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FORM 10-K
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☒
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ANNUAL 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
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(I.R.S. Employer
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Incorporation or Organization)
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Identification Number)
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Title of each Class
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Name of each exchange on which registered
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Common Stock, $1.00 par value
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The Nasdaq Stock Market LLC
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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 1A.
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Item 1B.
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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 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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I
TEM
1.
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B
USINESS
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•
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A ratio of minimum Common Equity Tier 1 Capital equal to 4.5% of risk-weighted assets;
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•
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An increase in the minimum required amount of Tier 1 Capital from 4% to 6% of risk-weighted assets;
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•
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A continuation of the minimum required amount of Total Capital (Tier 1 plus Tier 2) at 8% of risk-weighted assets; and
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•
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A minimum leverage ratio of Tier 1 Capital to total quarterly average assets equal to 4% in all circumstances.
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•
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A Common Equity Tier 1 Capital ratio to risk-weighted assets of 6.5% or more;
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•
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A ratio of Tier 1 Capital to total risk-weighted assets of 8% or more (6% under Basel I);
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•
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A ratio of Total Capital to total risk-weighted assets of 10% or more (the same as Basel I); and
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•
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A leverage ratio of Tier 1 Capital to total adjusted average quarterly assets of 5% or greater.
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•
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credit quality deterioration or pronounced and sustained reduction in real estate market values could cause an increase in our allowance for loan losses and a reduction in net earnings;
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•
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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;
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•
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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;
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•
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fluctuations in the value of our investment securities;
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•
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governmental monetary and fiscal policies;
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•
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legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, and changes in the scope and cost of FDIC insurance and other coverages;
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•
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the ability to attract and retain key executives and employees experienced in banking and financial services;
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•
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the sufficiency of the allowance for loan losses to absorb the amount of actual losses inherent in our existing loan portfolio;
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•
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our ability to adapt successfully to technological changes to compete effectively in the marketplace;
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•
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credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio;
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•
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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;
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•
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the failure of assumptions underlying the establishment of allowances for loan losses and estimation of values of collateral and various financial assets and liabilities;
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•
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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;
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•
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volatility of rate-sensitive deposits;
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•
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operational risks, including data processing system failures or fraud;
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•
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asset/liability matching risks and liquidity risks;
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•
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the costs, effects and outcomes of existing or future litigation;
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•
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changes in general economic or industry conditions, nationally, internationally, or in the communities in which we conduct business;
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•
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changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the FASB;
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•
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war or terrorist activities which may cause deterioration in the economy or cause instability in credit markets;
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•
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cyber-attacks; and
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•
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other factors and risks described under “Risk Factors” herein.
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I
TEM
1A.
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R
ISK
F
ACTORS
.
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•
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the company’s net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends;
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•
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the prospective rate of earnings retention is inconsistent with the company’s capital needs and overall current and prospective financial condition; or
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•
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the company will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
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•
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We may incur time and expense associated with identifying and evaluating potential acquisitions and negotiating potential transactions, resulting in our attention being diverted from the operation of our existing business;
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We are exposed to potential asset and credit quality risks and unknown or contingent liabilities of the banks or businesses we acquire. If these issues or liabilities exceed our estimates, our earnings, capital and financial condition may be materially and adversely affected.
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The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity. This integration process is complicated and time consuming and can also be disruptive to the customers and employees of the acquired business and our business. If the integration process is not conducted successfully, we may not realize the anticipated economic benefits of acquisitions within the expected time frame, or ever, and we may lose customers or employees of the acquired business. We may also experience greater than anticipated customer losses even if the integration process is successful.
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•
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To finance an acquisition, we may borrow funds or pursue other forms of financing, such as issuing voting and/or non-voting common stock or convertible preferred stock, which may have high dividend rights or may be highly dilutive to holders of our common stock, thereby increasing our leverage and diminishing our liquidity, or issuing capital stock, which could dilute the interests of our existing shareholders.
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•
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We may be unsuccessful in realizing the anticipated benefits from acquisitions. For example, we may not be successful in realizing anticipated cost savings. We also may not be successful in preventing disruptions in service to existing customer relationships of the acquired institution, which could lead to a loss in revenues.
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I
TEM
1B.
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U
NRESOLVED
S
TAFF
C
OMMENTS
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I
TEM
2.
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P
ROPERTIES
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Facility Address
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Facility
Square
Footage
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Owned or
Leased
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Iowa Offices
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802 13th Street in Belle Plaine
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5,013
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Owned
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3225 Division Street in Burlington
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10,550
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Owned
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4510 Prairie Parkway in Cedar Falls
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14,500
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Owned
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120 West Center Street in Conrad
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8,382
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Owned
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110 First Avenue in Coralville
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5,000
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Owned
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58 East Burlington Avenue in Fairfield
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5,896
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Owned
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2408 West Burlington Avenue in Fairfield
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3,520
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Owned
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926 Avenue G in Fort Madison
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3,548
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Owned
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102 South Clinton Street in Iowa City
(1)
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58,440
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Owned
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500 South Clinton Street in Iowa City
(2)
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44,427
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Owned
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1906 Keokuk Street in Iowa City
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6,333
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Owned
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2233 Rochester Avenue in Iowa City
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3,916
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Owned
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202 Main Street in Melbourne
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2,800
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Owned
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10030 Highway 149 in North English
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2,080
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Owned
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465 Highway 965 NE, Suite A in North Liberty
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3,245
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Leased
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124 South First Street in Oskaloosa
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7,160
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Owned
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222 First Avenue East in Oskaloosa
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6,692
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Owned
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1001 Highway 57 in Parkersburg
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7,420
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Owned
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700 Main Street in Pella
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9,374
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Leased
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500 Oskaloosa Street in Pella
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1,960
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Owned
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112 North Main Street in Sigourney
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4,440
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Owned
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3110 Kimball Avenue in Waterloo
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3,364
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Leased
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305 West Rainbow Drive in West Liberty
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4,791
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Owned
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Minnesota Offices
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7111 21st Avenue N. in Centerville
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3,167
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Owned
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7031 20th Avenue S. in Centerville
(3)
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2,400
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Leased
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11151 Lake Boulevard in Chisago City
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2,500
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Owned
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3585 124th Avenue in Coon Rapids
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4,125
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Owned
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6640 Shady Oak Road in Eden Prairie
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4,464
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Leased
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18233 Carson Court NW in Elk River
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6,393
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Owned
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1650 South Lake Street in Forest Lake
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8,150
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Owned
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945 Winnetka Avenue N. in Golden Valley
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18,078
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Owned
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2120 Hennepin Avenue S. in Minneapolis
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4,360
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Owned
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2104 Hastings Avenue in Newport
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16,600
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Owned
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750 Central Avenue E., Suite 100 in Saint Michael
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7,378
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Leased
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835 Southview Boulevard in South Saint Paul
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11,088
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Owned
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2270 Frontage Road W. in Stillwater
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12,730
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Owned
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3670 East County Line N. in White Bear Lake
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5,440
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Owned
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I
TEM
3.
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L
EGAL
P
ROCEEDINGS
.
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I
TEM
4.
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M
INE
S
AFETY
D
ISCLOSURES
.
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I
TEM
5.
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M
ARKET FOR
R
EGISTRANT’S
C
OMMON
E
QUITY
, R
ELATED
S
TOCKHOLDER
M
ATTERS AND
I
SSUER
P
URCHASES OF
E
QUITY
S
ECURITIES
.
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Cash
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||||||
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Dividend
|
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||||||
|
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High
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Low
|
|
Declared
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||||||
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2016
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||||||
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First Quarter
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$
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30.04
|
|
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$
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24.71
|
|
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$
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0.160
|
|
|
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Second Quarter
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30.50
|
|
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25.49
|
|
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0.160
|
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|||
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Third Quarter
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30.74
|
|
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26.50
|
|
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0.160
|
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|||
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Fourth Quarter
|
39.20
|
|
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27.93
|
|
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0.160
|
|
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|||
|
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|
|
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|
||||||
|
2017
|
|
|
|
|
|
|
||||||
|
First Quarter
|
$
|
38.56
|
|
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$
|
33.25
|
|
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$
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0.165
|
|
|
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Second Quarter
|
36.72
|
|
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32.92
|
|
|
0.165
|
|
|
|||
|
Third Quarter
|
35.63
|
|
|
31.93
|
|
|
0.170
|
|
|
|||
|
Fourth Quarter
|
37.94
|
|
|
30.56
|
|
|
0.170
|
|
|
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|
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At
|
||||||||||||||||||||||
Index
|
12/31/2012
|
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12/31/2013
|
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12/31/2014
|
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12/31/2015
|
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12/31/2016
|
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12/31/2017
|
||||||||||||
MidWest
One
Financial Group, Inc.
|
$
|
100.00
|
|
|
$
|
135.38
|
|
|
$
|
146.72
|
|
|
$
|
158.01
|
|
|
$
|
199.65
|
|
|
$
|
181.47
|
|
Nasdaq Composite Index
|
100.00
|
|
|
140.12
|
|
|
160.78
|
|
|
171.97
|
|
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187.22
|
|
|
242.71
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||||||
SNL-Midwestern Banks Index
|
100.00
|
|
|
136.91
|
|
|
148.84
|
|
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151.10
|
|
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201.89
|
|
|
216.95
|
|
I
TEM
6.
|
S
ELECTED
F
INANCIAL
D
ATA
.
|
|
|
Year Ended December 31,
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||||||||||||||||||
(In thousands)
|
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2017
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2016
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2015
|
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2014
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2013
|
||||||||||
Selected balance sheet data:
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||||||||||
Total assets
|
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$
|
3,212,271
|
|
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$
|
3,079,575
|
|
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$
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2,979,975
|
|
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$
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1,800,302
|
|
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$
|
1,755,218
|
|
Total loans net of purchase accounting and unearned discounts
|
|
2,286,695
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|
|
2,165,143
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|
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2,151,942
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1,132,519
|
|
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1,088,412
|
|
|||||
Allowance for loan losses
|
|
28,059
|
|
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21,850
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|
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19,427
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|
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16,363
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|
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16,179
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|
|||||
Loan pool participations, net
|
|
—
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|
|
—
|
|
|
—
|
|
|
19,332
|
|
|
25,533
|
|
|||||
Total deposits
|
|
2,605,319
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|
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2,480,448
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|
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2,463,521
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1,408,542
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|
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1,374,942
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|
|||||
Federal funds purchased and repurchase agreements
|
|
97,229
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|
|
117,871
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|
|
68,963
|
|
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78,229
|
|
|
66,665
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|
|||||
Federal Home Loan Bank advances
|
|
115,000
|
|
|
115,000
|
|
|
87,000
|
|
|
93,000
|
|
|
106,900
|
|
|||||
Junior subordinated notes issued to capital trusts
|
|
23,793
|
|
|
23,692
|
|
|
23,587
|
|
|
15,464
|
|
|
15,464
|
|
|||||
Long-term debt
|
|
12,500
|
|
|
17,500
|
|
|
22,500
|
|
|
—
|
|
|
—
|
|
|||||
Total equity
|
|
340,304
|
|
|
305,456
|
|
|
296,178
|
|
|
192,731
|
|
|
178,016
|
|
|||||
|
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I
TEM
7.
|
M
ANAGEMENT’S
D
ISCUSSION AND
A
NALYSIS OF
F
INANCIAL
C
ONDITION AND
R
ESULTS OF
O
PERATIONS
.
|
|
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As of and For the Years Ended December 31,
|
|||||||
|
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2017
|
|
2016
|
|
2015
|
|||
Return on average assets
|
|
0.60
|
%
|
|
0.68
|
%
|
|
0.91
|
%
|
Return on average shareholders' total equity
|
|
5.58
|
|
|
6.69
|
|
|
9.84
|
|
Return on average tangible equity*
|
|
8.00
|
|
|
10.13
|
|
|
14.29
|
|
Dividend payout ratio
|
|
43.23
|
|
|
35.96
|
|
|
24.79
|
|
Average equity to average assets
|
|
10.81
|
|
|
10.18
|
|
|
9.21
|
|
Equity to assets ratio (at period end)
|
|
10.59
|
|
|
9.92
|
|
|
9.94
|
|
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
|
Average Balance
|
|
Interest Income/ Expense
|
|
Average Rate/Yield
|
|
Average Balance
|
|
Interest Income/ Expense
|
|
Average Rate/Yield
|
|
Average Balance
|
|
Interest Income/ Expense
|
|
Average Rate/Yield
|
|||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
(1)(2)(3)
|
$
|
2,201,364
|
|
|
$
|
104,096
|
|
|
4.73
|
%
|
|
$
|
2,161,376
|
|
|
$
|
99,854
|
|
|
4.62
|
%
|
|
$
|
1,962,846
|
|
|
$
|
87,837
|
|
|
4.47
|
%
|
Loan pool participations
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,032
|
|
|
798
|
|
|
7.95
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable investments
|
423,678
|
|
|
10,573
|
|
|
2.50
|
|
|
358,727
|
|
|
8,297
|
|
|
2.31
|
|
|
362,217
|
|
|
7,734
|
|
|
2.14
|
|
||||||
Tax exempt investments
(2)
|
217,650
|
|
|
9,536
|
|
|
4.38
|
|
|
192,656
|
|
|
8,726
|
|
|
4.53
|
|
|
180,298
|
|
|
8,451
|
|
|
4.69
|
|
||||||
Total investment securities
|
641,328
|
|
|
20,109
|
|
|
3.14
|
|
|
551,383
|
|
|
17,023
|
|
|
3.09
|
|
|
542,515
|
|
|
16,185
|
|
|
2.98
|
|
||||||
Federal funds sold and interest-bearing balances
|
11,138
|
|
|
142
|
|
|
1.27
|
|
|
34,734
|
|
|
166
|
|
|
0.48
|
|
|
26,288
|
|
|
71
|
|
|
0.27
|
|
||||||
Total earning assets
|
$
|
2,853,830
|
|
|
$
|
124,347
|
|
|
4.36
|
%
|
|
$
|
2,747,493
|
|
|
$
|
117,043
|
|
|
4.26
|
%
|
|
$
|
2,541,681
|
|
|
$
|
104,891
|
|
|
4.13
|
%
|
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
35,745
|
|
|
|
|
|
|
37,335
|
|
|
|
|
|
|
39,474
|
|
|
|
|
|
||||||||||||
Premises and equipment
|
75,082
|
|
|
|
|
|
|
75,948
|
|
|
|
|
|
|
66,842
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
(23,557
|
)
|
|
|
|
|
|
(20,909
|
)
|
|
|
|
|
|
(18,866
|
)
|
|
|
|
|
||||||||||||
Other assets
|
156,396
|
|
|
|
|
|
|
154,008
|
|
|
|
|
|
|
143,964
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
3,097,496
|
|
|
|
|
|
|
$
|
2,993,875
|
|
|
|
|
|
|
$
|
2,773,095
|
|
|
|
|
|
|||||||||
Average interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings and interest-bearing demand deposits
|
$
|
1,357,554
|
|
|
$
|
3,863
|
|
|
0.28
|
%
|
|
$
|
1,282,994
|
|
|
$
|
3,418
|
|
|
0.27
|
%
|
|
$
|
1,139,175
|
|
|
$
|
2,987
|
|
|
0.26
|
%
|
Certificates of deposit
|
674,757
|
|
|
7,626
|
|
|
1.13
|
|
|
649,986
|
|
|
5,961
|
|
|
0.92
|
|
|
648,516
|
|
|
4,851
|
|
|
0.75
|
|
||||||
Total deposits
|
2,032,311
|
|
|
11,489
|
|
|
0.57
|
|
|
1,932,980
|
|
|
9,379
|
|
|
0.49
|
|
|
1,787,691
|
|
|
7,838
|
|
|
0.44
|
|
||||||
Federal funds purchased and repurchase agreements
|
87,763
|
|
|
412
|
|
|
0.47
|
|
|
74,566
|
|
|
205
|
|
|
0.27
|
|
|
69,498
|
|
|
210
|
|
|
0.30
|
|
||||||
Federal Home Loan Bank borrowings
|
110,000
|
|
|
1,838
|
|
|
1.67
|
|
|
104,954
|
|
|
1,827
|
|
|
1.74
|
|
|
86,614
|
|
|
1,451
|
|
|
1.68
|
|
||||||
Long-term debt and other
|
40,679
|
|
|
1,406
|
|
|
3.46
|
|
|
45,788
|
|
|
1,311
|
|
|
2.86
|
|
|
40,603
|
|
|
1,149
|
|
|
2.83
|
|
||||||
Total borrowed funds
|
238,442
|
|
|
3,656
|
|
|
1.53
|
|
|
225,308
|
|
|
3,343
|
|
|
1.48
|
|
|
196,715
|
|
|
2,810
|
|
|
1.43
|
|
||||||
Total interest-bearing liabilities
|
$
|
2,270,753
|
|
|
$
|
15,145
|
|
|
0.67
|
%
|
|
$
|
2,158,288
|
|
|
$
|
12,722
|
|
|
0.59
|
%
|
|
$
|
1,984,406
|
|
|
$
|
10,648
|
|
|
0.54
|
%
|
Net interest spread
(2)
|
|
|
|
|
3.69
|
%
|
|
|
|
|
|
3.67
|
%
|
|
|
|
|
|
3.59
|
%
|
||||||||||||
Noninterest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
$
|
471,170
|
|
|
|
|
|
|
$
|
512,383
|
|
|
|
|
|
|
$
|
488,312
|
|
|
|
|
|
|||||||||
Other liabilities
|
20,607
|
|
|
|
|
|
|
18,534
|
|
|
|
|
|
|
45,070
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
334,966
|
|
|
|
|
|
|
304,670
|
|
|
|
|
|
|
255,307
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
3,097,496
|
|
|
|
|
|
|
$
|
2,993,875
|
|
|
|
|
|
|
$
|
2,773,095
|
|
|
|
|
|
|||||||||
Interest income/earning assets
(2)
|
$
|
2,853,830
|
|
|
$
|
124,347
|
|
|
4.36
|
%
|
|
$
|
2,747,493
|
|
|
$
|
117,043
|
|
|
4.26
|
%
|
|
$
|
2,541,681
|
|
|
$
|
104,891
|
|
|
4.13
|
%
|
Interest expense/earning assets
|
$
|
2,853,830
|
|
|
$
|
15,145
|
|
|
0.53
|
%
|
|
$
|
2,747,493
|
|
|
$
|
12,722
|
|
|
0.46
|
%
|
|
$
|
2,541,681
|
|
|
$
|
10,648
|
|
|
0.42
|
%
|
Net interest income/margin
(2)(5)
|
|
|
$
|
109,202
|
|
|
3.83
|
%
|
|
|
|
$
|
104,321
|
|
|
3.80
|
%
|
|
|
|
$
|
94,243
|
|
|
3.71
|
%
|
||||||
Non-GAAP to GAAP Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Tax Equivalent Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
|
|
|
$
|
1,730
|
|
|
|
|
|
|
$
|
1,692
|
|
|
|
|
|
|
$
|
1,293
|
|
|
|
|||||||||
Securities
|
|
|
3,297
|
|
|
|
|
|
|
3,023
|
|
|
|
|
|
|
2,898
|
|
|
|
||||||||||||
Total tax equivalent adjustment
|
|
|
5,027
|
|
|
|
|
|
|
4,715
|
|
|
|
|
|
|
4,191
|
|
|
|
||||||||||||
Net Interest Income
|
|
|
$
|
104,175
|
|
|
|
|
|
|
$
|
99,606
|
|
|
|
|
|
|
$
|
90,052
|
|
|
|
|
(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)
|
Includes interest income and discount realized on loan pool participations.
|
|
(5)
|
Net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets.
|
|
Years Ended December 31, 2017, 2016, and 2015
|
||||||||||||||||||||||
|
Year 2017 to 2016 Change due to
|
|
Year 2016 to 2015 Change due to
|
||||||||||||||||||||
|
Volume
|
|
Rate/Yield
|
|
Net
|
|
Volume
|
|
Rate/Yield
|
|
Net
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase (decrease) in interest income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans (tax equivalent)
|
$
|
1,867
|
|
|
$
|
2,375
|
|
|
$
|
4,242
|
|
|
$
|
9,102
|
|
|
$
|
2,915
|
|
|
$
|
12,017
|
|
Loan pool participations
|
—
|
|
|
—
|
|
|
—
|
|
|
(399
|
)
|
|
(399
|
)
|
|
798
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable investments
|
1,585
|
|
|
691
|
|
|
2,276
|
|
|
(75
|
)
|
|
638
|
|
|
563
|
|
||||||
Tax exempt investments (tax equivalent)
|
1,103
|
|
|
(293
|
)
|
|
810
|
|
|
566
|
|
|
(291
|
)
|
|
275
|
|
||||||
Total investment securities
|
2,688
|
|
|
398
|
|
|
3,086
|
|
|
491
|
|
|
347
|
|
|
838
|
|
||||||
Federal funds sold and interest-bearing balances
|
(167
|
)
|
|
143
|
|
|
(24
|
)
|
|
28
|
|
|
67
|
|
|
95
|
|
||||||
Change in interest income
|
4,388
|
|
|
2,916
|
|
|
7,304
|
|
|
9,222
|
|
|
2,930
|
|
|
12,152
|
|
||||||
Increase (decrease) in interest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings and interest-bearing demand deposits
|
205
|
|
|
240
|
|
|
445
|
|
|
382
|
|
|
49
|
|
|
431
|
|
||||||
Certificates of deposit
|
235
|
|
|
1,430
|
|
|
1,665
|
|
|
11
|
|
|
1,099
|
|
|
1,110
|
|
||||||
Total deposits
|
440
|
|
|
1,670
|
|
|
2,110
|
|
|
393
|
|
|
1,148
|
|
|
1,541
|
|
||||||
Federal funds purchased and repurchase agreements
|
41
|
|
|
166
|
|
|
207
|
|
|
15
|
|
|
(20
|
)
|
|
(5
|
)
|
||||||
Federal Home Loan Bank borrowings
|
86
|
|
|
(75
|
)
|
|
11
|
|
|
317
|
|
|
59
|
|
|
376
|
|
||||||
Other long-term debt
|
(157
|
)
|
|
252
|
|
|
95
|
|
|
148
|
|
|
14
|
|
|
162
|
|
||||||
Total borrowed funds
|
(30
|
)
|
|
343
|
|
|
313
|
|
|
480
|
|
|
53
|
|
|
533
|
|
||||||
Change in interest expense
|
410
|
|
|
2,013
|
|
|
2,423
|
|
|
873
|
|
|
1,201
|
|
|
2,074
|
|
||||||
Increase in net interest income
|
$
|
3,978
|
|
|
$
|
903
|
|
|
$
|
4,881
|
|
|
$
|
8,349
|
|
|
$
|
1,729
|
|
|
$
|
10,078
|
|
Percentage increase in net interest income over prior period
|
|
|
|
|
4.7
|
%
|
|
|
|
|
|
10.7
|
%
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Trust, investment, and insurance fees
|
$
|
6,189
|
|
|
$
|
5,574
|
|
|
$
|
615
|
|
|
11.0
|
%
|
|
$
|
5,574
|
|
|
$
|
6,005
|
|
|
$
|
(431
|
)
|
|
(7.2
|
)%
|
Service charges and fees on deposit accounts
|
5,126
|
|
|
5,219
|
|
|
(93
|
)
|
|
(1.8
|
)
|
|
5,219
|
|
|
4,401
|
|
|
818
|
|
|
18.6
|
|
||||||
Loan origination and servicing fees
|
3,421
|
|
|
3,771
|
|
|
(350
|
)
|
|
(9.3
|
)
|
|
3,771
|
|
|
2,756
|
|
|
1,015
|
|
|
36.8
|
|
||||||
Other service charges and fees
|
5,992
|
|
|
5,951
|
|
|
41
|
|
|
0.7
|
|
|
5,951
|
|
|
5,215
|
|
|
736
|
|
|
14.1
|
|
||||||
Bank-owned life insurance income
|
1,388
|
|
|
1,366
|
|
|
22
|
|
|
1.6
|
|
|
1,366
|
|
|
1,307
|
|
|
59
|
|
|
4.5
|
|
||||||
Gain on sale or call of available for sale securities
|
188
|
|
|
464
|
|
|
(276
|
)
|
|
(59.5
|
)
|
|
464
|
|
|
1,011
|
|
|
(547
|
)
|
|
(54.1
|
)
|
||||||
Gain on sale or call of held to maturity securities
|
53
|
|
|
—
|
|
|
53
|
|
|
NM
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
||||||
Gain (loss) on sale of premises and equipment
|
2
|
|
|
(44
|
)
|
|
46
|
|
|
(104.5
|
)
|
|
(44
|
)
|
|
(29
|
)
|
|
(15
|
)
|
|
51.7
|
|
||||||
Other gain
|
11
|
|
|
1,133
|
|
|
(1,122
|
)
|
|
(99.0
|
)
|
|
1,133
|
|
|
527
|
|
|
606
|
|
|
115.0
|
|
||||||
Total noninterest income
|
$
|
22,370
|
|
|
$
|
23,434
|
|
|
$
|
(1,064
|
)
|
|
(4.5
|
)%
|
|
$
|
23,434
|
|
|
$
|
21,193
|
|
|
$
|
2,241
|
|
|
10.6
|
%
|
Noninterest income as a % of total revenue*
|
17.5
|
%
|
|
18.0
|
%
|
|
|
|
|
|
18.0
|
%
|
|
17.9
|
%
|
|
|
|
|
||||||||||
NM - Percentage change not considered meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
* Total revenue is net interest income plus noninterest income excluding gain/loss on sales of securities, premises and equipment, and other gains or losses, and impairment of investment securities.
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
2016
|
|
2015
|
|
$ Change
|
|
% Change
|
||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Salaries and employee benefits
|
$
|
47,864
|
|
|
$
|
49,621
|
|
|
$
|
(1,757
|
)
|
|
(3.5
|
)%
|
|
$
|
49,621
|
|
|
$
|
41,865
|
|
|
$
|
7,756
|
|
|
18.5
|
%
|
Net occupancy and equipment expense
|
12,305
|
|
|
13,066
|
|
|
(761
|
)
|
|
(5.8
|
)
|
|
13,066
|
|
|
9,975
|
|
|
3,091
|
|
|
31.0
|
|
||||||
Professional fees
|
3,962
|
|
|
4,216
|
|
|
(254
|
)
|
|
(6.0
|
)
|
|
4,216
|
|
|
4,929
|
|
|
(713
|
)
|
|
(14.5
|
)
|
||||||
Data processing expense
|
2,674
|
|
|
4,940
|
|
|
(2,266
|
)
|
|
(45.9
|
)
|
|
4,940
|
|
|
2,659
|
|
|
2,281
|
|
|
85.8
|
|
||||||
FDIC insurance expense
|
1,265
|
|
|
1,563
|
|
|
(298
|
)
|
|
(19.1
|
)
|
|
1,563
|
|
|
1,397
|
|
|
166
|
|
|
11.9
|
|
||||||
Amortization of intangible assets
|
3,125
|
|
|
3,970
|
|
|
(845
|
)
|
|
(21.3
|
)
|
|
3,970
|
|
|
3,271
|
|
|
699
|
|
|
21.4
|
|
||||||
Other operating expense
|
8,941
|
|
|
10,430
|
|
|
(1,489
|
)
|
|
(14.3
|
)
|
|
10,430
|
|
|
9,080
|
|
|
1,350
|
|
|
14.9
|
|
||||||
Total noninterest expense
|
$
|
80,136
|
|
|
$
|
87,806
|
|
|
$
|
(7,670
|
)
|
|
(8.7
|
)%
|
|
$
|
87,806
|
|
|
$
|
73,176
|
|
|
$
|
14,630
|
|
|
20.0
|
%
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|||||||
Assets
|
|
|
|
|
|
|
|
|||||||
Investment securities available for sale
|
$
|
447,660
|
|
|
$
|
477,518
|
|
|
$
|
(29,858
|
)
|
|
(6.3
|
)%
|
Investment securities held to maturity
|
195,619
|
|
|
168,392
|
|
|
27,227
|
|
|
16.2
|
|
|||
Net loans
|
2,258,636
|
|
|
2,143,293
|
|
|
115,343
|
|
|
5.4
|
|
|||
Premises and equipment
|
75,969
|
|
|
75,043
|
|
|
926
|
|
|
1.2
|
|
|||
Goodwill
|
64,654
|
|
|
64,654
|
|
|
—
|
|
|
NM
|
|
|||
Other intangible assets, net
|
12,046
|
|
|
15,171
|
|
|
(3,125
|
)
|
|
(20.6
|
)
|
|||
Total Assets
|
$
|
3,212,271
|
|
|
$
|
3,079,575
|
|
|
$
|
132,696
|
|
|
4.3
|
%
|
Liabilities
|
|
|
|
|
|
|
|
|||||||
Deposits:
|
|
|
|
|
|
|
|
|||||||
Noninterest bearing
|
$
|
461,969
|
|
|
$
|
494,586
|
|
|
$
|
(32,617
|
)
|
|
(6.6
|
)%
|
Interest bearing
|
2,143,350
|
|
|
1,985,862
|
|
|
157,488
|
|
|
7.9
|
|
|||
Total deposits
|
2,605,319
|
|
|
2,480,448
|
|
|
124,871
|
|
|
5.0
|
|
|||
Federal Home Loan Bank borrowings
|
115,000
|
|
|
115,000
|
|
|
—
|
|
|
—
|
|
|||
Junior subordinated notes issued to capital trusts
|
23,793
|
|
|
23,692
|
|
|
101
|
|
|
0.4
|
|
|||
Long-term debt
|
12,500
|
|
|
17,500
|
|
|
(5,000
|
)
|
|
(28.6
|
)
|
|||
Total liabilities
|
$
|
2,871,967
|
|
|
$
|
2,774,119
|
|
|
$
|
97,848
|
|
|
3.5
|
%
|
Shareholders’ equity
|
$
|
340,304
|
|
|
$
|
305,456
|
|
|
$
|
34,848
|
|
|
11.4
|
%
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(dollars in thousands)
|
|
|
|
|
|
||||||
Securities available for sale
|
|
|
|
|
|
||||||
U.S. Treasury
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,910
|
|
U.S. Government agency securities and corporations
|
15,626
|
|
|
5,905
|
|
|
26,653
|
|
|||
States and political subdivisions
|
141,839
|
|
|
165,272
|
|
|
183,384
|
|
|||
Mortgage-backed securities
|
48,497
|
|
|
61,354
|
|
|
57,062
|
|
|||
Collateralized mortgage obligations
|
168,196
|
|
|
171,267
|
|
|
106,404
|
|
|||
Corporate debt securities
|
71,166
|
|
|
72,453
|
|
|
45,566
|
|
|||
Other equity securities
|
2,336
|
|
|
1,267
|
|
|
1,262
|
|
|||
Fair value of securities available for sale
|
$
|
447,660
|
|
|
$
|
477,518
|
|
|
$
|
427,241
|
|
Amortized cost
|
$
|
451,190
|
|
|
$
|
479,390
|
|
|
$
|
421,740
|
|
Fair value as a percentage of amortized cost
|
99.22
|
%
|
|
99.61
|
%
|
|
101.30
|
%
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(dollars in thousands)
|
|
|
|
|
|
||||||
Securities held to maturity
|
|
|
|
|
|
||||||
U.S. Government agency securities and corporations
|
$
|
10,049
|
|
|
$
|
—
|
|
|
$
|
—
|
|
States and political subdivisions
|
126,413
|
|
|
107,941
|
|
|
66,454
|
|
|||
Mortgage-backed securities
|
1,906
|
|
|
2,398
|
|
|
3,920
|
|
|||
Collateralized mortgage obligations
|
22,115
|
|
|
26,036
|
|
|
30,505
|
|
|||
Corporate debt securities
|
35,136
|
|
|
32,017
|
|
|
17,544
|
|
|||
Amortized cost
|
$
|
195,619
|
|
|
$
|
168,392
|
|
|
$
|
118,423
|
|
Fair value of securities held to maturity
|
$
|
194,343
|
|
|
$
|
164,792
|
|
|
$
|
118,234
|
|
Fair value as a percentage of amortized cost
|
99.35
|
%
|
|
97.86
|
%
|
|
99.84
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||||||||
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
$
|
105,512
|
|
|
4.6
|
%
|
|
$
|
113,343
|
|
|
5.2
|
%
|
|
$
|
121,714
|
|
|
5.7
|
%
|
|
$
|
104,809
|
|
|
9.3
|
%
|
|
$
|
97,167
|
|
|
8.9
|
%
|
Commercial and industrial
|
503,624
|
|
|
22.0
|
|
|
459,481
|
|
|
21.2
|
|
|
467,412
|
|
|
21.7
|
|
|
303,108
|
|
|
26.7
|
|
|
262,368
|
|
|
24.1
|
|
|||||
Credit cards
(2)
|
—
|
|
|
—
|
|
|
1,489
|
|
|
0.1
|
|
|
1,377
|
|
|
0.1
|
|
|
1,246
|
|
|
0.1
|
|
|
1,028
|
|
|
0.1
|
|
|||||
Overdrafts
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,483
|
|
|
0.1
|
|
|
744
|
|
|
0.1
|
|
|
537
|
|
|
0.1
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction & development
|
165,276
|
|
|
7.3
|
|
|
126,685
|
|
|
5.9
|
|
|
120,753
|
|
|
5.6
|
|
|
59,383
|
|
|
5.2
|
|
|
72,589
|
|
|
6.6
|
|
|||||
Farmland
|
87,868
|
|
|
3.8
|
|
|
94,979
|
|
|
4.4
|
|
|
89,084
|
|
|
4.1
|
|
|
83,700
|
|
|
7.4
|
|
|
85,475
|
|
|
7.9
|
|
|||||
Multifamily
|
134,506
|
|
|
5.9
|
|
|
136,003
|
|
|
6.3
|
|
|
121,763
|
|
|
5.7
|
|
|
54,886
|
|
|
4.8
|
|
|
55,443
|
|
|
5.1
|
|
|||||
Commercial real estate-other
|
784,321
|
|
|
34.3
|
|
|
706,576
|
|
|
32.6
|
|
|
660,341
|
|
|
30.7
|
|
|
228,552
|
|
|
20.2
|
|
|
220,917
|
|
|
20.3
|
|
|||||
Total commercial real estate
|
1,171,971
|
|
|
51.3
|
|
|
1,064,243
|
|
|
49.2
|
|
|
991,941
|
|
|
46.1
|
|
|
426,521
|
|
|
37.6
|
|
|
434,424
|
|
|
39.9
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
One- to four- family first liens
|
352,226
|
|
|
15.4
|
|
|
372,233
|
|
|
17.2
|
|
|
428,233
|
|
|
19.9
|
|
|
219,314
|
|
|
19.4
|
|
|
220,668
|
|
|
20.3
|
|
|||||
One- to four- family junior liens
|
117,204
|
|
|
5.1
|
|
|
117,763
|
|
|
5.4
|
|
|
102,273
|
|
|
4.7
|
|
|
53,297
|
|
|
4.7
|
|
|
53,458
|
|
|
4.9
|
|
|||||
Total residential real estate
|
469,430
|
|
|
20.5
|
|
|
489,996
|
|
|
22.6
|
|
|
530,506
|
|
|
24.6
|
|
|
272,611
|
|
|
24.1
|
|
|
274,126
|
|
|
25.2
|
|
|||||
Consumer
|
36,158
|
|
|
1.6
|
|
|
36,591
|
|
|
1.7
|
|
|
37,509
|
|
|
1.7
|
|
|
23,480
|
|
|
2.1
|
|
|
18,762
|
|
|
1.7
|
|
|||||
Total loans
|
$
|
2,286,695
|
|
|
100.0
|
%
|
|
$
|
2,165,143
|
|
|
100.0
|
%
|
|
$
|
2,151,942
|
|
|
100.0
|
%
|
|
$
|
1,132,519
|
|
|
100.0
|
%
|
|
$
|
1,088,412
|
|
|
100.0
|
%
|
Total assets
|
$
|
3,212,271
|
|
|
|
|
$
|
3,079,575
|
|
|
|
|
$
|
2,979,975
|
|
|
|
|
$
|
1,800,302
|
|
|
|
|
$
|
1,755,218
|
|
|
|
|||||
Loans to total assets
|
|
|
71.2
|
%
|
|
|
|
70.3
|
%
|
|
|
|
72.2
|
%
|
|
|
|
62.9
|
%
|
|
|
|
62.0
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) - Beginning in 2016, the Company no longer considered overdrafts a separate class of loans, and these balances are now included in commercial and consumer loans, as appropriate.
|
||||||||||||||||||||||||||||||||||
(2) - Beginning in 2017, the Company no longer considered credit cards a separate class of loans, and these balances are now included in commercial and industrial loans.
|
|
|
|
|
|
|
|
|
|
Total for Loans
|
|
Total for Loans
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Due Within
|
|
Due After
|
||||||||||||||||||||
|
|
|
Due In
|
|
|
|
|
|
One Year Having
|
|
One Year Having
|
||||||||||||||||||||
|
Due Within
|
|
One to
|
|
Due After
|
|
|
|
Fixed
|
|
Variable
|
|
Fixed
|
|
Variable
|
||||||||||||||||
|
One Year
|
|
Five Years
|
|
Five Years
|
|
Total
|
|
Rates
|
|
Rates
|
|
Rates
|
|
Rates
|
||||||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agricultural
|
$
|
72,128
|
|
|
$
|
25,388
|
|
|
$
|
7,996
|
|
|
$
|
105,512
|
|
|
$
|
3,599
|
|
|
$
|
68,529
|
|
|
$
|
21,391
|
|
|
$
|
11,993
|
|
Commercial and industrial
|
149,232
|
|
|
200,370
|
|
|
154,022
|
|
|
503,624
|
|
|
28,089
|
|
|
121,143
|
|
|
185,149
|
|
|
169,243
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction & development
|
61,003
|
|
|
80,916
|
|
|
23,357
|
|
|
165,276
|
|
|
27,507
|
|
|
33,496
|
|
|
52,185
|
|
|
52,088
|
|
||||||||
Farmland
|
6,105
|
|
|
43,716
|
|
|
38,047
|
|
|
87,868
|
|
|
4,652
|
|
|
1,453
|
|
|
48,507
|
|
|
33,256
|
|
||||||||
Multifamily
|
8,504
|
|
|
58,749
|
|
|
67,253
|
|
|
134,506
|
|
|
3,312
|
|
|
5,192
|
|
|
79,561
|
|
|
46,441
|
|
||||||||
Commercial real estate-other
|
61,018
|
|
|
416,051
|
|
|
307,252
|
|
|
784,321
|
|
|
48,132
|
|
|
12,886
|
|
|
359,776
|
|
|
363,527
|
|
||||||||
Total commercial real estate
|
136,630
|
|
|
599,432
|
|
|
435,909
|
|
|
1,171,971
|
|
|
83,603
|
|
|
53,027
|
|
|
540,029
|
|
|
495,312
|
|
||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
One- to four- family first liens
|
26,181
|
|
|
98,294
|
|
|
227,751
|
|
|
352,226
|
|
|
17,470
|
|
|
8,711
|
|
|
160,134
|
|
|
165,911
|
|
||||||||
One- to four- family junior liens
|
9,670
|
|
|
35,938
|
|
|
71,596
|
|
|
117,204
|
|
|
3,070
|
|
|
6,600
|
|
|
40,972
|
|
|
66,562
|
|
||||||||
Total residential real estate
|
35,851
|
|
|
134,232
|
|
|
299,347
|
|
|
469,430
|
|
|
20,540
|
|
|
15,311
|
|
|
201,106
|
|
|
232,473
|
|
||||||||
Consumer
|
6,418
|
|
|
28,272
|
|
|
1,468
|
|
|
36,158
|
|
|
5,362
|
|
|
1,056
|
|
|
29,410
|
|
|
330
|
|
||||||||
Total loans
|
$
|
400,259
|
|
|
$
|
987,694
|
|
|
$
|
898,742
|
|
|
$
|
2,286,695
|
|
|
$
|
141,193
|
|
|
$
|
259,066
|
|
|
$
|
977,085
|
|
|
$
|
909,351
|
|
|
December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
90 days or more past due and still accruing interest
|
$
|
207
|
|
|
$
|
485
|
|
|
$
|
284
|
|
|
$
|
848
|
|
|
$
|
1,385
|
|
Troubled debt restructure
|
8,870
|
|
|
7,312
|
|
|
7,232
|
|
|
8,918
|
|
|
9,151
|
|
|||||
Nonaccrual
|
14,784
|
|
|
20,668
|
|
|
4,012
|
|
|
3,255
|
|
|
3,240
|
|
|||||
Total nonperforming loans
|
23,861
|
|
|
28,465
|
|
|
11,528
|
|
|
13,021
|
|
|
13,776
|
|
|||||
Other real estate owned
|
2,010
|
|
|
2,097
|
|
|
8,834
|
|
|
1,916
|
|
|
1,770
|
|
|||||
Total nonperforming loans and nonperforming other assets
|
$
|
25,871
|
|
|
$
|
30,562
|
|
|
$
|
20,362
|
|
|
$
|
14,937
|
|
|
$
|
15,546
|
|
Nonperforming loans to loans, before allowance for loan losses
|
1.04
|
%
|
|
1.31
|
%
|
|
0.54
|
%
|
|
1.15
|
%
|
|
1.27
|
%
|
|||||
Nonperforming loans and nonperforming other assets to loans, before allowance for loan losses
|
1.13
|
%
|
|
1.41
|
%
|
|
0.95
|
%
|
|
1.32
|
%
|
|
1.43
|
%
|
|
90 Days or More Past Due and Still Accruing Interest
|
|
Troubled Debt Restructure
|
|
Nonaccrual
|
|
Total
|
||||||||
(in thousands)
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
$
|
—
|
|
|
$
|
2,637
|
|
|
$
|
168
|
|
|
$
|
2,805
|
|
Commercial and industrial
|
—
|
|
|
1,450
|
|
|
7,124
|
|
|
8,574
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction & development
|
—
|
|
|
—
|
|
|
188
|
|
|
188
|
|
||||
Farmland
|
—
|
|
|
—
|
|
|
386
|
|
|
386
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate-other
|
—
|
|
|
4,028
|
|
|
5,279
|
|
|
9,307
|
|
||||
Total commercial real estate
|
—
|
|
|
4,028
|
|
|
5,853
|
|
|
9,881
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
One- to four- family first liens
|
205
|
|
|
755
|
|
|
1,228
|
|
|
2,188
|
|
||||
One- to four- family junior liens
|
2
|
|
|
—
|
|
|
346
|
|
|
348
|
|
||||
Total residential real estate
|
207
|
|
|
755
|
|
|
1,574
|
|
|
2,536
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
65
|
|
|
65
|
|
||||
Total
|
$
|
207
|
|
|
$
|
8,870
|
|
|
$
|
14,784
|
|
|
$
|
23,861
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
$
|
—
|
|
|
$
|
2,770
|
|
|
$
|
2,690
|
|
|
$
|
5,460
|
|
Commercial and industrial
|
—
|
|
|
595
|
|
|
8,358
|
|
|
8,953
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction & 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.
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Restructured Loans (TDRs):
|
|
|
|
||||
In compliance with modified terms
|
$
|
8,870
|
|
|
$
|
7,312
|
|
Not in compliance with modified terms - on nonaccrual status or over 90 days past due and still accruing interest
|
4,778
|
|
|
1,003
|
|
||
Total restructured loans
|
$
|
13,648
|
|
|
$
|
8,315
|
|
|
Year ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount of loans outstanding at end of period (net of unearned interest)
(1)
|
$
|
2,286,695
|
|
|
$
|
2,165,143
|
|
|
$
|
2,151,942
|
|
|
$
|
1,132,519
|
|
|
$
|
1,088,412
|
|
Average amount of loans outstanding for the period (net of unearned interest)
|
$
|
2,201,364
|
|
|
$
|
2,161,376
|
|
|
$
|
1,962,846
|
|
|
$
|
1,092,280
|
|
|
$
|
1,059,356
|
|
Allowance for loan losses at beginning of period
(1)
|
$
|
21,850
|
|
|
$
|
19,427
|
|
|
$
|
16,363
|
|
|
$
|
16,179
|
|
|
$
|
15,957
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
1,202
|
|
|
$
|
1,204
|
|
|
$
|
245
|
|
|
$
|
26
|
|
|
$
|
39
|
|
Commercial and industrial
|
2,338
|
|
|
3,024
|
|
|
639
|
|
|
673
|
|
|
695
|
|
|||||
Credit cards
|
—
|
|
|
42
|
|
|
53
|
|
|
12
|
|
|
95
|
|
|||||
Overdrafts
|
—
|
|
|
—
|
|
|
44
|
|
|
37
|
|
|
64
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction & development
|
257
|
|
|
734
|
|
|
193
|
|
|
86
|
|
|
342
|
|
|||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate-other
|
7,674
|
|
|
197
|
|
|
660
|
|
|
79
|
|
|
203
|
|
|||||
Total commercial real estate
|
7,931
|
|
|
931
|
|
|
853
|
|
|
165
|
|
|
545
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
One- to four- family first liens
|
250
|
|
|
462
|
|
|
653
|
|
|
349
|
|
|
170
|
|
|||||
One- to four- family junior liens
|
55
|
|
|
320
|
|
|
87
|
|
|
60
|
|
|
116
|
|
|||||
Total residential real estate
|
305
|
|
|
782
|
|
|
740
|
|
|
409
|
|
|
286
|
|
|||||
Consumer
|
257
|
|
|
98
|
|
|
48
|
|
|
39
|
|
|
83
|
|
|||||
Total charge-offs
|
$
|
12,033
|
|
|
$
|
6,081
|
|
|
$
|
2,622
|
|
|
$
|
1,361
|
|
|
$
|
1,807
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
187
|
|
|
$
|
33
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
36
|
|
Commercial and industrial
|
232
|
|
|
124
|
|
|
372
|
|
|
215
|
|
|
68
|
|
|||||
Credit cards
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|||||
Overdrafts
(3)
|
—
|
|
|
—
|
|
|
11
|
|
|
13
|
|
|
6
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction & development
|
167
|
|
|
54
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|||||
Farmland
|
24
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Commercial real estate-other
|
100
|
|
|
137
|
|
|
3
|
|
|
23
|
|
|
474
|
|
|||||
Total commercial real estate
|
291
|
|
|
192
|
|
|
7
|
|
|
61
|
|
|
479
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
One- to four- family first liens
|
24
|
|
|
82
|
|
|
131
|
|
|
18
|
|
|
24
|
|
|||||
One- to four- family junior liens
|
156
|
|
|
75
|
|
|
12
|
|
|
4
|
|
|
43
|
|
|||||
Total residential real estate
|
180
|
|
|
157
|
|
|
143
|
|
|
22
|
|
|
67
|
|
|||||
Consumer
|
18
|
|
|
15
|
|
|
20
|
|
|
22
|
|
|
21
|
|
|||||
Total recoveries
|
$
|
908
|
|
|
$
|
521
|
|
|
$
|
554
|
|
|
$
|
345
|
|
|
$
|
679
|
|
Net loans charged off
|
$
|
11,125
|
|
|
$
|
5,560
|
|
|
$
|
2,068
|
|
|
$
|
1,016
|
|
|
$
|
1,128
|
|
Provision for loan losses
|
17,334
|
|
|
7,983
|
|
|
5,132
|
|
|
1,200
|
|
|
1,350
|
|
|||||
Allowance for loan losses at end of period
|
$
|
28,059
|
|
|
$
|
21,850
|
|
|
$
|
19,427
|
|
|
$
|
16,363
|
|
|
$
|
16,179
|
|
Net loans charged off to average loans
|
0.51
|
%
|
|
0.26
|
%
|
|
0.11
|
%
|
|
0.09
|
%
|
|
0.11
|
%
|
|||||
Allowance for loan losses to total loans at end of period
|
1.23
|
%
|
|
1.01
|
%
|
|
0.90
|
%
|
|
1.44
|
%
|
|
1.49
|
%
|
|||||
(1) - Loans do not include, and the allowance for loan losses does not include, loan pool participations for the years 2015, 2014 and 2013.
|
|||||||||||||||||||
(2) - Beginning in 2017, the Company no longer considered credit cards a separate class of loans, and these balances are now included in commercial and industrial loans.
|
|||||||||||||||||||
(3) - Beginning in 2016, the Company no longer considered overdrafts a separate class of loans, and these balances are now included in commercial and consumer loans, as appropriate.
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
|
Allowance Amount
|
|
Percent of Loans to Total Loans
|
|
Allowance Amount
|
|
Percent of Loans to Total Loans
|
|
Allowance Amount
|
|
Percent of Loans to Total Loans
|
|
Allowance Amount
|
|
Percent of Loans to Total Loans
|
|
Allowance Amount
|
|
Percent of Loans to Total Loans
|
|||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agricultural
|
$
|
2,790
|
|
|
4.6
|
%
|
|
$
|
2,003
|
|
|
5.2
|
%
|
|
$
|
1,417
|
|
|
5.7
|
%
|
|
$
|
1,506
|
|
|
9.3
|
%
|
|
$
|
1,358
|
|
|
8.9
|
%
|
Commercial and industrial
|
8,518
|
|
|
22.0
|
|
|
6,274
|
|
|
21.3
|
|
|
5,451
|
|
|
21.9
|
|
|
5,780
|
|
|
26.9
|
|
|
4,980
|
|
|
24.3
|
|
|||||
Commercial real estate
|
13,637
|
|
|
51.3
|
|
|
9,860
|
|
|
49.2
|
|
|
8,556
|
|
|
46.1
|
|
|
4,399
|
|
|
37.6
|
|
|
5,294
|
|
|
39.9
|
|
|||||
Residential real estate
|
2,870
|
|
|
20.5
|
|
|
3,458
|
|
|
22.6
|
|
|
3,968
|
|
|
24.6
|
|
|
3,167
|
|
|
24.1
|
|
|
3,185
|
|
|
25.2
|
|
|||||
Consumer
|
244
|
|
|
1.6
|
|
|
255
|
|
|
1.7
|
|
|
409
|
|
|
1.7
|
|
|
323
|
|
|
2.1
|
|
|
275
|
|
|
1.7
|
|
|||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(374
|
)
|
|
—
|
|
|
1,188
|
|
|
—
|
|
|
1,087
|
|
|
—
|
|
|||||
Total
|
$
|
28,059
|
|
|
100.0
|
%
|
|
$
|
21,850
|
|
|
100.0
|
%
|
|
$
|
19,427
|
|
|
100.0
|
%
|
|
$
|
16,363
|
|
|
100.0
|
%
|
|
$
|
16,179
|
|
|
100.0
|
%
|
|
At December 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
|
$
|
1,964,047
|
|
|
$
|
—
|
|
|
$
|
1,964,047
|
|
|
$
|
27,209
|
|
|
1.39
|
%
|
|
1.39
|
%
|
Total Acquired Loans
|
331,122
|
|
|
8,474
|
|
|
322,648
|
|
|
850
|
|
|
0.26
|
|
|
2.82
|
|
||||
Total Loans
|
$
|
2,295,169
|
|
|
$
|
8,474
|
|
|
$
|
2,286,695
|
|
|
$
|
28,059
|
|
|
1.23
|
%
|
|
1.59
|
%
|
|
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
|
%
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||||||||||||||
|
Average
|
|
%
|
|
Average
|
|
Average
|
|
%
|
|
Average
|
|
Average
|
|
%
|
|
Average
|
|
Average
|
|
%
|
|
Average
|
|
Average
|
|
%
|
|
Average
|
||||||||||||||||||||
|
Balance
|
|
Total
|
|
Rate
|
|
Balance
|
|
Total
|
|
Rate
|
|
Balance
|
|
Total
|
|
Rate
|
|
Balance
|
|
Total
|
|
Rate
|
|
Balance
|
|
Total
|
|
Rate
|
||||||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-interest-bearing demand deposits
|
$
|
471,170
|
|
|
18.8
|
%
|
|
NA
|
|
|
$
|
512,383
|
|
|
21.0
|
%
|
|
NA
|
|
|
$
|
488,312
|
|
|
21.4
|
%
|
|
NA
|
|
|
$
|
208,071
|
|
|
15.0
|
%
|
|
NA
|
|
|
$
|
204,185
|
|
|
15.0
|
%
|
|
NA
|
|
Interest-bearing demand (NOW and money market)
|
1,152,350
|
|
|
46.0
|
|
|
0.32
|
%
|
|
1,087,757
|
|
|
44.5
|
|
|
0.29
|
%
|
|
859,945
|
|
|
37.8
|
|
|
0.31
|
%
|
|
603,812
|
|
|
43.7
|
|
|
0.36
|
%
|
|
581,723
|
|
|
42.8
|
|
|
0.41
|
%
|
|||||
Savings
|
205,204
|
|
|
8.2
|
|
|
0.10
|
|
|
195,237
|
|
|
8.0
|
|
|
0.14
|
|
|
279,230
|
|
|
12.3
|
|
|
0.13
|
|
|
102,850
|
|
|
7.4
|
|
|
0.14
|
|
|
96,034
|
|
|
7.1
|
|
|
0.15
|
|
|||||
Time deposits
|
674,757
|
|
|
27.0
|
|
|
1.13
|
|
|
649,986
|
|
|
26.5
|
|
|
0.92
|
|
|
648,516
|
|
|
28.5
|
|
|
0.75
|
|
|
469,351
|
|
|
33.9
|
|
|
1.00
|
|
|
477,537
|
|
|
35.1
|
|
|
1.35
|
|
|||||
Total deposits
|
$
|
2,503,481
|
|
|
100.0
|
%
|
|
0.46
|
%
|
|
$
|
2,445,363
|
|
|
100.0
|
%
|
|
0.38
|
%
|
|
$
|
2,276,003
|
|
|
100.0
|
%
|
|
0.35
|
%
|
|
$
|
1,384,084
|
|
|
100.0
|
%
|
|
0.51
|
%
|
|
$
|
1,359,479
|
|
|
100.0
|
%
|
|
0.66
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Average
|
|||||||||
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds purchased and repurchase agreements
|
$
|
97,229
|
|
|
0.47
|
%
|
|
$
|
117,871
|
|
|
0.40
|
%
|
|
$
|
68,963
|
|
|
0.30
|
%
|
FHLB borrowings
|
115,000
|
|
|
1.67
|
|
|
115,000
|
|
|
1.56
|
|
|
87,000
|
|
|
1.64
|
|
|||
Junior subordinated notes issued to capital trusts
|
23,793
|
|
|
4.00
|
|
|
23,692
|
|
|
3.16
|
|
|
23,587
|
|
|
2.71
|
|
|||
Long-term debt
|
12,500
|
|
|
2.85
|
|
|
17,500
|
|
|
2.52
|
|
|
22,500
|
|
|
2.17
|
|
|||
Total
|
$
|
248,522
|
|
|
1.48
|
%
|
|
$
|
274,063
|
|
|
1.26
|
%
|
|
$
|
202,050
|
|
|
1.38
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(in thousands)
|
|
|
|
|
|
||||||
Federal funds purchased and repurchase agreements
|
$
|
124,952
|
|
|
$
|
117,871
|
|
|
$
|
102,009
|
|
FHLB borrowings
|
145,000
|
|
|
115,000
|
|
|
93,000
|
|
|||
Junior subordinated notes issued to capital trusts
|
23,793
|
|
|
23,692
|
|
|
23,523
|
|
|||
Subordinated note
|
—
|
|
|
—
|
|
|
12,099
|
|
|||
Long-term debt
|
17,500
|
|
|
22,500
|
|
|
25,000
|
|
|||
Total
|
$
|
311,245
|
|
|
$
|
279,063
|
|
|
$
|
255,631
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|||||||||
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds purchased and repurchase agreements
|
$
|
87,763
|
|
|
0.47
|
%
|
|
$
|
74,566
|
|
|
0.27
|
%
|
|
$
|
69,498
|
|
|
0.30
|
%
|
FHLB borrowings
|
110,000
|
|
|
1.67
|
|
|
104,954
|
|
|
1.74
|
|
|
86,614
|
|
|
1.68
|
|
|||
Junior subordinated notes issued to capital trusts
|
23,743
|
|
|
4.00
|
|
|
23,641
|
|
|
3.49
|
|
|
20,868
|
|
|
2.84
|
|
|||
Subordinated note
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,805
|
|
|
8.98
|
|
|||
Long-term debt
|
15,596
|
|
|
2.75
|
|
|
20,604
|
|
|
2.27
|
|
|
16,527
|
|
|
2.26
|
|
|||
Total
|
$
|
237,102
|
|
|
1.53
|
%
|
|
$
|
223,765
|
|
|
1.48
|
%
|
|
$
|
195,312
|
|
|
1.43
|
%
|
|
|
|
Less than
|
|
1 to 3
|
|
3 to 5
|
|
More than
|
||||||||||
|
Total
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
||||||||||
Contractual obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Time certificates of deposit
|
$
|
701,808
|
|
|
$
|
391,444
|
|
|
$
|
238,267
|
|
|
$
|
72,094
|
|
|
$
|
3
|
|
Federal funds purchased and repurchase agreements
|
97,229
|
|
|
97,229
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
FHLB borrowings
|
115,000
|
|
|
19,000
|
|
|
74,000
|
|
|
22,000
|
|
|
—
|
|
|||||
Junior subordinated notes issued to capital trusts
|
23,793
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,793
|
|
|||||
Long-term debt
|
12,500
|
|
|
5,000
|
|
|
5,000
|
|
|
2,500
|
|
|
—
|
|
|||||
Noncancelable operating leases and capital lease obligations
|
1,294
|
|
|
103
|
|
|
249
|
|
|
502
|
|
|
440
|
|
|||||
Total
|
$
|
951,624
|
|
|
$
|
512,776
|
|
|
$
|
317,516
|
|
|
$
|
97,096
|
|
|
$
|
24,236
|
|
|
|
|
Less than
|
|
1 to 3
|
|
3 to 5
|
|
More than
|
||||||||||
|
Total
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
||||||||||
Contractual obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Commitments to extend credit
|
$
|
563,305
|
|
|
$
|
219,257
|
|
|
$
|
344,048
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commitments to sell loans
|
856
|
|
|
856
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
10,260
|
|
|
7,644
|
|
|
2,616
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
574,421
|
|
|
$
|
227,757
|
|
|
$
|
346,664
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(dollars in thousands)
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
44,818
|
|
|
$
|
41,464
|
|
|
$
|
44,199
|
|
Interest-bearing deposits
|
5,474
|
|
|
1,764
|
|
|
2,731
|
|
|||
Federal funds sold
|
680
|
|
|
—
|
|
|
167
|
|
|||
Total
|
$
|
50,972
|
|
|
$
|
43,228
|
|
|
$
|
47,097
|
|
Percentage of average total assets
|
1.6
|
%
|
|
1.4
|
%
|
|
1.7
|
%
|
I
TEM
7A.
|
Q
UANTITATIVE AND
Q
UALITATIVE
D
ISCLOSURES
A
BOUT
M
ARKET
R
ISK
.
|
•
|
Federal funds lines;
|
•
|
FHLB borrowings;
|
•
|
Brokered deposits;
|
•
|
Brokered repurchase agreements; and
|
•
|
Federal Reserve Bank Discount Window.
|
|
Immediate Change in Rates
|
||||||||||
|
-100
|
|
+100
|
|
+200
|
||||||
(dollars in thousands)
|
|
|
|
|
|
||||||
December 31, 2017
|
|
|
|
|
|
||||||
Dollar change
|
$
|
(729
|
)
|
|
$
|
55
|
|
|
$
|
(361
|
)
|
Percent change
|
(0.7
|
)%
|
|
0.1
|
%
|
|
(0.4
|
)%
|
|||
|
|
|
|
|
|
||||||
December 31, 2016
|
|
|
|
|
|
||||||
Dollar change
|
$
|
(886
|
)
|
|
$
|
157
|
|
|
$
|
453
|
|
Percent change
|
(0.9
|
)%
|
|
0.2
|
%
|
|
0.5
|
%
|
I
TEM
8.
|
F
INANCIAL
S
TATEMENTS AND
S
UPPLEMENTARY
D
ATA
.
|
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
44,818
|
|
|
$
|
41,464
|
|
Interest-bearing deposits in banks
|
5,474
|
|
|
1,764
|
|
||
Federal funds sold
|
680
|
|
|
—
|
|
||
Cash and cash equivalents
|
50,972
|
|
|
43,228
|
|
||
Investment securities:
|
|
|
|
||||
Available for sale
|
447,660
|
|
|
477,518
|
|
||
Held to maturity (fair value of $194,343 as of December 31, 2017 and $164,792 as of December 31, 2016)
|
195,619
|
|
|
168,392
|
|
||
Loans held for sale
|
856
|
|
|
4,241
|
|
||
Loans
|
2,286,695
|
|
|
2,165,143
|
|
||
Allowance for loan losses
|
(28,059
|
)
|
|
(21,850
|
)
|
||
Net loans
|
2,258,636
|
|
|
2,143,293
|
|
||
Premises and equipment, net
|
75,969
|
|
|
75,043
|
|
||
Accrued interest receivable
|
14,732
|
|
|
13,871
|
|
||
Goodwill
|
64,654
|
|
|
64,654
|
|
||
Other intangible assets, net
|
12,046
|
|
|
15,171
|
|
||
Bank-owned life insurance
|
59,831
|
|
|
47,231
|
|
||
Other real estate owned
|
2,010
|
|
|
2,097
|
|
||
Deferred income taxes, net
|
6,525
|
|
|
6,523
|
|
||
Other assets
|
22,761
|
|
|
18,313
|
|
||
Total assets
|
$
|
3,212,271
|
|
|
$
|
3,079,575
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing demand
|
$
|
461,969
|
|
|
$
|
494,586
|
|
Interest-bearing checking
|
1,228,112
|
|
|
1,136,282
|
|
||
Savings
|
213,430
|
|
|
197,698
|
|
||
Certificates of deposit under $100,000
|
324,681
|
|
|
326,832
|
|
||
Certificates of deposit $100,000 and over
|
377,127
|
|
|
325,050
|
|
||
Total deposits
|
2,605,319
|
|
|
2,480,448
|
|
||
Federal funds purchased
|
1,000
|
|
|
35,684
|
|
||
Securities sold under agreements to repurchase
|
96,229
|
|
|
82,187
|
|
||
Federal Home Loan Bank borrowings
|
115,000
|
|
|
115,000
|
|
||
Junior subordinated notes issued to capital trusts
|
23,793
|
|
|
23,692
|
|
||
Long-term debt
|
12,500
|
|
|
17,500
|
|
||
Deferred compensation liability
|
5,199
|
|
|
5,180
|
|
||
Accrued interest payable
|
1,428
|
|
|
1,472
|
|
||
Other liabilities
|
11,499
|
|
|
12,956
|
|
||
Total liabilities
|
2,871,967
|
|
|
2,774,119
|
|
||
Commitments and contingencies (Note 18)
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
||||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at December 31, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Common stock, $1.00 par value; authorized 30,000,000 shares at December 31, 2017 and 15,000,000 shares at December 31, 2016; issued 12,463,481 shares at December 31, 2017 and 11,713,481 shares at December 31, 2016; outstanding 12,219,611 shares at December 31, 2017 and 11,436,360 shares at December 31, 2016
|
12,463
|
|
|
11,713
|
|
||
Additional paid-in capital
|
187,486
|
|
|
163,667
|
|
||
Treasury stock at cost, 243,870 shares as of December 31, 2017 and 277,121 shares as of December 31, 2016
|
(5,121
|
)
|
|
(5,766
|
)
|
||
Retained earnings
|
148,078
|
|
|
136,975
|
|
||
Accumulated other comprehensive loss
|
(2,602
|
)
|
|
(1,133
|
)
|
||
Total shareholders' equity
|
340,304
|
|
|
305,456
|
|
||
Total liabilities and shareholders' equity
|
$
|
3,212,271
|
|
|
$
|
3,079,575
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Interest and fees on loans
|
|
$
|
102,366
|
|
|
$
|
98,162
|
|
|
$
|
86,544
|
|
Interest and discount on loan pool participations
|
|
—
|
|
|
—
|
|
|
798
|
|
|||
Interest on bank deposits
|
|
138
|
|
|
161
|
|
|
70
|
|
|||
Interest on federal funds sold
|
|
4
|
|
|
5
|
|
|
1
|
|
|||
Interest on investment securities:
|
|
|
|
|
|
|
||||||
Taxable securities
|
|
10,573
|
|
|
8,297
|
|
|
7,734
|
|
|||
Tax-exempt securities
|
|
6,239
|
|
|
5,703
|
|
|
5,553
|
|
|||
Total interest income
|
|
119,320
|
|
|
112,328
|
|
|
100,700
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Interest on deposits:
|
|
|
|
|
|
|
||||||
Interest-bearing checking
|
|
3,648
|
|
|
3,151
|
|
|
2,627
|
|
|||
Savings
|
|
215
|
|
|
267
|
|
|
360
|
|
|||
Certificates of deposit under $100,000
|
|
3,579
|
|
|
2,929
|
|
|
2,445
|
|
|||
Certificates of deposit $100,000 and over
|
|
4,047
|
|
|
3,032
|
|
|
2,406
|
|
|||
Total interest expense on deposits
|
|
11,489
|
|
|
9,379
|
|
|
7,838
|
|
|||
Interest on federal funds purchased
|
|
171
|
|
|
47
|
|
|
34
|
|
|||
Interest on securities sold under agreements to repurchase
|
|
241
|
|
|
158
|
|
|
176
|
|
|||
Interest on Federal Home Loan Bank borrowings
|
|
1,838
|
|
|
1,827
|
|
|
1,451
|
|
|||
Interest on other borrowings
|
|
12
|
|
|
19
|
|
|
22
|
|
|||
Interest on junior subordinated notes issued to capital trusts
|
|
949
|
|
|
825
|
|
|
592
|
|
|||
Interest on subordinated notes
|
|
—
|
|
|
—
|
|
|
162
|
|
|||
Interest on long-term debt
|
|
445
|
|
|
467
|
|
|
373
|
|
|||
Total interest expense
|
|
15,145
|
|
|
12,722
|
|
|
10,648
|
|
|||
Net interest income
|
|
104,175
|
|
|
99,606
|
|
|
90,052
|
|
|||
Provision for loan losses
|
|
17,334
|
|
|
7,983
|
|
|
5,132
|
|
|||
Net interest income after provision for loan losses
|
|
86,841
|
|
|
91,623
|
|
|
84,920
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
||||||
Trust, investment, and insurance fees
|
|
6,189
|
|
|
5,574
|
|
|
6,005
|
|
|||
Service charges and fees on deposit accounts
|
|
5,126
|
|
|
5,219
|
|
|
4,401
|
|
|||
Loan origination and servicing fees
|
|
3,421
|
|
|
3,771
|
|
|
2,756
|
|
|||
Other service charges and fees
|
|
5,992
|
|
|
5,951
|
|
|
5,215
|
|
|||
Bank-owned life insurance income
|
|
1,388
|
|
|
1,366
|
|
|
1,307
|
|
|||
Gain on sale or call of available for sale securities
|
|
188
|
|
|
464
|
|
|
1,011
|
|
|||
Gain on sale or call of held to maturity securities
|
|
53
|
|
|
—
|
|
|
—
|
|
|||
Gain (loss) on sale of premises and equipment
|
|
2
|
|
|
(44
|
)
|
|
(29
|
)
|
|||
Other gain
|
|
11
|
|
|
1,133
|
|
|
527
|
|
|||
Total noninterest income
|
|
22,370
|
|
|
23,434
|
|
|
21,193
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
47,864
|
|
|
49,621
|
|
|
41,865
|
|
|||
Net occupancy and equipment expense
|
|
12,305
|
|
|
13,066
|
|
|
9,975
|
|
|||
Professional fees
|
|
3,962
|
|
|
4,216
|
|
|
4,929
|
|
|||
Data processing expense
|
|
2,674
|
|
|
4,940
|
|
|
2,659
|
|
|||
FDIC insurance expense
|
|
1,265
|
|
|
1,563
|
|
|
1,397
|
|
|||
Amortization of intangible assets
|
|
3,125
|
|
|
3,970
|
|
|
3,271
|
|
|||
Other operating expense
|
|
8,941
|
|
|
10,430
|
|
|
9,080
|
|
|||
Total noninterest expense
|
|
80,136
|
|
|
87,806
|
|
|
73,176
|
|
|||
Income before income tax expense
|
|
29,075
|
|
|
27,251
|
|
|
32,937
|
|
|||
Income tax expense
|
|
10,376
|
|
|
6,860
|
|
|
7,819
|
|
|||
Net income
|
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.55
|
|
|
$
|
1.78
|
|
|
$
|
2.42
|
|
Diluted
|
|
$
|
1.55
|
|
|
$
|
1.78
|
|
|
$
|
2.42
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
|
|
|
|
|
|
|
||||||
Other comprehensive loss, available for sale securities:
|
|
|
|
|
|
|
||||||
Unrealized holding losses arising during period
|
|
(1,470
|
)
|
|
(6,906
|
)
|
|
(2,046
|
)
|
|||
Reclassification adjustment for gains included in net income
|
|
(188
|
)
|
|
(464
|
)
|
|
(1,011
|
)
|
|||
Income tax benefit
|
|
654
|
|
|
2,829
|
|
|
1,143
|
|
|||
Other comprehensive loss on available for sale securities
|
|
(1,004
|
)
|
|
(4,541
|
)
|
|
(1,914
|
)
|
|||
Total other comprehensive loss
|
|
$
|
(1,004
|
)
|
|
$
|
(4,541
|
)
|
|
$
|
(1,914
|
)
|
Comprehensive income
|
|
$
|
17,695
|
|
|
$
|
15,850
|
|
|
$
|
23,204
|
|
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Treasury
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||||||
Balance at December 31, 2014
|
|
$
|
—
|
|
|
$
|
8,690
|
|
|
$
|
80,537
|
|
|
$
|
(6,945
|
)
|
|
$
|
105,127
|
|
|
$
|
5,322
|
|
|
$
|
192,731
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,118
|
|
|
—
|
|
|
25,118
|
|
|||||||
Issuance of common stock due to business combination (2,723,083 shares)
|
|
—
|
|
|
2,723
|
|
|
75,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,895
|
|
|||||||
Issuance of common stock - private placement (300,000 shares), net of expenses
|
|
—
|
|
|
300
|
|
|
7,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,900
|
|
|||||||
Dividends paid on common stock ($0.60 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,344
|
)
|
|
—
|
|
|
(6,344
|
)
|
|||||||
Stock options exercised (8,414 shares)
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
169
|
|
|
—
|
|
|
—
|
|
|
129
|
|
|||||||
Release/lapse of restriction on RSUs (23,123 shares)
|
|
—
|
|
|
—
|
|
|
(416
|
)
|
|
445
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
634
|
|
|
—
|
|
|
—
|
|
|
|
|
634
|
|
||||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,914
|
)
|
|
(1,914
|
)
|
|||||||
Balance at December 31, 2015
|
|
$
|
—
|
|
|
$
|
11,713
|
|
|
$
|
163,487
|
|
|
$
|
(6,331
|
)
|
|
$
|
123,901
|
|
|
$
|
3,408
|
|
|
$
|
296,178
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,391
|
|
|
—
|
|
|
20,391
|
|
|||||||
Dividends paid on common stock ($0.64 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,317
|
)
|
|
—
|
|
|
(7,317
|
)
|
|||||||
Stock options exercised (2,900 shares)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
60
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||||
Release/lapse of restriction on RSUs (26,133 shares)
|
|
—
|
|
|
—
|
|
|
(529
|
)
|
|
505
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
731
|
|
|
—
|
|
|
—
|
|
|
|
|
731
|
|
||||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,541
|
)
|
|
(4,541
|
)
|
|||||||
Balance at December 31, 2016
|
|
$
|
—
|
|
|
$
|
11,713
|
|
|
$
|
163,667
|
|
|
$
|
(5,766
|
)
|
|
$
|
136,975
|
|
|
$
|
(1,133
|
)
|
|
$
|
305,456
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,699
|
|
|
—
|
|
|
18,699
|
|
|||||||
Issuance of common stock (750,000 shares), net of expenses of $1,328
|
|
—
|
|
|
750
|
|
|
23,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,360
|
|
|||||||
Dividends paid on common stock ($0.67 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,061
|
)
|
|
—
|
|
|
(8,061
|
)
|
|||||||
Stock options exercised (8,750 shares)
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
183
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|||||||
Release/lapse of restriction on RSUs (27,625 shares)
|
|
—
|
|
|
—
|
|
|
(576
|
)
|
|
462
|
|
|
—
|
|
|
—
|
|
|
(114
|
)
|
|||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
868
|
|
|||||||
Tax Cuts and Jobs Act of 2017, reclassified from AOCI to Retained Earnings, tax effect
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
465
|
|
|
(465
|
)
|
|
—
|
|
|||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,004
|
)
|
|
(1,004
|
)
|
|||||||
Balance at December 31, 2017
|
|
$
|
—
|
|
|
$
|
12,463
|
|
|
$
|
187,486
|
|
|
$
|
(5,121
|
)
|
|
$
|
148,078
|
|
|
$
|
(2,602
|
)
|
|
$
|
340,304
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
17,334
|
|
|
7,983
|
|
|
5,132
|
|
|||
Depreciation of premises and equipment
|
4,133
|
|
|
4,555
|
|
|
3,284
|
|
|||
Amortization of other intangibles
|
3,125
|
|
|
3,970
|
|
|
3,271
|
|
|||
Amortization of premiums and discounts on investment securities, net
|
1,176
|
|
|
1,624
|
|
|
1,833
|
|
|||
(Gain) loss on sale of premises and equipment
|
(2
|
)
|
|
44
|
|
|
29
|
|
|||
Deferred income tax expense (benefit)
|
744
|
|
|
(2,853
|
)
|
|
1,300
|
|
|||
Excess tax benefits from share-based award activity
|
(92
|
)
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
868
|
|
|
731
|
|
|
634
|
|
|||
Net gain on sale or call of available for sale securities
|
(188
|
)
|
|
(464
|
)
|
|
(1,011
|
)
|
|||
Net gain on sale or call of held to maturity securities
|
(53
|
)
|
|
—
|
|
|
—
|
|
|||
Net gain on sale of other real estate owned
|
(28
|
)
|
|
(795
|
)
|
|
(332
|
)
|
|||
Net gain on sale of loans held for sale
|
(1,794
|
)
|
|
(2,475
|
)
|
|
(1,794
|
)
|
|||
Writedown of other real estate owned
|
58
|
|
|
675
|
|
|
—
|
|
|||
Origination of loans held for sale
|
(87,579
|
)
|
|
(132,003
|
)
|
|
(129,129
|
)
|
|||
Proceeds from sales of loans held for sale
|
92,758
|
|
|
133,424
|
|
|
128,537
|
|
|||
Increase in accrued interest receivable
|
(861
|
)
|
|
(135
|
)
|
|
(167
|
)
|
|||
Increase in cash value of bank-owned life insurance
|
(1,388
|
)
|
|
(1,366
|
)
|
|
(1,307
|
)
|
|||
(Increase) decrease in other assets
|
(4,448
|
)
|
|
3,496
|
|
|
3,037
|
|
|||
Increase in deferred compensation liability
|
19
|
|
|
48
|
|
|
83
|
|
|||
Increase (decrease) in accounts payable, accrued expenses, and other liabilities
|
(1,501
|
)
|
|
1,334
|
|
|
(5,810
|
)
|
|||
Net cash provided by operating activities
|
$
|
40,980
|
|
|
$
|
38,184
|
|
|
$
|
32,708
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Proceeds from sales of available for sale securities
|
$
|
22,538
|
|
|
$
|
23,381
|
|
|
$
|
116,829
|
|
Proceeds from maturities and calls of available for sale securities
|
67,743
|
|
|
84,612
|
|
|
70,806
|
|
|||
Purchases of available for sale securities
|
(62,849
|
)
|
|
(166,618
|
)
|
|
(25,424
|
)
|
|||
Proceeds from sales of held to maturity securities
|
1,153
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from maturities and calls of held to maturity securities
|
15,477
|
|
|
12,080
|
|
|
4,669
|
|
|||
Purchases of held to maturity securities
|
(44,024
|
)
|
|
(62,231
|
)
|
|
(29,182
|
)
|
|||
Increase in loans
|
(133,836
|
)
|
|
(20,648
|
)
|
|
(106,278
|
)
|
|||
Decrease in loan pool participations, net
|
—
|
|
|
—
|
|
|
19,332
|
|
|||
Purchases of premises and equipment
|
(4,988
|
)
|
|
(5,634
|
)
|
|
(14,869
|
)
|
|||
Proceeds from sale of other real estate owned
|
1,216
|
|
|
8,744
|
|
|
3,594
|
|
|||
Proceeds from sale of premises and equipment
|
32
|
|
|
2,299
|
|
|
1,132
|
|
|||
Proceeds from bank-owned life insurance death benefit
|
—
|
|
|
430
|
|
|
—
|
|
|||
Purchases of bank-owned life insurance
|
(11,212
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash paid in business acquisition (Note 2)
|
—
|
|
|
—
|
|
|
(35,596
|
)
|
|||
Net cash provided by (used in) investing activities
|
$
|
(148,750
|
)
|
|
$
|
(123,585
|
)
|
|
$
|
5,013
|
|
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net increase in deposits
|
$
|
124,871
|
|
|
$
|
16,927
|
|
|
$
|
5,812
|
|
Net increase (decrease) in federal funds purchased
|
(34,684
|
)
|
|
34,184
|
|
|
(15,908
|
)
|
|||
Net increase (decrease) in securities sold under agreements to repurchase
|
14,042
|
|
|
14,724
|
|
|
(9,482
|
)
|
|||
Proceeds from Federal Home Loan Bank borrowings
|
215,000
|
|
|
50,000
|
|
|
24,000
|
|
|||
Repayment of Federal Home Loan Bank borrowings
|
(215,000
|
)
|
|
(22,000
|
)
|
|
(30,000
|
)
|
|||
Proceeds from share-based award activity
|
100
|
|
|
14
|
|
|
158
|
|
|||
Taxes paid relating to net share settlement of equity awards
|
(114
|
)
|
|
—
|
|
|
—
|
|
|||
Redemption of subordinated note
|
—
|
|
|
—
|
|
|
(12,669
|
)
|
|||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
25,000
|
|
|||
Payments on long-term debt
|
(5,000
|
)
|
|
(5,000
|
)
|
|
(2,500
|
)
|
|||
Dividends paid
|
(8,061
|
)
|
|
(7,317
|
)
|
|
(6,344
|
)
|
|||
Issuance of common stock
|
25,688
|
|
|
—
|
|
|
7,900
|
|
|||
Expenses incurred in stock issuance
|
(1,328
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
$
|
115,514
|
|
|
$
|
81,532
|
|
|
$
|
(14,033
|
)
|
Net increase (decrease) in cash and cash equivalents
|
$
|
7,744
|
|
|
$
|
(3,869
|
)
|
|
$
|
23,688
|
|
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Beginning of period
|
43,228
|
|
|
$
|
47,097
|
|
|
$
|
23,409
|
|
|
Ending balance
|
$
|
50,972
|
|
|
$
|
43,228
|
|
|
$
|
47,097
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Cash paid during the period for interest
|
$
|
15,189
|
|
|
$
|
12,757
|
|
|
$
|
10,004
|
|
Cash paid during the period for income taxes
|
13,199
|
|
|
7,957
|
|
|
7,677
|
|
|||
Supplemental schedule of non-cash investing activities:
|
|
|
|
|
|
||||||
Transfer of loans to other real estate owned
|
$
|
1,159
|
|
|
$
|
1,887
|
|
|
$
|
1,760
|
|
Supplemental schedule of non-cash operating activities:
|
|
|
|
|
|
||||||
Transfer due to Tax Cuts and Jobs Act of 2017, reclassified from AOCI to Retained Earnings, tax effect
|
$
|
465
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Supplemental Schedule of non-cash Investing Activities from Acquisition:
|
|
|
|
|
|
||||||
Noncash assets acquired:
|
|
|
|
|
|
||||||
Investment securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
160,775
|
|
Loans
|
—
|
|
|
—
|
|
|
916,973
|
|
|||
Premises and equipment
|
—
|
|
|
—
|
|
|
27,908
|
|
|||
Goodwill
|
—
|
|
|
—
|
|
|
64,654
|
|
|||
Core deposit intangible
|
—
|
|
|
—
|
|
|
12,773
|
|
|||
Trade name intangible
|
—
|
|
|
—
|
|
|
1,380
|
|
|||
FDIC indemnification asset
|
—
|
|
|
—
|
|
|
3,753
|
|
|||
Other real estate owned
|
—
|
|
|
—
|
|
|
8,420
|
|
|||
Other assets
|
—
|
|
|
—
|
|
|
14,482
|
|
|||
Total noncash assets acquired
|
—
|
|
|
—
|
|
|
1,211,118
|
|
|||
|
|
|
|
|
|
||||||
Liabilities assumed:
|
|
|
|
|
|
||||||
Deposits
|
—
|
|
|
—
|
|
|
1,049,167
|
|
|||
Short-term borrowings
|
—
|
|
|
—
|
|
|
16,124
|
|
|||
Junior subordinated notes issued to capital trusts
|
—
|
|
|
—
|
|
|
8,050
|
|
|||
Subordinated note payable
|
—
|
|
|
—
|
|
|
12,669
|
|
|||
Other liabilities
|
—
|
|
|
—
|
|
|
11,617
|
|
|||
Total liabilities assumed
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,097,627
|
|
Note 1.
|
Nature of Business and Significant Accounting Policies
|
|
Years
|
|
|
||
Type of Assets
|
Minimum
|
|
Maximum
|
|
Depreciation Method
|
|
|
|
|
|
|
Buildings and leasehold improvements
|
10
|
-
|
30
|
|
Straight-line
|
Furniture and equipment
|
3
|
-
|
10
|
|
Straight-line
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
(in thousands)
|
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities available for sale, net of tax
|
|
$
|
(2,602
|
)
|
|
$
|
(1,133
|
)
|
|
$
|
3,408
|
|
Accumulated other comprehensive income (loss), net of tax
|
|
$
|
(2,602
|
)
|
|
$
|
(1,133
|
)
|
|
$
|
3,408
|
|
Note 2.
|
Business Combination
|
(in thousands)
|
|
May 1, 2015
|
||
ASSETS
|
|
|
||
Cash and due from banks
|
|
$
|
28,404
|
|
Investment securities
|
|
160,775
|
|
|
Loans
|
|
916,973
|
|
|
Premises and equipment
|
|
27,908
|
|
|
Goodwill
|
|
64,654
|
|
|
Core deposit intangible
|
|
12,773
|
|
|
Trade name intangible
|
|
1,380
|
|
|
FDIC indemnification asset
|
|
3,753
|
|
|
Other real estate owned
|
|
8,420
|
|
|
Other assets
|
|
14,482
|
|
|
Total assets
|
|
1,239,522
|
|
|
LIABILITIES
|
|
|
||
Deposits
|
|
1,049,167
|
|
|
Short-term borrowings
|
|
16,124
|
|
|
Junior subordinated notes issued to capital trusts
|
|
8,050
|
|
|
Subordinated notes payable
|
|
12,669
|
|
|
Accrued expenses and other liabilities
|
|
11,617
|
|
|
Total liabilities
|
|
1,097,627
|
|
|
Net assets
|
|
141,895
|
|
|
|
|
|
||
Consideration:
|
|
|
||
Market value of common stock at $29.31 per share at May 1, 2015 (2,723,083 shares of common stock issued), net of stock illiquidity discount due to restrictions
|
|
77,895
|
|
|
Cash paid
|
|
64,000
|
|
|
Total fair value of consideration
|
|
$
|
141,895
|
|
•
|
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.
|
•
|
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.
|
(in thousands)
|
|
Purchased Credit Impaired Loans
|
|
Purchased Non-Credit Impaired Loans
|
||||
Contractually required principal payments
|
|
$
|
36,886
|
|
|
$
|
905,314
|
|
Nonaccretable difference
|
|
(6,675
|
)
|
|
—
|
|
||
Principal cash flows expected to be collected
|
|
30,211
|
|
|
905,314
|
|
||
Accretable discount
(1)
|
|
(1,882
|
)
|
|
(16,670
|
)
|
||
Fair value of acquired loans
|
|
$
|
28,329
|
|
|
$
|
888,644
|
|
Note 3.
|
Investment Securities
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Estimated
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
(in thousands)
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations
|
$
|
15,716
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
15,626
|
|
State and political subdivisions
|
139,561
|
|
|
2,475
|
|
|
197
|
|
|
141,839
|
|
||||
Mortgage-backed securities
|
48,744
|
|
|
181
|
|
|
428
|
|
|
48,497
|
|
||||
Collateralized mortgage obligations
|
173,339
|
|
|
29
|
|
|
5,172
|
|
|
168,196
|
|
||||
Corporate debt securities
|
71,562
|
|
|
31
|
|
|
427
|
|
|
71,166
|
|
||||
Total debt securities
|
448,922
|
|
|
2,716
|
|
|
6,314
|
|
|
445,324
|
|
||||
Other equity securities
|
2,268
|
|
|
124
|
|
|
56
|
|
|
2,336
|
|
||||
Total investment securities
|
$
|
451,190
|
|
|
$
|
2,840
|
|
|
$
|
6,370
|
|
|
$
|
447,660
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
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 investment securities
|
$
|
479,390
|
|
|
$
|
4,160
|
|
|
$
|
6,032
|
|
|
$
|
477,518
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Estimated
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
(in thousands)
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations
|
$
|
10,049
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,049
|
|
State and political subdivisions
|
126,413
|
|
|
804
|
|
|
1,631
|
|
|
125,586
|
|
||||
Mortgage-backed securities
|
1,906
|
|
|
4
|
|
|
13
|
|
|
1,897
|
|
||||
Collateralized mortgage obligations
|
22,115
|
|
|
—
|
|
|
707
|
|
|
21,408
|
|
||||
Corporate debt securities
|
35,136
|
|
|
548
|
|
|
281
|
|
|
35,403
|
|
||||
Total
|
$
|
195,619
|
|
|
$
|
1,356
|
|
|
$
|
2,632
|
|
|
$
|
194,343
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
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 December 31, 2017
|
|||||||||||||||||||||||
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||||
Available for Sale
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
(in thousands, except number of securities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. Government agencies and corporations
|
3
|
|
|
$
|
15,626
|
|
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,626
|
|
|
$
|
90
|
|
State and political subdivisions
|
34
|
|
|
11,705
|
|
|
167
|
|
|
1,800
|
|
|
30
|
|
|
13,505
|
|
|
197
|
|
||||||
Mortgage-backed securities
|
20
|
|
|
37,964
|
|
|
359
|
|
|
3,961
|
|
|
69
|
|
|
41,925
|
|
|
428
|
|
||||||
Collateralized mortgage obligations
|
35
|
|
|
37,881
|
|
|
489
|
|
|
122,757
|
|
|
4,683
|
|
|
160,638
|
|
|
5,172
|
|
||||||
Corporate debt securities
|
12
|
|
|
55,340
|
|
|
298
|
|
|
8,778
|
|
|
129
|
|
|
64,118
|
|
|
427
|
|
||||||
Other equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1,944
|
|
|
56
|
|
|
1,944
|
|
|
56
|
|
||||||
Total
|
105
|
|
|
$
|
158,516
|
|
|
$
|
1,403
|
|
|
$
|
139,240
|
|
|
$
|
4,967
|
|
|
$
|
297,756
|
|
|
$
|
6,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
As of December 31, 2016
|
|||||||||||||||||||||||
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
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 December 31, 2017
|
|||||||||||||||||||||||
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||||
Held to Maturity
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||||
(in thousands, except number of securities)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
State and political subdivisions
|
167
|
|
|
$
|
33,237
|
|
|
$
|
393
|
|
|
$
|
25,843
|
|
|
$
|
1,238
|
|
|
$
|
59,080
|
|
|
$
|
1,631
|
|
Mortgage-backed securities
|
4
|
|
|
349
|
|
|
2
|
|
|
887
|
|
|
11
|
|
|
1,236
|
|
|
13
|
|
||||||
Collateralized mortgage obligations
|
7
|
|
|
5,221
|
|
|
90
|
|
|
16,168
|
|
|
617
|
|
|
21,389
|
|
|
707
|
|
||||||
Corporate debt securities
|
3
|
|
|
3,093
|
|
|
4
|
|
|
2,617
|
|
|
277
|
|
|
5,710
|
|
|
281
|
|
||||||
Total
|
181
|
|
|
$
|
41,900
|
|
|
$
|
489
|
|
|
$
|
45,515
|
|
|
$
|
2,143
|
|
|
$
|
87,415
|
|
|
$
|
2,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
As of December 31, 2016
|
|||||||||||||||||||||||
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
Fair
Value
|
|
Unrealized
Losses
|
|
Estimated
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
|
$
|
26,155
|
|
|
$
|
26,283
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year through five years
|
119,633
|
|
|
119,972
|
|
|
19,038
|
|
|
19,062
|
|
||||
Due after five years through ten years
|
67,369
|
|
|
68,716
|
|
|
89,790
|
|
|
90,298
|
|
||||
Due after ten years
|
13,682
|
|
|
13,660
|
|
|
62,770
|
|
|
61,678
|
|
||||
Debt securities without a single maturity date
|
222,083
|
|
|
216,693
|
|
|
24,021
|
|
|
23,305
|
|
||||
Total
|
$
|
448,922
|
|
|
$
|
445,324
|
|
|
$
|
195,619
|
|
|
$
|
194,343
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(in thousands)
|
|
|
|
|
|
||||||
Available for sale fixed maturity securities:
|
|
|
|
|
|
||||||
Gross realized gains
|
$
|
199
|
|
|
$
|
469
|
|
|
$
|
1,265
|
|
Gross realized losses
|
(11
|
)
|
|
(5
|
)
|
|
(442
|
)
|
|||
|
188
|
|
|
464
|
|
|
823
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Gross realized gains
|
—
|
|
|
—
|
|
|
188
|
|
|||
|
—
|
|
|
—
|
|
|
188
|
|
|||
Held to maturity fixed maturity securities:
|
|
|
|
|
|
||||||
Gross realized gains
|
53
|
|
|
—
|
|
|
—
|
|
|||
Total net realized gains and losses
|
$
|
241
|
|
|
$
|
464
|
|
|
$
|
1,011
|
|
Note 4.
|
Loans Receivable and the Allowance for Loan Losses
|
|
Allowance for Loan Losses and Recorded Investment in Loan Receivables
|
||||||||||||||||||||||
|
As of December 31, 2017
|
||||||||||||||||||||||
(in thousands)
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
140
|
|
|
$
|
1,126
|
|
|
$
|
2,157
|
|
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
3,649
|
|
Collectively evaluated for impairment
|
2,650
|
|
|
7,392
|
|
|
11,144
|
|
|
2,182
|
|
|
244
|
|
|
23,612
|
|
||||||
Purchased credit impaired loans
|
—
|
|
|
—
|
|
|
336
|
|
|
462
|
|
|
—
|
|
|
798
|
|
||||||
Total
|
$
|
2,790
|
|
|
$
|
8,518
|
|
|
$
|
13,637
|
|
|
$
|
2,870
|
|
|
$
|
244
|
|
|
$
|
28,059
|
|
Loans receivable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
2,969
|
|
|
$
|
9,734
|
|
|
$
|
10,386
|
|
|
$
|
3,722
|
|
|
$
|
—
|
|
|
$
|
26,811
|
|
Collectively evaluated for impairment
|
102,543
|
|
|
493,844
|
|
|
1,147,133
|
|
|
460,475
|
|
|
36,158
|
|
|
2,240,153
|
|
||||||
Purchased credit impaired loans
|
—
|
|
|
46
|
|
|
14,452
|
|
|
5,233
|
|
|
—
|
|
|
19,731
|
|
||||||
Total
|
$
|
105,512
|
|
|
$
|
503,624
|
|
|
$
|
1,171,971
|
|
|
$
|
469,430
|
|
|
$
|
36,158
|
|
|
$
|
2,286,695
|
|
|
As of December 31, 2016
|
||||||||||||||||||||||
(in thousands)
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
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 Years Ended December 31, 2017, 2016, and 2015
|
||||||||||||||||||||||||||
(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
|
(1,202
|
)
|
|
(2,338
|
)
|
|
(7,931
|
)
|
|
(305
|
)
|
|
(257
|
)
|
|
—
|
|
|
(12,033
|
)
|
|||||||
Recoveries
|
187
|
|
|
232
|
|
|
291
|
|
|
180
|
|
|
18
|
|
|
—
|
|
|
908
|
|
|||||||
Provision
|
1,802
|
|
|
4,350
|
|
|
11,417
|
|
|
(463
|
)
|
|
228
|
|
|
—
|
|
|
17,334
|
|
|||||||
Ending balance
|
$
|
2,790
|
|
|
$
|
8,518
|
|
|
$
|
13,637
|
|
|
$
|
2,870
|
|
|
$
|
244
|
|
|
$
|
—
|
|
|
$
|
28,059
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning balance
|
$
|
1,417
|
|
|
$
|
5,451
|
|
|
$
|
8,556
|
|
|
$
|
3,968
|
|
|
$
|
409
|
|
|
$
|
(374
|
)
|
|
$
|
19,427
|
|
Charge-offs
|
(1,204
|
)
|
|
(3,066
|
)
|
|
(931
|
)
|
|
(782
|
)
|
|
(98
|
)
|
|
—
|
|
|
(6,081
|
)
|
|||||||
Recoveries
|
33
|
|
|
124
|
|
|
192
|
|
|
157
|
|
|
15
|
|
|
—
|
|
|
521
|
|
|||||||
Provision
|
1,757
|
|
|
3,765
|
|
|
2,043
|
|
|
115
|
|
|
(71
|
)
|
|
374
|
|
|
7,983
|
|
|||||||
Ending balance
|
$
|
2,003
|
|
|
$
|
6,274
|
|
|
$
|
9,860
|
|
|
$
|
3,458
|
|
|
$
|
255
|
|
|
$
|
—
|
|
|
$
|
21,850
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning balance
|
$
|
1,506
|
|
|
$
|
5,780
|
|
|
$
|
4,399
|
|
|
$
|
3,167
|
|
|
$
|
323
|
|
|
$
|
1,188
|
|
|
$
|
16,363
|
|
Charge-offs
|
(245
|
)
|
|
(692
|
)
|
|
(853
|
)
|
|
(740
|
)
|
|
(92
|
)
|
|
—
|
|
|
(2,622
|
)
|
|||||||
Recoveries
|
1
|
|
|
372
|
|
|
7
|
|
|
143
|
|
|
31
|
|
|
—
|
|
|
554
|
|
|||||||
Provision
|
155
|
|
|
(9
|
)
|
|
5,003
|
|
|
1,398
|
|
|
147
|
|
|
(1,562
|
)
|
|
5,132
|
|
|||||||
Ending balance
|
$
|
1,417
|
|
|
$
|
5,451
|
|
|
$
|
8,556
|
|
|
$
|
3,968
|
|
|
$
|
409
|
|
|
$
|
(374
|
)
|
|
$
|
19,427
|
|
•
|
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.
|
|
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||
|
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
|
|
Number of Contracts
|
|
Pre-Modification Outstanding Recorded Investment
|
|
Post-Modification Outstanding Recorded Investment
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Troubled Debt Restructurings
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
0
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
$
|
25
|
|
|
$
|
25
|
|
|
0
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
6
|
|
2,037
|
|
|
2,083
|
|
|
0
|
|
—
|
|
|
—
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Farmland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
2
|
|
176
|
|
|
176
|
|
|
0
|
|
—
|
|
|
—
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
2
|
|
4,276
|
|
|
4,276
|
|
|
0
|
|
—
|
|
|
—
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
Other
|
1
|
|
10,546
|
|
|
10,923
|
|
|
1
|
|
1,000
|
|
|
700
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate reduction
|
0
|
|
—
|
|
|
—
|
|
|
2
|
|
394
|
|
|
394
|
|
|
1
|
|
151
|
|
|
151
|
|
||||||
One- to four- family junior liens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate reduction
|
0
|
|
—
|
|
|
—
|
|
|
1
|
|
71
|
|
|
71
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
Total
|
11
|
|
$
|
17,035
|
|
|
$
|
17,458
|
|
|
5
|
|
$
|
1,490
|
|
|
$
|
1,190
|
|
|
1
|
|
$
|
151
|
|
|
$
|
151
|
|
|
|
||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
Number of Contracts
|
|
Recorded Investment
|
|
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
|
4
|
|
$
|
1,504
|
|
|
0
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate-other
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
1
|
|
968
|
|
|
0
|
|
—
|
|
|
0
|
|
—
|
|
|||
Total
|
5
|
|
$
|
2,472
|
|
|
0
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
•
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
80,377
|
|
|
$
|
21,989
|
|
|
$
|
3,146
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
105,512
|
|
Commercial and industrial
(1)
|
453,363
|
|
|
23,153
|
|
|
27,102
|
|
|
6
|
|
|
—
|
|
|
503,624
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
162,968
|
|
|
1,061
|
|
|
1,247
|
|
|
—
|
|
|
—
|
|
|
165,276
|
|
||||||
Farmland
|
76,740
|
|
|
10,357
|
|
|
771
|
|
|
—
|
|
|
—
|
|
|
87,868
|
|
||||||
Multifamily
|
131,507
|
|
|
2,498
|
|
|
501
|
|
|
—
|
|
|
—
|
|
|
134,506
|
|
||||||
Commercial real estate-other
|
731,231
|
|
|
34,056
|
|
|
19,034
|
|
|
—
|
|
|
—
|
|
|
784,321
|
|
||||||
Total commercial real estate
|
1,102,446
|
|
|
47,972
|
|
|
21,553
|
|
|
—
|
|
|
—
|
|
|
1,171,971
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
340,446
|
|
|
2,776
|
|
|
9,004
|
|
|
—
|
|
|
—
|
|
|
352,226
|
|
||||||
One- to four- family junior liens
|
114,763
|
|
|
952
|
|
|
1,489
|
|
|
—
|
|
|
—
|
|
|
117,204
|
|
||||||
Total residential real estate
|
455,209
|
|
|
3,728
|
|
|
10,493
|
|
|
—
|
|
|
—
|
|
|
469,430
|
|
||||||
Consumer
|
36,059
|
|
|
—
|
|
|
68
|
|
|
31
|
|
|
—
|
|
|
36,158
|
|
||||||
Total
|
$
|
2,127,454
|
|
|
$
|
96,842
|
|
|
$
|
62,362
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
2,286,695
|
|
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
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & 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
|
|
|
As of December 31,
|
||||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
1,523
|
|
|
$
|
2,023
|
|
|
$
|
—
|
|
|
$
|
3,673
|
|
|
$
|
4,952
|
|
|
$
|
—
|
|
Commercial and industrial
|
7,588
|
|
|
7,963
|
|
|
—
|
|
|
6,211
|
|
|
6,259
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
84
|
|
|
84
|
|
|
—
|
|
|
445
|
|
|
1,170
|
|
|
—
|
|
||||||
Farmland
|
287
|
|
|
287
|
|
|
—
|
|
|
2,230
|
|
|
2,380
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
5,746
|
|
|
6,251
|
|
|
—
|
|
|
2,224
|
|
|
2,384
|
|
|
—
|
|
||||||
Total commercial real estate
|
6,117
|
|
|
6,622
|
|
|
—
|
|
|
4,899
|
|
|
5,934
|
|
|
—
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
2,449
|
|
|
2,482
|
|
|
—
|
|
|
2,429
|
|
|
2,442
|
|
|
—
|
|
||||||
One- to four- family junior liens
|
26
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total residential real estate
|
2,475
|
|
|
2,508
|
|
|
—
|
|
|
2,429
|
|
|
2,442
|
|
|
—
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
17,703
|
|
|
$
|
19,116
|
|
|
$
|
—
|
|
|
$
|
17,212
|
|
|
$
|
19,587
|
|
|
$
|
—
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
1,446
|
|
|
$
|
1,446
|
|
|
$
|
140
|
|
|
$
|
1,666
|
|
|
$
|
1,669
|
|
|
$
|
62
|
|
Commercial and industrial
|
2,146
|
|
|
2,177
|
|
|
1,126
|
|
|
5,223
|
|
|
5,223
|
|
|
2,066
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
—
|
|
|
—
|
|
|
—
|
|
|
263
|
|
|
270
|
|
|
21
|
|
||||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
4,269
|
|
|
11,536
|
|
|
2,157
|
|
|
6,288
|
|
|
6,344
|
|
|
1,903
|
|
||||||
Total commercial real estate
|
4,269
|
|
|
11,536
|
|
|
2,157
|
|
|
6,551
|
|
|
6,614
|
|
|
1,924
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
979
|
|
|
979
|
|
|
185
|
|
|
1,526
|
|
|
1,526
|
|
|
299
|
|
||||||
One- to four- family junior liens
|
268
|
|
|
268
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total residential real estate
|
1,247
|
|
|
1,247
|
|
|
226
|
|
|
1,526
|
|
|
1,526
|
|
|
299
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
9,108
|
|
|
$
|
16,406
|
|
|
$
|
3,649
|
|
|
$
|
14,966
|
|
|
$
|
15,032
|
|
|
$
|
4,351
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
2,969
|
|
|
$
|
3,469
|
|
|
$
|
140
|
|
|
$
|
5,339
|
|
|
$
|
6,621
|
|
|
$
|
62
|
|
Commercial and industrial
|
9,734
|
|
|
10,140
|
|
|
1,126
|
|
|
11,434
|
|
|
11,482
|
|
|
2,066
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
84
|
|
|
84
|
|
|
—
|
|
|
708
|
|
|
1,440
|
|
|
21
|
|
||||||
Farmland
|
287
|
|
|
287
|
|
|
—
|
|
|
2,230
|
|
|
2,380
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
10,015
|
|
|
17,787
|
|
|
2,157
|
|
|
8,512
|
|
|
8,728
|
|
|
1,903
|
|
||||||
Total commercial real estate
|
10,386
|
|
|
18,158
|
|
|
2,157
|
|
|
11,450
|
|
|
12,548
|
|
|
1,924
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
3,428
|
|
|
3,461
|
|
|
185
|
|
|
3,955
|
|
|
3,968
|
|
|
299
|
|
||||||
One- to four- family junior liens
|
294
|
|
|
294
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total residential real estate
|
3,722
|
|
|
3,755
|
|
|
226
|
|
|
3,955
|
|
|
3,968
|
|
|
299
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
26,811
|
|
|
$
|
35,522
|
|
|
$
|
3,649
|
|
|
$
|
32,178
|
|
|
$
|
34,619
|
|
|
$
|
4,351
|
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
1,585
|
|
|
$
|
66
|
|
|
$
|
3,815
|
|
|
$
|
88
|
|
|
$
|
1,533
|
|
|
$
|
58
|
|
Commercial and industrial
|
7,588
|
|
|
230
|
|
|
6,540
|
|
|
79
|
|
|
6,769
|
|
|
424
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
364
|
|
|
2
|
|
|
390
|
|
|
54
|
|
|
325
|
|
|
7
|
|
||||||
Farmland
|
1,012
|
|
|
58
|
|
|
2,389
|
|
|
97
|
|
|
2,743
|
|
|
128
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,833
|
|
|
68
|
|
||||||
Commercial real estate-other
|
5,682
|
|
|
233
|
|
|
2,243
|
|
|
60
|
|
|
12,772
|
|
|
446
|
|
||||||
Total commercial real estate
|
7,058
|
|
|
293
|
|
|
5,022
|
|
|
211
|
|
|
17,673
|
|
|
649
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
2,406
|
|
|
84
|
|
|
2,430
|
|
|
101
|
|
|
2,469
|
|
|
81
|
|
||||||
One- to four- family junior liens
|
27
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1,313
|
|
|
42
|
|
||||||
Total residential real estate
|
2,433
|
|
|
86
|
|
|
2,430
|
|
|
101
|
|
|
3,782
|
|
|
123
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
2
|
|
||||||
Total
|
$
|
18,664
|
|
|
$
|
675
|
|
|
$
|
17,807
|
|
|
$
|
479
|
|
|
$
|
29,778
|
|
|
$
|
1,256
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
1,457
|
|
|
$
|
44
|
|
|
$
|
1,678
|
|
|
$
|
46
|
|
|
$
|
1,572
|
|
|
$
|
48
|
|
Commercial and industrial
|
2,189
|
|
|
103
|
|
|
5,277
|
|
|
74
|
|
|
1,313
|
|
|
67
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
—
|
|
|
—
|
|
|
263
|
|
|
3
|
|
|
34
|
|
|
—
|
|
||||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
2
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
226
|
|
|
6
|
|
||||||
Commercial real estate-other
|
4,275
|
|
|
34
|
|
|
6,515
|
|
|
—
|
|
|
6,528
|
|
|
344
|
|
||||||
Total commercial real estate
|
4,275
|
|
|
34
|
|
|
6,778
|
|
|
3
|
|
|
6,858
|
|
|
352
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
1,030
|
|
|
35
|
|
|
1,559
|
|
|
41
|
|
|
1,928
|
|
|
44
|
|
||||||
One- to four- family junior liens
|
267
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||
Total residential real estate
|
1,297
|
|
|
40
|
|
|
1,559
|
|
|
41
|
|
|
1,943
|
|
|
44
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||||
Total
|
$
|
9,218
|
|
|
$
|
221
|
|
|
$
|
15,292
|
|
|
$
|
164
|
|
|
$
|
11,695
|
|
|
$
|
511
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
3,042
|
|
|
$
|
110
|
|
|
$
|
5,493
|
|
|
$
|
134
|
|
|
$
|
3,105
|
|
|
$
|
106
|
|
Commercial and industrial
|
9,777
|
|
|
333
|
|
|
11,817
|
|
|
153
|
|
|
8,082
|
|
|
491
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
364
|
|
|
2
|
|
|
653
|
|
|
57
|
|
|
359
|
|
|
7
|
|
||||||
Farmland
|
1,012
|
|
|
58
|
|
|
2,389
|
|
|
97
|
|
|
2,813
|
|
|
130
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,059
|
|
|
74
|
|
||||||
Commercial real estate-other
|
9,957
|
|
|
267
|
|
|
8,758
|
|
|
60
|
|
|
19,300
|
|
|
790
|
|
||||||
Total commercial real estate
|
11,333
|
|
|
327
|
|
|
11,800
|
|
|
214
|
|
|
24,531
|
|
|
1,001
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
3,436
|
|
|
119
|
|
|
3,989
|
|
|
142
|
|
|
4,397
|
|
|
125
|
|
||||||
One- to four- family junior liens
|
294
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
1,328
|
|
|
42
|
|
||||||
Total residential real estate
|
3,730
|
|
|
126
|
|
|
3,989
|
|
|
142
|
|
|
5,725
|
|
|
167
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
2
|
|
||||||
Total
|
$
|
27,882
|
|
|
$
|
896
|
|
|
$
|
33,099
|
|
|
$
|
643
|
|
|
$
|
41,473
|
|
|
$
|
1,767
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
95
|
|
|
$
|
118
|
|
|
$
|
168
|
|
|
$
|
381
|
|
|
$
|
105,131
|
|
|
$
|
105,512
|
|
Commercial and industrial
(1)
|
1,434
|
|
|
1,336
|
|
|
1,576
|
|
|
4,346
|
|
|
499,278
|
|
|
503,624
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
57
|
|
|
97
|
|
|
82
|
|
|
236
|
|
|
165,040
|
|
|
165,276
|
|
||||||
Farmland
|
217
|
|
|
—
|
|
|
373
|
|
|
590
|
|
|
87,278
|
|
|
87,868
|
|
||||||
Multifamily
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
134,481
|
|
|
134,506
|
|
||||||
Commercial real estate-other
|
74
|
|
|
—
|
|
|
1,852
|
|
|
1,926
|
|
|
782,395
|
|
|
784,321
|
|
||||||
Total commercial real estate
|
348
|
|
|
122
|
|
|
2,307
|
|
|
2,777
|
|
|
1,169,194
|
|
|
1,171,971
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
3,854
|
|
|
756
|
|
|
1,019
|
|
|
5,629
|
|
|
346,597
|
|
|
352,226
|
|
||||||
One- to four- family junior liens
|
325
|
|
|
770
|
|
|
271
|
|
|
1,366
|
|
|
115,838
|
|
|
117,204
|
|
||||||
Total residential real estate
|
4,179
|
|
|
1,526
|
|
|
1,290
|
|
|
6,995
|
|
|
462,435
|
|
|
469,430
|
|
||||||
Consumer
|
79
|
|
|
15
|
|
|
29
|
|
|
123
|
|
|
36,035
|
|
|
36,158
|
|
||||||
Total
|
$
|
6,135
|
|
|
$
|
3,117
|
|
|
$
|
5,370
|
|
|
$
|
14,622
|
|
|
$
|
2,272,073
|
|
|
$
|
2,286,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in the totals above are the following purchased credit impaired loans
|
$
|
164
|
|
|
$
|
756
|
|
|
$
|
553
|
|
|
$
|
1,473
|
|
|
$
|
18,258
|
|
|
$
|
19,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 & 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
|
|
|
As of December 31,
|
||||||||||||||
|
2017
|
|
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
|
$
|
168
|
|
|
$
|
—
|
|
|
$
|
2,690
|
|
|
$
|
—
|
|
Commercial and industrial
|
7,124
|
|
|
—
|
|
|
8,358
|
|
|
—
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction & development
|
188
|
|
|
—
|
|
|
780
|
|
|
95
|
|
||||
Farmland
|
386
|
|
|
—
|
|
|
227
|
|
|
—
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate-other
|
5,279
|
|
|
—
|
|
|
7,360
|
|
|
—
|
|
||||
Total commercial real estate
|
5,853
|
|
|
—
|
|
|
8,367
|
|
|
95
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
One- to four- family first liens
|
1,228
|
|
|
205
|
|
|
1,127
|
|
|
375
|
|
||||
One- to four- family junior liens
|
346
|
|
|
2
|
|
|
116
|
|
|
15
|
|
||||
Total residential real estate
|
1,574
|
|
|
207
|
|
|
1,243
|
|
|
390
|
|
||||
Consumer
|
65
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||
Total
|
$
|
14,784
|
|
|
$
|
207
|
|
|
$
|
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.
|
|
For the Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Balance at beginning of period
|
$
|
1,961
|
|
|
$
|
1,446
|
|
Purchases
|
—
|
|
|
—
|
|
||
Accretion
|
(1,711
|
)
|
|
(3,287
|
)
|
||
Reclassification from nonaccretable difference
(1)
|
590
|
|
|
3,802
|
|
||
Balance at end of period
|
$
|
840
|
|
|
$
|
1,961
|
|
Note 5.
|
Premises and Equipment
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Land
|
$
|
13,175
|
|
|
$
|
12,970
|
|
Buildings and leasehold improvements
|
71,057
|
|
|
68,405
|
|
||
Furniture and equipment
|
16,535
|
|
|
15,851
|
|
||
Construction in process
|
2,658
|
|
|
1,439
|
|
||
Premises and equipment
|
103,425
|
|
|
98,665
|
|
||
Accumulated depreciation and amortization
|
27,456
|
|
|
23,622
|
|
||
Premises and equipment, net
|
$
|
75,969
|
|
|
$
|
75,043
|
|
Note 6.
|
Goodwill and Intangible Assets
|
|
Insurance Agency Intangible
|
|
Core Deposit Intangible
|
|
Indefinite-Lived Trade Name Intangible
|
|
Finite-Lived Trade Name Intangible
|
|
Customer List Intangible
|
|
Total
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
203
|
|
|
$
|
6,846
|
|
|
$
|
7,040
|
|
|
$
|
960
|
|
|
$
|
122
|
|
|
$
|
15,171
|
|
Amortization expense
|
(55
|
)
|
|
(2,835
|
)
|
|
—
|
|
|
(216
|
)
|
|
(19
|
)
|
|
(3,125
|
)
|
||||||
Balance at end of period
|
$
|
148
|
|
|
$
|
4,011
|
|
|
$
|
7,040
|
|
|
$
|
744
|
|
|
$
|
103
|
|
|
$
|
12,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross carrying amount
|
$
|
1,320
|
|
|
$
|
18,206
|
|
|
$
|
7,040
|
|
|
$
|
1,380
|
|
|
$
|
330
|
|
|
$
|
28,276
|
|
Accumulated amortization
|
(1,172
|
)
|
|
(14,195
|
)
|
|
—
|
|
|
(636
|
)
|
|
(227
|
)
|
|
(16,230
|
)
|
||||||
Net book value
|
$
|
148
|
|
|
$
|
4,011
|
|
|
$
|
7,040
|
|
|
$
|
744
|
|
|
$
|
103
|
|
|
$
|
12,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Remaining weighted average useful life (years)
|
6
|
|
|
4
|
|
|
|
|
7
|
|
|
6
|
|
|
|
|
Insurance Agency Intangible
|
|
Core Deposit Intangible
|
|
Indefinite-Lived Trade Name Intangible
|
|
Finite-Lived Trade Name Intangible
|
|
Customer List Intangible
|
|
Total
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
$
|
275
|
|
|
$
|
10,480
|
|
|
$
|
7,040
|
|
|
$
|
1,203
|
|
|
$
|
143
|
|
|
$
|
19,141
|
|
Amortization expense
|
(72
|
)
|
|
(3,634
|
)
|
|
—
|
|
|
(243
|
)
|
|
(21
|
)
|
|
(3,970
|
)
|
||||||
Balance at end of period
|
$
|
203
|
|
|
$
|
6,846
|
|
|
$
|
7,040
|
|
|
$
|
960
|
|
|
$
|
122
|
|
|
$
|
15,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross carrying amount
|
$
|
1,320
|
|
|
$
|
18,206
|
|
|
$
|
7,040
|
|
|
$
|
1,380
|
|
|
$
|
330
|
|
|
$
|
28,276
|
|
Accumulated amortizations
|
(1,117
|
)
|
|
(11,360
|
)
|
|
—
|
|
|
(420
|
)
|
|
(208
|
)
|
|
(13,105
|
)
|
||||||
Net book value
|
$
|
203
|
|
|
$
|
6,846
|
|
|
$
|
7,040
|
|
|
$
|
960
|
|
|
$
|
122
|
|
|
$
|
15,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Remaining weighted average useful life (years)
|
7
|
|
|
5
|
|
|
|
|
8
|
|
|
7
|
|
|
|
|
Insurance
|
|
Core
|
|
Trade
|
|
Customer
|
|
|
||||||||||
|
Agency
|
|
Deposit
|
|
Name
|
|
List
|
|
|
||||||||||
|
Intangible
|
|
Premium
|
|
Intangible
|
|
Intangible
|
|
Totals
|
||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ending December 31,
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
$
|
38
|
|
|
$
|
2,037
|
|
|
$
|
188
|
|
|
$
|
18
|
|
|
$
|
2,281
|
|
2019
|
21
|
|
|
1,312
|
|
|
161
|
|
|
17
|
|
|
1,511
|
|
|||||
2020
|
20
|
|
|
613
|
|
|
133
|
|
|
16
|
|
|
782
|
|
|||||
2021
|
19
|
|
|
49
|
|
|
106
|
|
|
15
|
|
|
189
|
|
|||||
2022
|
18
|
|
|
—
|
|
|
79
|
|
|
14
|
|
|
111
|
|
|||||
Thereafter
|
32
|
|
|
—
|
|
|
77
|
|
|
23
|
|
|
132
|
|
|||||
Total
|
$
|
148
|
|
|
$
|
4,011
|
|
|
$
|
744
|
|
|
$
|
103
|
|
|
$
|
5,006
|
|
Note 7.
|
Other Assets
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Federal Home Loan Bank Stock
|
$
|
11,324
|
|
|
$
|
12,800
|
|
FDIC indemnification asset, net
|
—
|
|
|
479
|
|
||
Prepaid expenses
|
2,992
|
|
|
1,760
|
|
||
Mortgage servicing rights
|
2,316
|
|
|
1,951
|
|
||
Federal and state taxes, current
|
3,120
|
|
|
—
|
|
||
Accounts receivable & other miscellaneous assets
|
3,009
|
|
|
1,323
|
|
||
|
$
|
22,761
|
|
|
$
|
18,313
|
|
Note 8.
|
Loans Serviced for Others
|
Note 9.
|
Time Deposits
|
(in thousands)
|
|
||
2018
|
$
|
391,444
|
|
2019
|
166,518
|
|
|
2020
|
71,749
|
|
|
2021
|
44,331
|
|
|
2022
|
27,763
|
|
|
Thereafter
|
3
|
|
|
Total
|
$
|
701,808
|
|
Note 10.
|
Short-Term Borrowings
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||
(dollars in thousands)
|
|
Weighted Average Cost
|
|
Balance
|
|
Weighted Average Cost
|
|
Balance
|
||||||
Federal funds purchased
|
|
1.77
|
%
|
|
$
|
1,000
|
|
|
0.83
|
%
|
|
$
|
35,684
|
|
Securities sold under agreements to repurchase
|
|
0.71
|
|
|
96,229
|
|
|
0.22
|
|
|
82,187
|
|
||
Total
|
|
0.73
|
%
|
|
$
|
97,229
|
|
|
0.40
|
%
|
|
$
|
117,871
|
|
Note 11.
|
Subordinated Notes Payable
|
|
|
Face Value
|
|
Book Value
|
|
Interest Rate
|
|
Year-end
Interest Rate
|
|
Maturity Date
|
|
Callable Date
|
|||||
(in thousands)
|
|
|
|
|
|
|
|||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Central Bancshares Capital Trust II
(1) (2)
|
|
$
|
7,217
|
|
|
$
|
6,674
|
|
|
Three-month LIBOR + 3.50%
|
|
5.09
|
%
|
|
03/15/2038
|
|
03/15/2013
|
Barron Investment Capital Trust I
(1) (2)
|
|
2,062
|
|
|
1,655
|
|
|
Three-month LIBOR + 2.15%
|
|
3.82
|
%
|
|
09/23/2036
|
|
09/23/2011
|
||
MidWestOne Statutory Trust II
(1)
|
|
15,464
|
|
|
15,464
|
|
|
Three-month LIBOR + 1.59%
|
|
3.18
|
%
|
|
12/15/2037
|
|
12/15/2012
|
||
Total
|
|
$
|
24,743
|
|
|
$
|
23,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Central Bancshares Capital Trust II
(1) (2)
|
|
$
|
7,217
|
|
|
$
|
6,614
|
|
|
Three-month LIBOR + 3.50%
|
|
4.46
|
%
|
|
3/15/2038
|
|
3/15/2013
|
Barron Investment Capital Trust I
(1) (2)
|
|
2,062
|
|
|
1,614
|
|
|
Three-month LIBOR + 2.15%
|
|
3.15
|
%
|
|
9/23/2036
|
|
9/23/2011
|
||
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
|
|
|
|
|
|
|
|
|
|
Note 12.
|
Long-Term Borrowings
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||
(dollars in thousands)
|
|
Weighted Average Cost
|
|
Balance
|
|
Weighted Average Cost
|
|
Balance
|
||||||
FHLB Borrowings
|
|
1.72
|
%
|
|
$
|
115,000
|
|
|
1.56
|
%
|
|
$
|
115,000
|
|
Note payable to unaffiliated bank
|
|
3.32
|
|
|
12,500
|
|
|
2.52
|
|
|
17,500
|
|
||
Total
|
|
1.88
|
%
|
|
$
|
127,500
|
|
|
1.69
|
%
|
|
$
|
132,500
|
|
|
Rates
|
|
Amount
|
||||||||||
|
Minimum
|
|
Maximum
|
|
2017
|
|
2016
|
||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||
Due in 2017
|
0.79
|
%
|
to
|
2.78
|
%
|
|
$
|
—
|
|
|
$
|
30,000
|
|
Due in 2018
|
1.30
|
%
|
to
|
1.60
|
%
|
|
19,000
|
|
|
19,000
|
|
||
Due in 2019
|
1.42
|
%
|
to
|
1.85
|
%
|
|
27,000
|
|
|
27,000
|
|
||
Due in 2020
|
1.52
|
%
|
to
|
2.25
|
%
|
|
47,000
|
|
|
32,000
|
|
||
Due in 2021
|
1.78
|
%
|
to
|
1.93
|
%
|
|
22,000
|
|
|
7,000
|
|
||
Total
|
|
|
|
|
$
|
115,000
|
|
|
$
|
115,000
|
|
Note 13.
|
Income Taxes
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(in thousands)
|
|
|
|
|
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal tax expense
|
$
|
7,289
|
|
|
$
|
7,410
|
|
|
$
|
6,147
|
|
State tax expense
|
2,435
|
|
|
2,303
|
|
|
372
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Deferred income tax expense
|
744
|
|
|
(2,853
|
)
|
|
1,300
|
|
|||
Excess tax benefit from share-based award activity
|
(92
|
)
|
|
—
|
|
|
—
|
|
|||
Total income tax provision
|
$
|
10,376
|
|
|
$
|
6,860
|
|
|
$
|
7,819
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
(dollars in thousands)
|
Amount
|
|
% of Pretax Income
|
|
Amount
|
|
% of Pretax Income
|
|
Amount
|
|
% of Pretax Income
|
|||||||||
Expected provision
|
$
|
10,176
|
|
|
35.0
|
%
|
|
$
|
9,538
|
|
|
35.0
|
%
|
|
$
|
11,528
|
|
|
35.0
|
%
|
Tax-exempt interest
|
(3,182
|
)
|
|
(10.9
|
)
|
|
(3,011
|
)
|
|
(11.0
|
)
|
|
(2,817
|
)
|
|
(8.6
|
)
|
|||
Bank-owned life insurance
|
(485
|
)
|
|
(1.7
|
)
|
|
(477
|
)
|
|
(1.8
|
)
|
|
(438
|
)
|
|
(1.3
|
)
|
|||
State income taxes, net of federal income tax benefit
|
1,307
|
|
|
4.5
|
|
|
1,257
|
|
|
4.6
|
|
|
333
|
|
|
1.0
|
|
|||
Non-deductible acquisition expenses
|
—
|
|
|
—
|
|
|
83
|
|
|
0.3
|
|
|
691
|
|
|
2.1
|
|
|||
General business credits
|
(466
|
)
|
|
(1.6
|
)
|
|
(537
|
)
|
|
(2.0
|
)
|
|
(1,225
|
)
|
|
(3.7
|
)
|
|||
Federal income tax rate change
|
3,212
|
|
|
11.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
(186
|
)
|
|
(0.7
|
)
|
|
7
|
|
|
0.1
|
|
|
(253
|
)
|
|
(0.8
|
)
|
|||
Total income tax provision
|
$
|
10,376
|
|
|
35.7
|
%
|
|
$
|
6,860
|
|
|
25.2
|
%
|
|
$
|
7,819
|
|
|
23.7
|
%
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Deferred income tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
7,311
|
|
|
$
|
8,585
|
|
Deferred compensation
|
1,344
|
|
|
1,982
|
|
||
Net operating losses (state net operating loss carryforwards)
|
4,131
|
|
|
3,838
|
|
||
Unrealized losses on investment securities
|
928
|
|
|
738
|
|
||
Other real estate owned
|
175
|
|
|
283
|
|
||
Deferred loan fees
|
143
|
|
|
—
|
|
||
Other
|
1,777
|
|
|
3,012
|
|
||
Gross deferred tax assets
|
15,809
|
|
|
18,438
|
|
||
|
|
|
|
||||
Deferred income tax liabilities:
|
|
|
|
||||
Premises and equipment depreciation and amortization
|
2,604
|
|
|
4,092
|
|
||
Federal Home Loan Bank stock
|
91
|
|
|
137
|
|
||
Purchase accounting adjustments
|
1,179
|
|
|
2,352
|
|
||
Mortgage servicing rights
|
603
|
|
|
766
|
|
||
Prepaid expenses
|
523
|
|
|
289
|
|
||
Deferred loan fees
|
—
|
|
|
225
|
|
||
Other
|
153
|
|
|
216
|
|
||
Gross deferred tax liabilities
|
5,153
|
|
|
8,077
|
|
||
Net deferred income tax asset
|
10,656
|
|
|
10,361
|
|
||
Valuation allowance
|
4,131
|
|
|
3,838
|
|
||
Net deferred tax asset
|
$
|
6,525
|
|
|
$
|
6,523
|
|
Note 14.
|
Employee Benefit Plans
|
Note 15.
|
Stock Compensation Plans
|
|
|
|
|
|
Weighted-
|
|
|
|||||
|
|
|
|
|
Average
|
|
|
|||||
|
|
|
Weighted-
|
|
Remaining
|
|
Aggregate
|
|||||
|
|
|
Average
|
|
Contractual
|
|
Intrinsic
|
|||||
|
|
|
Exercise
|
|
Term in
|
|
Value
|
|||||
|
Shares
|
|
Price
|
|
Years
|
|
($000)
|
|||||
Outstanding at December 31, 2016
|
18,450
|
|
|
$
|
12.42
|
|
|
|
|
|
||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
(8,750
|
)
|
|
10.69
|
|
|
|
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Expired
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at December 31, 2017
|
9,700
|
|
|
$
|
13.98
|
|
|
0.58
|
|
$
|
190
|
|
Exercisable at December 31, 2017
|
9,700
|
|
|
$
|
13.98
|
|
|
0.58
|
|
$
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-
|
|||
|
|
|
Average
|
|||
|
|
|
Grant-Date
|
|||
|
Shares
|
|
Fair Value
|
|||
Nonvested at December 31, 2016
|
66,050
|
|
|
$
|
27.04
|
|
Granted
|
33,000
|
|
|
36.26
|
|
|
Vested
|
(27,625
|
)
|
|
26.68
|
|
|
Forfeited
|
(3,225
|
)
|
|
32.36
|
|
|
Nonvested at December 31, 2017
|
68,200
|
|
|
$
|
31.39
|
|
Note 16.
|
Earnings per Share
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(dollars in thousands, except per share amounts)
|
|
|
|
|
|
||||||
Basic earnings per common share computation
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Weighted average shares outstanding
|
12,038,499
|
|
|
11,430,087
|
|
|
10,362,929
|
|
|||
Basic earnings per common share
|
$
|
1.55
|
|
|
$
|
1.78
|
|
|
$
|
2.42
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share computation
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Weighted average shares outstanding, included all dilutive potential shares
|
12,062,577
|
|
|
11,456,324
|
|
|
10,391,323
|
|
|||
Diluted earnings per common share
|
$
|
1.55
|
|
|
$
|
1.78
|
|
|
$
|
2.42
|
|
Note 17.
|
Regulatory Capital Requirements and Restrictions on Subsidiary Cash
|
|
Actual
|
|
For Capital Adequacy Purposes
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
(1)
|
|
Amount
|
|
Ratio
|
|||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
321,459
|
|
|
12.00
|
%
|
|
$
|
247,689
|
|
|
9.250
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital/risk weighted assets
|
293,359
|
|
|
10.96
|
|
|
194,135
|
|
|
7.250
|
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
269,566
|
|
|
10.07
|
|
|
153,969
|
|
|
5.750
|
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage capital/average assets
|
293,359
|
|
|
9.48
|
|
|
123,831
|
|
|
4.000
|
|
|
N/A
|
|
|
N/A
|
|
|||
MidWest
One
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
322,679
|
|
|
12.08
|
%
|
|
$
|
247,010
|
|
|
9.250
|
%
|
|
$
|
267,038
|
|
|
10.00
|
%
|
Tier 1 capital/risk weighted assets
|
294,620
|
|
|
11.03
|
|
|
193,603
|
|
|
7.250
|
|
|
213,631
|
|
|
8.00
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
294,620
|
|
|
11.03
|
|
|
153,547
|
|
|
5.750
|
|
|
173,575
|
|
|
6.50
|
|
|||
Tier 1 leverage capital/average assets
|
294,620
|
|
|
9.53
|
|
|
123,678
|
|
|
4.000
|
|
|
154,598
|
|
|
5.00
|
|
|||
At December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
280,396
|
|
|
11.65
|
%
|
|
$
|
207,661
|
|
|
8.625
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital/risk weighted assets
|
258,304
|
|
|
10.73
|
|
|
159,508
|
|
|
6.625
|
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
234,638
|
|
|
9.75
|
|
|
123,393
|
|
|
5.125
|
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage capital/average assets
|
258,304
|
|
|
8.75
|
|
|
118,040
|
|
|
4.000
|
|
|
N/A
|
|
|
N/A
|
|
|||
MidWest
One
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
286,959
|
|
|
11.96
|
%
|
|
$
|
206,892
|
|
|
8.625
|
%
|
|
$
|
239,875
|
|
|
10.00
|
%
|
Tier 1 capital/risk weighted assets
|
264,871
|
|
|
11.04
|
|
|
158,917
|
|
|
6.625
|
|
|
191,900
|
|
|
8.00
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
264,871
|
|
|
11.04
|
|
|
122,936
|
|
|
5.125
|
|
|
155,919
|
|
|
6.50
|
|
|||
Tier 1 leverage capital/average assets
|
264,871
|
|
|
8.98
|
|
|
118,000
|
|
|
4.000
|
|
|
147,500
|
|
|
5.00
|
|
Note 18.
|
Commitments and Contingencies
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Commitments to extend credit
|
$
|
563,305
|
|
|
$
|
473,725
|
|
Commitments to sell loans
|
856
|
|
|
4,241
|
|
||
Standby letters of credit
|
10,260
|
|
|
9,320
|
|
||
Total
|
$
|
574,421
|
|
|
$
|
487,286
|
|
Note 19.
|
Related Party Transactions
|
|
Year Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Balance, beginning
|
$
|
10,856
|
|
|
$
|
10,247
|
|
Net decrease due to change in related parties
|
—
|
|
|
(906
|
)
|
||
Advances
|
6,487
|
|
|
2,834
|
|
||
Collections
|
(3,212
|
)
|
|
(1,319
|
)
|
||
Balance, ending
|
$
|
14,131
|
|
|
$
|
10,856
|
|
Note 20.
|
Estimated Fair Value of Financial Instruments and Fair Value Measurements
|
•
|
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 December 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
|
$
|
15,626
|
|
|
$
|
—
|
|
|
$
|
15,626
|
|
|
$
|
—
|
|
State and political subdivisions
|
141,839
|
|
|
—
|
|
|
141,839
|
|
|
—
|
|
||||
Mortgage-backed securities
|
48,497
|
|
|
—
|
|
|
48,497
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
168,196
|
|
|
—
|
|
|
168,196
|
|
|
—
|
|
||||
Corporate debt securities
|
71,166
|
|
|
—
|
|
|
71,166
|
|
|
—
|
|
||||
Total available for sale debt securities
|
445,324
|
|
|
—
|
|
|
445,324
|
|
|
—
|
|
||||
Other equity securities
|
2,336
|
|
|
2,336
|
|
|
—
|
|
|
—
|
|
||||
Total securities available for sale
|
$
|
447,660
|
|
|
$
|
2,336
|
|
|
$
|
445,324
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
|
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 December 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
|
$
|
3,927
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,927
|
|
Other real estate owned
|
$
|
2,010
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,010
|
|
|
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
|
|
|
December 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
|
$
|
50,972
|
|
|
$
|
50,972
|
|
|
$
|
50,972
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for sale
|
447,660
|
|
|
447,660
|
|
|
2,336
|
|
|
445,324
|
|
|
—
|
|
|||||
Held to maturity
|
195,619
|
|
|
194,343
|
|
|
—
|
|
|
194,343
|
|
|
—
|
|
|||||
Total investment securities
|
643,279
|
|
|
642,003
|
|
|
2,336
|
|
|
639,667
|
|
|
—
|
|
|||||
Loans held for sale
|
856
|
|
|
871
|
|
|
—
|
|
|
—
|
|
|
871
|
|
|||||
Loans, net
|
2,258,636
|
|
|
2,256,726
|
|
|
—
|
|
|
2,256,726
|
|
|
—
|
|
|||||
Accrued interest receivable
|
14,732
|
|
|
14,732
|
|
|
14,732
|
|
|
—
|
|
|
—
|
|
|||||
Federal Home Loan Bank stock
|
11,324
|
|
|
11,324
|
|
|
—
|
|
|
11,324
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing demand
|
461,969
|
|
|
461,969
|
|
|
461,969
|
|
|
—
|
|
|
—
|
|
|||||
Interest-bearing checking
|
1,228,112
|
|
|
1,228,112
|
|
|
1,228,112
|
|
|
—
|
|
|
—
|
|
|||||
Savings
|
213,430
|
|
|
213,430
|
|
|
213,430
|
|
|
—
|
|
|
—
|
|
|||||
Certificates of deposit under $100,000
|
324,681
|
|
|
321,197
|
|
|
—
|
|
|
321,197
|
|
|
—
|
|
|||||
Certificates of deposit $100,000 and over
|
377,127
|
|
|
374,685
|
|
|
—
|
|
|
374,685
|
|
|
—
|
|
|||||
Total deposits
|
2,605,319
|
|
|
2,599,393
|
|
|
1,903,511
|
|
|
695,882
|
|
|
—
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
97,229
|
|
|
97,229
|
|
|
97,229
|
|
|
—
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
115,000
|
|
|
114,945
|
|
|
—
|
|
|
114,945
|
|
|
—
|
|
|||||
Junior subordinated notes issued to capital trusts
|
23,793
|
|
|
19,702
|
|
|
—
|
|
|
19,702
|
|
|
—
|
|
|||||
Long-term debt
|
12,500
|
|
|
12,500
|
|
|
—
|
|
|
12,500
|
|
|
—
|
|
|||||
Accrued interest payable
|
1,428
|
|
|
1,428
|
|
|
1,428
|
|
|
—
|
|
|
—
|
|
|
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 December 31, 2017
|
|
Valuation Techniques(s)
|
|
Unobservable Input
|
|
Range of Inputs
|
|
Weighted Average
|
||||
Collateral dependent impaired loans
|
$
|
3,927
|
|
|
Modified appraised value
|
|
Third party appraisal
|
|
NM *
|
|
NM *
|
|
NM *
|
|
|
|
|
|
Appraisal discount
|
|
NM *
|
|
NM *
|
|
NM *
|
||
Other real estate owned
|
$
|
2,010
|
|
|
Modified appraised value
|
|
Third party appraisal
|
|
NM *
|
|
NM *
|
|
NM *
|
|
|
|
|
|
Appraisal discount
|
|
NM *
|
|
NM *
|
|
NM *
|
Note 21.
|
Variable Interest Entities
|
Note 22.
|
Operating Segments
|
Note 23.
|
Branch Sales
|
Note 24.
|
Parent Company Only Financial Information
|
|
As of December 31,
|
||||||
|
2017
|
|
2016
|
||||
(in thousands)
|
|
|
|
||||
Balance Sheets
|
|
|
|
||||
Assets
|
|
|
|
||||
Cash
|
$
|
4,200
|
|
|
$
|
2,621
|
|
Investment in subsidiaries
|
366,672
|
|
|
336,937
|
|
||
Investment securities available for sale
|
392
|
|
|
326
|
|
||
Investment securities held to maturity
|
743
|
|
|
743
|
|
||
Income tax receivable
|
—
|
|
|
1,479
|
|
||
Bank-owned life insurance
|
4,872
|
|
|
4,746
|
|
||
Other assets
|
176
|
|
|
201
|
|
||
Total assets
|
$
|
377,055
|
|
|
$
|
347,053
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Junior subordinated notes issued to capital trusts
|
$
|
23,793
|
|
|
$
|
23,692
|
|
Long-term debt
|
12,500
|
|
|
17,500
|
|
||
Deferred income taxes
|
11
|
|
|
84
|
|
||
Other liabilities
|
447
|
|
|
321
|
|
||
Total liabilities
|
36,751
|
|
|
41,597
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Capital stock, preferred
|
—
|
|
|
—
|
|
||
Capital stock, common
|
12,463
|
|
|
11,713
|
|
||
Additional paid-in capital
|
187,486
|
|
|
163,667
|
|
||
Treasury stock
|
(5,121
|
)
|
|
(5,766
|
)
|
||
Retained earnings
|
148,078
|
|
|
136,975
|
|
||
Accumulated other comprehensive income
|
(2,602
|
)
|
|
(1,133
|
)
|
||
Total shareholders’ equity
|
340,304
|
|
|
305,456
|
|
||
Total liabilities and shareholders’ equity
|
$
|
377,055
|
|
|
$
|
347,053
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(in thousands)
|
|
|
|
|
|
||||||
Statements of Income
|
|
|
|
|
|
||||||
Dividends received from subsidiaries
|
$
|
6,500
|
|
|
$
|
12,508
|
|
|
$
|
53,511
|
|
Interest income and dividends on investment securities
|
47
|
|
|
31
|
|
|
30
|
|
|||
Interest and discount on loan pool participations
|
—
|
|
|
—
|
|
|
(69
|
)
|
|||
Investment securities gains
|
—
|
|
|
—
|
|
|
188
|
|
|||
Loss on sale of loan pool participations
|
—
|
|
|
—
|
|
|
(455
|
)
|
|||
Interest on debt
|
(1,406
|
)
|
|
(1,305
|
)
|
|
(1,135
|
)
|
|||
Bank-owned life insurance income
|
126
|
|
|
128
|
|
|
128
|
|
|||
Operating expenses
|
(2,281
|
)
|
|
(2,094
|
)
|
|
(5,361
|
)
|
|||
Income before income taxes and equity in subsidiaries’ undistributed income
|
2,986
|
|
|
9,268
|
|
|
46,837
|
|
|||
Income tax benefit
|
(1,137
|
)
|
|
(1,245
|
)
|
|
(1,951
|
)
|
|||
Income before equity in subsidiaries’ undistributed income (loss)
|
4,123
|
|
|
10,513
|
|
|
48,788
|
|
|||
Equity in subsidiaries’ undistributed income (loss)
|
14,576
|
|
|
9,878
|
|
|
(23,670
|
)
|
|||
Net income
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
(in thousands)
|
|
|
|
|
|
||||||
Statements of Cash Flows
|
|
|
|
|
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
18,699
|
|
|
$
|
20,391
|
|
|
$
|
25,118
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Undistributed (income) loss of subsidiaries, net of dividends and distributions
|
(14,576
|
)
|
|
(9,878
|
)
|
|
23,670
|
|
|||
Amortization of premium on junior subordinated notes issued to capital trusts
|
101
|
|
|
105
|
|
|
73
|
|
|||
Deferred income taxes, net, expense (benefit)
|
(1
|
)
|
|
(35
|
)
|
|
617
|
|
|||
Investment securities gain
|
—
|
|
|
—
|
|
|
(188
|
)
|
|||
Excess tax benefit from share-based award activity
|
(92
|
)
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
868
|
|
|
731
|
|
|
634
|
|
|||
Increase in cash value of bank-owned life insurance
|
(126
|
)
|
|
(128
|
)
|
|
(128
|
)
|
|||
(Increase) decrease in other assets
|
1,617
|
|
|
(751
|
)
|
|
646
|
|
|||
Increase (decrease) in other liabilities
|
13
|
|
|
8
|
|
|
(907
|
)
|
|||
Net cash provided by operating activities
|
6,503
|
|
|
10,443
|
|
|
49,535
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Proceeds from sales of available for sale securities
|
1
|
|
|
1
|
|
|
1,173
|
|
|||
Purchase of available for sale securities
|
(10
|
)
|
|
(9
|
)
|
|
(14
|
)
|
|||
Proceeds from maturities and calls of held to maturity securities
|
—
|
|
|
—
|
|
|
246
|
|
|||
Loan participation pools, net
|
—
|
|
|
—
|
|
|
1,964
|
|
|||
Net cash paid in business combination
|
—
|
|
|
—
|
|
|
(62,902
|
)
|
|||
Investment in subsidiary
|
(16,200
|
)
|
|
—
|
|
|
(3,000
|
)
|
|||
Net cash used in investing activities
|
(16,209
|
)
|
|
(8
|
)
|
|
(62,533
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from share-based award activity
|
100
|
|
|
14
|
|
|
158
|
|
|||
Taxes paid relating to net share settlement of equity awards
|
(114
|
)
|
|
—
|
|
|
—
|
|
|||
Redemption of subordinated note payable
|
—
|
|
|
—
|
|
|
(12,669
|
)
|
|||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
25,000
|
|
|||
Payments on long-term debt
|
(5,000
|
)
|
|
(5,000
|
)
|
|
(2,500
|
)
|
|||
Issuance of common stock
|
25,688
|
|
|
—
|
|
|
7,900
|
|
|||
Expenses incurred in stock issuance
|
(1,328
|
)
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
(8,061
|
)
|
|
(7,317
|
)
|
|
(6,344
|
)
|
|||
Net cash provided by (used in) financing activities
|
11,285
|
|
|
(12,303
|
)
|
|
11,545
|
|
|||
Net increase (decrease) in cash
|
1,579
|
|
|
(1,868
|
)
|
|
(1,453
|
)
|
|||
Cash Balance:
|
|
|
|
|
|
||||||
Beginning
|
2,621
|
|
|
4,489
|
|
|
5,942
|
|
|||
Ending
|
$
|
4,200
|
|
|
$
|
2,621
|
|
|
$
|
4,489
|
|
Note 25.
|
Subsequent Events
|
Note 26.
|
Quarterly Results of Operations (unaudited)
|
|
Three Months Ended
|
||||||||||||||
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
30,538
|
|
|
$
|
30,361
|
|
|
$
|
29,854
|
|
|
$
|
28,567
|
|
Interest expense
|
4,127
|
|
|
3,869
|
|
|
3,663
|
|
|
3,486
|
|
||||
Net interest income
|
26,411
|
|
|
26,492
|
|
|
26,191
|
|
|
25,081
|
|
||||
Provision for loan losses
|
10,669
|
|
|
4,384
|
|
|
1,240
|
|
|
1,041
|
|
||||
Noninterest income
|
5,534
|
|
|
5,916
|
|
|
5,383
|
|
|
5,537
|
|
||||
Noninterest expense
|
20,093
|
|
|
19,744
|
|
|
19,964
|
|
|
20,335
|
|
||||
Income before income taxes
|
1,183
|
|
|
8,280
|
|
|
10,370
|
|
|
9,242
|
|
||||
Income tax expense
|
2,773
|
|
|
1,938
|
|
|
3,136
|
|
|
2,529
|
|
||||
Net income
|
$
|
(1,590
|
)
|
|
$
|
6,342
|
|
|
$
|
7,234
|
|
|
$
|
6,713
|
|
Net income per common share - basic
|
$
|
(0.13
|
)
|
|
$
|
0.52
|
|
|
$
|
0.59
|
|
|
$
|
0.58
|
|
Net income per common share - diluted
|
$
|
(0.13
|
)
|
|
$
|
0.52
|
|
|
$
|
0.59
|
|
|
$
|
0.58
|
|
2016
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
27,914
|
|
|
$
|
27,891
|
|
|
$
|
28,038
|
|
|
$
|
28,485
|
|
Interest expense
|
3,384
|
|
|
3,310
|
|
|
3,098
|
|
|
2,930
|
|
||||
Net interest income
|
24,530
|
|
|
24,581
|
|
|
24,940
|
|
|
25,555
|
|
||||
Provision for loan losses
|
4,742
|
|
|
1,005
|
|
|
1,171
|
|
|
1,065
|
|
||||
Noninterest income
|
5,720
|
|
|
5,714
|
|
|
5,595
|
|
|
6,405
|
|
||||
Noninterest expense
|
21,106
|
|
|
20,439
|
|
|
22,815
|
|
|
23,446
|
|
||||
Income before income taxes
|
4,402
|
|
|
8,851
|
|
|
6,549
|
|
|
7,449
|
|
||||
Income tax expense
|
532
|
|
|
2,629
|
|
|
1,794
|
|
|
1,905
|
|
||||
Net income
|
$
|
3,870
|
|
|
$
|
6,222
|
|
|
$
|
4,755
|
|
|
$
|
5,544
|
|
Net income per common share - basic
|
$
|
0.34
|
|
|
$
|
0.54
|
|
|
$
|
0.42
|
|
|
$
|
0.49
|
|
Net income per common share - diluted
|
$
|
0.34
|
|
|
$
|
0.54
|
|
|
$
|
0.42
|
|
|
$
|
0.48
|
|
I
TEM
9.
|
C
HANGES IN AND
D
ISAGREEMENTS WITH
A
CCOUNTANTS ON
A
CCOUNTING AND
F
INANCIAL
D
ISCLOSURE
.
|
I
TEM
9A.
|
C
ONTROLS AND
P
ROCEDURES
.
|
I
TEM
9B.
|
O
THER
I
NFORMATION
.
|
I
TEM
10.
|
D
IRECTORS
, E
XECUTIVE
O
FFICERS AND
C
ORPORATE
G
OVERNANCE
.
|
I
TEM
11.
|
E
XECUTIVE
C
OMPENSATION
.
|
I
TEM
12.
|
S
ECURITY
O
WNERSHIP OF
C
ERTAIN
B
ENEFICIAL
O
WNERS AND
M
ANAGEMENT AND
R
ELATED
S
TOCKHOLDER
M
ATTERS
.
|
I
TEM
13.
|
C
ERTAIN
R
ELATIONSHIPS AND
R
ELATED
T
RANSACTIONS
,
AND
D
IRECTOR
I
NDEPENDENCE
.
|
I
TEM
14.
|
P
RINCIPAL
A
CCOUNTANT
F
EES AND
S
ERVICES
.
|
I
TEM
15.
|
E
XHIBITS AND
F
INANCIAL
S
TATEMENT
S
CHEDULES
.
|
Exhibit
|
|
|
|
|
Number
|
|
Description
|
|
Incorporated by Reference to:
|
|
|
|
|
|
|
Agreement and Plan of Merger, dated
|
|
Exhibit 2.1 to the Company’s Current Report on Form 8-K
|
|
|
|
November 20, 2014, between MidWest
One
Financial
|
|
filed with the SEC on November 21, 2014
|
|
|
Group, Inc. and Central Bancshares, Inc.+
|
|
|
|
|
|
|
|
|
Amended and Restated Articles of Incorporation of
|
|
Exhibit 3.3 to the Company’s Amendment No. 1 to
|
|
|
|
MidWest
One
Financial Group, Inc. filed with the
|
|
Registration Statement on Form S-4 (File No. 333-147628)
|
|
|
Secretary of State of the State of Iowa on March 14, 2008
|
|
filed with the SEC on January 14, 2008
|
|
|
|
|
|
|
Articles of Amendment (First Amendment) to the
|
|
Exhibit 3.1 to the Company’s Current Report on Form 8-K
|
|
|
|
Amended and Restated Articles of Incorporation of
|
|
filed with the SEC on January 23, 2009
|
|
|
MidWest
One
Financial Group, Inc. filed with the
|
|
|
|
|
Secretary of State of the State of Iowa on
|
|
|
|
|
January 23, 2009
|
|
|
|
|
|
|
|
|
Articles of Amendment (Second Amendment) to the
|
|
Exhibit 3.1 to the Company’s Current Report on Form 8-K
|
|
|
|
Amended and Restated Articles of Incorporation of
|
|
filed with the SEC on February 6, 2009
|
|
|
MidWest
One
Financial Group, Inc. filed with the
|
|
|
|
|
Secretary of State of the State of Iowa on
|
|
|
|
|
February 4, 2009 (containing the Certificate of
|
|
|
|
|
Designations for the Company’s Fixed Rate
|
|
|
|
|
Cumulative Perpetual Preferred Stock, Series A)
|
|
|
|
|
|
|
|
|
Articles of Amendment (Third Amendment) to the
|
|
Exhibit 3.1 to the Company’s Form 10-Q for the quarter
|
|
|
|
Amended and Restated Articles of Incorporation of
|
|
ended March 31, 2017, filed with the SEC on May 4, 2017
|
|
|
MidWest
One
Financial Group, Inc., filed with the Secretary
|
|
|
|
|
of State of the State of Iowa on April 21, 2017
|
|
|
|
|
|
|
|
|
Second Amended and Restated Bylaws of MidWest
One
|
|
Exhibit 3.1 to the Company’s Current Report on Form 8-K
|
|
|
|
Financial Group, Inc.
|
|
filed with the SEC on February 1, 2017
|
|
|
|
|
|
4.1
|
|
Reference is made to Exhibits 3.1 through 3.5 hereof
|
|
N/A
|
|
|
|
|
|
|
Shareholder Agreement, by and among MidWest
One
|
|
Exhibit 99.1 to the Company’s Current Report on Form 8-K
|
|
|
|
Financial Group, Inc., Riverbank Insurance Center, Inc.,
|
|
filed with the SEC on November 21, 2014
|
|
|
CBS LLC, John M. Morrison Revocable Trust #4 and
|
|
|
|
|
John M. Morrison, dated November 20, 2014
|
|
|
|
|
|
|
|
|
MidWest
One
Financial Group, Inc. Employee Stock
|
|
Exhibit 10.1 of former MidWest
One
Financial Group, Inc.’s
|
|
|
|
Ownership Plan and Trust (Restated as of January 1,
|
|
Form 10-K (File No. 000-24630) for the year ended
|
|
|
2006)*
|
|
December 31, 2006, filed with the SEC on March 23, 2007
|
|
|
|
|
|
|
ISB Financial Corp. (now known as MidWest
One
|
|
Appendix F of the Joint Proxy Statement-Prospectus
|
|
|
|
Financial Group, Inc.) 2008 Equity Incentive Plan*
|
|
constituting part of the Company’s Amendment No. 2 to
|
|
|
|
|
Registration Statement on Form S-4 (File No. 333-147628)
|
|
|
|
|
filed with the SEC on January 22, 2008
|
|
|
|
|
|
|
MidWest
One
Financial Group, Inc. 2017 Equity
|
|
Appendix A of the Company’s Definitive Proxy Statement on
|
|
|
|
Incentive Plan*
|
|
Schedule 14A filed with the SEC on March 10, 2017
|
|
|
|
|
|
Exhibit
|
|
|
|
|
Number
|
|
Description
|
|
Incorporated by Reference to:
|
|
|
|
|
|
|
Form of MidWest
One
Financial Group, Inc. 2017 Equity
|
|
Exhibit 4.7 to the Company’s Registration Statement on Form
|
|
|
|
Incentive Plan Incentive Stock Option Award Agreement*
|
|
S-8 (File No. 333-217718) filed with the SEC on May 5, 2017
|
|
|
|
|
|
|
Form of MidWestOne Financial Group, Inc. 2017 Equity
|
|
Exhibit 4.8 to the Company’s Registration Statement on Form
|
|
|
|
Incentive Plan Restricted Stock Unit Award Agreement*
|
|
S-8 (File No. 333-217718) filed with the SEC on May 5, 2017
|
|
|
|
|
|
|
Employment Agreement between MidWestOne Financial
|
|
Exhibit 10.1 to the Company’s Current Report on
|
|
|
|
Group, Inc. and Charles N. Funk, dated October 18, 2017*
|
|
Form 8-K filed with the SEC on October 18, 2017
|
|
|
|
|
|
|
Employment Agreement between MidWest
One
Financial
|
|
Exhibit 10.3 to the Company’s Current Report on
|
|
|
|
Group, Inc. and Kent L. Jehle, dated October 18, 2017*
|
|
Form 8-K filed with the SEC on October 18, 2017
|
|
|
|
|
|
|
Supplemental Retirement Agreement between Iowa State
|
|
Exhibit 10.13 of the Company’s Registration Statement on
|
|
|
|
Bank & Trust Company (now known as MidWest
One
|
|
Form S-4 (File No. 333-147628) filed with the SEC on
|
|
|
Bank) and Charles N. Funk, dated November 1, 2001*
|
|
November 27, 2007
|
|
|
|
|
|
|
Supplemental Retirement Agreement between Iowa State
|
|
Exhibit 10.16 of the Company’s Amendment No. 1 to
|
|
|
|
Bank & Trust Company (now known as MidWest
One
|
|
Registration Statement on Form S-4 (File No. 333-147628)
|
|
|
Bank) and Kent L. Jehle, dated January 1, 1998, as
|
|
filed with the SEC on January 14, 2008
|
|
|
amended by the First Amendment to the Supplemental
|
|
|
|
|
Retirement Agreement, dated January 1, 2003*
|
|
|
|
|
|
|
|
|
Second Supplemental Retirement Agreement between
|
|
Exhibit 10.17 of the Company’s Amendment No. 1 to
|
|
|
|
Iowa State Bank & Trust Company (now known as
|
|
Registration Statement on Form S-4 (File No. 333-147628)
|
|
|
MidWest
One
Bank) and Kent L. Jehle, dated January 1,
|
|
filed with the SEC on January 14, 2008
|
|
|
2002*
|
|
|
|
|
|
|
|
|
Employment Agreement between MidWestOne Financial
|
|
Exhibit 10.4 to the Company’s Current Report on Form 8-K
|
|
|
|
Group, Inc. and Katie Lorenson, dated October 18, 2017*
|
|
filed with the SEC on October 18, 2017.
|
|
|
|
|
|
|
Employment Agreement between MidWest
One
Financial
|
|
Exhibit 10.5 to the Company’s Current Report on
|
|
|
|
Group, Inc. and James M. Cantrell, dated October 18,
|
|
Form 8-K filed with the SEC on October 18, 2017
|
|
|
2017*
|
|
|
|
|
|
|
|
|
Employment Agreement between MidWest
One
Financial
|
|
Exhibit 10.1 to the Company’s Current Report on
|
|
|
|
Group, Inc. and Kurt Weise, dated December 12, 2014*
|
|
Form 8-K filed with the SEC on October 3, 2016
|
|
|
|
|
|
|
Letter Amendment to Employment Agreement between
|
|
Exhibit 10.2 to the Company’s Current Report on
|
|
|
|
MidWest
One
Financial Group, Inc. and Kurt Weise
|
|
Form 8-K filed with the SEC on October 3, 2016
|
|
|
effective as of September 30, 2016*
|
|
|
|
|
|
|
|
|
Employment Agreement between MidWest
One
Financial
|
|
Exhibit 10.2 to the Company’s Current Report on
|
|
|
|
Group, Inc. and Kevin Kramer, dated October 18, 2017*
|
|
Form 8-K filed with the SEC on October 18, 2017
|
|
|
|
|
|
|
Employment Agreement between MidWest
One
Financial
|
|
Exhibit 10.1 to the Company’s Current Report on Form 8-K
|
|
|
|
Group, Inc. and Mitch Cook, dated May 11, 2017*
|
|
filed with the SEC on May 15, 2017
|
|
|
|
|
|
|
Central Bank Supplemental Retirement Agreement 2008
|
|
Exhibit 10.19 to the Company’s Form 10-K for the year
|
|
|
|
Restatement between Central Bank (now known as
|
|
ended December 31, 2016 filed with the SEC on March 2,
|
|
|
MidWest
One
Bank) and Kurt Weise, dated December 30,
|
|
2017
|
|
|
2008*
|
|
|
I
TEM
16.
|
F
ORM
10-K S
UMMARY
.
|
|
|
M
ID
W
EST
O
NE
F
INANCIAL
G
ROUP
, I
NC
.
|
|
||
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|
Dated:
|
March 1, 2018
|
By:
|
|
/s/ C
HARLES
N. F
UNK
|
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|
Charles N. Funk
|
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|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
By:
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|
/s/ J
AMES
M. C
ANTRELL
|
|
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|
James M. Cantrell
|
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|
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|
Vice President and Interim Chief Financial Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ C
HARLES
N. F
UNK
|
|
President and Chief Executive Officer;
|
|
March 1, 2018
|
Charles N. Funk
|
|
Director (principal executive officer)
|
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|
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|
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|
|
Vice President
|
|
|
/s/ J
AMES
M. C
ANTRELL
|
|
and Interim Chief Financial Officer
|
|
March 1, 2018
|
James M. Cantrell
|
|
(principal financial officer and
|
|
|
|
|
principal accounting officer)
|
|
|
|
|
|
|
|
/s/ K
EVIN
W. M
ONSON
|
|
Chairman of the Board
|
|
March 1, 2018
|
Kevin W. Monson
|
|
|
|
|
|
|
|
|
|
/s/ R
ICHARD
R. D
ONOHUE
|
|
Director
|
|
March 1, 2018
|
Richard R. Donohue
|
|
|
|
|
|
|
|
|
|
/s/ M
ICHAEL
A. H
ATCH
|
|
Director
|
|
March 1, 2018
|
Michael A. Hatch
|
|
|
|
|
|
|
|
|
|
/s/ T
RACY
S. M
C
C
ORMICK
|
|
Director
|
|
March 1, 2018
|
Tracy S. McCormick
|
|
|
|
|
|
|
|
|
|
/s/ J
OHN
M. M
ORRISON
|
|
Director
|
|
March 1, 2018
|
John M. Morrison
|
|
|
|
|
|
|
|
|
|
/s/ R
ICHARD
J. S
CHWAB
|
|
Director
|
|
March 1, 2018
|
Richard J. Schwab
|
|
|
|
|
|
|
|
|
|
/s/ R
UTH
E. S
TANOCH
|
|
Director
|
|
March 1, 2018
|
Ruth E. Stanoch
|
|
|
|
|
/s/ D
OUGLAS
K. T
RUE
|
|
Director
|
|
March 1, 2018
|
Douglas K. True
|
|
|
|
|
|
|
|
|
|
/s/ K
URT
R. W
EISE
|
|
Director
|
|
March 1, 2018
|
Kurt R. Weise
|
|
|
|
|
|
|
|
|
|
/s/ S
TEPHEN
L. W
EST
|
|
Director
|
|
March 1, 2018
|
Stephen L. West
|
|
|
|
|
|
|
|
|
|
/s/ R. S
COTT
Z
AISER
|
|
Director
|
|
March 1, 2018
|
R. Scott Zaiser
|
|
|
|
|
Subsidiaries of the Company
|
|
Organized Under the Laws of
|
|
Percent Owned by the Company
|
MidWest
One
Bank
|
|
State of Iowa
|
|
100%
|
MidWest
One
Insurance Services, Inc.
|
|
State of Iowa
|
|
100%
|
MidWest
One
Statutory Trust II
|
|
State of Delaware
|
|
100% of common securities
|
Central Bancshares Capital Trust II
|
|
State of Delaware
|
|
100% of common securities
|
Barron Investment Capital Trust I
|
|
State of Delaware
|
|
100% of common securities
|
|
1)
|
I have reviewed this Annual Report on Form 10-K of MidWest
One
Financial Group, Inc.;
|
||
|
|
|
|
|
|
2)
|
Based on my knowledge, this Annual 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 Annual Report;
|
||
|
|
|
|
|
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this Annual 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 Annual 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 Annual Report is being prepared;
|
|
|
|
|
|
|
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
|
|
|
|
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
|
|
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable 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/ Charles N. Funk
|
|
Charles N. Funk
|
|
President and Chief Executive Officer
|
|
Date:
|
March 1, 2018
|
|
1)
|
I have reviewed this Annual Report on Form 10-K of MidWest
One
Financial Group, Inc.;
|
||
|
|
|
|
|
|
2)
|
Based on my knowledge, this Annual 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 Annual Report;
|
||
|
|
|
|
|
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this Annual 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 Annual 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 Annual Report is being prepared;
|
|
|
|
|
|
|
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
|
|
|
|
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
|
|
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable 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/ James M. Cantrell
|
|
James M. Cantrell
|
|
Vice President and Interim Chief Financial Officer
|
|
Date:
|
March 1, 2018
|
|
(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/ Charles N. Funk
|
|
Charles N. Funk
|
|
President and Chief Executive Officer
|
|
Date:
|
March 1, 2018
|
|
(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/ James M. Cantrell
|
|
James M. Cantrell
|
|
Vice President and Interim Chief Financial Officer
|
|
Date:
|
March 1, 2018
|