Washington | 91-1857900 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
201 Fifth Avenue SW, | Olympia | WA | 98501 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Common stock, no par value | HFWA | NASDAQ |
Large accelerated filer | ☒ | Accelerated filer | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging | ☐ |
Page | ||||||||||||
PART I. | ||||||||||||
NOTE 1. | ||||||||||||
NOTE 2. | ||||||||||||
NOTE 3. | ||||||||||||
NOTE 4. | ||||||||||||
NOTE 5. | ||||||||||||
NOTE 6. | ||||||||||||
NOTE 7. | ||||||||||||
NOTE 8. | ||||||||||||
NOTE 9. | ||||||||||||
NOTE 10. | ||||||||||||
ITEM 2. | ||||||||||||
ITEM 3. | ||||||||||||
PART II. | OTHER INFORMATION | ||||||||||
2022 Annual Form 10-K | Company's Annual Report on Form 10-K for the year ended December 31, 2022 | ||||
ACL | Allowance for credit losses | ||||
AOCI | Accumulated other comprehensive income (loss), net | ||||
ASU | Accounting Standards Update | ||||
Bank | Heritage Bank | ||||
CECL | Current Expected Credit Loss | ||||
CMO | Collateralized Mortgage Obligation | ||||
Company | Heritage Financial Corporation | ||||
COVID-19 Pandemic | Coronavirus Disease of 2019 pandemic | ||||
CRE | Commercial real estate | ||||
FASB | Financial Accounting Standards Board | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
Federal Reserve | Board of Governors of the Federal Reserve System | ||||
Federal Reserve Bank | Federal Reserve Bank of San Francisco | ||||
GAAP | U.S. Generally Accepted Accounting Principles | ||||
LIBOR | London Interbank Offering Rate | ||||
LIHTC | Low-Income Housing Tax Credit | ||||
MBS | Mortgage-backed security | ||||
PPP | Paycheck Protection Program | ||||
SBA | Small Business Administration | ||||
SEC | Securities and Exchange Commission | ||||
SM | Special Mention | ||||
SS | Substandard | ||||
TDR | Troubled debt restructured |
September 30, 2017 | December 31, 2016 | |||||||
(Dollars in thousands) | ||||||||
ASSETS | ||||||||
Cash on hand and in banks | $ | 82,905 | $ | 77,117 | ||||
Interest earning deposits | 28,353 | 26,628 | ||||||
Cash and cash equivalents | 111,258 | 103,745 | ||||||
Investment securities available for sale, at fair value | 800,060 | 794,645 | ||||||
Loans held for sale | 5,368 | 11,662 | ||||||
Loans receivable, net | 2,797,513 | 2,640,749 | ||||||
Allowance for loan losses | (31,400 | ) | (31,083 | ) | ||||
Total loans receivable, net | 2,766,113 | 2,609,666 | ||||||
Other real estate owned | 523 | 754 | ||||||
Premises and equipment, net | 60,457 | 63,911 | ||||||
Federal Home Loan Bank stock, at cost | 9,343 | 7,564 | ||||||
Bank owned life insurance | 71,474 | 70,355 | ||||||
Accrued interest receivable | 12,295 | 10,925 | ||||||
Prepaid expenses and other assets | 87,728 | 79,351 | ||||||
Other intangible assets, net | 6,408 | 7,374 | ||||||
Goodwill | 119,029 | 119,029 | ||||||
Total assets | $ | 4,050,056 | $ | 3,878,981 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Deposits | $ | 3,320,818 | $ | 3,229,648 | ||||
Federal Home Loan Bank advances | 117,400 | 79,600 | ||||||
Junior subordinated debentures | 19,936 | 19,717 | ||||||
Securities sold under agreement to repurchase | 28,668 | 22,104 | ||||||
Accrued expenses and other liabilities | 55,626 | 46,149 | ||||||
Total liabilities | 3,542,448 | 3,397,218 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding at September 30, 2017 and December 31, 2016 | — | — | ||||||
Common stock, no par value, 50,000,000 shares authorized; 29,929,106 and 29,954,931 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 360,113 | 359,060 | ||||||
Retained earnings | 145,677 | 125,309 | ||||||
Accumulated other comprehensive income (loss), net | 1,818 | (2,606 | ) | |||||
Total stockholders’ equity | 507,608 | 481,763 | ||||||
Total liabilities and stockholders’ equity | $ | 4,050,056 | $ | 3,878,981 |
March 31, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Cash on hand and in banks | $ | 68,969 | $ | 74,295 | |||||||
Interest earning deposits | 232,512 | 29,295 | |||||||||
Cash and cash equivalents | 301,481 | 103,590 | |||||||||
Investment securities available for sale, at fair value, net (amortized cost of $1,424,969 and $1,460,033, respectively) | 1,318,072 | 1,331,443 | |||||||||
Investment securities held to maturity, at amortized cost, net (fair value of $684,647 and $673,434, respectively) | 760,163 | 766,396 | |||||||||
Total investment securities | 2,078,235 | 2,097,839 | |||||||||
Loans receivable | 4,127,472 | 4,050,858 | |||||||||
Allowance for credit losses on loans | (44,469) | (42,986) | |||||||||
Loans receivable, net | 4,083,003 | 4,007,872 | |||||||||
Premises and equipment, net | 80,094 | 76,930 | |||||||||
Federal Home Loan Bank stock, at cost | 23,697 | 8,916 | |||||||||
Bank owned life insurance | 122,767 | 122,059 | |||||||||
Accrued interest receivable | 18,548 | 18,547 | |||||||||
Prepaid expenses and other assets | 281,438 | 296,181 | |||||||||
Other intangible assets, net | 6,604 | 7,227 | |||||||||
Goodwill | 240,939 | 240,939 | |||||||||
Total assets | $ | 7,236,806 | $ | 6,980,100 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Deposits | $ | 5,771,787 | $ | 5,907,420 | |||||||
Deposits held for sale | 17,235 | 17,420 | |||||||||
Total deposits | 5,789,022 | 5,924,840 | |||||||||
Federal Home Loan Bank advances | 383,100 | — | |||||||||
Junior subordinated debentures | 21,546 | 21,473 | |||||||||
Securities sold under agreement to repurchase | 39,161 | 46,597 | |||||||||
Accrued expenses and other liabilities | 177,895 | 189,297 | |||||||||
Total liabilities | 6,410,724 | 6,182,207 | |||||||||
Commitments and contingencies (Note 10) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding, respectively | — | — | |||||||||
Common stock, no par value, 50,000,000 shares authorized; 35,108,120 and 35,106,697 shares issued and outstanding, respectively | 550,869 | 552,397 | |||||||||
Retained earnings | 358,010 | 345,346 | |||||||||
Accumulated other comprehensive loss, net | (82,797) | (99,850) | |||||||||
Total stockholders’ equity | 826,082 | 797,893 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,236,806 | $ | 6,980,100 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||||||
INTEREST INCOME: | INTEREST INCOME: | ||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 32,595 | $ | 30,915 | $ | 94,580 | $ | 91,595 | Interest and fees on loans | $ | 50,450 | $ | 41,025 | ||||||||||||||||||||||||||
Taxable interest on investment securities | 3,117 | 2,888 | 9,307 | 8,522 | Taxable interest on investment securities | 14,657 | 6,003 | ||||||||||||||||||||||||||||||||
Nontaxable interest on investment securities | 1,354 | 1,235 | 3,926 | 3,599 | Nontaxable interest on investment securities | 586 | 860 | ||||||||||||||||||||||||||||||||
Interest and dividends on other interest earning assets | 258 | 76 | 461 | 225 | |||||||||||||||||||||||||||||||||||
Interest on interest earning deposits | Interest on interest earning deposits | 972 | 706 | ||||||||||||||||||||||||||||||||||||
Total interest income | 37,324 | 35,114 | 108,274 | 103,941 | Total interest income | 66,665 | 48,594 | ||||||||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||||||
INTEREST EXPENSE: | INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||||||||
Deposits | 1,628 | 1,269 | 4,301 | 3,765 | Deposits | 4,528 | 1,424 | ||||||||||||||||||||||||||||||||
Junior subordinated debentures | 261 | 221 | 748 | 647 | Junior subordinated debentures | 482 | 194 | ||||||||||||||||||||||||||||||||
Other borrowings | 444 | 18 | 908 | 78 | Other borrowings | 1,813 | 32 | ||||||||||||||||||||||||||||||||
Total interest expense | 2,333 | 1,508 | 5,957 | 4,490 | Total interest expense | 6,823 | 1,650 | ||||||||||||||||||||||||||||||||
Net interest income | 34,991 | 33,606 | 102,317 | 99,451 | Net interest income | 59,842 | 46,944 | ||||||||||||||||||||||||||||||||
Provision for loan losses | 884 | 1,495 | 2,882 | 3,754 | |||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 34,107 | 32,111 | 99,435 | 95,697 | |||||||||||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||||||
Provision for (reversal of) credit losses | Provision for (reversal of) credit losses | 1,825 | (3,577) | ||||||||||||||||||||||||||||||||||||
Net interest income after provision for (reversal of) credit losses | Net interest income after provision for (reversal of) credit losses | 58,017 | 50,521 | ||||||||||||||||||||||||||||||||||||
NONINTEREST INCOME: | NONINTEREST INCOME: | ||||||||||||||||||||||||||||||||||||||
Service charges and other fees | 4,769 | 3,630 | 13,408 | 10,462 | Service charges and other fees | 2,624 | 2,474 | ||||||||||||||||||||||||||||||||
Gain on sale of investment securities, net | 44 | 345 | 161 | 1,106 | |||||||||||||||||||||||||||||||||||
Card revenue | Card revenue | 2,000 | 2,263 | ||||||||||||||||||||||||||||||||||||
Loss on sale of investment securities, net | Loss on sale of investment securities, net | (286) | — | ||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | 1,229 | 3,435 | 6,562 | 5,406 | Gain on sale of loans, net | 49 | 241 | ||||||||||||||||||||||||||||||||
Interest rate swap fees | 328 | 742 | 743 | 1,105 | Interest rate swap fees | 53 | 279 | ||||||||||||||||||||||||||||||||
Bank owned life insurance income | Bank owned life insurance income | 709 | 1,695 | ||||||||||||||||||||||||||||||||||||
Gain on sale of other assets, net | Gain on sale of other assets, net | 2 | 204 | ||||||||||||||||||||||||||||||||||||
Other income | 2,024 | 1,715 | 5,532 | 5,354 | Other income | 3,107 | 1,382 | ||||||||||||||||||||||||||||||||
Total noninterest income | 8,394 | 9,867 | 26,406 | 23,433 | Total noninterest income | 8,258 | 8,538 | ||||||||||||||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||||||||||
NONINTEREST EXPENSE: | NONINTEREST EXPENSE: | ||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 15,823 | 15,633 | 48,119 | 45,652 | Compensation and employee benefits | 25,536 | 21,252 | ||||||||||||||||||||||||||||||||
Occupancy and equipment | 3,979 | 3,926 | 11,607 | 11,873 | Occupancy and equipment | 4,892 | 4,331 | ||||||||||||||||||||||||||||||||
Data processing | 2,090 | 1,943 | 6,007 | 5,564 | Data processing | 4,342 | 4,061 | ||||||||||||||||||||||||||||||||
Marketing | 933 | 745 | 2,545 | 2,254 | Marketing | 402 | 266 | ||||||||||||||||||||||||||||||||
Professional services | 1,453 | 830 | 3,515 | 2,508 | Professional services | 628 | 699 | ||||||||||||||||||||||||||||||||
State and local taxes | 640 | 820 | 1,828 | 2,031 | |||||||||||||||||||||||||||||||||||
State/municipal business and use taxes | State/municipal business and use taxes | 1,008 | 796 | ||||||||||||||||||||||||||||||||||||
Federal deposit insurance premium | 433 | 296 | 1,090 | 1,316 | Federal deposit insurance premium | 850 | 600 | ||||||||||||||||||||||||||||||||
Other real estate owned, net | (88 | ) | (142 | ) | (36 | ) | 330 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 319 | 359 | 966 | 1,057 | Amortization of intangible assets | 623 | 704 | ||||||||||||||||||||||||||||||||
Other expense | 2,373 | 2,408 | 7,346 | 7,079 | Other expense | 3,324 | 3,011 | ||||||||||||||||||||||||||||||||
Total noninterest expense | 27,955 | 26,818 | 82,987 | 79,664 | Total noninterest expense | 41,605 | 35,720 | ||||||||||||||||||||||||||||||||
Income before income taxes | 14,546 | 15,160 | 42,854 | 39,466 | Income before income taxes | 24,670 | 23,339 | ||||||||||||||||||||||||||||||||
Income tax expense | 3,922 | 4,121 | 11,086 | 10,441 | Income tax expense | 4,213 | 3,582 | ||||||||||||||||||||||||||||||||
Net income | $ | 10,624 | $ | 11,039 | $ | 31,768 | $ | 29,025 | Net income | $ | 20,457 | $ | 19,757 | ||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.35 | $ | 0.37 | $ | 1.06 | $ | 0.97 | |||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.35 | $ | 0.37 | $ | 1.06 | $ | 0.97 | |||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.13 | $ | 0.12 | $ | 0.38 | $ | 0.35 | |||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.58 | $ | 0.56 | ||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.58 | $ | 0.56 | ||||||||||||||||||||||||||||||||||
Dividends declared per share | Dividends declared per share | $ | 0.22 | $ | 0.21 | ||||||||||||||||||||||||||||||||||
Average number of basic shares outstanding | Average number of basic shares outstanding | 35,108,390 | 35,094,725 | ||||||||||||||||||||||||||||||||||||
Average number of diluted shares outstanding | Average number of diluted shares outstanding | 35,445,340 | 35,412,098 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net Income | $ | 20,457 | $ | 19,757 | |||||||||||||||||||
Change in fair value of investment securities available for sale, net of tax of $4,517 and $(12,113), respectively | 16,890 | (43,482) | |||||||||||||||||||||
Amortization of net unrealized gain for the reclassification of investment securities available for sale to held to maturity, net of tax of $(15) and $(39), respectively | (60) | (142) | |||||||||||||||||||||
Reclassification adjustment for net loss from sale of investment securities available for sale included in income, net of tax of $63 and $0, respectively | 223 | — | |||||||||||||||||||||
Other comprehensive income (loss) | 17,053 | (43,624) | |||||||||||||||||||||
Comprehensive income (loss) | $ | 37,510 | $ | (23,867) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net income | $ | 10,624 | $ | 11,039 | $ | 31,768 | $ | 29,025 | ||||||||
Change in fair value of investment securities available for sale, net of tax of $157, $(570), $2,442 and $4,983, respectively | 289 | (1,055 | ) | 4,528 | 9,223 | |||||||||||
Reclassification adjustment for net gain from sale of investment securities available for sale included in income, net of tax of $(16), $(121), $(57) and $(388), respectively | (28 | ) | (224 | ) | (104 | ) | (718 | ) | ||||||||
Other comprehensive income (loss) | 261 | (1,279 | ) | 4,424 | 8,505 | |||||||||||
Comprehensive income | $ | 10,885 | $ | 9,760 | $ | 36,192 | $ | 37,530 |
Number of common shares | Common stock | Retained earnings | Accumulated other comprehensive income (loss), net | Total stock- holders’ equity | ||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||
Balance at December 31, 2015 | 29,975 | $ | 359,451 | $ | 107,960 | $ | 2,559 | $ | 469,970 | |||||||||
Restricted stock awards granted, net of forfeitures | 111 | — | — | — | — | |||||||||||||
Exercise of stock options (including excess tax benefits from nonqualified stock options) | 28 | 421 | — | — | 421 | |||||||||||||
Stock-based compensation expense | — | 1,367 | — | — | 1,367 | |||||||||||||
Net excess tax benefits from vesting of restricted stock | — | 99 | — | — | 99 | |||||||||||||
Common stock repurchased | (167 | ) | (2,887 | ) | — | — | (2,887 | ) | ||||||||||
Net income | — | — | 29,025 | — | 29,025 | |||||||||||||
Other comprehensive income, net of tax | — | — | — | 8,505 | 8,505 | |||||||||||||
Cash dividends declared on common stock ($0.35 per share) | — | — | (10,488 | ) | — | (10,488 | ) | |||||||||||
Balance at September 30, 2016 | 29,947 | $ | 358,451 | $ | 126,497 | $ | 11,064 | $ | 496,012 | |||||||||
Balance at December 31, 2016 | 29,955 | $ | 359,060 | $ | 125,309 | $ | (2,606 | ) | $ | 481,763 | ||||||||
Restricted stock awards forfeited | (10 | ) | — | — | — | — | ||||||||||||
Exercise of stock options | 12 | 159 | — | — | 159 | |||||||||||||
Stock-based compensation expense | — | 1,568 | — | — | 1,568 | |||||||||||||
Common stock repurchased | (28 | ) | (674 | ) | — | — | (674 | ) | ||||||||||
Net income | — | — | 31,768 | — | 31,768 | |||||||||||||
Other comprehensive income, net of tax | — | — | — | 4,424 | 4,424 | |||||||||||||
Cash dividends declared on common stock ($0.38 per share) | — | — | (11,400 | ) | — | (11,400 | ) | |||||||||||
Balance at September 30, 2017 | 29,929 | $ | 360,113 | $ | 145,677 | $ | 1,818 | $ | 507,608 |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Number of common shares | Common stock | Retained earnings | AOCI | Total stockholders’ equity | |||||||||||||||||||||||||
Balance at December 31, 2022 | 35,106,697 | $ | 552,397 | $ | 345,346 | $ | (99,850) | $ | 797,893 | ||||||||||||||||||||
Restricted stock units vested | 116,502 | — | — | — | — | ||||||||||||||||||||||||
Stock-based compensation expense | — | 1,099 | — | — | 1,099 | ||||||||||||||||||||||||
Common stock repurchased | (115,079) | (2,627) | — | — | (2,627) | ||||||||||||||||||||||||
Net income | — | — | 20,457 | — | 20,457 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 17,053 | 17,053 | ||||||||||||||||||||||||
Cash dividends declared on common stock ($0.22 per share) | — | — | (7,793) | — | (7,793) | ||||||||||||||||||||||||
Balance at March 31, 2023 | 35,108,120 | $ | 550,869 | $ | 358,010 | $ | (82,797) | $ | 826,082 |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Number of common shares | Common stock | Retained earnings | AOCI | Total stockholders’ equity | |||||||||||||||||||||||||
Balance at December 31, 2021 | 35,105,779 | $ | 551,798 | $ | 293,238 | $ | 9,396 | $ | 854,432 | ||||||||||||||||||||
Restricted stock units vested | 101,683 | — | — | — | — | ||||||||||||||||||||||||
Stock-based compensation expense | — | 950 | — | — | 950 | ||||||||||||||||||||||||
Common stock repurchased | (105,090) | (2,652) | — | — | (2,652) | ||||||||||||||||||||||||
Net income | — | — | 19,757 | — | 19,757 | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (43,624) | (43,624) | ||||||||||||||||||||||||
Cash dividends declared on common stock ($0.21 per share) | — | — | (7,414) | — | (7,414) | ||||||||||||||||||||||||
Balance at March 31, 2022 | 35,102,372 | $ | 550,096 | $ | 305,581 | $ | (34,228) | $ | 821,449 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
(Dollars in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 31,768 | $ | 29,025 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 8,117 | 9,543 | ||||||
Changes in net deferred loan costs, net of amortization | (656 | ) | (971 | ) | ||||
Provision for loan losses | 2,882 | 3,754 | ||||||
Net change in accrued interest receivable, prepaid expenses and other assets, accrued expenses and other liabilities | 8,315 | (193 | ) | |||||
Stock-based compensation expense | 1,568 | 1,367 | ||||||
Net excess tax benefit from exercise of stock options and vesting of restricted stock | — | (119 | ) | |||||
Amortization of intangible assets | 966 | 1,057 | ||||||
Origination of loans held for sale | (82,767 | ) | (99,513 | ) | ||||
Proceeds from sale of loans | 91,576 | 101,574 | ||||||
Earnings on bank owned life insurance | (1,108 | ) | (1,086 | ) | ||||
Valuation adjustment on other real estate owned | — | 383 | ||||||
Gain on sale of loans, net | (6,562 | ) | (5,406 | ) | ||||
Gain on sale of investment securities, net | (161 | ) | (1,106 | ) | ||||
Gain on sale of assets held for sale | (53 | ) | — | |||||
Gain on sale of other real estate owned, net | (111 | ) | (173 | ) | ||||
Loss on sale or write-off of furniture, equipment and leasehold improvements | 12 | 107 | ||||||
Net cash provided by operating activities | 53,786 | 38,243 | ||||||
Cash flows from investing activities: | ||||||||
Loans originated, net of principal payments | (178,800 | ) | (190,798 | ) | ||||
Maturities of other interest earning deposits | — | 1,248 | ||||||
Maturities, calls and payments of investment securities available for sale | 75,800 | 94,328 | ||||||
Purchase of investment securities available for sale | (101,017 | ) | (188,164 | ) | ||||
Purchase of premises and equipment | (2,221 | ) | (5,128 | ) | ||||
Proceeds from sales of other loans | 24,142 | 12,931 | ||||||
Proceeds from sales of other real estate owned | 374 | 2,486 | ||||||
Proceeds from sales of investment securities available for sale | 21,850 | 94,380 | ||||||
Proceeds from sale of assets held for sale | 265 | — | ||||||
Proceeds from redemption of Federal Home Loan Bank stock | 21,788 | 15,416 | ||||||
Purchases of Federal Home Loan Bank stock | (23,567 | ) | (16,356 | ) | ||||
Proceeds from sale of premises and equipment | — | 659 | ||||||
Purchase of bank owned life insurance | — | (8,000 | ) | |||||
Capital contribution to low-income housing tax credit partnership | (8,506 | ) | (3,315 | ) | ||||
Net cash used in investing activities | (169,892 | ) | (190,313 | ) |
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 20,457 | $ | 19,757 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion | 807 | (1,572) | |||||||||
Provision for (reversal of) credit losses | 1,825 | (3,577) | |||||||||
Stock-based compensation expense | 1,099 | 950 | |||||||||
Amortization of intangible assets | 623 | 704 | |||||||||
Origination of mortgage loans held for sale | (1,351) | (5,833) | |||||||||
Proceeds from sale of mortgage loans held for sale | 1,400 | 6,408 | |||||||||
Bank owned life insurance income | (709) | (1,695) | |||||||||
Valuation adjustment on interest rate swaps | — | (53) | |||||||||
Gain on sale of mortgage loans held for sale, net | (49) | (241) | |||||||||
Loss on sale of investment securities available for sale, net | 286 | — | |||||||||
Gain on sale of assets held for sale | — | (204) | |||||||||
Other | (991) | (3,716) | |||||||||
Net cash provided by operating activities | 23,397 | 10,928 | |||||||||
Cash flows from investing activities: | |||||||||||
Loan originations and purchases, net of payments | (75,839) | (988) | |||||||||
Maturities and repayments of investment securities available for sale | 26,949 | 42,327 | |||||||||
Maturities and repayments of investment securities held to maturity | 5,995 | 6,644 | |||||||||
Purchase of investment securities available for sale | (14,994) | (244,409) | |||||||||
Purchase of investment securities held to maturity | — | (45,849) | |||||||||
Purchase of premises and equipment | (4,653) | (724) | |||||||||
Purchase of bank owned life insurance | — | (105) | |||||||||
Purchases of Federal Home Loan Bank stock | (28,604) | (983) | |||||||||
Proceeds from sales of investment securities available for sale | 22,688 | — | |||||||||
Proceeds from redemption of Federal Home Loan Bank stock | 13,823 | — | |||||||||
Proceeds from sales of premises and equipment | 2 | 1,173 | |||||||||
Capital contributions to low-income housing tax credit partnerships | (369) | — | |||||||||
Net cash provided by investing activities | (55,002) | (242,914) | |||||||||
Cash flows from financing activities: | |||||||||||
Net (decrease) increase in deposits | (135,818) | 97,210 | |||||||||
Federal Home Loan Bank advances | 715,100 | — | |||||||||
Repayment of Federal Home Loan Bank advances | (332,000) | — | |||||||||
Common stock cash dividends paid | (7,723) | (7,372) | |||||||||
Net decrease in securities sold under agreement to repurchase | (7,436) | (1,770) | |||||||||
Repurchase of common stock | (2,627) | (2,652) | |||||||||
Net cash provided by financing activities | 229,496 | 85,416 | |||||||||
Net increase (decrease) in cash and cash equivalents | 197,891 | (146,570) | |||||||||
Cash and cash equivalents at beginning of period | 103,590 | 1,723,292 | |||||||||
Cash and cash equivalents at end of period | $ | 301,481 | $ | 1,576,722 | |||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest | $ | 6,501 | $ | 1,555 | |||||||
Supplemental non-cash disclosures of cash flow information: | |||||||||||
Investment in LIHTC partnership and related funding commitment | 12 | 670 | |||||||||
Right of use assets obtained in exchange for new operating lease liabilities | 1,296 | 55 | |||||||||
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
(Dollars in thousands) | ||||||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 91,170 | 134,134 | ||||||
Federal Home Loan Bank advances | 582,500 | 403,100 | ||||||
Repayments of Federal Home Loan Bank advances | (544,700 | ) | (385,400 | ) | ||||
Common stock cash dividends paid | (11,400 | ) | (10,488 | ) | ||||
Net increase (decrease) in securities sold under agreement to repurchase | 6,564 | (789 | ) | |||||
Proceeds from exercise of stock options | 159 | 401 | ||||||
Net excess tax benefit from exercise of stock options and vesting of restricted stock | — | 119 | ||||||
Repurchase of common stock | (674 | ) | (2,887 | ) | ||||
Net cash provided by financing activities | 123,619 | 138,190 | ||||||
Net increase (decrease) in cash and cash equivalents | 7,513 | (13,880 | ) | |||||
Cash and cash equivalents at beginning of period | 103,745 | 126,640 | ||||||
Cash and cash equivalents at end of period | $ | 111,258 | $ | 112,760 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 6,024 | $ | 4,533 | ||||
Cash paid for income taxes | 1,500 | 9,000 | ||||||
Supplemental non-cash disclosures of cash flow information: | ||||||||
Transfers of loans receivable to other real estate owned | $ | 32 | $ | 677 | ||||
Transfers of premises and equipment, net to prepaid expenses and other assets for properties held for sale | 2,687 | — | ||||||
Investment in low income housing tax credit partnership and related funding commitment | 14,267 | 19,663 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
September 30, 2017 | |||||||||||||||
U.S. Treasury and U.S. Government-sponsored agencies | $ | 9,464 | $ | 12 | $ | (73 | ) | $ | 9,403 | ||||||
Municipal securities | 248,420 | 5,429 | (1,043 | ) | 252,806 | ||||||||||
Mortgage-backed securities and collateralized mortgage obligations(1): | |||||||||||||||
Residential | 275,128 | 879 | (1,646 | ) | 274,361 | ||||||||||
Commercial | 214,793 | 699 | (2,209 | ) | 213,283 | ||||||||||
Collateralized loan obligations | 6,007 | 15 | — | 6,022 | |||||||||||
Corporate obligations | 15,583 | 247 | — | 15,830 | |||||||||||
Other securities | 27,850 | 505 | — | 28,355 | |||||||||||
Total | $ | 797,245 | $ | 7,786 | $ | (4,971 | ) | $ | 800,060 | ||||||
December 31, 2016 | |||||||||||||||
U.S. Treasury and U.S. Government-sponsored agencies | $ | 1,563 | $ | 6 | $ | — | $ | 1,569 | |||||||
Municipal securities | 237,305 | 2,427 | (2,476 | ) | 237,256 | ||||||||||
Mortgage-backed securities and collateralized mortgage obligations(1): | |||||||||||||||
Residential | 310,391 | 985 | (2,200 | ) | 309,176 | ||||||||||
Commercial | 211,259 | 599 | (3,540 | ) | 208,318 | ||||||||||
Collateralized loan obligations | 10,505 | 4 | (31 | ) | 10,478 | ||||||||||
Corporate obligations | 16,611 | 104 | (9 | ) | 16,706 | ||||||||||
Other securities | 11,005 | 156 | (19 | ) | 11,142 | ||||||||||
Total | $ | 798,639 | $ | 4,281 | $ | (8,275 | ) | $ | 794,645 |
March 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. government and agency securities | $ | 68,514 | $ | — | $ | (3,964) | $ | 64,550 | |||||||||||||||
Municipal securities | 146,525 | 218 | (14,246) | 132,497 | |||||||||||||||||||
Residential CMO and MBS | 481,380 | — | (47,668) | 433,712 | |||||||||||||||||||
Commercial CMO and MBS | 704,156 | 47 | (40,706) | 663,497 | |||||||||||||||||||
Corporate obligations | 4,000 | — | (183) | 3,817 | |||||||||||||||||||
Other asset-backed securities | 20,394 | — | (395) | 19,999 | |||||||||||||||||||
Total | $ | 1,424,969 | $ | 265 | $ | (107,162) | $ | 1,318,072 | |||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||
U.S. government and agency securities | $ | 150,969 | $ | — | $ | (28,298) | $ | 122,671 | |||||||||||||||
Residential CMO and MBS | 285,337 | 12 | (12,315) | 273,034 | |||||||||||||||||||
Commercial CMO and MBS | 323,857 | — | (34,915) | 288,942 | |||||||||||||||||||
Total | $ | 760,163 | $ | 12 | $ | (75,528) | $ | 684,647 |
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. government and agency securities | $ | 68,912 | $ | — | $ | (5,053) | $ | 63,859 | |||||||||||||||
Municipal securities | 171,087 | 172 | (18,233) | 153,026 | |||||||||||||||||||
Residential CMO and MBS | 479,473 | — | (55,087) | 424,386 | |||||||||||||||||||
Commercial CMO and MBS | 714,136 | 19 | (49,734) | 664,421 |
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Corporate obligations | 4,000 | — | (166) | 3,834 | |||||||||||||||||||
Other asset-backed securities | 22,425 | 14 | (522) | 21,917 | |||||||||||||||||||
Total | $ | 1,460,033 | $ | 205 | $ | (128,795) | $ | 1,331,443 | |||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||
U.S. government and agency securities | $ | 150,936 | $ | — | $ | (33,585) | $ | 117,351 | |||||||||||||||
Residential CMO and MBS | 290,318 | — | (17,440) | 272,878 | |||||||||||||||||||
Commercial CMO and MBS | 325,142 | — | (41,937) | 283,205 | |||||||||||||||||||
Total | $ | 766,396 | $ | — | $ | (92,962) | $ | 673,434 |
March 31, 2023 | |||||||||||||||||||||||
Securities Available for Sale | Securities Held to Maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Due in one year or less | $ | 29,254 | $ | 28,962 | $ | — | $ | — | |||||||||||||||
Due after one year through five years | 38,323 | 36,884 | — | — | |||||||||||||||||||
Due after five years through ten years | 43,983 | 41,429 | 83,235 | 70,107 | |||||||||||||||||||
Due after ten years | 107,479 | 93,589 | 67,734 | 52,564 | |||||||||||||||||||
Total investment securities due at a single maturity date | 219,039 | 200,864 | 150,969 | 122,671 | |||||||||||||||||||
Mortgage-backed securities (1) | 1,205,930 | 1,117,208 | 609,194 | 561,976 | |||||||||||||||||||
Total investment securities | $ | 1,424,969 | $ | 1,318,072 | $ | 760,163 | $ | 684,647 |
Amortized Cost | Fair Value | ||||||
(In thousands) | |||||||
Due in one year or less | $ | 6,556 | $ | 6,595 | |||
Due after one year through five years | 121,518 | 122,740 | |||||
Due after five years through ten years | 248,291 | 248,603 | |||||
Due after ten years | 420,835 | 421,972 | |||||
Investment securities with no stated maturities | 45 | 150 | |||||
Total | $ | 797,245 | $ | 800,060 |
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | — | $ | — | $ | 64,550 | $ | (3,964) | $ | 64,550 | $ | (3,964) | |||||||||||||||||||||||
Municipal securities | 5,677 | (37) | 92,518 | (14,209) | 98,195 | (14,246) | |||||||||||||||||||||||||||||
Residential CMO and MBS(1) | 142,665 | (3,401) | 291,047 | (44,267) | 433,712 | (47,668) | |||||||||||||||||||||||||||||
Commercial CMO and MBS(1) | 350,217 | (7,332) | 289,192 | (33,374) | 639,409 | (40,706) |
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Corporate obligations | 3,817 | (183) | — | — | 3,817 | (183) | |||||||||||||||||||||||||||||
Other asset-backed securities | 9,248 | (52) | 10,145 | (343) | 19,393 | (395) | |||||||||||||||||||||||||||||
Total | $ | 511,624 | $ | (11,005) | $ | 747,452 | $ | (96,157) | $ | 1,259,076 | $ | (107,162) |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 51,900 | $ | (2,031) | $ | 11,959 | $ | (3,022) | $ | 63,859 | $ | (5,053) | |||||||||||||||||||||||
Municipal securities | 82,580 | (5,585) | 40,945 | (12,648) | 123,525 | (18,233) | |||||||||||||||||||||||||||||
Residential CMO and MBS(1) | 217,949 | (14,770) | 206,437 | (40,317) | 424,386 | (55,087) | |||||||||||||||||||||||||||||
Commercial CMO and MBS(1) | 473,580 | (16,971) | 181,692 | (32,763) | 655,272 | (49,734) | |||||||||||||||||||||||||||||
Corporate obligations | 3,834 | (166) | — | — | 3,834 | (166) | |||||||||||||||||||||||||||||
Other asset-backed securities | 16,489 | (510) | 721 | (12) | 17,210 | (522) | |||||||||||||||||||||||||||||
Total | $ | 846,332 | $ | (40,033) | $ | 441,754 | $ | (88,762) | $ | 1,288,086 | $ | (128,795) |
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
U.S. Treasury and U.S. Government-sponsored agencies | $ | 6,484 | $ | (73 | ) | $ | — | $ | — | $ | 6,484 | $ | (73 | ) | |||||||||
Municipal securities | 24,415 | (362 | ) | 23,629 | (681 | ) | 48,044 | (1,043 | ) | ||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations(1): | |||||||||||||||||||||||
Residential | 135,648 | (1,111 | ) | 23,937 | (535 | ) | 159,585 | (1,646 | ) | ||||||||||||||
Commercial | 112,595 | (1,478 | ) | 38,099 | (731 | ) | 150,694 | (2,209 | ) | ||||||||||||||
Total | $ | 279,142 | $ | (3,024 | ) | $ | 85,665 | $ | (1,947 | ) | $ | 364,807 | $ | (4,971 | ) | ||||||||
December 31, 2016 | |||||||||||||||||||||||
Municipal securities | $ | 90,188 | $ | (2,476 | ) | $ | — | $ | — | $ | 90,188 | $ | (2,476 | ) | |||||||||
Mortgage-backed securities and collateralized mortgage obligations(1): | |||||||||||||||||||||||
Residential | 181,562 | (2,148 | ) | 10,854 | (52 | ) | 192,416 | (2,200 | ) | ||||||||||||||
Commercial | 157,055 | (3,446 | ) | 12,597 | (94 | ) | 169,652 | (3,540 | ) | ||||||||||||||
Collateralized loan obligations | 2,976 | (1 | ) | 2,969 | (30 | ) | 5,945 | (31 | ) | ||||||||||||||
Corporate obligations | 4,032 | (9 | ) | — | — | 4,032 | (9 | ) | |||||||||||||||
Other securities | 6,998 | (19 | ) | — | — | 6,998 | (19 | ) | |||||||||||||||
Total | $ | 442,811 | $ | (8,099 | ) | $ | 26,420 | $ | (176 | ) | $ | 469,231 | $ | (8,275 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Gross realized gains | $ | 36 | $ | — | |||||||||||||||||||
Gross realized losses | (322) | — | |||||||||||||||||||||
Net realized loss | $ | (286) | $ | — |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Washington and Oregon state public deposits | $ | 214,331 | $ | 203,452 | $ | 156,784 | $ | 137,931 | |||||||||||||||
Federal Reserve Bank credit facility | 656,858 | 588,576 | 60,660 | 49,506 | |||||||||||||||||||
Securities sold under agreement to repurchase | 49,795 | 45,832 | 63,685 | 55,836 | |||||||||||||||||||
Other securities pledged | 54,341 | 48,846 | 54,910 | 48,358 | |||||||||||||||||||
Total | $ | 975,325 | $ | 886,706 | $ | 336,039 | $ | 291,631 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Washington and Oregon state to secure public deposits | $ | 40,997 | $ | 40,772 | $ | 214,834 | $ | 215,247 | |||||||
Repurchase agreements | 12,620 | 12,724 | 29,481 | 29,294 | |||||||||||
Other securities pledged | 201,783 | 203,482 | 3,557 | 3,546 | |||||||||||
Total | $ | 255,400 | $ | 256,978 | $ | 247,872 | $ | 248,087 |
March 31, 2023 | December 31, 2022 | ||||||||||
(In thousands) | |||||||||||
Commercial business: | |||||||||||
Commercial and industrial | $ | 684,998 | $ | 692,100 | |||||||
SBA PPP | 900 | 1,468 | |||||||||
Owner-occupied CRE | 949,064 | 937,040 |
September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Commercial business: | |||||||
Commercial and industrial | $ | 665,582 | $ | 637,773 | |||
Owner-occupied commercial real estate | 602,238 | 558,035 | |||||
Non-owner occupied commercial real estate | 930,188 | 880,880 | |||||
Total commercial business | 2,198,008 | 2,076,688 | |||||
One-to-four family residential | 81,422 | 77,391 | |||||
Real estate construction and land development: | |||||||
One-to-four family residential | 51,451 | 50,414 | |||||
Five or more family residential and commercial properties | 122,981 | 108,764 | |||||
Total real estate construction and land development | 174,432 | 159,178 | |||||
Consumer | 340,643 | 325,140 | |||||
Gross loans receivable | 2,794,505 | 2,638,397 | |||||
Net deferred loan costs | 3,008 | 2,352 | |||||
Loans receivable, net | 2,797,513 | 2,640,749 | |||||
Allowance for loan losses | (31,400 | ) | (31,083 | ) | |||
Total loans receivable, net | $ | 2,766,113 | $ | 2,609,666 |
March 31, 2023 | December 31, 2022 | ||||||||||
(In thousands) | |||||||||||
Non-owner occupied CRE | 1,601,789 | 1,586,632 | |||||||||
Total commercial business | 3,236,751 | 3,217,240 | |||||||||
Residential real estate | 363,777 | 343,631 | |||||||||
Real estate construction and land development: | |||||||||||
Residential | 72,926 | 80,074 | |||||||||
Commercial and multifamily | 270,547 | 214,038 | |||||||||
Total real estate construction and land development | 343,473 | 294,112 | |||||||||
Consumer | 183,471 | 195,875 | |||||||||
Loans receivable | 4,127,472 | 4,050,858 | |||||||||
Allowance for credit losses on loans | (44,469) | (42,986) | |||||||||
Loans receivable, net | $ | 4,083,003 | $ | 4,007,872 | |||||||
Balances included in the amortized cost of loans receivable: | |||||||||||
Unamortized net discount on acquired loans | $ | (2,249) | $ | (2,501) | |||||||
Unamortized net deferred fee | $ | (10,355) | $ | (10,016) |
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans Converted (1) | Loans Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 21,299 | $ | 171,005 | $ | 91,228 | $ | 79,267 | $ | 54,430 | $ | 98,811 | $ | 126,167 | $ | 118 | $ | 642,325 | |||||||||||||||||||||||||||||||||||
SM | — | 200 | 206 | 434 | 4,567 | 5,415 | 17,784 | — | 28,606 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | 1,130 | 176 | 1,642 | 3,326 | 4,854 | 2,939 | — | 14,067 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 21,299 | 172,335 | 91,610 | 81,343 | 62,323 | 109,080 | 146,890 | 118 | 684,998 | ||||||||||||||||||||||||||||||||||||||||||||
SBA PPP | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | — | — | 804 | 96 | — | — | — | — | 900 | ||||||||||||||||||||||||||||||||||||||||||||
Owner-occupied CRE | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 27,989 | 134,625 | 167,906 | 90,118 | 155,172 | 332,083 | — | — | 907,893 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | — | 1,971 | 2,041 | — | 19,274 | — | — | 23,286 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | 667 | — | 17,218 | — | — | 17,885 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 27,989 | 134,625 | 169,877 | 92,826 | 155,172 | 368,575 | — | — | 949,064 | ||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied CRE | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 48,286 | 242,245 | 185,064 | 159,050 | 245,235 | 671,604 | — | — | 1,551,484 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | — | 8,304 | — | 584 | 27,788 | — | — | 36,676 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | — | — | 13,629 | — | — | 13,629 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 48,286 | 242,245 | 193,368 | 159,050 | 245,819 | 713,021 | — | — | 1,601,789 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial business | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 97,574 | 547,875 | 445,002 | 328,531 | 454,837 | 1,102,498 | 126,167 | 118 | 3,102,602 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | 200 | 10,481 | 2,475 | 5,151 | 52,477 | 17,784 | — | 88,568 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | 1,130 | 176 | 2,309 | 3,326 | 35,701 | 2,939 | — | 45,581 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 97,574 | 549,205 | 455,659 | 333,315 | 463,314 | 1,190,676 | 146,890 | 118 | 3,236,751 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial business gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period | — | — | — | 61 | — | 100 | — | — | 161 | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass(1) | 18,666 | 133,415 | 151,041 | 25,500 | 16,680 | 18,232 | — | — | 363,534 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | 74 | — | 169 | — | — | 243 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 18,666 | 133,415 | 151,041 | 25,574 | 16,680 | 18,401 | — | — | 363,777 | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate gross charge-offs: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 4,995 | 44,885 | 16,392 | 1,804 | 2,969 | 1,881 | — | — | 72,926 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 6,245 | 105,433 | 139,246 | 6,721 | 794 | 3,457 | — | — | 261,896 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | — | — | 2,577 | 5,687 | — | — | — | 8,264 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | — | — | 387 | — | — | 387 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 6,245 | 105,433 | 139,246 | 9,298 | 6,481 | 3,844 | — | — | 270,547 |
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans Converted (1) | Loans Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate construction and land development | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 11,240 | 150,318 | 155,638 | 8,525 | 3,763 | 5,338 | — | — | 334,822 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | — | — | 2,577 | 5,687 | — | — | — | 8,264 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | — | — | 387 | — | — | 387 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 11,240 | 150,318 | 155,638 | 11,102 | 9,450 | 5,725 | — | — | 343,473 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction and land development gross writeoffs: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 823 | 2,956 | 466 | 8,827 | 24,015 | 31,315 | 112,073 | 383 | 180,858 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | 11 | 191 | 515 | 1,328 | 561 | 7 | 2,613 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 823 | 2,956 | 477 | 9,018 | 24,530 | 32,643 | 112,634 | 390 | 183,471 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer gross charge-offs: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period | — | — | — | 8 | 39 | 35 | 71 | — | 153 | ||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 128,303 | 834,564 | 752,147 | 371,383 | 499,295 | 1,157,383 | 238,240 | 501 | 3,981,816 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | 200 | 10,481 | 5,052 | 10,838 | 52,477 | 17,784 | — | 96,832 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | 1,130 | 187 | 2,574 | 3,841 | 37,585 | 3,500 | 7 | 48,824 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 128,303 | $ | 835,894 | $ | 762,815 | $ | 379,009 | $ | 513,974 | $ | 1,247,445 | $ | 259,524 | $ | 508 | $ | 4,127,472 | |||||||||||||||||||||||||||||||||||
Gross writeoffs: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period total | $ | — | $ | — | $ | — | $ | 69 | $ | 39 | $ | 135 | $ | 71 | $ | — | $ | 314 |
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans Converted (1) | Loans Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 168,818 | $ | 93,302 | $ | 82,437 | $ | 61,160 | $ | 33,957 | $ | 74,181 | $ | 146,795 | $ | 172 | $ | 660,822 | |||||||||||||||||||||||||||||||||||
SM | 212 | 109 | 443 | 4,637 | 362 | 4,447 | 5,433 | — | 15,643 | ||||||||||||||||||||||||||||||||||||||||||||
SS | 773 | 188 | 1,710 | 3,465 | 559 | 5,098 | 3,674 | 168 | 15,635 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 169,803 | 93,599 | 84,590 | 69,262 | 34,878 | 83,726 | 155,902 | 340 | 692,100 | ||||||||||||||||||||||||||||||||||||||||||||
SBA PPP | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | — | 1,351 | 117 | — | — | — | — | — | 1,468 | ||||||||||||||||||||||||||||||||||||||||||||
Owner-occupied CRE | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 134,432 | 167,927 | 93,834 | 157,096 | 62,876 | 282,212 | — | — | 898,377 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | 1,744 | — | — | 2,540 | 16,664 | — | 247 | 21,195 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | 671 | — | 3,722 | 13,075 | — | — | 17,468 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 134,432 | 169,671 | 94,505 | 157,096 | 69,138 | 311,951 | — | 247 | 937,040 | ||||||||||||||||||||||||||||||||||||||||||||
Non-owner-occupied CRE | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 240,151 | 189,300 | 160,930 | 258,778 | 121,369 | 561,645 | — | — | 1,532,173 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | 8,349 | — | 4,172 | — | 12,190 | — | — | 24,711 |
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans Converted (1) | Loans Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | — | 3,627 | 26,121 | — | — | 29,748 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 240,151 | 197,649 | 160,930 | 262,950 | 124,996 | 599,956 | — | — | 1,586,632 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial business | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 543,401 | 451,880 | 337,318 | 477,034 | 218,202 | 918,038 | 146,795 | 172 | 3,092,840 | ||||||||||||||||||||||||||||||||||||||||||||
SM | 212 | 10,202 | 443 | 8,809 | 2,902 | 33,301 | 5,433 | 247 | 61,549 | ||||||||||||||||||||||||||||||||||||||||||||
SS | 773 | 188 | 2,381 | 3,465 | 7,908 | 44,294 | 3,674 | 168 | 62,851 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 544,386 | 462,270 | 340,142 | 489,308 | 229,012 | 995,633 | 155,902 | 587 | 3,217,240 | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 132,510 | 149,934 | 24,668 | 16,803 | 4,207 | 15,337 | — | — | 343,459 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | — | — | 172 | — | — | 172 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 132,510 | 149,934 | 24,668 | 16,803 | 4,207 | 15,509 | — | — | 343,631 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 45,521 | 26,675 | 2,891 | 3,061 | 871 | 1,055 | — | — | 80,074 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 71,168 | 123,626 | 6,272 | 1,084 | 2,562 | 995 | — | — | 205,707 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | — | 2,213 | 5,687 | — | — | — | — | 7,900 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | 37 | — | 394 | — | — | 431 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 71,168 | 123,626 | 8,485 | 6,808 | 2,562 | 1,389 | — | — | 214,038 | ||||||||||||||||||||||||||||||||||||||||||||
Total real estate construction and land development | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 116,689 | 150,301 | 9,163 | 4,145 | 3,433 | 2,050 | — | — | 285,781 | ||||||||||||||||||||||||||||||||||||||||||||
SM | — | — | 2,213 | 5,687 | — | — | — | — | 7,900 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | — | 37 | — | 394 | — | — | 431 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 116,689 | 150,301 | 11,376 | 9,869 | 3,433 | 2,444 | — | — | 294,112 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 3,379 | 509 | 9,848 | 27,370 | 15,563 | 19,855 | 116,605 | 435 | 193,564 | ||||||||||||||||||||||||||||||||||||||||||||
SS | — | — | 168 | 559 | 320 | 1,120 | 44 | 100 | 2,311 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 3,379 | 509 | 10,016 | 27,929 | 15,883 | 20,975 | 116,649 | 535 | 195,875 | ||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | 795,979 | 752,624 | 380,997 | 525,352 | 241,405 | 955,280 | 263,400 | 607 | 3,915,644 | ||||||||||||||||||||||||||||||||||||||||||||
SM | 212 | 10,202 | 2,656 | 14,496 | 2,902 | 33,301 | 5,433 | 247 | 69,449 | ||||||||||||||||||||||||||||||||||||||||||||
SS | 773 | 188 | 2,549 | 4,061 | 8,228 | 45,980 | 3,718 | 268 | 65,765 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 796,964 | $ | 763,014 | $ | 386,202 | $ | 543,909 | $ | 252,535 | $ | 1,034,561 | $ | 272,551 | $ | 1,122 | $ | 4,050,858 |
September 30, 2017 | |||||||||||||||||||
Pass | OAEM | Substandard | Doubtful/Loss | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 625,387 | $ | 11,067 | $ | 29,128 | $ | — | $ | 665,582 | |||||||||
Owner-occupied commercial real estate | 576,313 | 8,305 | 17,620 | — | 602,238 | ||||||||||||||
Non-owner occupied commercial real estate | 897,677 | 15,790 | 16,721 | — | 930,188 | ||||||||||||||
Total commercial business | 2,099,377 | 35,162 | 63,469 | — | 2,198,008 | ||||||||||||||
One-to-four family residential | 79,882 | — | 1,540 | — | 81,422 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 48,101 | 273 | 3,077 | — | 51,451 | ||||||||||||||
Five or more family residential and commercial properties | 121,854 | 722 | 405 | — | 122,981 | ||||||||||||||
Total real estate construction and land development | 169,955 | 995 | 3,482 | — | 174,432 | ||||||||||||||
Consumer | 335,073 | — | 5,045 | 525 | 340,643 | ||||||||||||||
Gross loans receivable | $ | 2,684,287 | $ | 36,157 | $ | 73,536 | $ | 525 | $ | 2,794,505 |
December 31, 2016 | |||||||||||||||||||
Pass | OAEM | Substandard | Doubtful/Loss | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 601,273 | $ | 5,048 | $ | 31,452 | $ | — | $ | 637,773 | |||||||||
Owner-occupied commercial real estate | 532,585 | 4,437 | 21,013 | — | 558,035 | ||||||||||||||
Non-owner occupied commercial real estate | 841,383 | 14,573 | 24,924 | — | 880,880 | ||||||||||||||
Total commercial business | 1,975,241 | 24,058 | 77,389 | — | 2,076,688 | ||||||||||||||
One-to-four family residential | 76,020 | — | 1,371 | — | 77,391 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 44,752 | 500 | 5,162 | — | 50,414 | ||||||||||||||
Five or more family residential and commercial properties | 105,723 | 1,150 | 1,891 | — | 108,764 | ||||||||||||||
Total real estate construction and land development | 150,475 | 1,650 | 7,053 | — | 159,178 | ||||||||||||||
Consumer | 320,140 | — | 5,000 | — | 325,140 | ||||||||||||||
Gross loans receivable | $ | 2,521,876 | $ | 25,708 | $ | 90,813 | $ | — | $ | 2,638,397 |
September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
Commercial business: | |||||||
Commercial and industrial | $ | 4,056 | $ | 3,531 | |||
Owner-occupied commercial real estate | 3,720 | 3,728 | |||||
Non-owner occupied commercial real estate | 1,907 | 1,321 | |||||
Total commercial business | 9,683 | 8,580 | |||||
One-to-four family residential | 84 | 94 | |||||
Real estate construction and land development: | |||||||
One-to-four family residential | 869 | 2,008 | |||||
Consumer | 316 | 227 | |||||
Nonaccrual loans | $ | 10,952 | $ | 10,909 |
March 31, 2023 | |||||||||||||||||
Nonaccrual without ACL | Nonaccrual with ACL | Total Nonaccrual | |||||||||||||||
(In thousands) | |||||||||||||||||
Commercial business: | |||||||||||||||||
Commercial and industrial | $ | 3,964 | $ | 641 | $ | 4,605 | |||||||||||
Owner-occupied CRE | — | 210 | 210 | ||||||||||||||
Total | $ | 3,964 | $ | 851 | $ | 4,815 |
December 31, 2022 | |||||||||||||||||
Nonaccrual without ACL | Nonaccrual with ACL | Total Nonaccrual | |||||||||||||||
(In thousands) | |||||||||||||||||
Commercial business: | |||||||||||||||||
Commercial and industrial | $ | 4,503 | $ | 1,154 | $ | 5,657 | |||||||||||
Owner-occupied CRE | — | 212 | 212 | ||||||||||||||
Total commercial business | 4,503 | 1,366 | 5,869 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||
Commercial and multifamily | — | 37 | 37 | ||||||||||||||
Total | $ | 4,503 | $ | 1,403 | $ | 5,906 |
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||
Interest Income Reversed | Interest Income Recognized | Interest Income Reversed | Interest Income Recognized | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||
Commercial and industrial | $ | (14) | $ | 28 | $ | (2) | $ | 139 | |||||||||||||||
Owner-occupied CRE | — | — | — | 53 | |||||||||||||||||||
Non-owner occupied CRE | — | — | — | 774 | |||||||||||||||||||
Total commercial business | (14) | 28 | (2) | 966 | |||||||||||||||||||
Residential real estate | — | — | — | 19 | |||||||||||||||||||
Consumer | — | — | — | 68 | |||||||||||||||||||
Total | $ | (14) | $ | 28 | $ | (2) | $ | 1,053 |
March 31, 2023 | |||||||||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total Past Due | Current | Loans Receivable | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,984 | $ | 4,855 | $ | 6,839 | $ | 678,159 | $ | 684,998 |
September 30, 2017 | |||||||||||||||||||
30-89 Days | 90 Days or Greater | Total Past Due | Current | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 790 | $ | 1,014 | $ | 1,804 | $ | 663,778 | $ | 665,582 | |||||||||
Owner-occupied commercial real estate | 498 | 1,270 | 1,768 | 600,470 | 602,238 | ||||||||||||||
Non-owner occupied commercial real estate | — | 2,085 | 2,085 | 928,103 | 930,188 | ||||||||||||||
Total commercial business | 1,288 | 4,369 | 5,657 | 2,192,351 | 2,198,008 | ||||||||||||||
One-to-four family residential | — | — | — | 81,422 | 81,422 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 1,038 | 309 | 1,347 | 50,104 | 51,451 | ||||||||||||||
Five or more family residential and commercial properties | 366 | — | 366 | 122,615 | 122,981 | ||||||||||||||
Total real estate construction and land development | 1,404 | 309 | 1,713 | 172,719 | 174,432 | ||||||||||||||
Consumer | 1,738 | 657 | 2,395 | 338,248 | 340,643 | ||||||||||||||
Gross loans receivable | $ | 4,430 | $ | 5,335 | $ | 9,765 | $ | 2,784,740 | $ | 2,794,505 |
March 31, 2023 | |||||||||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total Past Due | Current | Loans Receivable | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
SBA PPP | — | — | — | 900 | 900 | ||||||||||||||||||||||||
Owner-occupied CRE | 840 | 635 | 1,475 | 947,589 | 949,064 | ||||||||||||||||||||||||
Non-owner occupied CRE | — | — | — | 1,601,789 | 1,601,789 | ||||||||||||||||||||||||
Total commercial business | 2,824 | 5,490 | 8,314 | 3,228,437 | 3,236,751 | ||||||||||||||||||||||||
Residential real estate | 2,115 | — | 2,115 | 361,662 | 363,777 | ||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||
Residential | — | — | — | 72,926 | 72,926 | ||||||||||||||||||||||||
Commercial and multifamily | 333 | — | 333 | 270,214 | 270,547 | ||||||||||||||||||||||||
Total real estate construction and land development | 333 | — | 333 | 343,140 | 343,473 | ||||||||||||||||||||||||
Consumer | 782 | 515 | 1,297 | 182,174 | 183,471 | ||||||||||||||||||||||||
Total | $ | 6,054 | $ | 6,005 | $ | 12,059 | $ | 4,115,413 | $ | 4,127,472 |
December 31, 2022 | |||||||||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total Past Due | Current | Loans Receivable | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 586 | $ | 6,104 | $ | 6,690 | $ | 685,410 | $ | 692,100 | |||||||||||||||||||
SBA PPP | 236 | — | 236 | 1,232 | 1,468 | ||||||||||||||||||||||||
Owner-occupied CRE | — | 189 | 189 | 936,851 | 937,040 | ||||||||||||||||||||||||
Non-owner occupied CRE | — | — | — | 1,586,632 | 1,586,632 | ||||||||||||||||||||||||
Total commercial business | 822 | 6,293 | 7,115 | 3,210,125 | 3,217,240 | ||||||||||||||||||||||||
Residential real estate | 3,066 | — | 3,066 | 340,565 | 343,631 | ||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||
Residential | — | — | — | 80,074 | 80,074 | ||||||||||||||||||||||||
Commercial and multifamily | — | — | — | 214,038 | 214,038 | ||||||||||||||||||||||||
Total real estate construction and land development | — | — | — | 294,112 | 294,112 | ||||||||||||||||||||||||
Consumer | 1,561 | — | 1,561 | 194,314 | 195,875 | ||||||||||||||||||||||||
Total | $ | 5,449 | $ | 6,293 | $ | 11,742 | $ | 4,039,116 | $ | 4,050,858 |
December 31, 2016 | |||||||||||||||||||
30-89 Days | 90 Days or Greater | Total Past Due | Current | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 2,687 | $ | 1,733 | $ | 4,420 | $ | 633,353 | $ | 637,773 | |||||||||
Owner-occupied commercial real estate | 1,807 | 2,915 | 4,722 | 553,313 | 558,035 | ||||||||||||||
Non-owner occupied commercial real estate | 733 | — | 733 | 880,147 | 880,880 | ||||||||||||||
Total commercial business | 5,227 | 4,648 | 9,875 | 2,066,813 | 2,076,688 | ||||||||||||||
One-to-four family residential | 523 | — | 523 | 76,868 | 77,391 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 90 | 2,008 | 2,098 | 48,316 | 50,414 | ||||||||||||||
Five or more family residential and commercial properties | — | 377 | 377 | 108,387 | 108,764 | ||||||||||||||
Total real estate construction and land development | 90 | 2,385 | 2,475 | 156,703 | 159,178 | ||||||||||||||
Consumer | 2,292 | 105 | 2,397 | 322,743 | 325,140 | ||||||||||||||
Gross loans receivable | $ | 8,132 | $ | 7,138 | $ | 15,270 | $ | 2,623,127 | $ | 2,638,397 |
March 31, 2023 | |||||||||||||||||||||||||||||
CRE | Farmland | Residential Real Estate | Equipment | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 499 | $ | 1,977 | $ | 664 | $ | 468 | $ | 3,608 | |||||||||||||||||||
Owner-occupied CRE | 189 | — | — | — | 189 | ||||||||||||||||||||||||
Total | $ | 688 | $ | 1,977 | $ | 664 | $ | 468 | $ | 3,797 |
September 30, 2017 | |||||||||||||||||||
Recorded Investment With No Specific Valuation Allowance | Recorded Investment With Specific Valuation Allowance | Total Recorded Investment | Unpaid Contractual Principal Balance | Related Specific Valuation Allowance | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 3,131 | $ | 8,581 | $ | 11,712 | $ | 12,060 | $ | 1,254 | |||||||||
Owner-occupied commercial real estate | 1,082 | 4,676 | 5,758 | 6,068 | 767 | ||||||||||||||
Non-owner occupied commercial real estate | 4,749 | 6,034 | 10,783 | 10,927 | 895 | ||||||||||||||
Total commercial business | 8,962 | 19,291 | 28,253 | 29,055 | 2,916 | ||||||||||||||
One-to-four family residential | — | 304 | 304 | 311 | 96 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 1,347 | — | 1,347 | 2,305 | — | ||||||||||||||
Five or more family residential and commercial properties | — | 658 | 658 | 658 | 39 | ||||||||||||||
Total real estate construction and land development | 1,347 | 658 | 2,005 | 2,963 | 39 | ||||||||||||||
Consumer | 160 | 274 | 434 | 457 | 60 | ||||||||||||||
Total | $ | 10,469 | $ | 20,527 | $ | 30,996 | $ | 32,786 | $ | 3,111 |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
CRE | Farmland | Residential Real Estate | Equipment | Total | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,239 | $ | 1,977 | $ | 929 | $ | — | $ | 4,145 | |||||||||||||||||||||||||
Owner-occupied CRE | 189 | — | — | — | 189 | ||||||||||||||||||||||||||||||
Total | $ | 1,428 | $ | 1,977 | $ | 929 | $ | — | $ | 4,334 |
December 31, 2016 | |||||||||||||||||||
Recorded Investment With No Specific Valuation Allowance | Recorded Investment With Specific Valuation Allowance | Total Recorded Investment | Unpaid Contractual Principal Balance | Related Specific Valuation Allowance | |||||||||||||||
(In thousands) | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 1,739 | $ | 10,636 | $ | 12,375 | $ | 13,249 | $ | 1,199 | |||||||||
Owner-occupied commercial real estate | 1,150 | 3,574 | 4,724 | 5,107 | 511 | ||||||||||||||
Non-owner occupied commercial real estate | 4,905 | 6,413 | 11,318 | 11,386 | 797 | ||||||||||||||
Total commercial business | 7,794 | 20,623 | 28,417 | 29,742 | 2,507 | ||||||||||||||
One-to-four family residential | — | 321 | 321 | 325 | 97 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 2,243 | 828 | 3,071 | 3,755 | 6 | ||||||||||||||
Five or more family residential and commercial properties | — | 1,079 | 1,079 | 1,079 | 60 | ||||||||||||||
Total real estate construction and land development | 2,243 | 1,907 | 4,150 | 4,834 | 66 | ||||||||||||||
Consumer | 48 | 262 | 310 | 325 | 64 | ||||||||||||||
Total | $ | 10,085 | $ | 23,113 | $ | 33,198 | $ | 35,226 | $ | 2,734 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Commercial business: | |||||||||||||||
Commercial and industrial | $ | 11,171 | $ | 9,625 | $ | 11,190 | $ | 9,750 | |||||||
Owner-occupied commercial real estate | 5,289 | 4,553 | 5,049 | 4,560 | |||||||||||
Non-owner occupied commercial real estate | 11,037 | 12,107 | 11,198 | 12,232 | |||||||||||
Total commercial business | 27,497 | 26,285 | 27,437 | 26,542 | |||||||||||
One-to-four family residential | 307 | 265 | 312 | 267 | |||||||||||
Real estate construction and land development: | |||||||||||||||
One-to-four family residential | 2,157 | 3,177 | 2,530 | 3,253 | |||||||||||
Five or more family residential and commercial properties | 860 | 1,619 | 967 | 1,746 | |||||||||||
Total real estate construction and land development | 3,017 | 4,796 | 3,497 | 4,999 | |||||||||||
Consumer | 346 | 885 | 328 | 907 | |||||||||||
Total | $ | 31,167 | $ | 32,231 | $ | 31,574 | $ | 32,715 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Performing TDRs | Nonaccrual TDRs | Performing TDRs | Nonaccrual TDRs | ||||||||||||
(In thousands) | |||||||||||||||
TDR loans | $ | 20,044 | $ | 5,903 | $ | 22,288 | $ | 6,900 | |||||||
Allowance for loan losses on TDR loans | 2,136 | 555 | 1,965 | 437 |
Three Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Number of Contracts (1) | Outstanding Principal Balance (1)(2) | Number of Contracts (1) | Outstanding Principal Balance (1)(2) | ||||||||||
(Dollars in thousands) | |||||||||||||
Commercial business: | |||||||||||||
Commercial and industrial | 4 | $ | 1,353 | 8 | $ | 2,324 | |||||||
Owner-occupied commercial real estate | 2 | 1,299 | 2 | 576 | |||||||||
Non-owner occupied commercial real estate | 1 | 655 | 1 | 818 | |||||||||
Total commercial business | 7 | 3,307 | 11 | 3,718 | |||||||||
Real estate construction and land development: | |||||||||||||
One-to-four family residential | — | — | 5 | 2,274 | |||||||||
Five or more family residential and commercial properties | — | — | 1 | 1,606 | |||||||||
Total real estate construction and land development | — | — | 6 | 3,880 | |||||||||
Consumer | 4 | 52 | 2 | 26 | |||||||||
Total TDR loans | 11 | $ | 3,359 | 19 | $ | 7,624 |
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Number of Contracts (1) | Outstanding Principal Balance (1)(2) | Number of Contracts (1) | Outstanding Principal Balance (1)(2) | ||||||||||
(Dollars in thousands) | |||||||||||||
Commercial business: | |||||||||||||
Commercial and industrial | 13 | $ | 5,564 | 15 | $ | 2,915 | |||||||
Owner-occupied commercial real estate | 3 | 1,351 | 2 | 576 | |||||||||
Non-owner occupied commercial real estate | 2 | 1,596 | 1 | 818 | |||||||||
Total commercial business | 18 | 8,511 | 18 | 4,309 | |||||||||
Real estate construction and land development: | |||||||||||||
One-to-four family residential | 2 | 1,038 | 5 | 2,274 | |||||||||
Five or more family residential and commercial properties | — | — | 1 | 1,606 | |||||||||
Total real estate construction and land development | 2 | 1,038 | 6 | 3,880 | |||||||||
Consumer | 5 | 60 | 6 | 70 | |||||||||
Total TDR loans | 25 | $ | 9,609 | 30 | $ | 8,259 |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Term Extension | Term Extension & Int. Rate Reduction | Total Modified Loans | % of Modified Loans to Loans Receivable, net | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 286 | $ | — | $ | 286 | 0.04 | % | |||||||||||||||||||||||||||||||||||||||
Non-owner occupied CRE | 2,749 | — | 2,749 | 0.17 | |||||||||||||||||||||||||||||||||||||||||||
Total commercial business | 3,035 | — | 3,035 | 0.09 | |||||||||||||||||||||||||||||||||||||||||||
Consumer | — | 25 | 25 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 3,035 | $ | 25 | $ | 3,060 | 0.07 | % |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Weighted Average % of Interest Rate Reductions | Weighted Average Years of Term Extensions | ||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||
Commercial and industrial | — | % | 0.44 | ||||||||||||||||||||
Non-owner occupied CRE | — | 1.00 | |||||||||||||||||||||
Total commercial business | — | 0.95 | |||||||||||||||||||||
Consumer | 1.00 | 2.12 | |||||||||||||||||||||
Total | 1.00 | % | 0.96 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Beginning balance | $ | 42,986 | $ | 42,361 | |||||||||||||||||||
Charge-offs | (314) | (355) | |||||||||||||||||||||
Recoveries of loans previously charged-off | 84 | 849 | |||||||||||||||||||||
Provision for (reversal of) credit losses | 1,713 | (2,522) | |||||||||||||||||||||
Ending balance | $ | 44,469 | $ | 40,333 |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Beginning Balance | Charge-offs | Recoveries | Provision for (Reversal of) Credit Losses | Ending Balance | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 13,962 | $ | (161) | $ | 51 | $ | (286) | $ | 13,566 | |||||||||||||||||||
Owner-occupied CRE | 7,480 | — | — | 45 | 7,525 | ||||||||||||||||||||||||
Non-owner occupied CRE | 9,276 | — | — | (430) | 8,846 | ||||||||||||||||||||||||
Total commercial business | 30,718 | (161) | 51 | (671) | 29,937 | ||||||||||||||||||||||||
Residential real estate | 2,872 | — | — | 30 | 2,902 | ||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||
Residential | 1,654 | — | — | (112) | 1,542 | ||||||||||||||||||||||||
Commercial and multifamily | 5,409 | — | — | 2,034 | 7,443 | ||||||||||||||||||||||||
Total real estate construction and land development | 7,063 | — | — | 1,922 | 8,985 | ||||||||||||||||||||||||
Consumer | 2,333 | (153) | 33 | 432 | 2,645 | ||||||||||||||||||||||||
Total | $ | 42,986 | $ | (314) | $ | 84 | $ | 1,713 | $ | 44,469 |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Beginning Balance | Charge-offs | Recoveries | (Reversal of) Provision for Credit Losses | Ending Balance | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 17,777 | $ | (163) | $ | 272 | $ | (2,621) | $ | 15,265 | |||||||||||||||||||
Owner-occupied CRE | 6,411 | (36) | — | 710 | 7,085 | ||||||||||||||||||||||||
Non-owner occupied CRE | 8,861 | — | — | 721 | 9,582 | ||||||||||||||||||||||||
Total commercial business | 33,049 | (199) | 272 | (1,190) | 31,932 | ||||||||||||||||||||||||
Residential real estate | 1,409 | (30) | 3 | 421 | 1,803 | ||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||
Residential | 1,304 | — | 8 | (188) | 1,124 | ||||||||||||||||||||||||
Commercial and multifamily | 3,972 | — | — | (797) | 3,175 | ||||||||||||||||||||||||
Total real estate construction and land development | 5,276 | — | 8 | (985) | 4,299 | ||||||||||||||||||||||||
Consumer | 2,627 | (126) | 566 | (768) | 2,299 | ||||||||||||||||||||||||
Total | $ | 42,361 | $ | (355) | $ | 849 | $ | (2,522) | $ | 40,333 |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Outstanding Principal | Recorded Investment | Outstanding Principal | Recorded Investment | ||||||||||||
(In thousands) | |||||||||||||||
Commercial business: | |||||||||||||||
Commercial and industrial | $ | 9,220 | $ | 5,001 | $ | 13,067 | $ | 9,317 | |||||||
Owner-occupied commercial real estate | 14,059 | 12,492 | 17,639 | 15,973 | |||||||||||
Non-owner occupied commercial real estate | 15,026 | 13,058 | 25,037 | 23,360 | |||||||||||
Total commercial business | 38,305 | 30,551 | 55,743 | 48,650 | |||||||||||
One-to-four family residential | 4,426 | 3,983 | 5,120 | 4,905 | |||||||||||
Real estate construction and land development: | |||||||||||||||
One-to-four family residential | 2,928 | 1,749 | 2,958 | 2,123 | |||||||||||
Five or more family residential and commercial properties | 2,392 | 2,284 | 2,614 | 2,488 | |||||||||||
Total real estate construction and land development | 5,320 | 4,033 | 5,572 | 4,611 | |||||||||||
Consumer | 3,998 | 5,129 | 5,296 | 6,282 | |||||||||||
Gross PCI loans | $ | 52,049 | $ | 43,696 | $ | 71,731 | $ | 64,448 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at the beginning of the period | $ | 12,296 | $ | 15,359 | $ | 13,860 | $ | 17,592 | ||||||||
Accretion | (796 | ) | (1,178 | ) | (2,725 | ) | (3,900 | ) | ||||||||
Disposal and other | (1,287 | ) | (491 | ) | (2,430 | ) | (2,921 | ) | ||||||||
Change in accretable yield | 939 | 1,214 | 2,447 | 4,133 | ||||||||||||
Balance at the end of the period | $ | 11,152 | $ | 14,904 | $ | 11,152 | $ | 14,904 |
Balance at Beginning of Period | Charge-offs | Recoveries | Provision for Loan Losses | Balance at End of Period | |||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 10,651 | $ | (3 | ) | $ | 4 | $ | (772 | ) | $ | 9,880 | |||||||
Owner-occupied commercial real estate | 4,154 | (1,494 | ) | 4 | 1,397 | 4,061 | |||||||||||||
Non-owner occupied commercial real estate | 7,709 | — | — | (415 | ) | 7,294 | |||||||||||||
Total commercial business | 22,514 | (1,497 | ) | 8 | 210 | 21,235 | |||||||||||||
One-to-four family residential | 1,073 | (15 | ) | — | (21 | ) | 1,037 | ||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 821 | (556 | ) | 191 | 337 | 793 | |||||||||||||
Five or more family residential and commercial properties | 1,666 | — | — | (271 | ) | 1,395 | |||||||||||||
Total real estate construction and land development | 2,487 | (556 | ) | 191 | 66 | 2,188 | |||||||||||||
Consumer | 5,710 | (478 | ) | 112 | 453 | 5,797 | |||||||||||||
Unallocated | 967 | — | — | 176 | 1,143 | ||||||||||||||
Total | $ | 32,751 | $ | (2,546 | ) | $ | 311 | $ | 884 | $ | 31,400 | ||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 10,968 | $ | (361 | ) | $ | 679 | $ | (1,406 | ) | $ | 9,880 | |||||||
Owner-occupied commercial real estate | 3,661 | (1,579 | ) | 155 | 1,824 | 4,061 | |||||||||||||
Non-owner occupied commercial real estate | 7,753 | — | — | (459 | ) | 7,294 | |||||||||||||
Total commercial business | 22,382 | (1,940 | ) | 834 | (41 | ) | 21,235 | ||||||||||||
One-to-four family residential | 1,015 | (15 | ) | 1 | 36 | 1,037 | |||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 797 | (556 | ) | 201 | 351 | 793 | |||||||||||||
Five or more family residential and commercial properties | 1,359 | — | — | 36 | 1,395 | ||||||||||||||
Total real estate construction and land development | 2,156 | (556 | ) | 201 | 387 | 2,188 | |||||||||||||
Consumer | 5,024 | (1,419 | ) | 329 | 1,863 | 5,797 | |||||||||||||
Unallocated | 506 | — | — | 637 | 1,143 | ||||||||||||||
Total | $ | 31,083 | $ | (3,930 | ) | $ | 1,365 | $ | 2,882 | $ | 31,400 |
Loans Individually Evaluated for Impairment | Loans Collectively Evaluated for Impairment | PCI Loans | Total Allowance for Loan Losses | ||||||||||||
(In thousands) | |||||||||||||||
Commercial business: | |||||||||||||||
Commercial and industrial | $ | 1,254 | $ | 7,589 | $ | 1,037 | $ | 9,880 | |||||||
Owner-occupied commercial real estate | 767 | 2,434 | 860 | 4,061 | |||||||||||
Non-owner occupied commercial real estate | 895 | 5,389 | 1,010 | 7,294 | |||||||||||
Total commercial business | 2,916 | 15,412 | 2,907 | 21,235 | |||||||||||
One-to-four family residential | 96 | 740 | 201 | 1,037 | |||||||||||
Real estate construction and land development: | |||||||||||||||
One-to-four family residential | — | 568 | 225 | 793 | |||||||||||
Five or more family residential and commercial properties | 39 | 1,259 | 97 | 1,395 | |||||||||||
Total real estate construction and land development | 39 | 1,827 | 322 | 2,188 | |||||||||||
Consumer | 60 | 4,991 | 746 | 5,797 | |||||||||||
Unallocated | — | 1,143 | — | 1,143 | |||||||||||
Total | $ | 3,111 | $ | 24,113 | $ | 4,176 | $ | 31,400 |
Loans Individually Evaluated for Impairment | Loans Collectively Evaluated for Impairment | PCI Loans | Total Gross Loans Receivable | ||||||||||||
(In thousands) | |||||||||||||||
Commercial business: | |||||||||||||||
Commercial and industrial | $ | 11,712 | $ | 648,869 | $ | 5,001 | $ | 665,582 | |||||||
Owner-occupied commercial real estate | 5,758 | 583,988 | 12,492 | 602,238 | |||||||||||
Non-owner occupied commercial real estate | 10,783 | 906,347 | 13,058 | 930,188 | |||||||||||
Total commercial business | 28,253 | 2,139,204 | 30,551 | 2,198,008 | |||||||||||
One-to-four family residential | 304 | 77,135 | 3,983 | 81,422 | |||||||||||
Real estate construction and land development: | |||||||||||||||
One-to-four family residential | 1,347 | 48,355 | 1,749 | 51,451 | |||||||||||
Five or more family residential and commercial properties | 658 | 120,039 | 2,284 | 122,981 | |||||||||||
Total real estate construction and land development | 2,005 | 168,394 | 4,033 | 174,432 | |||||||||||
Consumer | 434 | 335,080 | 5,129 | 340,643 | |||||||||||
Total | $ | 30,996 | $ | 2,719,813 | $ | 43,696 | $ | 2,794,505 |
Balance at Beginning of Period | Charge-offs | Recoveries | Provision for Loan Losses | Balance at End of Period | |||||||||||||||
(In thousands) | |||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 9,970 | $ | (240 | ) | $ | 993 | $ | 182 | $ | 10,905 | ||||||||
Owner-occupied commercial real estate | 3,578 | (88 | ) | — | 222 | 3,712 | |||||||||||||
Non-owner occupied commercial real estate | 6,924 | — | — | 303 | 7,227 | ||||||||||||||
Total commercial business | 20,472 | (328 | ) | 993 | 707 | 21,844 | |||||||||||||
One-to-four family residential | 950 | — | — | 26 | 976 | ||||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 754 | — | — | 96 | 850 | ||||||||||||||
Five or more family residential and commercial properties | 1,277 | — | — | 5 | 1,282 | ||||||||||||||
Total real estate construction and land development | 2,031 | — | — | 101 | 2,132 | ||||||||||||||
Consumer | 4,816 | (572 | ) | 197 | 665 | 5,106 | |||||||||||||
Unallocated | 157 | — | — | (4 | ) | 153 | |||||||||||||
Total | $ | 28,426 | $ | (900 | ) | $ | 1,190 | $ | 1,495 | $ | 30,211 | ||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||
Commercial business: | |||||||||||||||||||
Commercial and industrial | $ | 9,972 | $ | (2,810 | ) | $ | 1,352 | $ | 2,391 | $ | 10,905 | ||||||||
Owner-occupied commercial real estate | 4,370 | (538 | ) | — | (120 | ) | 3,712 | ||||||||||||
Non-owner occupied commercial real estate | 7,722 | (350 | ) | — | (145 | ) | 7,227 | ||||||||||||
Total commercial business | 22,064 | (3,698 | ) | 1,352 | 2,126 | 21,844 | |||||||||||||
One-to-four family residential | 1,157 | — | 2 | (183 | ) | 976 | |||||||||||||
Real estate construction and land development: | |||||||||||||||||||
One-to-four family residential | 1,058 | (100 | ) | 83 | (191 | ) | 850 | ||||||||||||
Five or more family residential and commercial properties | 813 | (54 | ) | — | 523 | 1,282 | |||||||||||||
Total real estate construction and land development | 1,871 | (154 | ) | 83 | 332 | 2,132 | |||||||||||||
Consumer | 4,309 | (1,370 | ) | 496 | 1,671 | 5,106 | |||||||||||||
Unallocated | 345 | — | — | (192 | ) | 153 | |||||||||||||
Total | $ | 29,746 | $ | (5,222 | ) | $ | 1,933 | $ | 3,754 | $ | 30,211 |
Loans Individually Evaluated for Impairment | Loans Collectively Evaluated for Impairment | PCI Loans | Total Allowance for Loan Losses | ||||||||||||
(In thousands) | |||||||||||||||
Commercial business: | |||||||||||||||
Commercial and industrial | $ | 1,199 | $ | 8,048 | $ | 1,721 | $ | 10,968 | |||||||
Owner-occupied commercial real estate | 511 | 1,834 | 1,316 | 3,661 | |||||||||||
Non-owner occupied commercial real estate | 797 | 5,142 | 1,814 | 7,753 | |||||||||||
Total commercial business | 2,507 | 15,024 | 4,851 | 22,382 | |||||||||||
One-to-four family residential | 97 | 643 | 275 | 1,015 | |||||||||||
Real estate construction and land development: | |||||||||||||||
One-to-four family residential | 6 | 538 | 253 | 797 | |||||||||||
Five or more family residential and commercial properties | 60 | 1,168 | 131 | 1,359 | |||||||||||
Total real estate construction and land development | 66 | 1,706 | 384 | 2,156 | |||||||||||
Consumer | 64 | 3,912 | 1,048 | 5,024 | |||||||||||
Unallocated | — | 506 | — | 506 | |||||||||||
Total | $ | 2,734 | $ | 21,791 | $ | 6,558 | $ | 31,083 |
Loans Individually Evaluated for Impairment | Loans Collectively Evaluated for Impairment | PCI Loans | Total Gross Loans Receivable | ||||||||||||
(In thousands) | |||||||||||||||
Commercial business: | |||||||||||||||
Commercial and industrial | $ | 12,375 | $ | 616,081 | $ | 9,317 | $ | 637,773 | |||||||
Owner-occupied commercial real estate | 4,724 | 537,338 | 15,973 | 558,035 | |||||||||||
Non-owner occupied commercial real estate | 11,318 | 846,202 | 23,360 | 880,880 | |||||||||||
Total commercial business | 28,417 | 1,999,621 | 48,650 | 2,076,688 | |||||||||||
One-to-four family residential | 321 | 72,165 | 4,905 | 77,391 | |||||||||||
Real estate construction and land development: | |||||||||||||||
One-to-four family residential | 3,071 | 45,220 | 2,123 | 50,414 | |||||||||||
Five or more family residential and commercial properties | 1,079 | 105,197 | 2,488 | 108,764 | |||||||||||
Total real estate construction and land development | 4,150 | 150,417 | 4,611 | 159,178 | |||||||||||
Consumer | 310 | 318,548 | 6,282 | 325,140 | |||||||||||
Total | $ | 33,198 | $ | 2,540,751 | $ | 64,448 | $ | 2,638,397 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Balance at the beginning of the period | $ | 786 | $ | 1,560 | $ | 754 | $ | 2,019 | |||||||
Additions | — | 25 | 32 | 677 | |||||||||||
Proceeds from dispositions | (374 | ) | (1,716 | ) | (374 | ) | (2,486 | ) | |||||||
Gain on sales, net | 111 | 131 | 111 | 173 | |||||||||||
Valuation adjustment | — | — | — | (383 | ) | ||||||||||
Balance at the end of the period | $ | 523 | $ | — | $ | 523 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at the beginning of the period | $ | 6,727 | $ | 8,091 | $ | 7,374 | $ | 8,789 | ||||||||
Less: Amortization | 319 | 359 | 966 | 1,057 | ||||||||||||
Balance at the end of the period | $ | 6,408 | $ | 7,732 | $ | 6,408 | $ | 7,732 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Average balance during the period | $ | 111,293 | $ | 5,618 | $ | 106,553 | $ | 11,608 | |||||||
Maximum month-end balance during the period | $ | 126,200 | $ | 17,700 | $ | 137,450 | $ | 57,300 | |||||||
Weighted average rate during the period | 1.53 | % | 0.57 | % | 1.09 | % | 0.54 | % |
September 30, 2017 | December 31, 2016 | ||||||
(In thousands) | |||||||
U.S. Treasury and U.S. Government-sponsored agencies | $ | — | $ | 2,944 | |||
Mortgage-backed securities and collateralized mortgage obligations(1): | |||||||
Residential | 12,336 | 5,191 | |||||
Commercial | 16,332 | 13,969 | |||||
Total repurchase agreements | $ | 28,668 | $ | 22,104 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Notional Amounts | Estimated Fair Value | Notional Amounts | Estimated Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Non-hedging interest rate derivatives | |||||||||||||||||||||||
Interest rate swap asset (1) | $ | 288,320 | 24,498 | $ | 288,785 | $ | 30,107 | ||||||||||||||||
Interest rate swap liability (1) | 288,320 | (24,498) | 288,785 | (30,107) |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Notional Amounts | Estimated Fair Value | Notional Amounts | Estimated Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Non-hedging interest rate derivatives | ||||||||||||||||
Interest rate swaps with customer (1) | $ | 134,295 | $ | 74 | $ | 102,709 | $ | (1,099 | ) | |||||||
Interest rate swap with third party (1) | 134,295 | (74 | ) | 102,709 | 1,099 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(In thousands, except shares) | |||||||||||||||||||||||
Net income: | |||||||||||||||||||||||
Net income | $ | 20,457 | $ | 19,757 | |||||||||||||||||||
Dividends and undistributed earnings allocated to participating securities (1) | — | — | |||||||||||||||||||||
Net income allocated to common shareholders | $ | 20,457 | $ | 19,757 | |||||||||||||||||||
Basic: | |||||||||||||||||||||||
Weighted average common shares outstanding | 35,108,390 | 35,094,725 | |||||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Basic weighted average common shares outstanding | 35,108,390 | 35,094,725 | |||||||||||||||||||||
Effect of potentially dilutive common shares (1) | 336,950 | 317,373 | |||||||||||||||||||||
Total diluted weighted average common shares outstanding | 35,445,340 | 35,412,098 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net income: | |||||||||||||||
Net income | $ | 10,624 | $ | 11,039 | $ | 31,768 | $ | 29,025 | |||||||
Less: Dividends and undistributed earnings allocated to participating securities | (64 | ) | (102 | ) | (228 | ) | (280 | ) | |||||||
Net income allocated to common shareholders | $ | 10,560 | $ | 10,937 | $ | 31,540 | $ | 28,745 | |||||||
Basic: | |||||||||||||||
Weighted average common shares outstanding | 29,929,721 | 29,962,270 | 29,940,276 | 29,968,034 | |||||||||||
Less: Restricted stock awards | (146,425 | ) | (277,495 | ) | (192,186 | ) | (292,832 | ) | |||||||
Total basic weighted average common shares outstanding | 29,783,296 | 29,684,775 | 29,748,090 | 29,675,202 | |||||||||||
Diluted: | |||||||||||||||
Basic weighted average common shares outstanding | 29,783,296 | 29,684,775 | 29,748,090 | 29,675,202 | |||||||||||
Effect of potentially dilutive common shares (1) | 107,414 | 11,031 | 86,004 | 12,543 | |||||||||||
Total diluted weighted average common shares outstanding | 29,890,710 | 29,695,806 | 29,834,094 | 29,687,745 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(In thousands, except shares) | |||||||||||||||||||||||
Potentially dilutive shares that were excluded from the computation of diluted earnings per share because to do so would be anti-dilutive (2) | 88,488 | 17,041 |
(1)Represents |
Declared | Cash Dividend per Share | Record Date | Paid Date | |||||||||||||||||||||||
January 26, 2022 | $0.21 | February 9, 2022 | February 23, 2022 | |||||||||||||||||||||||
April 20, | $ | May | May | |||||||||||||||||||||||
July 20, | $ | August | August | |||||||||||||||||||||||
October | $ | November | November | |||||||||||||||||||||||
January 25, | $ | February | February | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2023 | 2022 | Plan Total(1) | |||||||||||||||||||||||||||
Repurchased shares | 88,355 | 80,559 | 1,249,195 | ||||||||||||||||||||||||||
Stock repurchase average share price | $ | 22.82 | $ | 25.17 | $ | 23.86 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Plan Total (1) | |||||||||||||||
Eleventh Plan | |||||||||||||||||||
Repurchased shares | — | 38,000 | — | 138,000 | 579,996 | ||||||||||||||
Stock repurchase average share price | $ | — | $ | 17.46 | $ | — | $ | 17.16 | $ | 16.76 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Repurchased shares to pay withholding taxes | 26,724 | 24,531 | |||||||||||||||||||||
Stock repurchase to pay withholding taxes average share price | $ | 22.84 | $ | 25.46 |
Three Months Ended September 30, 2017 (1) | Nine Months Ended September 30, 2017 (1) | |||||||
(In thousands) | ||||||||
Balance of AOCI at the beginning of period | $ | 1,557 | $ | (2,606 | ) | |||
Other comprehensive income before reclassification | 289 | 4,528 | ||||||
Amounts reclassified from AOCI for gain on sale of investment securities included in net income | (28 | ) | (104 | ) | ||||
Net current period other comprehensive income | 261 | 4,424 | ||||||
Balance of AOCI at the end of period | $ | 1,818 | $ | 1,818 |
Three Months Ended September 30, 2016 (1) | Nine Months Ended September 30, 2016 (1) | |||||||
(In thousands) | ||||||||
Balance of AOCI at the beginning of period | $ | 12,343 | $ | 2,559 | ||||
Other comprehensive income before reclassification | (1,055 | ) | 9,223 | |||||
Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income | (224 | ) | (718 | ) | ||||
Net current period other comprehensive income | (1,279 | ) | 8,505 | |||||
Balance of AOCI at the end of period | $ | 11,064 | $ | 11,064 |
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | |||||||||
Outstanding at December 31, 2015 | 79,408 | $ | 14.19 | |||||||||
Exercised | (27,867 | ) | 14.37 | |||||||||
Forfeited or expired | (4,200 | ) | 16.80 | |||||||||
Outstanding at September 30, 2016 | 47,341 | $ | 13.85 | 2.80 | $ | 194 | ||||||
Outstanding at December 31, 2016 | 37,495 | $ | 13.77 | |||||||||
Exercised | (12,304 | ) | 12.92 | |||||||||
Forfeited or expired | (1,308 | ) | 13.53 | |||||||||
Outstanding, vested and expected to vest and exercisable at September 30, 2017 | 23,883 | $ | 14.23 | 2.45 | $ | 365 |
Shares | Weighted-Average Grant Date Fair Value | |||||
Nonvested at December 31, 2015 | 264,521 | $ | 15.92 | |||
Granted | 119,939 | 17.53 | ||||
Vested | (111,357 | ) | 15.62 | |||
Forfeited | (9,216 | ) | 16.57 | |||
Nonvested at September 30, 2016 | 263,887 | $ | 16.76 | |||
Nonvested at December 31, 2016 | 261,296 | $ | 16.80 | |||
Granted | — | — | ||||
Vested | (107,202 | ) | 16.49 | |||
Forfeited | (10,418 | ) | 16.80 | |||
Nonvested at September 30, 2017 | 143,676 | $ | 17.02 |
Shares | Weighted-Average Grant Date Fair Value | |||||
Nonvested at December 31, 2016 | — | $ | — | |||
Granted | 92,019 | 25.29 | ||||
Vested | — | — | ||||
Forfeited | (1,812 | ) | 25.35 | |||
Nonvested at September 30, 2017 | 90,207 | $ | 25.29 |
Shares | Expected Term in Years | Weighted-Average Risk Free Interest Rate | Expected Volatility | Expected Dividend Yield | Weighted-Average Fair Value | ||||||||||
6,089 | 2.85 | 1.40 | % | 21.8 | % | — | % | $ | 24.39 |
March 31, 2023 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. government and agency securities | $ | 64,550 | $ | 19,865 | $ | 44,685 | $ | — | |||||||||||||||
Municipal securities | 132,497 | — | 132,497 | — | |||||||||||||||||||
Residential CMO and MBS | 433,712 | — | 433,712 | — | |||||||||||||||||||
Commercial CMO and MBS | 663,497 | — | 663,497 | — | |||||||||||||||||||
Corporate obligations | 3,817 | — | 3,817 | — | |||||||||||||||||||
Other asset-backed securities | 19,999 | — | 19,999 | — | |||||||||||||||||||
Total investment securities available for sale | 1,318,072 | 19,865 | 1,298,207 | — | |||||||||||||||||||
Equity security | 215 | 215 | — | — | |||||||||||||||||||
Derivative assets - interest rate swaps | 24,498 | — | 24,498 | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative liabilities - interest rate swaps | $ | 24,498 | $ | — | $ | 24,498 | $ | — |
September 30, 2017 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||
Investment securities available for sale: | Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury and U.S. Government-sponsored agencies | $ | 9,403 | $ | — | $ | 9,403 | $ | — | ||||||||||||||||||||||||||||||
U.S. government and agency securities | U.S. government and agency securities | $ | 63,859 | $ | 19,779 | $ | 44,080 | $ | — | |||||||||||||||||||||||||||||
Municipal securities | 252,806 | — | 252,806 | — | Municipal securities | 153,026 | 5,399 | 147,627 | — | |||||||||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations: | ||||||||||||||||||||||||||||||||||||||
Residential | 274,361 | — | 274,361 | — | ||||||||||||||||||||||||||||||||||
Commercial | 213,283 | — | 213,283 | — | ||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 6,022 | — | 6,022 | — | ||||||||||||||||||||||||||||||||||
Residential CMO and MBS | Residential CMO and MBS | 424,386 | — | 424,386 | — | |||||||||||||||||||||||||||||||||
Commercial CMO and MBS | Commercial CMO and MBS | 664,421 | — | 664,421 | — | |||||||||||||||||||||||||||||||||
Corporate obligations | 15,830 | — | 15,830 | — | Corporate obligations | 3,834 | — | 3,834 | — | |||||||||||||||||||||||||||||
Other securities | 28,355 | 150 | 28,205 | — | ||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 21,917 | — | 21,917 | — | |||||||||||||||||||||||||||||||||
Total investment securities available for sale | 800,060 | 150 | 799,910 | — | Total investment securities available for sale | 1,331,443 | 25,178 | 1,306,265 | — | |||||||||||||||||||||||||||||
Equity security | Equity security | 185 | 185 | — | — | |||||||||||||||||||||||||||||||||
Derivative assets - interest rate swaps | 3,308 | — | 3,308 | — | Derivative assets - interest rate swaps | 30,107 | — | 30,107 | — | |||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps | $ | 3,308 | $ | — | $ | 3,308 | $ | — | Derivative liabilities - interest rate swaps | $ | 30,107 | $ | — | $ | 30,107 | $ | — |
December 31, 2016 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
(In thousands) | |||||||||||||||
Assets | |||||||||||||||
Investment securities available for sale: | |||||||||||||||
U.S. Treasury and U.S. Government-sponsored agencies | $ | 1,569 | $ | — | $ | 1,569 | $ | — | |||||||
Municipal securities | 237,256 | — | 237,256 | — | |||||||||||
Mortgage-backed securities and collateralized mortgage obligations: | |||||||||||||||
Residential | 309,176 | — | 309,176 | — | |||||||||||
Commercial | 208,318 | — | 208,318 | — | |||||||||||
Collateralized loan obligations | 10,478 | — | 10,478 | — | |||||||||||
Corporate obligations | 16,706 | — | 16,706 | — | |||||||||||
Other securities | 11,142 | 123 | 11,019 | — | |||||||||||
Total investment securities available for sale | 794,645 | 123 | 794,522 | — | |||||||||||
Derivative assets - interest rate swaps | 2,804 | — | 2,804 | — | |||||||||||
Liabilities | |||||||||||||||
Derivative liabilities - interest rate swaps | $ | 2,804 | $ | — | $ | 2,804 | $ | — |
Fair Value at March 31, 2023 | |||||||||||||||||||||||||||||
Basis(1) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Collateral-dependent loans: | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 220 | $ | 119 | $ | — | $ | — | $ | 119 | |||||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 220 | $ | 119 | $ | — | $ | — | $ | 119 |
Basis(1) | Fair Value at September 30, 2017 | ||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Net Losses Recorded in Earnings During the Three Months Ended September 30, 2017 | Net Losses (Gains) Recorded in Earnings During the Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 172 | $ | 163 | $ | — | $ | — | $ | 163 | $ | — | $ | 7 | |||||||||||||
Owner-occupied commercial real estate | 182 | 179 | — | — | 179 | — | 8 | ||||||||||||||||||||
Total commercial business | 354 | 342 | — | — | 342 | — | 15 | ||||||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 354 | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | $ | 15 |
Basis(1) | Fair Value at December 31, 2016 | ||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Net Losses (Gains) Recorded in Earnings During the Three Months Ended September 30, 2016 | Net Losses (Gains) Recorded in Earnings During the Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 205 | $ | 200 | $ | — | $ | — | $ | 200 | $ | 24 | $ | 25 | |||||||||||||
Owner-occupied commercial real estate | 780 | 603 | — | — | 603 | 23 | (2 | ) | |||||||||||||||||||
Total commercial business | 985 | 803 | — | — | 803 | 47 | 23 | ||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||
One-to-four family residential | 828 | 822 | — | — | 822 | (13 | ) | (26 | ) | ||||||||||||||||||
Total real estate construction and land development | 828 | 822 | — | — | 822 | (13 | ) | (26 | ) | ||||||||||||||||||
Consumer | 16 | 9 | — | — | 9 | — | — | ||||||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 1,829 | $ | 1,634 | $ | — | $ | — | $ | 1,634 | $ | 34 | $ | (3 | ) |
Fair Value at December 31, 2022 | |||||||||||||||||||||||||||||
Basis(1) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Collateral-dependent loans: | |||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||
Owner-occupied CRE | 613 | 182 | — | — | 182 | ||||||||||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 613 | $ | 182 | $ | — | $ | — | $ | 182 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Collateral-dependent loans: | |||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||
Commercial and industrial | $ | (100) | $ | (12) | |||||||||||||||||||
Net loss from nonrecurring fair value adjustments | $ | (100) | $ | (12) |
March 31, 2023 | |||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range of Inputs; Weighted Average | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Collateral-dependent loans | $ | 119 | Market approach | Adjustment for differences between the comparable sales | N/A(1) | ||||||||||||||||||
September 30, 2017 | |||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range of Inputs; Weighted Average | ||||||
(Dollars in thousands) | |||||||||
Impaired loans | $ | 342 | Market approach | Adjustment for differences between the comparable sales | (23.8%) - 23.0%; (2.8%) |
December 31, 2022 | |||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range of Inputs; Weighted Average | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Collateral-dependent loans | $ | 182 | Market approach | Adjustment for differences between the comparable sales | N/A(1) | ||||||||||||||||||
December 31, 2016 | |||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range of Inputs; Weighted Average | ||||||
(Dollars in thousands) | |||||||||
Impaired loans | $ | 1,634 | Market approach | Adjustment for differences between the comparable sales | (23.8%) - 63.9%; 20.4% |
September 30, 2017 | |||||||||||||||||||
Carrying Value | Fair Value | Fair Value Measurements Using: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 111,258 | $ | 111,258 | $ | 111,258 | $ | — | $ | — | |||||||||
Investment securities available for sale | 800,060 | 800,060 | 150 | 799,910 | — | ||||||||||||||
Federal Home Loan Bank stock | 9,343 | N/A | N/A | N/A | N/A | ||||||||||||||
Loans held for sale | 5,368 | 5,553 | — | 5,553 | — | ||||||||||||||
Total loans receivable, net | 2,766,113 | 2,772,338 | — | — | 2,772,338 | ||||||||||||||
Accrued interest receivable | 12,295 | 12,295 | 3 | 3,770 | 8,522 | ||||||||||||||
Derivative assets - interest rate swaps | 3,308 | 3,308 | — | 3,308 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | 2,925,637 | 2,925,637 | 2,925,637 | — | — | ||||||||||||||
Certificate of deposit accounts | 395,181 | 394,164 | — | 394,164 | — | ||||||||||||||
Federal Home Loan Bank advances | 117,400 | 117,400 | — | 117,400 | — | ||||||||||||||
Securities sold under agreement to repurchase | 28,668 | 28,668 | 28,668 | — | — | ||||||||||||||
Junior subordinated debentures | 19,936 | 15,250 | — | — | 15,250 | ||||||||||||||
Accrued interest payable | 148 | 148 | 42 | 73 | 33 | ||||||||||||||
Derivative liabilities - interest rate swaps | 3,308 | 3,308 | — | 3,308 | — |
March 31, 2023 | |||||||||||||||||||||||||||||
Carrying Value | Fair Value | Fair Value Measurements Using: | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 301,481 | $ | 301,481 | $ | 301,481 | $ | — | $ | — | |||||||||||||||||||
Investment securities available for sale | 1,318,072 | 1,318,072 | 19,865 | 1,298,207 | — | ||||||||||||||||||||||||
Investment securities held to maturity | 760,163 | 684,647 | — | 684,647 | — | ||||||||||||||||||||||||
Loans receivable, net | 4,083,003 | 3,944,954 | — | — | 3,944,954 | ||||||||||||||||||||||||
Accrued interest receivable | 18,548 | 18,548 | 360 | 6,472 | 11,716 | ||||||||||||||||||||||||
Derivative assets - interest rate swaps | 24,498 | 24,498 | — | 24,498 | — | ||||||||||||||||||||||||
Equity security | 215 | 215 | 215 | — | — | ||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Non-maturity deposits | $ | 5,392,668 | $ | 5,392,668 | $ | 5,392,668 | $ | — | $ | — | |||||||||||||||||||
Certificates of deposit | 396,354 | 400,142 | — | 400,142 | — | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 383,100 | 383,100 | — | 383,100 | — | ||||||||||||||||||||||||
Securities sold under agreement to repurchase | 39,161 | 39,161 | 39,161 | — | — | ||||||||||||||||||||||||
Junior subordinated debentures | 21,546 | 18,750 | — | — | 18,750 | ||||||||||||||||||||||||
Accrued interest payable | 392 | 392 | 66 | 252 | 74 | ||||||||||||||||||||||||
Derivative liabilities - interest rate swaps | 24,498 | 24,498 | — | 24,498 | — |
December 31, 2022 | |||||||||||||||||||||||||||||
Carrying Value | Fair Value | Fair Value Measurements Using: | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 103,590 | $ | 103,590 | $ | 103,590 | $ | — | $ | — | |||||||||||||||||||
Investment securities available for sale | 1,331,443 | 1,331,443 | 25,178 | 1,306,265 | — | ||||||||||||||||||||||||
Investment securities held to maturity | 766,396 | 673,434 | — | 673,434 | — | ||||||||||||||||||||||||
Loans receivable, net | 4,007,872 | 3,841,821 | — | — | 3,841,821 | ||||||||||||||||||||||||
Accrued interest receivable | 18,547 | 18,547 | 349 | 6,892 | 11,306 | ||||||||||||||||||||||||
Derivative assets - interest rate swaps | 30,107 | 30,107 | — | 30,107 | — | ||||||||||||||||||||||||
Equity security | 185 | 185 | 185 | — | — | ||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Non-maturity deposits | $ | 5,617,267 | $ | 5,617,267 | $ | 5,617,267 | $ | — | $ | — | |||||||||||||||||||
Certificates of deposit | 307,573 | 308,325 | — | 308,325 | — | ||||||||||||||||||||||||
Securities sold under agreement to repurchase | 46,597 | 46,597 | 46,597 | — | — | ||||||||||||||||||||||||
Junior subordinated debentures | 21,473 | 20,000 | — | — | 20,000 | ||||||||||||||||||||||||
Accrued interest payable | 143 | 143 | 57 | 13 | 73 | ||||||||||||||||||||||||
Derivative liabilities - interest rate swaps | 30,107 | 30,107 | — | 30,107 | — |
December 31, 2016 | |||||||||||||||||||
Carrying Value | Fair Value | Fair Value Measurements Using: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 103,745 | $ | 103,745 | $ | 103,745 | $ | — | $ | — | |||||||||
Investment securities available for sale | 794,645 | 794,645 | 123 | 794,522 | — | ||||||||||||||
Federal Home Loan Bank stock | 7,564 | N/A | N/A | N/A | N/A | ||||||||||||||
Loans held for sale | 11,662 | 11,988 | — | 11,988 | — | ||||||||||||||
Loans receivable, net of allowance for loan losses | 2,609,666 | 2,675,811 | — | — | 2,675,811 | ||||||||||||||
Accrued interest receivable | 10,925 | 10,925 | 3 | 3,472 | 7,450 | ||||||||||||||
Derivative assets - interest rate swaps | 2,804 | 2,804 | — | 2,804 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | $ | 2,872,247 | $ | 2,872,247 | $ | 2,872,247 | $ | — | $ | — | |||||||||
Certificate of deposit accounts | 357,401 | 357,536 | — | 357,536 | — | ||||||||||||||
Federal Home Loan Bank advances | 79,600 | 79,600 | — | 79,600 | — | ||||||||||||||
Securities sold under agreement to repurchase | 22,104 | 22,104 | 22,104 | — | — | ||||||||||||||
Junior subordinated debentures | 19,717 | 15,000 | — | — | 15,000 | ||||||||||||||
Accrued interest payable | 215 | 215 | 44 | 142 | 29 | ||||||||||||||
Derivative liabilities - interest rate swaps | 2,804 | 2,804 | — | 2,804 | — |
March 31, 2023 | December 31, 2022 | ||||||||||
(In thousands) | |||||||||||
Commercial business: | |||||||||||
Commercial and industrial | $ | 537,442 | $ | 548,438 | |||||||
Owner-occupied CRE | 3,305 | 3,083 | |||||||||
Non-owner occupied CRE | 26,664 | 13,396 | |||||||||
Total commercial business | 567,411 | 564,917 | |||||||||
Real estate construction and land development: | |||||||||||
Residential | 46,664 | 43,460 | |||||||||
Commercial and multifamily | 355,507 | 348,956 | |||||||||
Total real estate construction and land development | 402,171 | 392,416 | |||||||||
Consumer | 327,727 | 323,016 | |||||||||
Total outstanding commitments | $ | 1,297,309 | $ | 1,280,349 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance, beginning of period | $ | 1,744 | $ | 2,607 | |||||||||||||||||||
Provision for (reversal of) credit losses on unfunded commitments | 112 | (1,055) | |||||||||||||||||||||
Balance, end of period | $ | 1,856 | $ | 1,552 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance(1) | Interest Earned/ Paid | Average Yield/ Rate | Average Balance(1) | Interest Earned/ Paid | Average Yield/ Rate | Average Balance(1) | Interest Earned/ Paid | Average Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable, net (2)(3) | $ | 4,039,395 | $ | 50,450 | 5.07 | % | $ | 3,773,325 | $ | 41,025 | 4.41 | % | $ | 266,070 | $ | 9,425 | 0.66 | % | |||||||||||||||||||||||||||||||||||
Taxable securities | 2,007,339 | 14,657 | 2.96 | 1,271,557 | 6,003 | 1.91 | 735,782 | 8,654 | 1.05 | ||||||||||||||||||||||||||||||||||||||||||||
Nontaxable securities (3) | 82,893 | 586 | 2.87 | 146,409 | 860 | 2.38 | (63,516) | (274) | 0.49 | ||||||||||||||||||||||||||||||||||||||||||||
Interest earning deposits | 83,376 | 972 | 4.73 | 1,503,287 | 706 | 0.19 | (1,419,911) | 266 | 4.54 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets | 6,213,003 | 66,665 | 4.35 | % | 6,694,578 | 48,594 | 2.94 | % | (481,575) | 18,071 | 1.41 | % | |||||||||||||||||||||||||||||||||||||||||
Noninterest earning assets | 848,956 | 740,209 | 108,747 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 7,061,959 | $ | 7,434,787 | $ | (372,828) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of Deposit | $ | 350,206 | $ | 1,224 | 1.42 | % | $ | 336,353 | $ | 338 | 0.41 | % | $ | 13,853 | $ | 886 | 1.01 | % | |||||||||||||||||||||||||||||||||||
Savings accounts | 601,166 | 142 | 0.10 | 646,684 | 87 | 0.05 | (45,518) | 55 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||||
Interest bearing demand and money market accounts | 2,829,198 | 3,162 | 0.45 | 3,066,320 | 999 | 0.13 | (237,122) | 2,163 | 0.32 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing deposits | 3,780,570 | 4,528 | 0.49 | 4,049,357 | 1,424 | 0.14 | (268,787) | 3,104 | 0.35 | ||||||||||||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 21,501 | 482 | 9.09 | 21,214 | 194 | 3.71 | 287 | 288 | 5.38 | ||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreement to repurchase | 43,202 | 47 | 0.44 | 50,017 | 32 | 0.26 | (6,815) | 15 | 0.18 | ||||||||||||||||||||||||||||||||||||||||||||
FHLB advances and other borrowings | 145,605 | 1,766 | 4.92 | — | — | — | 145,605 | 1,766 | 4.92 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 3,990,878 | 6,823 | 0.69 | % | 4,120,588 | 1,650 | 0.16 | % | (129,710) | 5,173 | 0.53 | % | |||||||||||||||||||||||||||||||||||||||||
Noninterest bearing demand deposits | 2,068,688 | 2,359,451 | (290,763) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other noninterest bearing liabilities | 189,893 | 108,663 | 81,230 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 812,500 | 846,085 | (33,585) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stock-holders’ equity | $ | 7,061,959 | $ | 7,434,787 | $ | (372,828) | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income and spread | $ | 59,842 | 3.66 | % | $ | 46,944 | 2.78 | % | $ | 12,898 | 0.88 | % | |||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.91 | % | 2.84 | % | 1.07 | % |
Change Date | Rate (%) | Rate Change (%) | ||||||||||||
December 31, 2021 | 0.00% - 0.25% | N/A | ||||||||||||
March 17, 2022 | 0.25% - 0.50% | 0.25 | % | |||||||||||
May 5, 2022 | 0.75% - 1.00% | 0.50 | % | |||||||||||
June 16, 2022 | 1.50% - 1.75% | 0.75 | % | |||||||||||
July 28, 2022 | 2.25% - 2.50% | 0.75 | % | |||||||||||
September 22, 2022 | 3.00% - 3.25% | 0.75 | % | |||||||||||
November 3, 2022 | 3.75% - 4.00% | 0.75 | % | |||||||||||
December 15, 2022 | 4.25% - 4.50% | 0.50 | % | |||||||||||
February 2, 2023 | 4.50% - 4.75% | 0.25 | % | |||||||||||
March 23, 2023 | 4.75% - 5.00% | 0.25 | % |
Increase (Decrease) Due to Changes In: | |||||||||||||||||||||||||||||||||||||||||
Volume | Yield/Rate | Total | % Change | ||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 3,031 | $ | 6,394 | $ | 9,425 | 23.0 | % | |||||||||||||||||||||||||||||||||
Taxable securities | 4,449 | 4,205 | 8,654 | 144.2 | |||||||||||||||||||||||||||||||||||||
Nontaxable securities | (425) | 151 | (274) | (31.9) | |||||||||||||||||||||||||||||||||||||
Interest earning deposits | (1,271) | 1,537 | 266 | 37.7 | |||||||||||||||||||||||||||||||||||||
Total interest income | $ | 5,784 | $ | 12,287 | $ | 18,071 | 37.2 | % | |||||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 15 | $ | 871 | $ | 886 | 262.1 | % | |||||||||||||||||||||||||||||||||
Savings accounts | (6) | 61 | 55 | 63.2 | |||||||||||||||||||||||||||||||||||||
Interest bearing demand and money market accounts | (83) | 2,246 | 2,163 | 216.5 | |||||||||||||||||||||||||||||||||||||
Total interest bearing deposits | (74) | 3,178 | 3,104 | 218.0 | |||||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 3 | 285 | 288 | 148.5 | |||||||||||||||||||||||||||||||||||||
Securities sold under agreement to repurchase | (4) | 19 | 15 | 46.9 | |||||||||||||||||||||||||||||||||||||
FHLB advances and other borrowings | 1,766 | — | 1,766 | 100.0 | |||||||||||||||||||||||||||||||||||||
Total interest expense | $ | 1,691 | $ | 3,482 | $ | 5,173 | 313.5 | % | |||||||||||||||||||||||||||||||||
Net interest income | $ | 4,093 | $ | 8,805 | $ | 12,898 | 27.5 | % |
Three Months Ended | |||||||||||
March 31, 2023 | March 31, 2022 | ||||||||||
Loan yield (GAAP) | 5.07 | % | 4.41 | % | |||||||
Exclude impact from SBA PPP loans | (0.01) | (0.21) | |||||||||
Exclude impact from incremental accretion on acquired loans | (0.02) | (0.06) | |||||||||
Loan yield, excluding SBA PPP loans and incremental accretion on acquired loans (non-GAAP) (1) | 5.04 | % | 4.14 | % |
Three Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||
Total loans receivable, net (2) (3) | $ | 2,737,535 | $ | 32,595 | 4.72 | % | $ | 2,526,150 | $ | 30,915 | 4.87 | % | |||||||||
Taxable securities | 562,256 | 3,117 | 2.20 | 588,749 | 2,888 | 1.95 | |||||||||||||||
Nontaxable securities (3) | 229,683 | 1,354 | 2.34 | 225,994 | 1,235 | 2.17 | |||||||||||||||
Other interest earning assets | 72,643 | 258 | 1.41 | 42,934 | 76 | 0.70 | |||||||||||||||
Total interest earning assets | 3,602,117 | 37,324 | 4.11 | % | 3,383,827 | 35,114 | 4.13 | % | |||||||||||||
Noninterest earning assets | 418,100 | 408,634 | |||||||||||||||||||
Total assets | $ | 4,020,217 | $ | 3,792,461 | |||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||
Certificates of deposit | $ | 394,345 | $ | 633 | 0.64 | % | $ | 378,407 | $ | 468 | 0.49 | % | |||||||||
Savings accounts | 494,990 | 360 | 0.29 | 507,523 | 214 | 0.17 | |||||||||||||||
Interest bearing demand and money market accounts | 1,499,335 | 635 | 0.17 | 1,480,220 | 587 | 0.16 | |||||||||||||||
Total interest bearing deposits | 2,388,670 | 1,628 | 0.27 | 2,366,150 | 1,269 | 0.21 | |||||||||||||||
FHLB advances and other borrowings | 111,293 | 428 | 1.53 | 5,618 | 8 | 0.57 | |||||||||||||||
Securities sold under agreement to repurchase | 28,999 | 16 | 0.22 | 18,861 | 10 | 0.21 | |||||||||||||||
Junior subordinated debentures | 19,897 | 261 | 5.20 | 19,602 | 221 | 4.49 | |||||||||||||||
Total interest bearing liabilities | 2,548,859 | 2,333 | 0.36 | % | 2,410,231 | 1,508 | 0.25 | % | |||||||||||||
Demand and other noninterest bearing deposits | 916,074 | 844,468 | |||||||||||||||||||
Other noninterest bearing liabilities | 50,022 | 44,378 | |||||||||||||||||||
Stockholders’ equity | 505,262 | 493,384 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,020,217 | $ | 3,792,461 | |||||||||||||||||
Net interest income | $ | 34,991 | $ | 33,606 | |||||||||||||||||
Net interest spread | 3.75 | % | 3.88 | % | |||||||||||||||||
Net interest margin | 3.85 | % | 3.95 | % | |||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 141.32 | % | 140.39 | % |
Three Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
(Dollars in thousands) | ||||||||
Average loan yield, excluding incremental accretion on purchased loans (1) | 4.57 | % | 4.63 | % | ||||
Impact on average loan yield from incremental accretion on purchased loans (1) | 0.15 | % | 0.24 | % | ||||
Average loan yield | 4.72 | % | 4.87 | % | ||||
Incremental accretion on purchased loans (1) | $ | 1,036 | $ | 1,530 |
Three Months Ended September 30, | ||||||
2017 | 2016 | |||||
Net interest margin, excluding incremental accretion on purchased loans (1) | 3.74 | % | 3.77 | % | ||
Impact on net interest margin from incremental accretion on purchased loans (1) | 0.11 | 0.18 | ||||
Net interest margin | 3.85 | % | 3.95 | % |
Nine Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | Average Balance | Interest Earned/ Paid | Average Yield/ Rate (1) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||
Total loans receivable, net (2) (3) | $ | 2,676,153 | $ | 94,580 | 4.73 | % | $ | 2,461,856 | $ | 91,595 | 4.97 | % | |||||||||
Taxable securities | 565,528 | 9,307 | 2.20 | 594,301 | 8,522 | 1.92 | |||||||||||||||
Nontaxable securities (3) | 225,583 | 3,926 | 2.33 | 220,038 | 3,599 | 2.18 | |||||||||||||||
Other interest earning assets | 51,049 | 461 | 1.21 | 47,829 | 225 | 0.63 | |||||||||||||||
Total interest earning assets | 3,518,313 | 108,274 | 4.11 | % | 3,324,024 | 103,941 | 4.18 | % | |||||||||||||
Noninterest earning assets | 418,837 | 391,342 | |||||||||||||||||||
Total assets | $ | 3,937,150 | $ | 3,715,366 | |||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||
Certificates of deposit | $ | 369,724 | $ | 1,527 | 0.55 | % | $ | 397,070 | $ | 1,496 | 0.50 | % | |||||||||
Savings accounts | 499,353 | 940 | 0.25 | 478,762 | 540 | 0.15 | |||||||||||||||
Interest bearing demand and money market accounts | 1,489,149 | 1,834 | 0.16 | 1,457,399 | 1,729 | 0.16 | |||||||||||||||
Total interest bearing deposits | 2,358,226 | 4,301 | 0.24 | 2,333,231 | 3,765 | 0.22 | |||||||||||||||
FHLB advances and other borrowings | 106,556 | 870 | 1.09 | 11,608 | 47 | 0.54 | |||||||||||||||
Securities sold under agreement to repurchase | 23,660 | 38 | 0.21 | 20,031 | 31 | 0.21 | |||||||||||||||
Junior subordinated debentures | 19,823 | 748 | 5.05 | 19,527 | 647 | 4.43 | |||||||||||||||
Total interest bearing liabilities | 2,508,265 | 5,957 | 0.32 | % | 2,384,397 | 4,490 | 0.25 | % | |||||||||||||
Demand and other noninterest bearing deposits | 885,467 | 811,043 | |||||||||||||||||||
Other noninterest bearing liabilities | 47,283 | 35,266 | |||||||||||||||||||
Stockholders’ equity | 496,135 | 484,660 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,937,150 | $ | 3,715,366 | |||||||||||||||||
Net interest income | $ | 102,317 | $ | 99,451 | |||||||||||||||||
Net interest spread | 3.79 | % | 3.93 | % | |||||||||||||||||
Net interest margin | 3.89 | % | 4.00 | % | |||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 140.27 | % | 139.41 | % |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
(Dollars in thousands) | ||||||||
Average loan yield, excluding incremental accretion on purchased loans (1) | 4.55 | % | 4.66 | % | ||||
Impact on average loan yield from incremental accretion on purchased loans (1) | 0.18 | % | 0.31 | % | ||||
Average loan yield | 4.73 | % | 4.97 | % | ||||
Incremental accretion on purchased loans (1) | $ | 3,687 | $ | 5,669 |
Nine Months Ended September 30, | ||||||
2017 | 2016 | |||||
Net interest margin, excluding incremental accretion on purchased loans (1) | 3.75 | % | 3.77 | % | ||
Impact on net interest margin from incremental accretion on purchased loans (1) | 0.14 | 0.23 | ||||
Net interest margin | 3.89 | % | 4.00 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Provision for (reversal of) credit losses on loans | $ | 1,713 | $ | (2,522) | $ | 4,235 | 167.9 | % | |||||||||||||||
Provision for (reversal of) credit losses on unfunded commitments | 112 | (1,055) | 1,167 | 110.6 | |||||||||||||||||||
Provision for (reversal of) credit losses | $ | 1,825 | $ | (3,577) | $ | 5,402 | 151.0 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service charges and other fees | $ | 2,624 | $ | 2,474 | $ | 150 | 6.1 | % | |||||||||||||||
Card revenue | 2,000 | 2,263 | (263) | (11.6) | |||||||||||||||||||
Gain (loss) on sale of investment securities, net | (286) | — | (286) | 100.0 | |||||||||||||||||||
Gain on sale of loans, net | 49 | 241 | (192) | (79.7) | |||||||||||||||||||
Interest rate swap fees | 53 | 279 | (226) | (81.0) | |||||||||||||||||||
Bank owned life insurance income | 709 | 1,695 | (986) | (58.2) | |||||||||||||||||||
Gain on sale of other assets, net | 2 | 204 | (202) | (99.0) | |||||||||||||||||||
Other income | 3,107 | 1,382 | 1,725 | 124.8 | |||||||||||||||||||
Total noninterest income | $ | 8,258 | $ | 8,538 | $ | (280) | (3.3) | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | Percentage Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Service charges and other fees | $ | 4,769 | $ | 3,630 | $ | 1,139 | 31.4 | % | ||||||
Gain on sale of investment securities, net | 44 | 345 | (301 | ) | (87.2 | ) | ||||||||
Gain on sale of loans, net | 1,229 | 3,435 | (2,206 | ) | (64.2 | ) | ||||||||
Interest rate swap fees | 328 | 742 | (414 | ) | (55.8 | ) | ||||||||
Other income | 2,024 | 1,715 | 309 | 18.0 | ||||||||||
Total noninterest income | $ | 8,394 | $ | 9,867 | $ | (1,473 | ) | (14.9 | )% |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | Percentage Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Mortgage loans | $ | 875 | $ | 1,087 | $ | (212 | ) | (19.5 | )% | |||||
SBA loans | 354 | 285 | 69 | 24.2 | ||||||||||
Other loans | — | 2,063 | (2,063 | ) | (100.0 | ) | ||||||||
Total gain on sale of loans, net | $ | 1,229 | $ | 3,435 | $ | (2,206 | ) | (64.2 | )% |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | Percentage Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Service charges and other fees | $ | 13,408 | $ | 10,462 | $ | 2,946 | 28.2 | % | ||||||
Gain on sale of investment securities, net | 161 | 1,106 | (945 | ) | (85.4 | ) | ||||||||
Gain on sale of loans, net | 6,562 | 5,406 | 1,156 | 21.4 | ||||||||||
Interest rate swap fees | 743 | 1,105 | (362 | ) | (32.8 | ) | ||||||||
Other income | 5,532 | 5,354 | 178 | 3.3 | ||||||||||
Total noninterest income | $ | 26,406 | $ | 23,433 | $ | 2,973 | 12.7 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | Percentage Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Mortgage loans | $ | 2,515 | $ | 2,566 | $ | (51 | ) | (2.0 | )% | |||||
SBA loans | 1,049 | 777 | 272 | 35.0 | ||||||||||
Other loans | 2,998 | 2,063 | 935 | 45.3 | ||||||||||
Total gain on sale of loans, net | $ | 6,562 | $ | 5,406 | $ | 1,156 | 21.4 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Compensation and employee benefits | $ | 25,536 | $ | 21,252 | $ | 4,284 | 20.2 | % | |||||||||||||||
Occupancy and equipment | 4,892 | 4,331 | 561 | 13.0 | |||||||||||||||||||
Data processing | 4,342 | 4,061 | 281 | 6.9 | |||||||||||||||||||
Marketing | 402 | 266 | 136 | 51.1 | |||||||||||||||||||
Professional services | 628 | 699 | (71) | (10.2) | |||||||||||||||||||
State/municipal business and use tax | 1,008 | 796 | 212 | 26.6 | |||||||||||||||||||
Federal deposit insurance premium | 850 | 600 | 250 | 41.7 | |||||||||||||||||||
Amortization of intangible assets | 623 | 704 | (81) | (11.5) | |||||||||||||||||||
Other expense | 3,324 | 3,011 | 313 | 10.4 | |||||||||||||||||||
Total noninterest expense | $ | 41,605 | $ | 35,720 | $ | 5,885 | 16.5 | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | Percentage Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Compensation and employee benefits | $ | 15,823 | $ | 15,633 | $ | 190 | 1.2 | % | ||||||
Occupancy and equipment | 3,979 | 3,926 | 53 | 1.3 | ||||||||||
Data processing | 2,090 | 1,943 | 147 | 7.6 | ||||||||||
Marketing | 933 | 745 | 188 | 25.2 | ||||||||||
Professional services | 1,453 | 830 | 623 | 75.1 | ||||||||||
State and local taxes | 640 | 820 | (180 | ) | (22.0 | ) | ||||||||
Federal deposit insurance premium | 433 | 296 | 137 | 46.3 | ||||||||||
Other real estate owned, net | (88 | ) | (142 | ) | 54 | (38.0 | ) | |||||||
Amortization of intangible assets | 319 | 359 | (40 | ) | (11.1 | ) | ||||||||
Other expense | 2,373 | 2,408 | (35 | ) | (1.5 | ) | ||||||||
Total noninterest expense | $ | 27,955 | $ | 26,818 | $ | 1,137 | 4.2 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | Percentage Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Compensation and employee benefits | $ | 48,119 | $ | 45,652 | $ | 2,467 | 5.4 | % | ||||||
Occupancy and equipment | 11,607 | 11,873 | (266 | ) | (2.2 | ) | ||||||||
Data processing | 6,007 | 5,564 | 443 | 8.0 | ||||||||||
Marketing | 2,545 | 2,254 | 291 | 12.9 | ||||||||||
Professional services | 3,515 | 2,508 | 1,007 | 40.2 | ||||||||||
State and local taxes | 1,828 | 2,031 | (203 | ) | (10.0 | ) | ||||||||
Federal deposit insurance premium | 1,090 | 1,316 | (226 | ) | (17.2 | ) | ||||||||
Other real estate owned, net | (36 | ) | 330 | (366 | ) | (110.9 | ) | |||||||
Amortization of intangible assets | 966 | 1,057 | (91 | ) | (8.6 | ) | ||||||||
Other expense | 7,346 | 7,079 | 267 | 3.8 | ||||||||||
Total noninterest expense | $ | 82,987 | $ | 79,664 | $ | 3,323 | 4.2 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Income before income taxes | $ | 24,670 | $ | 23,339 | $ | 1,331 | 5.7 | % | |||||||||||||||
Income tax expense | $ | 4,213 | $ | 3,582 | $ | 631 | 17.6 | % | |||||||||||||||
Effective income tax rate | 17.1 | % | 15.3 | % | 1.8 | % | 11.8 | % |
March 31, 2023 | December 31, 2022 | $ Change | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 301,481 | $ | 103,590 | $ | 197,891 | 191.0 | % | |||||||||||||||
Investment securities available for sale, at fair value, net | 1,318,072 | 1,331,443 | (13,371) | (1.0) | |||||||||||||||||||
Investment securities held to maturity, at amortized cost, net | 760,163 | 766,396 | (6,233) | (0.8) | |||||||||||||||||||
Loans receivable, net | 4,083,003 | 4,007,872 | 75,131 | 1.9 | |||||||||||||||||||
Premises and equipment, net | 80,094 | 76,930 | 3,164 | 4.1 | |||||||||||||||||||
Federal Home Loan Bank stock, at cost | 23,697 | 8,916 | 14,781 | 165.8 | |||||||||||||||||||
Bank owned life insurance | 122,767 | 122,059 | 708 | 0.6 | |||||||||||||||||||
Accrued interest receivable | 18,548 | 18,547 | 1 | — | |||||||||||||||||||
Prepaid expenses and other assets | 281,438 | 296,181 | (14,743) | (5.0) | |||||||||||||||||||
Other intangible assets, net | 6,604 | 7,227 | (623) | (8.6) | |||||||||||||||||||
Goodwill | 240,939 | 240,939 | — | — | |||||||||||||||||||
Total assets | $ | 7,236,806 | $ | 6,980,100 | $ | 256,706 | 3.7 | % | |||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||
Deposits | $ | 5,771,787 | $ | 5,907,420 | $ | (135,633) | (2.3) | % | |||||||||||||||
Deposits held for sale | 17,235 | 17,420 | (185) | (1.1) | |||||||||||||||||||
Total deposits | 5,789,022 | 5,924,840 | (135,818) | (2.3) | |||||||||||||||||||
Federal Home Loan Bank advances | 383,100 | — | 383,100 | 100.0 | |||||||||||||||||||
Junior subordinated debentures | 21,546 | 21,473 | 73 | 0.3 | |||||||||||||||||||
Securities sold under agreement to repurchase | 39,161 | 46,597 | (7,436) | (16.0) | |||||||||||||||||||
Accrued expenses and other liabilities | 177,895 | 189,297 | (11,402) | (6.0) | |||||||||||||||||||
Total liabilities | 6,410,724 | 6,182,207 | 228,517 | 3.7 | |||||||||||||||||||
Common stock | 550,869 | 552,397 | (1,528) | (0.3) | |||||||||||||||||||
Retained earnings | 358,010 | 345,346 | 12,664 | 3.7 | |||||||||||||||||||
Accumulated other comprehensive (loss) income, net | (82,797) | (99,850) | 17,053 | 17.1 | |||||||||||||||||||
Total stockholders' equity | 826,082 | 797,893 | 28,189 | 3.5 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,236,806 | $ | 6,980,100 | $ | 256,706 | 3.7 | % |
September 30, 2017 | December 31, 2016 | Change | Percent Change | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 111,258 | $ | 103,745 | $ | 7,513 | 7.2 | % | |||||||
Investment securities | 800,060 | 794,645 | 5,415 | 0.7 | |||||||||||
Loans held for sale | 5,368 | 11,662 | (6,294 | ) | (54.0 | ) | |||||||||
Total loans receivable, net | 2,766,113 | 2,609,666 | 156,447 | 6.0 | |||||||||||
Other real estate owned | 523 | 754 | (231 | ) | (30.6 | ) | |||||||||
Premises and equipment, net | 60,457 | 63,911 | (3,454 | ) | (5.4 | ) | |||||||||
Federal Home Loan Bank stock, at cost | 9,343 | 7,564 | 1,779 | 23.5 | |||||||||||
Bank owned life insurance | 71,474 | 70,355 | 1,119 | 1.6 | |||||||||||
Accrued interest receivable | 12,295 | 10,925 | 1,370 | 12.5 | |||||||||||
Prepaid expenses and other assets | 87,728 | 79,351 | 8,377 | 10.6 | |||||||||||
Other intangible assets, net | 6,408 | 7,374 | (966 | ) | (13.1 | ) | |||||||||
Goodwill | 119,029 | 119,029 | — | — | |||||||||||
Total assets | $ | 4,050,056 | $ | 3,878,981 | $ | 171,075 | 4.4 | % | |||||||
Liabilities | |||||||||||||||
Deposits | $ | 3,320,818 | $ | 3,229,648 | $ | 91,170 | 2.8 | ||||||||
Federal Home Loan Bank advances | 117,400 | 79,600 | 37,800 | 47.5 | |||||||||||
Junior subordinated debentures | 19,936 | 19,717 | 219 | 1.1 | |||||||||||
Securities sold under agreement to repurchase | 28,668 | 22,104 | 6,564 | 29.7 | |||||||||||
Accrued expenses and other liabilities | 55,626 | 46,149 | 9,477 | 20.5 | |||||||||||
Total liabilities | 3,542,448 | 3,397,218 | 145,230 | 4.3 | |||||||||||
Stockholders' equity | |||||||||||||||
Common stock | 360,113 | 359,060 | 1,053 | 0.3 | |||||||||||
Retained earnings | 145,677 | 125,309 | 20,368 | 16.3 | |||||||||||
Accumulated other comprehensive income (loss), net | 1,818 | (2,606 | ) | 4,424 | 169.8 | ||||||||||
Total stockholders' equity | 507,608 | 481,763 | 25,845 | 5.4 | |||||||||||
Total liabilities and stockholders' equity | $ | 4,050,056 | $ | 3,878,981 | $ | 171,075 | 4.4 | % |
September 30, 2017 | December 31, 2016 | ||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||
(Dollars in thousands) | |||||||||||||
Commercial business: | |||||||||||||
Commercial and industrial | $ | 665,582 | 23.8 | % | $ | 637,773 | 24.2 | % | |||||
Owner-occupied commercial real estate | 602,238 | 21.5 | 558,035 | 21.1 | |||||||||
Non-owner occupied commercial real estate | 930,188 | 33.3 | 880,880 | 33.4 | |||||||||
Total commercial business | 2,198,008 | 78.6 | 2,076,688 | 78.7 | |||||||||
One-to-four family residential | 81,422 | 2.9 | 77,391 | 2.9 | |||||||||
Real estate construction and land development: | |||||||||||||
One-to-four family residential | 51,451 | 1.8 | 50,414 | 1.9 | |||||||||
Five or more family residential and commercial properties | 122,981 | 4.4 | 108,764 | 4.1 | |||||||||
Total real estate construction and land development | 174,432 | 6.2 | 159,178 | 6.0 | |||||||||
Consumer | 340,643 | 12.2 | 325,140 | 12.3 | |||||||||
Gross loans receivable | 2,794,505 | 99.9 | 2,638,397 | 99.9 | |||||||||
Deferred loan costs, net | 3,008 | 0.1 | 2,352 | 0.1 | |||||||||
Loans receivable, net | $ | 2,797,513 | 100.0 | % | $ | 2,640,749 | 100.0 | % |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Nonaccrual loans: | |||||||
Commercial business | $ | 9,683 | $ | 8,580 | |||
One-to-four family residential | 84 | 94 | |||||
Real estate construction and land development | 869 | 2,008 | |||||
Consumer | 316 | 227 | |||||
Total nonaccrual loans (1)(2) | 10,952 | 10,909 | |||||
Other real estate owned | 523 | 754 | |||||
Total nonperforming assets | $ | 11,475 | $ | 11,663 | |||
Allowance for loan losses | $ | 31,400 | $ | 31,083 | |||
Allowance for loan losses to loans receivable, net | 1.12 | % | 1.18 | % | |||
Allowance for loan losses to nonperforming loans | 286.71 | % | 284.93 | % | |||
Nonperforming loans to loans receivable, net | 0.39 | % | 0.41 | % | |||
Nonperforming assets to total assets | 0.28 | % | 0.30 | % | |||
Performing TDR loans: | |||||||
Commercial business | $ | 18,571 | $ | 19,837 | |||
One-to-four family residential | 219 | 227 | |||||
Real estate construction and land development | 1,136 | 2,141 | |||||
Consumer | 118 | 83 | |||||
Total performing TDR loans (3) | $ | 20,044 | $ | 22,288 | |||
Accruing loans past due 90 days or more (4) | $ | — | $ | — | |||
Potential problem loans (5) | 84,089 | 87,762 |
March 31, 2023 | December 31, 2022 | Change | |||||||||||||||||||||||||||||||||
Balance | % of Total | Balance | % of Total | $ | % | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Investment securities available for sale, at fair value: | |||||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 64,550 | 3.1 | % | $ | 63,859 | 3.0 | % | $ | 691 | 1.1 | % | |||||||||||||||||||||||
Municipal securities | 132,497 | 6.4 | 153,026 | 7.3 | (20,529) | (13.4) | |||||||||||||||||||||||||||||
Residential CMO and MBS(1) | 433,712 | 20.9 | 424,386 | 20.2 | 9,326 | 2.2 | |||||||||||||||||||||||||||||
Commercial CMO and MBS(1) | 663,497 | 31.8 | 664,421 | 31.8 | (924) | (0.1) | |||||||||||||||||||||||||||||
Corporate obligations | 3,817 | 0.2 | 3,834 | 0.2 | (17) | (0.4) | |||||||||||||||||||||||||||||
Other asset-backed securities | 19,999 | 1.0 | 21,917 | 1.0 | (1,918) | (8.8) | |||||||||||||||||||||||||||||
Total | $ | 1,318,072 | 63.4 | % | $ | 1,331,443 | 63.5 | % | $ | (13,371) | (1.0) | % | |||||||||||||||||||||||
Investment securities held to maturity, at amortized cost: | |||||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 150,969 | 7.3 | % | $ | 150,936 | 7.2 | % | $ | 33 | — | % | |||||||||||||||||||||||
Residential CMO and MBS(1) | 285,337 | 13.7 | 290,318 | 13.8 | (4,981) | (1.7) | |||||||||||||||||||||||||||||
Commercial CMO and MBS(1) | 323,857 | 15.6 | 325,142 | 15.5 | (1,285) | (0.4) | |||||||||||||||||||||||||||||
Total | $ | 760,163 | 36.6 | % | $ | 766,396 | 36.5 | % | $ | (6,233) | (0.8) | % | |||||||||||||||||||||||
Total investment securities | $ | 2,078,235 | 100.0 | % | $ | 2,097,839 | 100.0 | % | $ | (19,604) | (0.9) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Loans receivable, net at the end of the period | $ | 2,797,513 | $ | 2,578,977 | $ | 2,797,513 | $ | 2,578,977 | |||||||
Average loans receivable during the period | 2,737,535 | 2,526,150 | 2,676,153 | 2,461,856 | |||||||||||
Allowance for loan losses on loans at the beginning of the period | $ | 32,751 | $ | 28,426 | $ | 31,083 | $ | 29,746 | |||||||
Provision for loan losses | 884 | 1,495 | 2,882 | 3,754 | |||||||||||
Charge-offs: | |||||||||||||||
Commercial business | (1,497 | ) | (328 | ) | (1,940 | ) | (3,698 | ) | |||||||
One-to-four family residential | (15 | ) | — | (15 | ) | — | |||||||||
Real estate construction and land development | (556 | ) | — | (556 | ) | (154 | ) | ||||||||
Consumer | (478 | ) | (572 | ) | (1,419 | ) | (1,370 | ) | |||||||
Total charge-offs | (2,546 | ) | (900 | ) | (3,930 | ) | (5,222 | ) | |||||||
Recoveries: | |||||||||||||||
Commercial business | 8 | 993 | 834 | 1,352 | |||||||||||
One-to-four family residential | — | — | 1 | 2 | |||||||||||
Real estate construction and land development | 191 | — | 201 | 83 | |||||||||||
Consumer | 112 | 197 | 329 | 496 | |||||||||||
Total recoveries | 311 | 1,190 | 1,365 | 1,933 | |||||||||||
Net (charge-offs) recoveries | (2,235 | ) | 290 | (2,565 | ) | (3,289 | ) | ||||||||
Allowance for loan losses at the end of the period | $ | 31,400 | $ | 30,211 | $ | 31,400 | $ | 30,211 | |||||||
Allowance for loan losses to loans receivable, net | 1.12 | % | 1.17 | % | 1.12 | % | 1.17 | % | |||||||
Net charge-offs (recoveries) on loans to average loans, annualized | 0.32 | % | (0.05 | )% | 0.13 | % | 0.18 | % |
March 31, 2023 | December 31, 2022 | Change | |||||||||||||||||||||||||||||||||
Amortized Cost | % of Loans Receivable | Amortized Cost | % of Loans Receivable | $ | % | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial business: | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 684,998 | 16.6 | % | $ | 692,100 | 17.1 | % | $ | (7,102) | (1.0) | % | |||||||||||||||||||||||
SBA PPP | 900 | — | 1,468 | — | (568) | (38.7) | |||||||||||||||||||||||||||||
Owner-occupied CRE | 949,064 | 23.0 | 937,040 | 23.1 | 12,024 | 1.3 | |||||||||||||||||||||||||||||
Non-owner occupied CRE | 1,601,789 | 38.8 | 1,586,632 | 39.2 | 15,157 | 1.0 | |||||||||||||||||||||||||||||
Total commercial business | 3,236,751 | 78.4 | 3,217,240 | 79.4 | 19,511 | 0.6 | |||||||||||||||||||||||||||||
Residential real estate | 363,777 | 8.8 | 343,631 | 8.5 | 20,146 | 5.9 |
March 31, 2023 | December 31, 2022 | Change | |||||||||||||||||||||||||||||||||
Amortized Cost | % of Loans Receivable | Amortized Cost | % of Loans Receivable | $ | % | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Real estate construction and land development: | |||||||||||||||||||||||||||||||||||
Residential | 72,926 | 1.8 | 80,074 | 2.0 | (7,148) | (8.9) | |||||||||||||||||||||||||||||
Commercial and multifamily | 270,547 | 6.6 | 214,038 | 5.3 | 56,509 | 26.4 | |||||||||||||||||||||||||||||
Total real estate construction and land development | 343,473 | 8.4 | 294,112 | 7.3 | 49,361 | 16.8 | |||||||||||||||||||||||||||||
Consumer | 183,471 | 4.4 | 195,875 | 4.8 | (12,404) | (6.3) | |||||||||||||||||||||||||||||
Total | $ | 4,127,472 | 100.0 | % | $ | 4,050,858 | 100.0 | % | $ | 76,614 | 1.9 | % |
March 31, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Nonaccrual loans: (1) | |||||||||||||||||||||||
Commercial business | $ | 4,815 | $ | 5,869 | $ | (1,054) | (18.0) | % | |||||||||||||||
Real estate construction and land development | — | 37 | (37) | (100.0) | |||||||||||||||||||
Total nonaccrual loans | 4,815 | 5,906 | (1,091) | (18.5) | |||||||||||||||||||
Other real estate owned | — | — | — | n/a | |||||||||||||||||||
Total nonperforming assets | $ | 4,815 | $ | 5,906 | $ | (1,091) | (18.5) | % | |||||||||||||||
Accruing loans past due 90 days or more | $ | 2,344 | $ | 1,615 | $ | 729 | 45.1 | % | |||||||||||||||
Credit quality ratios: | |||||||||||||||||||||||
Nonaccrual loans to loans receivable | 0.12 | % | 0.15 | % | (0.03) | % | (20.0) | % | |||||||||||||||
Nonaccrual loans to total assets | 0.07 | 0.08 | (0.01) | (12.5) | |||||||||||||||||||
Modified loans: (2) | |||||||||||||||||||||||
Commercial business | $ | 3,035 | |||||||||||||||||||||
Consumer | 25 | ||||||||||||||||||||||
Total performing modified loans | $ | 3,060 |
(In thousands) | |||||
Balance, beginning of period | $ | 5,906 | |||
Additions | 468 | ||||
Net principal payments, sales and transfers to accruing status | (909) | ||||
Payoffs | (650) | ||||
Charge-offs | — | ||||
Balance, end of period | $ | 4,815 |
At or For the Three Months Ended March 31, | Change | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
ACL on loans at the end of period | $ | 44,469 | $ | 40,333 | $ | 4,136 | 10.3 | % | |||||||||||||||
Credit quality ratios: | |||||||||||||||||||||||
ACL on loans to loans receivable | 1.08 | % | 1.06 | % | 0.02 | 1.9 | |||||||||||||||||
ACL on loans to nonaccrual loans | 923.55 | 244.04 | 679.51 | 278.4 | |||||||||||||||||||
Net (charge-offs) recoveries | $ | (230) | $ | 494 | $ | (724) | (146.6) | ||||||||||||||||
Average loans receivable, net during the period (1) | 4,039,395 | 3,773,325 | 266,070 | 7.1 | |||||||||||||||||||
Net charge-offs (recoveries) on loans to average loans receivable, net(2) | 0.02 | % | (0.05) | % | 0.07 | % | 140.0 | % |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
ACL on Loans | ACL as a % of Loans in Loan Category | % of Loans in Loan Category to Total Loans | ACL on Loans | ACL as a % of Loans in Loan Category | % of Loans in Loan Category to Total Loans | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial business | $ | 29,937 | 0.92 | % | 78.4 | % | $ | 30,718 | 0.95 | % | 79.4 | % | |||||||||||||||||||||||||||||||||||
Residential real estate | 2,902 | 0.80 | % | 8.8 | 2,872 | 0.84 | 8.5 | ||||||||||||||||||||||||||||||||||||||||
Real estate construction and land development | 8,985 | 2.62 | % | 8.4 | 7,063 | 2.40 | 7.3 | ||||||||||||||||||||||||||||||||||||||||
Consumer | 2,645 | 1.44 | % | 4.4 | 2,333 | 1.19 | 4.8 | ||||||||||||||||||||||||||||||||||||||||
Total ACL on loans | $ | 44,469 | 1.08 | % | 100.0 | % | $ | 42,986 | 1.06 | % | 100.0 | % |
March 31, 2023 | December 31, 2022 | Change | |||||||||||||||||||||||||||||||||
Balance (1) | % of Total Deposits | Balance | % of Total Deposits | $ | % | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest demand deposits | $ | 1,982,909 | 34.3 | % | $ | 2,099,464 | 35.5 | % | $ | (116,555) | (5.6) | % | |||||||||||||||||||||||
Interest bearing demand deposits | 1,675,393 | 28.9 | 1,830,727 | 30.9 | (155,334) | (8.5) | |||||||||||||||||||||||||||||
Money market accounts | 1,155,559 | 20.0 | 1,063,243 | 17.9 | 92,316 | 8.7 | |||||||||||||||||||||||||||||
Savings accounts | 578,807 | 10.0 | 623,833 | 10.5 | (45,026) | (7.2) | |||||||||||||||||||||||||||||
Total non-maturity deposits | 5,392,668 | 93.2 | 5,617,267 | 94.8 | (224,599) | (4.0) | |||||||||||||||||||||||||||||
Certificates of deposit | 396,354 | 6.8 | 307,573 | 5.2 | 88,781 | 28.9 | |||||||||||||||||||||||||||||
Total deposits | $ | 5,789,022 | 100.0 | % | $ | 5,924,840 | 100.0 | % | $ | (135,818) | (2.3) | % |
Company | Bank | ||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||
Common equity Tier 1 capital ratio | 12.9 | % | 12.8 | % | 13.0 | % | 12.9 | % | |||||||||||||||
Leverage ratio | 9.9 | 9.7 | 9.7 | 9.4 | |||||||||||||||||||
Tier 1 capital ratio | 13.3 | 13.2 | 13.0 | 12.9 | |||||||||||||||||||
Total capital ratio | 14.1 | 14.0 | 13.9 | 13.7 | |||||||||||||||||||
Capital conservation buffer | 6.1 | 6.0 | 5.9 | 5.7 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
General Valuation Allowance: | |||||||
Allowance for loan losses | $ | 24,113 | $ | 21,791 | |||
Gross loans, excluding PCI and impaired loans | $ | 2,719,813 | $ | 2,540,751 | |||
Percentage | 0.89 | % | 0.86 | % | |||
PCI Allowance: | |||||||
Allowance for loan losses | $ | 4,176 | $ | 6,558 | |||
Gross PCI loans | $ | 43,696 | $ | 64,448 | |||
Percentage | 9.56 | % | 10.18 | % | |||
Specific Valuation Allowance: | |||||||
Allowance for loan losses | $ | 3,111 | $ | 2,734 | |||
Gross impaired loans | $ | 30,996 | $ | 33,198 | |||
Percentage | 10.04 | % | 8.24 | % | |||
Total Allowance for Loan Losses: | |||||||
Allowance for loan losses | $ | 31,400 | $ | 31,083 | |||
Gross loans receivable | $ | 2,794,505 | $ | 2,638,397 | |||
Percentage | 1.12 | % | 1.18 | % |
September 30, 2017 | December 31, 2016 | ||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||
(Dollars in thousands) | |||||||||||||
Noninterest bearing demand deposits | $ | 916,265 | 27.6 | % | $ | 882,091 | 27.3 | % | |||||
Interest bearing demand deposits | 1,031,449 | 31.0 | 963,821 | 29.8 | |||||||||
Money market accounts | 480,899 | 14.5 | 523,875 | 16.2 | |||||||||
Savings accounts | 497,024 | 15.0 | 502,460 | 15.6 | |||||||||
Total non-maturity deposits | 2,925,637 | 88.1 | 2,872,247 | 88.9 | |||||||||
Certificates of deposit | 395,181 | 11.9 | 357,401 | 11.1 | |||||||||
Total deposits | $ | 3,320,818 | 100.0 | % | $ | 3,229,648 | 100.0 | % |
March 31, 2023 | |||||||||||||||||
Total Available | Amount Used | Net Availability | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Internal Sources | |||||||||||||||||
Cash and cash equivalents | $ | 301,481 | $ | — | $ | 301,481 | |||||||||||
Unencumbered investment securities available for sale(1) | 1,116,013 | — | 1,116,013 | ||||||||||||||
External Sources | — | ||||||||||||||||
Federal Home Loan Bank (FHLB) borrowing availability(2) | 1,197,964 | 383,100 | 814,864 | ||||||||||||||
Federal Reserve Bank (FRB) borrowing availability(3) | 640,635 | — | 640,635 | ||||||||||||||
Fed funds line borrowing availability with correspondent banks | 215,000 | — | 215,000 | ||||||||||||||
Total liquidity | $ | 3,471,093 | $ | 383,100 | $ | 3,087,993 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loan yield, excluding SBA PPP Loans and Incremental Accretion on Acquired Loans, annualized: | |||||||||||||||||||||||
Interest and fees on loans (GAAP) | $ | 50,450 | $ | 41,025 | |||||||||||||||||||
Exclude interest and fees on SBA PPP loans | (26) | (3,081) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Exclude incremental accretion on acquired loans | (253) | (584) | |||||||||||||||||||||
Adjusted interest and fees on loans (non-GAAP) | $ | 50,171 | $ | 37,360 | |||||||||||||||||||
Average loans receivable, net (GAAP) | $ | 4,039,395 | $ | 3,773,325 | |||||||||||||||||||
Exclude average SBA PPP loans | (1,071) | (109,594) | |||||||||||||||||||||
Adjusted average loans receivable, net (non-GAAP) | $ | 4,038,324 | $ | 3,663,731 | |||||||||||||||||||
Loan yield, annualized (GAAP) | 5.07 | % | 4.41 | % | |||||||||||||||||||
Loan yield, excluding SBA PPP loans and incremental accretion on acquired loans, annualized (non-GAAP) | 5.04 | % | 4.14 | % |
Minimum Requirements | Well-Capitalized Requirements | Actual | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
As of September 30, 2017: | |||||||||||||||||||||
The Company consolidated | |||||||||||||||||||||
Common equity Tier 1 capital to risk-weighted assets | $ | 151,086 | 4.5 | % | N/A | N/A | $ | 383,546 | 11.4 | % | |||||||||||
Tier 1 leverage capital to average assets | 155,761 | 4.0 | N/A | N/A | 403,444 | 10.4 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 201,448 | 6.0 | N/A | N/A | 403,444 | 12.0 | |||||||||||||||
Total capital to risk-weighted assets | 268,598 | 8.0 | N/A | N/A | 435,119 | 13.0 | |||||||||||||||
Heritage Bank | |||||||||||||||||||||
Common equity Tier 1 capital to risk-weighted assets | 150,874 | 4.5 | $ | 217,929 | 6.5 | % | 388,852 | 11.6 | |||||||||||||
Tier 1 leverage capital to average assets | 155,582 | 4.0 | 194,478 | 5.0 | 388,852 | 10.0 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 201,165 | 6.0 | 268,221 | 8.0 | 388,852 | 11.6 | |||||||||||||||
Total capital to risk-weighted assets | 268,221 | 8.0 | 335,276 | 10.0 | 420,422 | 12.5 | |||||||||||||||
As of December 31, 2016: | |||||||||||||||||||||
The Company consolidated | |||||||||||||||||||||
Common equity Tier 1 capital to risk-weighted assets | $ | 142,688 | 4.5 | % | N/A | N/A | $ | 362,350 | 11.4 | % | |||||||||||
Tier 1 leverage capital to average assets | 148,144 | 4.0 | N/A | N/A | 381,989 | 10.3 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 190,250 | 6.0 | N/A | N/A | 381,989 | 12.0 | |||||||||||||||
Total capital to risk-weighted assets | 253,667 | 8.0 | N/A | N/A | 413,320 | 13.0 | |||||||||||||||
Heritage Bank | |||||||||||||||||||||
Common equity Tier 1 capital to risk-weighted assets | 142,573 | 4.5 | $ | 205,938 | 6.5 | % | 369,915 | 11.7 | |||||||||||||
Tier 1 leverage capital to average assets | 148,024 | 4.0 | 185,030 | 5.0 | 369,915 | 10.0 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 190,097 | 6.0 | 253,462 | 8.0 | 369,915 | 11.7 | |||||||||||||||
Total capital to risk-weighted assets | 253,462 | 8.0 | 316,828 | 10.0 | 401,168 | 12.7 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amount | % Change in Net Interest Income | Amount | % Change in Net Interest Income | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Modeled increase in market interest rates of 100 basis points | |||||||||||||||||||||||
Increase in net interest income in Year 1 | $ | 2,198 | 0.9 | % | $ | 5,113 | 2.0 | % | |||||||||||||||
Increase in net interest income in Year 2 | 7,871 | 3.1 | 11,147 | 4.1 | |||||||||||||||||||
Modeled increase in market interest rates of 200 basis points | |||||||||||||||||||||||
Increase in net interest income in Year 1 | 2,412 | 1.0 | 8,181 | 3.2 | |||||||||||||||||||
Increase in net interest income in Year 2 | 13,218 | 5.2 | 19,889 | 7.3 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amount | % Change in Net Interest Income | Amount | % Change in Net Interest Income | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Modeled decrease in market interest rates of 100 basis points | |||||||||||||||||||||||
Decrease in net interest income in Year 1 | (2,011) | (0.8) | (5,433) | (2.1) | |||||||||||||||||||
Decrease in net interest income in Year 2 | (6,425) | (2.5) | (10,534) | (3.9) | |||||||||||||||||||
Modeled decrease in market interest rates of 200 basis points | |||||||||||||||||||||||
Decrease in net interest income in Year 1 | (7,879) | (3.3) | (16,840) | (6.6) | |||||||||||||||||||
Decrease in net interest income in Year 2 | $ | (19,686) | (7.7) | % | $ | (29,942) | (11.0) | % |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (1) | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs (2) | |||||||||||||||||||
January 1, 2023—January 31, 2023 | — | $ | — | 9,986,863 | 638,214 | ||||||||||||||||||
February 1, 2023— February 28, 2023 | 40 | 28.28 | 9,986,863 | 638,214 | |||||||||||||||||||
March 1, 2023—March 31, 2023 | 115,039 | 22.83 | 10,075,218 | 549,859 | |||||||||||||||||||
Total | 115,079 | $ | 22.83 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Plan Total (1) | |||||||||||||||
Eleventh Plan | |||||||||||||||||||
Repurchased shares | — | 38,000 | — | 138,000 | 579,996 | ||||||||||||||
Stock repurchase average share price | $ | — | $ | 17.46 | $ | — | $ | 17.16 | $ | 16.76 |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 1, 2017— July 31, 2017 | — | $ | — | 7,893,389 | 935,034 | ||||||||
August 1, 2017— August 31, 2017 | — | — | 7,893,389 | 935,034 | |||||||||
September 1, 2017— September 30, 2017 | 344 | 25.80 | 7,893,389 | 935,034 | |||||||||
Total | 344 | $ | 25.80 | 7,893,389 | 935,034 |
Incorporated by Reference | ||||||||||||||||||||||||||
Exhibit No. | Description of Exhibit | Form | Exhibit | Filing Date/Period End Date | ||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||
32.1 | ||||||||||||||||||||||||||
101.INS | XBRL Instance Document (1) | |||||||||||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document (1) | |||||||||||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (1) | |||||||||||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (1) | |||||||||||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (1) | |||||||||||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (1) | |||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | |||||||||||||||||||||||||
Incorporated by Reference | |||||||||
Exhibit No. | Description of Exhibit | Form | Exhibit | Filing Date/Period End Date | |||||
2.5 | 8-K | 2.1 | 7/27/17 | ||||||
31.1 | |||||||||
31.2 | |||||||||
32.1 | |||||||||
101 | The following financial information from Heritage Financial Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 is formatted in XBRL: (i) the Unaudited Condensed Consolidated Statements of Financial Condition, (ii) the Unaudited Condensed Consolidated Statements of Income, (iii) the Unaudited Condensed Consolidated Statements Comprehensive Income, (iv) the Unaudited Condensed Consolidated Statements of Stockholders’ Equity, (v) the Unaudited Condensed Consolidated Statements of Cash Flows and (vi) the Unaudited Notes to Condensed Consolidated Financial Statements. |
HERITAGE FINANCIAL CORPORATION | ||||||||
Date: | ||||||||
/S/ JEFFREY J. DEUEL | ||||||||
President and Chief Executive Officer | ||||||||
Date: | ||||||||
May 4, 2023 | ||||||||
/S/ DONALD J. HINSON | ||||||||
Donald J. Hinson | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||