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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
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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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Trading Symbol(s)
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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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MOFG
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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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☐
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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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AFS
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Available for Sale
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FHLBDM
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Federal Home Loan Bank of Des Moines
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ALLL
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Allowance for Loan and Lease Losses
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FHLBC
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Federal Home Loan Bank of Chicago
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ASU
|
Accounting Standards Update
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FHLMC
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Federal Home Loan Mortgage Corporation
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ABTW
|
American Bank and Trust-Wisconsin of Cuba City, Wisconsin
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FRB
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Federal Reserve Bank
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ATM
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Automated Teller Machine
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FNMA
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Federal National Mortgage Association
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ATSB
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American Trust & Savings Bank of Dubuque, Iowa
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GAAP
|
U.S. Generally Accepted Accounting Principles
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Basel III Rules
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A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013
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GNMA
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Government National Mortgage Association
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BHCA
|
Bank Holding Company Act of 1956, as amended
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GLBA
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Gramm-Leach-Bliley Act of 1999
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BOLI
|
Bank-Owned Life Insurance
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HTM
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Held to Maturity
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CDARS
|
Certificate of Deposit Account Registry Service
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ICS
|
Insured Cash Sweep
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CECL
|
Current Expected Credit Loss
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LIBOR
|
The London Inter-bank Offered Rate, an interest-rate average calculated from estimates submitted by the leading banks in London
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CMO
|
Collateralized Mortgage Obligations
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MBS
|
Mortgage-Backed Securities
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CRA
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Community Reinvestment Act
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OTTI
|
Other-Than-Temporary Impairment
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
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PCD
|
Purchased Financial Assets With Credit Deterioration
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ECL
|
Expected Credit Losses
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PCI
|
Purchased Credit Impaired
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ESOP
|
Employee Stock Ownership Plan
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ROU
|
Right-of-Use
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EVE
|
Economic Value of Equity
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RPA
|
Credit Risk Participation Agreement
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FASB
|
Financial Accounting Standards Board
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SEC
|
U.S. Securities and Exchange Commission
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FDIC
|
Federal Deposit Insurance Corporation
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TDR
|
Troubled Debt Restructuring
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FHLB
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Federal Home Loan Bank
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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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the effects of interest rates, including on our net income and the value of our securities portfolio;
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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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changes in benchmark interest rates used to price our loans and deposits, including the expected elimination of LIBOR;
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•
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legislative and regulatory changes, including changes in banking, securities, trade and tax laws and regulations and their application by our regulators;
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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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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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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, financial technology companies, 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, political, 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, such as the implementation of CECL;
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•
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war or terrorist activities, widespread disease or pandemics, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets;
|
•
|
the effects of cyber-attacks;
|
•
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the imposition of tariffs or other domestic or international government policies impacting the value of agricultural or other products of our borrowers; and
|
•
|
other factors and risks described under “Risk Factors” herein.
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ITEM 1.
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BUSINESS.
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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
|
•
|
A leverage ratio of Tier 1 Capital to total adjusted average quarterly assets of 5% or greater.
|
ITEM 1A.
|
RISK FACTORS.
|
•
|
adversely affect the interest rates paid or received on, the revenue and expenses associated with, and the value of our floating-rate obligations, loans, securities, deposits, subordinated debentures, derivatives, and other financial instruments tied to LIBOR rates, or other securities or financial arrangements given LIBOR’s role in determining market interest rates globally;
|
•
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prompt inquiries or other actions from regulators with respect to our preparation and readiness for the replacement of LIBOR with an alternative reference rate;
|
•
|
result in disputes, litigation or other actions with counterparties regarding the interpretation and enforceability of certain fallback language, or lack of fallback language, in LIBOR-based instruments; and
|
•
|
require the transition to or development of appropriate systems and analytics to effectively transition our risk management processes from LIBOR-based products to those based on the applicable alternative pricing benchmark, such as SOFR.
|
•
|
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;
|
•
|
the prospective rate of earnings retention is inconsistent with the company’s capital needs and overall current and prospective financial condition; or
|
•
|
the company will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios.
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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.
|
•
|
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.
|
•
|
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 convertible preferred stock, which may have high dividend rates 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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ITEM 1B.
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UNRESOLVED STAFF COMMENTS.
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ITEM 2.
|
PROPERTIES.
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ITEM 3.
|
LEGAL PROCEEDINGS.
|
ITEM 4.
|
MINE SAFETY DISCLOSURES.
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
|
|
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Programs (2)
|
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Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (2)
|
||||||
October 1 - 31, 2019
|
|
19,102
|
|
|
$
|
29.65
|
|
|
19,102
|
|
|
$
|
8,995,688
|
|
November 1 - 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
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December 1 - 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
19,102
|
|
|
$
|
29.65
|
|
|
19,102
|
|
|
$
|
8,995,688
|
|
|
|
|
|
|
|
|
|
|
|
At
|
||||||||||||||||||||||
Index
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2019
|
||||||||||||
MidWestOne Financial Group, Inc.
|
$
|
100.00
|
|
|
$
|
107.69
|
|
|
$
|
136.07
|
|
|
$
|
123.69
|
|
|
$
|
93.86
|
|
|
$
|
140.64
|
|
Nasdaq Composite Index
|
100.00
|
|
|
106.96
|
|
|
116.45
|
|
|
150.96
|
|
|
146.67
|
|
|
200.49
|
|
||||||
SNL-Midwestern Banks Index
|
100.00
|
|
|
101.52
|
|
|
135.64
|
|
|
145.76
|
|
|
124.47
|
|
|
161.94
|
|
ITEM 6.
|
SELECTED FINANCIAL DATA.
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
•
|
Economic and business conditions;
|
•
|
Concentration of credit;
|
•
|
Lending management and staff;
|
•
|
Lending policies and procedures;
|
•
|
Collateral type and trends in value;
|
•
|
Nature and volume of the portfolio;
|
•
|
Trends in problem loans, loan delinquencies and nonaccrual loans;
|
•
|
Quality of internal loan review; and
|
•
|
External factors
|
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
|
Average Balance
|
|
Interest Income/ Expense
|
|
Average Yield/Cost
|
|
Average Balance (3)
|
|
Interest Income/Expense(3)
|
|
Average Yield/Cost
|
|
Average Balance(3)
|
|
Interest Income/Expense(3)
|
|
Average Yield/Cost
|
|||||||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans, including fees (1)(2)
|
$
|
3,157,127
|
|
|
$
|
164,948
|
|
|
5.22
|
%
|
|
$
|
2,354,354
|
|
|
$
|
112,233
|
|
|
4.77
|
%
|
|
$
|
2,201,364
|
|
|
$
|
104,096
|
|
|
4.73
|
%
|
Taxable investment securities
|
465,484
|
|
|
13,132
|
|
|
2.82
|
|
|
428,757
|
|
|
11,027
|
|
|
2.57
|
|
|
423,678
|
|
|
10,179
|
|
|
2.40
|
|
||||||
Tax-exempt investment securities (2)
|
204,375
|
|
|
7,177
|
|
|
3.51
|
|
|
207,605
|
|
|
7,342
|
|
|
3.54
|
|
|
217,650
|
|
|
9,536
|
|
|
4.38
|
|
||||||
Total securities held for investment (2)
|
669,859
|
|
|
20,309
|
|
|
3.03
|
|
|
636,362
|
|
|
18,369
|
|
|
2.89
|
|
|
641,328
|
|
|
19,715
|
|
|
3.07
|
|
||||||
Other
|
21,289
|
|
|
450
|
|
|
2.11
|
|
|
3,372
|
|
|
62
|
|
|
1.84
|
|
|
11,138
|
|
|
142
|
|
|
1.27
|
|
||||||
Total interest earning assets (2)
|
$
|
3,848,275
|
|
|
$
|
185,707
|
|
|
4.83
|
%
|
|
$
|
2,994,088
|
|
|
$
|
130,664
|
|
|
4.36
|
%
|
|
$
|
2,853,830
|
|
|
$
|
123,953
|
|
|
4.34
|
%
|
Other assets
|
352,765
|
|
|
|
|
|
|
255,630
|
|
|
|
|
|
|
243,666
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
4,201,040
|
|
|
|
|
|
|
$
|
3,249,718
|
|
|
|
|
|
|
$
|
3,097,496
|
|
|
|
|
|
|||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest checking deposits
|
$
|
806,624
|
|
|
$
|
4,723
|
|
|
0.59
|
%
|
|
$
|
672,069
|
|
|
$
|
2,907
|
|
|
0.43
|
%
|
|
$
|
641,636
|
|
|
$
|
2,188
|
|
|
0.34
|
%
|
Money market deposits
|
766,812
|
|
|
7,549
|
|
|
0.98
|
|
|
543,359
|
|
|
3,020
|
|
|
0.56
|
|
|
510,714
|
|
|
1,460
|
|
|
0.29
|
|
||||||
Savings deposits
|
329,199
|
|
|
1,092
|
|
|
0.33
|
|
|
214,244
|
|
|
254
|
|
|
0.12
|
|
|
205,204
|
|
|
215
|
|
|
0.10
|
|
||||||
Time deposits
|
873,978
|
|
|
16,563
|
|
|
1.90
|
|
|
723,830
|
|
|
11,150
|
|
|
1.54
|
|
|
674,757
|
|
|
7,626
|
|
|
1.13
|
|
||||||
Total interest bearing deposits
|
2,776,613
|
|
|
29,927
|
|
|
1.08
|
|
|
2,153,502
|
|
|
17,331
|
|
|
0.80
|
|
|
2,032,311
|
|
|
11,489
|
|
|
0.57
|
|
||||||
Short-term borrowings
|
124,956
|
|
|
1,847
|
|
|
1.48
|
|
|
105,094
|
|
|
1,315
|
|
|
1.25
|
|
|
87,763
|
|
|
424
|
|
|
0.48
|
|
||||||
Long-term debt
|
224,149
|
|
|
7,017
|
|
|
3.13
|
|
|
169,540
|
|
|
4,195
|
|
|
2.47
|
|
|
150,679
|
|
|
3,232
|
|
|
2.14
|
|
||||||
Total borrowed funds
|
349,105
|
|
|
8,864
|
|
|
2.54
|
|
|
274,634
|
|
|
5,510
|
|
|
2.01
|
|
|
238,442
|
|
|
3,656
|
|
|
1.53
|
|
||||||
Total interest-bearing liabilities
|
$
|
3,125,718
|
|
|
$
|
38,791
|
|
|
1.24
|
%
|
|
$
|
2,428,136
|
|
|
$
|
22,841
|
|
|
0.94
|
%
|
|
$
|
2,270,753
|
|
|
$
|
15,145
|
|
|
0.67
|
%
|
Demand deposits
|
586,100
|
|
|
|
|
|
|
455,223
|
|
|
|
|
|
|
471,170
|
|
|
|
|
|
||||||||||||
Other liabilities
|
37,204
|
|
|
|
|
|
|
20,625
|
|
|
|
|
|
|
20,607
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
452,018
|
|
|
|
|
|
|
345,734
|
|
|
|
|
|
|
334,966
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
4,201,040
|
|
|
|
|
|
|
$
|
3,249,718
|
|
|
|
|
|
|
$
|
3,097,496
|
|
|
|
|
|
|||||||||
Net interest spread (2)
|
|
|
|
|
3.59
|
%
|
|
|
|
|
|
3.42
|
%
|
|
|
|
|
|
3.67
|
%
|
||||||||||||
Interest income/earning assets (2)
|
$
|
3,848,275
|
|
|
$
|
185,707
|
|
|
4.83
|
%
|
|
$
|
2,994,088
|
|
|
$
|
130,664
|
|
|
4.36
|
%
|
|
$
|
2,853,830
|
|
|
$
|
123,953
|
|
|
4.34
|
%
|
Interest expense/earning assets (2)
|
$
|
3,848,275
|
|
|
$
|
38,791
|
|
|
1.01
|
%
|
|
$
|
2,994,088
|
|
|
$
|
22,841
|
|
|
0.76
|
%
|
|
$
|
2,853,830
|
|
|
$
|
15,145
|
|
|
0.53
|
%
|
Net interest income/margin (2)
|
|
|
$
|
146,916
|
|
|
3.82
|
%
|
|
|
|
$
|
107,823
|
|
|
3.60
|
%
|
|
|
|
$
|
108,808
|
|
|
3.81
|
%
|
||||||
Non-GAAP to GAAP Reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Tax Equivalent Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
|
|
|
$
|
1,785
|
|
|
|
|
|
|
$
|
1,040
|
|
|
|
|
|
|
$
|
1,730
|
|
|
|
|||||||||
Securities
|
|
|
1,481
|
|
|
|
|
|
|
1,515
|
|
|
|
|
|
|
3,297
|
|
|
|
||||||||||||
Total tax equivalent adjustment
|
|
|
3,266
|
|
|
|
|
|
|
2,555
|
|
|
|
|
|
|
5,027
|
|
|
|
||||||||||||
Net Interest Income
|
|
|
$
|
143,650
|
|
|
|
|
|
|
$
|
105,268
|
|
|
|
|
|
|
$
|
103,781
|
|
|
|
(1)
|
Non-accrual loans have been included in average loans, net of unearned income. Amortized net deferred loans and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net loans fees was $(316) thousand, $(407) thousand, and $(543) thousand for the years ended December 31, 2019, 2018, and 2017, respectively. Loan purchase discount accretion was $14.0 million, $2.7 million, and $4.8 million for the years ended December 31, 2019, 2018, and 2017, respectively.
|
(2)
|
Tax equivalent.
|
(3)
|
Reclassified to conform to the current period’s presentation.
|
|
Years Ended December 31, 2019, 2018, and 2017
|
||||||||||||||||||||||
|
Year 2019 to 2018 Change due to
|
|
Year 2018 to 2017 Change due to
|
||||||||||||||||||||
|
Volume
|
|
Rate/Yield
|
|
Net
|
|
Volume
|
|
Rate/Yield
|
|
Net
|
||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||
Increase (decrease) in interest income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans, including fees(1)
|
$
|
41,135
|
|
|
$
|
11,580
|
|
|
$
|
52,715
|
|
|
$
|
7,287
|
|
|
$
|
850
|
|
|
$
|
8,137
|
|
Taxable investment securities
|
988
|
|
|
1,117
|
|
|
2,105
|
|
|
123
|
|
|
725
|
|
|
848
|
|
||||||
Tax-exempt investment securities (1)
|
(113
|
)
|
|
(52
|
)
|
|
(165
|
)
|
|
(424
|
)
|
|
(1,770
|
)
|
|
(2,194
|
)
|
||||||
Total securities held for investment (1)
|
875
|
|
|
1,065
|
|
|
1,940
|
|
|
(301
|
)
|
|
(1,045
|
)
|
|
(1,346
|
)
|
||||||
Other
|
378
|
|
|
10
|
|
|
388
|
|
|
(126
|
)
|
|
46
|
|
|
(80
|
)
|
||||||
Change in interest income (1)
|
42,388
|
|
|
12,655
|
|
|
55,043
|
|
|
6,860
|
|
|
(149
|
)
|
|
6,711
|
|
||||||
Increase (decrease) in interest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest checking deposits
|
654
|
|
|
1,162
|
|
|
1,816
|
|
|
107
|
|
|
612
|
|
|
719
|
|
||||||
Money market deposits
|
1,596
|
|
|
2,933
|
|
|
4,529
|
|
|
99
|
|
|
1,461
|
|
|
1,560
|
|
||||||
Savings deposits
|
197
|
|
|
641
|
|
|
838
|
|
|
7
|
|
|
32
|
|
|
39
|
|
||||||
Time deposits
|
2,565
|
|
|
2,848
|
|
|
5,413
|
|
|
589
|
|
|
2,935
|
|
|
3,524
|
|
||||||
Total interest bearing deposits
|
5,012
|
|
|
7,584
|
|
|
12,596
|
|
|
802
|
|
|
5,040
|
|
|
5,842
|
|
||||||
Short-term borrowings
|
271
|
|
|
261
|
|
|
532
|
|
|
98
|
|
|
793
|
|
|
891
|
|
||||||
Long-term debt
|
1,547
|
|
|
1,275
|
|
|
2,822
|
|
|
432
|
|
|
531
|
|
|
963
|
|
||||||
Total borrowed funds
|
1,818
|
|
|
1,536
|
|
|
3,354
|
|
|
530
|
|
|
1,324
|
|
|
1,854
|
|
||||||
Change in interest expense
|
6,830
|
|
|
9,120
|
|
|
15,950
|
|
|
1,332
|
|
|
6,364
|
|
|
7,696
|
|
||||||
Change in net interest income (1)
|
$
|
35,558
|
|
|
$
|
3,535
|
|
|
$
|
39,093
|
|
|
$
|
5,528
|
|
|
$
|
(6,513
|
)
|
|
$
|
(985
|
)
|
Percentage increase (decrease) in net interest income over prior period
|
|
|
|
|
36.3
|
%
|
|
|
|
|
|
(0.9
|
)%
|
|
(1)
|
Tax equivalent.
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Investment services and trust activities
|
$
|
8,040
|
|
|
$
|
4,953
|
|
|
$
|
3,087
|
|
|
62.3
|
%
|
|
$
|
4,953
|
|
|
$
|
4,919
|
|
|
$
|
34
|
|
|
0.7
|
%
|
Service charges and fees
|
7,452
|
|
|
6,157
|
|
|
1,295
|
|
|
21.0
|
|
|
6,157
|
|
|
6,533
|
|
|
(376
|
)
|
|
(5.8
|
)
|
||||||
Card revenue
|
5,594
|
|
|
4,223
|
|
|
1,371
|
|
|
32.5
|
|
|
4,223
|
|
|
3,906
|
|
|
317
|
|
|
8.1
|
|
||||||
Loan revenue
|
3,789
|
|
|
3,622
|
|
|
167
|
|
|
4.6
|
|
|
3,622
|
|
|
3,421
|
|
|
201
|
|
|
5.9
|
|
||||||
Bank-owned life insurance
|
1,877
|
|
|
1,610
|
|
|
267
|
|
|
16.6
|
|
|
1,610
|
|
|
1,388
|
|
|
222
|
|
|
16.0
|
|
||||||
Insurance commissions
|
734
|
|
|
1,284
|
|
|
(550
|
)
|
|
(42.8
|
)
|
|
1,284
|
|
|
1,270
|
|
|
14
|
|
|
1.1
|
|
||||||
Investment securities gains, net
|
90
|
|
|
193
|
|
|
(103
|
)
|
|
(53.4
|
)
|
|
193
|
|
|
241
|
|
|
(48
|
)
|
|
(19.9
|
)
|
||||||
Other
|
3,670
|
|
|
1,173
|
|
|
2,497
|
|
|
212.9
|
|
|
1,173
|
|
|
1,073
|
|
|
100
|
|
|
9.3
|
|
||||||
Total noninterest income
|
$
|
31,246
|
|
|
$
|
23,215
|
|
|
$
|
8,031
|
|
|
34.6
|
%
|
|
$
|
23,215
|
|
|
$
|
22,751
|
|
|
$
|
464
|
|
|
2.0
|
%
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
Compensation and employee benefits
|
$
|
65,660
|
|
|
$
|
49,758
|
|
|
$
|
15,902
|
|
|
32.0
|
%
|
|
$
|
49,758
|
|
|
$
|
47,864
|
|
|
$
|
1,894
|
|
|
4.0
|
%
|
Occupancy expense of premises, net
|
8,647
|
|
|
7,597
|
|
|
1,050
|
|
|
13.8
|
|
|
7,597
|
|
|
7,382
|
|
|
215
|
|
|
2.9
|
|
||||||
Equipment
|
7,717
|
|
|
5,565
|
|
|
2,152
|
|
|
38.7
|
|
|
5,565
|
|
|
5,060
|
|
|
505
|
|
|
10.0
|
|
||||||
Legal and professional
|
8,049
|
|
|
4,641
|
|
|
3,408
|
|
|
73.4
|
|
|
4,641
|
|
|
3,962
|
|
|
679
|
|
|
17.1
|
|
||||||
Data processing
|
4,579
|
|
|
2,951
|
|
|
1,628
|
|
|
55.2
|
|
|
2,951
|
|
|
2,674
|
|
|
277
|
|
|
10.4
|
|
||||||
Marketing
|
3,789
|
|
|
2,660
|
|
|
1,129
|
|
|
42.4
|
|
|
2,660
|
|
|
2,449
|
|
|
211
|
|
|
8.6
|
|
||||||
Amortization of intangibles
|
5,906
|
|
|
2,296
|
|
|
3,610
|
|
|
157.2
|
|
|
2,296
|
|
|
3,125
|
|
|
(829
|
)
|
|
(26.5
|
)
|
||||||
FDIC insurance
|
690
|
|
|
1,533
|
|
|
(843
|
)
|
|
(55.0
|
)
|
|
1,533
|
|
|
1,265
|
|
|
268
|
|
|
21.2
|
|
||||||
Communications
|
1,701
|
|
|
1,353
|
|
|
348
|
|
|
25.7
|
|
|
1,353
|
|
|
1,333
|
|
|
20
|
|
|
1.5
|
|
||||||
Foreclosed assets, net
|
580
|
|
|
21
|
|
|
559
|
|
|
2,661.9
|
|
|
21
|
|
|
184
|
|
|
(163
|
)
|
|
(88.6
|
)
|
||||||
Other
|
10,217
|
|
|
4,840
|
|
|
5,377
|
|
|
111.1
|
|
|
4,840
|
|
|
4,825
|
|
|
15
|
|
|
0.3
|
|
||||||
Total noninterest expense
|
$
|
117,535
|
|
|
$
|
83,215
|
|
|
$
|
34,320
|
|
|
41.2
|
%
|
|
$
|
83,215
|
|
|
$
|
80,123
|
|
|
$
|
3,092
|
|
|
3.9
|
%
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|||||||
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
|
(dollars in thousands)
|
|||||||||||||
Assets
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
$
|
73,484
|
|
|
45,480
|
|
|
$
|
28,004
|
|
|
61.6
|
%
|
|
Securities held for investment
|
785,977
|
|
|
609,923
|
|
|
176,054
|
|
|
28.9
|
|
|||
Total loans, net
|
3,427,587
|
|
|
2,370,138
|
|
|
1,057,449
|
|
|
44.6
|
|
|||
Other assets
|
366,525
|
|
|
265,939
|
|
|
100,586
|
|
|
37.8
|
|
|||
Total assets
|
$
|
4,653,573
|
|
|
$
|
3,291,480
|
|
|
$
|
1,362,093
|
|
|
41.4
|
%
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|||||||
Total deposits
|
$
|
3,728,655
|
|
|
$
|
2,612,929
|
|
|
$
|
1,115,726
|
|
|
42.7
|
%
|
Total borrowings
|
371,009
|
|
|
300,148
|
|
|
70,861
|
|
|
23.6
|
|
|||
Other liabilities
|
44,927
|
|
|
21,336
|
|
|
23,591
|
|
|
110.6
|
|
|||
Total shareholders’ equity
|
508,982
|
|
|
357,067
|
|
|
151,915
|
|
|
42.5
|
|
|||
Total liabilities and shareholders’ equity
|
$
|
4,653,573
|
|
|
$
|
3,291,480
|
|
|
$
|
1,362,093
|
|
|
41.4
|
%
|
|
December 31,
|
||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Debt securities available for sale
|
(dollars in thousands)
|
||||||||||||||||
U.S. Government agencies and corporations
|
$
|
441
|
|
0.1
|
%
|
|
$
|
5,495
|
|
1.3
|
%
|
|
$
|
15,626
|
|
3.5
|
%
|
States and political subdivisions
|
257,205
|
|
32.7
|
|
|
121,901
|
|
29.4
|
|
|
141,839
|
|
31.9
|
|
|||
Mortgage-backed securities
|
43,530
|
|
5.5
|
|
|
50,653
|
|
12.2
|
|
|
48,497
|
|
10.9
|
|
|||
Collateralized mortgage obligations
|
292,946
|
|
37.3
|
|
|
169,928
|
|
41.1
|
|
|
168,196
|
|
37.7
|
|
|||
Corporate debt securities
|
191,855
|
|
24.4
|
|
|
66,124
|
|
16.0
|
|
|
71,166
|
|
16.0
|
|
|||
Fair value of debt securities available for sale
|
$
|
785,977
|
|
100.0
|
%
|
|
$
|
414,101
|
|
100.0
|
%
|
|
$
|
445,324
|
|
100.0
|
%
|
|
December 31,
|
|||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||
Debt securities held to maturity
|
(dollars in thousands)
|
|||||||||||||||
U.S. Government agencies and corporations
|
$
|
—
|
|
N/A
|
|
$
|
—
|
|
—
|
%
|
|
$
|
10,049
|
|
5.1
|
%
|
States and political subdivisions
|
—
|
|
N/A
|
|
131,177
|
|
67.0
|
|
|
126,413
|
|
64.6
|
|
|||
Mortgage-backed securities
|
—
|
|
N/A
|
|
11,016
|
|
5.6
|
|
|
1,906
|
|
1.0
|
|
|||
Collateralized mortgage obligations
|
—
|
|
N/A
|
|
18,527
|
|
9.5
|
|
|
22,115
|
|
11.3
|
|
|||
Corporate debt securities
|
—
|
|
N/A
|
|
35,102
|
|
17.9
|
|
|
35,136
|
|
18.0
|
|
|||
Amortized cost
|
$
|
—
|
|
N/A
|
|
$
|
195,822
|
|
100.0
|
%
|
|
$
|
195,619
|
|
100.0
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|
|
|
% of
|
|||||||||||||||
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Agricultural
|
$
|
140,446
|
|
|
4.1
|
%
|
|
$
|
96,956
|
|
|
4.1
|
%
|
|
$
|
105,512
|
|
|
4.6
|
%
|
|
$
|
113,343
|
|
|
5.2
|
%
|
|
$
|
121,714
|
|
|
5.7
|
%
|
Commercial and industrial
|
835,236
|
|
|
24.2
|
|
|
533,188
|
|
|
22.2
|
|
|
503,624
|
|
|
22.0
|
|
|
460,970
|
|
|
21.3
|
|
|
470,272
|
|
|
21.9
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction & development
|
298,077
|
|
|
8.6
|
|
|
217,617
|
|
|
9.1
|
|
|
165,276
|
|
|
7.3
|
|
|
126,685
|
|
|
5.9
|
|
|
120,753
|
|
|
5.6
|
|
|||||
Farmland
|
181,885
|
|
|
5.3
|
|
|
88,807
|
|
|
3.7
|
|
|
87,868
|
|
|
3.8
|
|
|
94,979
|
|
|
4.4
|
|
|
89,084
|
|
|
4.1
|
|
|||||
Multifamily
|
227,407
|
|
|
6.6
|
|
|
134,741
|
|
|
5.6
|
|
|
134,506
|
|
|
5.9
|
|
|
136,003
|
|
|
6.3
|
|
|
121,763
|
|
|
5.7
|
|
|||||
Commercial real estate-other
|
1,107,490
|
|
|
32.1
|
|
|
826,163
|
|
|
34.4
|
|
|
784,321
|
|
|
34.3
|
|
|
706,576
|
|
|
32.6
|
|
|
660,341
|
|
|
30.7
|
|
|||||
Total commercial real estate
|
1,814,859
|
|
|
52.6
|
|
|
1,267,328
|
|
|
52.8
|
|
|
1,171,971
|
|
|
51.3
|
|
|
1,064,243
|
|
|
49.2
|
|
|
991,941
|
|
|
46.1
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
One- to four-family first liens
|
407,418
|
|
|
11.8
|
|
|
341,830
|
|
|
14.3
|
|
|
352,226
|
|
|
15.4
|
|
|
372,233
|
|
|
17.2
|
|
|
428,233
|
|
|
19.9
|
|
|||||
One- to four-family junior liens
|
170,381
|
|
|
4.9
|
|
|
120,049
|
|
|
5.0
|
|
|
117,204
|
|
|
5.1
|
|
|
117,763
|
|
|
5.4
|
|
|
102,273
|
|
|
4.7
|
|
|||||
Total residential real estate
|
577,799
|
|
|
16.7
|
|
|
461,879
|
|
|
19.3
|
|
|
469,430
|
|
|
20.5
|
|
|
489,996
|
|
|
22.6
|
|
|
530,506
|
|
|
24.6
|
|
|||||
Consumer
|
82,926
|
|
|
2.4
|
|
|
39,428
|
|
|
1.6
|
|
|
36,158
|
|
|
1.6
|
|
|
36,591
|
|
|
1.7
|
|
|
37,509
|
|
|
1.7
|
|
|||||
Total loans
|
$
|
3,451,266
|
|
|
100.0
|
%
|
|
$
|
2,398,779
|
|
|
100.0
|
%
|
|
$
|
2,286,695
|
|
|
100.0
|
%
|
|
$
|
2,165,143
|
|
|
100.0
|
%
|
|
$
|
2,151,942
|
|
|
100.0
|
%
|
Total assets
|
$
|
4,653,573
|
|
|
|
|
$
|
3,291,480
|
|
|
|
|
$
|
3,212,271
|
|
|
|
|
$
|
3,079,575
|
|
|
|
|
$
|
2,979,975
|
|
|
|
|||||
Loans to total assets
|
|
|
74.2
|
%
|
|
|
|
72.9
|
%
|
|
|
|
71.2
|
%
|
|
|
|
70.3
|
%
|
|
|
|
72.2
|
%
|
|
|
|
|
|
|
|
|
|
Maturities Within
|
|
Maturities After
|
||||||||||||||||||||
|
|
|
Due In
|
|
|
|
|
|
One Year
|
|
One Year
|
||||||||||||||||||||
|
Due Within
|
|
One to
|
|
Due After
|
|
|
|
Fixed
|
|
Variable
|
|
Fixed
|
|
Variable
|
||||||||||||||||
|
One Year
|
|
Five Years
|
|
Five Years
|
|
Total
|
|
Rates
|
|
Rates
|
|
Rates
|
|
Rates
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Agricultural
|
$
|
91,376
|
|
|
$
|
39,908
|
|
|
$
|
9,162
|
|
|
$
|
140,446
|
|
|
$
|
25,231
|
|
|
$
|
66,145
|
|
|
$
|
36,986
|
|
|
$
|
12,084
|
|
Commercial and industrial
|
226,663
|
|
|
310,367
|
|
|
298,206
|
|
|
835,236
|
|
|
62,831
|
|
|
163,832
|
|
|
324,257
|
|
|
284,316
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction & development
|
87,714
|
|
|
152,790
|
|
|
57,573
|
|
|
298,077
|
|
|
49,526
|
|
|
38,188
|
|
|
108,280
|
|
|
102,083
|
|
||||||||
Farmland
|
29,124
|
|
|
97,396
|
|
|
55,365
|
|
|
181,885
|
|
|
26,267
|
|
|
2,857
|
|
|
111,840
|
|
|
40,921
|
|
||||||||
Multifamily
|
22,371
|
|
|
138,549
|
|
|
66,487
|
|
|
227,407
|
|
|
11,929
|
|
|
10,442
|
|
|
133,771
|
|
|
71,265
|
|
||||||||
Commercial real estate-other
|
87,936
|
|
|
620,264
|
|
|
399,290
|
|
|
1,107,490
|
|
|
78,080
|
|
|
9,856
|
|
|
599,931
|
|
|
419,623
|
|
||||||||
Total commercial real estate
|
227,145
|
|
|
1,008,999
|
|
|
578,715
|
|
|
1,814,859
|
|
|
165,802
|
|
|
61,343
|
|
|
953,822
|
|
|
633,892
|
|
||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
One- to four- family first liens
|
18,905
|
|
|
99,103
|
|
|
289,410
|
|
|
407,418
|
|
|
12,306
|
|
|
6,599
|
|
|
160,014
|
|
|
228,499
|
|
||||||||
One- to four- family junior liens
|
13,935
|
|
|
36,404
|
|
|
120,042
|
|
|
170,381
|
|
|
3,116
|
|
|
10,819
|
|
|
57,759
|
|
|
98,687
|
|
||||||||
Total residential real estate
|
32,840
|
|
|
135,507
|
|
|
409,452
|
|
|
577,799
|
|
|
15,422
|
|
|
17,418
|
|
|
217,773
|
|
|
327,186
|
|
||||||||
Consumer
|
11,500
|
|
|
62,180
|
|
|
9,246
|
|
|
82,926
|
|
|
5,416
|
|
|
6,084
|
|
|
69,731
|
|
|
1,695
|
|
||||||||
Total loans
|
$
|
589,524
|
|
|
$
|
1,556,961
|
|
|
$
|
1,304,781
|
|
|
$
|
3,451,266
|
|
|
$
|
274,702
|
|
|
$
|
314,822
|
|
|
$
|
1,602,569
|
|
|
$
|
1,259,173
|
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||
90 days or more past due and still accruing interest
|
$
|
136
|
|
|
$
|
365
|
|
|
$
|
207
|
|
|
$
|
485
|
|
|
$
|
284
|
|
Performing troubled debt restructured
|
4,372
|
|
|
5,284
|
|
|
9,815
|
|
|
7,377
|
|
|
7,547
|
|
|||||
Nonaccrual
|
41,481
|
|
|
19,924
|
|
|
14,784
|
|
|
20,668
|
|
|
4,012
|
|
|||||
Total nonperforming loans
|
45,989
|
|
|
25,573
|
|
|
24,806
|
|
|
28,530
|
|
|
11,843
|
|
|||||
Foreclosed assets, net
|
3,706
|
|
|
535
|
|
|
2,010
|
|
|
2,097
|
|
|
8,834
|
|
|||||
Total nonperforming assets
|
$
|
49,695
|
|
|
$
|
26,108
|
|
|
$
|
26,816
|
|
|
$
|
30,627
|
|
|
$
|
20,677
|
|
Nonperforming loans to loans held for investment, net of unearned income
|
1.33
|
%
|
|
1.07
|
%
|
|
1.08
|
%
|
|
1.32
|
%
|
|
0.55
|
%
|
|||||
Nonperforming assets to loans held for investment, net of unearned income
|
1.44
|
%
|
|
1.09
|
%
|
|
1.17
|
%
|
|
1.41
|
%
|
|
1.43
|
%
|
|
90 Days or More Past Due and Still Accruing Interest
|
|
Troubled Debt Restructure
|
|
Nonaccrual
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
$
|
—
|
|
|
$
|
2,361
|
|
|
$
|
2,893
|
|
|
$
|
5,254
|
|
Commercial and industrial
|
—
|
|
|
—
|
|
|
13,276
|
|
|
13,276
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction & development
|
—
|
|
|
—
|
|
|
1,494
|
|
|
1,494
|
|
||||
Farmland
|
—
|
|
|
—
|
|
|
10,402
|
|
|
10,402
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate-other
|
—
|
|
|
1,017
|
|
|
10,141
|
|
|
11,158
|
|
||||
Total commercial real estate
|
—
|
|
|
1,017
|
|
|
22,037
|
|
|
23,054
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
One- to four- family first liens
|
99
|
|
|
856
|
|
|
2,556
|
|
|
3,511
|
|
||||
One- to four- family junior liens
|
25
|
|
|
138
|
|
|
513
|
|
|
676
|
|
||||
Total residential real estate
|
124
|
|
|
994
|
|
|
3,069
|
|
|
4,187
|
|
||||
Consumer
|
12
|
|
|
—
|
|
|
206
|
|
|
218
|
|
||||
Total
|
$
|
136
|
|
|
$
|
4,372
|
|
|
$
|
41,481
|
|
|
$
|
45,989
|
|
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
$
|
—
|
|
|
$
|
2,502
|
|
|
$
|
1,622
|
|
|
$
|
4,124
|
|
Commercial and industrial
|
—
|
|
|
492
|
|
|
9,218
|
|
|
9,710
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Construction & development
|
—
|
|
|
—
|
|
|
99
|
|
|
99
|
|
||||
Farmland
|
—
|
|
|
—
|
|
|
2,751
|
|
|
2,751
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate-other
|
—
|
|
|
1,227
|
|
|
4,558
|
|
|
5,785
|
|
||||
Total commercial real estate
|
—
|
|
|
1,227
|
|
|
7,408
|
|
|
8,635
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
||||||||
One- to four- family first liens
|
341
|
|
|
1,063
|
|
|
1,049
|
|
|
2,453
|
|
||||
One- to four- family junior liens
|
24
|
|
|
—
|
|
|
465
|
|
|
489
|
|
||||
Total residential real estate
|
365
|
|
|
1,063
|
|
|
1,514
|
|
|
2,942
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
162
|
|
|
162
|
|
||||
Total
|
$
|
365
|
|
|
$
|
5,284
|
|
|
$
|
19,924
|
|
|
$
|
25,573
|
|
|
Year ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||
Loans held for investment, net of unearned income
|
$
|
3,451,266
|
|
|
$
|
2,398,779
|
|
|
$
|
2,286,695
|
|
|
$
|
2,165,143
|
|
|
$
|
2,151,942
|
|
Average loans held for investment, net of unearned income
|
$
|
3,157,127
|
|
|
$
|
2,354,354
|
|
|
$
|
2,201,364
|
|
|
$
|
2,161,376
|
|
|
$
|
1,962,846
|
|
Allowance for loan losses at beginning of period
|
$
|
29,307
|
|
|
$
|
28,059
|
|
|
$
|
21,850
|
|
|
$
|
19,427
|
|
|
$
|
16,363
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
1,130
|
|
|
$
|
656
|
|
|
$
|
1,202
|
|
|
$
|
1,204
|
|
|
$
|
245
|
|
Commercial and industrial
|
4,774
|
|
|
2,752
|
|
|
2,338
|
|
|
3,066
|
|
|
736
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction & development
|
—
|
|
|
—
|
|
|
257
|
|
|
734
|
|
|
193
|
|
|||||
Farmland
|
650
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate-other
|
887
|
|
|
2,901
|
|
|
7,674
|
|
|
197
|
|
|
660
|
|
|||||
Total commercial real estate
|
1,537
|
|
|
2,901
|
|
|
7,931
|
|
|
931
|
|
|
853
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
One- to four- family first liens
|
61
|
|
|
83
|
|
|
250
|
|
|
462
|
|
|
653
|
|
|||||
One- to four- family junior liens
|
168
|
|
|
30
|
|
|
55
|
|
|
320
|
|
|
87
|
|
|||||
Total residential real estate
|
229
|
|
|
113
|
|
|
305
|
|
|
782
|
|
|
740
|
|
|||||
Consumer
|
720
|
|
|
618
|
|
|
257
|
|
|
98
|
|
|
48
|
|
|||||
Total charge-offs
|
$
|
8,390
|
|
|
$
|
7,040
|
|
|
$
|
12,033
|
|
|
$
|
6,081
|
|
|
$
|
2,622
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
$
|
32
|
|
|
$
|
67
|
|
|
$
|
187
|
|
|
$
|
33
|
|
|
$
|
1
|
|
Commercial and industrial
|
195
|
|
|
291
|
|
|
232
|
|
|
124
|
|
|
383
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction & development
|
6
|
|
|
60
|
|
|
167
|
|
|
54
|
|
|
—
|
|
|||||
Farmland
|
202
|
|
|
—
|
|
|
24
|
|
|
1
|
|
|
4
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate-other
|
103
|
|
|
230
|
|
|
100
|
|
|
137
|
|
|
3
|
|
|||||
Total commercial real estate
|
311
|
|
|
290
|
|
|
291
|
|
|
192
|
|
|
7
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
One- to four- family first liens
|
47
|
|
|
139
|
|
|
24
|
|
|
82
|
|
|
131
|
|
|||||
One- to four- family junior liens
|
58
|
|
|
149
|
|
|
156
|
|
|
75
|
|
|
12
|
|
|||||
Total residential real estate
|
105
|
|
|
288
|
|
|
180
|
|
|
157
|
|
|
143
|
|
|||||
Consumer
|
361
|
|
|
52
|
|
|
18
|
|
|
15
|
|
|
20
|
|
|||||
Total recoveries
|
$
|
1,004
|
|
|
$
|
988
|
|
|
$
|
908
|
|
|
$
|
521
|
|
|
$
|
554
|
|
Net loans charged off
|
$
|
7,386
|
|
|
$
|
6,052
|
|
|
$
|
11,125
|
|
|
$
|
5,560
|
|
|
$
|
2,068
|
|
Provision for loan losses
|
7,158
|
|
|
7,300
|
|
|
17,334
|
|
|
7,983
|
|
|
5,132
|
|
|||||
Allowance for loan losses at end of period
|
$
|
29,079
|
|
|
$
|
29,307
|
|
|
$
|
28,059
|
|
|
$
|
21,850
|
|
|
$
|
19,427
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loans charged off to average loans
|
0.23
|
%
|
|
0.26
|
%
|
|
0.51
|
%
|
|
0.26
|
%
|
|
0.11
|
%
|
|||||
Allowance for loan losses to total loans at end of period
|
0.84
|
%
|
|
1.22
|
%
|
|
1.23
|
%
|
|
1.01
|
%
|
|
0.90
|
%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
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
|
$
|
3,748
|
|
|
4.1
|
%
|
|
$
|
3,637
|
|
|
4.1
|
%
|
|
$
|
2,790
|
|
|
4.6
|
%
|
|
$
|
2,003
|
|
|
5.2
|
%
|
|
$
|
1,396
|
|
|
5.7
|
%
|
Commercial and industrial
|
8,394
|
|
|
24.2
|
|
|
7,478
|
|
|
22.2
|
|
|
8,518
|
|
|
22.0
|
|
|
6,274
|
|
|
21.3
|
|
|
5,369
|
|
|
21.9
|
|
|||||
Commercial real estate
|
13,804
|
|
|
52.6
|
|
|
15,635
|
|
|
52.8
|
|
|
13,637
|
|
|
51.3
|
|
|
9,860
|
|
|
49.2
|
|
|
8,384
|
|
|
46.1
|
|
|||||
Residential real estate
|
2,685
|
|
|
16.7
|
|
|
2,349
|
|
|
19.3
|
|
|
2,870
|
|
|
20.5
|
|
|
3,458
|
|
|
22.6
|
|
|
3,876
|
|
|
24.6
|
|
|||||
Consumer
|
448
|
|
|
2.4
|
|
|
208
|
|
|
1.6
|
|
|
244
|
|
|
1.6
|
|
|
255
|
|
|
1.7
|
|
|
402
|
|
|
1.7
|
|
|||||
Total
|
$
|
29,079
|
|
|
100.0
|
%
|
|
$
|
29,307
|
|
|
100.0
|
%
|
|
$
|
28,059
|
|
|
100.0
|
%
|
|
$
|
21,850
|
|
|
100.0
|
%
|
|
$
|
19,427
|
|
|
100.0
|
%
|
•
|
Initial forecast - using a period of one year using forward-looking economic scenarios of expected losses.
|
•
|
Historical loss forecast - for a period incorporating the remaining contractual life, adjusted for prepayments, and the changes in various economic variables during representative historical and recessionary periods.
|
•
|
Reversion period - using one and a half years, which links the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date.
|
•
|
Discounted cash flows (DCF) calculation - using the items above to estimate the lifetime credit losses for each portfolio and losses for loans modified as a TDR.
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
586,100
|
|
|
17.4
|
%
|
|
NA
|
|
|
$
|
455,223
|
|
|
17.5
|
%
|
|
NA
|
|
|
$
|
471,170
|
|
|
18.8
|
%
|
|
NA
|
|
|
$
|
512,383
|
|
|
21.0
|
%
|
|
NA
|
|
|
$
|
488,312
|
|
|
21.4
|
%
|
|
NA
|
|
Interest-bearing checking and money market
|
1,573,436
|
|
|
46.8
|
|
|
0.78
|
%
|
|
1,215,428
|
|
|
46.6
|
|
|
0.49
|
%
|
|
1,152,350
|
|
|
46.0
|
|
|
0.32
|
%
|
|
1,087,757
|
|
|
44.5
|
|
|
0.29
|
%
|
|
859,945
|
|
|
37.8
|
|
|
0.31
|
%
|
|||||
Savings
|
329,199
|
|
|
9.8
|
|
|
0.33
|
|
|
214,244
|
|
|
8.2
|
|
|
0.12
|
|
|
205,204
|
|
|
8.2
|
|
|
0.10
|
|
|
195,237
|
|
|
8.0
|
|
|
0.14
|
|
|
279,230
|
|
|
12.3
|
|
|
0.13
|
|
|||||
Certificates of deposit
|
873,978
|
|
|
26.0
|
|
|
1.90
|
|
|
723,830
|
|
|
27.7
|
|
|
1.54
|
|
|
674,757
|
|
|
27.0
|
|
|
1.13
|
|
|
649,986
|
|
|
26.5
|
|
|
0.92
|
|
|
648,516
|
|
|
28.5
|
|
|
0.75
|
|
|||||
Total deposits
|
$
|
3,362,713
|
|
|
100.0
|
%
|
|
0.89
|
%
|
|
$
|
2,608,725
|
|
|
100.0
|
%
|
|
0.66
|
%
|
|
$
|
2,503,481
|
|
|
100.0
|
%
|
|
0.46
|
%
|
|
$
|
2,445,363
|
|
|
100.0
|
%
|
|
0.38
|
%
|
|
$
|
2,276,003
|
|
|
100.0
|
%
|
|
0.35
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
|
Weighted
|
|
|
|
Weighted
|
|
|
|
Weighted
|
|||||||||
|
Balance
|
|
Average Rate
|
|
Balance
|
|
Average Rate
|
|
Balance
|
|
Average Rate
|
|||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
Federal funds purchased, repurchase agreements, and FHLB overnight advances
|
$
|
139,349
|
|
|
1.17
|
%
|
|
$
|
131,422
|
|
|
1.70
|
%
|
|
$
|
97,229
|
|
|
0.47
|
%
|
Junior subordinated notes issued to capital trusts
|
41,587
|
|
|
3.85
|
|
|
23,888
|
|
|
4.97
|
|
|
23,793
|
|
|
4.00
|
|
|||
Subordinated debentures
|
10,899
|
|
|
6.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
FHLB borrowings
|
145,700
|
|
|
2.25
|
|
|
136,000
|
|
|
2.45
|
|
|
115,000
|
|
|
1.67
|
|
|||
Other long-term debt
|
32,250
|
|
|
3.44
|
|
|
7,500
|
|
|
3.78
|
|
|
12,500
|
|
|
2.85
|
|
|||
Total
|
$
|
369,785
|
|
|
2.25
|
%
|
|
$
|
298,810
|
|
|
2.35
|
%
|
|
$
|
248,522
|
|
|
1.48
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Federal funds purchased, repurchase agreements, and FHLB overnight advances
|
$
|
159,236
|
|
|
$
|
131,420
|
|
|
$
|
124,952
|
|
FHLB borrowings
|
160,755
|
|
|
148,000
|
|
|
145,000
|
|
|||
Junior subordinated notes issued to capital trusts
|
44,030
|
|
|
23,888
|
|
|
23,793
|
|
|||
Subordinated note
|
10,903
|
|
|
—
|
|
|
—
|
|
|||
Other long-term debt
|
41,250
|
|
|
12,500
|
|
|
17,500
|
|
|||
Total
|
$
|
416,174
|
|
|
$
|
315,808
|
|
|
$
|
311,245
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|||||||||
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
Federal funds purchased, repurchase agreements, and FHLB overnight advances
|
$
|
124,956
|
|
|
1.46
|
%
|
|
$
|
105,094
|
|
|
1.24
|
%
|
|
$
|
87,763
|
|
|
0.47
|
%
|
FHLB borrowings
|
151,764
|
|
|
2.30
|
|
|
133,814
|
|
|
1.95
|
|
|
110,000
|
|
|
1.67
|
|
|||
Junior subordinated notes issued to capital trusts
|
35,956
|
|
|
5.15
|
|
|
23,841
|
|
|
4.97
|
|
|
23,743
|
|
|
4.00
|
|
|||
Subordinated note
|
7,304
|
|
|
6.31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other long-term debt
|
27,844
|
|
|
3.97
|
|
|
10,596
|
|
|
3.77
|
|
|
15,596
|
|
|
2.75
|
|
|||
Total
|
$
|
347,824
|
|
|
2.51
|
%
|
|
$
|
273,345
|
|
|
2.01
|
%
|
|
$
|
237,102
|
|
|
1.53
|
%
|
|
|
|
Less than
|
|
1 to 3
|
|
3 to 5
|
|
More than
|
||||||||||
Contractual Obligations
|
Total
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Time certificates of deposit
|
$
|
953,446
|
|
|
$
|
678,107
|
|
|
$
|
242,832
|
|
|
$
|
31,670
|
|
|
$
|
837
|
|
Federal funds purchased, repurchase agreements, and FHLB overnight advances
|
139,349
|
|
|
139,349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
FHLB borrowings
|
145,400
|
|
|
54,400
|
|
|
74,000
|
|
|
17,000
|
|
|
—
|
|
|||||
Junior subordinated notes issued to capital trusts
|
41,587
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,587
|
|
|||||
Subordinated debentures
|
10,899
|
|
|
—
|
|
|
—
|
|
|
10,899
|
|
|
—
|
|
|||||
Other long-term debt
|
32,250
|
|
|
9,500
|
|
|
14,000
|
|
|
8,750
|
|
|
—
|
|
|||||
Noncancellable operating leases and capital lease obligations
|
8,512
|
|
|
1,345
|
|
|
2,522
|
|
|
2,088
|
|
|
2,557
|
|
|||||
Total
|
$
|
1,331,443
|
|
|
$
|
882,701
|
|
|
$
|
333,354
|
|
|
$
|
70,407
|
|
|
$
|
44,981
|
|
|
|
|
Less than
|
|
1 to 3
|
|
3 to 5
|
|
More than
|
||||||||||
Contractual obligations
|
Total
|
|
1 year
|
|
years
|
|
years
|
|
5 years
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Commitments to extend credit
|
$
|
859,212
|
|
|
$
|
450,341
|
|
|
$
|
121,393
|
|
|
$
|
77,787
|
|
|
$
|
209,691
|
|
Commitments to sell loans
|
5,400
|
|
|
5,400
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
36,192
|
|
|
32,956
|
|
|
3,011
|
|
|
179
|
|
|
46
|
|
|||||
Total
|
$
|
900,804
|
|
|
$
|
488,697
|
|
|
$
|
124,404
|
|
|
$
|
77,966
|
|
|
$
|
209,737
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
(dollars in thousands)
|
|
|
|
|
|
||||||
Cash and due from banks
|
$
|
67,174
|
|
|
$
|
43,787
|
|
|
$
|
44,818
|
|
Interest-bearing deposits
|
6,112
|
|
|
1,693
|
|
|
5,474
|
|
|||
Federal funds sold
|
198
|
|
|
—
|
|
|
680
|
|
|||
Total
|
$
|
73,484
|
|
|
$
|
45,480
|
|
|
$
|
50,972
|
|
Percentage of average total assets
|
1.7
|
%
|
|
1.4
|
%
|
|
1.6
|
%
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
•
|
Federal funds lines;
|
•
|
FHLB borrowings;
|
•
|
Brokered deposits;
|
•
|
Brokered repurchase agreements; and
|
•
|
Federal Reserve Bank Discount Window.
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
ASSETS
|
(dollars in thousands)
|
||||||
Cash and due from banks
|
$
|
67,174
|
|
|
$
|
43,787
|
|
Interest earning deposits in banks
|
6,112
|
|
|
1,693
|
|
||
Federal funds sold
|
198
|
|
|
—
|
|
||
Total cash and cash equivalents
|
73,484
|
|
|
45,480
|
|
||
Debt securities available for sale at fair value
|
785,977
|
|
|
414,101
|
|
||
Held to maturity securities at amortized cost (fair value of $0 and $192,564)
|
—
|
|
|
195,822
|
|
||
Total securities held for investment
|
785,977
|
|
|
609,923
|
|
||
Loans held for sale
|
5,400
|
|
|
666
|
|
||
Gross loans held for investment
|
3,469,236
|
|
|
2,405,001
|
|
||
Unearned income, net
|
(17,970
|
)
|
|
(6,222
|
)
|
||
Loans held for investment, net of unearned income
|
3,451,266
|
|
|
2,398,779
|
|
||
Allowance for loan losses
|
(29,079
|
)
|
|
(29,307
|
)
|
||
Total loans held for investment, net
|
3,422,187
|
|
|
2,369,472
|
|
||
Premises and equipment, net
|
90,723
|
|
|
75,773
|
|
||
Goodwill
|
91,918
|
|
|
64,654
|
|
||
Other intangible assets, net
|
32,218
|
|
|
9,875
|
|
||
Foreclosed assets, net
|
3,706
|
|
|
535
|
|
||
Other assets
|
147,960
|
|
|
115,102
|
|
||
Total assets
|
$
|
4,653,573
|
|
|
$
|
3,291,480
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
||||
Noninterest bearing deposits
|
$
|
662,209
|
|
|
$
|
439,133
|
|
Interest bearing deposits
|
3,066,446
|
|
|
2,173,796
|
|
||
Total deposits
|
3,728,655
|
|
|
2,612,929
|
|
||
Short-term borrowings
|
139,349
|
|
|
131,422
|
|
||
Long-term debt
|
231,660
|
|
|
168,726
|
|
||
Other liabilities
|
44,927
|
|
|
21,336
|
|
||
Total liabilities
|
4,144,591
|
|
|
2,934,413
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 18)
|
|
|
|
||||
|
|
|
|
||||
Shareholders' equity
|
|
|
|
||||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 12,463,481; outstanding shares of 16,162,176 and 12,180,015
|
16,581
|
|
|
12,463
|
|
||
Additional paid-in capital
|
297,390
|
|
|
187,813
|
|
||
Retained earnings
|
201,105
|
|
|
168,951
|
|
||
Treasury stock at cost, 418,841 and 283,466
|
(10,466
|
)
|
|
(6,499
|
)
|
||
Accumulated other comprehensive income (loss)
|
4,372
|
|
|
(5,661
|
)
|
||
Total shareholders' equity
|
508,982
|
|
|
357,067
|
|
||
Total liabilities and shareholders' equity
|
$
|
4,653,573
|
|
|
$
|
3,291,480
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||
Interest income
|
|
|
|
|
|
|
||||||
Loans, including fees
|
|
$
|
163,163
|
|
|
$
|
111,193
|
|
|
$
|
102,366
|
|
Taxable investment securities
|
|
13,132
|
|
|
11,027
|
|
|
10,179
|
|
|||
Tax-exempt investment securities
|
|
5,696
|
|
|
5,827
|
|
|
6,239
|
|
|||
Other
|
|
450
|
|
|
62
|
|
|
142
|
|
|||
Total interest income
|
|
182,441
|
|
|
128,109
|
|
|
118,926
|
|
|||
Interest expense
|
|
|
|
|
|
|
||||||
Deposits
|
|
29,927
|
|
|
17,331
|
|
|
11,489
|
|
|||
Short-term borrowings
|
|
1,847
|
|
|
1,315
|
|
|
424
|
|
|||
Long-term debt
|
|
7,017
|
|
|
4,195
|
|
|
3,232
|
|
|||
Total interest expense
|
|
38,791
|
|
|
22,841
|
|
|
15,145
|
|
|||
Net interest income
|
|
143,650
|
|
|
105,268
|
|
|
103,781
|
|
|||
Provision for loan losses
|
|
7,158
|
|
|
7,300
|
|
|
17,334
|
|
|||
Net interest income after provision for loan losses
|
|
136,492
|
|
|
97,968
|
|
|
86,447
|
|
|||
Noninterest income
|
|
|
|
|
|
|
||||||
Investment services and trust activities
|
|
8,040
|
|
|
4,953
|
|
|
4,919
|
|
|||
Service charges and fees
|
|
7,452
|
|
|
6,157
|
|
|
6,533
|
|
|||
Card revenue
|
|
5,594
|
|
|
4,223
|
|
|
3,906
|
|
|||
Loan revenue
|
|
3,789
|
|
|
3,622
|
|
|
3,421
|
|
|||
Bank-owned life insurance
|
|
1,877
|
|
|
1,610
|
|
|
1,388
|
|
|||
Insurance commissions
|
|
734
|
|
|
1,284
|
|
|
1,270
|
|
|||
Investment securities gains, net
|
|
90
|
|
|
193
|
|
|
241
|
|
|||
Other
|
|
3,670
|
|
|
1,173
|
|
|
1,073
|
|
|||
Total noninterest income
|
|
31,246
|
|
|
23,215
|
|
|
22,751
|
|
|||
Noninterest expense
|
|
|
|
|
|
|
||||||
Compensation and employee benefits
|
|
65,660
|
|
|
49,758
|
|
|
47,864
|
|
|||
Occupancy expense of premises, net
|
|
8,647
|
|
|
7,597
|
|
|
7,382
|
|
|||
Equipment
|
|
7,717
|
|
|
5,565
|
|
|
5,060
|
|
|||
Legal and professional
|
|
8,049
|
|
|
4,641
|
|
|
3,962
|
|
|||
Data processing
|
|
4,579
|
|
|
2,951
|
|
|
2,674
|
|
|||
Marketing
|
|
3,789
|
|
|
2,660
|
|
|
2,449
|
|
|||
Amortization of intangibles
|
|
5,906
|
|
|
2,296
|
|
|
3,125
|
|
|||
FDIC insurance
|
|
690
|
|
|
1,533
|
|
|
1,265
|
|
|||
Communications
|
|
1,701
|
|
|
1,353
|
|
|
1,333
|
|
|||
Foreclosed assets, net
|
|
580
|
|
|
21
|
|
|
184
|
|
|||
Other
|
|
10,217
|
|
|
4,840
|
|
|
4,825
|
|
|||
Total noninterest expense
|
|
117,535
|
|
|
83,215
|
|
|
80,123
|
|
|||
Income before income tax expense
|
|
50,203
|
|
|
37,968
|
|
|
29,075
|
|
|||
Income tax expense
|
|
6,573
|
|
|
7,617
|
|
|
10,376
|
|
|||
Net income
|
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
2.93
|
|
|
$
|
2.48
|
|
|
$
|
1.55
|
|
Diluted
|
|
$
|
2.93
|
|
|
$
|
2.48
|
|
|
$
|
1.55
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in thousands)
|
||||||||||
Net income
|
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
||||||
Unrealized net holding gains (losses) on debt securities available for sale arising
during the period
|
|
13,663
|
|
|
(3,865
|
)
|
|
(1,470
|
)
|
|||
Reclassification adjustment for net gains included in net income
|
|
(87
|
)
|
|
(197
|
)
|
|
(188
|
)
|
|||
Income tax (expense) benefit
|
|
(3,543
|
)
|
|
1,060
|
|
|
654
|
|
|||
Unrealized net gains (losses) on debt securities available for sale, net of
reclassification adjustment
|
|
10,033
|
|
|
(3,002
|
)
|
|
(1,004
|
)
|
|||
Other comprehensive income (loss), net of tax
|
|
$
|
10,033
|
|
|
$
|
(3,002
|
)
|
|
$
|
(1,004
|
)
|
Comprehensive income
|
|
$
|
53,663
|
|
|
$
|
27,349
|
|
|
$
|
17,695
|
|
|
|
Common Stock
|
|
|
|
|
|
Accumulated
|
|
|
||||||||||||||
|
|
Par
Value
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Balance at December 31, 2016
|
|
$
|
11,713
|
|
|
$
|
163,667
|
|
|
$
|
136,975
|
|
|
$
|
(5,766
|
)
|
|
$
|
(1,133
|
)
|
|
$
|
305,456
|
|
Cumulative effect of change in accounting principle(1)
|
|
—
|
|
|
—
|
|
|
465
|
|
|
—
|
|
|
(465
|
)
|
|
—
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
18,699
|
|
|
—
|
|
|
—
|
|
|
18,699
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,004
|
)
|
|
(1,004
|
)
|
||||||
Issuance of common stock (750,000 shares), net of expenses of $1,328
|
|
750
|
|
|
23,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,360
|
|
||||||
Stock options exercised (8,750 shares)
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
183
|
|
|
—
|
|
|
100
|
|
||||||
Release/lapse of restriction on RSUs (27,625 shares, net)
|
|
—
|
|
|
(576
|
)
|
|
—
|
|
|
462
|
|
|
—
|
|
|
(114
|
)
|
||||||
Share-based compensation
|
|
—
|
|
|
868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
868
|
|
||||||
Dividends paid on common stock ($0.67 per share)
|
|
—
|
|
|
—
|
|
|
(8,061
|
)
|
|
—
|
|
|
—
|
|
|
(8,061
|
)
|
||||||
Balance at December 31, 2017
|
|
$
|
12,463
|
|
|
$
|
187,486
|
|
|
$
|
148,078
|
|
|
$
|
(5,121
|
)
|
|
$
|
(2,602
|
)
|
|
$
|
340,304
|
|
Cumulative effect of change in accounting principle(2)
|
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
30,351
|
|
|
—
|
|
|
—
|
|
|
30,351
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,002
|
)
|
|
(3,002
|
)
|
||||||
Stock options exercised (9,700 shares)
|
|
—
|
|
|
(68
|
)
|
|
—
|
|
|
204
|
|
|
—
|
|
|
136
|
|
||||||
Release/lapse of restriction on RSUs (29,715 shares, net)
|
|
—
|
|
|
(635
|
)
|
|
—
|
|
|
547
|
|
|
—
|
|
|
(88
|
)
|
||||||
Repurchase of common stock (76,128 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,129
|
)
|
|
—
|
|
|
(2,129
|
)
|
||||||
Share-based compensation
|
|
—
|
|
|
1,030
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,030
|
|
||||||
Dividends paid on common stock ($0.78 per share)
|
|
—
|
|
|
—
|
|
|
(9,535
|
)
|
|
—
|
|
|
—
|
|
|
(9,535
|
)
|
||||||
Balance at December 31, 2018
|
|
$
|
12,463
|
|
|
$
|
187,813
|
|
|
$
|
168,951
|
|
|
$
|
(6,499
|
)
|
|
$
|
(5,661
|
)
|
|
$
|
357,067
|
|
Net income
|
|
—
|
|
|
—
|
|
|
43,630
|
|
|
—
|
|
|
—
|
|
|
43,630
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,033
|
|
|
10,033
|
|
||||||
Issuance of common stock for acquisition of ATBancorp (4,117,536 shares), net of offering expenses of $323 and liquidity discount of $2,355
|
|
4,118
|
|
|
109,236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113,354
|
|
||||||
Release/lapse of restriction on RSUs (31,354 shares, net)
|
|
—
|
|
|
(815
|
)
|
|
—
|
|
|
712
|
|
|
—
|
|
|
(103
|
)
|
||||||
Repurchase of common stock (166,729 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,679
|
)
|
|
—
|
|
|
(4,679
|
)
|
||||||
Share-based compensation
|
|
—
|
|
|
1,156
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,156
|
|
||||||
Dividends paid on common stock ($0.81 per share)
|
|
—
|
|
|
—
|
|
|
(11,476
|
)
|
|
—
|
|
|
—
|
|
|
(11,476
|
)
|
||||||
Balance at December 31, 2019
|
|
$
|
16,581
|
|
|
$
|
297,390
|
|
|
$
|
201,105
|
|
|
$
|
(10,466
|
)
|
|
$
|
4,372
|
|
|
$
|
508,982
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
7,158
|
|
|
7,300
|
|
|
17,334
|
|
|||
Depreciation, amortization, and accretion
|
2,751
|
|
|
9,045
|
|
|
8,434
|
|
|||
Net loss (gain) on sale of premises and equipment
|
119
|
|
|
(20
|
)
|
|
(2
|
)
|
|||
Stock-based compensation
|
1,156
|
|
|
1,030
|
|
|
868
|
|
|||
Net (gain) on sale or call of debt securities available for sale
|
(87
|
)
|
|
(197
|
)
|
|
(188
|
)
|
|||
Net (gain) loss on call of debt securities held to maturity
|
(3
|
)
|
|
4
|
|
|
(53
|
)
|
|||
Net loss (gain) on sale of foreclosed assets, net
|
87
|
|
|
(241
|
)
|
|
(28
|
)
|
|||
Writedown of foreclosed assets
|
170
|
|
|
22
|
|
|
58
|
|
|||
Net gain on sale of loans held for sale
|
(2,297
|
)
|
|
(1,725
|
)
|
|
(1,794
|
)
|
|||
Origination of loans held for sale
|
(115,694
|
)
|
|
(66,180
|
)
|
|
(87,579
|
)
|
|||
Proceeds from sales of loans held for sale
|
114,605
|
|
|
68,108
|
|
|
92,758
|
|
|||
Gain on sale of assets of MidWestOne Insurance Services, Inc.
|
(1,076
|
)
|
|
—
|
|
|
—
|
|
|||
Increase in cash surrender value of bank-owned life insurance
|
(1,877
|
)
|
|
(1,610
|
)
|
|
(1,388
|
)
|
|||
Increase (decrease) in deferred income taxes, net
|
2,708
|
|
|
(676
|
)
|
|
744
|
|
|||
Change in:
|
|
|
|
|
|
||||||
Other assets
|
1,917
|
|
|
(6,996
|
)
|
|
(5,309
|
)
|
|||
Oher liabilities
|
(5,953
|
)
|
|
4,548
|
|
|
(1,482
|
)
|
|||
Net cash provided by operating activities
|
$
|
47,314
|
|
|
$
|
42,763
|
|
|
$
|
41,072
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of equity securities
|
$
|
(10
|
)
|
|
$
|
(509
|
)
|
|
$
|
—
|
|
Proceeds from sales of debt securities available for sale
|
125,452
|
|
|
14,490
|
|
|
22,538
|
|
|||
Proceeds from maturities and calls of debt securities available for sale
|
91,256
|
|
|
73,719
|
|
|
67,743
|
|
|||
Purchases of debt securities available for sale
|
(289,733
|
)
|
|
(61,512
|
)
|
|
(62,849
|
)
|
|||
Proceeds from sales of debt securities held to maturity
|
1,381
|
|
|
—
|
|
|
1,153
|
|
|||
Proceeds from maturities and calls of debt securities held to maturity
|
7,008
|
|
|
5,509
|
|
|
15,477
|
|
|||
Purchase of debt securities held to maturity
|
—
|
|
|
(6,008
|
)
|
|
(44,024
|
)
|
|||
Net decrease (increase) in loans, net of unearned income
|
88,960
|
|
|
(118,710
|
)
|
|
(133,836
|
)
|
|||
Purchases of premises and equipment
|
(2,186
|
)
|
|
(5,568
|
)
|
|
(4,988
|
)
|
|||
Proceeds from sale of foreclosed assets
|
2,071
|
|
|
2,268
|
|
|
1,216
|
|
|||
Proceeds from sale of premises and equipment
|
56
|
|
|
657
|
|
|
32
|
|
|||
Proceeds from sale of assets held for sale
|
—
|
|
|
895
|
|
|
—
|
|
|||
Proceeds of principal and earnings from bank-owned life insurance
|
—
|
|
|
452
|
|
|
—
|
|
|||
Purchases of bank owned life insurance
|
—
|
|
|
—
|
|
|
(11,212
|
)
|
|||
Proceeds from sale of assets of MidWestOne Insurance Services, Inc.
|
1,175
|
|
|
—
|
|
|
—
|
|
|||
Payments to acquire intangible assets
|
—
|
|
|
(125
|
)
|
|
—
|
|
|||
Net cash acquired in business acquisition
|
47,315
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
$
|
72,745
|
|
|
$
|
(94,442
|
)
|
|
$
|
(148,750
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net increase (decrease) in:
|
|
|
|
|
|
||||||
Deposits
|
$
|
25,723
|
|
|
$
|
7,610
|
|
|
$
|
124,871
|
|
Short-term borrowings
|
(92,834
|
)
|
|
34,193
|
|
|
(20,642
|
)
|
|||
Long-term debt
|
(8,363
|
)
|
|
16,000
|
|
|
(5,000
|
)
|
|||
Proceeds from share-based award activity
|
—
|
|
|
137
|
|
|
8
|
|
|||
Taxes paid relating to net share settlement of equity awards
|
(103
|
)
|
|
(89
|
)
|
|
(114
|
)
|
|||
Dividends paid
|
(11,476
|
)
|
|
(9,535
|
)
|
|
(8,061
|
)
|
|||
Issuance of common stock
|
—
|
|
|
—
|
|
|
25,688
|
|
|||
Payment of stock issuance costs
|
(323
|
)
|
|
—
|
|
|
(1,328
|
)
|
|||
Repurchase of common stock
|
(4,679
|
)
|
|
(2,129
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
$
|
(92,055
|
)
|
|
$
|
46,187
|
|
|
$
|
115,422
|
|
Net increase (decrease) in cash and cash equivalents
|
$
|
28,004
|
|
|
$
|
(5,492
|
)
|
|
$
|
7,744
|
|
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Beginning of period
|
45,480
|
|
|
$
|
50,972
|
|
|
$
|
43,228
|
|
|
Ending balance
|
$
|
73,484
|
|
|
$
|
45,480
|
|
|
$
|
50,972
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||||||
Cash paid during the period for interest
|
$
|
34,089
|
|
|
$
|
22,441
|
|
|
$
|
15,189
|
|
Cash paid during the period for income taxes
|
7,269
|
|
|
6,245
|
|
|
13,199
|
|
|||
Supplemental schedule of non-cash investing and financing activities:
|
|
|
|
|
|
||||||
Transfer of loans to foreclosed assets
|
$
|
2,408
|
|
|
$
|
574
|
|
|
$
|
1,159
|
|
Transfer of premises and equipment to assets held for sale
|
580
|
|
|
895
|
|
|
—
|
|
|||
Transfer from debt securities held to maturity to available for sale
|
186,447
|
|
|
—
|
|
|
—
|
|
|||
Initial recognition of operating lease right of use assets
|
2,892
|
|
|
—
|
|
|
—
|
|
|||
Initial recognition of operation lease liabilities
|
2,892
|
|
|
—
|
|
|
—
|
|
|||
Transfer due to Tax Cuts and Jobs Act of 2017, reclassified from AOCI to Retained Earnings, tax effect
|
—
|
|
|
—
|
|
|
465
|
|
|||
Transfer due to adoption of ASU 2016-01, reclassified from AOCI to Retained Earnings.
|
—
|
|
|
57
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Supplemental Schedule of non-cash Investing Activities from Acquisition:
|
|
|
|
|
|
||||||
Noncash assets acquired:
|
|
|
|
|
|
||||||
Debt securities available for sale
|
$
|
99,056
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans
|
1,138,928
|
|
|
—
|
|
|
—
|
|
|||
Premises and equipment
|
18,327
|
|
|
—
|
|
|
—
|
|
|||
Goodwill
|
27,264
|
|
|
—
|
|
|
—
|
|
|||
Core deposit intangible
|
23,539
|
|
|
—
|
|
|
—
|
|
|||
Trust customer intangible
|
4,810
|
|
|
—
|
|
|
—
|
|
|||
Bank-owned life insurance
|
18,759
|
|
|
—
|
|
|
—
|
|
|||
Foreclosed assets
|
3,091
|
|
|
—
|
|
|
—
|
|
|||
Other assets
|
23,889
|
|
|
—
|
|
|
—
|
|
|||
Total noncash assets acquired
|
1,357,663
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Liabilities assumed:
|
|
|
|
|
|
||||||
Deposits
|
1,089,355
|
|
|
—
|
|
|
—
|
|
|||
Short-term borrowings
|
100,761
|
|
|
—
|
|
|
—
|
|
|||
FHLB borrowings
|
42,770
|
|
|
—
|
|
|
—
|
|
|||
Junior subordinated notes issued to capital trusts
|
17,555
|
|
|
|
|
|
|||||
Subordinated debentures
|
10,909
|
|
|
—
|
|
|
—
|
|
|||
Other liabilities
|
29,951
|
|
|
—
|
|
|
—
|
|
|||
Total liabilities assumed
|
$
|
1,291,301
|
|
|
$
|
—
|
|
|
$
|
—
|
|
•
|
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.
|
•
|
PCI 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.
|
•
|
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.
|
•
|
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.
|
•
|
The effect of other external factors such as the legal and regulatory environment.
|
|
Years
|
|
|
||
Type of Assets
|
Minimum
|
|
Maximum
|
|
Depreciation Method
|
|
|
|
|
|
|
Buildings and leasehold improvements
|
10
|
-
|
39
|
|
Straight-line
|
Furniture and equipment
|
3
|
-
|
10
|
|
Straight-line
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in thousands)
|
||||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
5,916
|
|
|
$
|
(7,660
|
)
|
|
$
|
(3,530
|
)
|
Less: Tax effect
|
|
1,544
|
|
|
(1,999
|
)
|
|
(928
|
)
|
|||
Accumulated other comprehensive gain (loss), net of tax
|
|
$
|
4,372
|
|
|
$
|
(5,661
|
)
|
|
$
|
(2,602
|
)
|
•
|
Initial forecast - using a period of one year using forward-looking economic scenarios of expected losses.
|
•
|
Historical loss forecast - for a period incorporating the remaining contractual life, adjusted for prepayments, and the changes in various economic variables during representative historical and recessionary periods.
|
•
|
Reversion period - using one and a half years, which links the initial loss forecast to the historical loss forecast based on economic conditions at the measurement date.
|
•
|
Discounted cash flows (DCF) calculation - using the items above to estimate the lifetime credit losses for each portfolio and losses for loans modified as a TDR.
|
|
|
May 1, 2019
|
||||||
Merger consideration
|
|
(in thousands)
|
||||||
Share consideration
|
|
$
|
113,677
|
|
|
|
||
Cash consideration
|
|
34,766
|
|
|
|
|||
Total merger consideration
|
|
|
|
$
|
148,443
|
|
||
Identifiable net assets acquired, at fair value
|
|
|
|
|
||||
Assets acquired
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
82,081
|
|
|
|
||
Debt securities available for sale
|
|
99,056
|
|
|
|
|||
Loans
|
|
1,138,928
|
|
|
|
|||
Premises and equipment
|
|
18,327
|
|
|
|
|||
Other intangible assets
|
|
28,349
|
|
|
|
|||
Foreclosed assets
|
|
3,091
|
|
|
|
|||
Other assets
|
|
42,648
|
|
|
|
|||
Total assets acquired
|
|
|
|
1,412,480
|
|
|||
Liabilities assumed
|
|
|
|
|
||||
Deposits
|
|
$
|
1,089,355
|
|
|
|
||
Short-term borrowings
|
|
100,761
|
|
|
|
|||
Long-term debt
|
|
71,234
|
|
|
|
|||
Other liabilities
|
|
29,951
|
|
|
|
|||
Total liabilities assumed
|
|
|
|
1,291,301
|
|
|||
Fair value of net assets acquired
|
|
|
|
121,179
|
|
|||
Goodwill
|
|
|
|
$
|
27,264
|
|
|
Years Ended
|
||||||
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands, except per share)
|
||||||
Total revenues (net interest income plus noninterest income)
|
$
|
185,102
|
|
|
$
|
190,895
|
|
Net income
|
$
|
45,871
|
|
|
$
|
42,751
|
|
Earnings per share - basic
|
$
|
2.84
|
|
|
$
|
2.62
|
|
Earnings per share - diluted
|
$
|
2.84
|
|
|
$
|
2.61
|
|
|
Years Ended
|
||||||
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Noninterest Expense
|
(in thousands)
|
||||||
Compensation and employee benefits
|
$
|
5,435
|
|
|
$
|
—
|
|
Occupancy expense of premises, net
|
483
|
|
|
2
|
|
||
Legal and professional
|
2,762
|
|
|
680
|
|
||
Data processing
|
90
|
|
|
100
|
|
||
Other
|
360
|
|
|
15
|
|
||
Total ATBancorp acquisition-related expenses
|
$
|
9,130
|
|
|
$
|
797
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations
|
$
|
439
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
441
|
|
State and political subdivisions
|
253,750
|
|
|
3,803
|
|
|
348
|
|
|
257,205
|
|
||||
Mortgage-backed securities
|
43,009
|
|
|
536
|
|
|
15
|
|
|
43,530
|
|
||||
Collateralized mortgage obligations
|
293,911
|
|
|
1,000
|
|
|
1,965
|
|
|
292,946
|
|
||||
Corporate debt securities
|
188,952
|
|
|
3,018
|
|
|
115
|
|
|
191,855
|
|
||||
Total debt securities
|
$
|
780,061
|
|
|
$
|
8,359
|
|
|
$
|
2,443
|
|
|
$
|
785,977
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations
|
$
|
5,522
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
5,495
|
|
State and political subdivisions
|
121,403
|
|
|
877
|
|
|
379
|
|
|
121,901
|
|
||||
Mortgage-backed securities
|
51,625
|
|
|
100
|
|
|
1,072
|
|
|
50,653
|
|
||||
Collateralized mortgage obligations
|
176,134
|
|
|
220
|
|
|
6,426
|
|
|
169,928
|
|
||||
Corporate debt securities
|
67,077
|
|
|
64
|
|
|
1,017
|
|
|
66,124
|
|
||||
Total debt securities
|
$
|
421,761
|
|
|
$
|
1,261
|
|
|
$
|
8,921
|
|
|
$
|
414,101
|
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
$
|
131,177
|
|
|
$
|
314
|
|
|
$
|
2,437
|
|
|
$
|
129,054
|
|
Mortgage-backed securities
|
11,016
|
|
|
1
|
|
|
331
|
|
|
10,686
|
|
||||
Collateralized mortgage obligations
|
18,527
|
|
|
—
|
|
|
669
|
|
|
17,858
|
|
||||
Corporate debt securities
|
35,102
|
|
|
331
|
|
|
467
|
|
|
34,966
|
|
||||
Total debt securities
|
$
|
195,822
|
|
|
$
|
646
|
|
|
$
|
3,904
|
|
|
$
|
192,564
|
|
|
|
|
As of December 31, 2019
|
|||||||||||||||||||||||
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||||
Available for Sale
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|||||||||||||||||||||||||
U.S. Government agencies and corporations
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State and political subdivisions
|
47
|
|
|
27,161
|
|
|
322
|
|
|
2,112
|
|
|
26
|
|
|
29,273
|
|
|
348
|
|
||||||
Mortgage-backed securities
|
7
|
|
|
963
|
|
|
12
|
|
|
1,365
|
|
|
3
|
|
|
2,328
|
|
|
15
|
|
||||||
Collateralized mortgage obligations
|
33
|
|
|
103,395
|
|
|
719
|
|
|
65,604
|
|
|
1,246
|
|
|
168,999
|
|
|
1,965
|
|
||||||
Corporate debt securities
|
7
|
|
|
7,012
|
|
|
14
|
|
|
8,788
|
|
|
101
|
|
|
15,800
|
|
|
115
|
|
||||||
Total
|
94
|
|
|
$
|
138,531
|
|
|
$
|
1,067
|
|
|
$
|
77,869
|
|
|
$
|
1,376
|
|
|
$
|
216,400
|
|
|
$
|
2,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
As of December 31, 2018
|
|||||||||||||||||||||||
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|||||||||||||||||||||||||
U.S. Government agencies and corporations
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,495
|
|
|
$
|
27
|
|
|
$
|
5,495
|
|
|
$
|
27
|
|
State and political subdivisions
|
75
|
|
|
27,508
|
|
|
121
|
|
|
12,140
|
|
|
258
|
|
|
39,648
|
|
|
379
|
|
||||||
Mortgage-backed securities
|
24
|
|
|
1,893
|
|
|
15
|
|
|
44,882
|
|
|
1,057
|
|
|
46,775
|
|
|
1,072
|
|
||||||
Collateralized mortgage obligations
|
40
|
|
|
3,906
|
|
|
75
|
|
|
134,742
|
|
|
6,351
|
|
|
138,648
|
|
|
6,426
|
|
||||||
Corporate debt securities
|
11
|
|
|
—
|
|
|
—
|
|
|
58,040
|
|
|
1,017
|
|
|
58,040
|
|
|
1,017
|
|
||||||
Total
|
152
|
|
|
$
|
33,307
|
|
|
$
|
211
|
|
|
$
|
255,299
|
|
|
$
|
8,710
|
|
|
$
|
288,606
|
|
|
$
|
8,921
|
|
|
|
|
As of December 31, 2018
|
|||||||||||||||||||||||
|
Number
of
Securities
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
Held to Maturity
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||||
|
(in thousands, except number of securities)
|
|||||||||||||||||||||||||
State and political subdivisions
|
223
|
|
|
$
|
20,905
|
|
|
$
|
130
|
|
|
$
|
56,154
|
|
|
$
|
2,307
|
|
|
$
|
77,059
|
|
|
$
|
2,437
|
|
Mortgage-backed securities
|
6
|
|
|
9,486
|
|
|
298
|
|
|
1,138
|
|
|
33
|
|
|
10,624
|
|
|
331
|
|
||||||
Collateralized mortgage obligations
|
8
|
|
|
—
|
|
|
—
|
|
|
17,849
|
|
|
669
|
|
|
17,849
|
|
|
669
|
|
||||||
Corporate debt securities
|
5
|
|
|
8,177
|
|
|
181
|
|
|
5,685
|
|
|
286
|
|
|
13,862
|
|
|
467
|
|
||||||
Total
|
242
|
|
|
$
|
38,568
|
|
|
$
|
609
|
|
|
$
|
80,826
|
|
|
$
|
3,295
|
|
|
$
|
119,394
|
|
|
$
|
3,904
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Proceeds from sales of debt securities available for sale
|
$
|
125,452
|
|
|
$
|
14,490
|
|
|
$
|
22,538
|
|
|
|
|
|
|
|
||||||
Gross realized gains from sales of debt securities available for sale
|
$
|
143
|
|
|
$
|
203
|
|
|
$
|
199
|
|
Gross realized losses from sales of debt securities available for sale
|
(56
|
)
|
|
(6
|
)
|
|
(11
|
)
|
|||
Net realized gain from sales of debt securities available for sale
|
$
|
87
|
|
|
$
|
197
|
|
|
$
|
188
|
|
|
Available For Sale
|
||||||
|
Amortized
Cost
|
|
Fair Value
|
||||
|
(in thousands)
|
||||||
Due in one year or less
|
$
|
22,635
|
|
|
$
|
22,644
|
|
Due after one year through five years
|
170,933
|
|
|
173,172
|
|
||
Due after five years through ten years
|
194,803
|
|
|
198,926
|
|
||
Due after ten years
|
54,770
|
|
|
54,759
|
|
||
|
$
|
443,141
|
|
|
$
|
449,501
|
|
Mortgage-backed securities
|
43,009
|
|
|
43,530
|
|
||
Collateralized mortgage obligations
|
293,911
|
|
|
292,946
|
|
||
Total
|
$
|
780,061
|
|
|
$
|
785,977
|
|
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Agricultural
|
$
|
140,446
|
|
|
$
|
96,956
|
|
Commercial and industrial
|
835,236
|
|
|
533,188
|
|
||
Commercial real estate:
|
|
|
|
||||
Construction & development
|
298,077
|
|
|
217,617
|
|
||
Farmland
|
181,885
|
|
|
88,807
|
|
||
Multifamily
|
227,407
|
|
|
134,741
|
|
||
Commercial real estate-other
|
1,107,490
|
|
|
826,163
|
|
||
Total commercial real estate
|
1,814,859
|
|
|
1,267,328
|
|
||
Residential real estate:
|
|
|
|
||||
One- to four- family first liens
|
407,418
|
|
|
341,830
|
|
||
One- to four- family junior liens
|
170,381
|
|
|
120,049
|
|
||
Total residential real estate
|
577,799
|
|
|
461,879
|
|
||
Consumer
|
82,926
|
|
|
39,428
|
|
||
Loans held for investment, net of unearned income
|
$
|
3,451,266
|
|
|
$
|
2,398,779
|
|
Allowance for loan losses
|
$
|
(29,079
|
)
|
|
$
|
(29,307
|
)
|
Total loans held for investment, net
|
$
|
3,422,187
|
|
|
$
|
2,369,472
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Loans receivable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
4,312
|
|
|
$
|
12,242
|
|
|
$
|
16,082
|
|
|
$
|
838
|
|
|
$
|
21
|
|
|
$
|
33,495
|
|
Collectively evaluated for impairment
|
135,246
|
|
|
822,939
|
|
|
1,781,306
|
|
|
572,865
|
|
|
82,864
|
|
|
3,395,220
|
|
||||||
Purchased credit impaired loans
|
888
|
|
|
55
|
|
|
17,471
|
|
|
4,096
|
|
|
41
|
|
|
22,551
|
|
||||||
Total
|
$
|
140,446
|
|
|
$
|
835,236
|
|
|
$
|
1,814,859
|
|
|
$
|
577,799
|
|
|
$
|
82,926
|
|
|
$
|
3,451,266
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
212
|
|
|
$
|
2,198
|
|
|
$
|
1,180
|
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
3,663
|
|
Collectively evaluated for impairment
|
3,536
|
|
|
6,194
|
|
|
11,836
|
|
|
2,152
|
|
|
448
|
|
|
24,166
|
|
||||||
Purchased credit impaired loans
|
—
|
|
|
2
|
|
|
788
|
|
|
460
|
|
|
—
|
|
|
1,250
|
|
||||||
Total
|
$
|
3,748
|
|
|
$
|
8,394
|
|
|
$
|
13,804
|
|
|
$
|
2,685
|
|
|
$
|
448
|
|
|
$
|
29,079
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Loans receivable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
4,090
|
|
|
$
|
8,957
|
|
|
$
|
7,957
|
|
|
$
|
1,760
|
|
|
$
|
24
|
|
|
$
|
22,788
|
|
Collectively evaluated for impairment
|
92,866
|
|
|
524,182
|
|
|
1,246,589
|
|
|
455,941
|
|
|
39,404
|
|
|
2,358,982
|
|
||||||
Purchased credit impaired loans
|
—
|
|
|
49
|
|
|
12,782
|
|
|
4,178
|
|
|
—
|
|
|
17,009
|
|
||||||
Total
|
$
|
96,956
|
|
|
$
|
533,188
|
|
|
$
|
1,267,328
|
|
|
$
|
461,879
|
|
|
$
|
39,428
|
|
|
$
|
2,398,779
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
$
|
322
|
|
|
$
|
2,159
|
|
|
$
|
2,683
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
5,284
|
|
Collectively evaluated for impairment
|
3,315
|
|
|
5,318
|
|
|
12,232
|
|
|
1,753
|
|
|
208
|
|
|
22,826
|
|
||||||
Purchased credit impaired loans
|
—
|
|
|
1
|
|
|
720
|
|
|
476
|
|
|
—
|
|
|
1,197
|
|
||||||
Total
|
$
|
3,637
|
|
|
$
|
7,478
|
|
|
$
|
15,635
|
|
|
$
|
2,349
|
|
|
$
|
208
|
|
|
$
|
29,307
|
|
|
Allowance for Loan Loss Activity
|
||||||||||||||||||||||
|
For the Years Ended December 31, 2019, 2018, and 2017
|
||||||||||||||||||||||
|
Agricultural
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Residential Real Estate
|
|
Consumer
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
3,637
|
|
|
$
|
7,478
|
|
|
$
|
15,635
|
|
|
$
|
2,349
|
|
|
$
|
208
|
|
|
$
|
29,307
|
|
Charge-offs
|
(1,130
|
)
|
|
(4,774
|
)
|
|
(1,537
|
)
|
|
(229
|
)
|
|
(720
|
)
|
|
(8,390
|
)
|
||||||
Recoveries
|
32
|
|
|
195
|
|
|
311
|
|
|
105
|
|
|
361
|
|
|
1,004
|
|
||||||
Provision (negative provision)
|
1,209
|
|
|
5,495
|
|
|
(605
|
)
|
|
460
|
|
|
599
|
|
|
7,158
|
|
||||||
Ending balance
|
$
|
3,748
|
|
|
$
|
8,394
|
|
|
$
|
13,804
|
|
|
$
|
2,685
|
|
|
$
|
448
|
|
|
$
|
29,079
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
2,790
|
|
|
$
|
8,518
|
|
|
$
|
13,637
|
|
|
$
|
2,870
|
|
|
$
|
244
|
|
|
$
|
28,059
|
|
Charge-offs
|
(656
|
)
|
|
(2,752
|
)
|
|
(2,901
|
)
|
|
(113
|
)
|
|
(618
|
)
|
|
(7,040
|
)
|
||||||
Recoveries
|
67
|
|
|
291
|
|
|
290
|
|
|
288
|
|
|
52
|
|
|
988
|
|
||||||
Provision (negative provision)
|
1,436
|
|
|
1,421
|
|
|
4,609
|
|
|
(696
|
)
|
|
530
|
|
|
7,300
|
|
||||||
Ending balance
|
$
|
3,637
|
|
|
$
|
7,478
|
|
|
$
|
15,635
|
|
|
$
|
2,349
|
|
|
$
|
208
|
|
|
$
|
29,307
|
|
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 (negative provision)
|
1,802
|
|
|
4,350
|
|
|
11,417
|
|
|
(463
|
)
|
|
228
|
|
|
17,334
|
|
||||||
Ending balance
|
$
|
2,790
|
|
|
$
|
8,518
|
|
|
$
|
13,637
|
|
|
$
|
2,870
|
|
|
$
|
244
|
|
|
$
|
28,059
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
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
|
7
|
|
$
|
341
|
|
|
$
|
341
|
|
|
0
|
|
$
|
—
|
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
3
|
|
6,309
|
|
|
6,309
|
|
|
0
|
|
—
|
|
|
—
|
|
|
6
|
|
2,037
|
|
|
2,083
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Farmland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
1
|
|
158
|
|
|
158
|
|
|
1
|
|
86
|
|
|
86
|
|
|
2
|
|
176
|
|
|
176
|
|
||||||
Commercial real estate-other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
0
|
|
—
|
|
|
—
|
|
|
0
|
|
—
|
|
|
—
|
|
|
2
|
|
4,276
|
|
|
4,276
|
|
||||||
Other
|
0
|
|
—
|
|
|
—
|
|
|
0
|
|
—
|
|
|
—
|
|
|
1
|
|
10,546
|
|
|
10,923
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
4
|
|
294
|
|
|
293
|
|
|
1
|
|
39
|
|
|
46
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
One- to four- family junior liens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Extended maturity date
|
6
|
|
168
|
|
|
168
|
|
|
0
|
|
—
|
|
|
—
|
|
|
0
|
|
—
|
|
|
—
|
|
||||||
Total
|
21
|
|
$
|
7,270
|
|
|
$
|
7,269
|
|
|
2
|
|
$
|
125
|
|
|
$
|
132
|
|
|
11
|
|
$
|
17,035
|
|
|
$
|
17,458
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
|
Number of Contracts
|
|
Recorded Investment
|
|
Number of Contracts
|
|
Recorded Investment
|
|
Number of Contracts
|
|
Recorded Investment
|
||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
TDRs(1) That Subsequently Defaulted:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
6
|
|
$
|
315
|
|
|
0
|
|
$
|
—
|
|
|
0
|
|
$
|
—
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
0
|
|
—
|
|
|
0
|
|
—
|
|
|
4
|
|
1,504
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Farmland
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
1
|
|
158
|
|
|
0
|
|
—
|
|
|
0
|
|
—
|
|
|||
Commercial real estate-other
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
0
|
|
—
|
|
|
1
|
|
46
|
|
|
1
|
|
968
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
One- to four- family first liens
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
3
|
|
239
|
|
|
0
|
|
—
|
|
|
0
|
|
—
|
|
|||
One- to four- family junior liens
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Extended maturity date
|
2
|
|
30
|
|
|
0
|
|
—
|
|
|
0
|
|
—
|
|
|||
Total
|
12
|
|
$
|
742
|
|
|
1
|
|
$
|
46
|
|
|
5
|
|
$
|
2,472
|
|
|
Pass
|
|
Special Mention/Watch
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
117,374
|
|
|
$
|
13,292
|
|
|
$
|
9,780
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
140,446
|
|
Commercial and industrial
|
794,526
|
|
|
19,038
|
|
|
21,635
|
|
|
1
|
|
|
36
|
|
|
835,236
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
283,921
|
|
|
11,423
|
|
|
2,733
|
|
|
—
|
|
|
—
|
|
|
298,077
|
|
||||||
Farmland
|
141,107
|
|
|
21,307
|
|
|
19,471
|
|
|
—
|
|
|
—
|
|
|
181,885
|
|
||||||
Multifamily
|
226,124
|
|
|
90
|
|
|
1,193
|
|
|
—
|
|
|
—
|
|
|
227,407
|
|
||||||
Commercial real estate-other
|
1,036,418
|
|
|
50,691
|
|
|
20,381
|
|
|
—
|
|
|
—
|
|
|
1,107,490
|
|
||||||
Total commercial real estate
|
1,687,570
|
|
|
83,511
|
|
|
43,778
|
|
|
—
|
|
|
—
|
|
|
1,814,859
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
396,175
|
|
|
4,547
|
|
|
6,532
|
|
|
164
|
|
|
—
|
|
|
407,418
|
|
||||||
One- to four- family junior liens
|
168,229
|
|
|
1,282
|
|
|
870
|
|
|
—
|
|
|
—
|
|
|
170,381
|
|
||||||
Total residential real estate
|
564,404
|
|
|
5,829
|
|
|
7,402
|
|
|
164
|
|
|
—
|
|
|
577,799
|
|
||||||
Consumer
|
82,650
|
|
|
39
|
|
|
218
|
|
|
19
|
|
|
—
|
|
|
82,926
|
|
||||||
Total
|
$
|
3,246,524
|
|
|
$
|
121,709
|
|
|
$
|
82,813
|
|
|
$
|
184
|
|
|
$
|
36
|
|
|
$
|
3,451,266
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
74,126
|
|
|
$
|
12,960
|
|
|
$
|
9,870
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
96,956
|
|
Commercial and industrial
|
499,042
|
|
|
13,583
|
|
|
20,559
|
|
|
4
|
|
|
—
|
|
|
533,188
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
215,625
|
|
|
1,069
|
|
|
923
|
|
|
—
|
|
|
—
|
|
|
217,617
|
|
||||||
Farmland
|
72,924
|
|
|
4,818
|
|
|
11,065
|
|
|
—
|
|
|
—
|
|
|
88,807
|
|
||||||
Multifamily
|
133,310
|
|
|
1,431
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134,741
|
|
||||||
Commercial real estate-other
|
766,702
|
|
|
38,275
|
|
|
21,186
|
|
|
—
|
|
|
—
|
|
|
826,163
|
|
||||||
Total commercial real estate
|
1,188,561
|
|
|
45,593
|
|
|
33,174
|
|
|
—
|
|
|
—
|
|
|
1,267,328
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
335,233
|
|
|
2,080
|
|
|
4,256
|
|
|
261
|
|
|
—
|
|
|
341,830
|
|
||||||
One- to four- family junior liens
|
118,146
|
|
|
426
|
|
|
1,477
|
|
|
—
|
|
|
—
|
|
|
120,049
|
|
||||||
Total residential real estate
|
453,379
|
|
|
2,506
|
|
|
5,733
|
|
|
261
|
|
|
—
|
|
|
461,879
|
|
||||||
Consumer
|
39,357
|
|
|
22
|
|
|
24
|
|
|
25
|
|
|
—
|
|
|
39,428
|
|
||||||
Total
|
$
|
2,254,465
|
|
|
$
|
74,664
|
|
|
$
|
69,360
|
|
|
$
|
290
|
|
|
$
|
—
|
|
|
$
|
2,398,779
|
|
|
As of December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
2,383
|
|
|
$
|
2,913
|
|
|
$
|
—
|
|
|
$
|
1,999
|
|
|
$
|
2,511
|
|
|
$
|
—
|
|
Commercial and industrial
|
7,391
|
|
|
10,875
|
|
|
—
|
|
|
2,761
|
|
|
2,977
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
1,181
|
|
|
1,218
|
|
|
—
|
|
|
84
|
|
|
84
|
|
|
—
|
|
||||||
Farmland
|
4,306
|
|
|
4,331
|
|
|
—
|
|
|
110
|
|
|
110
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
5,709
|
|
|
5,854
|
|
|
—
|
|
|
1,533
|
|
|
2,046
|
|
|
—
|
|
||||||
Total commercial real estate
|
11,196
|
|
|
11,403
|
|
|
—
|
|
|
1,727
|
|
|
2,240
|
|
|
—
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
577
|
|
|
578
|
|
|
—
|
|
|
617
|
|
|
644
|
|
|
—
|
|
||||||
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
293
|
|
|
—
|
|
||||||
Total residential real estate
|
577
|
|
|
578
|
|
|
—
|
|
|
909
|
|
|
937
|
|
|
—
|
|
||||||
Consumer
|
21
|
|
|
21
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|
—
|
|
||||||
Total
|
$
|
21,568
|
|
|
$
|
25,790
|
|
|
$
|
—
|
|
|
$
|
7,420
|
|
|
$
|
8,689
|
|
|
$
|
—
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
1,929
|
|
|
$
|
1,930
|
|
|
$
|
212
|
|
|
$
|
2,091
|
|
|
$
|
2,097
|
|
|
$
|
322
|
|
Commercial and industrial
|
4,851
|
|
|
5,417
|
|
|
2,198
|
|
|
6,196
|
|
|
8,550
|
|
|
2,159
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
135
|
|
|
135
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
1,109
|
|
|
1,148
|
|
|
347
|
|
|
2,123
|
|
|
2,123
|
|
|
662
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
3,642
|
|
|
4,229
|
|
|
698
|
|
|
4,107
|
|
|
4,365
|
|
|
2,021
|
|
||||||
Total commercial real estate
|
4,886
|
|
|
5,512
|
|
|
1,180
|
|
|
6,230
|
|
|
6,488
|
|
|
2,683
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
261
|
|
|
262
|
|
|
73
|
|
|
851
|
|
|
851
|
|
|
120
|
|
||||||
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total residential real estate
|
261
|
|
|
262
|
|
|
73
|
|
|
851
|
|
|
851
|
|
|
120
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
11,927
|
|
|
$
|
13,121
|
|
|
$
|
3,663
|
|
|
$
|
15,368
|
|
|
$
|
17,986
|
|
|
$
|
5,284
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
4,312
|
|
|
$
|
4,843
|
|
|
$
|
212
|
|
|
$
|
4,090
|
|
|
$
|
4,608
|
|
|
$
|
322
|
|
Commercial and industrial
|
12,242
|
|
|
16,292
|
|
|
2,198
|
|
|
8,957
|
|
|
11,527
|
|
|
2,159
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
1,316
|
|
|
1,353
|
|
|
135
|
|
|
84
|
|
|
84
|
|
|
—
|
|
||||||
Farmland
|
5,415
|
|
|
5,479
|
|
|
347
|
|
|
2,233
|
|
|
2,233
|
|
|
662
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
9,351
|
|
|
10,083
|
|
|
698
|
|
|
5,640
|
|
|
6,411
|
|
|
2,021
|
|
||||||
Total commercial real estate
|
16,082
|
|
|
16,915
|
|
|
1,180
|
|
|
7,957
|
|
|
8,728
|
|
|
2,683
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
838
|
|
|
840
|
|
|
73
|
|
|
1,468
|
|
|
1,495
|
|
|
120
|
|
||||||
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
293
|
|
|
—
|
|
||||||
Total residential real estate
|
838
|
|
|
840
|
|
|
73
|
|
|
1,760
|
|
|
1,788
|
|
|
120
|
|
||||||
Consumer
|
21
|
|
|
21
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|
—
|
|
||||||
Total
|
$
|
33,495
|
|
|
$
|
38,911
|
|
|
$
|
3,663
|
|
|
$
|
22,788
|
|
|
$
|
26,675
|
|
|
$
|
5,284
|
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
|
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
|
$
|
2,388
|
|
|
$
|
43
|
|
|
$
|
1,608
|
|
|
$
|
53
|
|
|
$
|
1,585
|
|
|
$
|
66
|
|
Commercial and industrial
|
5,323
|
|
|
—
|
|
|
2,607
|
|
|
94
|
|
|
7,588
|
|
|
230
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
244
|
|
|
37
|
|
|
84
|
|
|
—
|
|
|
364
|
|
|
2
|
|
||||||
Farmland
|
2,243
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
1,012
|
|
|
58
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
2,161
|
|
|
224
|
|
|
1,328
|
|
|
41
|
|
|
5,682
|
|
|
233
|
|
||||||
Total commercial real estate
|
4,648
|
|
|
261
|
|
|
1,478
|
|
|
41
|
|
|
7,058
|
|
|
293
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
323
|
|
|
2
|
|
|
404
|
|
|
—
|
|
|
2,406
|
|
|
84
|
|
||||||
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
287
|
|
|
—
|
|
|
27
|
|
|
2
|
|
||||||
Total residential real estate
|
323
|
|
|
2
|
|
|
691
|
|
|
—
|
|
|
2,433
|
|
|
86
|
|
||||||
Consumer
|
17
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
12,699
|
|
|
$
|
306
|
|
|
$
|
6,389
|
|
|
$
|
189
|
|
|
$
|
18,664
|
|
|
$
|
675
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
1,500
|
|
|
$
|
34
|
|
|
$
|
1,876
|
|
|
$
|
56
|
|
|
$
|
1,457
|
|
|
$
|
44
|
|
Commercial and industrial
|
2,186
|
|
|
136
|
|
|
4,991
|
|
|
59
|
|
|
2,189
|
|
|
103
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
26
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
684
|
|
|
5
|
|
|
1,692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
1,558
|
|
|
100
|
|
|
2,146
|
|
|
190
|
|
|
4,275
|
|
|
34
|
|
||||||
Total commercial real estate
|
2,268
|
|
|
112
|
|
|
3,838
|
|
|
190
|
|
|
4,275
|
|
|
34
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
265
|
|
|
9
|
|
|
861
|
|
|
32
|
|
|
1,030
|
|
|
35
|
|
||||||
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
267
|
|
|
5
|
|
||||||
Total residential real estate
|
265
|
|
|
9
|
|
|
861
|
|
|
32
|
|
|
1,297
|
|
|
40
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
6,219
|
|
|
$
|
291
|
|
|
$
|
11,566
|
|
|
$
|
337
|
|
|
$
|
9,218
|
|
|
$
|
221
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
3,888
|
|
|
$
|
77
|
|
|
$
|
3,484
|
|
|
$
|
109
|
|
|
$
|
3,042
|
|
|
$
|
110
|
|
Commercial and industrial
|
7,509
|
|
|
136
|
|
|
7,598
|
|
|
153
|
|
|
9,777
|
|
|
333
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
270
|
|
|
44
|
|
|
84
|
|
|
—
|
|
|
364
|
|
|
2
|
|
||||||
Farmland
|
2,927
|
|
|
5
|
|
|
1,758
|
|
|
—
|
|
|
1,012
|
|
|
58
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate-other
|
3,719
|
|
|
324
|
|
|
3,474
|
|
|
231
|
|
|
9,957
|
|
|
267
|
|
||||||
Total commercial real estate
|
6,916
|
|
|
373
|
|
|
5,316
|
|
|
231
|
|
|
11,333
|
|
|
327
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
588
|
|
|
11
|
|
|
1,265
|
|
|
32
|
|
|
3,436
|
|
|
119
|
|
||||||
One- to four- family junior liens
|
—
|
|
|
—
|
|
|
287
|
|
|
—
|
|
|
294
|
|
|
7
|
|
||||||
Total residential real estate
|
588
|
|
|
11
|
|
|
1,552
|
|
|
32
|
|
|
3,730
|
|
|
126
|
|
||||||
Consumer
|
17
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
18,918
|
|
|
$
|
597
|
|
|
$
|
17,955
|
|
|
$
|
526
|
|
|
$
|
27,882
|
|
|
$
|
896
|
|
|
Current
|
|
30 - 59 Days Past Due
|
|
60 - 89 Days Past Due
|
|
90 Days or More Past Due & Accruing
|
|
Non-Accrual
|
|
Total Loans Receivable
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
136,578
|
|
|
$
|
975
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,893
|
|
|
$
|
140,446
|
|
Commercial and industrial
|
820,923
|
|
|
782
|
|
|
255
|
|
|
—
|
|
|
13,276
|
|
|
835,236
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
293,718
|
|
|
2,256
|
|
|
609
|
|
|
—
|
|
|
1,494
|
|
|
298,077
|
|
||||||
Farmland
|
171,121
|
|
|
362
|
|
|
—
|
|
|
—
|
|
|
10,402
|
|
|
181,885
|
|
||||||
Multifamily
|
227,013
|
|
|
394
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
227,407
|
|
||||||
Commercial real estate-other
|
1,095,271
|
|
|
1,731
|
|
|
347
|
|
|
—
|
|
|
10,141
|
|
|
1,107,490
|
|
||||||
Total commercial real estate
|
1,787,123
|
|
|
4,743
|
|
|
956
|
|
|
—
|
|
|
22,037
|
|
|
1,814,859
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
401,553
|
|
|
2,492
|
|
|
718
|
|
|
99
|
|
|
2,556
|
|
|
407,418
|
|
||||||
One- to four- family junior liens
|
169,344
|
|
|
419
|
|
|
80
|
|
|
25
|
|
|
513
|
|
|
170,381
|
|
||||||
Total residential real estate
|
570,897
|
|
|
2,911
|
|
|
798
|
|
|
124
|
|
|
3,069
|
|
|
577,799
|
|
||||||
Consumer
|
82,499
|
|
|
130
|
|
|
79
|
|
|
12
|
|
|
206
|
|
|
82,926
|
|
||||||
Total
|
$
|
3,398,020
|
|
|
$
|
9,541
|
|
|
$
|
2,088
|
|
|
$
|
136
|
|
|
$
|
41,481
|
|
|
$
|
3,451,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in the totals above are the following purchased credit impaired loans
|
$
|
15,304
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,247
|
|
|
$
|
22,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agricultural
|
$
|
95,227
|
|
|
$
|
57
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
1,622
|
|
|
$
|
96,956
|
|
Commercial and industrial
|
522,463
|
|
|
1,507
|
|
|
—
|
|
|
—
|
|
|
9,218
|
|
|
533,188
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & development
|
217,476
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
217,617
|
|
||||||
Farmland
|
86,056
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,751
|
|
|
88,807
|
|
||||||
Multifamily
|
134,741
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134,741
|
|
||||||
Commercial real estate-other
|
821,214
|
|
|
391
|
|
|
—
|
|
|
—
|
|
|
4,558
|
|
|
826,163
|
|
||||||
Total commercial real estate
|
1,259,487
|
|
|
433
|
|
|
—
|
|
|
—
|
|
|
7,408
|
|
|
1,267,328
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One- to four- family first liens
|
337,405
|
|
|
1,851
|
|
|
1,184
|
|
|
341
|
|
|
1,049
|
|
|
341,830
|
|
||||||
One- to four- family junior liens
|
119,040
|
|
|
406
|
|
|
114
|
|
|
24
|
|
|
465
|
|
|
120,049
|
|
||||||
Total residential real estate
|
456,445
|
|
|
2,257
|
|
|
1,298
|
|
|
365
|
|
|
1,514
|
|
|
461,879
|
|
||||||
Consumer
|
39,225
|
|
|
32
|
|
|
9
|
|
|
—
|
|
|
162
|
|
|
39,428
|
|
||||||
Total
|
$
|
2,372,847
|
|
|
$
|
4,286
|
|
|
$
|
1,357
|
|
|
$
|
365
|
|
|
$
|
19,924
|
|
|
$
|
2,398,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in the totals above are the following purchased credit impaired loans
|
$
|
16,714
|
|
|
$
|
295
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,009
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
|
(in thousands)
|
||||||
Agricultural
|
$
|
904
|
|
|
$
|
—
|
|
Commercial and industrial
|
147
|
|
|
165
|
|
||
Commercial real estate
|
17,803
|
|
|
13,600
|
|
||
Residential real estate
|
4,136
|
|
|
4,172
|
|
||
Consumer
|
57
|
|
|
—
|
|
||
Outstanding balance
|
23,047
|
|
|
17,937
|
|
||
Carrying amount
|
22,551
|
|
|
17,009
|
|
||
Allowance for loan losses
|
1,250
|
|
|
1,197
|
|
||
Carrying amount, net of allowance for loan losses
|
$
|
21,301
|
|
|
$
|
15,812
|
|
|
For the Year Ended
|
||
|
December 31, 2019
|
||
|
(in thousands)
|
||
Contractually required principal payments
|
$
|
15,074
|
|
Nonaccretable discount
|
(2,957
|
)
|
|
Fair value of acquired loans
|
$
|
12,116
|
|
|
|
||
Loans at end of period
|
$
|
7,666
|
|
|
For the Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Balance at beginning of period
|
$
|
3,840
|
|
|
$
|
4,304
|
|
Purchases
|
—
|
|
|
—
|
|
||
Accretion
|
(626
|
)
|
|
(802
|
)
|
||
Reclassification from nonaccretable difference
|
68
|
|
|
338
|
|
||
Balance at end of period
|
$
|
3,282
|
|
|
$
|
3,840
|
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||
|
|
Notional
Amount
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Notional
Amount
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
16,734
|
|
|
$
|
—
|
|
|
$
|
1,113
|
|
|
$
|
8,927
|
|
|
$
|
—
|
|
|
$
|
223
|
|
Total derivatives designated as hedging instruments
|
|
$
|
16,734
|
|
|
$
|
—
|
|
|
$
|
1,113
|
|
|
$
|
8,927
|
|
|
$
|
—
|
|
|
$
|
223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
113,632
|
|
|
$
|
1,824
|
|
|
$
|
1,999
|
|
|
$
|
13,830
|
|
|
$
|
321
|
|
|
$
|
359
|
|
RPAs
|
|
14,711
|
|
|
24
|
|
|
130
|
|
|
10,112
|
|
|
—
|
|
|
85
|
|
||||||
Total derivatives not designated as hedging instruments
|
|
$
|
128,343
|
|
|
$
|
1,848
|
|
|
$
|
2,129
|
|
|
$
|
23,942
|
|
|
$
|
321
|
|
|
$
|
444
|
|
|
Location and Amount of Gain (Loss) Recognized in Income on Fair Value Hedging Relationships
|
||||||||||||||||||||||
|
For the Years Ended December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
|
Interest Income
|
|
Other Income
|
|
Interest Income
|
|
Other Income
|
|
Interest Income
|
|
Other Income
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Total amounts of income and expense line items presented in the Consolidated Statements of Income in which the effects of fair value hedges are recorded
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The effects of fair value hedging:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (Loss) on fair value hedging relationships in subtopic 815-20:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Hedged items
|
891
|
|
|
—
|
|
|
221
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Derivative designated as hedging instruments
|
(890
|
)
|
|
—
|
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Line Item in the Balance Sheet in which the Hedged Item is Included
|
|
Carrying Amount of the
Hedged Assets
|
|
Cumulative Amount of Fair Value
Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
|
||||
|
|
(in thousands)
|
||||||
Loans
|
|
$
|
17,849
|
|
|
$
|
1,111
|
|
|
December 31, 2019
|
||||||||||||||||||||||
|
Customer Counterparties
|
|
Financial Counterparties
|
||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||
(in thousands)
|
Notional Amount
|
|
Assets
|
|
Liabilities
|
|
Notional Amount
|
|
Assets
|
|
Liabilities
|
||||||||||||
Swaps
|
$
|
56,816
|
|
|
$
|
1,824
|
|
|
$
|
—
|
|
|
$
|
56,816
|
|
|
$
|
—
|
|
|
$
|
1,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2018
|
||||||||||||||||||||||
|
Customer Counterparties
|
|
Financial Counterparties
|
||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||
(in thousands)
|
Notional Amount
|
|
Assets
|
|
Liabilities
|
|
Notional Amount
|
|
Assets
|
|
Liabilities
|
||||||||||||
Swaps
|
$
|
6,915
|
|
|
$
|
321
|
|
|
$
|
—
|
|
|
$
|
6,915
|
|
|
$
|
—
|
|
|
$
|
359
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||
(in thousands)
|
Notional Amount
|
|
Assets
|
|
Liabilities
|
|
Notional Amount
|
|
Assets
|
|
Liabilities
|
||||||||||||
RPAs - protection sold
|
$
|
4,702
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
RPAs - protection purchased
|
10,009
|
|
|
—
|
|
|
130
|
|
|
10,112
|
|
|
—
|
|
|
85
|
|
||||||
Total RPAs
|
$
|
14,711
|
|
|
$
|
24
|
|
|
$
|
130
|
|
|
$
|
10,112
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
Location in the Consolidated Statements of Income
|
|
For the Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|||||||
Interest rate swaps
|
Other income
|
|
$
|
(138
|
)
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
RPAs
|
Other income
|
|
(117
|
)
|
|
115
|
|
|
—
|
|
|||
Total
|
|
|
$
|
(255
|
)
|
|
$
|
77
|
|
|
$
|
—
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Balance Sheet
|
|
|
|||||||||||||||
(in thousands)
|
Gross Amounts of Recognized Assets (Liabilities)
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts of Assets (Liabilities) presented in the Balance Sheet
|
|
Financial Instruments
|
|
Cash Collateral Received (Paid)
|
|
Net Assets (Liabilities)
|
||||||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset Derivatives
|
$
|
1,848
|
|
|
$
|
—
|
|
|
$
|
1,848
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,848
|
|
Liability Derivatives
|
(3,242
|
)
|
|
—
|
|
|
(3,242
|
)
|
|
—
|
|
|
(3,280
|
)
|
|
38
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset Derivatives
|
$
|
321
|
|
|
$
|
—
|
|
|
$
|
321
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
321
|
|
Liability Derivatives
|
(667
|
)
|
|
—
|
|
|
(667
|
)
|
|
—
|
|
|
(530
|
)
|
|
(137
|
)
|
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Land
|
$
|
14,530
|
|
|
$
|
12,464
|
|
Buildings and leasehold improvements
|
89,605
|
|
|
75,775
|
|
||
Furniture and equipment
|
20,769
|
|
|
17,752
|
|
||
Construction in process
|
359
|
|
|
95
|
|
||
Premises and equipment
|
125,263
|
|
|
106,086
|
|
||
Accumulated depreciation and amortization
|
34,540
|
|
|
30,313
|
|
||
Premises and equipment, net
|
$
|
90,723
|
|
|
$
|
75,773
|
|
|
For the Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Goodwill, beginning of period
|
$
|
64,654
|
|
|
$
|
64,654
|
|
Goodwill from acquisition of ATBancorp
|
27,264
|
|
|
—
|
|
||
Total goodwill, end of period
|
$
|
91,918
|
|
|
$
|
64,654
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Core deposit intangible
|
$
|
41,745
|
|
|
$
|
(21,032
|
)
|
|
$
|
20,713
|
|
|
$
|
18,206
|
|
|
$
|
(16,233
|
)
|
|
$
|
1,973
|
|
Customer relationship intangible
|
5,265
|
|
|
(1,195
|
)
|
|
4,070
|
|
|
455
|
|
|
(259
|
)
|
|
196
|
|
||||||
Other
|
2,700
|
|
|
(2,305
|
)
|
|
395
|
|
|
2,700
|
|
|
(2,034
|
)
|
|
666
|
|
||||||
|
$
|
49,710
|
|
|
$
|
(24,532
|
)
|
|
$
|
25,178
|
|
|
$
|
21,361
|
|
|
$
|
(18,526
|
)
|
|
$
|
2,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Indefinite-lived trade name intangible
|
$
|
7,040
|
|
|
|
|
|
|
$
|
7,040
|
|
|
|
|
|
|
Core
|
|
Customer
|
|
|
|
|
||||||||
|
Deposit
|
|
Relationship
|
|
|
|
|
||||||||
|
Intangible
|
|
Intangible
|
|
Other
|
|
Totals
|
||||||||
Year ending December 31,
|
(in thousands)
|
||||||||||||||
2020
|
$
|
5,407
|
|
|
$
|
1,435
|
|
|
$
|
133
|
|
|
$
|
6,975
|
|
2021
|
4,190
|
|
|
1,062
|
|
|
106
|
|
|
5,358
|
|
||||
2022
|
3,487
|
|
|
797
|
|
|
79
|
|
|
4,363
|
|
||||
2023
|
2,833
|
|
|
518
|
|
|
51
|
|
|
3,402
|
|
||||
2024
|
2,180
|
|
|
239
|
|
|
24
|
|
|
2,443
|
|
||||
Thereafter
|
2,616
|
|
|
19
|
|
|
2
|
|
|
2,637
|
|
||||
Total
|
$
|
20,713
|
|
|
$
|
4,070
|
|
|
$
|
395
|
|
|
$
|
25,178
|
|
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Assets held for sale
|
$
|
580
|
|
|
$
|
—
|
|
Bank-owned life insurance
|
81,625
|
|
|
60,989
|
|
||
Interest receivable
|
18,525
|
|
|
14,736
|
|
||
FHLB stock
|
15,381
|
|
|
14,678
|
|
||
Mortgage servicing rights
|
7,026
|
|
|
2,803
|
|
||
Operating leases right-of-use asset
|
4,499
|
|
|
—
|
|
||
Federal & state taxes, current
|
2,318
|
|
|
2,361
|
|
||
Federal & state taxes, deferred
|
3,530
|
|
|
8,273
|
|
||
Other receivables/assets
|
14,476
|
|
|
11,262
|
|
||
|
$
|
147,960
|
|
|
$
|
115,102
|
|
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Non-interest-bearing demand
|
$
|
662,209
|
|
|
$
|
439,133
|
|
Interest-bearing checking
|
962,830
|
|
|
683,894
|
|
||
Money market
|
763,028
|
|
|
555,839
|
|
||
Savings
|
387,142
|
|
|
210,416
|
|
||
Certificates of deposit under $250,000
|
682,232
|
|
|
532,395
|
|
||
Certificates of deposit of $250,000 or more
|
271,214
|
|
|
191,252
|
|
||
Total deposits
|
$
|
3,728,655
|
|
|
$
|
2,612,929
|
|
(in thousands)
|
|
||
2020
|
$
|
678,107
|
|
2021
|
183,458
|
|
|
2022
|
59,374
|
|
|
2023
|
19,000
|
|
|
2024
|
12,670
|
|
|
Thereafter
|
837
|
|
|
Total
|
$
|
953,446
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Weighted Average Cost
|
|
Balance
|
|
Weighted Average Cost
|
|
Balance
|
||||||
|
|
(dollars in thousands)
|
||||||||||||
Securities sold under agreements to repurchase
|
|
1.06
|
%
|
|
$
|
117,249
|
|
|
1.00
|
%
|
|
$
|
74,522
|
|
Federal Home Loan Bank overnight advances
|
|
1.73
|
|
|
22,100
|
|
|
2.60
|
|
|
56,900
|
|
||
Total
|
|
1.17
|
%
|
|
$
|
139,349
|
|
|
1.69
|
%
|
|
$
|
131,422
|
|
|
|
Face Value
|
|
Book Value
|
|
Interest Rate
|
|
Year-end
Interest Rate
|
|
Maturity Date
|
|
Callable Date
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|||||||||||
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|||||||
ATBancorp Statutory Trust I
|
|
$
|
7,732
|
|
|
$
|
6,814
|
|
|
Three-month LIBOR + 1.68%
|
|
3.57
|
%
|
|
06/15/2036
|
|
06/15/2011
|
ATBancorp Statutory Trust II
|
|
12,372
|
|
|
10,794
|
|
|
Three-month LIBOR + 1.65%
|
|
3.54
|
%
|
|
09/15/2037
|
|
06/15/2012
|
||
Central Bancshares Capital Trust II
|
|
7,217
|
|
|
6,783
|
|
|
Three-month LIBOR + 3.50%
|
|
5.39
|
%
|
|
03/15/2038
|
|
03/15/2013
|
||
Barron Investment Capital Trust I
|
|
2,062
|
|
|
1,732
|
|
|
Three-month LIBOR + 2.15%
|
|
4.08
|
%
|
|
09/23/2036
|
|
09/23/2011
|
||
MidWestOne Statutory Trust II
|
|
15,464
|
|
|
15,464
|
|
|
Three-month LIBOR + 1.59%
|
|
3.48
|
%
|
|
12/15/2037
|
|
12/15/2012
|
||
Total
|
|
$
|
44,847
|
|
|
$
|
41,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Central Bancshares Capital Trust II
|
|
$
|
7,217
|
|
|
$
|
6,730
|
|
|
Three-month LIBOR + 3.50%
|
|
6.29
|
%
|
|
03/15/2038
|
|
03/15/2013
|
Barron Investment Capital Trust I
|
|
2,062
|
|
|
1,694
|
|
|
Three-month LIBOR + 2.15%
|
|
4.97
|
%
|
|
09/23/2036
|
|
09/23/2011
|
||
MidWestOne Statutory Trust II
|
|
15,464
|
|
|
15,464
|
|
|
Three-month LIBOR + 1.59%
|
|
4.38
|
%
|
|
12/15/2037
|
|
12/15/2012
|
||
Total
|
|
$
|
24,743
|
|
|
$
|
23,888
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Weighted Average Cost
|
|
Balance
(in thousands)
|
|
Weighted Average Cost
|
|
Balance
(in thousands)
|
||||||
Finance lease payable
|
|
8.89
|
%
|
|
$
|
1,224
|
|
|
8.89
|
%
|
|
$
|
1,338
|
|
FHLB borrowings
|
|
2.25
|
|
|
145,700
|
|
|
2.45
|
|
|
136,000
|
|
||
Notes payable to unaffiliated bank
|
|
3.44
|
|
|
32,250
|
|
|
4.13
|
|
|
7,500
|
|
||
Total
|
|
2.51
|
%
|
|
$
|
179,174
|
|
|
2.60
|
%
|
|
$
|
144,838
|
|
|
Weighted Average Rate
|
|
Amount
|
|||
|
|
|
(in thousands)
|
|||
Due in 2020
|
1.93
|
%
|
|
$
|
54,400
|
|
Due in 2021
|
2.07
|
%
|
|
43,000
|
|
|
Due in 2022
|
2.68
|
%
|
|
31,000
|
|
|
Due in 2023
|
2.79
|
%
|
|
11,000
|
|
|
Due in 2024
|
3.15
|
%
|
|
6,000
|
|
|
Thereafter
|
—
|
%
|
|
—
|
|
|
Total
|
|
|
145,400
|
|
||
Valuation adjustment from acquisition accounting
|
|
|
300
|
|
||
Total
|
|
|
$
|
145,700
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Current:
|
|
|
|
|
|
||||||
Federal tax expense
|
$
|
1,217
|
|
|
$
|
5,293
|
|
|
$
|
7,289
|
|
State tax expense
|
2,353
|
|
|
3,004
|
|
|
2,435
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Deferred income tax expense
|
3,003
|
|
|
(680
|
)
|
|
652
|
|
|||
Total income tax provision
|
$
|
6,573
|
|
|
$
|
7,617
|
|
|
$
|
10,376
|
|
|
Year ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Amount
|
|
% of Pretax Income
|
|
Amount
|
|
% of Pretax Income
|
|
Amount
|
|
% of Pretax Income
|
|||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
Computed “expected” tax expense
|
$
|
10,543
|
|
|
21.0
|
%
|
|
$
|
7,973
|
|
|
21.0
|
%
|
|
$
|
10,176
|
|
|
35.0
|
%
|
Tax-exempt interest
|
(2,392
|
)
|
|
(4.8
|
)
|
|
(1,876
|
)
|
|
(4.9
|
)
|
|
(3,182
|
)
|
|
(10.9
|
)
|
|||
Bank-owned life insurance
|
(394
|
)
|
|
(0.8
|
)
|
|
(337
|
)
|
|
(0.9
|
)
|
|
(485
|
)
|
|
(1.7
|
)
|
|||
State income taxes, net of federal income tax benefit
|
2,688
|
|
|
5.3
|
|
|
2,040
|
|
|
5.4
|
|
|
1,307
|
|
|
4.5
|
|
|||
Non-deductible acquisition expenses
|
177
|
|
|
0.4
|
|
|
122
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||
General business credits
|
(4,090
|
)
|
|
(8.1
|
)
|
|
(343
|
)
|
|
(0.9
|
)
|
|
(466
|
)
|
|
(1.6
|
)
|
|||
Federal income tax rate change
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,212
|
|
|
11.1
|
|
|||
Other
|
41
|
|
|
0.1
|
|
|
38
|
|
|
0.1
|
|
|
(186
|
)
|
|
(0.7
|
)
|
|||
Total income tax provision
|
$
|
6,573
|
|
|
13.1
|
%
|
|
$
|
7,617
|
|
|
20.1
|
%
|
|
$
|
10,376
|
|
|
35.7
|
%
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Deferred income tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
7,577
|
|
|
$
|
7,636
|
|
Deferred compensation
|
4,100
|
|
|
1,361
|
|
||
Net operating losses (state net operating loss carryforwards)
|
4,477
|
|
|
4,283
|
|
||
Unrealized losses on investment securities
|
—
|
|
|
1,999
|
|
||
Accrued compensation
|
1,496
|
|
|
816
|
|
||
ROU liabilities
|
1,388
|
|
|
—
|
|
||
Tax credit carryforward
|
611
|
|
|
—
|
|
||
Other
|
1,541
|
|
|
1,415
|
|
||
Gross deferred tax assets
|
21,190
|
|
|
17,510
|
|
||
|
|
|
|
||||
Deferred income tax liabilities:
|
|
|
|
||||
Premises and equipment depreciation and amortization
|
4,759
|
|
|
2,947
|
|
||
Purchase accounting adjustments
|
3,171
|
|
|
769
|
|
||
Mortgage servicing rights
|
1,831
|
|
|
730
|
|
||
Unrealized gains on investment securities
|
1,544
|
|
|
—
|
|
||
ROU assets
|
1,388
|
|
|
—
|
|
||
Other
|
490
|
|
|
508
|
|
||
Gross deferred tax liabilities
|
13,183
|
|
|
4,954
|
|
||
Net deferred income tax asset
|
8,007
|
|
|
12,556
|
|
||
Valuation allowance
|
4,477
|
|
|
4,283
|
|
||
Net deferred tax asset
|
$
|
3,530
|
|
|
$
|
8,273
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Company contributions
|
$
|
1,617
|
|
|
$
|
1,361
|
|
|
$
|
1,306
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Company contributions
|
$
|
1,514
|
|
|
$
|
690
|
|
|
$
|
1,081
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Company contributions
|
$
|
315
|
|
|
$
|
215
|
|
|
$
|
195
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Balance, beginning
|
$
|
1,867
|
|
|
$
|
2,061
|
|
|
$
|
2,278
|
|
Company contributions and interest
|
117
|
|
|
156
|
|
|
146
|
|
|||
Cash payments made
|
(352
|
)
|
|
(350
|
)
|
|
(363
|
)
|
|||
Balance, ending
|
$
|
1,632
|
|
|
$
|
1,867
|
|
|
$
|
2,061
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Balance, beginning
|
$
|
1,104
|
|
|
$
|
1,251
|
|
|
$
|
1,389
|
|
Plans acquired in ATBancorp merger
|
11,058
|
|
|
—
|
|
|
—
|
|
|||
Company paid interest
|
145
|
|
|
75
|
|
|
84
|
|
|||
Cash payments made
|
(6,855
|
)
|
|
(222
|
)
|
|
(222
|
)
|
|||
Balance, ending
|
$
|
5,452
|
|
|
$
|
1,104
|
|
|
$
|
1,251
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Balance, beginning
|
$
|
855
|
|
|
$
|
715
|
|
|
$
|
529
|
|
Plans acquired in ATBancorp merger
|
5,958
|
|
|
—
|
|
|
—
|
|
|||
Employee deferrals
|
157
|
|
|
179
|
|
|
193
|
|
|||
Company paid interest
|
395
|
|
|
35
|
|
|
24
|
|
|||
Cash payments made
|
(344
|
)
|
|
(74
|
)
|
|
(31
|
)
|
|||
Balance, ending
|
$
|
7,021
|
|
|
$
|
855
|
|
|
$
|
715
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands)
|
||||||||||
Balance, beginning
|
$
|
1,442
|
|
|
$
|
1,172
|
|
|
$
|
983
|
|
Company deferral expense
|
228
|
|
|
270
|
|
|
189
|
|
|||
Balance, ending
|
$
|
1,670
|
|
|
$
|
1,442
|
|
|
$
|
1,172
|
|
|
|
|
Weighted-Average
|
|||
|
Shares
|
|
Grant-Date Fair Value
|
|||
Nonvested at December 31, 2018
|
83,750
|
|
|
$
|
31.63
|
|
Granted
|
49,040
|
|
|
29.53
|
|
|
Vested
|
(34,810
|
)
|
|
31.21
|
|
|
Forfeited
|
(8,190
|
)
|
|
31.83
|
|
|
Nonvested at December 31, 2019
|
89,790
|
|
|
$
|
30.63
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(dollars in thousands, except per share amounts)
|
||||||||||
Basic Earnings Per Share:
|
|
|
|
|
|
||||||
Net income
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
Weighted average shares outstanding
|
14,869,952
|
|
|
12,219,725
|
|
|
12,038,499
|
|
|||
Basic earnings per common share
|
$
|
2.93
|
|
|
$
|
2.48
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
||||||
Diluted Earnings Per Share:
|
|
|
|
|
|
||||||
Net income
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
Weighted average shares outstanding, included all dilutive potential shares
|
14,884,933
|
|
|
12,237,153
|
|
|
12,062,577
|
|
|||
Diluted earnings per common share
|
$
|
2.93
|
|
|
$
|
2.48
|
|
|
$
|
1.55
|
|
|
Actual
|
|
For Capital Adequacy Purposes With Capital Conservation Buffer(1)
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio(1)
|
|
Amount
|
|
Ratio
|
|||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
At December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
463,601
|
|
|
11.34
|
%
|
|
$
|
429,077
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital/risk weighted assets
|
428,021
|
|
|
10.47
|
|
|
347,348
|
|
|
8.50
|
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
386,434
|
|
|
9.46
|
|
|
286,051
|
|
|
7.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage capital/average assets
|
428,021
|
|
|
9.48
|
|
|
180,529
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
MidWestOne Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
482,106
|
|
|
11.83
|
%
|
|
$
|
427,877
|
|
|
10.50
|
%
|
|
$
|
407,502
|
|
|
10.00
|
%
|
Tier 1 capital/risk weighted assets
|
453,027
|
|
|
11.12
|
|
|
346,377
|
|
|
8.50
|
|
|
326,002
|
|
|
8.00
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
453,027
|
|
|
11.12
|
|
|
285,251
|
|
|
7.00
|
|
|
264,876
|
|
|
6.50
|
|
|||
Tier 1 leverage capital/average assets
|
453,027
|
|
|
10.06
|
|
|
180,209
|
|
|
4.00
|
|
|
231,166
|
|
|
5.00
|
|
|||
At December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
342,054
|
|
|
12.23
|
%
|
|
$
|
276,283
|
|
|
9.875
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital/risk weighted assets
|
312,747
|
|
|
11.18
|
|
|
220,327
|
|
|
7.875
|
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
288,859
|
|
|
10.32
|
|
|
178,360
|
|
|
6.375
|
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 leverage capital/average assets
|
312,747
|
|
|
9.73
|
|
|
128,531
|
|
|
4.000
|
|
|
N/A
|
|
|
N/A
|
|
|||
MidWestOne Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital/risk weighted assets
|
$
|
333,074
|
|
|
11.94
|
%
|
|
$
|
275,468
|
|
|
9.875
|
%
|
|
$
|
278,955
|
|
|
10.00
|
%
|
Tier 1 capital/risk weighted assets
|
303,767
|
|
|
10.89
|
|
|
219,677
|
|
|
7.875
|
|
|
223,164
|
|
|
8.00
|
|
|||
Common equity tier 1 capital/risk weighted assets
|
303,767
|
|
|
10.89
|
|
|
177,833
|
|
|
6.375
|
|
|
181,320
|
|
|
6.50
|
|
|||
Tier 1 leverage capital/average assets
|
303,767
|
|
|
9.47
|
|
|
128,259
|
|
|
4.000
|
|
|
160,324
|
|
|
5.00
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Commitments to extend credit
|
$
|
859,212
|
|
|
$
|
521,270
|
|
Commitments to sell loans
|
5,400
|
|
|
666
|
|
||
Standby letters of credit
|
36,192
|
|
|
16,709
|
|
||
Total
|
$
|
900,804
|
|
|
$
|
538,645
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||
Balance, beginning
|
$
|
12,655
|
|
|
$
|
14,131
|
|
Net increase (decrease) due to change in related parties
|
12,163
|
|
|
(2,518
|
)
|
||
Advances
|
4,057
|
|
|
2,059
|
|
||
Collections
|
(1,240
|
)
|
|
(1,017
|
)
|
||
Balance, ending
|
$
|
27,635
|
|
|
$
|
12,655
|
|
•
|
Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
•
|
Level 2 – Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
|
Fair Value Measurement at December 31, 2019 Using
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations
|
$
|
441
|
|
|
$
|
—
|
|
|
$
|
441
|
|
|
$
|
—
|
|
State and political subdivisions
|
257,205
|
|
|
—
|
|
|
257,205
|
|
|
—
|
|
||||
Mortgage-backed securities
|
43,530
|
|
|
—
|
|
|
43,530
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
292,946
|
|
|
—
|
|
|
292,946
|
|
|
—
|
|
||||
Corporate debt securities
|
191,855
|
|
|
—
|
|
|
191,855
|
|
|
—
|
|
||||
Derivative assets
|
1,848
|
|
|
—
|
|
|
1,848
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
3,242
|
|
|
$
|
—
|
|
|
$
|
3,242
|
|
|
$
|
—
|
|
|
Fair Value Measurement at December 31, 2018 Using
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies and corporations
|
$
|
5,495
|
|
|
$
|
—
|
|
|
$
|
5,495
|
|
|
$
|
—
|
|
State and political subdivisions
|
121,901
|
|
|
—
|
|
|
121,901
|
|
|
—
|
|
||||
Mortgage-backed securities
|
50,653
|
|
|
—
|
|
|
50,653
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
169,928
|
|
|
—
|
|
|
169,928
|
|
|
—
|
|
||||
Corporate debt securities
|
66,124
|
|
|
—
|
|
|
66,124
|
|
|
—
|
|
||||
Derivative assets
|
321
|
|
|
—
|
|
|
321
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
667
|
|
|
$
|
—
|
|
|
$
|
667
|
|
|
$
|
—
|
|
|
Fair Value Measurement at December 31, 2019 Using
|
||||||||||||||
(in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Collateral dependent impaired loans
|
$
|
6,749
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,749
|
|
Foreclosed assets, net
|
3,706
|
|
|
—
|
|
|
—
|
|
|
3,706
|
|
|
Fair Value Measurement at December 31, 2018 Using
|
||||||||||||||
(in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Collateral dependent impaired loans
|
$
|
8,328
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,328
|
|
Foreclosed assets, net
|
535
|
|
|
—
|
|
|
—
|
|
|
535
|
|
|
December 31, 2019
|
||||||||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
73,484
|
|
|
$
|
73,484
|
|
|
$
|
73,484
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities available for sale
|
785,977
|
|
|
785,977
|
|
|
—
|
|
|
785,977
|
|
|
—
|
|
|||||
Loans held for sale
|
5,400
|
|
|
5,476
|
|
|
—
|
|
|
5,476
|
|
|
—
|
|
|||||
Loans held for investment, net
|
3,422,187
|
|
|
3,427,952
|
|
|
—
|
|
|
—
|
|
|
3,427,952
|
|
|||||
Interest receivable
|
18,525
|
|
|
18,525
|
|
|
—
|
|
|
18,525
|
|
|
—
|
|
|||||
Federal Home Loan Bank stock
|
15,381
|
|
|
15,381
|
|
|
—
|
|
|
15,381
|
|
|
—
|
|
|||||
Derivative assets
|
1,848
|
|
|
1,848
|
|
|
—
|
|
|
1,848
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing
|
662,209
|
|
|
662,209
|
|
|
662,209
|
|
|
—
|
|
|
—
|
|
|||||
Interest-bearing
|
3,066,446
|
|
|
3,066,427
|
|
|
2,113,000
|
|
|
953,427
|
|
|
—
|
|
|||||
Short-term borrowings
|
139,349
|
|
|
139,349
|
|
|
139,349
|
|
|
—
|
|
|
—
|
|
|||||
Finance leases payable
|
1,224
|
|
|
1,224
|
|
|
—
|
|
|
1,224
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
145,700
|
|
|
146,913
|
|
|
—
|
|
|
146,913
|
|
|
—
|
|
|||||
Junior subordinated notes issued to capital trusts
|
41,587
|
|
|
39,391
|
|
|
—
|
|
|
39,391
|
|
|
—
|
|
|||||
Subordinated debentures
|
10,899
|
|
|
11,083
|
|
|
—
|
|
|
11,083
|
|
|
—
|
|
|||||
Other long-term debt
|
32,250
|
|
|
32,250
|
|
|
—
|
|
|
32,250
|
|
|
—
|
|
|||||
Derivative liabilities
|
3,242
|
|
|
3,242
|
|
|
—
|
|
|
3,242
|
|
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
45,480
|
|
|
$
|
45,480
|
|
|
$
|
45,480
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities available for sale
|
414,101
|
|
|
414,101
|
|
|
—
|
|
|
414,101
|
|
|
—
|
|
|||||
Debt securities held to maturity
|
195,822
|
|
|
192,564
|
|
|
—
|
|
|
192,564
|
|
|
—
|
|
|||||
Loans held for sale
|
666
|
|
|
678
|
|
|
—
|
|
|
678
|
|
|
—
|
|
|||||
Loans held for investment, net
|
2,369,472
|
|
|
2,343,654
|
|
|
—
|
|
|
—
|
|
|
2,343,654
|
|
|||||
Interest receivable
|
14,736
|
|
|
14,736
|
|
|
—
|
|
|
14,736
|
|
|
—
|
|
|||||
Federal Home Loan Bank stock
|
14,678
|
|
|
14,678
|
|
|
—
|
|
|
14,678
|
|
|
—
|
|
|||||
Derivative assets
|
321
|
|
|
321
|
|
|
—
|
|
|
321
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing
|
439,133
|
|
|
439,133
|
|
|
439,133
|
|
|
—
|
|
|
—
|
|
|||||
Interest-bearing
|
2,173,796
|
|
|
2,166,518
|
|
|
1,450,149
|
|
|
716,369
|
|
|
—
|
|
|||||
Short-term borrowings
|
131,422
|
|
|
131,422
|
|
|
131,422
|
|
|
—
|
|
|
—
|
|
|||||
Finance leases payable
|
1,338
|
|
|
1,338
|
|
|
—
|
|
|
1,338
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
136,000
|
|
|
134,995
|
|
|
—
|
|
|
134,995
|
|
|
—
|
|
|||||
Junior subordinated notes issued to capital trusts
|
23,888
|
|
|
21,215
|
|
|
—
|
|
|
21,215
|
|
|
—
|
|
|||||
Subordinated debentures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other long-term debt
|
7,500
|
|
|
7,500
|
|
|
—
|
|
|
7,500
|
|
|
—
|
|
|||||
Derivative liabilities
|
667
|
|
|
667
|
|
|
—
|
|
|
667
|
|
|
—
|
|
|
|
|
December 31, 2019
|
||
|
|
|
(dollars in thousands)
|
||
Lease Right-of-Use Assets
|
|
Classification
|
|
||
Operating lease right-of-use assets
|
|
Other assets
|
$
|
4,499
|
|
Finance lease right-of-use asset
|
|
Premises and equipment, net
|
637
|
|
|
|
|
|
|
||
Lease Liabilities
|
|
|
|
||
Operating lease liability
|
|
Other liabilities
|
$
|
5,430
|
|
Finance lease liability
|
|
Long-term debt
|
1,225
|
|
|
|
|
|
|
||
Weighted-average remaining lease term
|
|
|
|
||
Operating leases
|
|
|
8.90 years
|
|
|
Finance lease
|
|
|
6.67 years
|
|
|
Weighted-average discount rate
|
|
|
|
||
Operating leases
|
|
|
3.78
|
%
|
|
Finance lease
|
|
|
8.89
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Lease Costs
|
(in thousands)
|
||||||||||
Operating lease cost
|
$
|
1,068
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Variable lease cost
|
148
|
|
|
—
|
|
|
—
|
|
|||
Short-term lease cost
|
—
|
|
|
—
|
|
|
—
|
|
|||
Interest on lease liabilities (1)
|
113
|
|
|
—
|
|
|
—
|
|
|||
Amortization of right-of-use assets
|
96
|
|
|
—
|
|
|
—
|
|
|||
Net lease cost
|
$
|
1,425
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Other Information
|
|
|
|
|
|
||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
|
||||||
Operating cash flows from operating leases
|
$
|
989
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating cash flows from finance lease
|
113
|
|
|
—
|
|
|
—
|
|
|||
Finance cash flows from finance lease
|
113
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Right-of-use assets obtained in exchange for new operating lease liabilities
|
6,250
|
|
|
—
|
|
|
—
|
|
|||
Right-of-use assets obtained in exchange for new finance lease liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
Finance Leases
|
|
Operating Leases
|
||||
|
(in thousands)
|
||||||
Twelve Months Ended:
|
|
|
|
||||
December 31, 2020
|
$
|
231
|
|
|
$
|
1,114
|
|
December 31, 2021
|
235
|
|
|
1,074
|
|
||
December 31, 2022
|
240
|
|
|
973
|
|
||
December 31, 2023
|
245
|
|
|
912
|
|
||
December 31, 2024
|
250
|
|
|
682
|
|
||
Thereafter
|
426
|
|
|
2,132
|
|
||
Total undiscounted lease payments
|
$
|
1,627
|
|
|
$
|
6,887
|
|
Amounts representing interest
|
(402
|
)
|
|
(1,457
|
)
|
||
Lease liability
|
$
|
1,225
|
|
|
$
|
5,430
|
|
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
Balance Sheets
|
(in thousands)
|
||||||
Assets
|
|
|
|
||||
Cash
|
$
|
10,661
|
|
|
$
|
9,611
|
|
Investment in subsidiaries
|
575,508
|
|
|
372,595
|
|
||
Income tax receivable
|
1,182
|
|
|
117
|
|
||
Deferred income taxes
|
—
|
|
|
44
|
|
||
Bank-owned life insurance
|
5,127
|
|
|
4,999
|
|
||
Other assets
|
2,256
|
|
|
1,482
|
|
||
Total assets
|
$
|
594,734
|
|
|
$
|
388,848
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Long-term debt
|
$
|
84,736
|
|
|
$
|
31,388
|
|
Deferred income taxes
|
433
|
|
|
—
|
|
||
Other liabilities
|
583
|
|
|
393
|
|
||
Total liabilities
|
85,752
|
|
|
31,781
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Capital stock, preferred
|
—
|
|
|
—
|
|
||
Capital stock, common
|
16,581
|
|
|
12,463
|
|
||
Additional paid-in capital
|
297,390
|
|
|
187,813
|
|
||
Retained earnings
|
201,105
|
|
|
168,951
|
|
||
Treasury stock
|
(10,466
|
)
|
|
(6,499
|
)
|
||
Accumulated other comprehensive loss
|
4,372
|
|
|
(5,661
|
)
|
||
Total shareholders’ equity
|
508,982
|
|
|
357,067
|
|
||
Total liabilities and shareholders’ equity
|
$
|
594,734
|
|
|
$
|
388,848
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Statements of Income
|
(in thousands)
|
||||||||||
Dividends received from subsidiaries
|
$
|
15,000
|
|
|
$
|
25,017
|
|
|
$
|
6,500
|
|
Interest income and dividends on investment securities
|
84
|
|
|
43
|
|
|
47
|
|
|||
Investment securities gains
|
47
|
|
|
(48
|
)
|
|
—
|
|
|||
Interest on debt
|
(3,439
|
)
|
|
(1,596
|
)
|
|
(1,406
|
)
|
|||
Bank-owned life insurance income
|
130
|
|
|
127
|
|
|
126
|
|
|||
Income from MidWestOne Insurance Services, Inc.
|
943
|
|
|
—
|
|
|
—
|
|
|||
Operating expenses
|
(4,130
|
)
|
|
(2,940
|
)
|
|
(2,281
|
)
|
|||
Income before income taxes and equity in subsidiaries’ undistributed income
|
8,635
|
|
|
20,603
|
|
|
2,986
|
|
|||
Income tax benefit
|
(1,394
|
)
|
|
(823
|
)
|
|
(1,137
|
)
|
|||
Income before equity in subsidiaries’ undistributed income
|
10,029
|
|
|
21,426
|
|
|
4,123
|
|
|||
Equity in subsidiaries’ undistributed income
|
33,601
|
|
|
8,925
|
|
|
14,576
|
|
|||
Net income
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Statements of Cash Flows
|
(in thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
43,630
|
|
|
$
|
30,351
|
|
|
$
|
18,699
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Undistributed income of subsidiaries, net of dividends and distributions
|
(33,601
|
)
|
|
(8,925
|
)
|
|
(14,576
|
)
|
|||
Amortization
|
134
|
|
|
95
|
|
|
101
|
|
|||
Increase (decrease) in deferred income taxes, net
|
(43
|
)
|
|
(42
|
)
|
|
(93
|
)
|
|||
Stock-based compensation
|
1,156
|
|
|
1,030
|
|
|
868
|
|
|||
Gain on sale of assets of MidWestOne Insurance Services, Inc.
|
(1,076
|
)
|
|
—
|
|
|
—
|
|
|||
Increase in cash surrender value of bank-owned life insurance
|
(128
|
)
|
|
(127
|
)
|
|
(126
|
)
|
|||
Change in:
|
|
|
|
|
|
||||||
Other assets
|
(403
|
)
|
|
(405
|
)
|
|
1,617
|
|
|||
Other liabilities
|
(4
|
)
|
|
59
|
|
|
13
|
|
|||
Net cash provided by operating activities
|
9,665
|
|
|
22,036
|
|
|
6,503
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Proceeds from sales of available for sale securities
|
43
|
|
|
1
|
|
|
1
|
|
|||
Purchase of available for sale securities
|
(9
|
)
|
|
(10
|
)
|
|
(10
|
)
|
|||
Proceeds from sale of assets of MidWestOne Insurance Services, Inc.
|
1,175
|
|
|
—
|
|
|
—
|
|
|||
Cash and earnings transferred in dissolution of MidWestOne Insurance Services, Inc.
|
631
|
|
|
—
|
|
|
—
|
|
|||
Net cash paid in business acquisition
|
(18,624
|
)
|
|
—
|
|
|
—
|
|
|||
Investment in subsidiary
|
—
|
|
|
—
|
|
|
(16,200
|
)
|
|||
Net cash used in investing activities
|
(16,784
|
)
|
|
(9
|
)
|
|
(16,209
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net increase (decrease) in:
|
|
|
|
|
|
||||||
Long-term debt
|
24,750
|
|
|
(5,000
|
)
|
|
(5,000
|
)
|
|||
Proceeds from share-based award activity
|
—
|
|
|
137
|
|
|
100
|
|
|||
Taxes paid relating to net share settlement of equity awards
|
(103
|
)
|
|
(89
|
)
|
|
(114
|
)
|
|||
Dividends paid
|
(11,476
|
)
|
|
(9,535
|
)
|
|
(8,061
|
)
|
|||
Issuance of common stock
|
—
|
|
|
—
|
|
|
25,688
|
|
|||
Expenses incurred in stock issuance
|
(323
|
)
|
|
—
|
|
|
(1,328
|
)
|
|||
Repurchase of common stock
|
(4,679
|
)
|
|
(2,129
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
8,169
|
|
|
(16,616
|
)
|
|
11,285
|
|
|||
Net increase in cash
|
1,050
|
|
|
5,411
|
|
|
1,579
|
|
|||
Cash Balance:
|
|
|
|
|
|
||||||
Beginning
|
9,611
|
|
|
4,200
|
|
|
2,621
|
|
|||
Ending
|
$
|
10,661
|
|
|
$
|
9,611
|
|
|
$
|
4,200
|
|
|
Three Months Ended
|
||||||||||||||
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
||||||||
2019
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
50,026
|
|
|
$
|
54,076
|
|
|
$
|
44,951
|
|
|
$
|
33,388
|
|
Interest expense
|
10,442
|
|
|
10,818
|
|
|
10,119
|
|
|
7,412
|
|
||||
Net interest income
|
39,584
|
|
|
43,258
|
|
|
34,832
|
|
|
25,976
|
|
||||
Provision for loan losses
|
604
|
|
|
4,264
|
|
|
696
|
|
|
1,594
|
|
||||
Noninterest income
|
9,036
|
|
|
8,004
|
|
|
8,796
|
|
|
5,410
|
|
||||
Noninterest expense
|
36,436
|
|
|
31,442
|
|
|
29,040
|
|
|
20,617
|
|
||||
Income before income taxes
|
11,580
|
|
|
15,556
|
|
|
13,892
|
|
|
9,175
|
|
||||
Income tax expense
|
(1,791
|
)
|
|
3,256
|
|
|
3,218
|
|
|
1,890
|
|
||||
Net income
|
$
|
13,371
|
|
|
$
|
12,300
|
|
|
$
|
10,674
|
|
|
$
|
7,285
|
|
Net income per common share - basic
|
$
|
0.83
|
|
|
$
|
0.76
|
|
|
$
|
0.72
|
|
|
$
|
0.60
|
|
Net income per common share - diluted
|
$
|
0.83
|
|
|
$
|
0.76
|
|
|
$
|
0.72
|
|
|
$
|
0.60
|
|
2018
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
33,224
|
|
|
$
|
32,210
|
|
|
$
|
31,822
|
|
|
$
|
30,853
|
|
Interest expense
|
6,671
|
|
|
6,099
|
|
|
5,392
|
|
|
4,679
|
|
||||
Net interest income
|
26,553
|
|
|
26,111
|
|
|
26,430
|
|
|
26,174
|
|
||||
Provision for loan losses
|
3,250
|
|
|
950
|
|
|
1,250
|
|
|
1,850
|
|
||||
Noninterest income
|
5,796
|
|
|
6,045
|
|
|
5,693
|
|
|
5,681
|
|
||||
Noninterest expense
|
19,779
|
|
|
22,622
|
|
|
20,586
|
|
|
20,228
|
|
||||
Income before income taxes
|
9,320
|
|
|
8,584
|
|
|
10,287
|
|
|
9,777
|
|
||||
Income tax expense
|
1,696
|
|
|
1,806
|
|
|
2,131
|
|
|
1,984
|
|
||||
Net income
|
$
|
7,624
|
|
|
$
|
6,778
|
|
|
$
|
8,156
|
|
|
$
|
7,793
|
|
Net income per common share - basic
|
$
|
0.62
|
|
|
$
|
0.55
|
|
|
$
|
0.67
|
|
|
$
|
0.64
|
|
Net income per common share - diluted
|
$
|
0.62
|
|
|
$
|
0.55
|
|
|
$
|
0.67
|
|
|
$
|
0.64
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|
ITEM 9A.
|
CONTROLS AND PROCEDURES.
|
ITEM 9B.
|
OTHER INFORMATION.
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
|
ITEM 11.
|
EXECUTIVE COMPENSATION.
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
|
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
|
|
|
|
August 21, 2018, between MidWestOne Financial
|
|
filed with the SEC on August 22, 2018
|
|
|
Group, Inc. and ATBancorp+
|
|
|
|
|
|
|
|
|
First Amendment to the Agreement and Plan of Merger,
|
|
Exhibit 2.2 to the Company’s Current Report on Form 8-K
|
|
|
|
dated April 30, 2019, between MidWestOne Financial
|
|
filed with the SEC on May 1, 2019
|
|
|
Group, Inc. and ATBancorp
|
|
|
|
|
|
|
|
|
Amended and Restated Articles of Incorporation of
|
|
Exhibit 3.3 to the Company’s Amendment No. 1 to
|
|
|
|
MidWestOne 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
|
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filed with the SEC on January 23, 2009
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MidWestOne Financial Group, Inc. filed with the
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Secretary of State of the State of Iowa on
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January 23, 2009
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Articles of Amendment (Second Amendment) to the
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Exhibit 3.1 to the Company’s Current Report on Form 8-K
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Amended and Restated Articles of Incorporation of
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filed with the SEC on February 6, 2009
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MidWestOne Financial Group, Inc. filed with the
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Secretary of State of the State of Iowa on
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February 4, 2009 (containing the Certificate of
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Designations for the Company’s Fixed Rate
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Cumulative Perpetual Preferred Stock, Series A)
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Articles of Amendment (Third Amendment) to the
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Exhibit 3.1 to the Company’s Form 10-Q for the quarter
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Amended and Restated Articles of Incorporation of
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ended March 31, 2017, filed with the SEC on May 4, 2017
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MidWestOne Financial Group, Inc., filed with the Secretary
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of State of the State of Iowa on April 21, 2017
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Second Amended and Restated Bylaws of MidWestOne
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Exhibit 3.1 to the Company’s Current Report on Form 8-K
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Financial Group, Inc.
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filed with the SEC on February 1, 2017
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Amendment to Second Amended and Restated Bylaws of
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Exhibit 3.1 to the Company’s Current Report on Form 8-K
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MidWestOne Financial Group, Inc.
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filed with the SEC on May 1, 2019
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4.1
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Reference is made to Exhibits 3.1 through 3.6 hereof
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N/A
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Description of the Company’s Securities Registered
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Filed herewith
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Pursuant to Section 12 of the Securities Exchange Act of
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1934
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Exhibit
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Number
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Description
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Incorporated by Reference to:
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MidWestOne Financial Group, Inc. Employee Stock
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Filed herewith
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Ownership Plan and Trust (Restated as of January 1,
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2013)*
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ISB Financial Corp. (now known as MidWestOne
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Appendix F of the Joint Proxy Statement-Prospectus
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Financial Group, Inc.) 2008 Equity Incentive Plan*
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constituting part of the Company’s Amendment No. 2 to
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Registration Statement on Form S-4 (File No. 333-147628)
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filed with the SEC on January 22, 2008
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MidWestOne Financial Group, Inc. 2017 Equity
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Appendix A of the Company’s Definitive Proxy Statement on
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Incentive Plan*
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Schedule 14A filed with the SEC on March 10, 2017
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Form of MidWestOne Financial Group, Inc. 2017 Equity
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Exhibit 4.8 to the Company’s Registration Statement on Form
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Incentive Plan Restricted Stock Unit Award Agreement*
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S-8 (File No. 333-217718) filed with the SEC on May 5, 2017
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Employment Agreement between MidWestOne Financial
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Exhibit 10.1 to the Company’s Current Report on
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Group, Inc. and Charles N. Funk, dated October 18, 2017*
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Form 8-K filed with the SEC on October 18, 2017
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Supplemental Retirement Agreement between Iowa State
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Exhibit 10.13 of the Company’s Registration Statement on
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Bank & Trust Company (now known as MidWestOne
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Form S-4 (File No. 333-147628) filed with the SEC on
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Bank) and Charles N. Funk, dated November 1, 2001*
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November 27, 2007
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Employment Agreement between MidWestOne Financial
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Exhibit 10.5 to the Company’s Current Report on
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Group, Inc. and James M. Cantrell, dated October 18,
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Form 8-K filed with the SEC on October 18, 2017
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2017*
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Credit Agreement by and between MidWestOne
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Exhibit 10.1 to the Company’s Form 10-Q for the quarter
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Financial Group, Inc. and U.S. Bank National Association
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ended June 30, 2015 filed with the SEC on August 10, 2015
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dated April 30, 2015
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Fourth Amendment to the Credit Agreement by and
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Filed herewith
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between MidWestOne Financial Group, Inc. and U.S. Bank
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National Association dated April 29, 2019
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Employment Agreement between MidWestOne Financial
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Exhibit 10.1 to the Company’s Current Report on
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Group, Inc. and Barry S. Ray, effective June 4, 2018*
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Form 8-K filed with the SEC on May 4, 2018
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Employment Agreement between MidWestOne Financial
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Exhibit 10.1 to the Company’s Current Report on
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Group, Inc. and Gary L. Sims, effective June 25, 2018*
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Form 8-K filed with the SEC on June 11, 2018
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Change of Control Agreement between MidWestOne
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Exhibit 10.23 to the Company’s Annual Report on Form 10-K
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Financial Group, Inc. and David Lindstrom, effective
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filed with the SEC on March 8, 2019
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February 21, 2018*
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Change of Control Agreement between MidWestOne
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Filed herewith
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Financial Group, Inc. and Greg Turner, effective
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October 13, 2017*
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Subsidiaries of MidWestOne Financial Group, Inc.
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Filed herewith
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ITEM 16.
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FORM 10-K SUMMARY.
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MIDWESTONE FINANCIAL GROUP, INC.
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||
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Dated:
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March 6, 2020
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By:
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/s/ CHARLES N. FUNK
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Charles N. Funk
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President and Chief Executive Officer
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(Principal Executive Officer)
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By:
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/s/ BARRY S. RAY
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Barry S. Ray
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Senior Executive Vice President and Chief Financial
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Officer (Principal Financial and Accounting Officer)
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Signature
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Title
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Date
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/s/ CHARLES N. FUNK
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President and Chief Executive Officer;
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March 6, 2020
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Charles N. Funk
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Director (Principal Executive Officer)
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Senior Executive Vice President
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/s/ BARRY S. RAY
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and Chief Financial Officer
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March 6, 2020
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Barry S. Ray
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(Principal Financial and Accounting
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Officer)
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/s/ KEVIN W. MONSON
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Chairman of the Board
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March 6, 2020
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Kevin W. Monson
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/s/ LARRY D. ALBERT
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Director
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March 6, 2020
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Larry D. Albert
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/s/ RICHARD R. DONOHUE
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Director
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March 6, 2020
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Richard R. Donohue
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/s/ JANET E. GODWIN
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Director
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March 6, 2020
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Janet E. Godwin
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/s/ DOUGLAS H. GREEFF
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Director
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March 6, 2020
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Douglas H. Greeff
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/s/ RICHARD J. HARTIG
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Director
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March 6, 2020
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Richard J. Hartig
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/s/ JENNIFER L. HAUSCHILDT
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Director
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March 6, 2020
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Jennifer L. Hauschildt
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/s/ MATTHEW J. HAYEK
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Director
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March 6, 2020
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Matthew J. Hayek
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/s/ NATHANIEL J. KAEDING
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Director
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March 6, 2020
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Nathaniel J. Kaeding
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/s/ TRACY S. MCCORMICK
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Director
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March 6, 2020
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Tracy S. McCormick
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/s/ RUTH E. STANOCH
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Director
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March 6, 2020
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Ruth E. Stanoch
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/s/ DOUGLAS K. TRUE
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Director
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March 6, 2020
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Douglas K. True
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/s/ KURT R. WEISE
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Director
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March 6, 2020
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Kurt R. Weise
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Subsidiaries of the Company
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Organized Under the Laws of
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Percent Owned by the Company
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MidWestOne Bank
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State of Iowa
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100%
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MidWestOne Statutory Trust II
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State of Delaware
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100% of common securities
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Central Bancshares Capital Trust II
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State of Delaware
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100% of common securities
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Barron Investment Capital Trust I
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State of Delaware
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100% of common securities
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ATBancorp Statutory Trust I
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State of Delaware
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100% of common securities
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ATBancorp Statutory Trust II
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State of Delaware
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100% of common securities
|
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1)
|
I have reviewed this Annual Report on Form 10-K of MidWestOne Financial Group, Inc.;
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2)
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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;
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3)
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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;
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4)
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;
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b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
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d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting; and
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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):
|
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
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b)
|
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
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Charles N. Funk
|
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President and Chief Executive Officer
|
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Date:
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March 6, 2020
|
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1)
|
I have reviewed this Annual Report on Form 10-K of MidWestOne Financial Group, Inc.;
|
||
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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;
|
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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;
|
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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:
|
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a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;
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b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
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d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, the registrant’s internal control over financial reporting; and
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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):
|
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
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b)
|
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/ Barry S. Ray
|
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Barry S. Ray
|
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Senior Executive Vice President and Chief Financial Officer
|
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Date:
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March 6, 2020
|
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(a)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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|
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(b)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc.
|
/s/ Charles N. Funk
|
|
Charles N. Funk
|
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President and Chief Executive Officer
|
|
Date:
|
March 6, 2020
|
|
(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 MidWestOne Financial Group, Inc.
|
/s/ Barry S. Ray
|
|
Barry S. Ray
|
|
Senior Executive Vice President and Chief Financial Officer
|
|
Date:
|
March 6, 2020
|