average number of shares
|
|
11,555,356
|
|
|
11,442,931
|
|
||
Earnings per common share - basic
|
|
$
|
0.58
|
|
|
$
|
0.49
|
|
Earnings per common share - diluted
|
|
0.58
|
|
|
0.48
|
|
||
Dividends paid per common share
|
|
0.165
|
|
|
0.160
|
|
(unaudited) (dollars in thousands)
|
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Three Months Ended March 31,
|
||||||
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2017
|
|
2016
|
||||
Net income
|
|
$
|
6,713
|
|
|
$
|
5,544
|
|
|
|
|
|
|
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Other comprehensive income, available for sale securities:
|
|
|
|
|
||||
Unrealized holding gains arising during period
|
|
1,567
|
|
|
2,978
|
|
||
Reclassification adjustment for gains included in net income
|
|
—
|
|
|
(244
|
)
|
||
Income tax expense
|
|
(616
|
)
|
|
(1,016
|
)
|
||
Other comprehensive income on available for sale securities
|
|
951
|
|
|
1,718
|
|
||
Other comprehensive income, net of tax
|
|
951
|
|
|
1,718
|
|
||
Comprehensive income
|
|
$
|
7,664
|
|
|
$
|
7,262
|
|
(unaudited)
(dollars in thousands, except per share amounts)
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Treasury
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||||||
Balance at December 31, 2015
|
|
$
|
—
|
|
|
$
|
11,713
|
|
|
$
|
163,487
|
|
|
$
|
(6,331
|
)
|
|
$
|
123,901
|
|
|
$
|
3,408
|
|
|
$
|
296,178
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,544
|
|
|
—
|
|
|
5,544
|
|
|||||||
Dividends paid on common stock ($0.16 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,827
|
)
|
|
—
|
|
|
(1,827
|
)
|
|||||||
Release/lapse of restriction on RSUs (17,708 shares)
|
|
—
|
|
|
—
|
|
|
(352
|
)
|
|
330
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|||||||
Stock compensation
|
|
—
|
|
|
—
|
|
|
186
|
|
|
—
|
|
|
—
|
|
|
|
|
|
186
|
|
|||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,718
|
|
|
1,718
|
|
|||||||
Balance at March 31, 2016
|
|
$
|
—
|
|
|
$
|
11,713
|
|
|
$
|
163,321
|
|
|
$
|
(6,001
|
)
|
|
$
|
127,618
|
|
|
$
|
5,126
|
|
|
$
|
301,777
|
|
Balance at December 31, 2016
|
|
$
|
—
|
|
|
$
|
11,713
|
|
|
$
|
163,667
|
|
|
$
|
(5,766
|
)
|
|
$
|
136,975
|
|
|
$
|
(1,133
|
)
|
|
$
|
305,456
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,713
|
|
|
—
|
|
|
6,713
|
|
|||||||
Issuance of common stock (500,000 shares), net of expenses of $983,000
|
|
—
|
|
|
500
|
|
|
15,642
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,142
|
|
|||||||
Dividends paid on common stock ($0.165 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,891
|
)
|
|
—
|
|
|
(1,891
|
)
|
|||||||
Stock options exercised (5,800 shares)
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
121
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|||||||
Release/lapse of restriction on RSUs (20,200 shares)
|
|
—
|
|
|
—
|
|
|
(420
|
)
|
|
317
|
|
|
—
|
|
|
—
|
|
|
(103
|
)
|
|||||||
Stock compensation
|
|
—
|
|
|
—
|
|
|
199
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
951
|
|
|
951
|
|
|||||||
Balance at March 31, 2017
|
|
$
|
—
|
|
|
$
|
12,213
|
|
|
$
|
179,014
|
|
|
$
|
(5,328
|
)
|
|
$
|
141,797
|
|
|
$
|
(182
|
)
|
|
$
|
327,514
|
|
(unaudited) (dollars in thousands)
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
6,713
|
|
|
$
|
5,544
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for loan losses
|
1,041
|
|
|
1,065
|
|
||
Depreciation of premises and equipment
|
1,040
|
|
|
1,130
|
|
||
Amortization of other intangibles
|
849
|
|
|
1,061
|
|
||
Amortization of premiums and discounts on investment securities, net
|
373
|
|
|
484
|
|
||
Loss on sale of premises and equipment
|
2
|
|
|
211
|
|
||
Deferred income taxes
|
(289
|
)
|
|
(303
|
)
|
||
Excess tax benefit from share-based award activity
|
(75
|
)
|
|
(16
|
)
|
||
Stock-based compensation
|
199
|
|
|
186
|
|
||
Net gain on sale or call of available for sale securities
|
—
|
|
|
(244
|
)
|
||
Net gain on sale or call of held to maturity securities
|
(43
|
)
|
|
—
|
|
||
Net gain on sale of other real estate owned
|
(19
|
)
|
|
(408
|
)
|
||
Net gain on sale of loans held for sale
|
(323
|
)
|
|
(431
|
)
|
||
Writedown of other real estate owned
|
23
|
|
|
—
|
|
||
Origination of loans held for sale
|
(18,770
|
)
|
|
(23,365
|
)
|
||
Proceeds from sales of loans held for sale
|
22,953
|
|
|
25,816
|
|
||
Decrease in accrued interest receivable
|
1,175
|
|
|
1,773
|
|
||
Increase in cash surrender value of bank-owned life insurance
|
(328
|
)
|
|
(384
|
)
|
||
Decrease in other assets
|
784
|
|
|
83
|
|
||
Increase in deferred compensation liability
|
20
|
|
|
54
|
|
||
Increase (decrease) in accrued interest payable, accounts payable, accrued expenses, and other liabilities
|
2,921
|
|
|
(179
|
)
|
||
Net cash provided by operating activities
|
18,246
|
|
|
12,077
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Proceeds from sales of available for sale securities
|
—
|
|
|
19,690
|
|
||
Proceeds from maturities and calls of available for sale securities
|
15,005
|
|
|
22,633
|
|
||
Purchases of available for sale securities
|
(7,813
|
)
|
|
(2
|
)
|
||
Proceeds from sales of held to maturity securities
|
1,153
|
|
|
—
|
|
||
Proceeds from maturities and calls of held to maturity securities
|
1,047
|
|
|
2,494
|
|
||
Purchase of held to maturity securities
|
(8,474
|
)
|
|
(2,399
|
)
|
||
Net increase in loans
|
(672
|
)
|
|
(21,104
|
)
|
||
Purchases of premises and equipment
|
(1,004
|
)
|
|
(1,854
|
)
|
||
Proceeds from sale of other real estate owned
|
494
|
|
|
3,481
|
|
||
Proceeds from sale of premises and equipment
|
—
|
|
|
1,273
|
|
||
Proceeds of principal and earnings from bank-owned life insurance
|
—
|
|
|
426
|
|
||
Net cash provided by (used in) investing activities
|
(264
|
)
|
|
24,638
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net increase (decrease) in deposits
|
50,445
|
|
|
(33,914
|
)
|
||
Decrease in federal funds purchased
|
(35,684
|
)
|
|
(1,500
|
)
|
||
Decrease in securities sold under agreements to repurchase
|
(14,596
|
)
|
|
(9,594
|
)
|
||
Proceeds from Federal Home Loan Bank borrowings
|
50,000
|
|
|
30,000
|
|
||
Repayment of Federal Home Loan Bank borrowings
|
(70,000
|
)
|
|
(5,000
|
)
|
||
Proceeds from stock options exercised
|
123
|
|
|
—
|
|
||
Excess tax benefit from share-based award activity
|
75
|
|
|
16
|
|
||
Taxes paid relating to net share settlement of equity awards
|
(104
|
)
|
|
(38
|
)
|
||
Payments on long-term debt
|
(1,250
|
)
|
|
(1,250
|
)
|
||
Dividends paid
|
(1,891
|
)
|
|
(1,827
|
)
|
||
Issuance of common stock, net of expenses
|
16,142
|
|
|
—
|
|
||
Net cash used in financing activities
|
(6,740
|
)
|
|
(23,107
|
)
|
||
Net increase in cash and cash equivalents
|
11,242
|
|
|
13,608
|
|
||
Cash and cash equivalents at beginning of period
|
43,228
|
|
|
47,097
|
|
||
Cash and cash equivalents at end of period
|
$
|
54,470
|
|
|
$
|
60,705
|
|
(unaudited) (dollars in thousands)
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid during the period for interest
|
$
|
3,553
|
|
|
$
|
2,928
|
|
Cash paid during the period for income taxes
|
$
|
—
|
|
|
$
|
10
|
|
Supplemental schedule of non-cash investing activities:
|
|
|
|
||||
Transfer of loans to other real estate owned
|
$
|
97
|
|
|
$
|
408
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(dollars in thousands, except per share amounts)
|
|
2017
|
|
2016
|
||||
|
Basic earnings per common share computation
|
|
|
|
|
||||
|
Numerator:
|
|
|
|
|
||||
|
Net income
|
|
$
|
6,713
|
|
|
$
|
5,544
|
|
|
Denominator:
|
|
|
|
|
||||
|
Weighted average shares outstanding
|
|
11,505,687
|
|
|
11,416,993
|
|
||
|
Basic earnings per common share
|
|
$
|
0.58
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
||||
|
Diluted earnings per common share computation
|
|
|
|
|
||||
|
Numerator:
|
|
|
|
|
||||
|
Net income
|
|
$
|
6,713
|
|
|
$
|
5,544
|
|
|
Denominator:
|
|
|
|
|
||||
|
Weighted average shares outstanding, including all dilutive potential shares
|
|
11,555,356
|
|
|
11,442,931
|
|
||
|
Diluted earnings per common share
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
|
As of March 31, 2017
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
U.S. Government agencies and corporations
|
$
|
5,826
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
5,844
|
|
|
State and political subdivisions
|
159,767
|
|
|
3,848
|
|
|
201
|
|
|
163,414
|
|
||||
|
Mortgage-backed securities
|
55,961
|
|
|
319
|
|
|
173
|
|
|
56,107
|
|
||||
|
Collateralized mortgage obligations
|
168,542
|
|
|
131
|
|
|
4,053
|
|
|
164,620
|
|
||||
|
Corporate debt securities
|
79,509
|
|
|
107
|
|
|
334
|
|
|
79,282
|
|
||||
|
Total debt securities
|
469,605
|
|
|
4,423
|
|
|
4,761
|
|
|
469,267
|
|
||||
|
Other equity securities
|
2,261
|
|
|
83
|
|
|
50
|
|
|
2,294
|
|
||||
|
Total
|
$
|
471,866
|
|
|
$
|
4,506
|
|
|
$
|
4,811
|
|
|
$
|
471,561
|
|
|
|
As of December 31, 2016
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
U.S. Government agencies and corporations
|
$
|
5,895
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
5,905
|
|
|
State and political subdivisions
|
162,145
|
|
|
3,545
|
|
|
418
|
|
|
165,272
|
|
||||
|
Mortgage-backed securities
|
61,606
|
|
|
315
|
|
|
567
|
|
|
61,354
|
|
||||
|
Collateralized mortgage obligations
|
175,506
|
|
|
148
|
|
|
4,387
|
|
|
171,267
|
|
||||
|
Corporate debt securities
|
72,979
|
|
|
76
|
|
|
602
|
|
|
72,453
|
|
||||
|
Total debt securities
|
478,131
|
|
|
4,094
|
|
|
5,974
|
|
|
476,251
|
|
||||
|
Other equity securities
|
1,259
|
|
|
66
|
|
|
58
|
|
|
1,267
|
|
||||
|
Total
|
$
|
479,390
|
|
|
$
|
4,160
|
|
|
$
|
6,032
|
|
|
$
|
477,518
|
|
|
|
As of March 31, 2017
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
State and political subdivisions
|
$
|
114,758
|
|
|
$
|
412
|
|
|
$
|
1,868
|
|
|
$
|
113,302
|
|
|
Mortgage-backed securities
|
2,361
|
|
|
4
|
|
|
20
|
|
|
2,345
|
|
||||
|
Collateralized mortgage obligations
|
25,039
|
|
|
—
|
|
|
536
|
|
|
24,503
|
|
||||
|
Corporate debt securities
|
32,510
|
|
|
364
|
|
|
384
|
|
|
32,490
|
|
||||
|
Total
|
$
|
174,668
|
|
|
$
|
780
|
|
|
$
|
2,808
|
|
|
$
|
172,640
|
|
|
|
As of December 31, 2016
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
State and political subdivisions
|
$
|
107,941
|
|
|
$
|
156
|
|
|
$
|
2,713
|
|
|
$
|
105,384
|
|
|
Mortgage-backed securities
|
2,398
|
|
|
5
|
|
|
34
|
|
|
2,369
|
|
||||
|
Collateralized mortgage obligations
|
26,036
|
|
|
—
|
|
|
598
|
|
|
25,438
|
|
||||
|
Corporate debt securities
|
32,017
|
|
|
149
|
|
|
565
|
|
|
31,601
|
|
||||
|
Total
|
$
|
168,392
|
|
|
$
|
310
|
|
|
$
|
3,910
|
|
|
$
|
164,792
|
|
|
|
|
|
As of March 31, 2017
|
|||||||||||||||||||||||
|
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Available for Sale
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
State and political subdivisions
|
33
|
|
|
$
|
11,702
|
|
|
$
|
184
|
|
|
$
|
438
|
|
|
$
|
17
|
|
|
$
|
12,140
|
|
|
$
|
201
|
|
|
Mortgage-backed securities
|
14
|
|
|
35,781
|
|
|
172
|
|
|
23
|
|
|
1
|
|
|
35,804
|
|
|
173
|
|
||||||
|
Collateralized mortgage obligations
|
28
|
|
|
125,595
|
|
|
3,064
|
|
|
20,821
|
|
|
989
|
|
|
146,416
|
|
|
4,053
|
|
||||||
|
Corporate debt securities
|
9
|
|
|
45,061
|
|
|
334
|
|
|
—
|
|
|
—
|
|
|
45,061
|
|
|
334
|
|
||||||
|
Other equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1,950
|
|
|
50
|
|
|
1,950
|
|
|
50
|
|
||||||
|
Total
|
85
|
|
|
$
|
218,139
|
|
|
$
|
3,754
|
|
|
$
|
23,232
|
|
|
$
|
1,057
|
|
|
$
|
241,371
|
|
|
$
|
4,811
|
|
|
|
|
|
As of December 31, 2016
|
|||||||||||||||||||||||
|
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
State and political subdivisions
|
63
|
|
|
$
|
24,574
|
|
|
$
|
389
|
|
|
$
|
427
|
|
|
$
|
29
|
|
|
$
|
25,001
|
|
|
$
|
418
|
|
|
Mortgage-backed securities
|
20
|
|
|
40,752
|
|
|
566
|
|
|
23
|
|
|
1
|
|
|
40,775
|
|
|
567
|
|
||||||
|
Collateralized mortgage obligations
|
29
|
|
|
140,698
|
|
|
3,544
|
|
|
16,776
|
|
|
843
|
|
|
157,474
|
|
|
4,387
|
|
||||||
|
Corporate debt securities
|
11
|
|
|
54,891
|
|
|
602
|
|
|
—
|
|
|
—
|
|
|
54,891
|
|
|
602
|
|
||||||
|
Other equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
942
|
|
|
58
|
|
|
942
|
|
|
58
|
|
||||||
|
Total
|
124
|
|
|
$
|
260,915
|
|
|
$
|
5,101
|
|
|
$
|
18,168
|
|
|
$
|
931
|
|
|
$
|
279,083
|
|
|
$
|
6,032
|
|
|
|
|
|
As of March 31, 2017
|
|||||||||||||||||||||||
|
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Held to Maturity
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
State and political subdivisions
|
138
|
|
|
$
|
51,790
|
|
|
$
|
1,868
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,790
|
|
|
$
|
1,868
|
|
|
Mortgage-backed securities
|
4
|
|
|
1,513
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
1,513
|
|
|
20
|
|
||||||
|
Collateralized mortgage obligations
|
7
|
|
|
18,230
|
|
|
325
|
|
|
6,240
|
|
|
211
|
|
|
24,470
|
|
|
536
|
|
||||||
|
Corporate debt securities
|
6
|
|
|
8,468
|
|
|
29
|
|
|
2,536
|
|
|
355
|
|
|
11,004
|
|
|
384
|
|
||||||
|
Total
|
155
|
|
|
$
|
80,001
|
|
|
$
|
2,242
|
|
|
$
|
8,776
|
|
|
$
|
566
|
|
|
$
|
88,777
|
|
|
$
|
2,808
|
|
|
|
|
|
As of December 31, 2016
|
|||||||||||||||||||||||
|
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
State and political subdivisions
|
180
|
|
|
$
|
65,174
|
|
|
$
|
2,713
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
65,174
|
|
|
$
|
2,713
|
|
|
Mortgage-backed securities
|
5
|
|
|
2,246
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
2,246
|
|
|
34
|
|
||||||
|
Collateralized mortgage obligations
|
7
|
|
|
18,964
|
|
|
369
|
|
|
6,435
|
|
|
229
|
|
|
25,399
|
|
|
598
|
|
||||||
|
Corporate debt securities
|
11
|
|
|
19,198
|
|
|
187
|
|
|
2,512
|
|
|
378
|
|
|
21,710
|
|
|
565
|
|
||||||
|
Total
|
203
|
|
|
$
|
105,582
|
|
|
$
|
3,303
|
|
|
$
|
8,947
|
|
|
$
|
607
|
|
|
$
|
114,529
|
|
|
$
|
3,910
|
|
|
|
Available For Sale
|
|
Held to Maturity
|
||||||||||||
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
Due in one year or less
|
$
|
16,828
|
|
|
$
|
16,879
|
|
|
$
|
2,385
|
|
|
$
|
2,383
|
|
|
Due after one year through five years
|
131,814
|
|
|
133,139
|
|
|
14,300
|
|
|
14,311
|
|
||||
|
Due after five years through ten years
|
86,998
|
|
|
88,991
|
|
|
73,777
|
|
|
73,853
|
|
||||
|
Due after ten years
|
9,462
|
|
|
9,531
|
|
|
56,806
|
|
|
55,245
|
|
||||
|
Debt securities without a single maturity date
|
224,503
|
|
|
220,727
|
|
|
27,400
|
|
|
26,848
|
|
||||
|
Total
|
$
|
469,605
|
|
|
$
|
469,267
|
|
|
$
|
174,668
|
|
|
$
|
172,640
|
|
|
|
Allowance for Loan Losses and Recorded Investment in Loan Receivables
|
||||||||||||||||||||||
|
|
As of March 31, 2017 and December 31, 2016
|
||||||||||||||||||||||
|
(in thousands)
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Individually evaluated for impairment
|
$
|
418
|
|
|
$
|
1,006
|
|
|
$
|
1,629
|
|
|
$
|
253
|
|
|
$
|
—
|
|
|
$
|
3,306
|
|
|
Collectively evaluated for impairment
|
2,042
|
|
|
5,006
|
|
|
7,825
|
|
|
3,196
|
|
|
221
|
|
|
18,290
|
|
||||||
|
Purchased credit impaired loans
|
—
|
|
|
9
|
|
|
297
|
|
|
315
|
|
|
—
|
|
|
621
|
|
||||||
|
Total
|
$
|
2,460
|
|
|
$
|
6,021
|
|
|
$
|
9,751
|
|
|
$
|
3,764
|
|
|
$
|
221
|
|
|
$
|
22,217
|
|
|
Loans receivable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Individually evaluated for impairment
|
$
|
3,569
|
|
|
$
|
17,164
|
|
|
$
|
13,487
|
|
|
$
|
3,959
|
|
|
$
|
—
|
|
|
$
|
38,179
|
|
|
Collectively evaluated for impairment
|
105,213
|
|
|
441,225
|
|
|
1,048,865
|
|
|
474,565
|
|
|
35,074
|
|
|
2,104,942
|
|
||||||
|
Purchased credit impaired loans
|
—
|
|
|
60
|
|
|
15,991
|
|
|
5,872
|
|
|
—
|
|
|
21,923
|
|
||||||
|
Total
|
$
|
108,782
|
|
|
$
|
458,449
|
|
|
$
|
1,078,343
|
|
|
$
|
484,396
|
|
|
$
|
35,074
|
|
|
$
|
2,165,044
|
|
|
(in thousands)
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Individually evaluated for impairment
|
$
|
62
|
|
|
$
|
2,066
|
|
|
$
|
1,924
|
|
|
$
|
299
|
|
|
$
|
—
|
|
|
$
|
4,351
|
|
|
Collectively evaluated for impairment
|
1,941
|
|
|
4,199
|
|
|
7,692
|
|
|
2,791
|
|
|
255
|
|
|
16,878
|
|
||||||
|
Purchased credit impaired loans
|
—
|
|
|
9
|
|
|
244
|
|
|
368
|
|
|
—
|
|
|
621
|
|
||||||
|
Total
|
$
|
2,003
|
|
|
$
|
6,274
|
|
|
$
|
9,860
|
|
|
$
|
3,458
|
|
|
$
|
255
|
|
|
$
|
21,850
|
|
|
Loans receivable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Individually evaluated for impairment
|
$
|
5,339
|
|
|
$
|
11,434
|
|
|
$
|
11,450
|
|
|
$
|
3,955
|
|
|
$
|
—
|
|
|
$
|
32,178
|
|
|
Collectively evaluated for impairment
|
108,004
|
|
|
449,380
|
|
|
1,036,049
|
|
|
480,143
|
|
|
36,591
|
|
|
2,110,167
|
|
||||||
|
Purchased credit impaired loans
|
—
|
|
|
156
|
|
|
16,744
|
|
|
5,898
|
|
|
—
|
|
|
22,798
|
|
||||||
|
Total
|
$
|
113,343
|
|
|
$
|
460,970
|
|
|
$
|
1,064,243
|
|
|
$
|
489,996
|
|
|
$
|
36,591
|
|
|
$
|
2,165,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Allowance for Loan Loss Activity
|
||||||||||||||||||||||||||
|
|
For the Three Months Ended March 31, 2017 and 2016
|
||||||||||||||||||||||||||
|
(in thousands)
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Beginning balance
|
$
|
2,003
|
|
|
$
|
6,274
|
|
|
$
|
9,860
|
|
|
$
|
3,458
|
|
|
$
|
255
|
|
|
$
|
—
|
|
|
$
|
21,850
|
|
|
Charge-offs
|
(537
|
)
|
|
(65
|
)
|
|
(61
|
)
|
|
(28
|
)
|
|
(25
|
)
|
|
—
|
|
|
(716
|
)
|
|||||||
|
Recoveries
|
10
|
|
|
19
|
|
|
10
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
42
|
|
|||||||
|
Provision
|
984
|
|
|
(207
|
)
|
|
(58
|
)
|
|
334
|
|
|
(12
|
)
|
|
—
|
|
|
1,041
|
|
|||||||
|
Ending balance
|
$
|
2,460
|
|
|
$
|
6,021
|
|
|
$
|
9,751
|
|
|
$
|
3,764
|
|
|
$
|
221
|
|
|
$
|
—
|
|
|
$
|
22,217
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Beginning balance
|
$
|
1,417
|
|
|
$
|
5,451
|
|
|
$
|
8,556
|
|
|
$
|
3,968
|
|
|
$
|
409
|
|
|
$
|
(374
|
)
|
|
$
|
19,427
|
|
|
Charge-offs
|
(125
|
)
|
|
(10
|
)
|
|
(40
|
)
|
|
(159
|
)
|
|
(50
|
)
|
|
—
|
|
|
(384
|
)
|
|||||||
|
Recoveries
|
6
|
|
|
12
|
|
|
53
|
|
|
64
|
|
|
2
|
|
|
—
|
|
|
137
|
|
|||||||
|
Provision
|
937
|
|
|
(773
|
)
|
|
1,144
|
|
|
(444
|
)
|
|
(173
|
)
|
|
374
|
|
|
1,065
|
|
|||||||
|
Ending balance
|
$
|
2,235
|
|
|
$
|
4,680
|
|
|
$
|
9,713
|
|
|
$
|
3,429
|
|
|
$
|
188
|
|
|
$
|
—
|
|
|
$
|
20,245
|
|
•
|
The debtor is currently in default on any of its debt.
|
•
|
The debtor has declared or is in the process of declaring bankruptcy.
|
•
|
There is significant doubt as to whether the debtor will continue to be a going concern.
|
•
|
Currently, the debtor has securities being held as collateral that have been delisted, are in the process of being delisted, or are under threat of being delisted from an exchange.
|
•
|
Based on estimates and projections that only encompass the current business capabilities, the debtor forecasts that its entity-specific cash flows will be insufficient to service the debt (both interest and principal) in accordance with the contractual terms of the existing agreement through maturity.
|
•
|
Absent the current modification, the debtor cannot obtain funds from sources other than the existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.
|
•
|
The borrower receives a reduction of the stated interest rate for the remaining original life of the debt.
|
•
|
The borrower receives an extension of the maturity date or dates at a stated interest rate lower that the current market interest rate for new debt with similar risk characteristics.
|
•
|
The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement.
|
•
|
The borrower receives a deferral of required payments (principal and/or interest).
|
•
|
The borrower receives a reduction of the accrued interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Number of Contracts
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
|
Number of Contracts
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
||||||||||
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Troubled Debt Restructurings
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Agricultural
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Extended maturity date
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
25
|
|
|
$
|
25
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Extended maturity date
|
6
|
|
|
2,037
|
|
|
2,083
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial real estate-other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Extended maturity date
|
1
|
|
|
968
|
|
|
968
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
One- to four- family first liens
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
104
|
|
|
104
|
|
||||
|
One- to four- family junior liens
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate reduction
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
71
|
|
|
71
|
|
||||
|
Total
|
7
|
|
|
$
|
3,005
|
|
|
$
|
3,051
|
|
|
3
|
|
|
$
|
200
|
|
|
$
|
200
|
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Number of Contracts
|
|
Recorded Investment
|
|
Number of Contracts
|
|
Recorded Investment
|
||||||
|
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||
|
Troubled Debt Restructurings
(1)
That Subsequently Defaulted:
|
|
|
|
|
|
|
|
||||||
|
Commercial and industrial
|
|
|
|
|
|
|
|
||||||
|
Extended maturity date
|
3
|
|
|
$
|
954
|
|
|
—
|
|
|
$
|
—
|
|
|
Total
|
3
|
|
|
$
|
954
|
|
|
—
|
|
|
$
|
—
|
|
•
|
Changes in national and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments.
|
•
|
Changes in the quality and experience of lending staff and management.
|
•
|
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses.
|
•
|
Changes in the volume and severity of past due loans, classified loans and non-performing loans.
|
•
|
The existence and potential impact of any concentrations of credit.
|
•
|
Changes in the nature and terms of loans such as growth rates and utilization rates.
|
•
|
Changes in the value of underlying collateral for collateral-dependent loans, considering the Company’s disposition bias.
|
•
|
The effect of other external factors such as the legal and regulatory environment.
|
|
|
Pass
|
|
Special Mention/ Watch
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
90,757
|
|
|
$
|
15,855
|
|
|
$
|
2,170
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
108,782
|
|
|
Commercial and industrial
(1)
|
414,723
|
|
|
19,660
|
|
|
24,058
|
|
|
8
|
|
|
—
|
|
|
458,449
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
130,495
|
|
|
1,235
|
|
|
2,671
|
|
|
—
|
|
|
—
|
|
|
134,401
|
|
||||||
|
Farmland
|
81,178
|
|
|
8,173
|
|
|
2,426
|
|
|
—
|
|
|
—
|
|
|
91,777
|
|
||||||
|
Multifamily
|
137,996
|
|
|
1,798
|
|
|
485
|
|
|
—
|
|
|
—
|
|
|
140,279
|
|
||||||
|
Commercial real estate-other
|
666,093
|
|
|
25,212
|
|
|
20,581
|
|
|
—
|
|
|
—
|
|
|
711,886
|
|
||||||
|
Total commercial real estate
|
1,015,762
|
|
|
36,418
|
|
|
26,163
|
|
|
—
|
|
|
—
|
|
|
1,078,343
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
355,566
|
|
|
2,231
|
|
|
11,009
|
|
|
—
|
|
|
—
|
|
|
368,806
|
|
||||||
|
One- to four- family junior liens
|
112,570
|
|
|
1,155
|
|
|
1,865
|
|
|
—
|
|
|
—
|
|
|
115,590
|
|
||||||
|
Total residential real estate
|
468,136
|
|
|
3,386
|
|
|
12,874
|
|
|
—
|
|
|
—
|
|
|
484,396
|
|
||||||
|
Consumer
|
34,942
|
|
|
1
|
|
|
95
|
|
|
36
|
|
|
—
|
|
|
35,074
|
|
||||||
|
Total
|
$
|
2,024,320
|
|
|
$
|
75,320
|
|
|
$
|
65,360
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
2,165,044
|
|
|
|
Pass
|
|
Special Mention/ Watch
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
95,103
|
|
|
$
|
14,089
|
|
|
$
|
4,151
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
113,343
|
|
|
Commercial and industrial
|
429,392
|
|
|
11,065
|
|
|
19,016
|
|
|
8
|
|
|
—
|
|
|
459,481
|
|
||||||
|
Credit cards
|
1,489
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,489
|
|
||||||
|
Overdrafts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
121,982
|
|
|
2,732
|
|
|
1,971
|
|
|
—
|
|
|
—
|
|
|
126,685
|
|
||||||
|
Farmland
|
83,563
|
|
|
8,986
|
|
|
2,430
|
|
|
—
|
|
|
—
|
|
|
94,979
|
|
||||||
|
Multifamily
|
134,975
|
|
|
548
|
|
|
480
|
|
|
—
|
|
|
—
|
|
|
136,003
|
|
||||||
|
Commercial real estate-other
|
666,767
|
|
|
20,955
|
|
|
18,854
|
|
|
—
|
|
|
—
|
|
|
706,576
|
|
||||||
|
Total commercial real estate
|
1,007,287
|
|
|
33,221
|
|
|
23,735
|
|
|
—
|
|
|
—
|
|
|
1,064,243
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
359,029
|
|
|
2,202
|
|
|
11,002
|
|
|
—
|
|
|
—
|
|
|
372,233
|
|
||||||
|
One- to four- family junior liens
|
114,233
|
|
|
1,628
|
|
|
1,902
|
|
|
—
|
|
|
—
|
|
|
117,763
|
|
||||||
|
Total residential real estate
|
473,262
|
|
|
3,830
|
|
|
12,904
|
|
|
—
|
|
|
—
|
|
|
489,996
|
|
||||||
|
Consumer
|
36,419
|
|
|
1
|
|
|
134
|
|
|
37
|
|
|
—
|
|
|
36,591
|
|
||||||
|
Total
|
$
|
2,042,952
|
|
|
$
|
62,206
|
|
|
$
|
59,940
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
2,165,143
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
1,603
|
|
|
$
|
2,881
|
|
|
$
|
—
|
|
|
$
|
3,673
|
|
|
$
|
4,952
|
|
|
$
|
—
|
|
|
Commercial and industrial
|
12,354
|
|
|
12,411
|
|
|
—
|
|
|
6,211
|
|
|
6,259
|
|
|
—
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
1,063
|
|
|
1,798
|
|
|
—
|
|
|
445
|
|
|
1,170
|
|
|
—
|
|
||||||
|
Farmland
|
2,385
|
|
|
2,535
|
|
|
—
|
|
|
2,230
|
|
|
2,380
|
|
|
—
|
|
||||||
|
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Commercial real estate-other
|
3,245
|
|
|
3,422
|
|
|
—
|
|
|
2,224
|
|
|
2,384
|
|
|
—
|
|
||||||
|
Total commercial real estate
|
6,693
|
|
|
7,755
|
|
|
—
|
|
|
4,899
|
|
|
5,934
|
|
|
—
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
2,569
|
|
|
2,594
|
|
|
—
|
|
|
2,429
|
|
|
2,442
|
|
|
—
|
|
||||||
|
One- to four- family junior liens
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Total residential real estate
|
2,582
|
|
|
2,607
|
|
|
—
|
|
|
2,429
|
|
|
2,442
|
|
|
—
|
|
||||||
|
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Total
|
$
|
23,232
|
|
|
$
|
25,654
|
|
|
$
|
—
|
|
|
$
|
17,212
|
|
|
$
|
19,587
|
|
|
$
|
—
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
1,966
|
|
|
$
|
2,506
|
|
|
$
|
418
|
|
|
$
|
1,666
|
|
|
$
|
1,669
|
|
|
$
|
62
|
|
|
Commercial and industrial
|
4,810
|
|
|
4,810
|
|
|
1,006
|
|
|
5,223
|
|
|
5,223
|
|
|
2,066
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
434
|
|
|
434
|
|
|
129
|
|
|
263
|
|
|
270
|
|
|
21
|
|
||||||
|
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Commercial real estate-other
|
6,360
|
|
|
6,479
|
|
|
1,500
|
|
|
6,288
|
|
|
6,344
|
|
|
1,903
|
|
||||||
|
Total commercial real estate
|
6,794
|
|
|
6,913
|
|
|
1,629
|
|
|
6,551
|
|
|
6,614
|
|
|
1,924
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
1,377
|
|
|
1,377
|
|
|
253
|
|
|
1,526
|
|
|
1,526
|
|
|
299
|
|
||||||
|
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Total residential real estate
|
1,377
|
|
|
1,377
|
|
|
253
|
|
|
1,526
|
|
|
1,526
|
|
|
299
|
|
||||||
|
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Total
|
$
|
14,947
|
|
|
$
|
15,606
|
|
|
$
|
3,306
|
|
|
$
|
14,966
|
|
|
$
|
15,032
|
|
|
$
|
4,351
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
3,569
|
|
|
$
|
5,387
|
|
|
$
|
418
|
|
|
$
|
5,339
|
|
|
$
|
6,621
|
|
|
$
|
62
|
|
|
Commercial and industrial
|
17,164
|
|
|
17,221
|
|
|
1,006
|
|
|
11,434
|
|
|
11,482
|
|
|
2,066
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
1,497
|
|
|
2,232
|
|
|
129
|
|
|
708
|
|
|
1,440
|
|
|
21
|
|
||||||
|
Farmland
|
2,385
|
|
|
2,535
|
|
|
—
|
|
|
2,230
|
|
|
2,380
|
|
|
—
|
|
||||||
|
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Commercial real estate-other
|
9,605
|
|
|
9,901
|
|
|
1,500
|
|
|
8,512
|
|
|
8,728
|
|
|
1,903
|
|
||||||
|
Total commercial real estate
|
13,487
|
|
|
14,668
|
|
|
1,629
|
|
|
11,450
|
|
|
12,548
|
|
|
1,924
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
3,946
|
|
|
3,971
|
|
|
253
|
|
|
3,955
|
|
|
3,968
|
|
|
299
|
|
||||||
|
One- to four- family junior liens
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Total residential real estate
|
3,959
|
|
|
3,984
|
|
|
253
|
|
|
3,955
|
|
|
3,968
|
|
|
299
|
|
||||||
|
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Total
|
$
|
38,179
|
|
|
$
|
41,260
|
|
|
$
|
3,306
|
|
|
$
|
32,178
|
|
|
$
|
34,619
|
|
|
$
|
4,351
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
|
Agricultural
|
$
|
2,230
|
|
|
$
|
13
|
|
|
$
|
2,914
|
|
|
$
|
20
|
|
|
Commercial and industrial
|
12,431
|
|
|
72
|
|
|
4,621
|
|
|
1
|
|
||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
|
Construction and development
|
1,064
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Farmland
|
2,535
|
|
|
26
|
|
|
3,320
|
|
|
26
|
|
||||
|
Multifamily
|
—
|
|
|
—
|
|
|
1,709
|
|
|
25
|
|
||||
|
Commercial real estate-other
|
3,248
|
|
|
—
|
|
|
4,626
|
|
|
50
|
|
||||
|
Total commercial real estate
|
6,847
|
|
|
26
|
|
|
9,655
|
|
|
101
|
|
||||
|
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
|
One- to four- family first liens
|
2,563
|
|
|
—
|
|
|
2,833
|
|
|
27
|
|
||||
|
One- to four- family junior liens
|
13
|
|
|
—
|
|
|
920
|
|
|
11
|
|
||||
|
Total residential real estate
|
2,576
|
|
|
—
|
|
|
3,753
|
|
|
38
|
|
||||
|
Consumer
|
—
|
|
|
—
|
|
|
17
|
|
|
1
|
|
||||
|
Total
|
$
|
24,084
|
|
|
$
|
111
|
|
|
$
|
20,960
|
|
|
$
|
161
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
|
Agricultural
|
$
|
2,087
|
|
|
$
|
—
|
|
|
$
|
167
|
|
|
$
|
2
|
|
|
Commercial and industrial
|
4,812
|
|
|
20
|
|
|
3,679
|
|
|
4
|
|
||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
|
Construction and development
|
434
|
|
|
—
|
|
|
305
|
|
|
3
|
|
||||
|
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Multifamily
|
—
|
|
|
—
|
|
|
158
|
|
|
—
|
|
||||
|
Commercial real estate-other
|
6,369
|
|
|
—
|
|
|
6,546
|
|
|
9
|
|
||||
|
Total commercial real estate
|
6,803
|
|
|
—
|
|
|
7,009
|
|
|
12
|
|
||||
|
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
|
One- to four- family first liens
|
1,400
|
|
|
9
|
|
|
1,607
|
|
|
8
|
|
||||
|
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
|
Total residential real estate
|
1,400
|
|
|
9
|
|
|
1,622
|
|
|
8
|
|
||||
|
Consumer
|
—
|
|
|
—
|
|
|
9
|
|
|
1
|
|
||||
|
Total
|
$
|
15,102
|
|
|
$
|
29
|
|
|
$
|
12,486
|
|
|
$
|
27
|
|
|
Total:
|
|
|
|
|
|
|
|
||||||||
|
Agricultural
|
$
|
4,317
|
|
|
$
|
13
|
|
|
$
|
3,081
|
|
|
$
|
22
|
|
|
Commercial and industrial
|
17,243
|
|
|
92
|
|
|
8,300
|
|
|
5
|
|
||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
|
Construction and development
|
1,498
|
|
|
—
|
|
|
305
|
|
|
3
|
|
||||
|
Farmland
|
2,535
|
|
|
26
|
|
|
3,320
|
|
|
26
|
|
||||
|
Multifamily
|
—
|
|
|
—
|
|
|
1,867
|
|
|
25
|
|
||||
|
Commercial real estate-other
|
9,617
|
|
|
—
|
|
|
11,172
|
|
|
59
|
|
||||
|
Total commercial real estate
|
13,650
|
|
|
26
|
|
|
16,664
|
|
|
113
|
|
||||
|
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
|
One- to four- family first liens
|
3,963
|
|
|
9
|
|
|
4,440
|
|
|
35
|
|
||||
|
One- to four- family junior liens
|
13
|
|
|
—
|
|
|
935
|
|
|
11
|
|
||||
|
Total residential real estate
|
3,976
|
|
|
9
|
|
|
5,375
|
|
|
46
|
|
||||
|
Consumer
|
—
|
|
|
—
|
|
|
26
|
|
|
2
|
|
||||
|
Total
|
$
|
39,186
|
|
|
$
|
140
|
|
|
$
|
33,446
|
|
|
$
|
188
|
|
|
|
30 - 59 Days Past Due
|
|
60 - 89 Days Past Due
|
|
90 Days or More Past Due
|
|
Total Past Due
|
|
Current
|
|
Total Loans Receivable
|
||||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
1,672
|
|
|
$
|
660
|
|
|
$
|
397
|
|
|
$
|
2,729
|
|
|
$
|
106,053
|
|
|
$
|
108,782
|
|
|
Commercial and industrial
(1)
|
1,190
|
|
|
1,127
|
|
|
8,861
|
|
|
11,178
|
|
|
447,271
|
|
|
458,449
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
35
|
|
|
360
|
|
|
1,071
|
|
|
1,466
|
|
|
132,935
|
|
|
134,401
|
|
||||||
|
Farmland
|
2
|
|
|
—
|
|
|
2,637
|
|
|
2,639
|
|
|
89,138
|
|
|
91,777
|
|
||||||
|
Multifamily
|
—
|
|
|
—
|
|
|
135
|
|
|
135
|
|
|
140,144
|
|
|
140,279
|
|
||||||
|
Commercial real estate-other
|
712
|
|
|
384
|
|
|
7,757
|
|
|
8,853
|
|
|
703,033
|
|
|
711,886
|
|
||||||
|
Total commercial real estate
|
749
|
|
|
744
|
|
|
11,600
|
|
|
13,093
|
|
|
1,065,250
|
|
|
1,078,343
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
3,103
|
|
|
201
|
|
|
1,522
|
|
|
4,826
|
|
|
363,980
|
|
|
368,806
|
|
||||||
|
One- to four- family junior liens
|
196
|
|
|
1
|
|
|
234
|
|
|
431
|
|
|
115,159
|
|
|
115,590
|
|
||||||
|
Total residential real estate
|
3,299
|
|
|
202
|
|
|
1,756
|
|
|
5,257
|
|
|
479,139
|
|
|
484,396
|
|
||||||
|
Consumer
|
19
|
|
|
41
|
|
|
22
|
|
|
82
|
|
|
34,992
|
|
|
35,074
|
|
||||||
|
Total
|
$
|
6,929
|
|
|
$
|
2,774
|
|
|
$
|
22,636
|
|
|
$
|
32,339
|
|
|
$
|
2,132,705
|
|
|
$
|
2,165,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Included in the totals above are the following purchased credit impaired loans
|
$
|
518
|
|
|
$
|
—
|
|
|
$
|
1,090
|
|
|
$
|
1,608
|
|
|
$
|
20,315
|
|
|
$
|
21,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Agricultural
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
399
|
|
|
$
|
443
|
|
|
$
|
112,900
|
|
|
$
|
113,343
|
|
|
Commercial and industrial
|
2,615
|
|
|
293
|
|
|
9,654
|
|
|
12,562
|
|
|
446,919
|
|
|
459,481
|
|
||||||
|
Credit cards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,489
|
|
|
1,489
|
|
||||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Construction and development
|
630
|
|
|
—
|
|
|
297
|
|
|
927
|
|
|
125,758
|
|
|
126,685
|
|
||||||
|
Farmland
|
373
|
|
|
—
|
|
|
91
|
|
|
464
|
|
|
94,515
|
|
|
94,979
|
|
||||||
|
Multifamily
|
—
|
|
|
129
|
|
|
—
|
|
|
129
|
|
|
135,874
|
|
|
136,003
|
|
||||||
|
Commercial real estate-other
|
1,238
|
|
|
763
|
|
|
6,655
|
|
|
8,656
|
|
|
697,920
|
|
|
706,576
|
|
||||||
|
Total commercial real estate
|
2,241
|
|
|
892
|
|
|
7,043
|
|
|
10,176
|
|
|
1,054,067
|
|
|
1,064,243
|
|
||||||
|
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One- to four- family first liens
|
2,851
|
|
|
1,143
|
|
|
1,328
|
|
|
5,322
|
|
|
366,911
|
|
|
372,233
|
|
||||||
|
One- to four- family junior liens
|
437
|
|
|
151
|
|
|
150
|
|
|
738
|
|
|
117,025
|
|
|
117,763
|
|
||||||
|
Total residential real estate
|
3,288
|
|
|
1,294
|
|
|
1,478
|
|
|
6,060
|
|
|
483,936
|
|
|
489,996
|
|
||||||
|
Consumer
|
50
|
|
|
23
|
|
|
33
|
|
|
106
|
|
|
36,485
|
|
|
36,591
|
|
||||||
|
Total
|
$
|
8,238
|
|
|
$
|
2,502
|
|
|
$
|
18,607
|
|
|
$
|
29,347
|
|
|
$
|
2,135,796
|
|
|
$
|
2,165,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Included in the totals above are the following purchased credit impaired loans
|
$
|
965
|
|
|
$
|
489
|
|
|
$
|
549
|
|
|
$
|
2,003
|
|
|
$
|
20,795
|
|
|
$
|
22,798
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Non-Accrual
|
|
Loans Past Due 90 Days or More and Still Accruing
|
|
Non-Accrual
|
|
Loans Past Due 90 Days or More and Still Accruing
|
||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
||||||||
|
Agricultural
|
$
|
976
|
|
|
$
|
—
|
|
|
$
|
2,690
|
|
|
$
|
—
|
|
|
Commercial and industrial
|
8,676
|
|
|
531
|
|
|
8,358
|
|
|
—
|
|
||||
|
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
|
Construction and development
|
1,534
|
|
|
23
|
|
|
780
|
|
|
95
|
|
||||
|
Farmland
|
226
|
|
|
2,547
|
|
|
227
|
|
|
—
|
|
||||
|
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
Commercial real estate-other
|
7,163
|
|
|
22
|
|
|
7,360
|
|
|
—
|
|
||||
|
Total commercial real estate
|
8,923
|
|
|
2,592
|
|
|
8,367
|
|
|
95
|
|
||||
|
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
|
One- to four- family first liens
|
1,372
|
|
|
548
|
|
|
1,127
|
|
|
375
|
|
||||
|
One- to four- family junior liens
|
135
|
|
|
87
|
|
|
116
|
|
|
15
|
|
||||
|
Total residential real estate
|
1,507
|
|
|
635
|
|
|
1,243
|
|
|
390
|
|
||||
|
Consumer
|
89
|
|
|
4
|
|
|
10
|
|
|
—
|
|
||||
|
Total
|
$
|
20,171
|
|
|
$
|
3,762
|
|
|
$
|
20,668
|
|
|
$
|
485
|
|
•
|
Purchased non-credit impaired loans are accounted for in accordance with ASC 310-20 “
Nonrefundable Fees and Other Costs
” as these loans do not have evidence of significant credit deterioration since origination and it is probable all contractually required payments will be received from the borrower.
|
•
|
Purchased credit impaired loans are accounted for in accordance with ASC 310-30 “
Loans and Debt Securities Acquired with Deteriorated Credit Quality
” as they display significant credit deterioration since origination and it is probable, as of the acquisition date, that the Company will be unable to collect all contractually required payments from the borrower.
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
(in thousands)
|
|
|
|
||||
|
Balance at beginning of period
|
$
|
1,961
|
|
|
$
|
1,446
|
|
|
Purchases
|
—
|
|
|
—
|
|
||
|
Accretion
|
(416
|
)
|
|
(601
|
)
|
||
|
Reclassification from nonaccretable difference
|
88
|
|
|
—
|
|
||
|
Balance at end of period
|
$
|
1,633
|
|
|
$
|
845
|
|
|
|
|
Insurance Agency Intangible
|
|
Core Deposit Intangible
|
|
Indefinite-Lived Trade Name Intangible
|
|
Finite-Lived Trade Name Intangible
|
|
Customer List Intangible
|
|
Total
|
||||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Balance, beginning of period
|
|
$
|
203
|
|
|
$
|
6,846
|
|
|
$
|
7,040
|
|
|
$
|
960
|
|
|
$
|
122
|
|
|
$
|
15,171
|
|
|
Amortization expense
|
|
(13
|
)
|
|
(775
|
)
|
|
—
|
|
|
(57
|
)
|
|
(4
|
)
|
|
(849
|
)
|
||||||
|
Balance at end of period
|
|
$
|
190
|
|
|
$
|
6,071
|
|
|
$
|
7,040
|
|
|
$
|
903
|
|
|
$
|
118
|
|
|
$
|
14,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gross carrying amount
|
|
$
|
1,320
|
|
|
$
|
18,206
|
|
|
$
|
7,040
|
|
|
$
|
1,380
|
|
|
$
|
330
|
|
|
$
|
28,276
|
|
|
Accumulated amortizations
|
|
(1,130
|
)
|
|
(12,135
|
)
|
|
—
|
|
|
(477
|
)
|
|
(212
|
)
|
|
(13,954
|
)
|
||||||
|
Net book value
|
|
$
|
190
|
|
|
$
|
6,071
|
|
|
$
|
7,040
|
|
|
$
|
903
|
|
|
$
|
118
|
|
|
$
|
14,322
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
|
(in thousands)
|
|
|
|
||||
|
Federal Home Loan Bank Stock
|
$
|
10,631
|
|
|
$
|
12,800
|
|
|
FDIC indemnification asset, net
|
—
|
|
|
479
|
|
||
|
Prepaid expenses
|
1,770
|
|
|
1,760
|
|
||
|
Mortgage servicing rights
|
2,161
|
|
|
1,951
|
|
||
|
Accounts receivable & other miscellaneous assets
|
2,967
|
|
|
1,323
|
|
||
|
|
$
|
17,529
|
|
|
$
|
18,313
|
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||
|
(in thousands)
|
|
Weighted Average Cost
|
|
Balance
|
|
Weighted Average Cost
|
|
Balance
|
||||||
|
Federal funds purchased
|
|
—
|
%
|
|
$
|
—
|
|
|
0.83
|
%
|
|
$
|
35,684
|
|
|
Securities sold under agreements to repurchase
|
|
0.22
|
|
|
67,591
|
|
|
0.22
|
|
|
82,187
|
|
||
|
Total
|
|
0.22
|
%
|
|
$
|
67,591
|
|
|
0.40
|
%
|
|
$
|
117,871
|
|
|
|
|
Face Value
|
|
Book Value
|
|
Interest Rate
|
|
Interest Rate at
|
|
Maturity Date
|
|
Callable Date
|
|||||
|
(in thousands)
|
|
|
|
|
3/31/2017
|
|
|
||||||||||
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Central Bancshares Capital Trust II
(1) (2)
|
|
$
|
7,217
|
|
|
$
|
6,629
|
|
|
Three-month LIBOR + 3.50%
|
|
4.63
|
%
|
|
03/15/2038
|
|
03/15/2013
|
|
Barron Investment Capital Trust I
(1) (2)
|
|
2,062
|
|
|
1,625
|
|
|
Three-month LIBOR + 2.15%
|
|
3.31
|
%
|
|
09/23/2036
|
|
09/23/2011
|
||
|
MidWestOne Statutory Trust II
(1)
|
|
15,464
|
|
|
15,464
|
|
|
Three-month LIBOR + 1.59%
|
|
2.72
|
%
|
|
12/15/2037
|
|
12/15/2012
|
||
|
Total
|
|
$
|
24,743
|
|
|
$
|
23,718
|
|
|
|
|
|
|
|
|
|
|
|
|
Face Value
|
|
Book Value
|
|
Interest Rate
|
|
Interest Rate at
|
|
Maturity Date
|
|
Callable Date
|
|||||
|
(in thousands)
|
|
|
|
|
12/31/2016
|
|
|
||||||||||
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Central Bancshares Capital Trust II
(1) (2)
|
|
$
|
7,217
|
|
|
$
|
6,614
|
|
|
Three-month LIBOR + 3.50%
|
|
4.46
|
%
|
|
03/15/2038
|
|
03/15/2013
|
|
Barron Investment Capital Trust I
(1) (2)
|
|
2,062
|
|
|
1,614
|
|
|
Three-month LIBOR + 2.15%
|
|
3.15
|
%
|
|
09/23/2036
|
|
09/23/2011
|
||
|
MidWestOne Statutory Trust II
(1)
|
|
15,464
|
|
|
15,464
|
|
|
Three-month LIBOR + 1.59%
|
|
2.55
|
%
|
|
12/15/2037
|
|
12/15/2012
|
||
|
Total
|
|
$
|
24,743
|
|
|
$
|
23,692
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||
|
(in thousands)
|
Weighted Average Cost
|
|
Balance
|
|
Weighted Average Cost
|
|
Balance
|
||||||
|
FHLB Borrowings
|
1.73
|
%
|
|
$
|
95,000
|
|
|
1.56
|
%
|
|
$
|
115,000
|
|
|
Note payable to unaffiliated bank
|
2.73
|
|
|
16,250
|
|
|
2.52
|
|
|
17,500
|
|
||
|
Total
|
1.88
|
%
|
|
$
|
111,250
|
|
|
1.69
|
%
|
|
$
|
132,500
|
|
|
|
For the Three Months Ended March 31,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
(in thousands)
|
Amount
|
|
% of Pretax Income
|
|
Amount
|
|
% of Pretax Income
|
||||||
|
Expected provision
|
$
|
3,235
|
|
|
35.0
|
%
|
|
$
|
2,607
|
|
|
35.0
|
%
|
|
Tax-exempt interest
|
(786
|
)
|
|
(8.5
|
)
|
|
(754
|
)
|
|
(10.1
|
)
|
||
|
Bank-owned life insurance
|
(115
|
)
|
|
(1.2
|
)
|
|
(134
|
)
|
|
(1.8
|
)
|
||
|
State income taxes, net of federal income tax benefit
|
405
|
|
|
4.4
|
|
|
320
|
|
|
4.3
|
|
||
|
Non-deductible acquisition expenses
|
—
|
|
|
—
|
|
|
25
|
|
|
0.3
|
|
||
|
General business credits
|
(21
|
)
|
|
(0.2
|
)
|
|
(139
|
)
|
|
(1.9
|
)
|
||
|
Other
|
(189
|
)
|
|
(2.1
|
)
|
|
(20
|
)
|
|
(0.3
|
)
|
||
|
Total income tax provision
|
$
|
2,529
|
|
|
27.4
|
%
|
|
$
|
1,905
|
|
|
25.5
|
%
|
•
|
Level 1 Inputs
– Unadjusted quoted prices for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.
|
•
|
Level 2 Inputs
– Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.
|
•
|
Level 3 Inputs
– Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
|
|
|
Fair Value Measurement at March 31, 2017 Using
|
||||||||||||||
|
(in thousands)
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
Assets:
|
|
|
|
|
|
|
|
||||||||
|
Available for sale debt securities:
|
|
|
|
|
|
|
|
||||||||
|
U.S. Government agencies and corporations
|
$
|
5,844
|
|
|
$
|
—
|
|
|
$
|
5,844
|
|
|
$
|
—
|
|
|
State and political subdivisions
|
163,414
|
|
|
—
|
|
|
163,414
|
|
|
—
|
|
||||
|
Mortgage-backed securities
|
56,107
|
|
|
—
|
|
|
56,107
|
|
|
—
|
|
||||
|
Collateralized mortgage obligations
|
164,620
|
|
|
—
|
|
|
164,620
|
|
|
—
|
|
||||
|
Corporate debt securities
|
79,282
|
|
|
—
|
|
|
79,282
|
|
|
—
|
|
||||
|
Total available for sale debt securities
|
469,267
|
|
|
—
|
|
|
469,267
|
|
|
—
|
|
||||
|
Other equity securities
|
2,294
|
|
|
2,294
|
|
|
—
|
|
|
—
|
|
||||
|
Total securities available for sale
|
$
|
471,561
|
|
|
$
|
2,294
|
|
|
$
|
469,267
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurement at December 31, 2016 Using
|
||||||||||||||
|
(in thousands)
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
Assets:
|
|
|
|
|
|
|
|
||||||||
|
Available for sale debt securities:
|
|
|
|
|
|
|
|
||||||||
|
U.S. Government agencies and corporations
|
$
|
5,905
|
|
|
$
|
—
|
|
|
$
|
5,905
|
|
|
$
|
—
|
|
|
State and political subdivisions
|
165,272
|
|
|
—
|
|
|
165,272
|
|
|
—
|
|
||||
|
Mortgage-backed securities
|
61,354
|
|
|
—
|
|
|
61,354
|
|
|
—
|
|
||||
|
Collateralized mortgage obligations
|
171,267
|
|
|
—
|
|
|
171,267
|
|
|
—
|
|
||||
|
Corporate debt securities
|
72,453
|
|
|
—
|
|
|
72,453
|
|
|
—
|
|
||||
|
Total available for sale debt securities
|
476,251
|
|
|
—
|
|
|
476,251
|
|
|
—
|
|
||||
|
Other equity securities
|
1,267
|
|
|
1,267
|
|
|
—
|
|
|
—
|
|
||||
|
Total securities available for sale
|
$
|
477,518
|
|
|
$
|
1,267
|
|
|
$
|
476,251
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurement at March 31, 2017 Using
|
||||||||||||||
|
(in thousands)
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
Assets:
|
|
|
|
|
|
|
|
||||||||
|
Collateral dependent impaired loans
|
$
|
10,040
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,040
|
|
|
Other real estate owned
|
$
|
1,696
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,696
|
|
|
|
Fair Value Measurement at December 31, 2016 Using
|
||||||||||||||
|
(in thousands)
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
Assets:
|
|
|
|
|
|
|
|
||||||||
|
Collateral dependent impaired loans
|
$
|
8,774
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,774
|
|
|
Other real estate owned
|
$
|
2,097
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,097
|
|
|
|
March 31, 2017
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and cash equivalents
|
$
|
54,470
|
|
|
$
|
54,470
|
|
|
$
|
54,470
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Available for sale
|
471,561
|
|
|
471,561
|
|
|
2,294
|
|
|
469,267
|
|
|
—
|
|
|||||
|
Held to maturity
|
174,668
|
|
|
172,640
|
|
|
—
|
|
|
172,640
|
|
|
—
|
|
|||||
|
Total investment securities
|
646,229
|
|
|
644,201
|
|
|
2,294
|
|
|
641,907
|
|
|
—
|
|
|||||
|
Loans held for sale
|
381
|
|
|
391
|
|
|
—
|
|
|
—
|
|
|
391
|
|
|||||
|
Loans, net
|
2,142,827
|
|
|
2,140,827
|
|
|
—
|
|
|
2,140,827
|
|
|
—
|
|
|||||
|
Accrued interest receivable
|
12,696
|
|
|
12,696
|
|
|
12,696
|
|
|
—
|
|
|
—
|
|
|||||
|
Federal Home Loan Bank stock
|
10,631
|
|
|
10,631
|
|
|
—
|
|
|
10,631
|
|
|
—
|
|
|||||
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-interest bearing demand
|
481,718
|
|
|
481,718
|
|
|
481,718
|
|
|
—
|
|
|
—
|
|
|||||
|
Interest-bearing checking
|
1,164,293
|
|
|
1,164,293
|
|
|
1,164,293
|
|
|
—
|
|
|
—
|
|
|||||
|
Savings
|
203,139
|
|
|
203,139
|
|
|
203,139
|
|
|
—
|
|
|
—
|
|
|||||
|
Certificates of deposit under $100,000
|
326,766
|
|
|
324,827
|
|
|
—
|
|
|
324,827
|
|
|
—
|
|
|||||
|
Certificates of deposit $100,000 and over
|
354,977
|
|
|
353,884
|
|
|
—
|
|
|
353,884
|
|
|
—
|
|
|||||
|
Total deposits
|
2,530,893
|
|
|
2,527,861
|
|
|
1,849,150
|
|
|
678,711
|
|
|
—
|
|
|||||
|
Federal funds purchased and securities sold under agreements to repurchase
|
67,591
|
|
|
67,591
|
|
|
67,591
|
|
|
—
|
|
|
—
|
|
|||||
|
Federal Home Loan Bank borrowings
|
95,000
|
|
|
94,647
|
|
|
—
|
|
|
94,647
|
|
|
—
|
|
|||||
|
Junior subordinated notes issued to capital trusts
|
23,718
|
|
|
19,357
|
|
|
—
|
|
|
19,357
|
|
|
—
|
|
|||||
|
Long-term debt
|
16,250
|
|
|
16,250
|
|
|
—
|
|
|
16,250
|
|
|
—
|
|
|||||
|
Accrued interest payable
|
1,405
|
|
|
1,405
|
|
|
1,405
|
|
|
—
|
|
|
—
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and cash equivalents
|
$
|
43,228
|
|
|
$
|
43,228
|
|
|
$
|
43,228
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Available for sale
|
477,518
|
|
|
477,518
|
|
|
1,267
|
|
|
476,251
|
|
|
—
|
|
|||||
|
Held to maturity
|
168,392
|
|
|
164,792
|
|
|
—
|
|
|
164,792
|
|
|
—
|
|
|||||
|
Total investment securities
|
645,910
|
|
|
642,310
|
|
|
1,267
|
|
|
641,043
|
|
|
—
|
|
|||||
|
Loans held for sale
|
4,241
|
|
|
4,286
|
|
|
—
|
|
|
—
|
|
|
4,286
|
|
|||||
|
Loans, net
|
2,143,293
|
|
|
2,138,252
|
|
|
—
|
|
|
2,138,252
|
|
|
—
|
|
|||||
|
Accrued interest receivable
|
13,871
|
|
|
13,871
|
|
|
13,871
|
|
|
—
|
|
|
—
|
|
|||||
|
Federal Home Loan Bank stock
|
12,800
|
|
|
12,800
|
|
|
—
|
|
|
12,800
|
|
|
—
|
|
|||||
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-interest bearing demand
|
494,586
|
|
|
494,586
|
|
|
494,586
|
|
|
—
|
|
|
—
|
|
|||||
|
Interest-bearing checking
|
1,136,282
|
|
|
1,136,282
|
|
|
1,136,282
|
|
|
—
|
|
|
—
|
|
|||||
|
Savings
|
197,698
|
|
|
197,698
|
|
|
197,698
|
|
|
—
|
|
|
—
|
|
|||||
|
Certificates of deposit under $100,000
|
326,832
|
|
|
324,978
|
|
|
—
|
|
|
324,978
|
|
|
—
|
|
|||||
|
Certificates of deposit $100,000 and over
|
325,050
|
|
|
324,060
|
|
|
—
|
|
|
324,060
|
|
|
—
|
|
|||||
|
Total deposits
|
2,480,448
|
|
|
2,477,604
|
|
|
1,828,566
|
|
|
649,038
|
|
|
—
|
|
|||||
|
Federal funds purchased and securities sold under agreements to repurchase
|
117,871
|
|
|
117,871
|
|
|
117,871
|
|
|
—
|
|
|
—
|
|
|||||
|
Federal Home Loan Bank borrowings
|
115,000
|
|
|
114,590
|
|
|
—
|
|
|
114,590
|
|
|
—
|
|
|||||
|
Junior subordinated notes issued to capital trusts
|
23,692
|
|
|
19,248
|
|
|
—
|
|
|
19,248
|
|
|
—
|
|
|||||
|
Long-term debt
|
17,500
|
|
|
17,500
|
|
|
—
|
|
|
17,500
|
|
|
—
|
|
|||||
|
Accrued interest payable
|
1,472
|
|
|
1,472
|
|
|
1,472
|
|
|
—
|
|
|
—
|
|
•
|
Cash and cash equivalents, federal funds purchased, securities sold under repurchase agreements, and accrued interest are instruments with carrying values that approximate fair value.
|
•
|
Investment securities available for sale are measured at fair value on a recurring basis. Held to maturity securities are carried at amortized cost. Fair value is based upon quoted prices, if available. If a quoted price is not available, the fair value is obtained from benchmarking the security against similar securities by using a third-party pricing service.
|
•
|
Loans held for sale are carried at the lower of cost or fair value, with fair value being based on recent observable loan sales. The portfolio has historically consisted primarily of residential real estate loans.
|
•
|
For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are determined using estimated future cash flows, discounted at the interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. The Company does record nonrecurring fair value adjustments to loans to reflect (1) partial write-downs and allowances that are based on the observable market price or appraised value of the collateral or (2) the full charge-off of the loan carrying value.
|
•
|
The fair value of FHLB stock is estimated at its carrying value and redemption price of
$100
per share.
|
•
|
Deposit liabilities are carried at historical cost. The fair value of non-interest bearing demand deposits, savings accounts and certain interest-bearing checking deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. If the fair value of the fixed maturity certificates of deposit is calculated at less than the carrying amount, the carrying value of these deposits is reported as the fair value.
|
•
|
FHLB borrowings, junior subordinated notes issued to capital trusts, and long-term debt are recorded at historical cost. The fair value of these items is estimated using discounted cash flow analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements.
|
|
|
Quantitative Information About Level 3 Fair Value Measurements
|
|
|
|
|
||||||||
|
(dollars in thousands)
|
Fair Value at March 31, 2017
|
|
Valuation Techniques(s)
|
|
Unobservable Input
|
|
Range of Inputs
|
|
Weighted Average
|
||||
|
Collateral dependent impaired loans
|
$
|
10,040
|
|
|
Modified appraised value
|
|
Third party appraisal
|
|
NM *
|
|
NM *
|
|
NM *
|
|
|
|
|
|
|
Appraisal discount
|
|
NM *
|
|
NM *
|
|
NM *
|
||
|
Other real estate owned
|
$
|
1,696
|
|
|
Modified appraised value
|
|
Third party appraisal
|
|
NM *
|
|
NM *
|
|
NM *
|
|
|
|
|
|
|
Appraisal discount
|
|
NM *
|
|
NM *
|
|
NM *
|
Adjusted Noninterest Income:
|
|
|
|
||||
Noninterest income
|
$
|
5,537
|
|
|
$
|
6,405
|
|
Less: Impairment losses on investment securities, net
|
—
|
|
|
—
|
|
||
Gain on sale of available for sale securities
|
—
|
|
|
244
|
|
||
Gain on sale of held to maturity securities
|
43
|
|
|
—
|
|
||
Loss on sale of premises and equipment
|
(2
|
)
|
|
(211
|
)
|
||
Other gain
|
13
|
|
|
1,183
|
|
||
Adjusted noninterest income
|
$
|
5,483
|
|
|
$
|
5,189
|
|
Total Revenue:
|
|
|
|
||||
Net interest income
|
$
|
25,081
|
|
|
$
|
25,555
|
|
Plus: Noninterest income
|
5,537
|
|
|
6,405
|
|
||
Less: Impairment losses on investment securities, net
|
—
|
|
|
—
|
|
||
Gain on sale of available for sale securities
|
—
|
|
|
244
|
|
||
Gain on sale of held to maturity securities
|
43
|
|
|
—
|
|
||
Loss on sale of premises and equipment
|
(2
|
)
|
|
(211
|
)
|
||
Other gain
|
13
|
|
|
1,183
|
|
||
Total Revenue
|
$
|
30,564
|
|
|
$
|
30,744
|
|
Adjusted Noninterest Income as a Percentage of Total Revenue
|
17.9
|
%
|
|
16.9
|
%
|
|
As of March 31,
|
||||||
(dollars in thousands, except per share amounts)
|
2017
|
|
2016
|
||||
Tangible Equity:
|
|
|
|
||||
Total shareholders’ equity
|
$
|
327,514
|
|
|
$
|
301,777
|
|
Plus: Deferred tax liability associated with intangibles
|
2,741
|
|
|
4,500
|
|
||
Less: Intangible assets, net
|
(78,976
|
)
|
|
(82,734
|
)
|
||
Tangible equity
|
$
|
251,279
|
|
|
$
|
223,543
|
|
Tangible Assets:
|
|
|
|
||||
Total assets
|
$
|
3,083,515
|
|
|
$
|
2,964,218
|
|
Plus: Deferred tax liability associated with intangibles
|
2,741
|
|
|
4,500
|
|
||
Less: Intangible assets, net
|
(78,976
|
)
|
|
(82,734
|
)
|
||
Tangible assets
|
$
|
3,007,280
|
|
|
$
|
2,885,984
|
|
Common shares outstanding
|
11,959,521
|
|
|
11,425,035
|
|
||
Tangible Book Value Per Share
|
$
|
21.01
|
|
|
$
|
19.57
|
|
Tangible Equity/Tangible Assets
|
8.36
|
%
|
|
7.75
|
%
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rate/
Yield
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rate/
Yield
|
||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
(1)(2)(3)
|
$
|
2,161,054
|
|
|
$
|
24,682
|
|
|
4.63
|
%
|
|
$
|
2,167,492
|
|
|
$
|
25,544
|
|
|
4.74
|
%
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investments
|
440,381
|
|
|
2,718
|
|
|
2.50
|
|
|
344,680
|
|
|
1,924
|
|
|
2.25
|
|
||||
Tax exempt investments
(2)
|
215,194
|
|
|
2,395
|
|
|
4.51
|
|
|
189,496
|
|
|
2,196
|
|
|
4.66
|
|
||||
Total investment securities
|
655,575
|
|
|
5,113
|
|
|
3.16
|
|
|
534,176
|
|
|
4,120
|
|
|
3.10
|
|
||||
Federal funds sold and interest-bearing balances
|
2,577
|
|
|
5
|
|
|
0.79
|
|
|
6,247
|
|
|
8
|
|
|
0.52
|
|
||||
Total interest-earning assets
|
$
|
2,819,206
|
|
|
$
|
29,800
|
|
|
4.29
|
%
|
|
$
|
2,707,915
|
|
|
$
|
29,672
|
|
|
4.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
35,071
|
|
|
|
|
|
|
37,496
|
|
|
|
|
|
||||||||
Premises and equipment
|
74,975
|
|
|
|
|
|
|
76,304
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(22,246
|
)
|
|
|
|
|
|
(19,849
|
)
|
|
|
|
|
||||||||
Other assets
|
152,391
|
|
|
|
|
|
|
159,596
|
|
|
|
|
|
||||||||
Total assets
|
$
|
3,059,397
|
|
|
|
|
|
|
$
|
2,961,462
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings and interest-bearing demand deposits
|
$
|
1,338,035
|
|
|
$
|
849
|
|
|
0.26
|
%
|
|
$
|
1,236,800
|
|
|
$
|
866
|
|
|
0.28
|
%
|
Certificates of deposit
|
669,290
|
|
|
1,776
|
|
|
1.08
|
|
|
645,205
|
|
|
1,208
|
|
|
0.75
|
|
||||
Total deposits
|
2,007,325
|
|
|
2,625
|
|
|
0.53
|
|
|
1,882,005
|
|
|
2,074
|
|
|
0.44
|
|
||||
Federal funds purchased and repurchase agreements
|
89,260
|
|
|
84
|
|
|
0.38
|
|
|
63,849
|
|
|
78
|
|
|
0.49
|
|
||||
Federal Home Loan Bank borrowings
|
111,111
|
|
|
443
|
|
|
1.62
|
|
|
127,852
|
|
|
451
|
|
|
1.42
|
|
||||
Long-term debt and other
|
42,565
|
|
|
334
|
|
|
3.18
|
|
|
47,755
|
|
|
327
|
|
|
2.75
|
|
||||
Total borrowed funds
|
242,936
|
|
|
861
|
|
|
1.44
|
|
|
239,456
|
|
|
856
|
|
|
1.44
|
|
||||
Total interest-bearing liabilities
|
$
|
2,250,261
|
|
|
$
|
3,486
|
|
|
0.63
|
%
|
|
$
|
2,121,461
|
|
|
$
|
2,930
|
|
|
0.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest spread
(2)
|
|
|
|
|
3.66
|
%
|
|
|
|
|
|
3.85
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
480,681
|
|
|
|
|
|
|
524,132
|
|
|
|
|
|
||||||||
Other liabilities
|
20,137
|
|
|
|
|
|
|
16,798
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
308,318
|
|
|
|
|
|
|
299,071
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
3,059,397
|
|
|
|
|
|
|
$
|
2,961,462
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income/earning assets
(2)
|
$
|
2,819,206
|
|
|
$
|
29,800
|
|
|
4.29
|
%
|
|
$
|
2,707,915
|
|
|
$
|
29,672
|
|
|
4.41
|
%
|
Interest expense/earning assets
|
$
|
2,819,206
|
|
|
$
|
3,486
|
|
|
0.50
|
%
|
|
$
|
2,707,915
|
|
|
$
|
2,930
|
|
|
0.44
|
%
|
Net interest margin
(2)(4)
|
|
|
$
|
26,314
|
|
|
3.79
|
%
|
|
|
|
$
|
26,742
|
|
|
3.97
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP to GAAP Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax Equivalent Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
|
$
|
403
|
|
|
|
|
|
|
$
|
428
|
|
|
|
||||||
Securities
|
|
|
830
|
|
|
|
|
|
|
759
|
|
|
|
||||||||
Total tax equivalent adjustment
|
|
|
1,233
|
|
|
|
|
|
|
1,187
|
|
|
|
||||||||
Net Interest Income
|
|
|
$
|
25,081
|
|
|
|
|
|
|
$
|
25,555
|
|
|
|
|
(1)
|
Loan fees included in interest income are not material.
|
|
(2)
|
Computed on a tax-equivalent basis, assuming a federal income tax rate of 35%.
|
|
(3)
|
Non-accrual loans have been included in average loans, net of unearned discount.
|
|
(4)
|
Net interest margin is tax-equivalent net interest income as a percentage of average earning assets.
|
|
Three Months Ended March 31,
|
||||||||||
|
2017 Compared to 2016 Change due to
|
||||||||||
|
Volume
|
|
Rate/Yield
|
|
Net
|
||||||
(in thousands)
|
|
|
|
|
|
||||||
Increase (decrease) in interest income:
|
|
|
|
|
|
||||||
Loans, tax equivalent
|
$
|
(98
|
)
|
|
$
|
(764
|
)
|
|
$
|
(862
|
)
|
Investment securities:
|
|
|
|
|
|
||||||
Taxable investments
|
567
|
|
|
227
|
|
|
794
|
|
|||
Tax exempt investments
|
620
|
|
|
(421
|
)
|
|
199
|
|
|||
Total investment securities
|
1,187
|
|
|
(194
|
)
|
|
993
|
|
|||
Federal funds sold and interest-bearing balances
|
(19
|
)
|
|
16
|
|
|
(3
|
)
|
|||
Change in interest income
|
1,070
|
|
|
(942
|
)
|
|
128
|
|
|||
Increase (decrease) in interest expense:
|
|
|
|
|
|
||||||
Savings and interest-bearing demand deposits
|
255
|
|
|
(272
|
)
|
|
(17
|
)
|
|||
Certificates of deposit
|
44
|
|
|
524
|
|
|
568
|
|
|||
Total deposits
|
299
|
|
|
252
|
|
|
551
|
|
|||
Federal funds purchased and repurchase agreements
|
94
|
|
|
(88
|
)
|
|
6
|
|
|||
Federal Home Loan Bank borrowings
|
(250
|
)
|
|
242
|
|
|
(8
|
)
|
|||
Other long-term debt
|
(166
|
)
|
|
173
|
|
|
7
|
|
|||
Total borrowed funds
|
(322
|
)
|
|
327
|
|
|
5
|
|
|||
Change in interest expense
|
(23
|
)
|
|
579
|
|
|
556
|
|
|||
Change in net interest income
|
$
|
1,093
|
|
|
$
|
(1,521
|
)
|
|
$
|
(428
|
)
|
Percentage change in net interest income over prior period
|
|
|
|
|
(1.6
|
)%
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|||||||
Trust, investment, and insurance fees
|
$
|
1,612
|
|
|
$
|
1,498
|
|
|
$
|
114
|
|
|
7.6
|
%
|
Service charges and fees on deposit accounts
|
1,283
|
|
|
1,258
|
|
|
25
|
|
|
2.0
|
|
|||
Loan origination and servicing fees
|
802
|
|
|
619
|
|
|
183
|
|
|
29.6
|
|
|||
Other service charges and fees
|
1,458
|
|
|
1,430
|
|
|
28
|
|
|
2.0
|
|
|||
Bank-owned life insurance income
|
328
|
|
|
384
|
|
|
(56
|
)
|
|
(14.6
|
)
|
|||
Gain on sale or call of available for sale securities
|
—
|
|
|
244
|
|
|
(244
|
)
|
|
NM
|
||||
Gain on sale of held to maturity securities
|
43
|
|
|
—
|
|
|
43
|
|
|
NM
|
||||
Loss on sale of premises and equipment
|
(2
|
)
|
|
(211
|
)
|
|
209
|
|
|
(99.1
|
)
|
|||
Other gain
|
13
|
|
|
1,183
|
|
|
(1,170
|
)
|
|
(98.9
|
)
|
|||
Total noninterest income
|
$
|
5,537
|
|
|
$
|
6,405
|
|
|
$
|
(868
|
)
|
|
(13.6
|
)%
|
Adjusted noninterest income as a % of total revenue*
|
17.9
|
%
|
|
16.9
|
%
|
|
|
|
|
|||||
NM - Percentage change not considered meaningful.
|
|
|
|
|
|
|
|
|||||||
* See the non-GAAP reconciliation at the beginning of this section for the reconciliation of this non-GAAP measure to its most directly comparable GAAP financial measures.
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits
|
$
|
11,884
|
|
|
$
|
12,645
|
|
|
$
|
(761
|
)
|
|
(6.0
|
)%
|
Net occupancy and equipment expense
|
3,304
|
|
|
3,251
|
|
|
53
|
|
|
1.6
|
|
|||
Professional fees
|
1,022
|
|
|
946
|
|
|
76
|
|
|
8.0
|
|
|||
Data processing expense
|
711
|
|
|
2,573
|
|
|
(1,862
|
)
|
|
(72.4
|
)
|
|||
FDIC insurance expense
|
367
|
|
|
421
|
|
|
(54
|
)
|
|
(12.8
|
)
|
|||
Amortization of intangible assets
|
849
|
|
|
1,061
|
|
|
(212
|
)
|
|
(20.0
|
)
|
|||
Other operating expense
|
2,198
|
|
|
2,549
|
|
|
(351
|
)
|
|
(13.8
|
)
|
|||
Total noninterest expense
|
$
|
20,335
|
|
|
$
|
23,446
|
|
|
$
|
(3,111
|
)
|
|
(13.3
|
)%
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||
|
Balance
|
|
% of Total
|
|
Balance
|
|
% of Total
|
||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||
Agricultural
|
$
|
108,782
|
|
|
5.0
|
%
|
|
$
|
113,343
|
|
|
5.2
|
%
|
Commercial and industrial
|
458,449
|
|
|
21.2
|
|
|
459,481
|
|
|
21.2
|
|
||
Credit cards
(1)
|
—
|
|
|
—
|
|
|
1,489
|
|
|
0.1
|
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Construction and development
|
134,401
|
|
|
6.2
|
|
|
126,685
|
|
|
5.9
|
|
||
Farmland
|
91,777
|
|
|
4.2
|
|
|
94,979
|
|
|
4.4
|
|
||
Multifamily
|
140,279
|
|
|
6.5
|
|
|
136,003
|
|
|
6.3
|
|
||
Commercial real estate-other
|
711,886
|
|
|
32.9
|
|
|
706,576
|
|
|
32.6
|
|
||
Total commercial real estate
|
1,078,343
|
|
|
49.8
|
|
|
1,064,243
|
|
|
49.2
|
|
||
Residential real estate:
|
|
|
|
|
|
|
|
||||||
One- to four-family first liens
|
368,806
|
|
|
17.0
|
|
|
372,233
|
|
|
17.2
|
|
||
One- to four-family junior liens
|
115,590
|
|
|
5.4
|
|
|
117,763
|
|
|
5.4
|
|
||
Total residential real estate
|
484,396
|
|
|
22.4
|
|
|
489,996
|
|
|
22.6
|
|
||
Consumer
|
35,074
|
|
|
1.6
|
|
|
36,591
|
|
|
1.7
|
|
||
Total loans
|
$
|
2,165,044
|
|
|
100.0
|
%
|
|
$
|
2,165,143
|
|
|
100.0
|
%
|
|
90 Days or More Past Due and Still Accruing Interest
|
|
Restructured
|
|
Nonaccrual
|
|
Total
|
||||||||
(in thousands)
|
|
|
|
|
|
|
|
||||||||
March 31, 2017
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
$
|
—
|
|
|
$
|
2,637
|
|
|
$
|
976
|
|
|
$
|
3,613
|
|
Commercial and industrial
(1)
|
531
|
|
|
2,259
|
|
|
8,676
|
|
|
11,466
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
23
|
|
|
—
|
|
|
1,534
|
|
|
1,557
|
|
||||
Farmland
|
2,547
|
|
|
—
|
|
|
226
|
|
|
2,773
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate-other
|
22
|
|
|
1,216
|
|
|
7,163
|
|
|
8,401
|
|
||||
Total commercial real estate
|
2,592
|
|
|
1,216
|
|
|
8,923
|
|
|
12,731
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
One- to four- family first liens
|
548
|
|
|
768
|
|
|
1,372
|
|
|
2,688
|
|
||||
One- to four- family junior liens
|
87
|
|
|
—
|
|
|
135
|
|
|
222
|
|
||||
Total residential real estate
|
635
|
|
|
768
|
|
|
1,507
|
|
|
2,910
|
|
||||
Consumer
|
4
|
|
|
—
|
|
|
89
|
|
|
93
|
|
||||
Total
|
$
|
3,762
|
|
|
$
|
6,880
|
|
|
$
|
20,171
|
|
|
$
|
30,813
|
|
|
90 Days or More Past Due and Still Accruing Interest
|
|
Restructured
|
|
Nonaccrual
|
|
Total
|
||||||||
(in thousands)
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
$
|
—
|
|
|
$
|
2,770
|
|
|
$
|
2,690
|
|
|
$
|
5,460
|
|
Commercial and industrial
|
—
|
|
|
595
|
|
|
8,358
|
|
|
8,953
|
|
||||
Credit cards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction and development
|
95
|
|
|
—
|
|
|
780
|
|
|
875
|
|
||||
Farmland
|
—
|
|
|
2,174
|
|
|
227
|
|
|
2,401
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate-other
|
—
|
|
|
247
|
|
|
7,360
|
|
|
7,607
|
|
||||
Total commercial real estate
|
95
|
|
|
2,421
|
|
|
8,367
|
|
|
10,883
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
One- to four- family first liens
|
375
|
|
|
1,501
|
|
|
1,127
|
|
|
3,003
|
|
||||
One- to four- family junior liens
|
15
|
|
|
13
|
|
|
116
|
|
|
144
|
|
||||
Total residential real estate
|
390
|
|
|
1,514
|
|
|
1,243
|
|
|
3,147
|
|
||||
Consumer
|
—
|
|
|
12
|
|
|
10
|
|
|
22
|
|
||||
Total
|
$
|
485
|
|
|
$
|
7,312
|
|
|
$
|
20,668
|
|
|
$
|
28,465
|
|
•
|
The borrower receives a reduction of the stated interest rate for the remaining original life of the debt.
|
•
|
The borrower receives an extension of the maturity date or dates at a stated interest rate lower than the current market interest rate for new debt with similar risk characteristics.
|
•
|
The borrower receives a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement.
|
•
|
The borrower receives a deferral of required payments (principal and/or interest).
|
•
|
The borrower receives a reduction of the accrued interest.
|
|
March 31,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Restructured Loans (TDRs):
|
|
|
|
||||
In compliance with modified terms
|
$
|
6,880
|
|
|
$
|
7,312
|
|
Not in compliance with modified terms - on nonaccrual status or 90 days or more past due and still accruing interest
|
2,657
|
|
|
1,003
|
|
||
Total restructured loans
|
$
|
9,537
|
|
|
$
|
8,315
|
|
|
At March 31, 2017
|
||||||||||||||||||||
|
Gross Loans
(A)
|
|
Discount
(B)
|
|
Loans, Net of Discount
(A-B)
|
|
Allowance
(C) |
|
Allowance/Gross Loans
(C/A)
|
|
Allowance + Discount/Gross Loans
((B+C)/A)
|
||||||||||
Total Non-Acquired Loans
|
$
|
1,722,540
|
|
|
$
|
—
|
|
|
$
|
1,722,540
|
|
|
$
|
21,596
|
|
|
1.25
|
%
|
|
1.25
|
%
|
Total Acquired Loans
|
454,703
|
|
|
12,199
|
|
|
442,504
|
|
|
621
|
|
|
0.14
|
|
|
2.82
|
|
||||
Total Loans
|
$
|
2,177,243
|
|
|
$
|
12,199
|
|
|
$
|
2,165,044
|
|
|
$
|
22,217
|
|
|
1.03
|
%
|
|
1.58
|
%
|
|
At December 31, 2016
|
||||||||||||||||||||
|
Gross Loans
(A)
|
|
Discount
(B)
|
|
Loans, Net of Discount
(A-B)
|
|
Allowance
(C) |
|
Allowance/Gross Loans
(C/A)
|
|
Allowance + Discount/Gross Loans
((B+C)/A)
|
||||||||||
Total Non-Acquired Loans
|
$
|
1,677,935
|
|
|
$
|
—
|
|
|
$
|
1,677,935
|
|
|
$
|
21,229
|
|
|
1.27
|
%
|
|
1.27
|
%
|
Total Acquired Loans
|
500,423
|
|
|
13,215
|
|
|
487,208
|
|
|
621
|
|
|
0.12
|
|
|
2.76
|
|
||||
Total Loans
|
$
|
2,178,358
|
|
|
$
|
13,215
|
|
|
$
|
2,165,143
|
|
|
$
|
21,850
|
|
|
1.01
|
%
|
|
1.61
|
%
|
|
At March 31,
|
|
At December 31,
|
||||
(in thousands)
|
2017
|
|
2016
|
||||
Tier 1 capital
|
|
|
|
||||
Total shareholders’ equity
|
$
|
327,514
|
|
|
$
|
305,456
|
|
Less: Net unrealized gains on securities available for sale
|
182
|
|
|
1,133
|
|
||
Disallowed Intangibles
|
(73,949
|
)
|
|
(71,951
|
)
|
||
Common equity tier 1 capital
|
$
|
253,747
|
|
|
234,638
|
|
|
Plus: Junior subordinated notes issued to capital trusts (qualifying restricted core capital)
|
23,718
|
|
|
23,692
|
|
||
Tier 1 capital
|
$
|
277,465
|
|
|
$
|
258,330
|
|
Risk-weighted assets
|
$
|
2,479,678
|
|
|
$
|
2,407,661
|
|
Tier 1 capital to risk-weighted assets
|
11.19
|
%
|
|
10.73
|
%
|
||
Common equity tier 1 capital to risk-weighted assets
|
10.23
|
%
|
|
9.75
|
%
|
•
|
credit quality deterioration or pronounced and sustained reduction in real estate market values that cause an increase in our allowance for credit losses and a reduction in net earnings;
|
•
|
our management’s ability to reduce and effectively manage interest rate risk and the impact of interest rates in general on the volatility of our net interest income;
|
•
|
changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing;
|
•
|
fluctuations in the value of our investment securities;
|
•
|
governmental monetary and fiscal policies;
|
•
|
legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators (particularly with respect to the Basel III Rules and changes in the scope and cost of FDIC insurance and other coverages);
|
•
|
the ability to attract and retain key executives and employees experienced in banking and financial services;
|
•
|
the sufficiency of the allowance for loan losses to absorb the amount of actual losses inherent in our existing loan portfolio;
|
•
|
our ability to adapt successfully to technological changes to compete effectively in the marketplace;
|
•
|
credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio;
|
•
|
the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, and other financial institutions operating in our markets or elsewhere or providing similar services;
|
•
|
the failure of assumptions underlying the establishment of allowances for loan losses and estimation of values of collateral and various financial assets and liabilities;
|
•
|
the risks of mergers, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions;
|
•
|
volatility of rate-sensitive deposits;
|
•
|
operational risks, including data processing system failures or fraud;
|
•
|
asset/liability matching risks and liquidity risks;
|
•
|
the costs, effects and outcomes of existing or future litigation;
|
•
|
changes in general economic or industry conditions, internationally, nationally or in the communities in which we conduct business;
|
•
|
changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the FASB;
|
•
|
war or terrorist activities which may cause further deterioration in the economy or cause instability in credit markets;
|
•
|
the effects of cyber-attacks; and
|
•
|
other factors and risks described under “Risk Factors” in our Annual Report on Form 10-K for the period ended
December 31, 2016
and otherwise in our reports and filings with the Securities and Exchange Commission.
|
|
|
Immediate Change in Rates
|
|
||||||||||
|
|
-100
|
|
+100
|
|
+200
|
|
||||||
|
(dollars in thousands)
|
|
|
|
|
|
|
||||||
|
March 31, 2017
|
|
|
|
|
|
|
||||||
|
Dollar change
|
$
|
(1,191
|
)
|
|
$
|
636
|
|
|
$
|
1,616
|
|
|
|
Percent change
|
(1.2
|
)%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
|||
|
December 31, 2016
|
|
|
|
|
|
|
||||||
|
Dollar change
|
$
|
(1,276
|
)
|
|
$
|
157
|
|
|
$
|
453
|
|
|
|
Percent change
|
(1.3
|
)%
|
|
0.2
|
%
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
Incorporated by Reference to:
|
|
|
|
|
|
3.1
|
|
Articles of Amendment to the Amended and Restated Articles of Incorporation of MidWest
One
Financial Group, Inc. (Third Amendment), as filed with the Iowa Secretary of State on April 21, 2017
|
|
Filed herewith
|
|
|
|
|
|
10.1
|
|
MidWest
One
Financial Group, Inc. 2017 Equity Incentive Plan
|
|
Appendix A to the Company’s definitive proxy statement filed on March 10, 2017 (File No. 001-35968)
|
|
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)
|
|
Filed herewith
|
|
|
|
||
31.2
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)
|
|
Filed herewith
|
|
|
|
||
32.1
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
||
32.2
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
Filed herewith
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
Filed herewith
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Filed herewith
|
|
|
|
|
|
|
|
|
|
|
M
ID
W
EST
O
NE
F
INANCIAL
G
ROUP
, I
NC
.
|
|
|
||
|
|
|
|
|
|
|
|
Dated:
|
May 4, 2017
|
|
By:
|
|
/s/ C
HARLES
N. F
UNK
|
|
|
|
|
|
|
|
Charles N. Funk
|
|
|
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ K
ATIE
A. L
ORENSON
|
|
|
|
|
|
|
|
Katie A. Lorenson
|
|
|
|
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
MIDWEST
ONE
FINANCIAL GROUP, INC.
|
|
|
By:
|
/s/ Charles N. Funk
|
|
Name:
|
Charles N. Funk
|
|
Title:
|
President and Chief Executive Officer
|
|
1)
|
I have reviewed this Quarterly Report on Form 10-Q of MidWest
One
Financial Group, Inc.;
|
||
|
|
|
|
|
|
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)
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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;
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4)
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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:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5)
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The registrant's other certifying officer 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):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ C
HARLES
N. F
UNK
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Charles N. Funk
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President and Chief Executive Officer
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Date:
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May 4, 2017
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1)
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I have reviewed this Quarterly Report on Form 10-Q of MidWest
One
Financial Group, Inc.;
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2)
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
||
|
|
|
|
|
|
4)
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
||
|
|
|
|
|
|
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
|
|
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
|
|
|
|
|
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
|
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|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
|
|
|
|
|
5)
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
||
|
|
|
|
|
|
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
|
|
|
|
|
|
|
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ K
ATIE
A. L
ORENSON
|
|
Katie A. Lorenson
|
|
Senior Vice President and Chief Financial Officer
|
|
Date:
|
May 4, 2017
|
|
(a)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
|
|
|
(b)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWest
One
Financial Group, Inc.
|
/s/ C
HARLES
N. F
UNK
|
|
Charles N. Funk
|
|
President and Chief Executive Officer
|
|
Date:
|
May 4, 2017
|
|
(a)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
|
|
|
(b)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWest
One
Financial Group, Inc.
|
/s/ K
ATIE
A. L
ORENSON
|
|
Katie A. Lorenson
|
|
Senior Vice President and Chief Financial Officer
|
|
Date:
|
May 4, 2017
|