☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number | 001-35968 |
Iowa | 42-1206172 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
102 South Clinton Street, Iowa City, IA 52240 | (319) 356-5800 | |||||||
(Address of principal executive offices, including zip code) | (Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, $1.00 par value | MOFG | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | x | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page No. | ||||||||||||||
PART I | ||||||||||||||
Item 1. | Financial Statements (unaudited) | |||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Part II | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
ACL | Allowance for Credit Losses | FHLBC | Federal Home Loan Bank of Chicago | ||||||||
AFS | Available for Sale | FHLBDM | Federal Home Loan Bank of Des Moines | ||||||||
AOCI | Accumulated Other Comprehensive Income | FHLMC | Federal Home Loan Mortgage Corporation | ||||||||
ASC | Accounting Standards Codification | FNBF | First National Bank in Fairfield | ||||||||
ASU | Accounting Standards Update | FNBM | First National Bank of Muscatine | ||||||||
ATM | Automated Teller Machine | FNMA | Federal National Mortgage Association | ||||||||
Basel III Rules | A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013 | FRB | Board of Governors of the Federal Reserve System | ||||||||
BHCA | Bank Holding Company Act of 1956, as amended | GAAP | U.S. Generally Accepted Accounting Principles | ||||||||
BOLI | Bank Owned Life Insurance | GLBA | Gramm-Leach-Bliley Act of 1999 | ||||||||
CAA | Consolidated Appropriations Act, 2021 | GNMA | Government National Mortgage Association | ||||||||
CARES Act | Coronavirus Aid, Relief and Economic Security Act | ICS | Insured Cash Sweep | ||||||||
CDARS | Certificate of Deposit Account Registry Service | IOFB | Iowa First Bancshares Corp. | ||||||||
CECL | Current Expected Credit Loss | LIBOR | The London Inter-bank Offered Rate | ||||||||
CMO | Collateralized Mortgage Obligations | MBS | Mortgage-Backed Securities | ||||||||
COVID-19 | Coronavirus Disease 2019 | PCD | Purchase Credit Deteriorated | ||||||||
CRA | Community Reinvestment Act | PPP | Paycheck Protection Program | ||||||||
CRE | Commercial Real Estate | ROU | Right-of-Use | ||||||||
DCF | Discounted Cash Flows | RPA | Credit Risk Participation Agreement | ||||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | RRE | Residential Real Estate | ||||||||
ECL | Expected Credit Losses | SBA | U.S. Small Business Administration | ||||||||
EVE | Economic Value of Equity | SEC | U.S. Securities and Exchange Commission | ||||||||
FASB | Financial Accounting Standards Board | SOFR | Secured Overnight Financing Rate | ||||||||
FDIC | Federal Deposit Insurance Corporation | TDR | Troubled Debt Restructuring | ||||||||
FHLB | Federal Home Loan Bank |
June 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
(unaudited) (dollars in thousands, except per share amounts) | (unaudited) (dollars in thousands, except per share amounts) | (unaudited) (dollars in thousands, except per share amounts) | ||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||
Cash and due from banks | Cash and due from banks | $ | 60,622 | $ | 42,949 | Cash and due from banks | $ | 75,955 | $ | 83,990 | ||||||||||||
Interest earning deposits in banks | Interest earning deposits in banks | 23,242 | 160,881 | Interest earning deposits in banks | 68,603 | 2,445 | ||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | 83,864 | 203,830 | Total cash and cash equivalents | 144,558 | 86,435 | ||||||||||||||||
Debt securities available for sale at fair value | Debt securities available for sale at fair value | 1,234,789 | 2,288,110 | Debt securities available for sale at fair value | 903,520 | 1,153,547 | ||||||||||||||||
Held to maturity securities at amortized cost | Held to maturity securities at amortized cost | 1,168,042 | — | Held to maturity securities at amortized cost | 1,099,569 | 1,129,421 | ||||||||||||||||
Total securities | Total securities | 2,402,831 | 2,288,110 | Total securities | 2,003,089 | 2,282,968 | ||||||||||||||||
Loans held for sale | Loans held for sale | 4,991 | 12,917 | Loans held for sale | 2,821 | 612 | ||||||||||||||||
Gross loans held for investment | Gross loans held for investment | 3,627,728 | 3,252,194 | Gross loans held for investment | 4,031,377 | 3,854,791 | ||||||||||||||||
Unearned income, net | Unearned income, net | (16,576) | (7,182) | Unearned income, net | (12,728) | (14,267) | ||||||||||||||||
Loans held for investment, net of unearned income | Loans held for investment, net of unearned income | 3,611,152 | 3,245,012 | Loans held for investment, net of unearned income | 4,018,649 | 3,840,524 | ||||||||||||||||
Allowance for credit losses | Allowance for credit losses | (52,350) | (48,700) | Allowance for credit losses | (50,400) | (49,200) | ||||||||||||||||
Total loans held for investment, net | Total loans held for investment, net | 3,558,802 | 3,196,312 | Total loans held for investment, net | 3,968,249 | 3,791,324 | ||||||||||||||||
Premises and equipment, net | Premises and equipment, net | 89,048 | 83,492 | Premises and equipment, net | 85,831 | 87,125 | ||||||||||||||||
Goodwill | Goodwill | 62,477 | 62,477 | Goodwill | 62,477 | 62,477 | ||||||||||||||||
Other intangible assets, net | Other intangible assets, net | 33,874 | 19,885 | Other intangible assets, net | 26,969 | 30,315 | ||||||||||||||||
Foreclosed assets, net | Foreclosed assets, net | 284 | 357 | Foreclosed assets, net | — | 103 | ||||||||||||||||
Other assets | Other assets | 206,320 | 157,748 | Other assets | 227,495 | 236,517 | ||||||||||||||||
Total assets | Total assets | $ | 6,442,491 | $ | 6,025,128 | Total assets | $ | 6,521,489 | $ | 6,577,876 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Noninterest bearing deposits | Noninterest bearing deposits | $ | 1,114,825 | $ | 1,005,369 | Noninterest bearing deposits | $ | 897,923 | $ | 1,053,450 | ||||||||||||
Interest bearing deposits | Interest bearing deposits | 4,422,616 | 4,109,150 | Interest bearing deposits | 4,547,524 | 4,415,492 | ||||||||||||||||
Total deposits | Total deposits | 5,537,441 | 5,114,519 | Total deposits | 5,445,447 | 5,468,942 | ||||||||||||||||
Short-term borrowings | Short-term borrowings | 193,894 | 181,368 | Short-term borrowings | 362,054 | 391,873 | ||||||||||||||||
Long-term debt | Long-term debt | 159,168 | 154,879 | Long-term debt | 125,752 | 139,210 | ||||||||||||||||
Other liabilities | Other liabilities | 63,156 | 46,887 | Other liabilities | 86,895 | 85,058 | ||||||||||||||||
Total liabilities | Total liabilities | 5,953,659 | 5,497,653 | Total liabilities | 6,020,148 | 6,085,083 | ||||||||||||||||
Shareholders' equity | Shareholders' equity | Shareholders' equity | ||||||||||||||||||||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | — | — | Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | — | — | ||||||||||||||||
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,635,131 and 15,671,147 | 16,581 | 16,581 | ||||||||||||||||||||
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,685,123 and 15,623,977 | Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,685,123 and 15,623,977 | 16,581 | 16,581 | |||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 300,859 | 300,940 | Additional paid-in capital | 301,424 | 302,085 | ||||||||||||||||
Retained earnings | Retained earnings | 262,395 | 243,365 | Retained earnings | 290,548 | 289,289 | ||||||||||||||||
Treasury stock at cost, 945,886 and 909,870 shares | (25,772) | (24,546) | ||||||||||||||||||||
Treasury stock at cost, 895,894 and 957,040 shares | Treasury stock at cost, 895,894 and 957,040 shares | (24,508) | (26,115) | |||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (65,231) | (8,865) | Accumulated other comprehensive loss | (82,704) | (89,047) | ||||||||||||||||
Total shareholders' equity | Total shareholders' equity | 488,832 | 527,475 | Total shareholders' equity | 501,341 | 492,793 | ||||||||||||||||
Total liabilities and shareholders' equity | Total liabilities and shareholders' equity | $ | 6,442,491 | $ | 6,025,128 | Total liabilities and shareholders' equity | $ | 6,521,489 | $ | 6,577,876 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) (dollars in thousands, except per share amounts) | (unaudited) (dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | (unaudited) (dollars in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | Interest income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, including fees | Loans, including fees | $ | 32,746 | $ | 34,736 | $ | 64,064 | $ | 71,278 | Loans, including fees | $ | 49,726 | $ | 32,746 | $ | 96,216 | $ | 64,064 | ||||||||||||||||||||||||||||||||||
Taxable investment securities | Taxable investment securities | 9,576 | 6,483 | 17,699 | 11,576 | Taxable investment securities | 9,734 | 9,576 | 20,178 | 17,699 | ||||||||||||||||||||||||||||||||||||||||||
Tax-exempt investment securities | Tax-exempt investment securities | 2,367 | 2,549 | 4,750 | 5,104 | Tax-exempt investment securities | 1,822 | 2,367 | 3,949 | 4,750 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 40 | 19 | 68 | 33 | Other | 68 | 40 | 312 | 68 | ||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | 44,729 | 43,787 | 86,581 | 87,991 | Total interest income | 61,350 | 44,729 | 120,655 | 86,581 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | Interest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits | 3,173 | 3,409 | 6,083 | 7,017 | Deposits | 20,117 | 3,173 | 35,436 | 6,083 | ||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | Short-term borrowings | 229 | 161 | 348 | 289 | Short-term borrowings | 2,118 | 229 | 3,904 | 348 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 1,602 | 1,712 | 3,089 | 3,563 | Long-term debt | 2,153 | 1,602 | 4,277 | 3,089 | ||||||||||||||||||||||||||||||||||||||||||
Total interest expense | Total interest expense | 5,004 | 5,282 | 9,520 | 10,869 | Total interest expense | 24,388 | 5,004 | 43,617 | 9,520 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 39,725 | 38,505 | 77,061 | 77,122 | Net interest income | 36,962 | 39,725 | 77,038 | 77,061 | ||||||||||||||||||||||||||||||||||||||||||
Credit loss expense (benefit) | 3,282 | (2,144) | 3,282 | (6,878) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after credit loss expense (benefit) | 36,443 | 40,649 | 73,779 | 84,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Credit loss expense | Credit loss expense | 1,597 | 3,282 | 2,530 | 3,282 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after credit loss expense | Net interest income after credit loss expense | 35,365 | 36,443 | 74,508 | 73,779 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income | Noninterest income | Noninterest income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment services and trust activities | Investment services and trust activities | 2,670 | 2,809 | 5,681 | 5,645 | Investment services and trust activities | 3,119 | 2,670 | 6,052 | 5,681 | ||||||||||||||||||||||||||||||||||||||||||
Service charges and fees | Service charges and fees | 1,717 | 1,475 | 3,374 | 2,962 | Service charges and fees | 2,047 | 1,717 | 4,055 | 3,374 | ||||||||||||||||||||||||||||||||||||||||||
Card revenue | Card revenue | 1,878 | 1,913 | 3,528 | 3,449 | Card revenue | 1,847 | 1,878 | 3,595 | 3,528 | ||||||||||||||||||||||||||||||||||||||||||
Loan revenue | Loan revenue | 3,523 | 3,151 | 7,816 | 7,881 | Loan revenue | 909 | 3,523 | 2,329 | 7,816 | ||||||||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | Bank-owned life insurance | 558 | 538 | 1,089 | 1,080 | Bank-owned life insurance | 616 | 558 | 1,218 | 1,089 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities gains, net | 395 | 42 | 435 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities (losses) gains, net | Investment securities (losses) gains, net | (2) | 395 | (13,172) | 435 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 1,606 | 290 | 2,068 | 956 | Other | 210 | 1,606 | 623 | 2,068 | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest income | Total noninterest income | 12,347 | 10,218 | 23,991 | 22,042 | Total noninterest income | 8,746 | 12,347 | 4,700 | 23,991 | ||||||||||||||||||||||||||||||||||||||||||
Noninterest expense | Noninterest expense | Noninterest expense | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | Compensation and employee benefits | 18,955 | 17,404 | 37,619 | 34,321 | Compensation and employee benefits | 20,386 | 18,955 | 39,993 | 37,619 | ||||||||||||||||||||||||||||||||||||||||||
Occupancy expense of premises, net | Occupancy expense of premises, net | 2,253 | 2,198 | 5,032 | 4,516 | Occupancy expense of premises, net | 2,574 | 2,253 | 5,320 | 5,032 | ||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | 2,107 | 1,861 | 4,008 | 3,654 | Equipment | 2,435 | 2,107 | 4,606 | 4,008 | ||||||||||||||||||||||||||||||||||||||||||
Legal and professional | Legal and professional | 2,435 | 1,375 | 4,788 | 2,158 | Legal and professional | 1,682 | 2,435 | 3,418 | 4,788 | ||||||||||||||||||||||||||||||||||||||||||
Data processing | Data processing | 1,237 | 1,347 | 2,468 | 2,599 | Data processing | 1,521 | 1,237 | 2,884 | 2,468 | ||||||||||||||||||||||||||||||||||||||||||
Marketing | Marketing | 1,157 | 873 | 2,186 | 1,879 | Marketing | 1,142 | 1,157 | 2,128 | 2,186 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | Amortization of intangibles | 1,283 | 1,341 | 2,510 | 2,848 | Amortization of intangibles | 1,594 | 1,283 | 3,346 | 2,510 | ||||||||||||||||||||||||||||||||||||||||||
FDIC insurance | FDIC insurance | 420 | 245 | 840 | 757 | FDIC insurance | 862 | 420 | 1,611 | 840 | ||||||||||||||||||||||||||||||||||||||||||
Communications | Communications | 266 | 371 | 538 | 780 | Communications | 260 | 266 | 521 | 538 | ||||||||||||||||||||||||||||||||||||||||||
Foreclosed assets, net | Foreclosed assets, net | 4 | 136 | (108) | 183 | Foreclosed assets, net | (6) | 4 | (34) | (108) | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 1,965 | 1,519 | 3,844 | 2,675 | Other | 2,469 | 1,965 | 4,445 | 3,844 | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest expense | Total noninterest expense | 32,082 | 28,670 | 63,725 | 56,370 | Total noninterest expense | 34,919 | 32,082 | 68,238 | 63,725 | ||||||||||||||||||||||||||||||||||||||||||
Income before income tax expense | Income before income tax expense | 16,708 | 22,197 | 34,045 | 49,672 | Income before income tax expense | 9,192 | 16,708 | 10,970 | 34,045 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 4,087 | 4,926 | 7,529 | 10,753 | Income tax expense | 1,598 | 4,087 | 1,979 | 7,529 | ||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 12,621 | $ | 17,271 | $ | 26,516 | $ | 38,919 | Net income | $ | 7,594 | $ | 12,621 | $ | 8,991 | $ | 26,516 | ||||||||||||||||||||||||||||||||||
Per common share information | Per common share information | Per common share information | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings - basic | Earnings - basic | $ | 0.81 | $ | 1.08 | $ | 1.69 | $ | 2.43 | Earnings - basic | $ | 0.48 | $ | 0.81 | $ | 0.57 | $ | 1.69 | ||||||||||||||||||||||||||||||||||
Earnings - diluted | Earnings - diluted | $ | 0.80 | $ | 1.08 | $ | 1.69 | $ | 2.43 | Earnings - diluted | $ | 0.48 | $ | 0.80 | $ | 0.57 | $ | 1.69 | ||||||||||||||||||||||||||||||||||
Dividends paid | Dividends paid | $ | 0.2375 | $ | 0.2250 | $ | 0.4750 | $ | 0.4500 | Dividends paid | $ | 0.2425 | $ | 0.2375 | $ | 0.4850 | $ | 0.4750 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
(unaudited) (dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net income | $ | 12,621 | $ | 17,271 | $ | 26,516 | $ | 38,919 | ||||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||||
Unrealized (loss) gain from available for sale debt securities: | ||||||||||||||||||||||||||
Unrealized net holding (loss) gain on debt securities available for sale arising during the period | (32,023) | 7,874 | (78,244) | (19,910) | ||||||||||||||||||||||
Reclassification adjustment for gains included in net income | (395) | (42) | (435) | (69) | ||||||||||||||||||||||
Income tax benefit (expense) | 8,461 | (2,044) | 20,535 | 5,215 | ||||||||||||||||||||||
Unrealized net (loss) gain on available for sale debt securities, net of reclassification adjustments | (23,957) | 5,788 | (58,144) | (14,764) | ||||||||||||||||||||||
Reclassification of available for sale debt securities to held to maturity: | ||||||||||||||||||||||||||
Amortization of the net unrealized loss from the reclassification of available for sale debt securities to held to maturity | 1,004 | — | 2,406 | — | ||||||||||||||||||||||
Income tax expense | (262) | — | (628) | — | ||||||||||||||||||||||
Amortization of net unrealized loss from the reclassification of available for sale debt securities to held to maturity, net | 742 | — | 1,778 | — | ||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (23,215) | 5,788 | (56,366) | (14,764) | ||||||||||||||||||||||
Comprehensive (loss) income | $ | (10,594) | $ | 23,059 | $ | (29,850) | $ | 24,155 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
(unaudited) (dollars in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | 7,594 | $ | 12,621 | $ | 8,991 | $ | 26,516 | ||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Unrealized gain (loss) from available for sale debt securities: | ||||||||||||||||||||||||||
Unrealized net loss on debt securities available for sale | (8,795) | (32,023) | (9,080) | (78,244) | ||||||||||||||||||||||
Reclassification adjustment for losses (gains) included in net income | 2 | (395) | 13,172 | (435) | ||||||||||||||||||||||
Income tax (expense) benefit | 2,222 | 8,461 | (1,038) | 20,535 | ||||||||||||||||||||||
Unrealized net gain (loss) on available for sale debt securities, net of reclassification adjustments | (6,571) | (23,957) | 3,054 | (58,144) | ||||||||||||||||||||||
Reclassification of available for sale debt securities to held to maturity: | ||||||||||||||||||||||||||
Amortization of the net unrealized loss from the reclassification of available for sale debt securities to held to maturity | 601 | 1,004 | 1,182 | 2,406 | ||||||||||||||||||||||
Income tax (expense) | (152) | (262) | (299) | (628) | ||||||||||||||||||||||
Amortization of net unrealized loss from the reclassification of available for sale debt securities to held to maturity, net | 449 | 742 | 883 | 1,778 | ||||||||||||||||||||||
Unrealized gain from cash flow hedging instruments: | ||||||||||||||||||||||||||
Unrealized net gains in cash flow hedging instruments | 3,321 | — | 3,459 | — | ||||||||||||||||||||||
Reclassification adjustment for net gain in cash flow hedging instruments included in income | (238) | — | (238) | — | ||||||||||||||||||||||
Income tax (expense) | (780) | — | (815) | — | ||||||||||||||||||||||
Unrealized net gains on cash flow hedge instruments, net of reclassification adjustment | 2,303 | — | 2,406 | — | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (3,819) | (23,215) | 6,343 | (56,366) | ||||||||||||||||||||||
Comprehensive income (loss) | $ | 3,775 | $ | (10,594) | $ | 15,334 | $ | (29,850) |
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) (dollars in thousands, except per share amounts) | (unaudited) (dollars in thousands, except per share amounts) | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | (unaudited) (dollars in thousands, except per share amounts) | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 16,581 | $ | 299,747 | $ | 206,230 | $ | (15,278) | $ | 4,040 | $ | 511,320 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 17,271 | — | — | 17,271 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 5,788 | 5,788 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (21,155 shares, net) | — | (526) | (17) | 538 | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (38,775 shares) | — | — | — | (1,148) | — | (1,148) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 667 | — | — | — | 667 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.2250 per share) | — | — | (3,600) | — | — | (3,600) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 16,581 | $ | 299,888 | $ | 219,884 | $ | (15,888) | $ | 9,828 | $ | 530,293 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | $ | 16,581 | $ | 300,505 | $ | 253,500 | $ | (24,113) | $ | (42,016) | 504,457 | Balance at March 31, 2022 | $ | 16,581 | $ | 300,505 | $ | 253,500 | $ | (24,113) | $ | (42,016) | $ | 504,457 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | 12,621 | — | — | 12,621 | Net income | — | — | 12,621 | — | — | 12,621 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | (23,215) | (23,215) | Other comprehensive loss | — | — | — | — | (23,215) | (23,215) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (10,321 shares, net) | Release/lapse of restriction on RSUs (10,321 shares, net) | — | (283) | (7) | 284 | — | (6) | Release/lapse of restriction on RSUs (10,321 shares, net) | — | (283) | (7) | 284 | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (65,315 shares) | Repurchase of common stock (65,315 shares) | — | — | — | (1,943) | — | (1,943) | Repurchase of common stock (65,315 shares) | — | — | — | (1,943) | — | (1,943) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | 637 | — | — | — | 637 | Share-based compensation | — | 637 | — | — | — | 637 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.2375 per share) | Dividends paid on common stock ($0.2375 per share) | — | — | (3,719) | — | — | (3,719) | Dividends paid on common stock ($0.2375 per share) | — | — | (3,719) | — | — | (3,719) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | $ | 16,581 | $ | 300,859 | $ | 262,395 | $ | (25,772) | $ | (65,231) | 488,832 | Balance at June 30, 2022 | $ | 16,581 | $ | 300,859 | $ | 262,395 | $ | (25,772) | $ | (65,231) | $ | 488,832 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | Balance at March 31, 2023 | $ | 16,581 | $ | 300,966 | $ | 286,767 | $ | (24,779) | $ | (78,885) | $ | 500,650 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | 7,594 | — | — | 7,594 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | (3,819) | (3,819) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (9,798 shares, net) | Release/lapse of restriction on RSUs (9,798 shares, net) | — | (267) | (9) | 271 | — | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | 725 | — | — | — | 725 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.2425 per share) | Dividends paid on common stock ($0.2425 per share) | — | — | (3,804) | — | — | (3,804) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | 16,581 | $ | 301,424 | $ | 290,548 | $ | (24,508) | $ | (82,704) | $ | 501,341 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) (dollars in thousands, except per share amounts) | (unaudited) (dollars in thousands, except per share amounts) | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | (unaudited) (dollars in thousands, except per share amounts) | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 16,581 | $ | 300,137 | $ | 188,191 | $ | (14,251) | $ | 24,592 | 515,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 38,919 | — | — | 38,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (14,764) | (14,764) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (48,051 shares, net) | — | (1,300) | (28) | 1,210 | — | (118) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (101,363 shares) | — | — | — | (2,847) | — | (2,847) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 1,051 | — | — | — | 1,051 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.4500 per share) | — | — | (7,198) | — | — | (7,198) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 16,581 | $ | 299,888 | $ | 219,884 | $ | (15,888) | $ | 9,828 | $ | 530,293 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | $ | 16,581 | $ | 300,940 | $ | 243,365 | $ | (24,546) | $ | (8,865) | 527,475 | Balance at December 31, 2021 | $ | 16,581 | $ | 300,940 | $ | 243,365 | $ | (24,546) | $ | (8,865) | $ | 527,475 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | 26,516 | — | — | 26,516 | Net income | — | — | 26,516 | — | — | 26,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | (56,366) | (56,366) | Other comprehensive loss | — | — | — | — | (56,366) | (56,366) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (40,799 shares, net) | Release/lapse of restriction on RSUs (40,799 shares, net) | — | (1,278) | (38) | 1,073 | — | (243) | Release/lapse of restriction on RSUs (40,799 shares, net) | — | (1,278) | (38) | 1,073 | — | (243) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock (76,815 shares) | Repurchase of common stock (76,815 shares) | — | — | — | (2,299) | — | (2,299) | Repurchase of common stock (76,815 shares) | — | — | — | (2,299) | — | (2,299) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | 1,197 | — | — | — | 1,197 | Share-based compensation | — | 1,197 | — | — | — | 1,197 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.4750 per share) | Dividends paid on common stock ($0.4750 per share) | — | — | (7,448) | — | — | (7,448) | Dividends paid on common stock ($0.4750 per share) | — | — | (7,448) | — | — | (7,448) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | $ | 16,581 | $ | 300,859 | $ | 262,395 | $ | (25,772) | $ | (65,231) | $ | 488,832 | Balance at June 30, 2022 | $ | 16,581 | $ | 300,859 | $ | 262,395 | $ | (25,772) | $ | (65,231) | $ | 488,832 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | $ | 16,581 | $ | 302,085 | $ | 289,289 | $ | (26,115) | $ | (89,047) | $ | 492,793 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | 8,991 | — | — | 8,991 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | 6,343 | 6,343 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (61,146 shares, net) | Release/lapse of restriction on RSUs (61,146 shares, net) | — | (2,034) | (127) | 1,607 | — | (554) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | — | 1,373 | — | — | — | 1,373 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.4850 per share) | Dividends paid on common stock ($0.4850 per share) | — | — | (7,605) | — | — | (7,605) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | 16,581 | $ | 301,424 | $ | 290,548 | $ | (24,508) | $ | (82,704) | $ | 501,341 |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(unaudited) (dollars in thousands) | (unaudited) (dollars in thousands) | 2022 | 2021 | (unaudited) (dollars in thousands) | 2023 | 2022 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||
Operating Activities: | Operating Activities: | |||||||||||||||||||||
Net income | Net income | $ | 26,516 | $ | 38,919 | Net income | $ | 8,991 | $ | 26,516 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Credit loss expense (benefit) | 3,282 | (6,878) | ||||||||||||||||||||
Credit loss expense | Credit loss expense | 2,530 | 3,282 | |||||||||||||||||||
Depreciation, amortization, and accretion | Depreciation, amortization, and accretion | 5,610 | 632 | Depreciation, amortization, and accretion | 6,207 | 5,610 | ||||||||||||||||
Net change in premises and equipment due to writedown or sale | Net change in premises and equipment due to writedown or sale | 430 | 5 | Net change in premises and equipment due to writedown or sale | 61 | 430 | ||||||||||||||||
Share-based compensation | Share-based compensation | 1,197 | 1,051 | Share-based compensation | 1,373 | 1,197 | ||||||||||||||||
Net gain on sale or call of debt securities available for sale | (435) | (69) | ||||||||||||||||||||
Net loss (gain) on sale or call of debt securities available for sale | Net loss (gain) on sale or call of debt securities available for sale | 13,172 | (435) | |||||||||||||||||||
Net change in foreclosed assets due to writedown or sale | Net change in foreclosed assets due to writedown or sale | (112) | 133 | Net change in foreclosed assets due to writedown or sale | (31) | (112) | ||||||||||||||||
Net gain on sale of loans held for sale | Net gain on sale of loans held for sale | (1,312) | (5,402) | Net gain on sale of loans held for sale | (837) | (1,312) | ||||||||||||||||
Origination of loans held for sale | Origination of loans held for sale | (60,234) | (168,027) | Origination of loans held for sale | (26,151) | (60,234) | ||||||||||||||||
Proceeds from sales of loans held for sale | Proceeds from sales of loans held for sale | 69,472 | 227,236 | Proceeds from sales of loans held for sale | 24,779 | 69,472 | ||||||||||||||||
Increase in cash surrender value of bank-owned life insurance | Increase in cash surrender value of bank-owned life insurance | (1,089) | (807) | Increase in cash surrender value of bank-owned life insurance | (1,218) | (1,089) | ||||||||||||||||
Decrease in deferred income taxes, net | Decrease in deferred income taxes, net | 2,702 | 1,554 | Decrease in deferred income taxes, net | 3 | 2,702 | ||||||||||||||||
Bargain purchase gain | Bargain purchase gain | (1,401) | — | Bargain purchase gain | — | (1,401) | ||||||||||||||||
Change in: | Change in: | Change in: | ||||||||||||||||||||
Other assets | Other assets | (17,473) | 3,055 | Other assets | 10,273 | (17,473) | ||||||||||||||||
Other liabilities | Other liabilities | 16,923 | (12,113) | Other liabilities | 1,736 | 16,923 | ||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | $ | 44,076 | $ | 79,289 | Net cash provided by operating activities | $ | 40,888 | $ | 44,076 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||
Investing Activities: | Investing Activities: | |||||||||||||||||||||
Purchases of equity securities | Purchases of equity securities | $ | (1,250) | $ | — | Purchases of equity securities | $ | — | $ | (1,250) | ||||||||||||
Proceeds from sales of debt securities available for sale | Proceeds from sales of debt securities available for sale | 112,253 | 41,411 | Proceeds from sales of debt securities available for sale | 218,667 | 112,253 | ||||||||||||||||
Proceeds from maturities and calls of debt securities available for sale | Proceeds from maturities and calls of debt securities available for sale | 112,180 | 210,574 | Proceeds from maturities and calls of debt securities available for sale | 75,781 | 112,180 | ||||||||||||||||
Purchases of debt securities available for sale | Purchases of debt securities available for sale | (386,278) | (688,292) | Purchases of debt securities available for sale | (54,690) | (386,278) | ||||||||||||||||
Proceeds from maturities and calls of debt securities held to maturity | Proceeds from maturities and calls of debt securities held to maturity | 86,501 | — | Proceeds from maturities and calls of debt securities held to maturity | 30,053 | 86,501 | ||||||||||||||||
Net (increase) decrease in loans held for investment | (81,910) | 158,800 | ||||||||||||||||||||
Net increase in loans held for investment | Net increase in loans held for investment | (177,153) | (81,910) | |||||||||||||||||||
Purchases of premises and equipment | Purchases of premises and equipment | (1,268) | (644) | Purchases of premises and equipment | (1,307) | (1,268) | ||||||||||||||||
Proceeds from sale of foreclosed assets | Proceeds from sale of foreclosed assets | 196 | 1,712 | Proceeds from sale of foreclosed assets | 134 | 196 | ||||||||||||||||
Proceeds from sale of premises and equipment | Proceeds from sale of premises and equipment | 23 | 3 | Proceeds from sale of premises and equipment | 880 | 23 | ||||||||||||||||
Net cash acquired in business acquisition | Net cash acquired in business acquisition | 31,375 | — | Net cash acquired in business acquisition | — | 31,375 | ||||||||||||||||
Net cash used in investing activities | $ | (128,178) | $ | (276,436) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | $ | 92,365 | $ | (128,178) | |||||||||||||||||
Financing Activities: | Financing Activities: | |||||||||||||||||||||
Net (decrease) increase in: | Net (decrease) increase in: | Net (decrease) increase in: | ||||||||||||||||||||
Deposits | Deposits | $ | (40,780) | $ | 245,527 | Deposits | $ | (23,563) | $ | (40,780) | ||||||||||||
Short-term borrowings | Short-term borrowings | 10,985 | (18,528) | Short-term borrowings | (29,819) | 10,985 | ||||||||||||||||
Payments of subordinated debt issuance costs | — | (9) | ||||||||||||||||||||
Redemption of subordinated debentures | — | (10,835) | ||||||||||||||||||||
Payments on finance lease liability | Payments on finance lease liability | (79) | (70) | Payments on finance lease liability | (89) | (79) | ||||||||||||||||
Payments of Federal Home Loan Bank borrowings | Payments of Federal Home Loan Bank borrowings | (21,000) | (28,000) | Payments of Federal Home Loan Bank borrowings | (11,000) | (21,000) | ||||||||||||||||
Proceeds from other long-term debt | Proceeds from other long-term debt | 25,000 | — | Proceeds from other long-term debt | — | 25,000 | ||||||||||||||||
Payments of other long-term debt | Payments of other long-term debt | (2,500) | — | |||||||||||||||||||
Taxes paid relating to the release/lapse of restriction on RSUs | Taxes paid relating to the release/lapse of restriction on RSUs | (243) | (118) | Taxes paid relating to the release/lapse of restriction on RSUs | (554) | (243) | ||||||||||||||||
Dividends paid | Dividends paid | (7,448) | (7,198) | Dividends paid | (7,605) | (7,448) | ||||||||||||||||
Repurchase of common stock | Repurchase of common stock | (2,299) | (2,847) | Repurchase of common stock | — | (2,299) | ||||||||||||||||
Net cash (used in) provided by financing activities | $ | (35,864) | $ | 177,922 | ||||||||||||||||||
Net decrease in cash and cash equivalents | $ | (119,966) | $ | (19,225) | ||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||
Beginning of Period | 203,830 | 82,659 | ||||||||||||||||||||
Ending balance | $ | 83,864 | $ | 63,434 | ||||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | $ | (75,130) | $ | (35,864) | |||||||||||||||||
Net change in cash and cash equivalents | Net change in cash and cash equivalents | $ | 58,123 | $ | (119,966) | |||||||||||||||||
Cash and cash equivalents at beginning of period | Cash and cash equivalents at beginning of period | 86,435 | 203,830 | |||||||||||||||||||
Cash and cash equivalents at end of period | Cash and cash equivalents at end of period | $ | 144,558 | $ | 83,864 |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(unaudited) (dollars in thousands) | (unaudited) (dollars in thousands) | 2022 | 2021 | (unaudited) (dollars in thousands) | 2023 | 2022 | ||||||||||||||||
Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid during the period for interest | Cash paid during the period for interest | $ | 9,509 | $ | 11,643 | Cash paid during the period for interest | $ | 39,016 | $ | 9,509 | ||||||||||||
Cash paid during the period for income taxes | Cash paid during the period for income taxes | 6,169 | 11,185 | Cash paid during the period for income taxes | 1,115 | 6,169 | ||||||||||||||||
Supplemental schedule of non-cash investing and financing activities: | Supplemental schedule of non-cash investing and financing activities: | Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||||||
Transfer of loans to foreclosed assets, net | Transfer of loans to foreclosed assets, net | $ | 11 | $ | 284 | Transfer of loans to foreclosed assets, net | $ | — | $ | 11 | ||||||||||||
Investment securities purchased but not settled | — | 1,500 | ||||||||||||||||||||
Transfer of premises and equipment to assets held for sale | Transfer of premises and equipment to assets held for sale | 628 | — | Transfer of premises and equipment to assets held for sale | — | 628 | ||||||||||||||||
Transfer of debt securities available for sale to debt securities held to maturity | Transfer of debt securities available for sale to debt securities held to maturity | 1,253,179 | — | Transfer of debt securities available for sale to debt securities held to maturity | — | 1,253,179 | ||||||||||||||||
Supplemental schedule of non-cash investing activities from acquisition: | Supplemental schedule of non-cash investing activities from acquisition: | Supplemental schedule of non-cash investing activities from acquisition: | ||||||||||||||||||||
Non-cash assets acquired: | Non-cash assets acquired: | Non-cash assets acquired: | ||||||||||||||||||||
Investment securities | Investment securities | $ | 119,230 | $ | — | Investment securities | $ | — | $ | 119,230 | ||||||||||||
Total loans held for investment, net | Total loans held for investment, net | 281,470 | — | Total loans held for investment, net | — | 281,470 | ||||||||||||||||
Premises and equipment | Premises and equipment | 7,363 | — | Premises and equipment | — | 7,363 | ||||||||||||||||
Core deposit intangible | Core deposit intangible | 16,500 | — | Core deposit intangible | — | 16,500 | ||||||||||||||||
Bank-owned life insurance | Bank-owned life insurance | 7,862 | — | Bank-owned life insurance | — | 7,862 | ||||||||||||||||
Other assets | Other assets | 4,356 | — | Other assets | — | 4,356 | ||||||||||||||||
Total non-cash assets acquired | Total non-cash assets acquired | $ | 436,781 | $ | — | Total non-cash assets acquired | $ | — | $ | 436,781 | ||||||||||||
Liabilities assumed: | Liabilities assumed: | Liabilities assumed: | ||||||||||||||||||||
Deposits | Deposits | $ | 463,638 | $ | — | Deposits | $ | — | $ | 463,638 | ||||||||||||
Short-term borrowings | Short-term borrowings | 1,541 | — | Short-term borrowings | — | 1,541 | ||||||||||||||||
FHLB borrowings | FHLB borrowings | 250 | — | FHLB borrowings | — | 250 | ||||||||||||||||
Other liabilities | Other liabilities | 1,326 | — | Other liabilities | — | 1,326 | ||||||||||||||||
Total liabilities assumed | Total liabilities assumed | $ | 466,755 | $ | — | Total liabilities assumed | $ | — | $ | 466,755 |
(in thousands) | June 9, 2022 | |||||||||||||||||||||||||
Merger consideration | ||||||||||||||||||||||||||
Cash consideration | $ | 46,672 | ||||||||||||||||||||||||
Identifiable net assets acquired, at fair value | ||||||||||||||||||||||||||
Assets acquired | ||||||||||||||||||||||||||
Cash and due from banks | $ | 10,192 | ||||||||||||||||||||||||
Interest earning deposits in banks | 67,855 | |||||||||||||||||||||||||
119,820 | ||||||||||||||||||||||||||
Premises and equipment | 7,363 | |||||||||||||||||||||||||
Core deposit intangible | 16,500 | |||||||||||||||||||||||||
Other assets | 14,140 | |||||||||||||||||||||||||
Total assets acquired | ||||||||||||||||||||||||||
Liabilities assumed | ||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
$ | (463,638) | |||||||||||||||||||||||||
Other liabilities | (3,117) | |||||||||||||||||||||||||
Total liabilities assumed | (466,755) | |||||||||||||||||||||||||
Bargain Purchase Gain | $ |
(in thousands) | June 9, 2022 | |||||||||||||||||||||||||||||||||||||
Par value of PCD loans acquired | $ | 15,396 | ||||||||||||||||||||||||||||||||||||
PCD ACL at acquisition | (3,371) | |||||||||||||||||||||||||||||||||||||
Non-credit discount on PCD loans | ||||||||||||||||||||||||||||||||||||||
Purchase price of PCD loans | $ |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | (in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | (in thousands, except per share amounts) | 2022 | 2022 | |||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | $ | 55,100 | $ | 55,450 | $ | 107,679 | $ | 110,788 | Total revenues | $ | 55,100 | $ | 107,679 | |||||||||||||||||||||||||||||
Net Income | Net Income | $ | 15,208 | $ | 16,716 | $ | 28,967 | $ | 39,239 | Net Income | $ | 15,208 | $ | 28,967 | |||||||||||||||||||||||||||||
EPS - basic | EPS - basic | $ | 0.97 | $ | 1.05 | $ | 1.85 | $ | 2.45 | EPS - basic | $ | 0.97 | $ | 1.85 | |||||||||||||||||||||||||||||
EPS - diluted | EPS - diluted | $ | 0.97 | $ | 1.04 | $ | 1.84 | $ | 2.45 | EPS - diluted | $ | 0.97 | $ | 1.84 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||
Compensation and employee benefits | $ | 150 | $ | — | $ | 150 | $ | — | |||||||||||||||
Occupancy expense of premises, net | 1 | — | 1 | — | |||||||||||||||||||
Equipment | 6 | — | 11 | — | |||||||||||||||||||
Legal and professional | 638 | — | 701 | — | |||||||||||||||||||
Data processing | 38 | — | 76 | — | |||||||||||||||||||
Marketing | 65 | — | 72 | — | |||||||||||||||||||
Communications | 2 | — | 3 | — | |||||||||||||||||||
Other | 1 | — | 15 | — | |||||||||||||||||||
Total IOFB acquisition-related expenses | $ | 901 | $ | — | $ | 1,029 | $ | — |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Noninterest Expense | |||||||||||||||||||||||
Compensation and employee benefits | $ | — | $ | 150 | $ | 70 | $ | 150 | |||||||||||||||
Occupancy expense of premises, net | — | 1 | — | 1 | |||||||||||||||||||
Equipment | — | 6 | — | 11 | |||||||||||||||||||
Legal and professional | — | 638 | — | 701 | |||||||||||||||||||
Data processing | — | 38 | 65 | 76 | |||||||||||||||||||
Marketing | — | 65 | — | 72 | |||||||||||||||||||
Communications | — | 2 | — | 3 | |||||||||||||||||||
Other | — | 1 | 1 | 15 | |||||||||||||||||||
Total acquisition-related expenses | $ | — | $ | 901 | $ | 136 | $ | 1,029 |
As of June 30, 2022 | As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Loss related to Debt Securities | Fair Value | (in thousands) | Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Loss related to Debt Securities | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale | Available for Sale | Available for Sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,523 | $ | 381 | $ | — | $ | — | $ | 7,904 | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | State and political subdivisions | 327,797 | 572 | 12,458 | — | 315,911 | State and political subdivisions | $ | 186,484 | $ | 3 | $ | 12,771 | $ | — | $ | 173,716 | |||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 6,589 | 21 | 71 | — | 6,539 | Mortgage-backed securities | 5,691 | 2 | 236 | — | 5,457 | ||||||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 54,161 | — | 665 | — | 53,496 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 182,941 | — | 17,566 | — | 165,375 | Collateralized mortgage obligations | 163,918 | — | 24,126 | — | 139,792 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | 784,869 | 1,241 | 47,050 | — | 739,060 | Corporate debt securities | 597,367 | 122 | 66,430 | — | 531,059 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available for sale debt securities | Total available for sale debt securities | $ | 1,309,719 | $ | 2,215 | $ | 77,145 | $ | — | $ | 1,234,789 | Total available for sale debt securities | $ | 1,007,621 | $ | 127 | $ | 104,228 | $ | — | $ | 903,520 | ||||||||||||||||||||||||||||||||||||
Held to Maturity | Held to Maturity | Held to Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | State and political subdivisions | $ | 540,708 | $ | — | $ | 78,523 | $ | — | $ | 462,185 | State and political subdivisions | $ | 533,343 | $ | — | $ | 79,313 | $ | — | $ | 454,030 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 84,912 | — | 9,790 | — | 75,122 | Mortgage-backed securities | 77,921 | — | 12,777 | — | 65,144 | ||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 542,422 | — | 69,078 | — | 473,344 | Collateralized mortgage obligations | 488,305 | — | 107,176 | — | 381,129 | ||||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity debt securities | Total held to maturity debt securities | $ | 1,168,042 | $ | — | $ | 157,391 | $ | — | $ | 1,010,651 | Total held to maturity debt securities | $ | 1,099,569 | $ | — | $ | 199,266 | $ | — | $ | 900,303 | ||||||||||||||||||||||||||||||||||||
(1) Amortized cost for the held to maturity securities includes $0.3 million of unamortized gain in state and political subdivisions, $41 thousand of unamortized losses in mortgage-backed securities and $13.4 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $6 thousand of unamortized gains in mortgage-backed securities and $10.8 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022. | (1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $6 thousand of unamortized gains in mortgage-backed securities and $10.8 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022. |
As of December 31, 2021 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Loss related to Debt Securities | Fair Value | (in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Loss related to Debt Securities | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale | Available for Sale | Available for Sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | U.S. Government agencies and corporations | $ | 265 | $ | 1 | $ | — | $ | — | $ | 266 | U.S. Government agencies and corporations | $ | 7,598 | $ | — | $ | 253 | $ | — | $ | 7,345 | ||||||||||||||||||||||||||||||||||||
State and political subdivisions | State and political subdivisions | 760,894 | 10,484 | 5,636 | — | 765,742 | State and political subdivisions | 303,573 | 27 | 18,244 | — | 285,356 | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 100,325 | 932 | 631 | — | 100,626 | Mortgage-backed securities | 6,165 | 11 | 232 | — | 5,944 | ||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 785,945 | 1,274 | 18,320 | — | 768,899 | Collateralized mortgage obligations | 172,568 | — | 25,375 | — | 147,193 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | 652,677 | 6,305 | 6,405 | — | 652,577 | Corporate debt securities | 771,836 | 125 | 64,252 | — | 707,709 | ||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities | $ | 2,300,106 | $ | 18,996 | $ | 30,992 | $ | — | $ | 2,288,110 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total available for sale debt securities | Total available for sale debt securities | $ | 1,261,740 | $ | 163 | $ | 108,356 | $ | — | $ | 1,153,547 | |||||||||||||||||||||||||||||||||||||||||||||||
Held to Maturity | Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | State and political subdivisions | $ | 538,746 | $ | — | $ | 88,349 | $ | — | $ | 450,397 | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 81,032 | — | 12,851 | — | 68,181 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 509,643 | — | 103,327 | — | 406,316 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity debt securities | Total held to maturity debt securities | $ | 1,129,421 | $ | — | $ | 204,527 | $ | — | $ | 924,894 |
As of June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||
Available for Sale | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 312 | $ | 247,111 | $ | 11,620 | $ | 5,075 | $ | 838 | $ | 252,186 | $ | 12,458 | ||||||||||||||||||||||||||||
Mortgage-backed securities | 15 | 5,473 | 71 | 47 | — | 5,520 | 71 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 149,368 | 14,071 | 16,007 | 3,495 | 165,375 | 17,566 | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 141 | 529,917 | 36,690 | 82,292 | 10,360 | 612,209 | 47,050 | ||||||||||||||||||||||||||||||||||
Total | 488 | $ | 931,869 | $ | 62,452 | $ | 103,421 | $ | 14,693 | $ | 1,035,290 | $ | 77,145 |
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||
Available for Sale | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 189 | $ | 41,170 | $ | 2,215 | $ | 119,012 | $ | 10,556 | $ | 160,182 | $ | 12,771 | ||||||||||||||||||||||||||||
Mortgage-backed securities | 26 | 598 | 12 | 4,680 | 224 | 5,278 | 236 | ||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 6 | 53,496 | 665 | — | — | 53,496 | 665 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 6,870 | 30 | 132,922 | 24,096 | 139,792 | 24,126 | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 143 | 54,008 | 3,112 | 453,623 | 63,318 | 507,631 | 66,430 | ||||||||||||||||||||||||||||||||||
Total | 384 | $ | 156,142 | $ | 6,034 | $ | 710,237 | $ | 98,194 | $ | 866,379 | $ | 104,228 |
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | Number of Securities | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 136 | $ | 311,960 | $ | 5,216 | $ | 15,343 | $ | 420 | $ | 327,303 | $ | 5,636 | ||||||||||||||||||||||||||||
Mortgage-backed securities | 6 | 43,319 | 631 | 80 | — | 43,399 | 631 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 44 | 605,729 | 15,693 | 61,984 | 2,627 | 667,713 | 18,320 | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 52 | 303,750 | 4,567 | 27,071 | 1,838 | 330,821 | 6,405 | ||||||||||||||||||||||||||||||||||
Total | 238 | $ | 1,264,758 | $ | 26,107 | $ | 104,478 | $ | 4,885 | $ | 1,369,236 | $ | 30,992 |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | Number of Securities | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | 8 | $ | 7,345 | $ | 253 | $ | — | $ | — | $ | 7,345 | $ | 253 | ||||||||||||||||||||||||||||
State and political subdivisions | 380 | 248,339 | 14,553 | 20,631 | 3,691 | 268,970 | 18,244 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 27 | 5,323 | 231 | 45 | 1 | 5,368 | 232 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 75,041 | 7,121 | 72,152 | 18,254 | 147,193 | 25,375 | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 159 | 369,441 | 21,679 | 288,329 | 42,573 | 657,770 | 64,252 | ||||||||||||||||||||||||||||||||||
Total | 594 | $ | 705,489 | $ | 43,837 | $ | 381,157 | $ | 64,519 | $ | 1,086,646 | $ | 108,356 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | (in thousands) | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||
Proceeds from sales of debt securities available for sale | Proceeds from sales of debt securities available for sale | $ | 112,253 | $ | 41,411 | $ | 112,253 | $ | 41,411 | Proceeds from sales of debt securities available for sale | $ | — | $ | 112,253 | $ | 218,667 | $ | 112,253 | ||||||||||||||||||||||||||||
Gross realized gains from sales of debt securities available for sale | Gross realized gains from sales of debt securities available for sale | — | 824 | — | 824 | Gross realized gains from sales of debt securities available for sale | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Gross realized losses from sales of debt securities available for sale | Gross realized losses from sales of debt securities available for sale | — | (791) | — | (791) | Gross realized losses from sales of debt securities available for sale | — | — | (13,170) | — | ||||||||||||||||||||||||||||||||||||
Net realized gain from sales of debt securities available for sale(1) | Net realized gain from sales of debt securities available for sale(1) | $ | — | $ | 33 | $ | — | $ | 33 | Net realized gain from sales of debt securities available for sale(1) | $ | — | $ | — | $ | (13,170) | $ | — | ||||||||||||||||||||||||||||
(1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized gain from the call or maturity of debt securities of $395 thousand and $435 thousand for the three and six months ended June 30, 2022, respectively, and $9 thousand and $36 thousand for the three and six months ended June 30, 2021, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||
(1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized loss from the call or maturity of debt securities of $2 thousand and $2 thousand for the three and six months ended June 30, 2023 and $395 thousand and $435 thousand for the three and six months ended June 30, 2022. | (1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized loss from the call or maturity of debt securities of $2 thousand and $2 thousand for the three and six months ended June 30, 2023 and $395 thousand and $435 thousand for the three and six months ended June 30, 2022. |
Available for Sale | Held to Maturity | Available for Sale | Held to Maturity | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | (in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||
Due in one year or less | Due in one year or less | $ | 55,918 | $ | 56,269 | $ | 5,449 | $ | 5,363 | Due in one year or less | $ | 35,128 | $ | 34,740 | $ | 175 | $ | 171 | ||||||||||||||||||||||||||||
Due after one year through five years | Due after one year through five years | 699,168 | 666,047 | 56,900 | 52,834 | Due after one year through five years | 545,769 | 497,756 | 125,731 | 112,566 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | Due after five years through ten years | 315,283 | 294,404 | 233,306 | 204,790 | Due after five years through ten years | 173,529 | 147,341 | 221,383 | 188,004 | ||||||||||||||||||||||||||||||||||||
Due after ten years | Due after ten years | 49,820 | 46,155 | 245,053 | 199,198 | Due after ten years | 29,425 | 24,938 | 186,054 | 153,289 | ||||||||||||||||||||||||||||||||||||
$ | 1,120,189 | $ | 1,062,875 | $ | 540,708 | $ | 462,185 | $ | 783,851 | $ | 704,775 | $ | 533,343 | $ | 454,030 | |||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 6,589 | 6,539 | 84,912 | 75,122 | Mortgage-backed securities | 5,691 | 5,457 | 77,921 | 65,144 | ||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 54,161 | 53,496 | — | — | |||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 182,941 | 165,375 | 542,422 | 473,344 | Collateralized mortgage obligations | 163,918 | 139,792 | 488,305 | 381,129 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,309,719 | $ | 1,234,789 | $ | 1,168,042 | $ | 1,010,651 | Total | $ | 1,007,621 | $ | 903,520 | $ | 1,099,569 | $ | 900,303 |
As of | As of | |||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||
Agricultural | Agricultural | $ | 110,263 | $ | 103,417 | Agricultural | $ | 106,148 | $ | 115,320 | ||||||||||||
Commercial and industrial | Commercial and industrial | 986,137 | 902,314 | Commercial and industrial | 1,089,269 | 1,055,162 | ||||||||||||||||
Commercial real estate: | Commercial real estate: | Commercial real estate: | ||||||||||||||||||||
Construction & development | Construction & development | 224,470 | 172,160 | Construction & development | 313,836 | 270,991 | ||||||||||||||||
Farmland | Farmland | 181,820 | 144,673 | Farmland | 183,378 | 183,913 | ||||||||||||||||
Multifamily | Multifamily | 239,676 | 244,503 | Multifamily | 305,519 | 252,129 | ||||||||||||||||
Commercial real estate-other | Commercial real estate-other | 1,213,974 | 1,143,205 | Commercial real estate-other | 1,331,886 | 1,272,985 | ||||||||||||||||
Total commercial real estate | Total commercial real estate | 1,859,940 | 1,704,541 | Total commercial real estate | 2,134,619 | 1,980,018 | ||||||||||||||||
Residential real estate: | Residential real estate: | Residential real estate: | ||||||||||||||||||||
One- to four- family first liens | One- to four- family first liens | 430,157 | 333,308 | One- to four- family first liens | 448,096 | 451,210 | ||||||||||||||||
One- to four- family junior liens | One- to four- family junior liens | 148,647 | 133,014 | One- to four- family junior liens | 168,755 | 163,218 | ||||||||||||||||
Total residential real estate | Total residential real estate | 578,804 | 466,322 | Total residential real estate | 616,851 | 614,428 | ||||||||||||||||
Consumer | Consumer | 76,008 | 68,418 | Consumer | 71,762 | 75,596 | ||||||||||||||||
Loans held for investment, net of unearned income | Loans held for investment, net of unearned income | 3,611,152 | 3,245,012 | Loans held for investment, net of unearned income | 4,018,649 | 3,840,524 | ||||||||||||||||
Allowance for credit losses | Allowance for credit losses | (52,350) | (48,700) | Allowance for credit losses | (50,400) | (49,200) | ||||||||||||||||
Total loans held for investment, net | Total loans held for investment, net | $ | 3,558,802 | $ | 3,196,312 | Total loans held for investment, net | $ | 3,968,249 | $ | 3,791,324 |
Age Analysis of Past-Due Financial Assets | 90 Days or More Past Due And Accruing | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 109,248 | $ | 330 | $ | 2 | $ | 683 | $ | 110,263 | $ | 11 | |||||||||||||||||||||||
Commercial and industrial | 979,576 | 831 | 2,072 | 3,658 | 986,137 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | 223,275 | 1,195 | — | — | 224,470 | — | |||||||||||||||||||||||||||||
Farmland | 178,810 | 1,837 | — | 1,173 | 181,820 | — | |||||||||||||||||||||||||||||
Multifamily | 238,210 | 90 | — | 1,376 | 239,676 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,202,634 | 1,548 | — | 9,792 | 1,213,974 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 1,842,929 | 4,670 | — | 12,341 | 1,859,940 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 425,958 | 1,381 | 811 | 2,007 | 430,157 | 1,348 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 147,529 | 297 | 14 | 807 | 148,647 | — | |||||||||||||||||||||||||||||
Total residential real estate | 573,487 | 1,678 | 825 | 2,814 | 578,804 | 1,348 | |||||||||||||||||||||||||||||
Consumer | 75,784 | 99 | 95 | 30 | 76,008 | — | |||||||||||||||||||||||||||||
Total | $ | 3,581,024 | $ | 7,608 | $ | 2,994 | $ | 19,526 | $ | 3,611,152 | $ | 1,359 | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 102,352 | $ | 244 | $ | — | $ | 821 | $ | 103,417 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 899,423 | 529 | 134 | 2,228 | 902,314 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | 171,169 | 396 | — | 595 | 172,160 | — | |||||||||||||||||||||||||||||
Farmland | 141,814 | 116 | — | 2,743 | 144,673 | — | |||||||||||||||||||||||||||||
Multifamily | 243,117 | — | 1,386 | — | 244,503 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,129,073 | 8,417 | 306 | 5,409 | 1,143,205 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 1,685,173 | 8,929 | 1,692 | 8,747 | 1,704,541 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 330,992 | 1,057 | 1,057 | 202 | 333,308 | — | |||||||||||||||||||||||||||||
One- to four- family junior liens | 132,392 | 261 | 135 | 226 | 133,014 | — | |||||||||||||||||||||||||||||
Total residential real estate | 463,384 | 1,318 | 1,192 | 428 | 466,322 | — | |||||||||||||||||||||||||||||
Consumer | 68,326 | 66 | 14 | 12 | 68,418 | — | |||||||||||||||||||||||||||||
Total | $ | 3,218,658 | $ | 11,086 | $ | 3,032 | $ | 12,236 | $ | 3,245,012 | $ | — |
Age Analysis of Past-Due Financial Assets | 90 Days or More Past Due And Accruing | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 105,728 | $ | 128 | $ | 51 | $ | 241 | $ | 106,148 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 1,086,925 | 541 | 784 | 1,019 | 1,089,269 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | 313,747 | 89 | — | — | 313,836 | — | |||||||||||||||||||||||||||||
Farmland | 182,132 | — | — | 1,246 | 183,378 | — | |||||||||||||||||||||||||||||
Multifamily | 305,519 | — | — | — | 305,519 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,327,112 | 60 | 46 | 4,668 | 1,331,886 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 2,128,510 | 149 | 46 | 5,914 | 2,134,619 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 442,404 | 4,454 | 632 | 606 | 448,096 | 252 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 167,712 | 110 | 64 | 869 | 168,755 | — | |||||||||||||||||||||||||||||
Total residential real estate | 610,116 | 4,564 | 696 | 1,475 | 616,851 | 252 | |||||||||||||||||||||||||||||
Consumer | 71,602 | 137 | 21 | 2 | 71,762 | — | |||||||||||||||||||||||||||||
Total | $ | 4,002,881 | $ | 5,519 | $ | 1,598 | $ | 8,651 | $ | 4,018,649 | $ | 252 |
Age Analysis of Past-Due Financial Assets | 90 Days or More Past Due And Accruing | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 114,922 | $ | 100 | $ | — | $ | 298 | $ | 115,320 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 1,052,406 | 922 | 111 | 1,723 | 1,055,162 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | 270,905 | 86 | — | — | 270,991 | — | |||||||||||||||||||||||||||||
Farmland | 182,115 | 729 | — | 1,069 | 183,913 | — | |||||||||||||||||||||||||||||
Multifamily | 252,129 | — | — | — | 252,129 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,266,874 | 5,574 | 45 | 492 | 1,272,985 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 1,972,023 | 6,389 | 45 | 1,561 | 1,980,018 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 446,066 | 3,177 | 954 | 1,013 | 451,210 | 565 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 161,989 | 301 | 78 | 850 | 163,218 | — | |||||||||||||||||||||||||||||
Total residential real estate | 608,055 | 3,478 | 1,032 | 1,863 | 614,428 | 565 | |||||||||||||||||||||||||||||
Consumer | 75,443 | 110 | 17 | 26 | 75,596 | — | |||||||||||||||||||||||||||||
Total | $ | 3,822,849 | $ | 10,999 | $ | 1,205 | $ | 5,471 | $ | 3,840,524 | $ | 565 |
Nonaccrual | Nonaccrual with no Allowance for Credit Losses | 90 Days or More Past Due And Accruing | Nonaccrual | Nonaccrual with no Allowance for Credit Losses | 90 Days or More Past Due And Accruing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | (in thousands) | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | Agricultural | $ | 1,083 | $ | 2,090 | $ | 794 | $ | 1,341 | $ | 11 | $ | — | Agricultural | $ | 261 | $ | 377 | $ | 224 | $ | 281 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | Commercial and industrial | 5,910 | 3,803 | 408 | 1,341 | — | — | Commercial and industrial | 3,518 | 2,728 | 756 | 1,049 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | Commercial real estate: | Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and development | Construction and development | — | 595 | — | 595 | — | — | Construction and development | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | Farmland | 3,754 | 5,499 | 3,439 | 4,156 | — | — | Farmland | 1,773 | 2,278 | 1,619 | 1,997 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | Multifamily | 2,325 | 987 | 1,684 | 323 | — | — | Multifamily | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate-other | Commercial real estate-other | 10,267 | 16,544 | 7,214 | 1,063 | — | — | Commercial real estate-other | 5,324 | 6,397 | 4,175 | 5,647 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | Total commercial real estate | 16,346 | 23,625 | 12,337 | 6,137 | — | — | Total commercial real estate | 7,097 | 8,675 | 5,794 | 7,644 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate: | Residential real estate: | Residential real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four- family first liens | One- to four- family first liens | 1,487 | 1,275 | 77 | 345 | 1,348 | — | One- to four- family first liens | 2,093 | 2,275 | 600 | 928 | 252 | 565 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four- family junior liens | One- to four- family junior liens | 1,102 | 713 | — | — | — | — | One- to four- family junior liens | 1,212 | 1,165 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | Total residential real estate | 2,589 | 1,988 | 77 | 345 | 1,348 | — | Total residential real estate | 3,305 | 3,440 | 600 | 928 | 252 | 565 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | 50 | 34 | — | — | — | — | Consumer | 15 | 36 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 25,978 | $ | 31,540 | $ | 13,616 | $ | 9,164 | $ | 1,359 | $ | — | Total | $ | 14,196 | $ | 15,256 | $ | 7,374 | $ | 9,902 | $ | 252 | $ | 565 |
Term Loans by Origination Year | Revolving Loans | Term Loans by Origination Year | Revolving Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 (in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 (in thousands) | June 30, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | Agricultural | Agricultural | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Pass | $ | 21,529 | $ | 17,771 | $ | 6,849 | $ | 3,638 | $ | 1,150 | $ | 1,109 | $ | 47,682 | $ | 99,728 | Pass | $ | 9,469 | $ | 14,112 | $ | 10,475 | $ | 3,381 | $ | 1,456 | $ | 1,323 | $ | 57,602 | $ | 97,818 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | Special mention / watch | 2,164 | 1,069 | 204 | 284 | — | 617 | 1,744 | 6,082 | Special mention / watch | 150 | 371 | 829 | 198 | 7 | 523 | 3,310 | 5,388 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | Substandard | 1,848 | 652 | 703 | 5 | 300 | 303 | 642 | 4,453 | Substandard | 408 | 155 | 189 | 245 | 2 | 242 | 1,701 | 2,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | Doubtful | — | — | — | — | — | — | — | — | Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 25,541 | $ | 19,492 | $ | 7,756 | $ | 3,927 | $ | 1,450 | $ | 2,029 | $ | 50,068 | $ | 110,263 | Total | $ | 10,027 | $ | 14,638 | $ | 11,493 | $ | 3,824 | $ | 1,465 | $ | 2,088 | $ | 62,613 | $ | 106,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | Commercial and industrial | Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Pass | $ | 144,928 | $ | 248,426 | $ | 169,374 | $ | 57,301 | $ | 34,176 | $ | 126,043 | $ | 165,361 | $ | 945,609 | Pass | $ | 80,120 | $ | 249,746 | $ | 218,209 | $ | 134,623 | $ | 29,504 | $ | 122,945 | $ | 178,405 | $ | 1,013,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | Special mention / watch | 1,606 | 771 | 1,867 | 387 | 40 | 18,043 | 2,424 | 25,138 | Special mention / watch | 1,328 | 524 | 791 | 5,079 | 8,213 | 11,462 | 12,800 | 40,197 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | Substandard | 153 | 111 | 2,483 | 1,093 | 1,050 | 3,753 | 6,747 | 15,390 | Substandard | 1,026 | 3,298 | 2,787 | 1,439 | 751 | 19,435 | 6,784 | 35,520 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | Doubtful | — | — | — | — | — | — | — | — | Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 146,687 | $ | 249,308 | $ | 173,724 | $ | 58,781 | $ | 35,266 | $ | 147,839 | $ | 174,532 | $ | 986,137 | Total | $ | 82,474 | $ | 253,568 | $ | 221,787 | $ | 141,141 | $ | 38,468 | $ | 153,842 | $ | 197,989 | $ | 1,089,269 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | CRE - Construction and development | CRE - Construction and development | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Pass | $ | 56,549 | $ | 112,213 | $ | 36,246 | $ | 2,548 | $ | 1,530 | $ | 1,915 | $ | 12,110 | $ | 223,111 | Pass | $ | 38,019 | $ | 181,458 | $ | 72,065 | $ | 3,745 | $ | 955 | $ | 1,252 | $ | 15,362 | $ | 312,856 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | Special mention / watch | — | 510 | — | 125 | — | — | — | 635 | Special mention / watch | — | — | 483 | — | — | — | 235 | 718 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | Substandard | 297 | — | — | — | — | 427 | — | 724 | Substandard | — | 259 | — | — | — | 3 | — | 262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | Doubtful | — | — | — | — | — | — | — | — | Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 56,846 | $ | 112,723 | $ | 36,246 | $ | 2,673 | $ | 1,530 | $ | 2,342 | $ | 12,110 | $ | 224,470 | Total | $ | 38,019 | $ | 181,717 | $ | 72,548 | $ | 3,745 | $ | 955 | $ | 1,255 | $ | 15,597 | $ | 313,836 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Farmland | CRE - Farmland | CRE - Farmland | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Pass | $ | 37,340 | $ | 56,167 | $ | 32,008 | $ | 12,168 | $ | 8,919 | $ | 13,337 | $ | 1,950 | $ | 161,889 | Pass | $ | 12,972 | $ | 51,793 | $ | 48,766 | $ | 21,469 | $ | 6,756 | $ | 17,517 | $ | 1,742 | $ | 161,015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | Special mention / watch | 1,937 | 3,122 | 3,222 | 1,248 | 619 | 266 | — | 10,414 | Special mention / watch | 1,241 | 2,772 | 2,454 | 6,152 | — | 999 | 622 | 14,240 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | Substandard | — | 1,996 | 2,577 | 1,290 | 1,585 | 2,069 | — | 9,517 | Substandard | 1,442 | 118 | 1,663 | 1,206 | 1,050 | 2,644 | — | 8,123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | Doubtful | — | — | — | — | — | — | — | — | Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 39,277 | $ | 61,285 | $ | 37,807 | $ | 14,706 | $ | 11,123 | $ | 15,672 | $ | 1,950 | $ | 181,820 | Total | $ | 15,655 | $ | 54,683 | $ | 52,883 | $ | 28,827 | $ | 7,806 | $ | 21,160 | $ | 2,364 | $ | 183,378 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | CRE - Multifamily | CRE - Multifamily | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 25,914 | $ | 78,036 | $ | 90,365 | $ | 17,818 | $ | 2,646 | $ | 6,431 | $ | 63 | $ | 221,273 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | 12 | — | — | 208 | 5,988 | 1,734 | — | 7,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 308 | 8,440 | 1,713 | — | — | — | — | 10,461 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 26,234 | $ | 86,476 | $ | 92,078 | $ | 18,026 | $ | 8,634 | $ | 8,165 | $ | 63 | $ | 239,676 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 185,950 | $ | 323,293 | $ | 323,255 | $ | 89,412 | $ | 34,667 | $ | 88,194 | $ | 55,902 | $ | 1,100,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | 6,717 | 1,924 | 24,589 | 4,557 | 10,356 | 11,700 | 1,839 | 61,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 1,507 | 1,633 | 23,739 | 15,108 | 1,888 | 7,744 | — | 51,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 194,174 | $ | 326,850 | $ | 371,583 | $ | 109,077 | $ | 46,911 | $ | 107,638 | $ | 57,741 | $ | 1,213,974 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 86,699 | $ | 114,509 | $ | 71,319 | $ | 30,276 | $ | 25,881 | $ | 87,378 | $ | 10,751 | $ | 426,813 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 79 | 35 | 42 | 325 | 2,863 | — | 3,344 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 86,699 | $ | 114,588 | $ | 71,354 | $ | 30,318 | $ | 26,206 | $ | 90,241 | $ | 10,751 | $ | 430,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 23,071 | $ | 26,025 | $ | 10,183 | $ | 3,410 | $ | 4,292 | $ | 7,286 | $ | 73,222 | $ | 147,489 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | — | — | — | 205 | 757 | 91 | 105 | 1,158 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 23,071 | $ | 26,025 | $ | 10,183 | $ | 3,615 | $ | 5,049 | $ | 7,377 | $ | 73,327 | $ | 148,647 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 18,785 | $ | 26,537 | $ | 10,974 | $ | 4,888 | $ | 2,790 | $ | 6,793 | $ | 5,156 | $ | 75,923 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | — | — | 37 | 28 | 10 | 10 | — | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 18,785 | $ | 26,537 | $ | 11,011 | $ | 4,916 | $ | 2,800 | $ | 6,803 | $ | 5,156 | $ | 76,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 472,210 | $ | 835,906 | $ | 658,097 | $ | 182,885 | $ | 83,088 | $ | 237,029 | $ | 283,068 | $ | 2,752,283 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention / watch | 12,436 | 7,396 | 29,882 | 6,809 | 17,003 | 32,360 | 6,007 | 111,893 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | 4,113 | 12,832 | 31,215 | 17,496 | 4,823 | 14,296 | 7,389 | 92,164 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | 128,555 | 167,071 | 92,476 | 38,574 | 32,963 | 101,457 | 89,129 | 650,225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 79 | 72 | 275 | 1,092 | 2,964 | 105 | 4,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 617,314 | $ | 1,023,284 | $ | 811,742 | $ | 246,039 | $ | 138,969 | $ | 388,106 | $ | 385,698 | $ | 3,611,152 |
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 22,980 | $ | 42,423 | $ | 95,670 | $ | 83,971 | $ | 16,846 | $ | 7,385 | $ | 917 | $ | 270,192 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | — | 790 | 280 | 19,226 | — | 7,051 | — | 27,347 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | — | 7,649 | 331 | — | — | — | 7,980 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 22,980 | $ | 43,213 | $ | 103,599 | $ | 103,528 | $ | 16,846 | $ | 14,436 | $ | 917 | $ | 305,519 | |||||||||||||||||||||||||||||||||||||
CRE - Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 119,220 | $ | 327,442 | $ | 284,511 | $ | 269,631 | $ | 81,545 | $ | 102,233 | $ | 52,478 | $ | 1,237,060 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 1,337 | 1,353 | 20,063 | 7,477 | 4,294 | 3,346 | 3,899 | 41,769 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | 618 | 1,330 | 20,666 | 12,265 | 18,178 | — | 53,057 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 120,557 | $ | 329,413 | $ | 305,904 | $ | 297,774 | $ | 98,104 | $ | 123,757 | $ | 56,377 | $ | 1,331,886 | |||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass / Performing | $ | 28,188 | $ | 131,027 | $ | 98,090 | $ | 57,383 | $ | 21,273 | $ | 91,149 | $ | 10,416 | $ | 437,526 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 492 | 727 | 74 | 646 | 1,874 | 432 | — | 4,245 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard / Nonperforming | 1,179 | 309 | 522 | 168 | 168 | 3,979 | — | 6,325 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 29,859 | $ | 132,063 | $ | 98,686 | $ | 58,197 | $ | 23,315 | $ | 95,560 | $ | 10,416 | $ | 448,096 | |||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 14,036 | $ | 32,953 | $ | 20,771 | $ | 8,074 | $ | 2,580 | $ | 8,496 | $ | 80,633 | $ | 167,543 | |||||||||||||||||||||||||||||||||||||
Nonperforming | — | 19 | 22 | 27 | 206 | 923 | 15 | 1,212 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,036 | $ | 32,972 | $ | 20,793 | $ | 8,101 | $ | 2,786 | $ | 9,419 | $ | 80,648 | $ | 168,755 | |||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 14,884 | $ | 23,530 | $ | 13,538 | $ | 5,999 | $ | 2,313 | $ | 7,186 | $ | 4,297 | $ | 71,747 | |||||||||||||||||||||||||||||||||||||
Nonperforming | — | — | — | 6 | 5 | 4 | — | 15 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 14,884 | $ | 23,530 | $ | 13,538 | $ | 6,005 | $ | 2,318 | $ | 7,190 | $ | 4,297 | $ | 71,762 | |||||||||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 310,968 | $ | 998,001 | $ | 827,786 | $ | 574,203 | $ | 158,335 | $ | 343,804 | $ | 316,922 | $ | 3,530,019 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 4,548 | 6,537 | 24,974 | 38,778 | 14,388 | 23,813 | 20,866 | 133,904 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 4,055 | 4,757 | 14,140 | 24,055 | 14,236 | 44,481 | 8,485 | 114,209 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Performing | 28,920 | 56,483 | 34,309 | 14,073 | 4,893 | 15,682 | 84,930 | 239,290 | |||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 19 | 22 | 33 | 211 | 927 | 15 | 1,227 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 348,491 | $ | 1,065,797 | $ | 901,231 | $ | 651,142 | $ | 192,063 | $ | 428,707 | $ | 431,218 | $ | 4,018,649 | |||||||||||||||||||||||||||||||||||||
Year-to-date Current Period Gross Write-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | 80 | 29 | 105 | 250 | 45 | — | 509 | |||||||||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
CRE - Farmland | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
CRE - Other | — | — | — | — | — | 830 | — | 830 | |||||||||||||||||||||||||||||||||||||||||||||
RRE - One-to-four-family first liens | — | — | — | — | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||||||||||||||
RRE - One-to-four-family junior liens | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Consumer | — | 249 | 9 | — | 11 | 4 | — | 273 | |||||||||||||||||||||||||||||||||||||||||||||
Total Current Period Gross Write-offs | $ | — | $ | 329 | $ | 39 | $ | 105 | $ | 261 | $ | 912 | $ | — | $ | 1,646 | |||||||||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 (in thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 20,145 | $ | 8,604 | $ | 4,367 | $ | 1,260 | $ | 885 | $ | 947 | $ | 58,119 | $ | 94,327 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 1,255 | 148 | 245 | — | 17 | 993 | 1,685 | 4,343 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 649 | 827 | 126 | 221 | 4 | 278 | 2,642 | 4,747 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 22,049 | $ | 9,579 | $ | 4,738 | $ | 1,481 | $ | 906 | $ | 2,218 | $ | 62,446 | $ | 103,417 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 297,285 | $ | 199,324 | $ | 56,258 | $ | 35,522 | $ | 60,294 | $ | 75,342 | $ | 132,323 | $ | 856,348 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 4,268 | 2,342 | 781 | 470 | 4,304 | 14,274 | 6,938 | 33,377 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 8 | 1,772 | 1,255 | 772 | 37 | 2,922 | 5,823 | 12,589 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 301,561 | $ | 203,438 | $ | 58,294 | $ | 36,764 | $ | 64,635 | $ | 92,538 | $ | 145,084 | $ | 902,314 | |||||||||||||||||||||||||||||||||||||
CRE - Construction and development | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 90,662 | $ | 37,098 | $ | 4,942 | $ | 1,611 | $ | 1,543 | $ | 578 | $ | 33,197 | $ | 169,631 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 874 | — | 169 | — | — | — | — | 1,043 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | 879 | 596 | — | — | 11 | — | 1,486 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 91,536 | $ | 37,977 | $ | 5,707 | $ | 1,611 | $ | 1,543 | $ | 589 | $ | 33,197 | $ | 172,160 | |||||||||||||||||||||||||||||||||||||
CRE - Farmland | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 51,682 | $ | 33,870 | $ | 18,674 | $ | 5,105 | $ | 5,060 | $ | 10,240 | $ | 1,812 | $ | 126,443 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 3,105 | 3,824 | — | 734 | 292 | 223 | — | 8,178 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 1,580 | 2,004 | 1,681 | 2,562 | 1,667 | 558 | — | 10,052 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 56,367 | $ | 39,698 | $ | 20,355 | $ | 8,401 | $ | 7,019 | $ | 11,021 | $ | 1,812 | $ | 144,673 | |||||||||||||||||||||||||||||||||||||
CRE - Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 97,188 | $ | 96,389 | $ | 19,234 | $ | 2,754 | $ | 4,555 | $ | 3,813 | $ | 273 | $ | 224,206 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 7,871 | — | — | 6,000 | 1,859 | 544 | — | 16,274 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 663 | 2,049 | — | — | — | 1,311 | — | 4,023 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 105,722 | $ | 98,438 | $ | 19,234 | $ | 8,754 | $ | 6,414 | $ | 5,668 | $ | 273 | $ | 244,503 | |||||||||||||||||||||||||||||||||||||
CRE - other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 325,902 | $ | 384,591 | $ | 94,449 | $ | 37,960 | $ | 60,890 | $ | 60,543 | $ | 45,910 | $ | 1,010,245 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 5,302 | 26,239 | 5,172 | 11,243 | 2,557 | 1,905 | 1,768 | 54,186 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 4,182 | 48,885 | 12,497 | 5,401 | 973 | 6,836 | — | 78,774 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 335,386 | $ | 459,715 | $ | 112,118 | $ | 54,604 | $ | 64,420 | $ | 69,284 | $ | 47,678 | $ | 1,143,205 | |||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 115,539 | $ | 77,086 | $ | 27,279 | $ | 24,697 | $ | 16,425 | $ | 65,676 | $ | 5,331 | $ | 332,033 | |||||||||||||||||||||||||||||||||||||
Nonperforming | 352 | 20 | 45 | 295 | — | 563 | — | 1,275 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 115,891 | $ | 77,106 | $ | 27,324 | $ | 24,992 | $ | 16,425 | $ | 66,239 | $ | 5,331 | $ | 333,308 | |||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 29,904 | $ | 13,335 | $ | 4,295 | $ | 5,109 | $ | 3,574 | $ | 5,104 | $ | 70,980 | $ | 132,301 | |||||||||||||||||||||||||||||||||||||
Nonperforming | 31 | — | 156 | 198 | 16 | 207 | 105 | 713 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 29,935 | $ | 13,335 | $ | 4,451 | $ | 5,307 | $ | 3,590 | $ | 5,311 | $ | 71,085 | $ | 133,014 | |||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 33,124 | $ | 14,386 | $ | 5,917 | $ | 4,080 | $ | 1,686 | $ | 5,778 | $ | 3,412 | $ | 68,383 | |||||||||||||||||||||||||||||||||||||
Nonperforming | — | — | 15 | — | 13 | 7 | — | 35 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 33,124 | $ | 14,386 | $ | 5,932 | $ | 4,080 | $ | 1,699 | $ | 5,785 | $ | 3,412 | $ | 68,418 | |||||||||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 882,864 | $ | 759,876 | $ | 197,924 | $ | 84,212 | $ | 133,227 | $ | 151,463 | $ | 271,634 | $ | 2,481,200 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 22,675 | 32,553 | 6,367 | 18,447 | 9,029 | 17,939 | 10,391 | 117,401 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 7,082 | 56,416 | 16,155 | 8,956 | 2,681 | 11,916 | 8,465 | 111,671 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Performing | 178,567 | 104,807 | 37,491 | 33,886 | 21,685 | 76,558 | 79,723 | 532,717 | |||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | 383 | 20 | 216 | 493 | 29 | 777 | 105 | 2,023 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,091,571 | $ | 953,672 | $ | 258,153 | $ | 145,994 | $ | 166,651 | $ | 258,653 | $ | 370,318 | $ | 3,245,012 |
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 (in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 20,279 | $ | 12,511 | $ | 5,398 | $ | 2,883 | $ | 939 | $ | 1,063 | $ | 65,395 | $ | 108,468 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 143 | 1,012 | 115 | 36 | — | 604 | 1,655 | 3,565 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 48 | 646 | 366 | 4 | 7 | 302 | 1,914 | 3,287 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 20,470 | $ | 14,169 | $ | 5,879 | $ | 2,923 | $ | 946 | $ | 1,969 | $ | 68,964 | $ | 115,320 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 262,500 | $ | 232,263 | $ | 151,567 | $ | 48,199 | $ | 27,680 | $ | 115,877 | $ | 163,205 | $ | 1,001,291 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 3,975 | 3,574 | 5,465 | 592 | 3,299 | 1,864 | 12,299 | 31,068 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 556 | 166 | 1,172 | 756 | 556 | 18,585 | 1,012 | 22,803 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 267,031 | $ | 236,003 | $ | 158,204 | $ | 49,547 | $ | 31,535 | $ | 136,326 | $ | 176,516 | $ | 1,055,162 | |||||||||||||||||||||||||||||||||||||
CRE - Construction and development | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 144,597 | $ | 73,832 | $ | 19,324 | $ | 989 | $ | 1,058 | $ | 549 | $ | 28,069 | $ | 268,418 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 1,787 | 499 | — | — | — | — | — | 2,286 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 281 | — | — | — | — | 6 | — | 287 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 146,665 | $ | 74,331 | $ | 19,324 | $ | 989 | $ | 1,058 | $ | 555 | $ | 28,069 | $ | 270,991 | |||||||||||||||||||||||||||||||||||||
CRE - Farmland | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 55,251 | $ | 52,802 | $ | 28,744 | $ | 7,266 | $ | 8,406 | $ | 12,895 | $ | 1,946 | $ | 167,310 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 3,058 | 2,229 | 1,470 | — | 225 | 21 | 1,693 | 8,696 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 148 | 1,974 | 1,192 | 1,136 | 1,459 | 1,998 | — | 7,907 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 58,457 | $ | 57,005 | $ | 31,406 | $ | 8,402 | $ | 10,090 | $ | 14,914 | $ | 3,639 | $ | 183,913 | |||||||||||||||||||||||||||||||||||||
CRE - Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 31,018 | $ | 93,907 | $ | 84,573 | $ | 17,137 | $ | 2,549 | $ | 5,161 | $ | 49 | $ | 234,394 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 1,000 | — | 1,567 | — | 5,931 | 1,178 | — | 9,676 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | — | 7,725 | 334 | — | — | — | — | 8,059 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 32,018 | $ | 101,632 | $ | 86,474 | $ | 17,137 | $ | 8,480 | $ | 6,339 | $ | 49 | $ | 252,129 | |||||||||||||||||||||||||||||||||||||
CRE - Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 322,753 | $ | 314,376 | $ | 296,368 | $ | 79,408 | $ | 31,041 | $ | 81,708 | $ | 51,064 | $ | 1,176,718 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 8,858 | 3,399 | 13,245 | 10,365 | 1,137 | 8,122 | 2,518 | 47,644 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 752 | 589 | 19,702 | 13,294 | 10,197 | 4,089 | — | 48,623 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 332,363 | $ | 318,364 | $ | 329,315 | $ | 103,067 | $ | 42,375 | $ | 93,919 | $ | 53,582 | $ | 1,272,985 | |||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass / Performing | $ | 139,289 | $ | 103,534 | $ | 63,627 | $ | 23,831 | $ | 21,868 | $ | 77,967 | $ | 11,438 | $ | 441,554 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 1,074 | 611 | 672 | 1,920 | 150 | 702 | — | 5,129 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard / Nonperforming | 175 | 438 | 174 | 175 | 674 | 2,891 | — | 4,527 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 140,538 | $ | 104,583 | $ | 64,473 | $ | 25,926 | $ | 22,692 | $ | 81,560 | $ | 11,438 | $ | 451,210 | |||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 37,296 | $ | 22,908 | $ | 8,906 | $ | 3,058 | $ | 3,757 | $ | 6,330 | $ | 79,798 | $ | 162,053 | |||||||||||||||||||||||||||||||||||||
Nonperforming | — | 23 | 31 | 179 | 756 | 76 | 100 | 1,165 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 37,296 | $ | 22,931 | $ | 8,937 | $ | 3,237 | $ | 4,513 | $ | 6,406 | $ | 79,898 | $ | 163,218 | |||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 32,584 | $ | 18,979 | $ | 7,966 | $ | 3,489 | $ | 1,646 | $ | 6,641 | $ | 4,255 | $ | 75,560 | |||||||||||||||||||||||||||||||||||||
Nonperforming | — | 2 | 16 | 9 | 4 | 5 | — | 36 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 32,584 | $ | 18,981 | $ | 7,982 | $ | 3,498 | $ | 1,650 | $ | 6,646 | $ | 4,255 | $ | 75,596 | |||||||||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 975,687 | $ | 883,225 | $ | 649,601 | $ | 179,713 | $ | 93,541 | $ | 295,220 | $ | 321,166 | $ | 3,398,153 | |||||||||||||||||||||||||||||||||||||
Special mention / watch | 19,895 | 11,324 | 22,534 | 12,913 | 10,742 | 12,491 | 18,165 | 108,064 | |||||||||||||||||||||||||||||||||||||||||||||
Substandard | 1,960 | 11,538 | 22,940 | 15,365 | 12,893 | 27,871 | 2,926 | 95,493 | |||||||||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Performing | 69,880 | 41,887 | 16,872 | 6,547 | 5,403 | 12,971 | 84,053 | 237,613 | |||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 25 | 47 | 188 | 760 | 81 | 100 | 1,201 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,067,422 | $ | 947,999 | $ | 711,994 | $ | 214,726 | $ | 123,339 | $ | 348,634 | $ | 426,410 | $ | 3,840,524 |
For the Three Months Ended June 30, 2023 and 2022 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 513 | $ | 22,345 | $ | 21,833 | $ | 4,545 | $ | 564 | $ | 49,800 | |||||||||||||||||||||||
Charge-offs | — | (189) | (812) | (33) | (125) | (1,159) | |||||||||||||||||||||||||||||
Recoveries | 1 | 195 | 6 | 16 | 44 | 262 | |||||||||||||||||||||||||||||
Credit loss expense (benefit)(1) | 103 | 570 | 884 | (135) | 75 | 1,497 | |||||||||||||||||||||||||||||
Ending balance | $ | 617 | $ | 22,921 | $ | 21,911 | $ | 4,393 | $ | 558 | $ | 50,400 | |||||||||||||||||||||||
For the Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 380 | $ | 17,275 | $ | 24,057 | $ | 3,908 | $ | 580 | $ | 46,200 | |||||||||||||||||||||||
PCD allowance established in acquisition | 512 | 1,473 | 1,227 | 159 | — | 3,371 | |||||||||||||||||||||||||||||
Charge-offs | (1) | (330) | — | (8) | (101) | (440) | |||||||||||||||||||||||||||||
Recoveries | 1 | 93 | 31 | 4 | 30 | 159 | |||||||||||||||||||||||||||||
Credit loss expense (benefit) (1) | 95 | 2,655 | (916) | 1,111 | 115 | 3,060 | |||||||||||||||||||||||||||||
Ending balance | $ | 987 | $ | 21,166 | $ | 24,399 | $ | 5,174 | $ | 624 | $ | 52,350 | |||||||||||||||||||||||
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.1 million and $0.2 million related to off-balance sheet credit exposures for the three months ended June 30, 2023 and June 30, 2022, respectively. |
For the Three Months Ended June 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 380 | $ | 17,275 | $ | 24,057 | $ | 3,908 | $ | 580 | $ | 46,200 | |||||||||||||||||||||||
PCD allowance established in acquisition | 512 | 1,473 | 1,227 | 159 | — | $ | 3,371 | ||||||||||||||||||||||||||||
Charge-offs | (1) | (330) | — | (8) | (101) | (440) | |||||||||||||||||||||||||||||
Recoveries | 1 | 93 | 31 | 4 | 30 | 159 | |||||||||||||||||||||||||||||
Credit loss expense (benefit)(1) | 95 | 2,655 | (916) | 1,111 | 115 | 3,060 | |||||||||||||||||||||||||||||
Ending balance | $ | 987 | $ | 21,166 | $ | 24,399 | $ | 5,174 | $ | 624 | $ | 52,350 | |||||||||||||||||||||||
For the Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,110 | $ | 13,644 | $ | 30,425 | $ | 4,655 | $ | 816 | $ | 50,650 | |||||||||||||||||||||||
Charge-offs | (113) | (195) | (350) | (71) | (111) | (840) | |||||||||||||||||||||||||||||
Recoveries | 21 | 314 | 9 | 47 | 43 | 434 | |||||||||||||||||||||||||||||
Credit loss (benefit) expense(1) | (5) | 24 | (1,568) | (555) | (140) | (2,244) | |||||||||||||||||||||||||||||
Ending balance | $ | 1,013 | $ | 13,787 | $ | 28,516 | $ | 4,076 | $ | 608 | $ | 48,000 | |||||||||||||||||||||||
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense of $0.2 million and $0.1 million related to off-balance sheet credit exposures for the three months ended June 30, 2022 and June 30, 2021, respectively. |
For the Six Months Ended June 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 667 | $ | 17,294 | $ | 26,120 | $ | 4,010 | $ | 609 | $ | 48,700 | |||||||||||||||||||||||
PCD allowance established in acquisition | 512 | 1,473 | 1,227 | 159 | — | $ | 3,371 | ||||||||||||||||||||||||||||
Charge-offs | (1) | (563) | (2,184) | (38) | (285) | (3,071) | |||||||||||||||||||||||||||||
Recoveries | 8 | 318 | 148 | 20 | 74 | 568 | |||||||||||||||||||||||||||||
Credit loss expense (benefit)(1) | (199) | 2,644 | (912) | 1,023 | 226 | 2,782 | |||||||||||||||||||||||||||||
Ending balance | $ | 987 | $ | 21,166 | $ | 24,399 | $ | 5,174 | $ | 624 | $ | 52,350 | |||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,346 | $ | 15,689 | $ | 32,640 | $ | 4,882 | $ | 943 | $ | 55,500 | |||||||||||||||||||||||
Charge-offs | (154) | (861) | (416) | (106) | (306) | (1,843) | |||||||||||||||||||||||||||||
Recoveries | 48 | 606 | 315 | 56 | 96 | 1,121 | |||||||||||||||||||||||||||||
Credit loss (benefit) expense(1) | (227) | (1,647) | (4,023) | (756) | (125) | (6,778) | |||||||||||||||||||||||||||||
Ending balance | $ | 1,013 | $ | 13,787 | $ | 28,516 | $ | 4,076 | $ | 608 | $ | 48,000 | |||||||||||||||||||||||
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.5 million and $(0.1) million related to off-balance sheet credit exposures for the six-months ended June 30, 2022 and June 30, 2021, respectively. |
For the Six Months Ended June 30, 2023 and 2022 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 923 | $ | 22,855 | $ | 20,123 | $ | 4,678 | $ | 621 | $ | 49,200 | |||||||||||||||||||||||
Charge-offs | (1) | (509) | (830) | (33) | (273) | (1,646) | |||||||||||||||||||||||||||||
Recoveries | 27 | 270 | 11 | 20 | 88 | 416 | |||||||||||||||||||||||||||||
Credit loss expense (benefit)(1) | (332) | 305 | 2,607 | (272) | 122 | 2,430 | |||||||||||||||||||||||||||||
Ending balance | $ | 617 | $ | 22,921 | $ | 21,911 | $ | 4,393 | $ | 558 | $ | 50,400 | |||||||||||||||||||||||
For the Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 667 | $ | 17,294 | $ | 26,120 | $ | 4,010 | $ | 609 | $ | 48,700 | |||||||||||||||||||||||
PCD allowance established in acquisition | 512 | 1,473 | 1,227 | 159 | — | 3,371 | |||||||||||||||||||||||||||||
Charge-offs | (1) | (563) | (2,184) | (38) | (285) | (3,071) | |||||||||||||||||||||||||||||
Recoveries | 8 | 318 | 148 | 20 | 74 | 568 | |||||||||||||||||||||||||||||
Credit loss (benefit) expense(1) | (199) | 2,644 | (912) | 1,023 | 226 | 2,782 | |||||||||||||||||||||||||||||
Ending balance | $ | 987 | $ | 21,166 | $ | 24,399 | $ | 5,174 | $ | 624 | $ | 52,350 | |||||||||||||||||||||||
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.1 million and $0.5 million related to off-balance sheet credit exposures for the six-months ended June 30, 2023 and June 30, 2022, respectively. |
As of June 30, 2022 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,094 | $ | 5,421 | $ | 24,509 | $ | 1,843 | $ | — | $ | 34,867 | |||||||||||||||||||||||
Collectively evaluated for impairment | 107,169 | 980,716 | 1,835,431 | 576,961 | 76,008 | 3,576,285 | |||||||||||||||||||||||||||||
Total | $ | 110,263 | $ | 986,137 | $ | 1,859,940 | $ | 578,804 | $ | 76,008 | $ | 3,611,152 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 511 | $ | 1,907 | $ | 1,497 | $ | 403 | $ | — | $ | 4,318 | |||||||||||||||||||||||
Collectively evaluated for impairment | 476 | 19,259 | 22,902 | 4,771 | 624 | 48,032 | |||||||||||||||||||||||||||||
Total | $ | 987 | $ | 21,166 | $ | 24,399 | $ | 5,174 | $ | 624 | $ | 52,350 |
As of December 31, 2021 | As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | (in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | Loans held for investment, net of unearned income | Loans held for investment, net of unearned income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | Individually evaluated for impairment | $ | 1,341 | $ | 3,005 | $ | 23,118 | $ | 570 | $ | — | $ | 28,034 | Individually evaluated for impairment | $ | 224 | $ | 2,932 | $ | 12,955 | $ | 1,322 | $ | — | $ | 17,433 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | Collectively evaluated for impairment | 102,076 | 899,309 | 1,681,423 | 465,752 | 68,418 | 3,216,978 | Collectively evaluated for impairment | 105,924 | 1,086,337 | 2,121,664 | 615,529 | 71,762 | 4,001,216 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 103,417 | $ | 902,314 | $ | 1,704,541 | $ | 466,322 | $ | 68,418 | $ | 3,245,012 | Total | $ | 106,148 | $ | 1,089,269 | $ | 2,134,619 | $ | 616,851 | $ | 71,762 | $ | 4,018,649 | ||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | Allowance for credit losses: | Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | Individually evaluated for impairment | $ | — | $ | 681 | $ | 2,193 | $ | 224 | $ | — | $ | 3,098 | Individually evaluated for impairment | $ | — | $ | 753 | $ | 978 | $ | 180 | $ | — | $ | 1,911 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | Collectively evaluated for impairment | 667 | 16,613 | 23,927 | 3,786 | 609 | 45,602 | Collectively evaluated for impairment | 617 | 22,168 | 20,933 | 4,213 | 558 | 48,489 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 667 | $ | 17,294 | $ | 26,120 | $ | 4,010 | $ | 609 | $ | 48,700 | Total | $ | 617 | $ | 22,921 | $ | 21,911 | $ | 4,393 | $ | 558 | $ | 50,400 |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,531 | $ | 2,184 | $ | 15,768 | $ | 1,650 | $ | — | $ | 22,133 | |||||||||||||||||||||||
Collectively evaluated for impairment | 112,789 | 1,052,978 | 1,964,250 | 612,778 | 75,596 | 3,818,391 | |||||||||||||||||||||||||||||
Total | $ | 115,320 | $ | 1,055,162 | $ | 1,980,018 | $ | 614,428 | $ | 75,596 | $ | 3,840,524 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 500 | $ | 600 | $ | 705 | $ | 180 | $ | — | $ | 1,985 | |||||||||||||||||||||||
Collectively evaluated for impairment | 423 | 22,255 | 19,418 | 4,498 | 621 | 47,215 | |||||||||||||||||||||||||||||
Total | $ | 923 | $ | 22,855 | $ | 20,123 | $ | 4,678 | $ | 621 | $ | 49,200 |
As of June 30, 2022 | As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Primary Type of Collateral | (in thousands) | Primary Type of Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | Equipment | Other | Total | ACL Allocation | Real Estate | Equipment | Other | Total | ACL Allocation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | Agricultural | $ | 581 | $ | 2,513 | $ | — | $ | 3,094 | $ | 511 | Agricultural | $ | 12 | $ | 213 | $ | — | $ | 225 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | Commercial and industrial | 1,410 | 2,124 | 1,887 | 5,421 | 1,907 | Commercial and industrial | 713 | 790 | 1,429 | 2,932 | 753 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | Commercial real estate: | Commercial real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and development | Construction and development | 418 | — | — | 418 | 116 | Construction and development | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | Farmland | 6,255 | — | — | 6,255 | — | Farmland | 5,596 | — | — | 5,596 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | Multifamily | 2,325 | — | — | 2,325 | 362 | Multifamily | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate-other | Commercial real estate-other | 15,221 | — | 290 | 15,511 | 1,019 | Commercial real estate-other | 7,167 | — | 192 | 7,359 | 978 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate: | Residential real estate: | Residential real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four- family first liens | One- to four- family first liens | 1,123 | — | — | 1,123 | 223 | One- to four- family first liens | 600 | — | — | 600 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One- to four- family junior liens | One- to four- family junior liens | — | — | 720 | 720 | 180 | One- to four- family junior liens | — | — | 721 | 721 | 180 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | — | — | — | — | — | Consumer | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 27,333 | $ | 4,637 | $ | 2,897 | $ | 34,867 | $ | 4,318 | Total | $ | 14,088 | $ | 1,003 | $ | 2,342 | $ | 17,433 | $ | 1,911 |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Primary Type of Collateral | |||||||||||||||||||||||||||||||||||||
Real Estate | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||||||||
Agricultural | $ | 68 | $ | 2,463 | $ | — | $ | 2,531 | $ | 500 | ||||||||||||||||||||||||||||
Commercial and industrial | 856 | 736 | 592 | 2,184 | 600 | |||||||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Farmland | 4,515 | — | — | 4,515 | — | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Commercial real estate-other | 11,006 | — | 247 | 11,253 | 705 | |||||||||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||||||||
One- to four- family first liens | 929 | — | — | 929 | — | |||||||||||||||||||||||||||||||||
One- to four- family junior liens | — | — | 721 | 721 | 180 | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 17,374 | $ | 3,199 | $ | 1,560 | $ | 22,133 | $ | 1,985 |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Primary Type of Collateral | |||||||||||||||||||||||||||||||||||||
Real Estate | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||||||||
Agricultural | $ | 916 | $ | 425 | $ | — | $ | 1,341 | $ | — | ||||||||||||||||||||||||||||
Commercial and industrial | 408 | 374 | 2,223 | 3,005 | 681 | |||||||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||||||||
Construction and development | 595 | — | — | 595 | — | |||||||||||||||||||||||||||||||||
Farmland | 5,185 | — | — | 5,185 | 22 | |||||||||||||||||||||||||||||||||
Multifamily | 987 | — | — | 987 | 387 | |||||||||||||||||||||||||||||||||
Commercial real estate-other | 16,130 | — | 221 | 16,351 | 1,784 | |||||||||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||||||||
One- to four- family first liens | 410 | — | — | 410 | 64 | |||||||||||||||||||||||||||||||||
One- to four- family junior liens | — | — | 160 | 160 | 160 | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 24,631 | $ | 799 | $ | 2,604 | $ | 28,034 | $ | 3,098 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
CONCESSION - Interest rate reduction | |||||||||||||||||||||||||||||||||||
Farmland | — | $ | — | $ | — | 2 | $ | 1,982 | $ | 1,982 | |||||||||||||||||||||||||
One- to four- family first liens | — | — | — | 1 | 171 | 171 | |||||||||||||||||||||||||||||
CONCESSION - Extended maturity date | |||||||||||||||||||||||||||||||||||
Agricultural | 1 | 12 | 12 | — | — | — | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | 512 | 502 | — | — | — | |||||||||||||||||||||||||||||
Farmland | 4 | 988 | 888 | — | — | — | |||||||||||||||||||||||||||||
One- to four- family first liens | — | — | — | 1 | 85 | 85 | |||||||||||||||||||||||||||||
Total | 9 | $ | 1,512 | $ | 1,402 | 4 | $ | 2,238 | $ | 2,238 | |||||||||||||||||||||||||
For the Three Months and Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Combination: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Principal Forgiveness | Payment Delay | Term Extension | Interest Rate Reduction | Term Extension & Interest Rate Reduction | Principal Forgiveness & Term Extension | Principal Forgiveness, Term Extension, & Interest Rate Reduction | Total Class of Financing Receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | 15 | $ | — | $ | — | $ | — | $ | — | $ | — | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | 272 | 732 | — | — | — | 192 | 0.11 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Farmland | — | — | 1,843 | — | — | — | — | 1.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Other | — | 158 | — | — | — | — | — | 0.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | — | — | 80 | — | — | — | — | 0.02 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 445 | $ | 2,655 | $ | — | $ | — | $ | — | $ | 192 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | 15 | $ | — | $ | — | $ | — | $ | — | $ | — | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | 272 | 778 | — | 112 | 305 | 192 | 0.15 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Farmland | — | — | 1,843 | — | — | — | — | 1.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CRE - Other | — | 158 | — | — | — | — | — | 0.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | — | — | 80 | — | — | — | — | 0.02 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 445 | $ | 2,701 | $ | — | $ | 112 | $ | 305 | $ | 192 |
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | 15 | $ | — | $ | — | $ | 15 | |||||||||||||||||||||||||||||||
Commercial and industrial | 968 | — | 690 | — | 1,658 | ||||||||||||||||||||||||||||||||||||
CRE - Farmland | 1,843 | — | — | — | 1,843 | ||||||||||||||||||||||||||||||||||||
CRE - Other | 158 | — | — | — | 158 | ||||||||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | 80 | — | — | — | 80 | ||||||||||||||||||||||||||||||||||||
Total | $ | 3,049 | $ | 15 | $ | 690 | $ | — | $ | 3,754 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
CONCESSION - Interest rate reduction | |||||||||||||||||||||||||||||||||||
Farmland | — | $ | — | $ | — | 2 | $ | 1,982 | $ | 1,982 | |||||||||||||||||||||||||
One- to four- family first liens | — | — | — | 1 | 171 | 171 | |||||||||||||||||||||||||||||
CONCESSION - Extended maturity date | |||||||||||||||||||||||||||||||||||
Agricultural | 1 | 12 | 12 | — | — | — | |||||||||||||||||||||||||||||
Commercial and industrial | 4 | 512 | 502 | — | — | — | |||||||||||||||||||||||||||||
Farmland | 4 | 988 | 888 | — | — | — | |||||||||||||||||||||||||||||
One- to four- family first liens | — | — | — | 2 | 178 | 178 | |||||||||||||||||||||||||||||
CONCESSION - Other | |||||||||||||||||||||||||||||||||||
Agricultural | 1 | 140 | 140 | — | — | — | |||||||||||||||||||||||||||||
Farmland | 3 | 1,529 | 1,529 | — | — | — | |||||||||||||||||||||||||||||
Commercial real estate-other | — | — | — | 1 | 44 | 44 | |||||||||||||||||||||||||||||
One- to four- family first liens | — | — | — | 1 | 150 | 150 | |||||||||||||||||||||||||||||
Total | 13 | $ | 3,181 | $ | 3,071 | 7 | $ | 2,525 | $ | 2,525 | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
CONCESSION - Extended maturity date | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 403 | — | $ | — | 1 | $ | 403 | — | $ | — | |||||||||||||||||||||||||||||||||||
Farmland | 3 | 490 | — | — | 3 | 490 | — | — | |||||||||||||||||||||||||||||||||||||||
Commercial real estate-other | — | — | — | — | 1 | 7,388 | — | — | |||||||||||||||||||||||||||||||||||||||
Total | 4 | $ | 893 | — | $ | — | 5 | $ | 8,281 | — | $ | — |
(dollars in thousands) | Principal Forgiveness | Weighted Average Interest Rate Reduction | Weighted Average Term Extension (Years) | ||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||
Agricultural | $ | — | — | % | 0 | ||||||||||||||||||
Commercial and industrial | — | — | % | 6.45 | |||||||||||||||||||
CRE - Construction and development | — | — | % | 0 | |||||||||||||||||||
CRE - Farmland | — | — | % | 0.89 | |||||||||||||||||||
CRE - Multifamily | — | — | % | 0 | |||||||||||||||||||
CRE - Other | — | — | % | 0 | |||||||||||||||||||
RRE - One- to four- family first liens | — | — | % | 3.87 | |||||||||||||||||||
RRE - One- to four- family junior liens | — | — | % | 0 | |||||||||||||||||||
Consumer | — | — | % | 0 | |||||||||||||||||||
Total | $ | — | — | % | 2.87 | ||||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Agricultural | $ | — | — | % | 0 | ||||||||||||||||||
Commercial and industrial | 63 | 1.25 | % | 8.26 | |||||||||||||||||||
CRE - Construction and development | — | — | % | 0 | |||||||||||||||||||
CRE - Farmland | — | — | % | 0.89 | |||||||||||||||||||
CRE - Multifamily | — | — | % | 0 | |||||||||||||||||||
CRE - Other | 18 | 7.00 | % | 2.47 | |||||||||||||||||||
RRE - One- to four- family first liens | — | — | % | 3.87 | |||||||||||||||||||
RRE - One- to four- family junior liens | — | — | % | 0 | |||||||||||||||||||
Consumer | — | — | % | 0 | |||||||||||||||||||
Total | $ | 81 | 1.25 | % | 4.05 |
As of June 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Assets | Liabilities | Assets | Liabilities | (in thousands) | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Designated as hedging instruments: | Designated as hedging instruments: | Designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hedges: | Fair value hedges: | Fair value hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | $ | 24,414 | $ | 1,541 | $ | — | $ | 24,802 | $ | 424 | $ | 1,400 | Interest rate swaps | $ | 26,367 | $ | 2,489 | $ | 27 | $ | 24,018 | $ | 2,556 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | Cash flow hedges | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | 200,000 | 3,220 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 24,414 | $ | 1,541 | $ | — | $ | 24,802 | $ | 424 | $ | 1,400 | Total | $ | 226,367 | $ | 5,709 | $ | 27 | $ | 24,018 | $ | 2,556 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Not designated as hedging instruments: | Not designated as hedging instruments: | Not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | $ | 339,518 | $ | 14,560 | $ | 14,562 | $ | 356,636 | $ | 5,352 | $ | 5,363 | Interest rate swaps | $ | 304,412 | $ | 19,225 | $ | 19,227 | $ | 331,197 | $ | 21,084 | $ | 21,087 | ||||||||||||||||||||||||||||||||||||||||||||||||||
RPAs - protection sold | 4,105 | — | — | 4,229 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RPAs - protection purchased | RPAs - protection purchased | 9,528 | — | — | 9,629 | — | 2 | RPAs - protection purchased | 24,757 | — | — | 9,421 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Interest rate lock commitments | 8,710 | 112 | — | 17,438 | 330 | — | Interest rate lock commitments | 4,323 | 69 | — | 1,372 | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate forward loan sales contracts | Interest rate forward loan sales contracts | 11,242 | — | 5 | 22,710 | — | (24) | Interest rate forward loan sales contracts | 5,872 | 27 | — | 1,400 | 8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 373,103 | $ | 14,672 | $ | 14,567 | $ | 410,642 | $ | 5,682 | $ | 5,341 | Total | $ | 339,364 | $ | 19,321 | $ | 19,227 | $ | 343,390 | $ | 21,099 | $ | 21,087 |
Amount of Gain (Loss) Recognized in AOCI on Derivative | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
Interest rate swaps | $ | 3,321 | $ | — | Interest Expense | $ | 238 | $ | — | |||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||
Interest rate swaps | $ | 3,459 | $ | — | Interest Expense | $ | 238 | $ | — | |||||||||||||||||||||||
Location and Amount of Gain or Loss Recognized in Income on Fair Value Hedging Relationships | Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Interest Income | Other Income | Interest Income | Other Income | Interest Income | Other Income | Interest Income | Other Income | (in thousands) | Interest Income | Other Income | Interest Income | Other Income | Interest Income | Other Income | Interest Income | Other Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value hedges are recorded | $ | (67) | $ | — | $ | (111) | $ | — | $ | (171) | $ | — | $ | (219) | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income and expense included in the consolidated statements of income related to the effects of fair value or cash flow hedges are recorded | Income and expense included in the consolidated statements of income related to the effects of fair value or cash flow hedges are recorded | $ | 190 | $ | — | $ | (67) | $ | — | $ | 349 | $ | — | $ | (171) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The effects of fair value and cash flow hedging: | The effects of fair value and cash flow hedging: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on fair value hedging relationships in subtopic 815-20: | Gain (loss) on fair value hedging relationships in subtopic 815-20: | Gain (loss) on fair value hedging relationships in subtopic 815-20: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest contracts: | Interest contracts: | Interest contracts: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged items | Hedged items | (963) | — | 578 | — | (2,516) | — | (1,055) | — | Hedged items | (27) | — | (963) | — | 535 | — | (2,516) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative designated as hedging instruments | Derivative designated as hedging instruments | 896 | — | (370) | — | 2,344 | — | 753 | — | Derivative designated as hedging instruments | 658 | — | 896 | — | 255 | — | 2,344 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income statement effect of cash flow hedging relationships in subtopic 815-20: | Income statement effect of cash flow hedging relationships in subtopic 815-20: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest contracts: | Interest contracts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount reclassified from AOCI into income | Amount reclassified from AOCI into income | 238 | — | — | — | 238 | — | — | — |
Line Item in the Balance Sheet in Which the Hedged Item is Included | Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | ||||||||||||
(in thousands) | ||||||||||||||
Loans | $ | 22,902 | $ | (1,537) |
Line Item in the Balance Sheet in Which the Hedged Item is Included | Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | ||||||||||||
(in thousands) | ||||||||||||||
Loans | $ | 23,936 | $ | (2,464) |
Location in the Consolidated Statements of Income | For the Three Months Ended June 30, | For the Six Months Ended June 30, | Location in the Consolidated Statements of Income | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | 2022 | 2021 | 2022 | 2021 | (in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | Other income | $ | 3 | $ | 1 | $ | 8 | $ | 35 | Interest rate swaps | Other income | $ | — | $ | 3 | $ | — | $ | 8 | ||||||||||||||||||||||||||||||||||||||||||||
RPAs | RPAs | Other income | — | 1 | 1 | 1 | RPAs | Other income | — | — | 69 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Interest rate lock commitments | Loan revenue | 163 | — | (218) | — | Interest rate lock commitments | Loan revenue | (32) | 163 | 62 | (218) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate forward loan sales contracts | Interest rate forward loan sales contracts | Loan revenue | (339) | — | (28) | — | Interest rate forward loan sales contracts | Loan revenue | 49 | (339) | 19 | (28) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (173) | $ | 2 | $ | (237) | $ | 36 | Total | $ | 17 | $ | (173) | $ | 150 | $ | (237) |
Gross Amounts Not Offset in the Balance Sheet | Gross Amounts Not Offset in the Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts presented in the Balance Sheet | Financial Instruments | Cash Collateral Received / Paid | Net Assets /Liabilities | (in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts presented in the Balance Sheet | Financial Instruments | Cash Collateral Received / Paid | Net Assets /Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Asset Derivatives | $ | 16,213 | $ | — | $ | 16,213 | $ | — | $ | 14,669 | $ | 1,544 | Asset Derivatives | $ | 25,030 | $ | — | $ | 25,030 | $ | — | $ | 18,083 | $ | 6,947 | ||||||||||||||||||||||||||||||||||||||||||||
Liability Derivatives | Liability Derivatives | 14,567 | — | 14,567 | — | 2,550 | 12,017 | Liability Derivatives | 19,254 | — | 19,254 | — | 6,780 | 12,474 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2022 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Asset Derivatives | $ | 6,106 | $ | — | $ | 6,106 | $ | — | $ | — | $ | 6,106 | Asset Derivatives | $ | 23,655 | $ | — | $ | 23,655 | $ | — | $ | 18,858 | $ | 4,797 | ||||||||||||||||||||||||||||||||||||||||||||
Liability Derivatives | Liability Derivatives | 6,741 | — | 6,741 | — | 3,250 | 3,491 | Liability Derivatives | 21,087 | — | 21,087 | — | 3,460 | 17,627 |
As of June 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core deposit intangible | Core deposit intangible | $ | 58,245 | $ | (32,665) | $ | 25,580 | $ | 41,745 | $ | (30,629) | $ | 11,116 | Core deposit intangible | $ | 58,245 | $ | (38,842) | $ | 19,403 | $ | 58,245 | $ | (35,822) | $ | 22,423 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationship intangible | Customer relationship intangible | 5,265 | (4,124) | 1,141 | 5,265 | (3,692) | 1,573 | Customer relationship intangible | 5,265 | (4,787) | 478 | 5,265 | (4,490) | 775 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 2,700 | (2,587) | 113 | 2,700 | (2,544) | 156 | Other | 2,700 | (2,652) | 48 | 2,700 | (2,623) | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 66,210 | $ | (39,376) | $ | 26,834 | $ | 49,710 | $ | (36,865) | $ | 12,845 | $ | 66,210 | $ | (46,281) | $ | 19,929 | $ | 66,210 | $ | (42,935) | $ | 23,275 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived trade name intangible | Indefinite-lived trade name intangible | $ | 7,040 | $ | 7,040 | Indefinite-lived trade name intangible | $ | 7,040 | $ | 7,040 |
(in thousands) | Core Deposit Intangible | Customer Relationship Intangible | Other | Total | |||||||||||||||||||
2022 | $ | 3,157 | $ | 365 | $ | 36 | $ | 3,558 | |||||||||||||||
2023 | 5,677 | 518 | 51 | 6,246 | |||||||||||||||||||
2024 | 4,705 | 239 | 24 | 4,968 | |||||||||||||||||||
2025 | 3,751 | 19 | 2 | 3,772 | |||||||||||||||||||
2026 | 2,797 | — | — | 2,797 | |||||||||||||||||||
Thereafter | 5,493 | — | — | 5,493 | |||||||||||||||||||
Total | $ | 25,580 | $ | 1,141 | $ | 113 | $ | 26,834 |
(in thousands) | Core Deposit Intangible | Customer Relationship Intangible | Other | Total | |||||||||||||||||||
2023 | $ | 2,657 | $ | 221 | $ | 22 | $ | 2,900 | |||||||||||||||
2024 | 4,705 | 239 | 24 | 4,968 | |||||||||||||||||||
2025 | 3,751 | 18 | 2 | 3,771 | |||||||||||||||||||
2026 | 2,797 | — | — | 2,797 | |||||||||||||||||||
2027 | 1,843 | — | — | 1,843 | |||||||||||||||||||
Thereafter | 3,650 | — | — | 3,650 | |||||||||||||||||||
Total | $ | 19,403 | $ | 478 | $ | 48 | $ | 19,929 |
(in thousands) | June 30, 2022 | December 31, 2021 | |||||||||
Bank-owned life insurance | $ | 94,323 | $ | 85,372 | |||||||
Interest receivable | 22,962 | 20,117 | |||||||||
FHLB stock | 12,003 | 10,157 | |||||||||
Mortgage servicing rights | 12,864 | 6,532 | |||||||||
Operating lease right-of-use assets, net | 2,383 | 2,840 | |||||||||
Federal and state income taxes, current | 1,640 | 178 | |||||||||
Federal and state income taxes, deferred | 30,428 | 13,893 | |||||||||
Derivative assets | 16,213 | 6,106 | |||||||||
Other receivables/assets | 13,504 | 12,553 | |||||||||
$ | 206,320 | $ | 157,748 |
(in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Bank-owned life insurance | $ | 96,757 | $ | 95,539 | |||||||
Interest receivable | 26,587 | 27,090 | |||||||||
FHLB stock | 11,123 | 19,248 | |||||||||
Mortgage servicing rights | 13,155 | 13,421 | |||||||||
Operating lease right-of-use assets, net | 2,847 | 2,492 | |||||||||
Federal and state income taxes, current | 1,463 | 2,366 | |||||||||
Federal and state income taxes, deferred | 36,916 | 39,071 | |||||||||
Derivative assets | 25,030 | 23,655 | |||||||||
Other receivables/assets | 13,617 | 13,635 | |||||||||
$ | 227,495 | $ | 236,517 |
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||
Noninterest bearing deposits | Noninterest bearing deposits | $ | 1,114,825 | $ | 1,005,369 | Noninterest bearing deposits | $ | 897,923 | $ | 1,053,450 | ||||||||||||
Interest checking deposits | Interest checking deposits | 1,749,748 | 1,619,136 | Interest checking deposits | 1,397,276 | 1,624,278 | ||||||||||||||||
Money market deposits | Money market deposits | 1,070,912 | 939,523 | Money market deposits | 1,096,432 | 937,340 | ||||||||||||||||
Savings deposits | Savings deposits | 715,829 | 628,242 | Savings deposits | 585,967 | 664,169 | ||||||||||||||||
Time deposits under $250 | Time deposits under $250 | 547,427 | 505,392 | Time deposits under $250 | 1,014,209 | 559,466 | ||||||||||||||||
Time deposits of $250 or more | Time deposits of $250 or more | 338,700 | 416,857 | Time deposits of $250 or more | 453,640 | 630,239 | ||||||||||||||||
Total deposits | Total deposits | $ | 5,537,441 | $ | 5,114,519 | Total deposits | $ | 5,445,447 | $ | 5,468,942 |
June 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | (in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | ||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 0.35 | % | $ | 151,894 | 0.24 | % | $ | 181,368 | Securities sold under agreements to repurchase | 0.46 | % | $ | 92,054 | 1.32 | % | $ | 156,373 | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | Federal Home Loan Bank advances | 1.73 | 42,000 | — | — | Federal Home Loan Bank advances | 5.33 | 45,000 | 4.48 | 235,500 | ||||||||||||||||||||||||||||||||||||||||||
Federal Reserve Bank borrowings | Federal Reserve Bank borrowings | 5.04 | 225,000 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 0.65 | % | $ | 193,894 | 0.24 | % | $ | 181,368 | Total | 3.91 | % | $ | 362,054 | 3.22 | % | $ | 391,873 |
(in thousands) | (in thousands) | Face Value | Book Value | Interest Rate | Rate | Maturity Date | Callable Date | (in thousands) | Face Value | Book Value | Interest Rate | Rate | Maturity Date | Callable Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust I | ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,908 | Three-month LIBOR + 1.68% | 3.51 | % | 06/15/2036 | 06/15/2011 | ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,949 | Three-month LIBOR + 1.68% | 7.23 | % | 06/15/2036 | 06/15/2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust II | ATBancorp Statutory Trust II | 12,372 | 10,938 | Three-month LIBOR + 1.65% | 3.48 | % | 09/15/2037 | 06/15/2012 | ATBancorp Statutory Trust II | 12,372 | 11,001 | Three-month LIBOR + 1.65% | 7.20 | % | 09/15/2037 | 06/15/2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Barron Investment Capital Trust I | Barron Investment Capital Trust I | 2,062 | 1,816 | Three-month LIBOR + 2.15% | 4.30 | % | 09/23/2036 | 09/23/2011 | Barron Investment Capital Trust I | 2,062 | 1,847 | Three-month LIBOR + 2.15% | 7.69 | % | 09/23/2036 | 09/23/2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central Bancshares Capital Trust II | Central Bancshares Capital Trust II | 7,217 | 6,902 | Three-month LIBOR + 3.50% | 5.33 | % | 03/15/2038 | 03/15/2013 | Central Bancshares Capital Trust II | 7,217 | 6,944 | Three-month LIBOR + 3.50% | 9.05 | % | 03/15/2038 | 03/15/2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MidWestOne Statutory Trust II | MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 3.42 | % | 12/15/2037 | 12/15/2012 | MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 7.14 | % | 12/15/2037 | 12/15/2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 44,847 | $ | 42,028 | Total | $ | 44,847 | $ | 42,205 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust I | ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,888 | Three-month LIBOR + 1.68% | 1.88 | % | 06/15/2036 | 06/15/2011 | ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,928 | Three-month LIBOR + 1.68% | 6.45 | % | 06/15/2036 | 06/15/2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust II | ATBancorp Statutory Trust II | 12,372 | 10,908 | Three-month LIBOR + 1.65% | 1.85 | % | 09/15/2037 | 06/15/2012 | ATBancorp Statutory Trust II | 12,372 | 10,969 | Three-month LIBOR + 1.65% | 6.42 | % | 09/15/2037 | 06/15/2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Barron Investment Capital Trust I | Barron Investment Capital Trust I | 2,062 | 1,800 | Three-month LIBOR + 2.15% | 2.37 | % | 09/23/2036 | 09/23/2011 | Barron Investment Capital Trust I | 2,062 | 1,832 | Three-month LIBOR + 2.15% | 6.88 | % | 09/23/2036 | 09/23/2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central Bancshares Capital Trust II | Central Bancshares Capital Trust II | 7,217 | 6,880 | Three-month LIBOR + 3.50% | 3.70 | % | 03/15/2038 | 03/15/2013 | Central Bancshares Capital Trust II | 7,217 | 6,923 | Three-month LIBOR + 3.50% | 8.27 | % | 03/15/2038 | 03/15/2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MidWestOne Statutory Trust II | MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 1.79 | % | 12/15/2037 | 12/15/2012 | MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 6.36 | % | 12/15/2037 | 12/15/2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 44,847 | $ | 41,940 | Total | $ | 44,847 | $ | 42,116 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | |||||||||||||||||||
Finance lease payable | 8.89 | % | $ | 698 | 8.89 | % | $ | 787 | |||||||||||||||
FHLB borrowings | 3.11 | 6,277 | 2.91 | 17,301 | |||||||||||||||||||
Note payable to unaffiliated bank | 6.71 | 12,500 | 5.67 | 15,000 | |||||||||||||||||||
Total | 5.63 | % | $ | 19,475 | 4.30 | % | $ | 33,088 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | |||||||||||||||||||
Finance lease payable | 8.89 | % | $ | 872 | 8.89 | % | $ | 951 | |||||||||||||||
FHLB borrowings | 2.69 | 27,327 | 2.76 | 48,113 | |||||||||||||||||||
Notes payable to unaffiliated bank | 2.69 | 25,000 | — | — | |||||||||||||||||||
Total | 2.79 | % | $ | 53,199 | 2.88 | % | $ | 49,064 |
(in thousands) | (in thousands) | Weighted Average Rate | Amount | (in thousands) | Weighted Average Rate | Amount | ||||||||||||||||||||||
Due in 2022 | 2.31 | % | $ | 10,000 | ||||||||||||||||||||||||
Due in 2023 | 2.79 | % | 11,000 | |||||||||||||||||||||||||
Due in 2024 | Due in 2024 | 3.11 | % | 6,250 | Due in 2024 | 3.11 | % | 6,250 | ||||||||||||||||||||
Total | Total | 27,250 | Total | 3.11 | % | 6,250 | ||||||||||||||||||||||
Valuation adjustment from acquisition accounting | Valuation adjustment from acquisition accounting | 77 | Valuation adjustment from acquisition accounting | 27 | ||||||||||||||||||||||||
Total | Total | $ | 27,327 | Total | $ | 6,277 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | (dollars in thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | (dollars in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Basic Earnings Per Share: | Basic Earnings Per Share: | Basic Earnings Per Share: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 12,621 | $ | 17,271 | $ | 26,516 | $ | 38,919 | Net income | $ | 7,594 | $ | 12,621 | $ | 8,991 | $ | 26,516 | ||||||||||||||||||||||||||||
Weighted average shares outstanding | Weighted average shares outstanding | 15,667,773 | 15,986,822 | 15,675,412 | 15,988,762 | Weighted average shares outstanding | 15,680,386 | 15,667,773 | 15,665,103 | 15,675,412 | ||||||||||||||||||||||||||||||||||||
Basic earnings per common share | Basic earnings per common share | $ | 0.81 | $ | 1.08 | $ | 1.69 | $ | 2.43 | Basic earnings per common share | $ | 0.48 | $ | 0.81 | $ | 0.57 | $ | 1.69 | ||||||||||||||||||||||||||||
Diluted Earnings Per Share: | Diluted Earnings Per Share: | Diluted Earnings Per Share: | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 12,621 | $ | 17,271 | $ | 26,516 | $ | 38,919 | Net income | $ | 7,594 | $ | 12,621 | $ | 8,991 | $ | 26,516 | ||||||||||||||||||||||||||||
Weighted average shares outstanding, including all dilutive potential shares | Weighted average shares outstanding, including all dilutive potential shares | 15,688,460 | 16,011,766 | 15,703,009 | 16,016,037 | Weighted average shares outstanding, including all dilutive potential shares | 15,689,314 | 15,688,460 | 15,687,729 | 15,703,009 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per common share | Diluted earnings per common share | $ | 0.80 | $ | 1.08 | $ | 1.69 | $ | 2.43 | Diluted earnings per common share | $ | 0.48 | $ | 0.80 | $ | 0.57 | $ | 1.69 |
Actual | For Capital Adequacy Purposes With Capital Conservation Buffer(1) | To Be Well Capitalized Under Prompt Corrective Action Provisions | Actual | For Capital Adequacy Purposes With Capital Conservation Buffer(1) | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | (dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2023 | At June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated: | Consolidated: | Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | Total capital/risk weighted assets | $627,160 | 11.73% | $561,461 | 10.50% | N/A | N/A | Total capital/risk weighted assets | $660,580 | 12.26% | $565,685 | 10.50% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | Tier 1 capital/risk weighted assets | 513,805 | 9.61 | 454,516 | 8.50 | N/A | N/A | Tier 1 capital/risk weighted assets | 546,712 | 10.15 | 457,936 | 8.50 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | Common equity tier 1 capital/risk weighted assets | 471,777 | 8.82 | 374,307 | 7.00 | N/A | N/A | Common equity tier 1 capital/risk weighted assets | 504,508 | 9.36 | 377,124 | 7.00 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | Tier 1 leverage capital/average assets | 513,805 | 8.51 | 241,422 | 4.00 | N/A | N/A | Tier 1 leverage capital/average assets | 546,712 | 8.47 | 258,306 | 4.00 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MidWestOne Bank: | MidWestOne Bank: | MidWestOne Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | Total capital/risk weighted assets | $633,610 | 11.90% | $559,205 | 10.50% | $532,576 | 10.00% | Total capital/risk weighted assets | $657,152 | 12.22% | $564,711 | 10.50% | $537,820 | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | Tier 1 capital/risk weighted assets | 585,255 | 10.99 | 452,690 | 8.50 | 426,061 | 8.00 | Tier 1 capital/risk weighted assets | 608,285 | 11.31 | 457,147 | 8.50 | 430,256 | 8.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | Common equity tier 1 capital/risk weighted assets | 585,255 | 10.99 | 372,803 | 7.00 | 346,175 | 6.50 | Common equity tier 1 capital/risk weighted assets | 608,285 | 11.31 | 376,474 | 7.00 | 349,583 | 6.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | Tier 1 leverage capital/average assets | 585,255 | 9.70 | 241,389 | 4.00 | 301,736 | 5.00 | Tier 1 leverage capital/average assets | 608,285 | 9.42 | 258,165 | 4.00 | 322,706 | 5.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2022 | At December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated: | Consolidated: | Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | Total capital/risk weighted assets | $615,060 | 13.09% | $493,283 | 10.50% | N/A | N/A | Total capital/risk weighted assets | $653,380 | 12.07% | $568,452 | 10.50% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | Tier 1 capital/risk weighted assets | 508,687 | 10.83 | 399,324 | 8.50 | N/A | N/A | Tier 1 capital/risk weighted assets | 544,300 | 10.05 | 460,175 | 8.50 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | Common equity tier 1 capital/risk weighted assets | 466,747 | 9.94 | 328,855 | 7.00 | N/A | N/A | Common equity tier 1 capital/risk weighted assets | 502,184 | 9.28 | 378,968 | 7.00 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | Tier 1 leverage capital/average assets | 508,687 | 8.67 | 234,745 | 4.00 | N/A | N/A | Tier 1 leverage capital/average assets | 544,300 | 8.35 | 260,891 | 4.00 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MidWestOne Bank: | MidWestOne Bank: | MidWestOne Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | Total capital/risk weighted assets | $584,348 | 12.46% | $492,436 | 10.50% | $468,987 | 10.00% | Total capital/risk weighted assets | $654,297 | 12.10% | $567,684 | 10.50% | $540,652 | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | Tier 1 capital/risk weighted assets | 542,975 | 11.58 | 398,639 | 8.50 | 375,189 | 8.00 | Tier 1 capital/risk weighted assets | 610,217 | 11.29 | 459,554 | 8.50 | 432,522 | 8.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | Common equity tier 1 capital/risk weighted assets | 542,975 | 11.58 | 328,291 | 7.00 | 304,841 | 6.50 | Common equity tier 1 capital/risk weighted assets | 610,217 | 11.29 | 378,456 | 7.00 | 351,424 | 6.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | Tier 1 leverage capital/average assets | 542,975 | 9.25 | 234,686 | 4.00 | 293,358 | 5.00 | Tier 1 leverage capital/average assets | 610,217 | 9.36 | 260,776 | 4.00 | 325,970 | 5.00 |
June 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
Commitments to extend credit | Commitments to extend credit | $ | 1,117,754 | $ | 1,014,397 | Commitments to extend credit | $ | 1,280,598 | $ | 1,190,607 | ||||||||||||
Commitments to sell loans | Commitments to sell loans | 4,991 | 12,917 | Commitments to sell loans | 2,821 | 612 | ||||||||||||||||
Standby letters of credit | Standby letters of credit | 18,419 | 16,342 | Standby letters of credit | 16,121 | 18,398 | ||||||||||||||||
Total | Total | $ | 1,141,164 | $ | 1,043,656 | Total | $ | 1,299,540 | $ | 1,209,617 |
Fair Value Measurement at June 30, 2022 Using | Fair Value Measurement at June 30, 2023 Using | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Total | Level 1 | Level 2 | Level 3 | (in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Available for sale debt securities: | Available for sale debt securities: | Available for sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,904 | $ | — | $ | 7,904 | $ | — | ||||||||||||||||||||||||||||||||||||||
State and political subdivisions | State and political subdivisions | 315,911 | — | 315,911 | — | State and political subdivisions | $ | 173,716 | $ | — | $ | 173,716 | $ | — | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 6,539 | — | 6,539 | — | Mortgage-backed securities | 5,457 | — | 5,457 | — | ||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | Collateralized loan obligations | 53,496 | — | 53,496 | — | |||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 165,375 | — | 165,375 | — | Collateralized mortgage obligations | 139,792 | — | 139,792 | — | ||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | 739,060 | — | 739,060 | — | Corporate debt securities | 531,059 | — | 531,059 | — | ||||||||||||||||||||||||||||||||||||
Derivative assets | Derivative assets | 16,213 | — | 16,101 | 112 | Derivative assets | 25,030 | — | 24,961 | 69 | ||||||||||||||||||||||||||||||||||||
Mortgage servicing rights | Mortgage servicing rights | 12,864 | — | 12,864 | — | Mortgage servicing rights | 13,155 | — | 13,155 | — | ||||||||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | Derivative liabilities | $ | 14,567 | $ | — | $ | 14,567 | $ | — | Derivative liabilities | $ | 19,254 | $ | — | $ | 19,254 | $ | — |
Fair Value Measurement at December 31, 2021 Using | Fair Value Measurement at December 31, 2022 Using | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Total | Level 1 | Level 2 | Level 3 | (in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Debt securities available for sale: | Debt securities available for sale: | Debt securities available for sale: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | U.S. Government agencies and corporations | $ | 266 | $ | — | $ | 266 | $ | — | U.S. Government agencies and corporations | $ | 7,345 | $ | — | $ | 7,345 | $ | — | ||||||||||||||||||||||||||||
State and political subdivisions | State and political subdivisions | 765,742 | — | 765,742 | — | State and political subdivisions | 285,356 | — | 285,356 | — | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 100,626 | — | 100,626 | — | Mortgage-backed securities | 5,944 | — | 5,944 | — | ||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | Collateralized mortgage obligations | 768,899 | — | 768,899 | — | Collateralized mortgage obligations | 147,193 | — | 147,193 | — | ||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | 652,577 | — | 652,577 | — | Corporate debt securities | 707,709 | — | 707,709 | — | ||||||||||||||||||||||||||||||||||||
Derivative assets | Derivative assets | 6,106 | — | 5,776 | 330 | Derivative assets | 23,655 | — | 23,648 | 7 | ||||||||||||||||||||||||||||||||||||
Mortgage servicing rights | Mortgage servicing rights | 6,532 | — | 6,532 | — | Mortgage servicing rights | 13,421 | — | 13,421 | — | ||||||||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | Derivative liabilities | $ | 6,741 | $ | — | $ | 6,741 | $ | — | Derivative liabilities | $ | 21,087 | $ | — | $ | 21,087 | $ | — |
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | December 31, 2021 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | (dollars in thousands) | June 30, 2023 | December 31, 2022 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | Interest rate lock commitments | $ | 112 | $ | 330 | Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions | Pull-through rate | 78% | - | 100% | 91% | Interest rate lock commitments | $ | 69 | $ | 7 | Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions | Pull-through rate | 66% | - | 100% | 85% |
Fair Value Measurement at June 30, 2022 Using | Fair Value Measurement at June 30, 2023 Using | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Total | Level 1 | Level 2 | Level 3 | (in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||
Collateral dependent individually analyzed loans | Collateral dependent individually analyzed loans | $ | 14,117 | $ | — | $ | — | $ | 14,117 | Collateral dependent individually analyzed loans | $ | 3,098 | $ | — | $ | — | $ | 3,098 | ||||||||||||||||||||||||||||
Foreclosed assets, net | 284 | — | — | 284 |
Fair Value Measurement at December 31, 2021 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 15,772 | $ | — | $ | — | $ | 15,772 | |||||||||||||||
Foreclosed assets, net | 357 | — | — | 357 |
Fair Value Measurement at December 31, 2022 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 3,159 | $ | — | $ | — | $ | 3,159 | |||||||||||||||
Foreclosed assets, net | 103 | — | — | 103 |
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | December 31, 2021 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | (dollars in thousands) | June 30, 2023 | December 31, 2022 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral dependent individually analyzed loans | Collateral dependent individually analyzed loans | $ | 14,117 | $ | 15,772 | Fair value of collateral | Valuation adjustments | —% | - | 91% | 42% | Collateral dependent individually analyzed loans | $ | 3,098 | $ | 3,159 | Fair value of collateral | Valuation adjustments | —% | - | 55% | 13% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreclosed assets, net | Foreclosed assets, net | $ | 284 | $ | 357 | Fair value of collateral | Valuation adjustments | 8% | - | 12% | 10% | Foreclosed assets, net | $ | — | $ | 103 | Fair value of collateral | Valuation adjustments | N/A(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period. | (1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period. |
June 30, 2023 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 144,558 | $ | 144,558 | $ | 144,558 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 903,520 | 903,520 | — | 903,520 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,099,569 | 900,303 | — | 900,303 | — | ||||||||||||||||||||||||
Loans held for sale | 2,821 | 2,908 | — | 2,908 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,968,249 | 3,856,415 | — | — | 3,856,415 | ||||||||||||||||||||||||
Interest receivable | 26,587 | 26,587 | — | 26,587 | — | ||||||||||||||||||||||||
FHLB stock | 11,123 | 11,123 | — | 11,123 | — | ||||||||||||||||||||||||
Derivative assets | 25,030 | 25,030 | — | 24,961 | 69 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 897,923 | 897,923 | 897,923 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,547,524 | 4,530,765 | 3,079,675 | 1,451,090 | — | ||||||||||||||||||||||||
Short-term borrowings | 362,054 | 362,054 | 362,054 | — | — | ||||||||||||||||||||||||
Finance leases payable | 698 | 698 | — | 698 | — | ||||||||||||||||||||||||
FHLB borrowings | 6,277 | 6,134 | — | 6,134 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,205 | 36,306 | — | 36,306 | — | ||||||||||||||||||||||||
Subordinated debentures | 64,072 | 62,538 | — | 62,538 | — | ||||||||||||||||||||||||
Other long-term debt | 12,500 | 12,500 | — | 12,500 | — | ||||||||||||||||||||||||
Derivative liabilities | 19,254 | 19,254 | — | 19,254 | — | ||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 83,864 | $ | 83,864 | $ | 83,864 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 1,234,789 | 1,234,789 | — | 1,234,789 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,168,042 | 1,010,651 | — | 1,010,651 | — | ||||||||||||||||||||||||
Loans held for sale | 4,991 | 4,985 | — | 4,985 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,558,802 | 3,541,751 | — | — | 3,541,751 | ||||||||||||||||||||||||
Interest receivable | 22,962 | 22,962 | — | 22,962 | — | ||||||||||||||||||||||||
FHLB stock | 12,003 | 12,003 | — | 12,003 | — | ||||||||||||||||||||||||
Derivative assets | 16,213 | 16,213 | — | 16,101 | 112 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 1,114,825 | 1,114,825 | 1,114,825 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,422,616 | 4,405,307 | 3,536,490 | 868,817 | — | ||||||||||||||||||||||||
Short-term borrowings | 193,894 | 193,894 | 193,894 | — | — | ||||||||||||||||||||||||
Finance leases payable | 872 | 872 | — | 872 | — | ||||||||||||||||||||||||
FHLB borrowings | 27,327 | 27,308 | — | 27,308 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,028 | 37,927 | — | 37,927 | — | ||||||||||||||||||||||||
Subordinated debentures | 63,941 | 65,452 | — | 65,452 | — | ||||||||||||||||||||||||
Other long-term debt | 25,000 | 25,000 | — | 25,000 | — | ||||||||||||||||||||||||
Derivative liabilities | 14,567 | 14,567 | — | 14,567 | — | ||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 203,830 | $ | 203,830 | $ | 203,830 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 2,288,110 | 2,288,110 | — | 2,288,110 | — | ||||||||||||||||||||||||
Loans held for sale | 12,917 | 12,970 | — | 12,970 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,196,312 | 3,207,314 | — | — | 3,207,314 | ||||||||||||||||||||||||
Interest receivable | 20,117 | 20,117 | — | 20,117 | — | ||||||||||||||||||||||||
FHLB stock | 10,157 | 10,157 | — | 10,157 | — | ||||||||||||||||||||||||
Derivative assets | 6,106 | 6,106 | — | 5,776 | 330 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 1,005,369 | 1,005,369 | 1,005,369 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,109,150 | 4,105,858 | 3,186,901 | 918,957 | — | ||||||||||||||||||||||||
Short-term borrowings | 181,368 | 181,368 | 181,368 | — | — | ||||||||||||||||||||||||
Finance leases payable | 951 | 951 | — | 951 | — | ||||||||||||||||||||||||
FHLB borrowings | 48,113 | 48,947 | — | 48,947 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 41,940 | 35,545 | — | 35,545 | — | ||||||||||||||||||||||||
Subordinated debentures | 63,875 | 68,207 | — | 68,207 | — | ||||||||||||||||||||||||
Derivative liabilities | 6,741 | 6,741 | — | 6,741 | — | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 86,435 | $ | 86,435 | $ | 86,435 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 1,153,547 | 1,153,547 | — | 1,153,547 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,129,421 | 924,894 | — | 924,894 | — | ||||||||||||||||||||||||
Loans held for sale | 612 | 622 | — | 622 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,791,324 | 3,702,527 | — | — | 3,702,527 | ||||||||||||||||||||||||
Interest receivable | 27,090 | 27,090 | — | 27,090 | — | ||||||||||||||||||||||||
FHLB stock | 19,248 | 19,248 | — | 19,248 | — | ||||||||||||||||||||||||
Derivative assets | 23,655 | 23,655 | — | 23,648 | 7 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 1,053,450 | 1,053,450 | 1,053,450 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,415,492 | 4,393,315 | 3,225,787 | 1,167,528 | — | ||||||||||||||||||||||||
Short-term borrowings | 391,873 | 391,873 | 391,873 | — | — | ||||||||||||||||||||||||
Finance leases payable | 787 | 787 | — | 787 | — | ||||||||||||||||||||||||
FHLB borrowings | 17,301 | 17,032 | — | 17,032 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,116 | 39,023 | — | 39,023 | — | ||||||||||||||||||||||||
Subordinated debentures | 64,006 | 64,004 | — | 64,004 | — | ||||||||||||||||||||||||
Other long-term debt | 15,000 | 15,000 | — | 15,000 | — | ||||||||||||||||||||||||
Derivative liabilities | 21,087 | 21,087 | — | 21,087 | — |
(in thousands) | Classification | June 30, 2023 | December 31, 2022 | |||||||||||||||||
Operating lease right-of-use assets | Other assets | $ | 2,847 | $ | 2,492 | |||||||||||||||
Finance lease right-of-use asset | Premises and equipment, net | 303 | 350 | |||||||||||||||||
Total right-of-use assets | $ | 3,150 | $ | 2,842 | ||||||||||||||||
Operating lease liability | Other liabilities | $ | 3,649 | $ | 3,359 | |||||||||||||||
Finance lease liability | Long-term debt | 698 | 787 | |||||||||||||||||
Total lease liabilities | $ | 4,347 | $ | 4,146 | ||||||||||||||||
Weighted-average remaining lease term: | Operating leases | 10.38 years | 9.23 years | |||||||||||||||||
Finance lease | 3.17 years | 3.67 years | ||||||||||||||||||
Weighted-average discount rate: | Operating leases | 4.23 | % | 4.23 | % | |||||||||||||||
Finance lease | 8.89 | % | 8.89 | % |
(in thousands) | Classification | June 30, 2022 | December 31, 2021 | |||||||||||||||||
Operating lease right-of-use assets | Other assets | $ | 2,383 | $ | 2,840 | |||||||||||||||
Finance lease right-of-use asset | Premises and equipment, net | 406 | 446 | |||||||||||||||||
Total right-of-use assets | $ | 2,789 | $ | 3,286 | ||||||||||||||||
Operating lease liability | Other liabilities | $ | 3,279 | $ | 3,778 | |||||||||||||||
Finance lease liability | Long-term debt | 872 | 951 | |||||||||||||||||
Total lease liabilities | $ | 4,151 | $ | 4,729 | ||||||||||||||||
Weighted-average remaining lease term | ||||||||||||||||||||
Operating leases | 9.60 years | 9.13 years | ||||||||||||||||||
Finance lease | 4.17 years | 4.67 years | ||||||||||||||||||
Weighted-average discount rate | ||||||||||||||||||||
Operating leases | 4.07 | % | 4.13 | % | ||||||||||||||||
Finance lease | 8.89 | % | 8.89 | % |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | 2022 | 2021 | 2022 | 2021 | (in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Lease Costs | Lease Costs | Lease Costs | ||||||||||||||||||||||||||||||||||||||||||||
Operating lease cost | Operating lease cost | $ | 288 | $ | 294 | $ | 585 | $ | 593 | Operating lease cost | $ | 296 | $ | 288 | $ | 588 | $ | 585 | ||||||||||||||||||||||||||||
Variable lease cost | Variable lease cost | 21 | 20 | 42 | 93 | Variable lease cost | 4 | 21 | 11 | 42 | ||||||||||||||||||||||||||||||||||||
Interest on lease liabilities(1) | Interest on lease liabilities(1) | 19 | 23 | 39 | 46 | Interest on lease liabilities(1) | 15 | 19 | 32 | 39 | ||||||||||||||||||||||||||||||||||||
Amortization of right-of-use assets | Amortization of right-of-use assets | 24 | 24 | 48 | 48 | Amortization of right-of-use assets | 24 | 24 | 48 | 48 | ||||||||||||||||||||||||||||||||||||
Net lease cost | Net lease cost | $ | 352 | $ | 361 | $ | 714 | $ | 780 | Net lease cost | $ | 339 | $ | 352 | $ | 679 | $ | 714 | ||||||||||||||||||||||||||||
Other Information | Other Information | Other Information | ||||||||||||||||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Operating cash flows from operating leases | Operating cash flows from operating leases | $ | 540 | $ | 530 | $ | 1,136 | $ | 1,102 | Operating cash flows from operating leases | $ | 592 | $ | 540 | $ | 1,197 | $ | 1,136 | ||||||||||||||||||||||||||||
Operating cash flows from finance lease | Operating cash flows from finance lease | 19 | 23 | 39 | 46 | Operating cash flows from finance lease | 15 | 19 | 32 | 39 | ||||||||||||||||||||||||||||||||||||
Finance cash flows from finance lease | Finance cash flows from finance lease | 40 | 35 | 79 | 70 | Finance cash flows from finance lease | 45 | 40 | 89 | 79 | ||||||||||||||||||||||||||||||||||||
Supplemental non-cash information on lease liabilities: | Supplemental non-cash information on lease liabilities: | Supplemental non-cash information on lease liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | Right-of-use assets obtained in exchange for new operating lease liabilities | 39 | 119 | 39 | 119 | Right-of-use assets obtained in exchange for new operating lease liabilities | — | 39 | 311 | 39 |
(in thousands) | (in thousands) | Finance Leases | Operating Leases | (in thousands) | Finance Leases | Operating Leases | ||||||||||||||||
December 31, 2022 | $ | 121 | $ | 496 | ||||||||||||||||||
December 31, 2023 | December 31, 2023 | 245 | 967 | December 31, 2023 | $ | 123 | $ | 636 | ||||||||||||||
December 31, 2024 | December 31, 2024 | 250 | 725 | December 31, 2024 | 250 | 1,047 | ||||||||||||||||
December 31, 2025 | December 31, 2025 | 255 | 252 | December 31, 2025 | 254 | 568 | ||||||||||||||||
December 31, 2026 | December 31, 2026 | 171 | 155 | December 31, 2026 | 172 | 430 | ||||||||||||||||
December 31, 2027 | December 31, 2027 | — | 302 | |||||||||||||||||||
Thereafter | Thereafter | — | 1,821 | Thereafter | — | 1,738 | ||||||||||||||||
Total undiscounted lease payment | Total undiscounted lease payment | $ | 1,042 | $ | 4,416 | Total undiscounted lease payment | $ | 799 | $ | 4,721 | ||||||||||||
Amounts representing interest | Amounts representing interest | (170) | (1,137) | Amounts representing interest | (101) | (1,072) | ||||||||||||||||
Lease liability | Lease liability | $ | 872 | $ | 3,279 | Lease liability | $ | 698 | $ | 3,649 |
As of or for the Three Months Ended June 30, | As of or for the Three Months Ended June 30, | |||||||||||||||||||||
(dollars in thousands, except per share amounts) | (dollars in thousands, except per share amounts) | 2022 | 2021 | (dollars in thousands, except per share amounts) | 2023 | 2022 | ||||||||||||||||
Net Interest Income | Net Interest Income | $ | 39,725 | $ | 38,505 | Net Interest Income | $ | 36,962 | $ | 39,725 | ||||||||||||
Noninterest Income | Noninterest Income | 12,347 | 10,218 | Noninterest Income | 8,746 | 12,347 | ||||||||||||||||
Total Revenue, Net of Interest Expense | Total Revenue, Net of Interest Expense | 52,072 | 48,723 | Total Revenue, Net of Interest Expense | 45,708 | 52,072 | ||||||||||||||||
Credit Loss Expense (Benefit) | 3,282 | (2,144) | ||||||||||||||||||||
Credit Loss Expense | Credit Loss Expense | 1,597 | 3,282 | |||||||||||||||||||
Noninterest Expense | Noninterest Expense | 32,082 | 28,670 | Noninterest Expense | 34,919 | 32,082 | ||||||||||||||||
Income Before Income Tax Expense | Income Before Income Tax Expense | 16,708 | 22,197 | Income Before Income Tax Expense | 9,192 | 16,708 | ||||||||||||||||
Income Tax Expense | Income Tax Expense | 4,087 | 4,926 | Income Tax Expense | 1,598 | 4,087 | ||||||||||||||||
Net Income | Net Income | 12,621 | 17,271 | Net Income | 7,594 | 12,621 | ||||||||||||||||
Diluted Earnings Per Share | Diluted Earnings Per Share | $ | 0.80 | $ | 1.08 | Diluted Earnings Per Share | $ | 0.48 | $ | 0.80 | ||||||||||||
Return on Average Assets | Return on Average Assets | 0.83 | % | 1.18 | % | Return on Average Assets | 0.47 | % | 0.83 | % | ||||||||||||
Return on Average Equity | Return on Average Equity | 10.14 | 13.24 | Return on Average Equity | 6.03 | 10.14 | ||||||||||||||||
Return on Average Tangible Equity(1) | Return on Average Tangible Equity(1) | 13.13 | 16.75 | Return on Average Tangible Equity(1) | 8.50 | 13.13 | ||||||||||||||||
Efficiency Ratio(1) | Efficiency Ratio(1) | 56.57 | 54.83 | Efficiency Ratio(1) | 71.12 | 56.57 | ||||||||||||||||
Dividend Payout Ratio | Dividend Payout Ratio | 29.32 | 20.83 | Dividend Payout Ratio | 50.52 | 29.32 | ||||||||||||||||
Common Equity Ratio | Common Equity Ratio | 7.59 | 9.22 | Common Equity Ratio | 7.69 | 7.59 | ||||||||||||||||
Tangible Common Equity Ratio(1) | Tangible Common Equity Ratio(1) | 6.18 | 7.86 | Tangible Common Equity Ratio(1) | 6.40 | 6.18 | ||||||||||||||||
Book Value per Share | Book Value per Share | $ | 31.26 | $ | 33.22 | Book Value per Share | $ | 31.96 | $ | 31.26 | ||||||||||||
Tangible Book Value per Share(1) | Tangible Book Value per Share(1) | 25.10 | 27.90 | Tangible Book Value per Share(1) | 26.26 | 25.10 | ||||||||||||||||
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents. | (1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents. | (1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents. |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | Loans, including fees (1)(2)(3) | $ | 3,326,269 | $ | 33,315 | 4.02 | % | $ | 3,396,575 | $ | 35,255 | 4.16 | % | Loans, including fees (1)(2)(3) | $ | 4,003,717 | $ | 50,439 | 5.05 | % | $ | 3,326,269 | $ | 33,315 | 4.02 | % | ||||||||||||||||||||||||||||||||||||||||||||
Taxable investment securities | Taxable investment securities | 1,923,155 | 9,576 | 2.00 | 1,604,463 | 6,483 | 1.62 | Taxable investment securities | 1,698,003 | 9,736 | 2.30 | 1,923,155 | 9,576 | 2.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | Tax-exempt investment securities (2)(4) | 439,385 | 2,975 | 2.72 | 473,181 | 3,196 | 2.71 | Tax-exempt investment securities (2)(4) | 345,934 | 2,253 | 2.61 | 439,385 | 2,975 | 2.72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities held for investment (2) | Total securities held for investment (2) | 2,362,540 | 12,551 | 2.13 | 2,077,644 | 9,679 | 1.87 | Total securities held for investment (2) | 2,043,937 | 11,989 | 2.35 | 2,362,540 | 12,551 | 2.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 30,016 | 40 | 0.53 | 48,208 | 19 | 0.16 | Other | 9,078 | 68 | 3.00 | 30,016 | 40 | 0.53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets (2) | Total interest earning assets (2) | $ | 5,718,825 | $ | 45,906 | 3.22 | % | $ | 5,522,427 | $ | 44,953 | 3.26 | % | Total interest earning assets (2) | $ | 6,056,732 | $ | 62,496 | 4.14 | % | $ | 5,718,825 | $ | 45,906 | 3.22 | % | ||||||||||||||||||||||||||||||||||||||||||||
Other assets | Other assets | 360,125 | 329,309 | Other assets | 409,078 | 360,125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 6,078,950 | $ | 5,851,736 | Total assets | $ | 6,465,810 | $ | 6,078,950 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest checking deposits | Interest checking deposits | $ | 1,641,337 | $ | 1,189 | 0.29 | % | $ | 1,469,853 | $ | 1,095 | 0.30 | % | Interest checking deposits | $ | 1,420,741 | $ | 1,971 | 0.56 | % | $ | 1,641,337 | $ | 1,189 | 0.29 | % | ||||||||||||||||||||||||||||||||||||||||||||
Money market deposits | Money market deposits | 1,003,386 | 571 | 0.23 | 942,072 | 502 | 0.21 | Money market deposits | 999,436 | 5,299 | 2.13 | 1,003,386 | 571 | 0.23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings deposits | Savings deposits | 662,449 | 287 | 0.17 | 595,150 | 324 | 0.22 | Savings deposits | 603,905 | 288 | 0.19 | 662,449 | 287 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | Time deposits | 836,143 | 1,126 | 0.54 | 896,169 | 1,488 | 0.67 | Time deposits | 1,490,332 | 12,559 | 3.38 | 836,143 | 1,126 | 0.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing deposits | Total interest bearing deposits | 4,143,315 | 3,173 | 0.31 | 3,903,244 | 3,409 | 0.35 | Total interest bearing deposits | 4,514,414 | 20,117 | 1.79 | 4,143,315 | 3,173 | 0.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | 154,107 | 111 | 0.29 | 179,253 | 116 | 0.26 | Securities sold under agreements to repurchase | 159,583 | 423 | 1.06 | 154,107 | 111 | 0.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | Other short-term borrowings | 41,859 | 118 | 1.13 | 39,238 | 45 | 0.46 | Other short-term borrowings | 132,495 | 1,695 | 5.13 | 41,859 | 118 | 1.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total short-term borrowings | Total short-term borrowings | 195,966 | 229 | 0.47 | 218,491 | 161 | 0.30 | Total short-term borrowings | 292,078 | 2,118 | 2.91 | 195,966 | 229 | 0.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 144,440 | 1,602 | 4.45 | 189,644 | 1,712 | 3.62 | Long-term debt | 135,329 | 2,153 | 6.38 | 144,440 | 1,602 | 4.45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total borrowed funds | Total borrowed funds | 340,406 | 1,831 | 2.16 | 408,135 | 1,873 | 1.84 | Total borrowed funds | 427,407 | 4,271 | 4.01 | 340,406 | 1,831 | 2.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | Total interest bearing liabilities | $ | 4,483,721 | $ | 5,004 | 0.45 | % | $ | 4,311,379 | $ | 5,282 | 0.49 | % | Total interest bearing liabilities | $ | 4,941,821 | $ | 24,388 | 1.98 | % | $ | 4,483,721 | $ | 5,004 | 0.45 | % | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | Noninterest bearing deposits | 1,038,612 | 972,080 | Noninterest bearing deposits | 940,103 | 1,038,612 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | Other liabilities | 57,157 | 45,035 | Other liabilities | 78,898 | 57,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | Shareholders’ equity | 499,460 | 523,242 | Shareholders’ equity | 504,988 | 499,460 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | Total liabilities and shareholders’ equity | $ | 6,078,950 | $ | 5,851,736 | Total liabilities and shareholders’ equity | $ | 6,465,810 | $ | 6,078,950 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (2) | Net interest income (2) | $ | 40,902 | $ | 39,671 | Net interest income (2) | $ | 38,108 | $ | 40,902 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread(2) | Net interest spread(2) | 2.77 | % | 2.77 | % | Net interest spread(2) | 2.16 | % | 2.77 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin(2) | Net interest margin(2) | 2.87 | % | 2.88 | % | Net interest margin(2) | 2.52 | % | 2.87 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits(5) | Total deposits(5) | $ | 5,181,927 | $ | 3,173 | 0.25 | % | $ | 4,875,324 | $ | 3,409 | 0.28 | % | Total deposits(5) | $ | 5,454,517 | $ | 20,117 | 1.48 | % | $ | 5,181,927 | $ | 3,173 | 0.25 | % | ||||||||||||||||||||||||||||||||||||||||||||
Cost of funds(6) | Cost of funds(6) | 0.36 | % | 0.40 | % | Cost of funds(6) | 1.66 | % | 0.36 | % |
(1) | Average balance includes nonaccrual loans. | ||||
(2) | Tax equivalent. The federal statutory tax rate utilized was 21%. | ||||
(3) | Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were | ||||
(4) | Interest income includes tax equivalent adjustments of | ||||
(5) | Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. | ||||
(6) | Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds. | ||||
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||
2022 Compared to 2021 Change due to | 2023 Compared to 2022 Change due to | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Volume | Yield/Cost | Net | (in thousands) | Volume | Yield/Cost | Net | ||||||||||||||||||||||||||
Increase (decrease) in interest income: | Increase (decrease) in interest income: | Increase (decrease) in interest income: | ||||||||||||||||||||||||||||||||
Loans, including fees (1) | Loans, including fees (1) | $ | (739) | $ | (1,201) | $ | (1,940) | Loans, including fees (1) | $ | 7,584 | $ | 9,540 | $ | 17,124 | ||||||||||||||||||||
Taxable investment securities | Taxable investment securities | 1,418 | 1,675 | 3,093 | Taxable investment securities | (1,191) | 1,351 | 160 | ||||||||||||||||||||||||||
Tax-exempt investment securities (1) | Tax-exempt investment securities (1) | (233) | 12 | (221) | Tax-exempt investment securities (1) | (607) | (115) | (722) | ||||||||||||||||||||||||||
Total securities held for investment (1) | Total securities held for investment (1) | 1,185 | 1,687 | 2,872 | Total securities held for investment (1) | (1,798) | 1,236 | (562) | ||||||||||||||||||||||||||
Other | Other | (9) | 30 | 21 | Other | (45) | 73 | 28 | ||||||||||||||||||||||||||
Change in interest income (1) | Change in interest income (1) | 437 | 516 | 953 | Change in interest income (1) | 5,741 | 10,849 | 16,590 | ||||||||||||||||||||||||||
Increase (decrease) in interest expense: | Increase (decrease) in interest expense: | Increase (decrease) in interest expense: | ||||||||||||||||||||||||||||||||
Interest checking deposits | Interest checking deposits | 130 | (36) | 94 | Interest checking deposits | (180) | 962 | 782 | ||||||||||||||||||||||||||
Money market deposits | Money market deposits | 28 | 41 | 69 | Money market deposits | (2) | 4,730 | 4,728 | ||||||||||||||||||||||||||
Savings deposits | Savings deposits | 37 | (74) | (37) | Savings deposits | (28) | 29 | 1 | ||||||||||||||||||||||||||
Time deposits | Time deposits | (93) | (269) | (362) | Time deposits | 1,481 | 9,952 | 11,433 | ||||||||||||||||||||||||||
Total interest-bearing deposits | Total interest-bearing deposits | 102 | (338) | (236) | Total interest-bearing deposits | 1,271 | 15,673 | 16,944 | ||||||||||||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | (17) | 12 | (5) | Securities sold under agreements to repurchase | 4 | 308 | 312 | ||||||||||||||||||||||||||
Other short-term borrowings | Other short-term borrowings | 3 | 70 | 73 | Other short-term borrowings | 598 | 979 | 1,577 | ||||||||||||||||||||||||||
Total short-term borrowings | Total short-term borrowings | (14) | 82 | 68 | Total short-term borrowings | 602 | 1,287 | 1,889 | ||||||||||||||||||||||||||
Long-term debt | Long-term debt | (456) | 346 | (110) | Long-term debt | (106) | 657 | 551 | ||||||||||||||||||||||||||
Total borrowed funds | Total borrowed funds | (470) | 428 | (42) | Total borrowed funds | 496 | 1,944 | 2,440 | ||||||||||||||||||||||||||
Change in interest expense | Change in interest expense | (368) | 90 | (278) | Change in interest expense | 1,767 | 17,617 | 19,384 | ||||||||||||||||||||||||||
Change in net interest income | Change in net interest income | $ | 805 | $ | 426 | $ | 1,231 | Change in net interest income | $ | 3,974 | $ | (6,768) | $ | (2,794) | ||||||||||||||||||||
Percentage (decrease) in net interest income over prior period | 3.1 | % | ||||||||||||||||||||||||||||||||
Percentage increase in net interest income over prior period | Percentage increase in net interest income over prior period | (6.8) | % | (1) Tax equivalent, using a federal statutory tax rate of 21%. |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | $ | 4,003,717 | $ | 50,439 | 5.05 | % | $ | 3,326,269 | $ | 33,315 | 4.02 | % | |||||||||||||||||||||||
Taxable investment securities | 1,698,003 | 9,736 | 2.30 | 1,923,155 | 9,576 | 2.00 | |||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | 345,934 | 2,253 | 2.61 | 439,385 | 2,975 | 2.72 | |||||||||||||||||||||||||||||
Total securities held for investment (2) | 2,043,937 | 11,989 | 2.35 | 2,362,540 | 12,551 | 2.13 | |||||||||||||||||||||||||||||
Other | 9,078 | 68 | 3.00 | 30,016 | 40 | 0.53 | |||||||||||||||||||||||||||||
Total interest earning assets (2) | $ | 6,056,732 | $ | 62,496 | 4.14 | % | $ | 5,718,825 | $ | 45,906 | 3.22 | % | |||||||||||||||||||||||
Other assets | 409,078 | 360,125 | |||||||||||||||||||||||||||||||||
Total assets | $ | 6,465,810 | $ | 6,078,950 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest checking deposits | $ | 1,420,741 | $ | 1,971 | 0.56 | % | $ | 1,641,337 | $ | 1,189 | 0.29 | % | |||||||||||||||||||||||
Money market deposits | 999,436 | 5,299 | 2.13 | 1,003,386 | 571 | 0.23 | |||||||||||||||||||||||||||||
Savings deposits | 603,905 | 288 | 0.19 | 662,449 | 287 | 0.17 | |||||||||||||||||||||||||||||
Time deposits | 1,490,332 | 12,559 | 3.38 | 836,143 | 1,126 | 0.54 | |||||||||||||||||||||||||||||
Total interest bearing deposits | 4,514,414 | 20,117 | 1.79 | 4,143,315 | 3,173 | 0.31 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 159,583 | 423 | 1.06 | 154,107 | 111 | 0.29 | |||||||||||||||||||||||||||||
Other short-term borrowings | 132,495 | 1,695 | 5.13 | 41,859 | 118 | 1.13 | |||||||||||||||||||||||||||||
Total short-term borrowings | 292,078 | 2,118 | 2.91 | 195,966 | 229 | 0.47 | |||||||||||||||||||||||||||||
Long-term debt | 135,329 | 2,153 | 6.38 | 144,440 | 1,602 | 4.45 | |||||||||||||||||||||||||||||
Total borrowed funds | 427,407 | 4,271 | 4.01 | 340,406 | 1,831 | 2.16 | |||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 4,941,821 | $ | 24,388 | 1.98 | % | $ | 4,483,721 | $ | 5,004 | 0.45 | % | |||||||||||||||||||||||
Noninterest bearing deposits | 940,103 | 1,038,612 | |||||||||||||||||||||||||||||||||
Other liabilities | 78,898 | 57,157 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 504,988 | 499,460 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,465,810 | $ | 6,078,950 | |||||||||||||||||||||||||||||||
Net interest income (2) | $ | 38,108 | $ | 40,902 | |||||||||||||||||||||||||||||||
Net interest spread(2) | 2.16 | % | 2.77 | % | |||||||||||||||||||||||||||||||
Net interest margin(2) | 2.52 | % | 2.87 | % | |||||||||||||||||||||||||||||||
Total deposits(5) | $ | 5,454,517 | $ | 20,117 | 1.48 | % | $ | 5,181,927 | $ | 3,173 | 0.25 | % | |||||||||||||||||||||||
Cost of funds(6) | 1.66 | % | 0.36 | % | |||||||||||||||||||||||||||||||
(1) | Average balance includes nonaccrual loans. | ||||
(2) | Tax equivalent. The federal statutory tax rate utilized was 21%. | ||||
(3) | Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $79 thousand and $(31) thousand for the three months ended June 30, 2023 and June 30, 2022, respectively. Loan purchase discount accretion was $1.0 million and $0.5 million for the three months ended June 30, 2023 and June 30, 2022, respectively. Tax equivalent adjustments were $0.7 million and $0.6 million for the three months ended June 30, 2023 and June 30, 2022, respectively. The federal statutory tax rate utilized was 21%. | ||||
(4) | Interest income includes tax equivalent adjustments of $0.4 million and $0.6 million for the three months ended June 30, 2023 and June 30, 2022, respectively. The federal statutory tax rate utilized was 21%. | ||||
(5) | Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. | ||||
(6) | Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds. | ||||
Three Months Ended June 30, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
Investment services and trust activities | $ | 2,670 | $ | 2,809 | $ | (139) | (4.9) | % | |||||||||||||||
Service charges and fees | 1,717 | 1,475 | 242 | 16.4 | |||||||||||||||||||
Card revenue | 1,878 | 1,913 | (35) | (1.8) | |||||||||||||||||||
Loan revenue | 3,523 | 3,151 | 372 | 11.8 | |||||||||||||||||||
Bank-owned life insurance | 558 | 538 | 20 | 3.7 | |||||||||||||||||||
Investment securities gains, net | 395 | 42 | 353 | 840.5 | |||||||||||||||||||
Other | 1,606 | 290 | 1,316 | 453.8 | |||||||||||||||||||
Total noninterest income | $ | 12,347 | $ | 10,218 | $ | 2,129 | 20.8 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
Compensation and employee benefits | $ | 18,955 | $ | 17,404 | $ | 1,551 | 8.9 | % | |||||||||||||||
Occupancy expense of premises, net | 2,253 | 2,198 | 55 | 2.5 | |||||||||||||||||||
Equipment | 2,107 | 1,861 | 246 | 13.2 | |||||||||||||||||||
Legal and professional | 2,435 | 1,375 | 1,060 | 77.1 | |||||||||||||||||||
Data processing | 1,237 | 1,347 | (110) | (8.2) | |||||||||||||||||||
Marketing | 1,157 | 873 | 284 | 32.5 | |||||||||||||||||||
Amortization of intangibles | 1,283 | 1,341 | (58) | (4.3) | |||||||||||||||||||
FDIC insurance | 420 | 245 | 175 | 71.4 | |||||||||||||||||||
Communications | 266 | 371 | (105) | (28.3) | |||||||||||||||||||
Foreclosed assets, net | 4 | 136 | (132) | (97.1) | |||||||||||||||||||
Other | 1,965 | 1,519 | 446 | 29.4 | |||||||||||||||||||
Total noninterest expense | $ | 32,082 | $ | 28,670 | $ | 3,412 | 11.9 | % |
Three Months Ended June 30, | |||||||||||
Merger-related expenses: | 2022 | 2021 | |||||||||
(dollars in thousands) | |||||||||||
Compensation and employee benefits | $ | 150 | $ | — | |||||||
Occupancy expense of premises, net | 1 | — | |||||||||
Equipment | 6 | — | |||||||||
Legal and professional | 638 | — | |||||||||
Data processing | 38 | — | |||||||||
Marketing | 65 | — | |||||||||
Communications | 2 | — | |||||||||
Other | 1 | — | |||||||||
Total impact of merger-related expenses to noninterest expense | $ | 901 | $ | — |
Three Months Ended June 30, | |||||||||||||||||
2023 Compared to 2022 Change due to | |||||||||||||||||
(in thousands) | Volume | Yield/Cost | Net | ||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||
Loans, including fees (1) | $ | 7,584 | $ | 9,540 | $ | 17,124 | |||||||||||
Taxable investment securities | (1,191) | 1,351 | 160 | ||||||||||||||
Tax-exempt investment securities (1) | (607) | (115) | (722) | ||||||||||||||
Total securities held for investment (1) | (1,798) | 1,236 | (562) | ||||||||||||||
Other | (45) | 73 | 28 | ||||||||||||||
Change in interest income (1) | 5,741 | 10,849 | 16,590 | ||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||
Interest checking deposits | (180) | 962 | 782 | ||||||||||||||
Money market deposits | (2) | 4,730 | 4,728 | ||||||||||||||
Savings deposits | (28) | 29 | 1 | ||||||||||||||
Time deposits | 1,481 | 9,952 | 11,433 | ||||||||||||||
Total interest-bearing deposits | 1,271 | 15,673 | 16,944 | ||||||||||||||
Securities sold under agreements to repurchase | 4 | 308 | 312 | ||||||||||||||
Other short-term borrowings | 598 | 979 | 1,577 | ||||||||||||||
Total short-term borrowings | 602 | 1,287 | 1,889 | ||||||||||||||
Long-term debt | (106) | 657 | 551 | ||||||||||||||
Total borrowed funds | 496 | 1,944 | 2,440 | ||||||||||||||
Change in interest expense | 1,767 | 17,617 | 19,384 | ||||||||||||||
Change in net interest income | $ | 3,974 | $ | (6,768) | $ | (2,794) | |||||||||||
Percentage increase in net interest income over prior period | (6.8) | % | |||||||||||||||
(1) Tax equivalent, using a federal statutory tax rate of 21%. |
As of and for the Six Months Ended June 30, | |||||||||||
(dollars in thousands, except per share amounts) | 2022 | 2021 | |||||||||
Net Interest Income | $ | 77,061 | $ | 77,122 | |||||||
Noninterest Income | 23,991 | 22,042 | |||||||||
Total Revenue, Net of Interest Expense | 101,052 | 99,164 | |||||||||
Credit Loss Expense (Benefit) | 3,282 | (6,878) | |||||||||
Noninterest Expense | 63,725 | 56,370 | |||||||||
Income Before Income Tax Expense | 34,045 | 49,672 | |||||||||
Income Tax Expense | 7,529 | 10,753 | |||||||||
Net Income | 26,516 | 38,919 | |||||||||
Diluted Earnings Per Share | $ | 1.69 | $ | 2.43 | |||||||
Return on Average Assets | 0.89 | % | 1.38 | % | |||||||
Return on Average Equity | 10.44 | 15.10 | |||||||||
Return on Average Tangible Equity(1) | 13.35 | 19.10 | |||||||||
Efficiency Ratio (1) | 58.46 | 52.76 | |||||||||
Dividend Payout Ratio | 28.11 | 18.52 | |||||||||
Common Equity Ratio | 7.59 | 9.22 | |||||||||
Tangible Common Equity Ratio(1) | 6.18 | 7.86 | |||||||||
Book Value per Share | $ | 31.26 | $ | 33.22 | |||||||
Tangible Book Value per Share(1) | 25.10 | 27.90 | |||||||||
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents. | |||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | $ | 3,286,083 | $ | 65,173 | 4.00 | % | $ | 3,413,069 | $ | 72,328 | 4.27 | % | |||||||||||||||||||||||
Taxable investment securities | 1,879,773 | 17,699 | 1.90 | 1,436,522 | 11,576 | 1.63 | |||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | 444,936 | 5,973 | 2.71 | 469,507 | 6,399 | 2.75 | |||||||||||||||||||||||||||||
Total securities held for investment (2) | 2,324,709 | 23,672 | 2.05 | 1,906,029 | 17,975 | 1.90 | |||||||||||||||||||||||||||||
Other | 42,983 | 68 | 0.32 | 42,404 | 33 | 0.16 | |||||||||||||||||||||||||||||
Total interest-earning assets (2) | $ | 5,653,775 | $ | 88,913 | 3.17 | % | $ | 5,361,502 | $ | 90,336 | 3.40 | % | |||||||||||||||||||||||
Other assets | 343,456 | 325,434 | |||||||||||||||||||||||||||||||||
Total assets | $ | 5,997,231 | $ | 5,686,936 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest checking deposits | $ | 1,601,093 | $ | 2,250 | 0.28 | % | $ | 1,410,094 | $ | 2,086 | 0.30 | % | |||||||||||||||||||||||
Money market deposits | 978,801 | 1,070 | 0.22 | 927,660 | 980 | 0.21 | |||||||||||||||||||||||||||||
Savings deposits | 652,134 | 566 | 0.18 | 574,602 | 610 | 0.21 | |||||||||||||||||||||||||||||
Time deposits | 859,938 | 2,197 | 0.52 | 866,976 | 3,341 | 0.78 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 4,091,966 | 6,083 | 0.30 | 3,779,332 | 7,017 | 0.37 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 156,747 | 207 | 0.27 | 172,592 | 217 | 0.25 | |||||||||||||||||||||||||||||
Other short-term borrowings | 22,551 | 141 | 1.26 | 24,370 | 72 | 0.60 | |||||||||||||||||||||||||||||
Total short-term borrowings | 179,298 | 348 | 0.39 | 196,962 | 289 | 0.30 | |||||||||||||||||||||||||||||
Long-term debt | 142,426 | 3,089 | 4.37 | 197,762 | 3,563 | 3.63 | |||||||||||||||||||||||||||||
Total borrowed funds | 321,724 | 3,437 | 2.15 | 394,724 | 3,852 | 1.97 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 4,413,690 | $ | 9,520 | 0.43 | % | $ | 4,174,056 | $ | 10,869 | 0.53 | % | |||||||||||||||||||||||
Noninterest bearing deposits | 1,021,402 | 946,112 | |||||||||||||||||||||||||||||||||
Other liabilities | 50,054 | 47,008 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 512,085 | 519,760 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 5,997,231 | $ | 5,686,936 | |||||||||||||||||||||||||||||||
Net interest income (2) | $ | 79,393 | $ | 79,467 | |||||||||||||||||||||||||||||||
Net interest spread(2) | 2.74 | % | 2.87 | % | |||||||||||||||||||||||||||||||
Net interest margin (2) | 2.83 | % | 2.99 | % | |||||||||||||||||||||||||||||||
Total deposits(5) | $ | 5,113,368 | $ | 6,083 | 0.24 | % | $ | 4,725,444 | $ | 7,017 | 0.30 | % | |||||||||||||||||||||||
Cost of funds(6) | 0.35 | % | 0.43 | % | |||||||||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | $ | 4,003,717 | $ | 50,439 | 5.05 | % | $ | 3,326,269 | $ | 33,315 | 4.02 | % | |||||||||||||||||||||||
Taxable investment securities | 1,698,003 | 9,736 | 2.30 | 1,923,155 | 9,576 | 2.00 | |||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | 345,934 | 2,253 | 2.61 | 439,385 | 2,975 | 2.72 | |||||||||||||||||||||||||||||
Total securities held for investment (2) | 2,043,937 | 11,989 | 2.35 | 2,362,540 | 12,551 | 2.13 | |||||||||||||||||||||||||||||
Other | 9,078 | 68 | 3.00 | 30,016 | 40 | 0.53 | |||||||||||||||||||||||||||||
Total interest earning assets (2) | $ | 6,056,732 | $ | 62,496 | 4.14 | % | $ | 5,718,825 | $ | 45,906 | 3.22 | % | |||||||||||||||||||||||
Other assets | 409,078 | 360,125 | |||||||||||||||||||||||||||||||||
Total assets | $ | 6,465,810 | $ | 6,078,950 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest checking deposits | $ | 1,420,741 | $ | 1,971 | 0.56 | % | $ | 1,641,337 | $ | 1,189 | 0.29 | % | |||||||||||||||||||||||
Money market deposits | 999,436 | 5,299 | 2.13 | 1,003,386 | 571 | 0.23 | |||||||||||||||||||||||||||||
Savings deposits | 603,905 | 288 | 0.19 | 662,449 | 287 | 0.17 | |||||||||||||||||||||||||||||
Time deposits | 1,490,332 | 12,559 | 3.38 | 836,143 | 1,126 | 0.54 | |||||||||||||||||||||||||||||
Total interest bearing deposits | 4,514,414 | 20,117 | 1.79 | 4,143,315 | 3,173 | 0.31 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 159,583 | 423 | 1.06 | 154,107 | 111 | 0.29 | |||||||||||||||||||||||||||||
Other short-term borrowings | 132,495 | 1,695 | 5.13 | 41,859 | 118 | 1.13 | |||||||||||||||||||||||||||||
Total short-term borrowings | 292,078 | 2,118 | 2.91 | 195,966 | 229 | 0.47 | |||||||||||||||||||||||||||||
Long-term debt | 135,329 | 2,153 | 6.38 | 144,440 | 1,602 | 4.45 | |||||||||||||||||||||||||||||
Total borrowed funds | 427,407 | 4,271 | 4.01 | 340,406 | 1,831 | 2.16 | |||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 4,941,821 | $ | 24,388 | 1.98 | % | $ | 4,483,721 | $ | 5,004 | 0.45 | % | |||||||||||||||||||||||
Noninterest bearing deposits | 940,103 | 1,038,612 | |||||||||||||||||||||||||||||||||
Other liabilities | 78,898 | 57,157 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 504,988 | 499,460 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,465,810 | $ | 6,078,950 | |||||||||||||||||||||||||||||||
Net interest income (2) | $ | 38,108 | $ | 40,902 | |||||||||||||||||||||||||||||||
Net interest spread(2) | 2.16 | % | 2.77 | % | |||||||||||||||||||||||||||||||
Net interest margin(2) | 2.52 | % | 2.87 | % | |||||||||||||||||||||||||||||||
Total deposits(5) | $ | 5,454,517 | $ | 20,117 | 1.48 | % | $ | 5,181,927 | $ | 3,173 | 0.25 | % | |||||||||||||||||||||||
Cost of funds(6) | 1.66 | % | 0.36 | % | |||||||||||||||||||||||||||||||
(1) | Average balance includes nonaccrual loans. | ||||
(2) | Tax equivalent. The federal statutory tax rate utilized was 21%. | ||||
(3) | Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were | ||||
(4) | Interest income includes tax equivalent adjustments of | ||||
(5) | Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. | ||||
(6) | Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds. | ||||
Six Months Ended June 30, | |||||||||||||||||
2022 Compared to 2021 Change due to | |||||||||||||||||
(in thousands) | Volume | Yield/Cost | Net | ||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||
Loans, including fees (1) | $ | (2,650) | $ | (4,505) | $ | (7,155) | |||||||||||
Taxable investment securities | 3,985 | 2,138 | 6,123 | ||||||||||||||
Tax-exempt investment securities(1) | (333) | (93) | (426) | ||||||||||||||
Total securities held for investment(1) | 3,652 | 2,045 | 5,697 | ||||||||||||||
Other | — | 35 | 35 | ||||||||||||||
Change in interest income (1) | 1,002 | (2,425) | (1,423) | ||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||
Interest checking deposits | 297 | (133) | 164 | ||||||||||||||
Money market deposits | 48 | 42 | 90 | ||||||||||||||
Savings deposits | 61 | (105) | (44) | ||||||||||||||
Time deposits | (27) | (1,117) | (1,144) | ||||||||||||||
Total interest-bearing deposits | 379 | (1,313) | (934) | ||||||||||||||
Securities sold under agreements to repurchase | (24) | 14 | (10) | ||||||||||||||
Other short-term borrowings | (5) | 74 | 69 | ||||||||||||||
Total short-term borrowings | (29) | 88 | 59 | ||||||||||||||
Long-term debt | (1,114) | 640 | (474) | ||||||||||||||
Total borrowed funds | (1,143) | 728 | (415) | ||||||||||||||
Change in interest expense | (764) | (585) | (1,349) | ||||||||||||||
Change in net interest income | $ | 1,766 | $ | (1,840) | $ | (74) | |||||||||||
Percentage (decrease) increase in net interest income over prior period | (0.1) | % | |||||||||||||||
(1) Tax equivalent, using a federal statutory tax rate of 21%. |
Three Months Ended June 30, | |||||||||||||||||
2023 Compared to 2022 Change due to | |||||||||||||||||
(in thousands) | Volume | Yield/Cost | Net | ||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||
Loans, including fees (1) | $ | 7,584 | $ | 9,540 | $ | 17,124 | |||||||||||
Taxable investment securities | (1,191) | 1,351 | 160 | ||||||||||||||
Tax-exempt investment securities (1) | (607) | (115) | (722) | ||||||||||||||
Total securities held for investment (1) | (1,798) | 1,236 | (562) | ||||||||||||||
Other | (45) | 73 | 28 | ||||||||||||||
Change in interest income (1) | 5,741 | 10,849 | 16,590 | ||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||
Interest checking deposits | (180) | 962 | 782 | ||||||||||||||
Money market deposits | (2) | 4,730 | 4,728 | ||||||||||||||
Savings deposits | (28) | 29 | 1 | ||||||||||||||
Time deposits | 1,481 | 9,952 | 11,433 | ||||||||||||||
Total interest-bearing deposits | 1,271 | 15,673 | 16,944 | ||||||||||||||
Securities sold under agreements to repurchase | 4 | 308 | 312 | ||||||||||||||
Other short-term borrowings | 598 | 979 | 1,577 | ||||||||||||||
Total short-term borrowings | 602 | 1,287 | 1,889 | ||||||||||||||
Long-term debt | (106) | 657 | 551 | ||||||||||||||
Total borrowed funds | 496 | 1,944 | 2,440 | ||||||||||||||
Change in interest expense | 1,767 | 17,617 | 19,384 | ||||||||||||||
Change in net interest income | $ | 3,974 | $ | (6,768) | $ | (2,794) | |||||||||||
Percentage increase in net interest income over prior period | (6.8) | % | |||||||||||||||
(1) Tax equivalent, using a federal statutory tax rate of 21%. |
Three Months Ended June 30, | |||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | $ Change | % Change | |||||||||||||||||||
Investment services and trust activities | $ | 3,119 | $ | 2,670 | $ | 449 | 16.8 | % | |||||||||||||||
Service charges and fees | 2,047 | 1,717 | 330 | 19.2 | |||||||||||||||||||
Card revenue | 1,847 | 1,878 | (31) | (1.7) | |||||||||||||||||||
Loan revenue | 909 | 3,523 | (2,614) | (74.2) | |||||||||||||||||||
Bank-owned life insurance | 616 | 558 | 58 | 10.4 | |||||||||||||||||||
Investment securities (losses) gains, net | (2) | 395 | (397) | (100.5) | |||||||||||||||||||
Other | 210 | 1,606 | (1,396) | (86.9) | |||||||||||||||||||
Total noninterest income | $ | 8,746 | $ | 12,347 | $ | (3,601) | (29.2) | % |
Three Months Ended June 30, | |||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | $ Change | % Change | |||||||||||||||||||
Compensation and employee benefits | $ | 20,386 | $ | 18,955 | $ | 1,431 | 7.5 | % | |||||||||||||||
Occupancy expense of premises, net | 2,574 | 2,253 | 321 | 14.2 | |||||||||||||||||||
Equipment | 2,435 | 2,107 | 328 | 15.6 | |||||||||||||||||||
Legal and professional | 1,682 | 2,435 | (753) | (30.9) | |||||||||||||||||||
Data processing | 1,521 | 1,237 | 284 | 23.0 | |||||||||||||||||||
Marketing | 1,142 | 1,157 | (15) | (1.3) | |||||||||||||||||||
Amortization of intangibles | 1,594 | 1,283 | 311 | 24.2 | |||||||||||||||||||
FDIC insurance | 862 | 420 | 442 | 105.2 | |||||||||||||||||||
Communications | 260 | 266 | (6) | (2.3) | |||||||||||||||||||
Foreclosed assets, net | (6) | 4 | (10) | (250.0) | |||||||||||||||||||
Other | 2,469 | 1,965 | 504 | 25.6 | |||||||||||||||||||
Total noninterest expense | $ | 34,919 | $ | 32,082 | $ | 2,837 | 8.8 | % |
Three Months Ended June 30, | |||||||||||
Merger-related expenses: | 2023 | 2022 | |||||||||
(dollars in thousands) | |||||||||||
Compensation and employee benefits | $ | — | $ | 150 | |||||||
Occupancy expense of premises, net | — | 1 | |||||||||
Equipment | — | 6 | |||||||||
Legal and professional | — | 638 | |||||||||
Data processing | — | 38 | |||||||||
Marketing | — | 65 | |||||||||
Communications | — | 2 | |||||||||
Other | — | 1 | |||||||||
Total merger-related expenses | $ | — | $ | 901 |
As of and for the Six Months Ended June 30, | |||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | |||||||||
Net Interest Income | $ | 77,038 | $ | 77,061 | |||||||
Noninterest Income | 4,700 | 23,991 | |||||||||
Total Revenue, Net of Interest Expense | 81,738 | 101,052 | |||||||||
Credit Loss Expense | 2,530 | 3,282 | |||||||||
Noninterest Expense | 68,238 | 63,725 | |||||||||
Income Before Income Tax Expense | 10,970 | 34,045 | |||||||||
Income Tax Expense | 1,979 | 7,529 | |||||||||
Net Income | 8,991 | 26,516 | |||||||||
Diluted Earnings Per Share | $ | 0.57 | $ | 1.69 | |||||||
Return on Average Assets | 0.28 | % | 0.89 | % | |||||||
Return on Average Equity | 3.61 | 10.44 | |||||||||
Return on Average Tangible Equity(1) | 5.65 | 13.35 | |||||||||
Efficiency Ratio (1) | 66.56 | 58.46 | |||||||||
Dividend Payout Ratio | 85.09 | 28.11 | |||||||||
Common Equity Ratio | 7.69 | 7.59 | |||||||||
Tangible Common Equity Ratio(1) | 6.40 | 6.18 | |||||||||
Book Value per Share | $ | 31.96 | $ | 31.26 | |||||||
Tangible Book Value per Share(1) | 26.26 | 25.10 | |||||||||
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents. | |||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | $ | 3,935,791 | $ | 97,645 | 5.00 | % | $ | 3,286,083 | $ | 65,173 | 4.00 | % | |||||||||||||||||||||||
Taxable investment securities | 1,754,382 | 20,178 | 2.32 | 1,879,773 | 17,699 | 1.90 | |||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | 371,381 | 4,902 | 2.66 | 444,936 | 5,973 | 2.71 | |||||||||||||||||||||||||||||
Total securities held for investment (2) | 2,125,763 | 25,080 | 2.38 | 2,324,709 | 23,672 | 2.05 | |||||||||||||||||||||||||||||
Other | 16,919 | 312 | 3.72 | 42,983 | 68 | 0.32 | |||||||||||||||||||||||||||||
Total interest-earning assets (2) | $ | 6,078,473 | $ | 123,037 | 4.08 | % | $ | 5,653,775 | $ | 88,913 | 3.17 | % | |||||||||||||||||||||||
Other assets | 416,304 | 343,456 | |||||||||||||||||||||||||||||||||
Total assets | $ | 6,494,777 | $ | 5,997,231 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest checking deposits | $ | 1,468,030 | $ | 3,820 | 0.52 | % | $ | 1,601,093 | $ | 2,250 | 0.28 | % | |||||||||||||||||||||||
Money market deposits | 965,180 | 8,568 | 1.79 | 978,801 | 1,070 | 0.22 | |||||||||||||||||||||||||||||
Savings deposits | 628,338 | 560 | 0.18 | 652,134 | 566 | 0.18 | |||||||||||||||||||||||||||||
Time deposits | 1,454,210 | 22,488 | 3.12 | 859,938 | 2,197 | 0.52 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 4,515,758 | 35,436 | 1.58 | 4,091,966 | 6,083 | 0.30 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 152,734 | 873 | 1.15 | 156,747 | 207 | 0.27 | |||||||||||||||||||||||||||||
Other short-term borrowings | 121,959 | 3,031 | 5.01 | 22,551 | 141 | 1.26 | |||||||||||||||||||||||||||||
Total short-term borrowings | 274,693 | 3,904 | 2.87 | 179,298 | 348 | 0.39 | |||||||||||||||||||||||||||||
Long-term debt | 137,258 | 4,277 | 6.28 | 142,426 | 3,089 | 4.37 | |||||||||||||||||||||||||||||
Total borrowed funds | 411,951 | 8,181 | 4.00 | 321,724 | 3,437 | 2.15 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 4,927,709 | $ | 43,617 | 1.78 | % | $ | 4,413,690 | $ | 9,520 | 0.43 | % | |||||||||||||||||||||||
Noninterest bearing deposits | 984,592 | 1,021,402 | |||||||||||||||||||||||||||||||||
Other liabilities | 80,690 | 50,054 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 501,786 | 512,085 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,494,777 | $ | 5,997,231 | |||||||||||||||||||||||||||||||
Net interest income (2) | $ | 79,420 | $ | 79,393 | |||||||||||||||||||||||||||||||
Net interest spread(2) | 2.30 | % | 2.74 | % | |||||||||||||||||||||||||||||||
Net interest margin (2) | 2.63 | % | 2.83 | % | |||||||||||||||||||||||||||||||
Total deposits(5) | $ | 5,500,350 | $ | 35,436 | 1.30 | % | $ | 5,113,368 | $ | 6,083 | 0.24 | % | |||||||||||||||||||||||
Cost of funds(6) | 1.49 | % | 0.35 | % | |||||||||||||||||||||||||||||||
(1) | Average balance includes nonaccrual loans. | ||||
(2) | Tax equivalent. The federal statutory tax rate utilized was 21%. | ||||
(3) | Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $0.2 million and $0.6 million for the six-months ended June 30, 2023 and June 30, 2022, respectively. Loan purchase discount accretion was $2.2 million and $1.3 million for the six-months ended June 30, 2023 and June 30, 2022, respectively. Tax equivalent adjustments were $1.4 million and $1.1 million for the six-months ended June 30, 2023 and June 30, 2022, respectively. The federal statutory tax rate utilized was 21%. | ||||
(4) | Interest income includes tax equivalent adjustments of $1.0 million and $1.2 million for the six-months ended June 30, 2023 and June 30, 2022, respectively. The federal statutory tax rate utilized was 21%. | ||||
(5) | Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. | ||||
(6) | Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds. | ||||
Six Months Ended June 30, | |||||||||||||||||
2023 Compared to 2022 Change due to | |||||||||||||||||
(in thousands) | Volume | Yield/Cost | Net | ||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||
Loans, including fees (1) | $ | 14,340 | $ | 18,132 | $ | 32,472 | |||||||||||
Taxable investment securities | (1,240) | 3,719 | 2,479 | ||||||||||||||
Tax-exempt investment securities(1) | (964) | (107) | (1,071) | ||||||||||||||
Total securities held for investment(1) | (2,204) | 3,612 | 1,408 | ||||||||||||||
Other | (65) | 309 | 244 | ||||||||||||||
Change in interest income (1) | 12,071 | 22,053 | 34,124 | ||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||
Interest checking deposits | (198) | 1,768 | 1,570 | ||||||||||||||
Money market deposits | (15) | 7,513 | 7,498 | ||||||||||||||
Savings deposits | (6) | — | (6) | ||||||||||||||
Time deposits | 2,463 | 17,828 | 20,291 | ||||||||||||||
Total interest-bearing deposits | 2,244 | 27,109 | 29,353 | ||||||||||||||
Securities sold under agreements to repurchase | (5) | 671 | 666 | ||||||||||||||
Other short-term borrowings | 1,726 | 1,164 | 2,890 | ||||||||||||||
Total short-term borrowings | 1,721 | 1,835 | 3,556 | ||||||||||||||
Long-term debt | (116) | 1,304 | 1,188 | ||||||||||||||
Total borrowed funds | 1,605 | 3,139 | 4,744 | ||||||||||||||
Change in interest expense | 3,849 | 30,248 | 34,097 | ||||||||||||||
Change in net interest income | $ | 8,222 | $ | (8,195) | $ | 27 | |||||||||||
Percentage (decrease) increase in net interest income over prior period | — | % | |||||||||||||||
(1) Tax equivalent, using a federal statutory tax rate of 21%. |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | 2022 | 2021 | $ Change | % Change | (dollars in thousands) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||
Investment services and trust activities | Investment services and trust activities | $ | 5,681 | $ | 5,645 | $ | 36 | 0.6 | % | Investment services and trust activities | $ | 6,052 | $ | 5,681 | $ | 371 | 6.5 | % | ||||||||||||||||||||||||||||
Service charges and fees | Service charges and fees | 3,374 | 2,962 | 412 | 13.9 | Service charges and fees | 4,055 | 3,374 | 681 | 20.2 | ||||||||||||||||||||||||||||||||||||
Card revenue | Card revenue | 3,528 | 3,449 | 79 | 2.3 | Card revenue | 3,595 | 3,528 | 67 | 1.9 | ||||||||||||||||||||||||||||||||||||
Loan revenue | Loan revenue | 7,816 | 7,881 | (65) | (0.8) | Loan revenue | 2,329 | 7,816 | (5,487) | (70.2) | ||||||||||||||||||||||||||||||||||||
Bank-owned life insurance | Bank-owned life insurance | 1,089 | 1,080 | 9 | 0.8 | Bank-owned life insurance | 1,218 | 1,089 | 129 | 11.8 | ||||||||||||||||||||||||||||||||||||
Investment securities gains, net | 435 | 69 | 366 | 530.4 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities (losses) gains, net | Investment securities (losses) gains, net | (13,172) | 435 | (13,607) | (3,128.0) | |||||||||||||||||||||||||||||||||||||||||
Other | Other | 2,068 | 956 | 1,112 | 116.3 | Other | 623 | 2,068 | (1,445) | (69.9) | ||||||||||||||||||||||||||||||||||||
Total noninterest income | Total noninterest income | $ | 23,991 | $ | 22,042 | $ | 1,949 | 8.8 | % | Total noninterest income | $ | 4,700 | $ | 23,991 | $ | (19,291) | (80.4) | % |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | 2022 | 2021 | $ Change | % Change | (dollars in thousands) | 2023 | 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | Compensation and employee benefits | $ | 37,619 | $ | 34,321 | $ | 3,298 | 9.6 | % | Compensation and employee benefits | $ | 39,993 | $ | 37,619 | $ | 2,374 | 6.3 | % | ||||||||||||||||||||||||||||
Occupancy expense of premises, net | Occupancy expense of premises, net | 5,032 | 4,516 | 516 | 11.4 | Occupancy expense of premises, net | 5,320 | 5,032 | 288 | 5.7 | ||||||||||||||||||||||||||||||||||||
Equipment | Equipment | 4,008 | 3,654 | 354 | 9.7 | Equipment | 4,606 | 4,008 | 598 | 14.9 | ||||||||||||||||||||||||||||||||||||
Legal and professional | Legal and professional | 4,788 | 2,158 | 2,630 | 121.9 | Legal and professional | 3,418 | 4,788 | (1,370) | (28.6) | ||||||||||||||||||||||||||||||||||||
Data processing | Data processing | 2,468 | 2,599 | (131) | (5.0) | Data processing | 2,884 | 2,468 | 416 | 16.9 | ||||||||||||||||||||||||||||||||||||
Marketing | Marketing | 2,186 | 1,879 | 307 | 16.3 | Marketing | 2,128 | 2,186 | (58) | (2.7) | ||||||||||||||||||||||||||||||||||||
Amortization of intangibles | Amortization of intangibles | 2,510 | 2,848 | (338) | (11.9) | Amortization of intangibles | 3,346 | 2,510 | 836 | 33.3 | ||||||||||||||||||||||||||||||||||||
FDIC insurance | FDIC insurance | 840 | 757 | 83 | 11.0 | FDIC insurance | 1,611 | 840 | 771 | 91.8 | ||||||||||||||||||||||||||||||||||||
Communications | Communications | 538 | 780 | (242) | (31.0) | Communications | 521 | 538 | (17) | (3.2) | ||||||||||||||||||||||||||||||||||||
Foreclosed assets, net | Foreclosed assets, net | (108) | 183 | (291) | (159.0) | Foreclosed assets, net | (34) | (108) | 74 | (68.5) | ||||||||||||||||||||||||||||||||||||
Other | Other | 3,844 | 2,675 | 1,169 | 43.7 | Other | 4,445 | 3,844 | 601 | 15.6 | ||||||||||||||||||||||||||||||||||||
Total noninterest expense | Total noninterest expense | $ | 63,725 | $ | 56,370 | $ | 7,355 | 13.0 | % | Total noninterest expense | $ | 68,238 | $ | 63,725 | $ | 4,513 | 7.1 | % |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
Merger-related expenses: | Merger-related expenses: | 2022 | 2021 | Merger-related expenses: | 2023 | 2022 | ||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||
Compensation and employee benefits | Compensation and employee benefits | $ | 150 | $ | — | Compensation and employee benefits | $ | 70 | $ | 150 | ||||||||||||
Occupancy expense of premises, net | Occupancy expense of premises, net | 1 | — | Occupancy expense of premises, net | — | 1 | ||||||||||||||||
Equipment | Equipment | 11 | — | Equipment | — | 11 | ||||||||||||||||
Legal and professional | Legal and professional | 701 | — | Legal and professional | — | 701 | ||||||||||||||||
Data processing | Data processing | 76 | — | Data processing | 65 | 76 | ||||||||||||||||
Marketing | Marketing | 72 | — | Marketing | — | 72 | ||||||||||||||||
Communications | Communications | 3 | — | Communications | — | 3 | ||||||||||||||||
Other | Other | 15 | — | Other | 1 | 15 | ||||||||||||||||
Total impact of merger-related expenses to noninterest expense | Total impact of merger-related expenses to noninterest expense | $ | 1,029 | $ | — | Total impact of merger-related expenses to noninterest expense | $ | 136 | $ | 1,029 |
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | December 31, 2021 | $ Change | % Change | (dollars in thousands) | June 30, 2023 | December 31, 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 83,864 | $ | 203,830 | $ | (119,966) | (58.9) | % | Cash and cash equivalents | $ | 144,558 | $ | 86,435 | $ | 58,123 | 67.2 | % | ||||||||||||||||||||||||||||||||||
Loans held for sale | Loans held for sale | 4,991 | 12,917 | (7,926) | (61.4) | Loans held for sale | 2,821 | 612 | 2,209 | 360.9 | ||||||||||||||||||||||||||||||||||||||||||
Debt securities available for sale at fair value | Debt securities available for sale at fair value | 1,234,789 | 2,288,110 | (1,053,321) | (46.0) | Debt securities available for sale at fair value | 903,520 | 1,153,547 | (250,027) | (21.7) | ||||||||||||||||||||||||||||||||||||||||||
Held to maturity securities at amortized cost | Held to maturity securities at amortized cost | 1,168,042 | — | 1,168,042 | nm(1) | Held to maturity securities at amortized cost | 1,099,569 | 1,129,421 | (29,852) | (2.6) | ||||||||||||||||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | Loans held for investment, net of unearned income | 3,611,152 | 3,245,012 | 366,140 | 11.3 | Loans held for investment, net of unearned income | 4,018,649 | 3,840,524 | 178,125 | 4.6 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | Allowance for credit losses | (52,350) | (48,700) | (3,650) | 7.5 | Allowance for credit losses | (50,400) | (49,200) | (1,200) | 2.4 | ||||||||||||||||||||||||||||||||||||||||||
Total loans held for investment, net | Total loans held for investment, net | 3,558,802 | 3,196,312 | 362,490 | 11.3 | Total loans held for investment, net | 3,968,249 | 3,791,324 | 176,925 | 4.7 | ||||||||||||||||||||||||||||||||||||||||||
Other assets | Other assets | 392,003 | 323,959 | 68,044 | 21.0 | Other assets | 402,772 | 416,537 | (13,765) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 6,442,491 | $ | 6,025,128 | $ | 417,363 | 6.9 | % | Total assets | $ | 6,521,489 | $ | 6,577,876 | $ | (56,387) | (0.9) | % | ||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | Total deposits | $ | 5,537,441 | $ | 5,114,519 | $ | 422,922 | 8.3 | % | Total deposits | $ | 5,445,447 | $ | 5,468,942 | $ | (23,495) | (0.4) | % | ||||||||||||||||||||||||||||||||||
Total borrowings | Total borrowings | 353,062 | 336,247 | 16,815 | 5.0 | Total borrowings | 487,806 | 531,083 | (43,277) | (8.1) | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | Other liabilities | 63,156 | 46,887 | 16,269 | 34.7 | Other liabilities | 86,895 | 85,058 | 1,837 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||
Total shareholders' equity | Total shareholders' equity | 488,832 | 527,475 | (38,643) | (7.3) | Total shareholders' equity | 501,341 | 492,793 | 8,548 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | Total liabilities and shareholders' equity | $ | 6,442,491 | $ | 6,025,128 | $ | 417,363 | 6.9 | % | Total liabilities and shareholders' equity | $ | 6,521,489 | $ | 6,577,876 | $ | (56,387) | (0.9) | % | ||||||||||||||||||||||||||||||||||
(1) Percentage change is not meaningful. |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Available for Sale | |||||||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,904 | 0.6 | % | $ | 266 | — | % | |||||||||||||||
States and political subdivisions | 315,911 | 25.6 | 765,742 | 33.5 | |||||||||||||||||||
Mortgage-backed securities | 6,539 | 0.5 | 100,626 | 4.4 | |||||||||||||||||||
Collateralized mortgage obligations | 165,375 | 13.4 | 768,899 | 33.6 | |||||||||||||||||||
Corporate debt securities | 739,060 | 59.9 | 652,577 | 28.5 | |||||||||||||||||||
Fair value of debt securities available for sale | $ | 1,234,789 | 100.0 | % | $ | 2,288,110 | 100.0 | % | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
States and political subdivisions | $ | 540,708 | 46.3 | $ | — | — | % | ||||||||||||||||
Mortgage-backed securities | 84,912 | 7.3 | — | — | % | ||||||||||||||||||
Collateralized mortgage obligations | 542,422 | 46.4 | — | — | % | ||||||||||||||||||
Amortized cost of debt securities held to maturity | $ | 1,168,042 | 100.0 | % | $ | — | — | % |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Available for Sale | |||||||||||||||||||||||
U.S. Government agencies and corporations | $ | — | — | % | $ | 7,345 | 0.6 | % | |||||||||||||||
States and political subdivisions | 173,716 | 19.2 | 285,356 | 24.7 | |||||||||||||||||||
Mortgage-backed securities | 5,457 | 0.6 | 5,944 | 0.5 | |||||||||||||||||||
Collateralized loan obligations | 53,496 | 5.9 | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 139,792 | 15.5 | 147,193 | 12.8 | |||||||||||||||||||
Corporate debt securities | 531,059 | 58.8 | 707,709 | 61.4 | |||||||||||||||||||
Fair value of debt securities available for sale | $ | 903,520 | 100.0 | % | $ | 1,153,547 | 100.0 | % | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
States and political subdivisions | $ | 533,343 | 48.5 | $ | 538,746 | 47.7 | % | ||||||||||||||||
Mortgage-backed securities | 77,921 | 7.1 | 81,032 | 7.2 | % | ||||||||||||||||||
Collateralized mortgage obligations | 488,305 | 44.4 | 509,643 | 45.1 | % | ||||||||||||||||||
Amortized cost of debt securities held to maturity | $ | 1,099,569 | 100.0 | % | $ | 1,129,421 | 100.0 | % |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Agricultural | $ | 110,263 | 3.1 | % | $ | 103,417 | 3.2 | % | |||||||||||||||
Commercial and industrial | 986,137 | 27.3 | 902,314 | 27.8 | |||||||||||||||||||
Commercial real estate | 1,859,940 | 51.5 | 1,704,541 | 52.5 | |||||||||||||||||||
Residential real estate | 578,804 | 16.0 | 466,322 | 14.4 | |||||||||||||||||||
Consumer | 76,008 | 2.1 | 68,418 | 2.1 | |||||||||||||||||||
Loans held for investment, net of unearned income | $ | 3,611,152 | 100.0 | % | $ | 3,245,012 | 100.0 | % | |||||||||||||||
Loans held for sale | $ | 4,991 | $ | 12,917 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Agricultural | $ | 106,148 | 2.6 | % | $ | 115,320 | 3.0 | % | |||||||||||||||
Commercial and industrial | 1,089,269 | 27.1 | 1,055,162 | 27.5 | |||||||||||||||||||
Commercial real estate | 2,134,619 | 53.1 | 1,980,018 | 51.6 | |||||||||||||||||||
Residential real estate | 616,851 | 15.4 | 614,428 | 15.9 | |||||||||||||||||||
Consumer | 71,762 | 1.8 | 75,596 | 2.0 | |||||||||||||||||||
Loans held for investment, net of unearned income | $ | 4,018,649 | 100.0 | % | $ | 3,840,524 | 100.0 | % | |||||||||||||||
Loans held for sale | $ | 2,821 | $ | 612 |
(in thousands) | (in thousands) | June 30, 2022 | December 31, 2021 | (in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Nonaccrual loans held for investment | Nonaccrual loans held for investment | $ | 25,978 | $ | 31,540 | Nonaccrual loans held for investment | $ | 14,196 | $ | 15,256 | ||||||||||||||||||||||||
Accruing loans contractually past due 90 days or more | Accruing loans contractually past due 90 days or more | 1,359 | — | Accruing loans contractually past due 90 days or more | 252 | 565 | ||||||||||||||||||||||||||||
Total nonperforming loans | Total nonperforming loans | 27,337 | 31,540 | Total nonperforming loans | 14,448 | 15,821 | ||||||||||||||||||||||||||||
Foreclosed assets, net | Foreclosed assets, net | 284 | 357 | Foreclosed assets, net | — | 103 | ||||||||||||||||||||||||||||
Total nonperforming assets | Total nonperforming assets | 27,621 | 31,897 | Total nonperforming assets | 14,448 | 15,924 | ||||||||||||||||||||||||||||
Nonaccrual loans ratio (1) | Nonaccrual loans ratio (1) | 0.72 | % | 0.97 | % | Nonaccrual loans ratio (1) | 0.35 | % | 0.40 | % | ||||||||||||||||||||||||
Nonperforming loans ratio (2) | Nonperforming loans ratio (2) | 0.76 | % | 0.97 | % | Nonperforming loans ratio (2) | 0.36 | % | 0.41 | % | ||||||||||||||||||||||||
Nonperforming assets ratio (3) | Nonperforming assets ratio (3) | 0.43 | % | 0.53 | % | Nonperforming assets ratio (3) | 0.22 | % | 0.24 | % | ||||||||||||||||||||||||
(1) Nonaccrual loans ratio is calculated as nonaccrual loans divided by loans held for investment, net of unearned income, at the end of the period. | (1) Nonaccrual loans ratio is calculated as nonaccrual loans divided by loans held for investment, net of unearned income, at the end of the period. | (1) Nonaccrual loans ratio is calculated as nonaccrual loans divided by loans held for investment, net of unearned income, at the end of the period. | ||||||||||||||||||||||||||||||||
(2) Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period. | (2) Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period. | (2) Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period. | ||||||||||||||||||||||||||||||||
(3) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period. | (3) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period. | (3) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period. |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Allowance for Credit Losses | % of Total | Allowance for Credit Losses | % of Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | 987 | 3.1 | % | $ | 667 | 3.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 21,166 | 27.3 | % | 17,294 | 27.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 24,399 | 51.5 | % | 26,120 | 52.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 5,174 | 16.0 | % | 4,010 | 14.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 624 | 2.1 | % | 609 | 2.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 52,350 | 100.0 | % | $ | 48,700 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses ratio(1) | 1.45 | % | 1.50 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted allowance for credit losses ratio(2) | 1.45 | % | 1.52 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses to nonaccrual loans ratio(3) | 201.52 | % | 154.41 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income at the end of the period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Non-GAAP financial measure. See the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period. |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Allowance for Credit Losses | % of Loans in Each Segment to Total Loans | Allowance for Credit Losses | % of Loans in Each Segment to Total Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | 617 | 2.6 | % | $ | 923 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 22,921 | 27.1 | % | 22,855 | 27.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 21,911 | 53.1 | % | 20,123 | 51.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 4,393 | 15.4 | % | 4,678 | 15.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 558 | 1.8 | % | 621 | 2.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 50,400 | 100.0 | % | $ | 49,200 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses ratio(1) | 1.25 | % | 1.28 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses to nonaccrual loans ratio(2) | 355.03 | % | 322.50 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income at the end of the period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period. |
For the Three Months Ended June 30, 2022 and 2021 | For the Three Months Ended June 30, 2023 and 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | (in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2023 | For the Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | $ | (1) | $ | (330) | $ | — | $ | (8) | $ | (101) | $ | (440) | Charge-offs | $ | — | $ | (189) | $ | (812) | $ | (33) | $ | (125) | $ | (1,159) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 1 | 93 | 31 | 4 | 30 | 159 | Recoveries | 1 | 195 | 6 | 16 | 44 | 262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | Net (charge-offs) recoveries | $ | — | $ | (237) | $ | 31 | $ | (4) | $ | (71) | $ | (281) | Net (charge-offs) recoveries | $ | 1 | $ | 6 | $ | (806) | $ | (17) | $ | (81) | $ | (897) | ||||||||||||||||||||||||||||||||||||||||||||
Net (charge-off) recovery ratio(1) | Net (charge-off) recovery ratio(1) | — | % | (0.03) | % | — | % | — | % | (0.01) | % | (0.03) | % | Net (charge-off) recovery ratio(1) | — | % | — | % | (0.08) | % | — | % | (0.01) | % | (0.09) | % | ||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | $ | (113) | $ | (195) | $ | (350) | $ | (71) | $ | (111) | $ | (840) | Charge-offs | $ | (1) | $ | (330) | $ | — | $ | (8) | $ | (101) | $ | (440) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 21 | 314 | 9 | 47 | 43 | 434 | Recoveries | 1 | 93 | 31 | 4 | 30 | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | Net (charge-offs) recoveries | $ | (92) | $ | 119 | $ | (341) | $ | (24) | $ | (68) | $ | (406) | Net (charge-offs) recoveries | $ | — | $ | (237) | $ | 31 | $ | (4) | $ | (71) | $ | (281) | ||||||||||||||||||||||||||||||||||||||||||||
Net (charge-off) recovery ratio(1) | Net (charge-off) recovery ratio(1) | (0.01) | % | 0.01 | % | (0.04) | % | — | % | (0.01) | % | (0.05) | % | Net (charge-off) recovery ratio(1) | — | % | (0.03) | % | — | % | — | % | (0.01) | % | (0.03) | % | ||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2022 and 2021 | For the Six Months Ended June 30, 2023 and 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | (in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2023 | For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | $ | (1) | $ | (563) | $ | (2,184) | $ | (38) | $ | (285) | $ | (3,071) | Charge-offs | $ | (1) | $ | (509) | $ | (830) | $ | (33) | $ | (273) | $ | (1,646) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 8 | 318 | 148 | 20 | 74 | 568 | Recoveries | 27 | 270 | 11 | 20 | 88 | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | Net (charge-offs) recoveries | $ | 7 | $ | (245) | $ | (2,036) | $ | (18) | $ | (211) | $ | (2,503) | Net (charge-offs) recoveries | $ | 26 | $ | (239) | $ | (819) | $ | (13) | $ | (185) | $ | (1,230) | ||||||||||||||||||||||||||||||||||||||||||||
Net (charge-off) recovery ratio(1) | Net (charge-off) recovery ratio(1) | — | % | (0.02) | % | (0.12) | % | — | % | (0.01) | % | (0.15) | % | Net (charge-off) recovery ratio(1) | — | % | (0.01) | % | (0.04) | % | — | % | (0.01) | % | (0.06) | % | ||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2022 | For the Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | $ | (154) | $ | (861) | $ | (416) | $ | (106) | $ | (306) | $ | (1,843) | Charge-offs | $ | (1) | $ | (563) | $ | (2,184) | $ | (38) | $ | (285) | $ | (3,071) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 48 | 606 | 315 | 56 | 96 | 1,121 | Recoveries | 8 | 318 | 148 | 20 | 74 | 568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | Net (charge-offs) recoveries | $ | (106) | $ | (255) | $ | (101) | $ | (50) | $ | (210) | $ | (722) | Net (charge-offs) recoveries | $ | 7 | $ | (245) | $ | (2,036) | $ | (18) | $ | (211) | $ | (2,503) | ||||||||||||||||||||||||||||||||||||||||||||
Net (charge-off) recovery ratio(1) | Net (charge-off) recovery ratio(1) | (0.01) | % | (0.02) | % | (0.01) | % | — | % | (0.01) | % | (0.04) | % | Net (charge-off) recovery ratio(1) | — | % | (0.02) | % | (0.12) | % | — | % | (0.01) | % | (0.15) | % | ||||||||||||||||||||||||||||||||||||||||||||
(1) Net (charge-off) recovery ratio is calculated as the annualized net (charge-offs) recoveries divided by average loans held for investment, net of unearned income during the period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Net (charge-off) recovery ratio is calculated as the annualized net (charge-offs) recoveries divided by average loans held for investment, net of unearned income and average loans held for sale, during the period. | (1) Net (charge-off) recovery ratio is calculated as the annualized net (charge-offs) recoveries divided by average loans held for investment, net of unearned income and average loans held for sale, during the period. |
As of June 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | Balance | % of Total | Balance | % of Total | (in thousands) | Balance | % of Total | Balance | % of Total | ||||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | Noninterest bearing deposits | $ | 1,114,825 | 20.1 | % | $ | 1,005,369 | 19.6 | % | Noninterest bearing deposits | $ | 897,923 | 16.5 | % | $ | 1,053,450 | 19.3 | % | ||||||||||||||||||||||||||||
Interest checking deposits | Interest checking deposits | 1,749,748 | 31.7 | 1,619,136 | 31.6 | Interest checking deposits | 1,397,276 | 25.7 | 1,624,278 | 29.8 | ||||||||||||||||||||||||||||||||||||
Money market deposits | Money market deposits | 1,070,912 | 19.3 | 939,523 | 18.4 | Money market deposits | 1,096,432 | 20.1 | 937,340 | 17.1 | ||||||||||||||||||||||||||||||||||||
Savings deposits | Savings deposits | 715,829 | 12.9 | 628,242 | 12.3 | Savings deposits | 585,967 | 10.8 | 664,169 | 12.1 | ||||||||||||||||||||||||||||||||||||
Total non-maturity deposits | 4,651,314 | 84.0 | 4,192,270 | 81.9 | ||||||||||||||||||||||||||||||||||||||||||
Time deposits of $250 and under | Time deposits of $250 and under | 547,427 | 9.9 | 505,392 | 9.9 | Time deposits of $250 and under | 648,586 | 11.9 | 559,466 | 10.2 | ||||||||||||||||||||||||||||||||||||
Total core deposits | Total core deposits | 4,626,184 | 85.0 | 4,838,703 | 88.5 | |||||||||||||||||||||||||||||||||||||||||
Brokered deposits | Brokered deposits | 365,623 | 6.7 | 126,767 | 2.3 | |||||||||||||||||||||||||||||||||||||||||
Time deposits of over $250 | Time deposits of over $250 | 338,700 | 6.1 | 416,857 | 8.2 | Time deposits of over $250 | 453,640 | 8.3 | 503,472 | 9.2 | ||||||||||||||||||||||||||||||||||||
Total time deposits | 886,127 | 16.0 | 922,249 | 18.1 | ||||||||||||||||||||||||||||||||||||||||||
Total non-core deposits | Total non-core deposits | 819,263 | 15.0 | 630,239 | 11.5 | |||||||||||||||||||||||||||||||||||||||||
Total deposits | Total deposits | $ | 5,537,441 | 100.0 | % | $ | 5,114,519 | 100.0 | % | Total deposits | $ | 5,445,447 | 100.0 | % | $ | 5,468,942 | 100.0 | % |
(dollars in thousands) | (dollars in thousands) | June 30, 2022 | December 31, 2021 | (dollars in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 151,894 | $ | 181,368 | Securities sold under agreements to repurchase | $ | 92,054 | $ | 156,373 | ||||||||||||
Federal home loan bank advances | 42,000 | — | ||||||||||||||||||||
Federal Home Loan Bank advances | Federal Home Loan Bank advances | 45,000 | 235,500 | |||||||||||||||||||
Federal Reserve Bank borrowings | Federal Reserve Bank borrowings | 225,000 | — | |||||||||||||||||||
Total short-term borrowings | Total short-term borrowings | $ | 193,894 | $ | 181,368 | Total short-term borrowings | $ | 362,054 | $ | 391,873 | ||||||||||||
Junior subordinated notes issued to capital trusts | Junior subordinated notes issued to capital trusts | 42,028 | 41,940 | Junior subordinated notes issued to capital trusts | 42,205 | 42,116 | ||||||||||||||||
Subordinated debentures | Subordinated debentures | 63,941 | 63,875 | Subordinated debentures | 64,072 | 64,006 | ||||||||||||||||
Finance lease payable | Finance lease payable | 872 | 951 | Finance lease payable | 698 | 787 | ||||||||||||||||
Federal home loan bank borrowings | 27,327 | 48,113 | ||||||||||||||||||||
Federal Home Loan Bank borrowings | Federal Home Loan Bank borrowings | 6,277 | 17,301 | |||||||||||||||||||
Other long-term debt | Other long-term debt | 25,000 | — | Other long-term debt | 12,500 | 15,000 | ||||||||||||||||
Total long-term debt | Total long-term debt | $ | 159,168 | $ | 154,879 | Total long-term debt | $ | 125,752 | $ | 139,210 |
June 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Total shareholders’ equity to total assets ratio | Total shareholders’ equity to total assets ratio | 7.59 | % | 8.75 | % | Total shareholders’ equity to total assets ratio | 7.69 | % | 7.49 | % | ||||||||||||||||||
Tangible common equity ratio(1) | Tangible common equity ratio(1) | 6.18 | % | 7.49 | % | Tangible common equity ratio(1) | 6.40 | % | 6.17 | % | ||||||||||||||||||
Total risk-based capital ratio | Total risk-based capital ratio | 11.73 | % | 13.09 | % | Total risk-based capital ratio | 12.26 | % | 12.07 | % | ||||||||||||||||||
Tier 1 risk-based capital ratio | Tier 1 risk-based capital ratio | 9.61 | % | 10.83 | % | Tier 1 risk-based capital ratio | 10.15 | % | 10.05 | % | ||||||||||||||||||
Common equity tier 1 risk-based capital ratio | Common equity tier 1 risk-based capital ratio | 8.82 | % | 9.94 | % | Common equity tier 1 risk-based capital ratio | 9.36 | % | 9.28 | % | ||||||||||||||||||
Tier 1 leverage ratio | Tier 1 leverage ratio | 8.51 | % | 8.67 | % | Tier 1 leverage ratio | 8.47 | % | 8.35 | % | ||||||||||||||||||
Book value per share | Book value per share | $ | 31.26 | $ | 33.66 | Book value per share | $ | 31.96 | $ | 31.54 | ||||||||||||||||||
Tangible book value per share(1) | Tangible book value per share(1) | $ | 25.10 | $ | 28.40 | Tangible book value per share(1) | $ | 26.26 | $ | 25.60 | ||||||||||||||||||
(1)A non-GAAP financial measure - see the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent. | (1)A non-GAAP financial measure - see the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent. | (1)A non-GAAP financial measure - see the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent. |
(dollars in thousands) | (dollars in thousands) | As of June 30, 2022 | As of December 31, 2021 | (dollars in thousands) | As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||
Cash and due from banks | Cash and due from banks | $ | 60,622 | $ | 42,949 | Cash and due from banks | $ | 75,955 | $ | 83,990 | ||||||||||||
Interest-bearing deposits | Interest-bearing deposits | 23,242 | 160,881 | Interest-bearing deposits | 68,603 | 2,445 | ||||||||||||||||
Total | Total | $ | 83,864 | $ | 203,830 | Total | $ | 144,558 | $ | 86,435 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Return on Average Tangible Equity | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Net income | $ | 12,621 | $ | 17,271 | $ | 26,516 | $ | 38,919 | ||||||||||||||||||
Intangible amortization, net of tax (1) | 962 | 1,006 | 1,883 | 2,136 | ||||||||||||||||||||||
Tangible net income | $ | 13,583 | $ | 18,277 | $ | 28,399 | $ | 41,055 | ||||||||||||||||||
Average shareholders' equity | $ | 499,460 | $ | 523,242 | $ | 512,085 | $ | 519,760 | ||||||||||||||||||
Average intangible assets, net | (84,540) | (85,518) | (83,159) | (86,235) | ||||||||||||||||||||||
Average tangible equity | $ | 414,920 | $ | 437,724 | $ | 428,926 | $ | 433,525 | ||||||||||||||||||
Return on average equity | 10.14 | % | 13.24 | % | 10.44 | % | 15.10 | % | ||||||||||||||||||
Return on average tangible equity (2) | 13.13 | % | 16.75 | % | 13.35 | % | 19.10 | % | ||||||||||||||||||
(1) Computed assuming a combined marginal income tax rate of 25%. | ||||||||||||||||||||||||||
(2) Annualized tangible net income divided by average tangible equity. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Return on Average Tangible Equity | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Net income | $ | 7,594 | $ | 12,621 | $ | 8,991 | $ | 26,516 | ||||||||||||||||||
Intangible amortization, net of tax (1) | 1,196 | 962 | 2,510 | 1,883 | ||||||||||||||||||||||
Tangible net income | $ | 8,790 | $ | 13,583 | $ | 11,501 | $ | 28,399 | ||||||||||||||||||
Average shareholders' equity | $ | 504,988 | $ | 499,460 | $ | 501,786 | $ | 512,085 | ||||||||||||||||||
Average intangible assets, net | (90,258) | (84,540) | (91,125) | (83,159) | ||||||||||||||||||||||
Average tangible equity | $ | 414,730 | $ | 414,920 | $ | 410,661 | $ | 428,926 | ||||||||||||||||||
Return on average equity | 6.03 | % | 10.14 | % | 3.61 | % | 10.44 | % | ||||||||||||||||||
Return on average tangible equity (2) | 8.50 | % | 13.13 | % | 5.65 | % | 13.35 | % | ||||||||||||||||||
(1) Computed assuming a combined marginal income tax rate of 25%. | ||||||||||||||||||||||||||
(2) Annualized tangible net income divided by average tangible equity. |
Tangible Common Equity/Tangible Book Value per Share / Tangible Common Equity Ratio | June 30, 2023 | December 31, 2022 | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Total shareholders’ equity | $ | 501,341 | $ | 492,793 | ||||||||||
Intangible assets, net | (89,446) | (92,792) | ||||||||||||
Tangible common equity | $ | 411,895 | $ | 400,001 | ||||||||||
Total assets | $ | 6,521,489 | $ | 6,577,876 | ||||||||||
Intangible assets, net | (89,446) | (92,792) | ||||||||||||
Tangible assets | $ | 6,432,043 | $ | 6,485,084 | ||||||||||
Book value per share | $ | 31.96 | $ | 31.54 | ||||||||||
Tangible book value per share (1) | $ | 26.26 | $ | 25.60 | ||||||||||
Shares outstanding | 15,685,123 | 15,623,977 | ||||||||||||
Equity to assets ratio | 7.69 | % | 7.49 | % | ||||||||||
Tangible common equity ratio (2) | 6.40 | % | 6.17 | % | ||||||||||
(1) Tangible common equity divided by shares outstanding. | ||||||||||||||
(2) Tangible common equity divided by tangible assets. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Efficiency Ratio | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Total noninterest expense | $ | 34,919 | $ | 32,082 | $ | 68,238 | $ | 63,725 | ||||||||||||||||||
Amortization of intangibles | (1,594) | (1,283) | (3,346) | (2,510) | ||||||||||||||||||||||
Merger-related expenses | — | (901) | (136) | (1,029) | ||||||||||||||||||||||
Noninterest expense used for efficiency ratio | $ | 33,325 | $ | 29,898 | $ | 64,756 | $ | 60,186 | ||||||||||||||||||
Net interest income, tax equivalent(1) | $ | 38,108 | $ | 40,902 | $ | 79,420 | $ | 79,393 | ||||||||||||||||||
Noninterest income | 8,746 | 12,347 | 4,700 | 23,991 | ||||||||||||||||||||||
Investment security losses (gains), net | 2 | (395) | 13,172 | (435) | ||||||||||||||||||||||
Net revenues used for efficiency ratio | $ | 46,856 | $ | 52,854 | $ | 97,292 | $ | 102,949 | ||||||||||||||||||
Efficiency ratio(2) | 71.12 | % | 56.57 | % | 66.56 | % | 58.46 | % | ||||||||||||||||||
(1) The federal statutory tax rate utilized was 21%. | ||||||||||||||||||||||||||
(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains. |
Tangible Common Equity/Tangible Book Value per Share / Tangible Common Equity Ratio | June 30, 2022 | December 31, 2021 | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Total shareholders’ equity | $ | 488,832 | $ | 527,475 | ||||||||||
Intangible assets, net | (96,351) | (82,362) | ||||||||||||
Tangible common equity | $ | 392,481 | $ | 445,113 | ||||||||||
Total assets | $ | 6,442,491 | $ | 6,025,128 | ||||||||||
Intangible assets, net | (96,351) | (82,362) | ||||||||||||
Tangible assets | $ | 6,346,140 | $ | 5,942,766 | ||||||||||
Book value per share | $ | 31.26 | $ | 33.66 | ||||||||||
Tangible book value per share (1) | $ | 25.10 | $ | 28.40 | ||||||||||
Shares outstanding | 15,635,131 | 15,671,147 | ||||||||||||
Equity to assets ratio | 7.59 | % | 8.75 | % | ||||||||||
Tangible common equity ratio (2) | 6.18 | % | 7.49 | % | ||||||||||
(1) Tangible common equity divided by shares outstanding. | ||||||||||||||
(2) Tangible common equity divided by tangible assets. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Net Interest Margin, Tax Equivalent/Core Net Interest Margin | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Net interest income | $ | 39,725 | $ | 38,505 | $ | 77,061 | $ | 77,122 | ||||||||||||||||||
Tax equivalent adjustments: | ||||||||||||||||||||||||||
Loans (1) | 569 | 519 | 1,109 | 1,050 | ||||||||||||||||||||||
Securities (1) | 608 | 647 | 1,223 | 1,295 | ||||||||||||||||||||||
Net interest income, tax equivalent | $ | 40,902 | $ | 39,671 | $ | 79,393 | $ | 79,467 | ||||||||||||||||||
Loan purchase discount accretion | (528) | (873) | (1,260) | (1,971) | ||||||||||||||||||||||
Core net interest income | $ | 40,374 | $ | 38,798 | $ | 78,133 | $ | 77,496 | ||||||||||||||||||
Net interest margin | 2.79 | % | 2.80 | % | 2.75 | % | 2.90 | % | ||||||||||||||||||
Net interest margin, tax equivalent (2) | 2.87 | % | 2.88 | % | 2.83 | % | 2.99 | % | ||||||||||||||||||
Core net interest margin (3) | 2.83 | % | 2.82 | % | 2.79 | % | 2.91 | % | ||||||||||||||||||
Average interest earning assets | $ | 5,718,825 | $ | 5,522,427 | $ | 5,653,775 | $ | 5,361,502 | ||||||||||||||||||
(1) The federal statutory tax rate utilized was 21%. | ||||||||||||||||||||||||||
(2) Annualized tax equivalent net interest income divided by average interest earning assets. | ||||||||||||||||||||||||||
(3) Annualized core net interest income divided by average interest earning assets. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Efficiency Ratio | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Total noninterest expense | $ | 32,082 | $ | 28,670 | $ | 63,725 | $ | 56,370 | ||||||||||||||||||
Amortization of intangibles | (1,283) | (1,341) | (2,510) | (2,848) | ||||||||||||||||||||||
Merger-related expenses | (901) | — | (1,029) | — | ||||||||||||||||||||||
Noninterest expense used for efficiency ratio | $ | 29,898 | $ | 27,329 | $ | 60,186 | $ | 53,522 | ||||||||||||||||||
Net interest income, tax equivalent(1) | $ | 40,902 | $ | 39,671 | $ | 79,393 | $ | 79,467 | ||||||||||||||||||
Noninterest income | 12,347 | 10,218 | 23,991 | 22,042 | ||||||||||||||||||||||
Investment security gains, net | (395) | (42) | (435) | (69) | ||||||||||||||||||||||
Net revenues used for efficiency ratio | $ | 52,854 | $ | 49,847 | $ | 102,949 | $ | 101,440 | ||||||||||||||||||
Efficiency ratio(2) | 56.57 | % | 54.83 | % | 58.46 | % | 52.76 | % | ||||||||||||||||||
(1) The federal statutory tax rate utilized was 21%. | ||||||||||||||||||||||||||
(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains. |
Adjusted Allowance for Credit Losses Ratio | June 30, 2022 | December 31, 2021 | ||||||||||||
(dollars in thousands) | ||||||||||||||
Loans held for investment, net of unearned income | $ | 3,611,152 | $ | 3,245,012 | ||||||||||
PPP loans | (402) | (30,841) | ||||||||||||
Core loans | $ | 3,610,750 | $ | 3,214,171 | ||||||||||
Allowance for credit losses | $ | 52,350 | $ | 48,700 | ||||||||||
Allowance for credit losses ratio | 1.45 | % | 1.50 | % | ||||||||||
Adjusted allowance for credit losses ratio (1) | 1.45 | % | 1.52 | % | ||||||||||
(1) Allowance for credit losses divided by core loans. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Net Interest Margin, Tax Equivalent/Core Net Interest Margin | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Net interest income | $ | 36,962 | $ | 39,725 | $ | 77,038 | $ | 77,061 | ||||||||||||||||||
Tax equivalent adjustments: | ||||||||||||||||||||||||||
Loans (1) | 713 | 569 | 1,429 | 1,109 | ||||||||||||||||||||||
Securities (1) | 431 | 608 | 953 | 1,223 | ||||||||||||||||||||||
Net interest income, tax equivalent | $ | 38,106 | $ | 40,902 | $ | 79,420 | $ | 79,393 | ||||||||||||||||||
Loan purchase discount accretion | (984) | (528) | (2,173) | (1,260) | ||||||||||||||||||||||
Core net interest income | $ | 37,122 | $ | 40,374 | $ | 77,247 | $ | 78,133 | ||||||||||||||||||
Net interest margin | 2.45 | % | 2.79 | % | 2.56 | % | 2.75 | % | ||||||||||||||||||
Net interest margin, tax equivalent (2) | 2.52 | % | 2.87 | % | 2.63 | % | 2.83 | % | ||||||||||||||||||
Core net interest margin (3) | 2.46 | % | 2.83 | % | 2.56 | % | 2.79 | % | ||||||||||||||||||
Average interest earning assets | $ | 6,056,732 | $ | 5,718,825 | $ | 6,078,473 | $ | 5,653,775 | ||||||||||||||||||
(1) The federal statutory tax rate utilized was 21%. | ||||||||||||||||||||||||||
(2) Annualized tax equivalent net interest income divided by average interest earning assets. | ||||||||||||||||||||||||||
(3) Annualized core net interest income divided by average interest earning assets. |
Immediate Change in Rates | |||||||||||||||||||||||||||||
(dollars in thousands) | -200 | -100 | +100 | +200 | |||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||
Dollar change | $ | (4,485) | $ | 321 | $ | (3,290) | $ | (7,304) | |||||||||||||||||||||
Percent change | (2.7) | % | 0.2 | % | (2.0) | % | (4.4) | % | |||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Dollar change | N/A | N/A | $ | (996) | $ | (2,237) | |||||||||||||||||||||||
Percent change | N/A | N/A | (0.7) | % | (1.5) | % |
Immediate Change in Rates | |||||||||||||||||||||||||||||
(dollars in thousands) | -200 | -100 | +100 | +200 | |||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||
Dollar change | $ | 116 | $ | 699 | $ | (1,638) | $ | (3,565) | |||||||||||||||||||||
Percent change | 0.1 | % | 0.5 | % | (1.2) | % | (2.6) | % | |||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Dollar change | $ | 8,398 | $ | 5,637 | $ | (6,738) | $ | (13,921) | |||||||||||||||||||||
Percent change | 5.2 | % | 3.5 | % | (4.2) | % | (8.7) | % |
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs(2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | |||||||||||||||||||||||
April 1 - 30, 2022 | 7,662 | $ | 31.46 | 7,662 | $ | 5,169,789 | ||||||||||||||||||||
May 1 - 31, 2022 | 32,116 | 29.26 | 31,897 | 4,236,416 | ||||||||||||||||||||||
June 1 - 30, 2022 | 25,908 | 29.64 | 25,756 | 3,472,848 | ||||||||||||||||||||||
Total | 65,686 | $ | 29.67 | 65,315 | $ | 3,472,848 | ||||||||||||||||||||
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs(2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | |||||||||||||||||||||||
April 1 - 30, 2023 | — | $ | — | — | $ | 15,000,000 | ||||||||||||||||||||
May 1 - 31, 2023 | 282 | 18.55 | — | 15,000,000 | ||||||||||||||||||||||
June 1 - 30, 2023 | — | — | — | 15,000,000 | ||||||||||||||||||||||
Total | 282 | $ | 18.55 | — | $ | 15,000,000 | ||||||||||||||||||||
Exhibit Number | Description | Incorporated by Reference to: | ||||||||||||
Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on March 14, 2008 | Exhibit 3.3 to the Company’s Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-147628) filed with the SEC on January 14, 2008 | |||||||||||||
Articles of Amendment (First Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on January 23, 2009 | Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 23, 2009 | |||||||||||||
Articles of Amendment (Second Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on February 4, 2009 (containing the Certificate of Designations for the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A) | Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 6, 2009 | |||||||||||||
Articles of Amendment (Third Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc., filed with the Secretary of State of the State of Iowa on April 21, 2017 | Exhibit 3.1 to the Company’s Form 10-Q for the quarter ended March 31, 2017, filed with the SEC on May 4, 2017 | |||||||||||||
Third Amended and Restated Bylaws, as Amended of MidWestOne Financial Group, Inc. as of | Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on | |||||||||||||
Form of MidWestOne Financial Group, Inc. 2023 Equity Incentive Plan Restricted Stock Unit Award Agreement | Exhibit 4.7 to the Company’s Form S-8 filed with the SEC on May 5, 2023 | |||||||||||||
Form of MidWestOne Financial Group, Inc. 2023 Equity Incentive Plan Performance-Based Restricted Stock Unit Award Agreement | Exhibit 4.8 to the Company’s Form S-8 filed with the SEC on May 5, 2023 | |||||||||||||
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||||||||||||
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||||||||||||
Certification of Principal Accounting Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||||||||||||
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||||||||
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||||||||
Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, | Filed herewith | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Filed herewith | ||||||||||||
MIDWESTONE FINANCIAL GROUP, INC. | |||||||||||||||||||||||
Dated: | August | By: | /s/ CHARLES N. | ||||||||||||||||||||
Charles N. | |||||||||||||||||||||||
Chief Executive Officer | |||||||||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||||||||
By: | /s/ BARRY S. RAY | ||||||||||||||||||||||
Barry S. Ray | |||||||||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||||||||
By: | /s/ JOHN J. RUPPEL | ||||||||||||||||||||||
John J. Ruppel | |||||||||||||||||||||||
(Principal Accounting Officer) | |||||||||||||||||||||||