Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 26, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-15373 | |
Entity Registrant Name | ENTERPRISE FINANCIAL SERVICES CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-1706259 | |
Entity Address, Address Line One | 150 North Meramec | |
Entity Address, City or Town | Clayton | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63105 | |
City Area Code | 314 | |
Local Phone Number | 725-5500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,312,368 | |
Entity Central Index Key | 0001025835 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | EFSC | |
Security Exchange Name | NASDAQ | |
Depository Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A | |
Trading Symbol | EFSCP | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 210,813 | $ 229,580 |
Federal funds sold | 2,749 | 1,753 |
Interest-earning deposits | 71,521 | 60,026 |
Total cash and cash equivalents | 285,083 | 291,359 |
Interest-earning deposits greater than 90 days | 6,971 | 8,029 |
Securities available-for-sale | 1,555,109 | 1,535,807 |
Securities held-to-maturity, net | 720,694 | 709,915 |
Loans held-for-sale | 261 | 1,228 |
Loans | 10,011,918 | 9,737,138 |
Allowance for credit losses on loans | (138,295) | (136,932) |
Total loans, net | 9,873,623 | 9,600,206 |
Other investments | 62,943 | 63,790 |
Fixed assets, net | 42,340 | 42,985 |
Goodwill | 365,164 | 365,164 |
Intangible assets, net | 15,680 | 16,919 |
Other assets | 398,114 | 418,770 |
Total assets | 13,325,982 | 13,054,172 |
Liabilities and Shareholders' Equity | ||
Noninterest-bearing demand accounts | 4,192,523 | 4,642,732 |
Interest-bearing demand accounts | 2,395,901 | 2,256,295 |
Money market accounts | 2,959,868 | 2,655,159 |
Savings accounts | 712,671 | 744,256 |
Certificates of deposit: | ||
Brokered | 369,505 | 118,968 |
Other | 524,168 | 411,740 |
Total deposits | 11,154,636 | 10,829,150 |
Subordinated debentures and notes | 155,569 | 155,433 |
FHLB advances | 100,000 | 100,000 |
Other borrowings | 213,489 | 324,119 |
Other liabilities | 109,468 | 123,207 |
Total liabilities | 11,733,162 | 11,531,909 |
Commitments and contingent liabilities (Note 5) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 75,000 shares issued and outstanding ($1,000 per share liquidation preference) | 71,988 | 71,988 |
Common stock, $0.01 par value; 75,000,000 shares authorized; 37,310,770 shares issued and outstanding and 37,253,292 shares issued, respectively | 373 | 373 |
Additional paid in capital | 984,281 | 982,660 |
Retained earnings | 642,153 | 597,574 |
Accumulated other comprehensive loss | (105,975) | (130,332) |
Total shareholders' equity | 1,592,820 | 1,522,263 |
Total liabilities and shareholders' equity | $ 13,325,982 | $ 13,054,172 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 75,000 | 75,000 |
Preferred stock, shares outstanding | 75,000 | 75,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 37,310,770 | 37,253,292 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Loans | $ 152,606 | $ 96,123 |
Debt securities: | ||
Taxable | 9,286 | 5,351 |
Nontaxable | 5,597 | 3,942 |
Interest-earning deposits | 1,195 | 817 |
Dividends on equity securities | 349 | 348 |
Total interest income | 169,033 | 106,581 |
Interest expense: | ||
Deposits | 24,661 | 2,859 |
Subordinated debentures and notes | 2,409 | 2,220 |
FHLB advances | 1,332 | 195 |
Other borrowings | 1,102 | 142 |
Total interest expense | 29,504 | 5,416 |
Net interest income | 139,529 | 101,165 |
Provision (benefit) for credit losses | 4,183 | (4,068) |
Net interest income after provision (benefit) for credit losses | 135,346 | 105,233 |
Noninterest income: | ||
Total noninterest income | 16,898 | 18,641 |
Noninterest expense: | ||
Employee compensation and benefits | 42,503 | 35,827 |
Occupancy | 4,061 | 4,586 |
Data processing | 3,710 | 3,260 |
Professional fees | 1,631 | 1,177 |
Other expense | 29,078 | 17,950 |
Total noninterest expense | 80,983 | 62,800 |
Income before income tax expense | 71,261 | 61,074 |
Income tax expense | 15,523 | 13,381 |
Net income | 55,738 | 47,693 |
Dividends on preferred stock | 938 | 1,229 |
Net income available to common shareholders | $ 54,800 | $ 46,464 |
Earnings per common share | ||
Basic (usd per share) | $ 1.47 | $ 1.23 |
Diluted (usd per share) | $ 1.46 | $ 1.23 |
Deposit service charges | ||
Noninterest income: | ||
Total noninterest income | $ 4,128 | $ 4,163 |
Wealth management revenue | ||
Noninterest income: | ||
Total noninterest income | 2,516 | 2,622 |
Card services revenue | ||
Noninterest income: | ||
Total noninterest income | 2,338 | 3,040 |
Tax credit income | ||
Noninterest income: | ||
Total noninterest income | 1,813 | 2,608 |
Other income | ||
Noninterest income: | ||
Total noninterest income | $ 6,103 | $ 6,208 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 55,738 | $ 47,693 |
Other comprehensive income (loss), after-tax: | ||
Change in unrealized gain (loss) on available-for-sale securities | 23,978 | (79,353) |
Reclassification adjustment for realized gain on sale of available-for-sale debt securities | (285) | 0 |
Reclassification of gain on held-to-maturity securities | (638) | (704) |
Change in unrealized gain on cash flow hedges | 1,275 | 1,751 |
Reclassification of loss on cash flow hedges | 27 | 269 |
Total other comprehensive income (loss), after-tax | 24,357 | (78,037) |
Comprehensive income (loss) | $ 80,095 | $ (30,344) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 75,000 | ||||||
Common stock, beginning balance (in shares) at Dec. 31, 2021 | 37,819,000 | ||||||
Beginning balance at Dec. 31, 2021 | $ 1,529,116 | $ 71,988 | $ 398 | $ (73,528) | $ 1,018,799 | $ 492,682 | $ 18,777 |
Net income | 47,693 | 47,693 | |||||
Other comprehensive income (loss) | (78,037) | (78,037) | |||||
Common stock dividends | (7,915) | (7,915) | |||||
Preferred stock dividends | (1,229) | (1,229) | |||||
Repurchase of common shares (in shares) | (351,000) | ||||||
Repurchase of common stock | (16,974) | $ (4) | (9,457) | (7,513) | |||
Issuance under equity compensation plans, net (in shares) | 48,000 | ||||||
Issuance under equity compensation plans, net | (1,163) | $ 1 | (582) | (582) | |||
Share-based compensation | 1,686 | 1,686 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2022 | 75,000 | ||||||
Common stock, ending balance (in shares) at Mar. 31, 2022 | 37,516,000 | ||||||
Ending balance at Mar. 31, 2022 | $ 1,473,177 | $ 71,988 | $ 395 | $ (73,528) | 1,010,446 | 523,136 | (59,260) |
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 75,000 | 75,000 | |||||
Common stock, beginning balance (in shares) at Dec. 31, 2022 | 37,253,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ 1,522,263 | $ 71,988 | $ 373 | 982,660 | 597,574 | (130,332) | |
Net income | 55,738 | 55,738 | |||||
Other comprehensive income (loss) | 24,357 | 24,357 | |||||
Common stock dividends | (9,328) | (9,328) | |||||
Preferred stock dividends | (938) | (938) | |||||
Issuance under equity compensation plans, net (in shares) | 58,000 | ||||||
Issuance under equity compensation plans, net | (1,741) | (848) | (893) | ||||
Share-based compensation | $ 2,469 | 2,469 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | 75,000 | 75,000 | |||||
Common stock, ending balance (in shares) at Mar. 31, 2023 | 37,311,000 | ||||||
Ending balance at Mar. 31, 2023 | $ 1,592,820 | $ 71,988 | $ 373 | $ 984,281 | $ 642,153 | $ (105,975) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid on common shares (in dollars per share) | $ 0.25 | $ 0.21 |
Cash dividends paid on preferred shares (in dollars per share) | $ 12.50 | $ 16.389 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 55,738 | $ 47,693 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 1,274 | 1,472 |
Provision (benefit) for credit losses | 4,183 | (4,068) |
Deferred income taxes | 2,517 | 5,248 |
Net amortization of discount/premiums on debt securities | 1,070 | 1,625 |
Net amortization on loan discount/premiums | 1,606 | 429 |
Amortization of intangible assets | 1,239 | 1,429 |
Amortization of servicing assets | 493 | 648 |
Mortgage loans originated-for-sale | (2,918) | (27,811) |
Proceeds from mortgage loans sold | 3,884 | 29,636 |
Sale of investment securities | (381) | 0 |
Sale of SBA loans | (501) | 0 |
Sale of other real estate | (90) | (19) |
Sale of state tax credits | (91) | (9) |
Share-based compensation | 2,469 | 1,686 |
Net change in other assets and liabilities | ||
Net change in other assets and liabilities | (1,316) | (8,076) |
Net cash provided by operating activities | 69,176 | 49,883 |
Cash flows from investing activities: | ||
Net increase in loans | (285,158) | (39,536) |
Sale of debt securities, available-for-sale | 28,741 | 0 |
Paydown or maturity of debt securities, available-for-sale | 65,725 | 63,506 |
Paydown or maturity of debt securities, held-to-maturity | 2,037 | 5,097 |
Redemption of other investments | 41,109 | 1,248 |
Sale of SBA loans | 9,502 | 0 |
Sale of state tax credits held for sale | 504 | 261 |
Sale of other real estate | 360 | 1,419 |
Sale of fixed assets | 43 | 0 |
Settlement of bank-owned life insurance policies | 0 | 534 |
Payments for the purchase of: | ||
Available-for-sale debt securities | (86,737) | (313,875) |
Held-to-maturity debt securities | (14,602) | (1,120) |
Other investments | (39,123) | (8,154) |
State tax credits held for sale | (21) | (7,212) |
Fixed assets | (681) | (457) |
Net cash used in investing activities | (278,301) | (298,289) |
Cash flows from financing activities: | ||
Net (decrease) increase in noninterest-bearing deposit accounts | (450,209) | 302,607 |
Net increase in interest-bearing deposit accounts | 775,695 | 57,729 |
Repayments of notes payable | (1,429) | (1,429) |
Net decrease in other borrowings | (109,201) | (123,589) |
Repurchase of common stock | 0 | (16,974) |
Cash dividends paid on common stock | (9,328) | (7,915) |
Cash dividends paid on preferred stock | (938) | (1,229) |
Other | (1,741) | (1,163) |
Net cash provided by financing activities | 202,849 | 208,037 |
Net decrease in cash and cash equivalents | (6,276) | (40,369) |
Cash and cash equivalents, beginning of period | 291,359 | 2,021,689 |
Cash and cash equivalents, end of period | 285,083 | 1,981,320 |
Noncash investing and financing transactions: | ||
Cash paid during the period for interest | 27,486 | 4,725 |
Cash paid during period for income taxes | 0 | 979 |
Right-of-use assets obtained in exchange for lease obligations | 564 | 4,178 |
Transfer of securities from available-for-sale to held-to-maturity | $ 0 | $ 116,927 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used by Enterprise Financial Services Corp in the preparation of the condensed consolidated financial statements are summarized below: Business and Consolidation Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers primarily located in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico through its banking subsidiary, Enterprise Bank & Trust. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the statements of financial position, results of operations, and cash flow for the interim periods. Recent Accounting Pronouncements On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments–Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 was issued in March 2022 and eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross charge-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The adoption of this update did not have a material effect on the Company’s consolidated financial statements. FASB ASU 2021-01, Reference Rate Reform (Topic 848): Scope (ASU 2021-01) . ASU 2021-01 was issued in January 2021 and provides optional expedients and exceptions in ASC 848 to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendment only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, where an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update were effective immediately upon issuance and did not have a material effect on the consolidated financial statements. In December 2022, ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset date of Topic 848 was issued, which extends the sunset date from December 31, 2022 to December 31, 2024. FASB ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 was issued in June 2022 to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company has evaluated the accounting and disclosure requirements of ASU 2022-03 and does not expect them to have a material effect on the consolidated financial statements. FASB ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . ASU 2023-02 was issued in March 2023 to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits, instead of only low-income-housing tax credit (“LIHTC”) structures. This amendment also eliminates certain LIHTC-specific guidance aligning the accounting with other equity investments in tax credit structures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is evaluating the accounting and disclosure requirements of ASU 2023-02 and does not expect them to have a material effect on the consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per common share data is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method. The following table presents a summary of per common share data and amounts for the periods indicated. Three months ended March 31, (in thousands, except per share data) 2023 2022 Net income available to common shareholders $ 54,800 $ 46,464 Weighted average common shares outstanding 37,305 37,788 Additional dilutive common stock equivalents 182 70 Weighted average diluted common shares outstanding 37,487 37,858 Basic earnings per common share: $ 1.47 $ 1.23 Diluted earnings per common share: 1.46 1.23 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of securities available for sale and held to maturity: March 31, 2023 (in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 289,560 $ 95 $ (23,950) $ 265,705 Obligations of states and political subdivisions 503,883 53 (73,243) 430,693 Agency mortgage-backed securities 710,642 557 (60,748) 650,451 U.S. Treasury bills 203,596 22 (3,515) 200,103 Corporate debt securities 9,000 — (843) 8,157 Total securities available for sale $ 1,716,681 $ 727 $ (162,299) $ 1,555,109 Held-to-maturity securities: Obligations of states and political subdivisions $ 541,345 $ 5,133 $ (54,232) $ 492,246 Agency mortgage-backed securities 55,897 — (5,566) 50,331 Corporate debt securities 124,324 176 (10,524) 113,976 Total securities held-to-maturity $ 721,566 $ 5,309 $ (70,322) $ 656,553 Allowance for credit losses (872) Total securities held-to-maturity, net $ 720,694 December 31, 2022 (in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 266,090 $ — $ (28,305) $ 237,785 Obligations of states and political subdivisions 507,842 27 (90,425) 417,444 Agency mortgage-backed securities 727,931 453 (68,980) 659,404 U.S. Treasury Bills 213,441 1 (4,908) 208,534 Corporate debt securities 13,750 — (1,110) 12,640 Total securities available for sale $ 1,729,054 $ 481 $ (193,728) $ 1,535,807 Held-to-maturity securities: Obligations of states and political subdivisions $ 529,012 $ 2,321 $ (65,347) $ 465,986 Agency mortgage-backed securities 57,018 — (6,416) 50,602 Corporate debt securities 124,620 163 (12,854) 111,929 Total securities held to maturity $ 710,650 $ 2,484 $ (84,617) $ 628,517 Allowance for credit losses (735) Total securities held-to-maturity, net $ 709,915 The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized unrealized gain of $16.8 million and $17.6 million at March 31, 2023 and December 31, 2022, respectively. Such amounts are amortized over the remaining life of the securities. At March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities having a fair value of $1.8 billion and $734.5 million at March 31, 2023 and December 31, 2022, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions, in addition to collateral securing borrowing bases with the FHLB and the Federal Reserve. The amortized cost and estimated fair value of debt securities at March 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 6 years. Available for sale Held to maturity (in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 97,485 $ 97,369 $ 720 $ 720 Due after one year through five years 370,543 347,074 50,396 47,082 Due after five years through ten years 70,480 64,238 187,914 177,985 Due after ten years 467,531 395,977 426,639 380,435 Agency mortgage-backed securities 710,642 650,451 55,897 50,331 $ 1,716,681 $ 1,555,109 $ 721,566 $ 656,553 The following tables presents a summary of available-for-sale investment securities in an unrealized loss position: March 31, 2023 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 31,351 $ 671 $ 224,294 $ 23,279 $ 255,645 $ 23,950 Obligations of states and political subdivisions 1,954 165 424,582 73,078 426,536 73,243 Agency mortgage-backed securities 198,052 6,861 407,782 53,887 605,834 60,748 U.S. Treasury bills 150,570 2,153 23,795 1,362 174,365 3,515 Corporate debt securities 3,664 336 4,243 507 7,907 843 $ 385,591 $ 10,186 $ 1,084,696 $ 152,113 $ 1,470,287 $ 162,299 December 31, 2022 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 73,738 $ 6,249 $ 163,047 $ 22,056 $ 236,785 $ 28,305 Obligations of states and political subdivisions 103,179 13,501 311,634 76,924 414,813 90,425 Agency mortgage-backed securities 334,431 20,038 281,321 48,942 615,752 68,980 U.S. Treasury bills 198,688 4,908 — — 198,688 4,908 Corporate debt securities 12,640 1,110 — — 12,640 1,110 $ 722,676 $ 45,806 $ 756,002 $ 147,922 $ 1,478,678 $ 193,728 The unrealized losses at both March 31, 2023 and December 31, 2022 were attributable primarily to changes in market interest rates after the securities were purchased. In March 2023, the Company established an allowance for credit losses on available-for-sale investment securities through a provision for credit losses of $4.8 million and subsequently charged-off $4.8 million. The charge-off related to the impairment of a debt security from a bank that failed in 2023. At each of March 31, 2023 and December 31, 2022, the Company had no allowance recorded on available-for-sale securities. Accrued interest receivable on held-to-maturity debt securities totaled $6.6 million and $5.8 million at March 31, 2023 and December 31, 2022, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. The ACL on held-to-maturity securities was $0.9 million at March 31, 2023 and $0.7 million at December 31, 2022. The Company sold $28.4 million of available-for-sale securities in January 2023 for a gain of $0.4 million. There were no sales of available-for-sale investment securities during the three months ended March 31, 2022. Other Investments At March 31, 2023 and December 31, 2022, other investments totaled $62.9 million and $63.8 million, respectively. As a member of the FHLB system administered by the Federal Housing Finance Agency, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $14.0 million at both March 31, 2023 and December 31, 2022 is recorded at cost, which represents redemption value, and is included in other investments in the consolidated balance sheets. The remaining amounts in other investments primarily include investments in SBICs, CDFIs, private equity investments, and the Company’s investment in unconsolidated trusts used to issue trust preferred securities to third parties. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Portfolio Loans | LOANS The following table presents a summary of loans by category: (in thousands) March 31, 2023 December 31, 2022 Commercial and industrial $ 4,032,189 $ 3,859,964 Real estate: Commercial - investor owned 2,418,079 2,357,820 Commercial - owner occupied 2,281,223 2,270,551 Construction and land development 663,264 611,565 Residential 364,059 395,537 Total real estate loans 5,726,625 5,635,473 Other 260,001 248,990 Loans, before unearned loan fees 10,018,815 9,744,427 Unearned loan fees, net (6,897) (7,289) Loans, including unearned loan fees $ 10,011,918 $ 9,737,138 The loan balance at March 31, 2023 and December 31, 2022, includes a net premium on acquired loans of $10.3 million and $11.9 million, respectively. At March 31, 2023 and December 31, 2022, loans of $3.4 billion and $2.8 billion, respectively, were pledged to FHLB and the Federal Reserve Bank. Accrued interest receivable totaled $44.7 million and $48.1 million at March 31, 2023 and December 31, 2022, respectively, and was reported in “Other Assets” on the consolidated balance sheets. SBA 7(a) guaranteed loans sold during the three months ended March 31, 2023 totaled $8.8 million, resulting in a gain on sale of $0.5 million. There were no SBA loan sales during the same period in 2022. A summary of the activity in the ACL on loans by category for the three months ended March 31, 2023 and 2022 is as follows: (in thousands) Commercial and industrial CRE - investor owned CRE - Construction and land development Residential real estate Other Total Allowance for credit losses on loans: Balance at December 31, 2022 $ 53,835 $ 36,191 $ 22,752 $ 11,444 $ 7,928 $ 4,782 $ 136,932 Provision (benefit) for credit losses 5,083 222 (440) (2,578) (1,151) (37) 1,099 Charge-offs (707) (170) — (9) (102) (192) (1,180) Recoveries 938 23 16 32 322 113 1,444 Balance at March 31, 2023 $ 59,149 $ 36,266 $ 22,328 $ 8,889 $ 6,997 $ 4,666 $ 138,295 (in thousands) Commercial and industrial CRE - investor owned CRE - Construction and land development Residential real estate Other Total Allowance for credit losses on loans: Balance at December 31, 2021 $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Provision (benefit) for credit losses (1,481) 121 (582) (1,574) (456) (336) (4,308) Charge-offs (2,159) — (180) — (887) (86) (3,312) Recoveries 790 196 240 21 525 19 1,791 Balance at March 31, 2022 $ 60,975 $ 36,194 $ 17,038 $ 12,983 $ 7,109 $ 4,913 $ 139,212 The ACL on sponsor finance loans, which is included in the categories above, represented $21.0 million and $16.1 million, respectively, as of March 31, 2023 and December 31, 2022. The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model: Moody’s baseline, a stronger near-term growth upside and a moderate recession downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $14.2 million to the ACL over the baseline model at March 31, 2023. These forecasts incorporate an expectation that the Federal Reserve will continue quantitative tightening and raise the federal funds rate to 5.00% to 5.25% in 2023 and that the recent bank failures are not an indication of a broader problem in the industry. The Company has also recognized various risks posed by loans in certain segments, including the hospitality and commercial office sectors, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation, tightening in the credit markets, and further weakness in the financial system. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the discounted cash flow (DCF) model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters and pandemics. At March 31, 2023, the ACL on loans included a qualitative adjustment of approximately $43.2 million. Of this amount, approximately $13.8 million was allocated to sponsor finance loans due to their unsecured nature. The current-period gross charge-offs by loan class and year of origination is presented in the following table: March 31, 2023 Term Loans by Origination Year (in thousands) 2022 2021 Prior Revolving Loans Total Commercial and industrial $ 1 $ — $ — $ 570 $ 571 Real estate: Commercial - investor owned — 170 — — 170 Construction and land development — — 9 — 9 Residential — — 102 — 102 Other — — 3 — 3 Total current-period gross charge-offs by risk rating $ 1 $ 170 $ 114 $ 570 $ 855 Total current-period gross charge-offs by performing status 325 Total current-period gross charge-offs $ 1,180 The following tables present the recorded investment in nonperforming loans by category: March 31, 2023 (in thousands) Nonaccrual Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 5,252 $ 73 $ 5,325 $ 1,002 Real estate: Commercial - investor owned 3,887 — 3,887 — Commercial - owner occupied 1,547 — 1,547 — Construction and land development 1,201 — 1,201 1,201 Other — 12 12 — Total $ 11,887 $ 85 $ 11,972 $ 2,203 December 31, 2022 (in thousands) Nonaccrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 4,373 $ — $ 70 $ 4,443 $ 1,047 Real estate: Commercial - investor owned 3,023 — — 3,023 — Commercial - owner occupied 1,177 — — 1,177 — Construction and land development 1,192 — — 1,192 1,192 Residential — 73 — 73 — Other 1 — 72 73 — Total $ 9,766 $ 73 $ 142 $ 9,981 $ 2,239 The nonperforming loan balances at March 31, 2023 and December 31, 2022 exclude government guaranteed balances of $6.8 million and $6.7 million, respectively. No material interest income was recognized on nonaccrual loans during the three months ended March 31, 2023 or 2022. Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated: March 31, 2023 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ 950 $ 1,002 Real estate: Commercial - investor owned 2,177 773 — Commercial - owner occupied 1,547 — — Construction and land development 1,201 Residential — — — Total $ 3,724 $ 2,924 $ 1,002 December 31, 2022 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ — $ 1,047 Real estate: Commercial - investor owned 2,238 785 — Commercial - owner occupied 1,177 — — Construction and land development — 1,192 — Residential — 73 — Total $ 3,415 $ 2,050 $ 1,047 The aging of the recorded investment in past due loans by class is presented as of the dates indicated. March 31, 2023 (in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 3,244 $ 1,894 $ 5,138 $ 4,027,051 $ 4,032,189 Real estate: Commercial - investor owned 2,086 1,098 3,184 2,414,895 2,418,079 Commercial - owner occupied 2,780 4,084 6,864 2,274,359 2,281,223 Construction and land development 396 — 396 662,868 663,264 Residential 2,414 — 2,414 361,645 364,059 Other 151 12 163 259,838 260,001 Loans, before unearned loan fees $ 11,071 $ 7,088 $ 18,159 $ 10,000,656 $ 10,018,815 Unearned loan fees, net (6,897) Total $ 10,011,918 December 31, 2022 (in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 555 $ 2,373 $ 2,928 $ 3,857,036 $ 3,859,964 Real estate: Commercial - investor owned — 1,135 1,135 2,356,685 2,357,820 Commercial - owner occupied 8,628 164 8,792 2,261,759 2,270,551 Construction and land development 9 1,192 1,201 610,364 611,565 Residential 1,227 — 1,227 394,310 395,537 Other 18 72 90 248,900 248,990 Loans, before unearned loan fees $ 10,437 $ 4,936 $ 15,373 $ 9,729,054 $ 9,744,427 Unearned loan fees, net (7,289) Total $ 9,737,138 The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance. The most common concession the Company provides to borrowers experiencing financial difficulty is a term extension. In limited circumstances, the Company may modify loans by providing principal forgiveness or an interest rate reduction. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction or principal forgiveness, may be granted. The following table shows loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted: Term Extension (in thousands) March 31, 2023 % of Total Class of Financing Receivable Commercial and industrial $ 22,818 0.57 % Real estate: Construction and land development 1,201 0.18 % Total $ 24,019 The term extensions were for 2-12 months, and all loans were current under the modified terms. There were no loans restructured during the three months ended March 31, 2022, and no troubled debt restructurings subsequently defaulted during the three months ended March 31, 2022. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, current economic factors and other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: • Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. • Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. • Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. • Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating. • Grade 7 – Special Mention credits are borrowers that experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated at this time, due to strong collateral and/or guarantor support. • Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. • Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on nonaccrual. The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated: March 31, 2023 Term Loans by Origination Year (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 446,623 $ 1,294,156 $ 487,289 $ 296,880 $ 163,807 $ 107,963 $ 9,928 $ 1,003,625 $ 3,810,271 Special Mention (7) 11,145 21,894 17,320 13,862 477 11,766 — 68,846 145,310 Classified (8-9) 5,570 10,929 5,569 1,497 23 452 175 27,903 52,118 Total Commercial and industrial $ 463,338 $ 1,326,979 $ 510,178 $ 312,239 $ 164,307 $ 120,181 $ 10,103 $ 1,100,374 $ 4,007,699 Commercial real estate-investor owned Pass (1-6) $ 133,638 $ 649,170 $ 571,133 $ 385,909 $ 217,109 $ 293,114 $ 1,701 $ 60,720 $ 2,312,494 Special Mention (7) — 26,002 5,241 23,260 10,952 12,909 — — 78,364 Classified (8-9) — 1,809 — 462 639 5,845 49 — 8,804 Total Commercial real estate-investor owned $ 133,638 $ 676,981 $ 576,374 $ 409,631 $ 228,700 $ 311,868 $ 1,750 $ 60,720 $ 2,399,662 Commercial real estate-owner occupied Pass (1-6) $ 113,180 $ 520,215 $ 527,516 $ 348,955 $ 205,503 $ 371,027 $ — $ 57,489 $ 2,143,885 Special Mention (7) 9,608 5,946 4,862 19,644 4,459 13,660 4,962 300 63,441 Classified (8-9) — — 2,214 5,025 9,412 27,511 — 595 44,757 Total Commercial real estate-owner occupied $ 122,788 $ 526,161 $ 534,592 $ 373,624 $ 219,374 $ 412,198 $ 4,962 $ 58,384 $ 2,252,083 Construction real estate Pass (1-6) $ 106,759 $ 288,291 $ 198,719 $ 51,005 $ 2,931 $ 10,045 $ — $ 1,637 $ 659,387 Special Mention (7) — 1,284 — 146 145 217 — — 1,792 Classified (8-9) 1,201 396 — — 13 475 — — 2,085 Total Construction real estate $ 107,960 $ 289,971 $ 198,719 $ 51,151 $ 3,089 $ 10,737 $ — $ 1,637 $ 663,264 Residential real estate Pass (1-6) $ 9,606 $ 50,504 $ 54,407 $ 37,471 $ 20,438 $ 94,722 $ 774 $ 91,520 $ 359,442 Special Mention (7) — 329 — — 77 1,119 — — 1,525 Classified (8-9) — 119 72 — 51 2,039 — 75 2,356 Total residential real estate $ 9,606 $ 50,952 $ 54,479 $ 37,471 $ 20,566 $ 97,880 $ 774 $ 91,595 $ 363,323 Other Pass (1-6) $ 960 $ 60,165 $ 85,417 $ 55,789 $ 9,973 $ 26,899 $ — $ 6,833 $ 246,036 Special Mention (7) — — — — — — — — — Classified (8-9) — — — — 2 12 — — 14 Total Other $ 960 $ 60,165 $ 85,417 $ 55,789 $ 9,975 $ 26,911 $ — $ 6,833 $ 246,050 Total loans classified by risk category $ 838,290 $ 2,931,209 $ 1,959,759 $ 1,239,905 $ 646,011 $ 979,775 $ 17,589 $ 1,319,543 $ 9,932,081 Total loans classified by performing status 79,837 Total loans $ 10,011,918 December 31, 2022 Term Loans by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,403,381 $ 635,275 $ 332,740 $ 172,127 $ 62,729 $ 66,152 $ 8,388 $ 964,592 $ 3,645,384 Special Mention (7) 37,048 10,836 13,858 423 7,995 4,102 — 72,944 147,206 Classified (8-9) 16,176 4,457 1,627 24 166 183 — 21,349 43,982 Total Commercial and industrial $ 1,456,605 $ 650,568 $ 348,225 $ 172,574 $ 70,890 $ 70,437 $ 8,388 $ 1,058,885 $ 3,836,572 Commercial real estate-investor owned Pass (1-6) $ 667,107 $ 584,644 $ 392,402 $ 240,033 $ 115,530 $ 202,661 $ 1,457 $ 53,051 $ 2,256,885 Special Mention (7) 18,844 5,751 23,502 11,605 — 13,063 — — 72,765 Classified (8-9) 1,823 — 465 953 193 6,092 49 — 9,575 Total Commercial real estate-investor owned $ 687,774 $ 590,395 $ 416,369 $ 252,591 $ 115,723 $ 221,816 $ 1,506 $ 53,051 $ 2,339,225 Commercial real estate-owner occupied Pass (1-6) $ 539,610 $ 555,690 $ 362,150 $ 232,335 $ 123,095 $ 270,613 $ — $ 57,308 $ 2,140,801 Special Mention (7) 11,164 3,801 16,856 4,455 13,043 9,009 — 800 59,128 Classified (8-9) — 1,572 3,483 8,910 15,873 11,387 — — 41,225 Total Commercial real estate-owner occupied $ 550,774 $ 561,063 $ 382,489 $ 245,700 $ 152,011 $ 291,009 $ — $ 58,108 $ 2,241,154 Construction real estate Pass (1-6) $ 290,146 $ 232,998 $ 53,129 $ 2,909 $ 2,061 $ 8,480 $ — $ 1,769 $ 591,492 Special Mention (7) 17,331 — 681 146 111 106 — — 18,375 Classified (8-9) 1,192 — — 14 471 21 — — 1,698 Total Construction real estate $ 308,669 $ 232,998 $ 53,810 $ 3,069 $ 2,643 $ 8,607 $ — $ 1,769 $ 611,565 Residential real estate Pass (1-6) $ 63,317 $ 60,910 $ 48,796 $ 20,943 $ 11,259 $ 88,795 $ 579 $ 96,304 $ 390,903 Special Mention (7) 331 — — 79 352 781 — — 1,543 Classified (8-9) 121 73 — 53 1,102 994 — 5 2,348 Total residential real estate $ 63,769 $ 60,983 $ 48,796 $ 21,075 $ 12,713 $ 90,570 $ 579 $ 96,309 $ 394,794 Other Pass (1-6) $ 38,753 $ 88,613 $ 56,252 $ 10,556 $ 20,508 $ 10,796 $ — $ 9,536 $ 235,014 Special Mention (7) — — — — — — — — — Classified (8-9) — — — 4 3 11 3 4 25 Total Other $ 38,753 $ 88,613 $ 56,252 $ 10,560 $ 20,511 $ 10,807 $ 3 $ 9,540 $ 235,039 Total loans classified by risk category $ 3,106,344 $ 2,184,620 $ 1,305,941 $ 705,569 $ 374,491 $ 693,246 $ 10,476 $ 1,277,662 $ 9,658,349 Total loans classified by performing status 78,789 Total loans $ 9,737,138 In the tables above, loan originations in 2023 and 2022 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years. For certain loans the Company evaluates credit quality based on the aging status. The following tables present the recorded investment on loans based on payment activity as of the dates indicated: March 31, 2023 (in thousands) Performing Non Performing Total Commercial and industrial $ 24,417 $ 73 $ 24,490 Real estate: Commercial - investor owned 18,417 — 18,417 Commercial - owner occupied 29,140 — 29,140 Residential 736 — 736 Other 7,042 12 7,054 Total $ 79,752 $ 85 $ 79,837 December 31, 2022 (in thousands) Performing Non Performing Total Commercial and industrial $ 23,240 $ 70 $ 23,310 Real estate: Commercial - investor owned 18,595 — 18,595 Commercial - owner occupied 29,397 — 29,397 Residential 743 — 743 Other 6,672 72 6,744 Total $ 78,647 $ 142 $ 78,789 |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | COMMITMENTS AND CONTINGENCIES The Company issues financial instruments with off balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. The contractual amounts of off-balance-sheet financial instruments are as follows: (in thousands) March 31, 2023 December 31, 2022 Commitments to extend credit $ 3,053,927 $ 3,113,966 Letters of credit 94,361 68,544 Off-Balance Sheet Credit Risk Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at March 31, 2023 and December 31, 2022, approximately $249.7 million and $246.5 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate. Other liabilities includes $10.2 million and $12.1 million for estimated losses attributable to the unadvanced commitments at March 31, 2023 and December 31, 2022, respectively. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance or payment of a customer to a third party. These standby letters of credit are issued to support contractual obligations of the Company’s customers. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. As of March 31, 2023, the approximate remaining terms of standby letters of credit range from 1 month to 10 years. Contingencies The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Management believes there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not enter into derivative financial instruments for trading purposes. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. For hedges of the Company’s variable-rate loans, interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts and the Company making variable rate payments. In the fourth quarter 2022, the Company executed a cash flow hedge to reduce a portion of variability in cash flows on the Company’s prime based loan portfolio. The interest rate swap has a notional value of $100.0 million, that effectively fixes the interest rate at 6.63% for the notional amount and has a maturity date of January 1, 2028. In January 2023, the Company entered into another hedge on the prime based loan portfolio with a notional value of $50.0 million, that effectively fixes the interest rate at 6.56% for the notional amount and has a maturity date of February 1, 2027. In addition, the Company executed a prime based interest rate collar in the fourth quarter 2022 with a notional amount of $100.0 million. The collar includes a cap of 8.14% and a floor of 5.25%. This transaction, commonly referred to as a zero cost collar, involves the Company selling an interest rate cap where payments will be made when the index exceeds the cap rate, and the purchase of a floor where payments will be received if the index falls below the floor. The collar matures on October 1, 2029. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. These derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The Company has executed a series of cash flow hedges to fix the effective interest rate for payments due on $62.0 million of LIBOR-based junior subordinated debentures to a weighted-average-fixed rate o f 2.62%. Select terms of the hedges are as follows: (in thousands) Notional Fixed Rate Maturity Date $ 15,465 2.60 % March 15, 2024 $ 14,433 2.60 % March 30, 2024 $ 18,558 2.64 % March 15, 2026 $ 13,506 2.64 % March 17, 2026 The gain or loss on derivatives designated and qualified as cash flow hedges of interest rate risk are recorded in accumulated other comprehensive income and subsequently reclassified into interest income or expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are paid on the Company’s variable-rate loans and debt. During the next twelve months, the Company estimates an additional $1.8 million will be reclassified as a decrease to interest income and $1.3 million will be reclassified as a decrease to interest expense. Non-designated Hedges Derivatives not designated as hedges are not considered speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings as a component of other noninterest income. The table below presents the fair value of the Company’s derivative financial instruments: Notional Amount Derivative Assets Derivative Liabilities (in thousands) March 31, December 31, 2022 March 31, December 31, 2022 March 31, December 31, 2022 Derivatives Designated as Hedging Instruments: Interest rate swap $ 211,962 $ 161,962 $ 2,455 $ 2,348 $ 86 $ 921 Interest rate collar 100,000 100,000 751 — — 48 Total $ 3,206 $ 2,348 $ 86 $ 969 Derivatives not Designated as Hedging Instruments: Interest rate swap $ 705,097 $ 687,902 $ 16,769 $ 20,610 $ 16,772 $ 20,612 The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments subject to offsetting. The gross amounts of assets or liabilities can be reconciled to the tabular disclosure of fair value. The fair value table above provides the location financial assets and liabilities are presented on the Balance Sheet. As of March 31, 2023 Gross Amounts Not Offset in the Statement of Financial Position (in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Received/ Pledged Net Amount Assets: Interest rate swap $ 19,224 $ — $ 19,224 $ (1,290) $ 17,934 $ — Interest rate collar 751 — 751 — — 751 Liabilities: Interest rate swap $ 16,858 $ — $ 16,858 $ (1,290) $ — $ 15,568 Securities sold under agreements to repurchase 161,573 — 161,573 — 161,573 — As of December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position (in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Received/ Pledged Net Amount Assets: Interest rate swap $ 22,958 $ — $ 22,958 $ — $ 9,010 $ 13,948 Liabilities: Interest rate swap $ 21,533 $ — $ 21,533 $ — $ — $ 21,533 Interest rate collar 48 — 48 — — 48 Securities sold under agreements to repurchase 270,773 — 270,773 — 270,773 — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table summarizes financial instruments measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2023 (in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available for sale Obligations of U.S. Government-sponsored enterprises $ — $ 265,705 $ — $ 265,705 Obligations of states and political subdivisions — 430,693 — 430,693 Agency mortgage-backed securities — 650,451 — 650,451 U.S. Treasury bills — 200,103 — 200,103 Corporate debt securities — 8,157 — 8,157 Total securities available for sale — 1,555,109 — 1,555,109 Other investments — 2,770 — 2,770 Derivatives — 19,975 — 19,975 Total assets $ — $ 1,577,854 $ — $ 1,577,854 Liabilities Derivatives $ — $ 16,858 $ — $ 16,858 Total liabilities $ — $ 16,858 $ — $ 16,858 December 31, 2022 (in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available for sale Obligations of U.S. Government-sponsored enterprises $ — $ 237,785 $ — $ 237,785 Obligations of states and political subdivisions — 417,444 — 417,444 Residential mortgage-backed securities — 659,404 — 659,404 U.S. Treasury bills — 208,534 — 208,534 Corporate debt securities — 12,640 — 12,640 Total securities available-for-sale — 1,535,807 — 1,535,807 Other investments — 2,667 — 2,667 Derivative financial instruments — 22,958 — 22,958 Total assets $ — $ 1,561,432 $ — $ 1,561,432 Liabilities Derivatives $ — $ 21,581 $ — $ 21,581 Total liabilities $ — $ 21,581 $ — $ 21,581 From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The amounts reported in the following tables include balances measured at fair value during the reporting period and still held as of the reporting date. March 31, 2023 (in thousands) Total Fair Value Quoted Prices in Active Significant Significant Loan servicing asset 1,004 — 1,004 — December 31, 2022 (in thousands) Total Fair Value Quoted Prices in Active Significant Significant Other real estate 269 — — 269 Loan servicing asset 1,027 1,027 — Total $ 1,296 $ — $ 1,027 $ 269 Following is a summary of the carrying amounts and fair values of certain financial instruments: March 31, 2023 December 31, 2022 (in thousands) Carrying Amount Estimated fair value Level Carrying Amount Estimated fair value Level Balance sheet assets Securities held-to-maturity, net $ 720,694 $ 656,553 Level 2 $ 709,915 $ 628,517 Level 2 Other investments 60,173 60,173 Level 2 61,123 61,123 Level 2 Loans held for sale 261 261 Level 2 1,228 1,228 Level 2 Loans, net 9,873,623 $ 9,587,197 Level 3 9,600,206 9,328,844 Level 3 State tax credits, held for sale 27,308 28,933 Level 3 27,700 28,880 Level 3 Servicing asset 3,343 4,342 Level 2 3,648 3,905 Level 2 Balance sheet liabilities Certificates of deposit $ 893,673 $ 877,954 Level 3 $ 530,708 $ 512,229 Level 3 Subordinated debentures and notes 155,569 150,559 Level 2 155,433 152,679 Level 2 FHLB advances 100,000 100,000 Level 2 100,000 100,004 Level 2 Other borrowings 213,489 213,489 Level 2 324,119 324,119 Level 2 For information regarding the methods and assumptions used to estimate the fair value of each class of financial instruments refer to Note 19 – Fair Value Measurements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) The following table present the changes in accumulated other comprehensive income after-tax by component: Three months ended (in thousands) Net Unrealized Gain (Loss) on Available-for-Sale Securities Unamortized Gain (Loss) on Held-to-Maturity Securities Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balance, December 31, 2022 $ (144,549) $ 13,185 $ 1,032 $ (130,332) Net change $ 23,693 $ (638) $ 1,302 $ 24,357 Balance, March 31, 2023 $ (120,856) $ 12,547 $ 2,334 $ (105,975) Balance, December 31, 2021 $ 5,271 $ 15,684 $ (2,178) $ 18,777 Net change $ (79,353) $ (704) $ 2,020 $ (78,037) Transfer from available-for-sale to held-to-maturity (197) 197 — — Balance, March 31, 2022 $ (74,279) $ 15,177 $ (158) $ (59,260) The following tables present the pre-tax and after-tax changes in the components of other comprehensive income: Three months ended March 31, 2023 2022 (in thousands) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Change in unrealized gain (loss) on available-for-sale securities $ 32,056 $ 8,078 $ 23,978 $ (106,087) $ (26,734) $ (79,353) Reclassification of gain on sale of available-for-sale securities (a) (381) (96) (285) — — — Reclassification of gain on held-to-maturity securities (b) (852) (214) (638) (941) (237) (704) Change in unrealized gain on cash flow hedges 1,705 430 1,275 2,341 590 1,751 Reclassification of loss on cash flow hedges (b) 36 9 27 359 90 269 Total other comprehensive income (loss) $ 32,564 $ 8,207 $ 24,357 $ (104,328) $ (26,291) $ (78,037) (a) The pre-tax amount is reported in noninterest income/expense in the Consolidated Statements of Operations (b) The pre-tax amount is reported in interest income/expense in the Consolidated Statements of Income. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION The following table presents miscellaneous income and other expense components that primarily exceed one percent of the aggregate of total interest income and other income in one or more of the periods indicated: Three months ended March 31, (in thousands) 2023 2022 Other income: Bank-owned life insurance $ 791 $ 1,034 Community development fees 595 2,166 Other income 4,717 3,008 Total other noninterest income $ 6,103 $ 6,208 Other expense: Amortization of intangibles $ 1,239 $ 1,430 Banking expense 1,848 1,501 Deposit costs 12,720 4,260 FDIC and other insurance 2,572 1,855 Loan, legal expenses 1,904 1,733 Outside services 1,545 1,262 Other expense 7,250 5,909 Total other noninterest expense $ 29,078 $ 17,950 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Business and Consolidation | Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the statements of financial position, results of operations, and cash flow for the interim periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments–Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 was issued in March 2022 and eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross charge-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The adoption of this update did not have a material effect on the Company’s consolidated financial statements. FASB ASU 2021-01, Reference Rate Reform (Topic 848): Scope (ASU 2021-01) . ASU 2021-01 was issued in January 2021 and provides optional expedients and exceptions in ASC 848 to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendment only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, where an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update were effective immediately upon issuance and did not have a material effect on the consolidated financial statements. In December 2022, ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset date of Topic 848 was issued, which extends the sunset date from December 31, 2022 to December 31, 2024. FASB ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 was issued in June 2022 to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company has evaluated the accounting and disclosure requirements of ASU 2022-03 and does not expect them to have a material effect on the consolidated financial statements. FASB ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . ASU 2023-02 was issued in March 2023 to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits, instead of only low-income-housing tax credit (“LIHTC”) structures. This amendment also eliminates certain LIHTC-specific guidance aligning the accounting with other equity investments in tax credit structures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is evaluating the accounting and disclosure requirements of ASU 2023-02 and does not expect them to have a material effect on the consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Per Common Share Data and Amounts | The following table presents a summary of per common share data and amounts for the periods indicated. Three months ended March 31, (in thousands, except per share data) 2023 2022 Net income available to common shareholders $ 54,800 $ 46,464 Weighted average common shares outstanding 37,305 37,788 Additional dilutive common stock equivalents 182 70 Weighted average diluted common shares outstanding 37,487 37,858 Basic earnings per common share: $ 1.47 $ 1.23 Diluted earnings per common share: 1.46 1.23 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation | The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of securities available for sale and held to maturity: March 31, 2023 (in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 289,560 $ 95 $ (23,950) $ 265,705 Obligations of states and political subdivisions 503,883 53 (73,243) 430,693 Agency mortgage-backed securities 710,642 557 (60,748) 650,451 U.S. Treasury bills 203,596 22 (3,515) 200,103 Corporate debt securities 9,000 — (843) 8,157 Total securities available for sale $ 1,716,681 $ 727 $ (162,299) $ 1,555,109 Held-to-maturity securities: Obligations of states and political subdivisions $ 541,345 $ 5,133 $ (54,232) $ 492,246 Agency mortgage-backed securities 55,897 — (5,566) 50,331 Corporate debt securities 124,324 176 (10,524) 113,976 Total securities held-to-maturity $ 721,566 $ 5,309 $ (70,322) $ 656,553 Allowance for credit losses (872) Total securities held-to-maturity, net $ 720,694 December 31, 2022 (in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 266,090 $ — $ (28,305) $ 237,785 Obligations of states and political subdivisions 507,842 27 (90,425) 417,444 Agency mortgage-backed securities 727,931 453 (68,980) 659,404 U.S. Treasury Bills 213,441 1 (4,908) 208,534 Corporate debt securities 13,750 — (1,110) 12,640 Total securities available for sale $ 1,729,054 $ 481 $ (193,728) $ 1,535,807 Held-to-maturity securities: Obligations of states and political subdivisions $ 529,012 $ 2,321 $ (65,347) $ 465,986 Agency mortgage-backed securities 57,018 — (6,416) 50,602 Corporate debt securities 124,620 163 (12,854) 111,929 Total securities held to maturity $ 710,650 $ 2,484 $ (84,617) $ 628,517 Allowance for credit losses (735) Total securities held-to-maturity, net $ 709,915 |
Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation | The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of securities available for sale and held to maturity: March 31, 2023 (in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 289,560 $ 95 $ (23,950) $ 265,705 Obligations of states and political subdivisions 503,883 53 (73,243) 430,693 Agency mortgage-backed securities 710,642 557 (60,748) 650,451 U.S. Treasury bills 203,596 22 (3,515) 200,103 Corporate debt securities 9,000 — (843) 8,157 Total securities available for sale $ 1,716,681 $ 727 $ (162,299) $ 1,555,109 Held-to-maturity securities: Obligations of states and political subdivisions $ 541,345 $ 5,133 $ (54,232) $ 492,246 Agency mortgage-backed securities 55,897 — (5,566) 50,331 Corporate debt securities 124,324 176 (10,524) 113,976 Total securities held-to-maturity $ 721,566 $ 5,309 $ (70,322) $ 656,553 Allowance for credit losses (872) Total securities held-to-maturity, net $ 720,694 December 31, 2022 (in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 266,090 $ — $ (28,305) $ 237,785 Obligations of states and political subdivisions 507,842 27 (90,425) 417,444 Agency mortgage-backed securities 727,931 453 (68,980) 659,404 U.S. Treasury Bills 213,441 1 (4,908) 208,534 Corporate debt securities 13,750 — (1,110) 12,640 Total securities available for sale $ 1,729,054 $ 481 $ (193,728) $ 1,535,807 Held-to-maturity securities: Obligations of states and political subdivisions $ 529,012 $ 2,321 $ (65,347) $ 465,986 Agency mortgage-backed securities 57,018 — (6,416) 50,602 Corporate debt securities 124,620 163 (12,854) 111,929 Total securities held to maturity $ 710,650 $ 2,484 $ (84,617) $ 628,517 Allowance for credit losses (735) Total securities held-to-maturity, net $ 709,915 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities at March 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 6 years. Available for sale Held to maturity (in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 97,485 $ 97,369 $ 720 $ 720 Due after one year through five years 370,543 347,074 50,396 47,082 Due after five years through ten years 70,480 64,238 187,914 177,985 Due after ten years 467,531 395,977 426,639 380,435 Agency mortgage-backed securities 710,642 650,451 55,897 50,331 $ 1,716,681 $ 1,555,109 $ 721,566 $ 656,553 |
Schedule of Unrealized Loss on Investments | The following tables presents a summary of available-for-sale investment securities in an unrealized loss position: March 31, 2023 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 31,351 $ 671 $ 224,294 $ 23,279 $ 255,645 $ 23,950 Obligations of states and political subdivisions 1,954 165 424,582 73,078 426,536 73,243 Agency mortgage-backed securities 198,052 6,861 407,782 53,887 605,834 60,748 U.S. Treasury bills 150,570 2,153 23,795 1,362 174,365 3,515 Corporate debt securities 3,664 336 4,243 507 7,907 843 $ 385,591 $ 10,186 $ 1,084,696 $ 152,113 $ 1,470,287 $ 162,299 December 31, 2022 Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 73,738 $ 6,249 $ 163,047 $ 22,056 $ 236,785 $ 28,305 Obligations of states and political subdivisions 103,179 13,501 311,634 76,924 414,813 90,425 Agency mortgage-backed securities 334,431 20,038 281,321 48,942 615,752 68,980 U.S. Treasury bills 198,688 4,908 — — 198,688 4,908 Corporate debt securities 12,640 1,110 — — 12,640 1,110 $ 722,676 $ 45,806 $ 756,002 $ 147,922 $ 1,478,678 $ 193,728 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Non-covered Loans [Line Items] | |
Summary of Recorded Investment by Risk Category of Portfolio Loans by Portfolio Class and Category | The current-period gross charge-offs by loan class and year of origination is presented in the following table: March 31, 2023 Term Loans by Origination Year (in thousands) 2022 2021 Prior Revolving Loans Total Commercial and industrial $ 1 $ — $ — $ 570 $ 571 Real estate: Commercial - investor owned — 170 — — 170 Construction and land development — — 9 — 9 Residential — — 102 — 102 Other — — 3 — 3 Total current-period gross charge-offs by risk rating $ 1 $ 170 $ 114 $ 570 $ 855 Total current-period gross charge-offs by performing status 325 Total current-period gross charge-offs $ 1,180 The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated: March 31, 2023 Term Loans by Origination Year (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 446,623 $ 1,294,156 $ 487,289 $ 296,880 $ 163,807 $ 107,963 $ 9,928 $ 1,003,625 $ 3,810,271 Special Mention (7) 11,145 21,894 17,320 13,862 477 11,766 — 68,846 145,310 Classified (8-9) 5,570 10,929 5,569 1,497 23 452 175 27,903 52,118 Total Commercial and industrial $ 463,338 $ 1,326,979 $ 510,178 $ 312,239 $ 164,307 $ 120,181 $ 10,103 $ 1,100,374 $ 4,007,699 Commercial real estate-investor owned Pass (1-6) $ 133,638 $ 649,170 $ 571,133 $ 385,909 $ 217,109 $ 293,114 $ 1,701 $ 60,720 $ 2,312,494 Special Mention (7) — 26,002 5,241 23,260 10,952 12,909 — — 78,364 Classified (8-9) — 1,809 — 462 639 5,845 49 — 8,804 Total Commercial real estate-investor owned $ 133,638 $ 676,981 $ 576,374 $ 409,631 $ 228,700 $ 311,868 $ 1,750 $ 60,720 $ 2,399,662 Commercial real estate-owner occupied Pass (1-6) $ 113,180 $ 520,215 $ 527,516 $ 348,955 $ 205,503 $ 371,027 $ — $ 57,489 $ 2,143,885 Special Mention (7) 9,608 5,946 4,862 19,644 4,459 13,660 4,962 300 63,441 Classified (8-9) — — 2,214 5,025 9,412 27,511 — 595 44,757 Total Commercial real estate-owner occupied $ 122,788 $ 526,161 $ 534,592 $ 373,624 $ 219,374 $ 412,198 $ 4,962 $ 58,384 $ 2,252,083 Construction real estate Pass (1-6) $ 106,759 $ 288,291 $ 198,719 $ 51,005 $ 2,931 $ 10,045 $ — $ 1,637 $ 659,387 Special Mention (7) — 1,284 — 146 145 217 — — 1,792 Classified (8-9) 1,201 396 — — 13 475 — — 2,085 Total Construction real estate $ 107,960 $ 289,971 $ 198,719 $ 51,151 $ 3,089 $ 10,737 $ — $ 1,637 $ 663,264 Residential real estate Pass (1-6) $ 9,606 $ 50,504 $ 54,407 $ 37,471 $ 20,438 $ 94,722 $ 774 $ 91,520 $ 359,442 Special Mention (7) — 329 — — 77 1,119 — — 1,525 Classified (8-9) — 119 72 — 51 2,039 — 75 2,356 Total residential real estate $ 9,606 $ 50,952 $ 54,479 $ 37,471 $ 20,566 $ 97,880 $ 774 $ 91,595 $ 363,323 Other Pass (1-6) $ 960 $ 60,165 $ 85,417 $ 55,789 $ 9,973 $ 26,899 $ — $ 6,833 $ 246,036 Special Mention (7) — — — — — — — — — Classified (8-9) — — — — 2 12 — — 14 Total Other $ 960 $ 60,165 $ 85,417 $ 55,789 $ 9,975 $ 26,911 $ — $ 6,833 $ 246,050 Total loans classified by risk category $ 838,290 $ 2,931,209 $ 1,959,759 $ 1,239,905 $ 646,011 $ 979,775 $ 17,589 $ 1,319,543 $ 9,932,081 Total loans classified by performing status 79,837 Total loans $ 10,011,918 December 31, 2022 Term Loans by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,403,381 $ 635,275 $ 332,740 $ 172,127 $ 62,729 $ 66,152 $ 8,388 $ 964,592 $ 3,645,384 Special Mention (7) 37,048 10,836 13,858 423 7,995 4,102 — 72,944 147,206 Classified (8-9) 16,176 4,457 1,627 24 166 183 — 21,349 43,982 Total Commercial and industrial $ 1,456,605 $ 650,568 $ 348,225 $ 172,574 $ 70,890 $ 70,437 $ 8,388 $ 1,058,885 $ 3,836,572 Commercial real estate-investor owned Pass (1-6) $ 667,107 $ 584,644 $ 392,402 $ 240,033 $ 115,530 $ 202,661 $ 1,457 $ 53,051 $ 2,256,885 Special Mention (7) 18,844 5,751 23,502 11,605 — 13,063 — — 72,765 Classified (8-9) 1,823 — 465 953 193 6,092 49 — 9,575 Total Commercial real estate-investor owned $ 687,774 $ 590,395 $ 416,369 $ 252,591 $ 115,723 $ 221,816 $ 1,506 $ 53,051 $ 2,339,225 Commercial real estate-owner occupied Pass (1-6) $ 539,610 $ 555,690 $ 362,150 $ 232,335 $ 123,095 $ 270,613 $ — $ 57,308 $ 2,140,801 Special Mention (7) 11,164 3,801 16,856 4,455 13,043 9,009 — 800 59,128 Classified (8-9) — 1,572 3,483 8,910 15,873 11,387 — — 41,225 Total Commercial real estate-owner occupied $ 550,774 $ 561,063 $ 382,489 $ 245,700 $ 152,011 $ 291,009 $ — $ 58,108 $ 2,241,154 Construction real estate Pass (1-6) $ 290,146 $ 232,998 $ 53,129 $ 2,909 $ 2,061 $ 8,480 $ — $ 1,769 $ 591,492 Special Mention (7) 17,331 — 681 146 111 106 — — 18,375 Classified (8-9) 1,192 — — 14 471 21 — — 1,698 Total Construction real estate $ 308,669 $ 232,998 $ 53,810 $ 3,069 $ 2,643 $ 8,607 $ — $ 1,769 $ 611,565 Residential real estate Pass (1-6) $ 63,317 $ 60,910 $ 48,796 $ 20,943 $ 11,259 $ 88,795 $ 579 $ 96,304 $ 390,903 Special Mention (7) 331 — — 79 352 781 — — 1,543 Classified (8-9) 121 73 — 53 1,102 994 — 5 2,348 Total residential real estate $ 63,769 $ 60,983 $ 48,796 $ 21,075 $ 12,713 $ 90,570 $ 579 $ 96,309 $ 394,794 Other Pass (1-6) $ 38,753 $ 88,613 $ 56,252 $ 10,556 $ 20,508 $ 10,796 $ — $ 9,536 $ 235,014 Special Mention (7) — — — — — — — — — Classified (8-9) — — — 4 3 11 3 4 25 Total Other $ 38,753 $ 88,613 $ 56,252 $ 10,560 $ 20,511 $ 10,807 $ 3 $ 9,540 $ 235,039 Total loans classified by risk category $ 3,106,344 $ 2,184,620 $ 1,305,941 $ 705,569 $ 374,491 $ 693,246 $ 10,476 $ 1,277,662 $ 9,658,349 Total loans classified by performing status 78,789 Total loans $ 9,737,138 The following tables present the recorded investment on loans based on payment activity as of the dates indicated: March 31, 2023 (in thousands) Performing Non Performing Total Commercial and industrial $ 24,417 $ 73 $ 24,490 Real estate: Commercial - investor owned 18,417 — 18,417 Commercial - owner occupied 29,140 — 29,140 Residential 736 — 736 Other 7,042 12 7,054 Total $ 79,752 $ 85 $ 79,837 December 31, 2022 (in thousands) Performing Non Performing Total Commercial and industrial $ 23,240 $ 70 $ 23,310 Real estate: Commercial - investor owned 18,595 — 18,595 Commercial - owner occupied 29,397 — 29,397 Residential 743 — 743 Other 6,672 72 6,744 Total $ 78,647 $ 142 $ 78,789 |
Loan Modification | The following table shows loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted: Term Extension (in thousands) March 31, 2023 % of Total Class of Financing Receivable Commercial and industrial $ 22,818 0.57 % Real estate: Construction and land development 1,201 0.18 % Total $ 24,019 |
Portfolio loans, net | |
Non-covered Loans [Line Items] | |
Summary of Portfolio Loans by Category | The following table presents a summary of loans by category: (in thousands) March 31, 2023 December 31, 2022 Commercial and industrial $ 4,032,189 $ 3,859,964 Real estate: Commercial - investor owned 2,418,079 2,357,820 Commercial - owner occupied 2,281,223 2,270,551 Construction and land development 663,264 611,565 Residential 364,059 395,537 Total real estate loans 5,726,625 5,635,473 Other 260,001 248,990 Loans, before unearned loan fees 10,018,815 9,744,427 Unearned loan fees, net (6,897) (7,289) Loans, including unearned loan fees $ 10,011,918 $ 9,737,138 |
Summary of Allowance for Loan Losses and the Recorded Investment in Portfolio Loans by Class and Category Based on Impairment Method | A summary of the activity in the ACL on loans by category for the three months ended March 31, 2023 and 2022 is as follows: (in thousands) Commercial and industrial CRE - investor owned CRE - Construction and land development Residential real estate Other Total Allowance for credit losses on loans: Balance at December 31, 2022 $ 53,835 $ 36,191 $ 22,752 $ 11,444 $ 7,928 $ 4,782 $ 136,932 Provision (benefit) for credit losses 5,083 222 (440) (2,578) (1,151) (37) 1,099 Charge-offs (707) (170) — (9) (102) (192) (1,180) Recoveries 938 23 16 32 322 113 1,444 Balance at March 31, 2023 $ 59,149 $ 36,266 $ 22,328 $ 8,889 $ 6,997 $ 4,666 $ 138,295 (in thousands) Commercial and industrial CRE - investor owned CRE - Construction and land development Residential real estate Other Total Allowance for credit losses on loans: Balance at December 31, 2021 $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Provision (benefit) for credit losses (1,481) 121 (582) (1,574) (456) (336) (4,308) Charge-offs (2,159) — (180) — (887) (86) (3,312) Recoveries 790 196 240 21 525 19 1,791 Balance at March 31, 2022 $ 60,975 $ 36,194 $ 17,038 $ 12,983 $ 7,109 $ 4,913 $ 139,212 |
Schedule of Recorded Investment in Nonperforming Loans by Category | The following tables present the recorded investment in nonperforming loans by category: March 31, 2023 (in thousands) Nonaccrual Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 5,252 $ 73 $ 5,325 $ 1,002 Real estate: Commercial - investor owned 3,887 — 3,887 — Commercial - owner occupied 1,547 — 1,547 — Construction and land development 1,201 — 1,201 1,201 Other — 12 12 — Total $ 11,887 $ 85 $ 11,972 $ 2,203 December 31, 2022 (in thousands) Nonaccrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 4,373 $ — $ 70 $ 4,443 $ 1,047 Real estate: Commercial - investor owned 3,023 — — 3,023 — Commercial - owner occupied 1,177 — — 1,177 — Construction and land development 1,192 — — 1,192 1,192 Residential — 73 — 73 — Other 1 — 72 73 — Total $ 9,766 $ 73 $ 142 $ 9,981 $ 2,239 |
Schedule of Collateral Dependent Loans | Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated: March 31, 2023 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ 950 $ 1,002 Real estate: Commercial - investor owned 2,177 773 — Commercial - owner occupied 1,547 — — Construction and land development 1,201 Residential — — — Total $ 3,724 $ 2,924 $ 1,002 December 31, 2022 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ — $ 1,047 Real estate: Commercial - investor owned 2,238 785 — Commercial - owner occupied 1,177 — — Construction and land development — 1,192 — Residential — 73 — Total $ 3,415 $ 2,050 $ 1,047 |
Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category | The aging of the recorded investment in past due loans by class is presented as of the dates indicated. March 31, 2023 (in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 3,244 $ 1,894 $ 5,138 $ 4,027,051 $ 4,032,189 Real estate: Commercial - investor owned 2,086 1,098 3,184 2,414,895 2,418,079 Commercial - owner occupied 2,780 4,084 6,864 2,274,359 2,281,223 Construction and land development 396 — 396 662,868 663,264 Residential 2,414 — 2,414 361,645 364,059 Other 151 12 163 259,838 260,001 Loans, before unearned loan fees $ 11,071 $ 7,088 $ 18,159 $ 10,000,656 $ 10,018,815 Unearned loan fees, net (6,897) Total $ 10,011,918 December 31, 2022 (in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 555 $ 2,373 $ 2,928 $ 3,857,036 $ 3,859,964 Real estate: Commercial - investor owned — 1,135 1,135 2,356,685 2,357,820 Commercial - owner occupied 8,628 164 8,792 2,261,759 2,270,551 Construction and land development 9 1,192 1,201 610,364 611,565 Residential 1,227 — 1,227 394,310 395,537 Other 18 72 90 248,900 248,990 Loans, before unearned loan fees $ 10,437 $ 4,936 $ 15,373 $ 9,729,054 $ 9,744,427 Unearned loan fees, net (7,289) Total $ 9,737,138 |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The contractual amounts of off-balance-sheet financial instruments are as follows: (in thousands) March 31, 2023 December 31, 2022 Commitments to extend credit $ 3,053,927 $ 3,113,966 Letters of credit 94,361 68,544 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the Company’s derivative financial instruments: Notional Amount Derivative Assets Derivative Liabilities (in thousands) March 31, December 31, 2022 March 31, December 31, 2022 March 31, December 31, 2022 Derivatives Designated as Hedging Instruments: Interest rate swap $ 211,962 $ 161,962 $ 2,455 $ 2,348 $ 86 $ 921 Interest rate collar 100,000 100,000 751 — — 48 Total $ 3,206 $ 2,348 $ 86 $ 969 Derivatives not Designated as Hedging Instruments: Interest rate swap $ 705,097 $ 687,902 $ 16,769 $ 20,610 $ 16,772 $ 20,612 The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments subject to offsetting. The gross amounts of assets or liabilities can be reconciled to the tabular disclosure of fair value. The fair value table above provides the location financial assets and liabilities are presented on the Balance Sheet. As of March 31, 2023 Gross Amounts Not Offset in the Statement of Financial Position (in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Received/ Pledged Net Amount Assets: Interest rate swap $ 19,224 $ — $ 19,224 $ (1,290) $ 17,934 $ — Interest rate collar 751 — 751 — — 751 Liabilities: Interest rate swap $ 16,858 $ — $ 16,858 $ (1,290) $ — $ 15,568 Securities sold under agreements to repurchase 161,573 — 161,573 — 161,573 — As of December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position (in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Received/ Pledged Net Amount Assets: Interest rate swap $ 22,958 $ — $ 22,958 $ — $ 9,010 $ 13,948 Liabilities: Interest rate swap $ 21,533 $ — $ 21,533 $ — $ — $ 21,533 Interest rate collar 48 — 48 — — 48 Securities sold under agreements to repurchase 270,773 — 270,773 — 270,773 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table summarizes financial instruments measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2023 (in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available for sale Obligations of U.S. Government-sponsored enterprises $ — $ 265,705 $ — $ 265,705 Obligations of states and political subdivisions — 430,693 — 430,693 Agency mortgage-backed securities — 650,451 — 650,451 U.S. Treasury bills — 200,103 — 200,103 Corporate debt securities — 8,157 — 8,157 Total securities available for sale — 1,555,109 — 1,555,109 Other investments — 2,770 — 2,770 Derivatives — 19,975 — 19,975 Total assets $ — $ 1,577,854 $ — $ 1,577,854 Liabilities Derivatives $ — $ 16,858 $ — $ 16,858 Total liabilities $ — $ 16,858 $ — $ 16,858 December 31, 2022 (in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available for sale Obligations of U.S. Government-sponsored enterprises $ — $ 237,785 $ — $ 237,785 Obligations of states and political subdivisions — 417,444 — 417,444 Residential mortgage-backed securities — 659,404 — 659,404 U.S. Treasury bills — 208,534 — 208,534 Corporate debt securities — 12,640 — 12,640 Total securities available-for-sale — 1,535,807 — 1,535,807 Other investments — 2,667 — 2,667 Derivative financial instruments — 22,958 — 22,958 Total assets $ — $ 1,561,432 $ — $ 1,561,432 Liabilities Derivatives $ — $ 21,581 $ — $ 21,581 Total liabilities $ — $ 21,581 $ — $ 21,581 |
Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis | These include assets measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The amounts reported in the following tables include balances measured at fair value during the reporting period and still held as of the reporting date. March 31, 2023 (in thousands) Total Fair Value Quoted Prices in Active Significant Significant Loan servicing asset 1,004 — 1,004 — December 31, 2022 (in thousands) Total Fair Value Quoted Prices in Active Significant Significant Other real estate 269 — — 269 Loan servicing asset 1,027 1,027 — Total $ 1,296 $ — $ 1,027 $ 269 |
Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets | Following is a summary of the carrying amounts and fair values of certain financial instruments: March 31, 2023 December 31, 2022 (in thousands) Carrying Amount Estimated fair value Level Carrying Amount Estimated fair value Level Balance sheet assets Securities held-to-maturity, net $ 720,694 $ 656,553 Level 2 $ 709,915 $ 628,517 Level 2 Other investments 60,173 60,173 Level 2 61,123 61,123 Level 2 Loans held for sale 261 261 Level 2 1,228 1,228 Level 2 Loans, net 9,873,623 $ 9,587,197 Level 3 9,600,206 9,328,844 Level 3 State tax credits, held for sale 27,308 28,933 Level 3 27,700 28,880 Level 3 Servicing asset 3,343 4,342 Level 2 3,648 3,905 Level 2 Balance sheet liabilities Certificates of deposit $ 893,673 $ 877,954 Level 3 $ 530,708 $ 512,229 Level 3 Subordinated debentures and notes 155,569 150,559 Level 2 155,433 152,679 Level 2 FHLB advances 100,000 100,000 Level 2 100,000 100,004 Level 2 Other borrowings 213,489 213,489 Level 2 324,119 324,119 Level 2 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table present the changes in accumulated other comprehensive income after-tax by component: Three months ended (in thousands) Net Unrealized Gain (Loss) on Available-for-Sale Securities Unamortized Gain (Loss) on Held-to-Maturity Securities Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balance, December 31, 2022 $ (144,549) $ 13,185 $ 1,032 $ (130,332) Net change $ 23,693 $ (638) $ 1,302 $ 24,357 Balance, March 31, 2023 $ (120,856) $ 12,547 $ 2,334 $ (105,975) Balance, December 31, 2021 $ 5,271 $ 15,684 $ (2,178) $ 18,777 Net change $ (79,353) $ (704) $ 2,020 $ (78,037) Transfer from available-for-sale to held-to-maturity (197) 197 — — Balance, March 31, 2022 $ (74,279) $ 15,177 $ (158) $ (59,260) |
Schedule of Pre-tax and After-tax Changes in the Components of Other Comprehensive Income | The following tables present the pre-tax and after-tax changes in the components of other comprehensive income: Three months ended March 31, 2023 2022 (in thousands) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Change in unrealized gain (loss) on available-for-sale securities $ 32,056 $ 8,078 $ 23,978 $ (106,087) $ (26,734) $ (79,353) Reclassification of gain on sale of available-for-sale securities (a) (381) (96) (285) — — — Reclassification of gain on held-to-maturity securities (b) (852) (214) (638) (941) (237) (704) Change in unrealized gain on cash flow hedges 1,705 430 1,275 2,341 590 1,751 Reclassification of loss on cash flow hedges (b) 36 9 27 359 90 269 Total other comprehensive income (loss) $ 32,564 $ 8,207 $ 24,357 $ (104,328) $ (26,291) $ (78,037) (a) The pre-tax amount is reported in noninterest income/expense in the Consolidated Statements of Operations (b) The pre-tax amount is reported in interest income/expense in the Consolidated Statements of Income. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | The following table presents miscellaneous income and other expense components that primarily exceed one percent of the aggregate of total interest income and other income in one or more of the periods indicated: Three months ended March 31, (in thousands) 2023 2022 Other income: Bank-owned life insurance $ 791 $ 1,034 Community development fees 595 2,166 Other income 4,717 3,008 Total other noninterest income $ 6,103 $ 6,208 Other expense: Amortization of intangibles $ 1,239 $ 1,430 Banking expense 1,848 1,501 Deposit costs 12,720 4,260 FDIC and other insurance 2,572 1,855 Loan, legal expenses 1,904 1,733 Outside services 1,545 1,262 Other expense 7,250 5,909 Total other noninterest expense $ 29,078 $ 17,950 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 54,800 | $ 46,464 |
Weighted average common shares outstanding (in shares) | 37,305,000 | 37,788,000 |
Additional dilutive common stock equivalents (in shares) | 182,000 | 70,000 |
Weighted average diluted common shares outstanding (in shares) | 37,487,000 | 37,858,000 |
Basic earnings per common share (in dollars per share) | $ 1.47 | $ 1.23 |
Diluted earnings per common share (in dollars per share) | $ 1.46 | $ 1.23 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 311,000 | 276,000 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | $ 721,566 | $ 710,650 |
Gross Unrealized Gains | 5,309 | 2,484 |
Gross Unrealized Losses | (70,322) | (84,617) |
Allowance for Credit Losses | (872) | (735) |
Fair Value | 656,553 | 628,517 |
Securities held-to-maturity, net | 720,694 | 709,915 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 1,716,681 | 1,729,054 |
Gross Unrealized Gains | 727 | 481 |
Gross Unrealized Losses | (162,299) | (193,728) |
Securities available-for-sale | 1,555,109 | 1,535,807 |
Obligations of U.S. Government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 289,560 | 266,090 |
Gross Unrealized Gains | 95 | 0 |
Gross Unrealized Losses | (23,950) | (28,305) |
Securities available-for-sale | 265,705 | 237,785 |
Obligations of states and political subdivisions | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 541,345 | 529,012 |
Gross Unrealized Gains | 5,133 | 2,321 |
Gross Unrealized Losses | (54,232) | (65,347) |
Fair Value | 492,246 | 465,986 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 503,883 | 507,842 |
Gross Unrealized Gains | 53 | 27 |
Gross Unrealized Losses | (73,243) | (90,425) |
Securities available-for-sale | 430,693 | 417,444 |
Agency mortgage-backed securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 55,897 | 57,018 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5,566) | (6,416) |
Fair Value | 50,331 | 50,602 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 710,642 | 727,931 |
Gross Unrealized Gains | 557 | 453 |
Gross Unrealized Losses | (60,748) | (68,980) |
Securities available-for-sale | 650,451 | 659,404 |
U.S. Treasury bills | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 203,596 | 213,441 |
Gross Unrealized Gains | 22 | 1 |
Gross Unrealized Losses | (3,515) | (4,908) |
Securities available-for-sale | 200,103 | 208,534 |
Corporate debt securities | ||
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 124,324 | 124,620 |
Gross Unrealized Gains | 176 | 163 |
Gross Unrealized Losses | (10,524) | (12,854) |
Fair Value | 113,976 | 111,929 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 9,000 | 13,750 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (843) | (1,110) |
Securities available-for-sale | $ 8,157 | $ 12,640 |
Investments - Investments Class
Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available for sale, Amortized Cost | ||
Due in one year or less | $ 97,485 | |
Due after one year through five years | 370,543 | |
Due after five years through ten years | 70,480 | |
Due after ten years | 467,531 | |
Agency mortgage-backed securities | 710,642 | |
Amortized Cost | 1,716,681 | $ 1,729,054 |
Available for sale, Estimated Fair Value | ||
Due in one year or less | 97,369 | |
Due after one year through five years | 347,074 | |
Due after five years through ten years | 64,238 | |
Due after ten years | 395,977 | |
Agency mortgage-backed securities | 650,451 | |
Securities available-for-sale | 1,555,109 | 1,535,807 |
Held to maturity, Amortized Cost | ||
Due in one year or less | 720 | |
Due after one year through five years | 50,396 | |
Due after five years through ten years | 187,914 | |
Due after ten years | 426,639 | |
Agency mortgage-backed securities | 55,897 | |
Amortized Cost | 721,566 | 710,650 |
Held to maturity, Estimated Fair Value | ||
Due in one year or less | 720 | |
Due after one year through five years | 47,082 | |
Due after five years through ten years | 177,985 | |
Due after ten years | 380,435 | |
Agency mortgage-backed securities | 50,331 | |
Fair Value | $ 656,553 | $ 628,517 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 385,591 | $ 722,676 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 10,186 | 45,806 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 1,084,696 | 756,002 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 152,113 | 147,922 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1,470,287 | 1,478,678 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 162,299 | 193,728 |
Obligations of U.S. Government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 31,351 | 73,738 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 671 | 6,249 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 224,294 | 163,047 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 23,279 | 22,056 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 255,645 | 236,785 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 23,950 | 28,305 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,954 | 103,179 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 165 | 13,501 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 424,582 | 311,634 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 73,078 | 76,924 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 426,536 | 414,813 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 73,243 | 90,425 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 198,052 | 334,431 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6,861 | 20,038 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 407,782 | 281,321 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 53,887 | 48,942 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 605,834 | 615,752 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 60,748 | 68,980 |
U.S. Treasury bills | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 3,664 | 12,640 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 336 | 1,110 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 4,243 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 507 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 7,907 | 12,640 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 843 | 1,110 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 150,570 | 198,688 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2,153 | 4,908 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 23,795 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,362 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 174,365 | 198,688 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 3,515 | $ 4,908 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2023 | Jan. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Debt Securities, Available-for-sale, Amortized Cost | $ 1,716,681,000 | $ 1,716,681,000 | $ 1,729,054,000 | ||
Cumulative net unamortized unrealized gain | $ 727,000 | $ 727,000 | $ 481,000 | ||
Maximum percentage of shareholders' equity security holdings held of one issuer | 10% | 10% | 10% | ||
Securities pledged | $ 1,800,000,000 | $ 1,800,000,000 | $ 734,500,000 | ||
Mortgage-backed securities, weighted average life | 6 years | ||||
Provision for credit losses on available-for-sale securities | 4,800,000 | ||||
Charge-off | 4,800,000 | ||||
Allowance for credit losses on available-for-sale securities | 0 | $ 0 | 0 | ||
Accrued interest receivable, held-to-maturity securities | 6,600,000 | 6,600,000 | 5,800,000 | ||
Allowance for credit losses on held-to-maturity debt securities | (872,000) | (872,000) | (735,000) | ||
Sale of debt securities, available-for-sale | $ 28,400,000 | 28,741,000 | $ 0 | ||
Debt Securities, Available-for-sale, Realized Gain | $ 400,000 | ||||
Other investments, at cost | 62,943,000 | 62,943,000 | 63,790,000 | ||
Reclassified to Held to Maturity | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cumulative net unamortized unrealized gain | 16,800,000 | 16,800,000 | 17,600,000 | ||
Des Moines | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Other investments, at cost | $ 14,000,000 | $ 14,000,000 | $ 14,000,000 |
Loans - Summary of Portfolio Lo
Loans - Summary of Portfolio Loans by Category (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | $ 10,011,918 | $ 9,737,138 |
Portfolio loans, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 10,018,815 | 9,744,427 |
Unearned loan fees, net | (6,897) | (7,289) |
Loans and Lease Receivable, Including Unearned Loan Fees | 10,011,918 | 9,737,138 |
Portfolio loans, net | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 4,032,189 | 3,859,964 |
Portfolio loans, net | Commercial - investor owned | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 2,418,079 | 2,357,820 |
Portfolio loans, net | Commercial - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 2,281,223 | 2,270,551 |
Portfolio loans, net | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 663,264 | 611,565 |
Portfolio loans, net | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 364,059 | 395,537 |
Portfolio loans, net | Total real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 5,726,625 | 5,635,473 |
Portfolio loans, net | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | $ 260,001 | $ 248,990 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) loan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | $ 10,300,000 | $ 11,900,000 | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 3,400,000,000 | 2,800,000,000 | ||
Proceeds from sale of SBA loans | 8,800,000 | $ 0 | ||
Gain on sale of SBA loans | 501,000 | 0 | ||
Allowance for credit loss adjustment | 43,200,000 | |||
Nonperforming loan balances, excluding government guaranteed balances | $ 6,800,000 | 6,700,000 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Term extensions from modifications (in months) | 2 months | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Term extensions from modifications (in months) | 12 months | |||
Other Assets | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accrued interest receivable | $ 44,700,000 | 48,100,000 | ||
Enterprise Value Lending Portfolio Niche Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit loss adjustment | 13,800,000 | |||
Non-Covered Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, allowance for credit loss | 138,295,000 | 139,212,000 | 136,932,000 | $ 145,041,000 |
Interest income on nonaccrual loans | 0 | $ 0 | ||
Number of loans restructured | loan | 0 | |||
Number of troubled debt restructuring subsequently defaulted | loan | 0 | |||
Non-Covered Loans | Enterprise Value Lending Portfolio Niche Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, allowance for credit loss | 21,000,000 | |||
Non-Covered Loans | Agriculture Portfolio Niche Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, allowance for credit loss | $ 16,100,000 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Non-Covered Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, allowance for credit loss | $ 14,200,000 |
Loans - Summary of Allowance fo
Loans - Summary of Allowance for Loan Losses by Portfolio Class and Category (Details) - Portfolio loans, net - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | $ 136,932 | $ 145,041 |
Provision (benefit) for credit losses | (1,099) | 4,308 |
Charge-offs | (1,180) | (3,312) |
Recoveries | 1,444 | 1,791 |
Ending Balance | 138,295 | 139,212 |
Commercial and industrial | ||
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | 53,835 | 63,825 |
Provision (benefit) for credit losses | (5,083) | 1,481 |
Charge-offs | (707) | (2,159) |
Recoveries | 938 | 790 |
Ending Balance | 59,149 | 60,975 |
CRE - investor owned | ||
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | 36,191 | 35,877 |
Provision (benefit) for credit losses | (222) | (121) |
Charge-offs | (170) | 0 |
Recoveries | 23 | 196 |
Ending Balance | 36,266 | 36,194 |
CRE - owner occupied | ||
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | 22,752 | 17,560 |
Provision (benefit) for credit losses | 440 | 582 |
Charge-offs | 0 | (180) |
Recoveries | 16 | 240 |
Ending Balance | 22,328 | 17,038 |
Construction and land development | ||
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | 11,444 | 14,536 |
Provision (benefit) for credit losses | 2,578 | 1,574 |
Charge-offs | (9) | 0 |
Recoveries | 32 | 21 |
Ending Balance | 8,889 | 12,983 |
Residential real estate | ||
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | 7,928 | 7,927 |
Provision (benefit) for credit losses | 1,151 | 456 |
Charge-offs | (102) | (887) |
Recoveries | 322 | 525 |
Ending Balance | 6,997 | 7,109 |
Other | ||
Allowance for Loan Losses [Roll Forward] | ||
Beginning Balance | 4,782 | 5,316 |
Provision (benefit) for credit losses | 37 | 336 |
Charge-offs | (192) | (86) |
Recoveries | 113 | 19 |
Ending Balance | $ 4,666 | $ 4,913 |
Loans - Gross Chargeoffs (Detai
Loans - Gross Chargeoffs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 1,180 |
Risk Rating | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 1 |
2021 | 170 |
Prior | 114 |
Revolving Loans | 570 |
Total | 855 |
Performing | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 325 |
Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 1 |
2021 | 0 |
Prior | 0 |
Revolving Loans | 570 |
Total | 571 |
Commercial - investor owned | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 0 |
2021 | 170 |
Prior | 0 |
Revolving Loans | 0 |
Total | 170 |
Construction and land development | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 0 |
2021 | 0 |
Prior | 9 |
Revolving Loans | 0 |
Total | 9 |
Residential real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 0 |
2021 | 0 |
Prior | 102 |
Revolving Loans | 0 |
Total | 102 |
Other | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2022 | 0 |
2021 | 0 |
Prior | 3 |
Revolving Loans | 0 |
Total | $ 3 |
Loans - Recorded Investment in
Loans - Recorded Investment in Nonperforming Loans by Category (Details) - Non-Covered Loans - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | $ 11,887 | $ 9,766 |
Restructured, accruing | 73 | |
Loans over 90 days past due and still accruing interest | 85 | 142 |
Total nonperforming loans | 11,972 | 9,981 |
Nonaccrual loans with no allowance | 2,203 | 2,239 |
Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 3,724 | 3,415 |
Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 2,924 | 2,050 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | 5,252 | 4,373 |
Restructured, accruing | 0 | |
Loans over 90 days past due and still accruing interest | 73 | 70 |
Total nonperforming loans | 5,325 | 4,443 |
Nonaccrual loans with no allowance | 1,002 | 1,047 |
Commercial and industrial | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
Commercial and industrial | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 950 | 0 |
Commercial - investor owned | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | 3,887 | 3,023 |
Restructured, accruing | 0 | |
Loans over 90 days past due and still accruing interest | 0 | 0 |
Total nonperforming loans | 3,887 | 3,023 |
Nonaccrual loans with no allowance | 0 | 0 |
Commercial - investor owned | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 2,177 | 2,238 |
Commercial - investor owned | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 773 | 785 |
CRE - owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | 1,547 | 1,177 |
Restructured, accruing | 0 | |
Loans over 90 days past due and still accruing interest | 0 | 0 |
Total nonperforming loans | 1,547 | 1,177 |
Nonaccrual loans with no allowance | 0 | 0 |
CRE - owner occupied | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,547 | 1,177 |
CRE - owner occupied | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
Construction and land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | 1,201 | 1,192 |
Restructured, accruing | 0 | |
Loans over 90 days past due and still accruing interest | 0 | 0 |
Total nonperforming loans | 1,201 | 1,192 |
Nonaccrual loans with no allowance | 1,201 | 1,192 |
Construction and land development | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | |
Construction and land development | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,201 | 1,192 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | 0 | |
Restructured, accruing | 73 | |
Loans over 90 days past due and still accruing interest | 0 | |
Total nonperforming loans | 73 | |
Nonaccrual loans with no allowance | 0 | |
Residential real estate | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
Residential real estate | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 73 |
Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Nonaccrual | 0 | 1 |
Restructured, accruing | 0 | |
Loans over 90 days past due and still accruing interest | 12 | 72 |
Total nonperforming loans | 12 | 73 |
Nonaccrual loans with no allowance | $ 0 | $ 0 |
Loans - Schedule of Collateral
Loans - Schedule of Collateral Dependent Loans (Details) - Non-Covered Loans - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | $ 11,972 | $ 9,981 |
Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 3,724 | 3,415 |
Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 2,924 | 2,050 |
Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,002 | 1,047 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 5,325 | 4,443 |
Commercial and industrial | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
Commercial and industrial | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 950 | 0 |
Commercial and industrial | Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,002 | 1,047 |
Commercial - investor owned | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 3,887 | 3,023 |
Commercial - investor owned | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 2,177 | 2,238 |
Commercial - investor owned | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 773 | 785 |
Commercial - investor owned | Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
CRE - owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,547 | 1,177 |
CRE - owner occupied | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,547 | 1,177 |
CRE - owner occupied | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
CRE - owner occupied | Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
Construction and land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,201 | 1,192 |
Construction and land development | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | |
Construction and land development | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 1,201 | 1,192 |
Construction and land development | Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 73 | |
Residential real estate | Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 0 |
Residential real estate | Residential Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | 0 | 73 |
Residential real estate | Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total nonperforming loans | $ 0 | $ 0 |
Loans - Summary of Aging of Rec
Loans - Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 10,011,918 | $ 9,737,138 |
Non-Covered Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 10,018,815 | 9,744,427 |
Loans, including unearned loan fees | 10,011,918 | 9,737,138 |
Unearned loan fees, net | (6,897) | (7,289) |
Financing Receivable, Covered, After Allowance For Credit Loss And Unearned Loan Fees, Net | 10,018,815 | 9,744,427 |
Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,032,189 | 3,859,964 |
Loans, including unearned loan fees | 4,032,189 | 3,859,964 |
Non-Covered Loans | CRE - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,418,079 | 2,357,820 |
Loans, including unearned loan fees | 2,418,079 | 2,357,820 |
Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,281,223 | 2,270,551 |
Loans, including unearned loan fees | 2,281,223 | 2,270,551 |
Non-Covered Loans | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 663,264 | 611,565 |
Loans, including unearned loan fees | 663,264 | 611,565 |
Non-Covered Loans | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 364,059 | 395,537 |
Loans, including unearned loan fees | 364,059 | 395,537 |
Non-Covered Loans | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 260,001 | 248,990 |
Loans, including unearned loan fees | 260,001 | 248,990 |
Total Past Due | Non-Covered Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 18,159 | 15,373 |
Total Past Due | Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,138 | 2,928 |
Total Past Due | Non-Covered Loans | CRE - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,184 | 1,135 |
Total Past Due | Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,864 | 8,792 |
Total Past Due | Non-Covered Loans | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 396 | 1,201 |
Total Past Due | Non-Covered Loans | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,414 | 1,227 |
Total Past Due | Non-Covered Loans | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 163 | 90 |
30-89 Days Past Due | Non-Covered Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 11,071 | 10,437 |
30-89 Days Past Due | Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,244 | 555 |
30-89 Days Past Due | Non-Covered Loans | CRE - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,086 | 0 |
30-89 Days Past Due | Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,780 | 8,628 |
30-89 Days Past Due | Non-Covered Loans | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 396 | 9 |
30-89 Days Past Due | Non-Covered Loans | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,414 | 1,227 |
30-89 Days Past Due | Non-Covered Loans | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 151 | 18 |
90 or More Days Past Due | Non-Covered Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 7,088 | 4,936 |
90 or More Days Past Due | Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,894 | 2,373 |
90 or More Days Past Due | Non-Covered Loans | CRE - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,098 | 1,135 |
90 or More Days Past Due | Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,084 | 164 |
90 or More Days Past Due | Non-Covered Loans | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 1,192 |
90 or More Days Past Due | Non-Covered Loans | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
90 or More Days Past Due | Non-Covered Loans | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12 | 72 |
Current | Non-Covered Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 10,000,656 | 9,729,054 |
Current | Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,027,051 | 3,857,036 |
Current | Non-Covered Loans | CRE - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,414,895 | 2,356,685 |
Current | Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,274,359 | 2,261,759 |
Current | Non-Covered Loans | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 662,868 | 610,364 |
Current | Non-Covered Loans | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 361,645 | 394,310 |
Current | Non-Covered Loans | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 259,838 | $ 248,900 |
Loans - Loan Modification (Deta
Loans - Loan Modification (Details) - Term Extension $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 24,019 |
Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 22,818 |
% of Total Class of Financing Receivable | 0.57% |
Construction and land development | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 1,201 |
% of Total Class of Financing Receivable | 0.18% |
Loans - Summary of Term Loans b
Loans - Summary of Term Loans by Origination Year (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 10,011,918 | $ 9,737,138 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 463,338 | |
2022 | 1,326,979 | 1,456,605 |
2021 | 510,178 | 650,568 |
2020 | 312,239 | 348,225 |
2019 | 164,307 | 172,574 |
2018 | 70,890 | |
Prior | 120,181 | |
Prior | 70,437 | |
Revolving Loans Converted to Term Loans | 10,103 | 8,388 |
Revolving Loans | 1,100,374 | 1,058,885 |
Total | 4,007,699 | 3,836,572 |
Commercial and industrial | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 446,623 | |
2022 | 1,294,156 | 1,403,381 |
2021 | 487,289 | 635,275 |
2020 | 296,880 | 332,740 |
2019 | 163,807 | 172,127 |
2018 | 62,729 | |
Prior | 107,963 | |
Prior | 66,152 | |
Revolving Loans Converted to Term Loans | 9,928 | 8,388 |
Revolving Loans | 1,003,625 | 964,592 |
Total | 3,810,271 | 3,645,384 |
Commercial and industrial | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 11,145 | |
2022 | 21,894 | 37,048 |
2021 | 17,320 | 10,836 |
2020 | 13,862 | 13,858 |
2019 | 477 | 423 |
2018 | 7,995 | |
Prior | 11,766 | |
Prior | 4,102 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 68,846 | 72,944 |
Total | 145,310 | 147,206 |
Commercial and industrial | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,570 | |
2022 | 10,929 | 16,176 |
2021 | 5,569 | 4,457 |
2020 | 1,497 | 1,627 |
2019 | 23 | 24 |
2018 | 166 | |
Prior | 452 | |
Prior | 183 | |
Revolving Loans Converted to Term Loans | 175 | 0 |
Revolving Loans | 27,903 | 21,349 |
Total | 52,118 | 43,982 |
Commercial real estate-investor owned | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 133,638 | |
2022 | 676,981 | 687,774 |
2021 | 576,374 | 590,395 |
2020 | 409,631 | 416,369 |
2019 | 228,700 | 252,591 |
2018 | 115,723 | |
Prior | 311,868 | |
Prior | 221,816 | |
Revolving Loans Converted to Term Loans | 1,750 | 1,506 |
Revolving Loans | 60,720 | 53,051 |
Total | 2,399,662 | 2,339,225 |
Commercial real estate-investor owned | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 133,638 | |
2022 | 649,170 | 667,107 |
2021 | 571,133 | 584,644 |
2020 | 385,909 | 392,402 |
2019 | 217,109 | 240,033 |
2018 | 115,530 | |
Prior | 293,114 | |
Prior | 202,661 | |
Revolving Loans Converted to Term Loans | 1,701 | 1,457 |
Revolving Loans | 60,720 | 53,051 |
Total | 2,312,494 | 2,256,885 |
Commercial real estate-investor owned | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 26,002 | 18,844 |
2021 | 5,241 | 5,751 |
2020 | 23,260 | 23,502 |
2019 | 10,952 | 11,605 |
2018 | 0 | |
Prior | 12,909 | |
Prior | 13,063 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 78,364 | 72,765 |
Commercial real estate-investor owned | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 1,809 | 1,823 |
2021 | 0 | 0 |
2020 | 462 | 465 |
2019 | 639 | 953 |
2018 | 193 | |
Prior | 5,845 | |
Prior | 6,092 | |
Revolving Loans Converted to Term Loans | 49 | 49 |
Revolving Loans | 0 | 0 |
Total | 8,804 | 9,575 |
Commercial real estate-owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 122,788 | |
2022 | 526,161 | 550,774 |
2021 | 534,592 | 561,063 |
2020 | 373,624 | 382,489 |
2019 | 219,374 | 245,700 |
2018 | 152,011 | |
Prior | 412,198 | |
Prior | 291,009 | |
Revolving Loans Converted to Term Loans | 4,962 | 0 |
Revolving Loans | 58,384 | 58,108 |
Total | 2,252,083 | 2,241,154 |
Commercial real estate-owner occupied | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 113,180 | |
2022 | 520,215 | 539,610 |
2021 | 527,516 | 555,690 |
2020 | 348,955 | 362,150 |
2019 | 205,503 | 232,335 |
2018 | 123,095 | |
Prior | 371,027 | |
Prior | 270,613 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 57,489 | 57,308 |
Total | 2,143,885 | 2,140,801 |
Commercial real estate-owner occupied | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 9,608 | |
2022 | 5,946 | 11,164 |
2021 | 4,862 | 3,801 |
2020 | 19,644 | 16,856 |
2019 | 4,459 | 4,455 |
2018 | 13,043 | |
Prior | 13,660 | |
Prior | 9,009 | |
Revolving Loans Converted to Term Loans | 4,962 | 0 |
Revolving Loans | 300 | 800 |
Total | 63,441 | 59,128 |
Commercial real estate-owner occupied | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | 0 |
2021 | 2,214 | 1,572 |
2020 | 5,025 | 3,483 |
2019 | 9,412 | 8,910 |
2018 | 15,873 | |
Prior | 27,511 | |
Prior | 11,387 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 595 | 0 |
Total | 44,757 | 41,225 |
Construction real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 107,960 | |
2022 | 289,971 | 308,669 |
2021 | 198,719 | 232,998 |
2020 | 51,151 | 53,810 |
2019 | 3,089 | 3,069 |
2018 | 2,643 | |
Prior | 10,737 | |
Prior | 8,607 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 1,637 | 1,769 |
Total | 663,264 | 611,565 |
Construction real estate | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 106,759 | |
2022 | 288,291 | 290,146 |
2021 | 198,719 | 232,998 |
2020 | 51,005 | 53,129 |
2019 | 2,931 | 2,909 |
2018 | 2,061 | |
Prior | 10,045 | |
Prior | 8,480 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 1,637 | 1,769 |
Total | 659,387 | 591,492 |
Construction real estate | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 1,284 | 17,331 |
2021 | 0 | 0 |
2020 | 146 | 681 |
2019 | 145 | 146 |
2018 | 111 | |
Prior | 217 | |
Prior | 106 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 1,792 | 18,375 |
Construction real estate | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,201 | |
2022 | 396 | 1,192 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 13 | 14 |
2018 | 471 | |
Prior | 475 | |
Prior | 21 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 2,085 | 1,698 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 9,606 | |
2022 | 50,952 | 63,769 |
2021 | 54,479 | 60,983 |
2020 | 37,471 | 48,796 |
2019 | 20,566 | 21,075 |
2018 | 12,713 | |
Prior | 97,880 | |
Prior | 90,570 | |
Revolving Loans Converted to Term Loans | 774 | 579 |
Revolving Loans | 91,595 | 96,309 |
Total | 363,323 | 394,794 |
Residential real estate | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 9,606 | |
2022 | 50,504 | 63,317 |
2021 | 54,407 | 60,910 |
2020 | 37,471 | 48,796 |
2019 | 20,438 | 20,943 |
2018 | 11,259 | |
Prior | 94,722 | |
Prior | 88,795 | |
Revolving Loans Converted to Term Loans | 774 | 579 |
Revolving Loans | 91,520 | 96,304 |
Total | 359,442 | 390,903 |
Residential real estate | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 329 | 331 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 77 | 79 |
2018 | 352 | |
Prior | 1,119 | |
Prior | 781 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 1,525 | 1,543 |
Residential real estate | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 119 | 121 |
2021 | 72 | 73 |
2020 | 0 | 0 |
2019 | 51 | 53 |
2018 | 1,102 | |
Prior | 2,039 | |
Prior | 994 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 75 | 5 |
Total | 2,356 | 2,348 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 960 | |
2022 | 60,165 | 38,753 |
2021 | 85,417 | 88,613 |
2020 | 55,789 | 56,252 |
2019 | 9,975 | 10,560 |
2018 | 20,511 | |
Prior | 26,911 | |
Prior | 10,807 | |
Revolving Loans Converted to Term Loans | 0 | 3 |
Revolving Loans | 6,833 | 9,540 |
Total | 246,050 | 235,039 |
Other | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 960 | |
2022 | 60,165 | 38,753 |
2021 | 85,417 | 88,613 |
2020 | 55,789 | 56,252 |
2019 | 9,973 | 10,556 |
2018 | 20,508 | |
Prior | 26,899 | |
Prior | 10,796 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 6,833 | 9,536 |
Total | 246,036 | 235,014 |
Other | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | |
Prior | 0 | |
Prior | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Other | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 2 | 4 |
2018 | 3 | |
Prior | 12 | |
Prior | 11 | |
Revolving Loans Converted to Term Loans | 0 | 3 |
Revolving Loans | 0 | 4 |
Total | 14 | 25 |
Total loans classified by risk category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 838,290 | 3,106,344 |
2022 | 2,931,209 | 2,184,620 |
2021 | 1,959,759 | 1,305,941 |
2020 | 1,239,905 | 705,569 |
2019 | 646,011 | 374,491 |
Prior | 979,775 | 693,246 |
Revolving Loans Converted to Term Loans | 17,589 | 10,476 |
Revolving Loans | 1,319,543 | 1,277,662 |
Total | 9,932,081 | 9,658,349 |
Total loans classified by performing status | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 79,837 | $ 78,789 |
Loans - Summary of Performing a
Loans - Summary of Performing and Non Performing Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | $ 79,837 | $ 78,789 |
Loans, before unearned loan fees | 10,011,918 | 9,737,138 |
Non-Covered Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 10,018,815 | 9,744,427 |
Non-Covered Loans | Commercial - investor owned | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 2,418,079 | 2,357,820 |
Non-Covered Loans | Commercial - investor owned | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 18,417 | 18,595 |
Non-Covered Loans | Commercial - investor owned | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 0 | 0 |
Non-Covered Loans | Commercial - investor owned | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 18,417 | 18,595 |
Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 2,281,223 | 2,270,551 |
Non-Covered Loans | CRE - owner occupied | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 29,140 | 29,397 |
Non-Covered Loans | CRE - owner occupied | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 0 | 0 |
Non-Covered Loans | CRE - owner occupied | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 29,140 | 29,397 |
Non-Covered Loans | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 663,264 | 611,565 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 79,752 | 78,647 |
Non Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 85 | 142 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 24,490 | 23,310 |
Loans, before unearned loan fees | 4,007,699 | 3,836,572 |
Commercial and industrial | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 3,810,271 | 3,645,384 |
Commercial and industrial | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 145,310 | 147,206 |
Commercial and industrial | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 52,118 | 43,982 |
Commercial and industrial | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 24,417 | 23,240 |
Commercial and industrial | Non Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 73 | 70 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 736 | 743 |
Loans, before unearned loan fees | 363,323 | 394,794 |
Residential real estate | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 359,442 | 390,903 |
Residential real estate | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 1,525 | 1,543 |
Residential real estate | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 2,356 | 2,348 |
Residential real estate | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 736 | 743 |
Residential real estate | Non Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 0 | 0 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 7,054 | 6,744 |
Loans, before unearned loan fees | 246,050 | 235,039 |
Other | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 246,036 | 235,014 |
Other | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 0 | 0 |
Other | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, before unearned loan fees | 14 | 25 |
Other | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | 7,042 | 6,672 |
Other | Non Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Investment on loans by payment activity | $ 12 | $ 72 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Unadvanced Commitment on Impaired Loan | ||
Schedule of Commitments [Line Items] | ||
Estimated losses attributable to unadvanced commitments on impaired loans | $ 10,200 | $ 12,100 |
Commitments to extend credit | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | 3,053,927 | 3,113,966 |
Commitments to extend credit | Fixed Rate Loan Commitment | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | 249,700 | 246,500 |
Letters of credit | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | $ 94,361 | $ 68,544 |
Letters of credit | Maximum | ||
Schedule of Commitments [Line Items] | ||
Remaining term | 10 years | |
Letters of credit | Minimum | ||
Schedule of Commitments [Line Items] | ||
Remaining term | 1 month |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | |
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Not Offset, Policy Election Deduction | $ 0 | $ 0 | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||||
Gross Amounts Recognized | 161,573 | 270,773 | ||
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Net Amounts of Liabilities presented in the Statement of Financial Position | 161,573 | 270,773 | ||
Fair Value Collateral Posted | 161,573 | 270,773 | ||
Net Amount | 0 | 0 | ||
Fair value of derivatives in a net liability position | 16,100 | |||
Interest rate swap | ||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Asset derivatives (other assets), fair value | 19,224 | 22,958 | ||
Derivative Asset, Not Offset, Policy Election Deduction | (1,290) | 0 | ||
Liability derivatives (other liabilities), fair value | 16,858 | 21,533 | ||
Derivative Asset [Abstract] | ||||
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Derivative financial instruments | 19,224 | 22,958 | ||
Fair Value Collateral Received/ Pledged | 17,934 | 9,010 | ||
Net Amount | 0 | 13,948 | ||
Derivative Liability [Abstract] | ||||
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | ||
Net Amounts of Liabilities presented in the Statement of Financial Position | 16,858 | 21,533 | ||
Fair Value Collateral Posted | 0 | 0 | ||
Net Amount | 15,568 | 21,533 | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||||
Derivative Asset, Not Offset, Policy Election Deduction | (1,290) | 0 | ||
Interest rate collar | ||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Asset derivatives (other assets), fair value | 751 | |||
Derivative Asset, Not Offset, Policy Election Deduction | 0 | |||
Liability derivatives (other liabilities), fair value | 48 | |||
Derivative Asset [Abstract] | ||||
Gross Amounts Offset in the Statement of Financial Position | 0 | |||
Derivative financial instruments | 751 | |||
Financial Instruments | 0 | |||
Fair Value Collateral Received/ Pledged | 0 | |||
Net Amount | 751 | |||
Derivative Liability [Abstract] | ||||
Gross Amounts Offset in the Statement of Financial Position | 0 | |||
Net Amounts of Liabilities presented in the Statement of Financial Position | 48 | |||
Fair Value Collateral Posted | 0 | |||
Net Amount | 48 | |||
Derivatives Designated as Hedging Instruments: | ||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Asset derivatives (other assets), fair value | 3,206 | 2,348 | ||
Liability derivatives (other liabilities), fair value | 86 | 969 | ||
Derivatives Designated as Hedging Instruments: | Other Assets | Interest rate swap | ||||
Derivative [Line Items] | ||||
Notional value | 211,962 | 161,962 | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | 211,962 | 161,962 | ||
Asset derivatives (other assets), fair value | 2,455 | 2,348 | ||
Derivatives Designated as Hedging Instruments: | Other Assets | Interest rate collar | ||||
Derivative [Line Items] | ||||
Notional value | 100,000 | 100,000 | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | 100,000 | 100,000 | ||
Asset derivatives (other assets), fair value | 751 | 0 | ||
Derivatives Designated as Hedging Instruments: | Other Liabilities | Interest rate swap | ||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 86 | 921 | ||
Derivatives Designated as Hedging Instruments: | Other Liabilities | Interest rate collar | ||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 0 | 48 | ||
Derivatives not Designated as Hedging Instruments: | Other Assets | Interest rate swap | ||||
Derivative [Line Items] | ||||
Notional value | 705,097 | 687,902 | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | 705,097 | 687,902 | ||
Asset derivatives (other assets), fair value | 16,769 | 20,610 | ||
Derivatives not Designated as Hedging Instruments: | Other Liabilities | Interest rate swap | ||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 16,772 | 20,612 | ||
Cash Flow Hedging | Cash Flow Hedge 1 | ||||
Derivative [Line Items] | ||||
Notional value | $ 15,465 | |||
Derivative, fixed rate | 2.60% | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 15,465 | |||
Cash Flow Hedging | Cash Flow Hedge 2 | ||||
Derivative [Line Items] | ||||
Notional value | $ 14,433 | |||
Derivative, fixed rate | 2.60% | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 14,433 | |||
Cash Flow Hedging | Cash Flow Hedge 3 | ||||
Derivative [Line Items] | ||||
Notional value | $ 18,558 | |||
Derivative, fixed rate | 2.64% | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 18,558 | |||
Cash Flow Hedging | Cash Flow Hedge 4 | ||||
Derivative [Line Items] | ||||
Notional value | $ 13,506 | |||
Derivative, fixed rate | 2.64% | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 13,506 | |||
Cash Flow Hedging | Subordinated Debt | ||||
Derivative [Line Items] | ||||
Notional value | $ 62,000 | |||
Derivative, Variable Interest Rate | 2.62% | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 62,000 | |||
Cash Flow Hedging | Derivatives Designated as Hedging Instruments: | ||||
Derivative [Line Items] | ||||
Notional value | $ 50,000 | $ 100,000 | ||
Derivative, fixed rate | 6.56% | 6.63% | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 50,000 | $ 100,000 | ||
Prime Based Interest Rate Collar | Derivatives Designated as Hedging Instruments: | ||||
Derivative [Line Items] | ||||
Notional value | 100,000 | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||||
Derivative Asset, Notional Amount | $ 100,000 | |||
Prime Based Interest Rate Collar | Derivatives Designated as Hedging Instruments: | Minimum | ||||
Derivative [Line Items] | ||||
Derivative, Variable Interest Rate | 8.14% | |||
Prime Based Interest Rate Collar | Derivatives Designated as Hedging Instruments: | Maximum | ||||
Derivative [Line Items] | ||||
Derivative, Variable Interest Rate | 5.25% | |||
Scenario, Forecast | Cash Flow Hedging | Interest Expense | ||||
Derivative [Line Items] | ||||
Decrease to interest expense and decrease to interest income | $ 1,800 | |||
Scenario, Forecast | Cash Flow Hedging | Interest Income | ||||
Derivative [Line Items] | ||||
Decrease to interest expense and decrease to interest income | $ 1,300 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Securities available for sale | $ 1,555,109 | $ 1,535,807 |
Estimate of Fair Value Measurement | ||
Assets | ||
Other investments | 60,173 | 61,123 |
Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available for sale | 265,705 | 237,785 |
Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 430,693 | 417,444 |
Agency mortgage-backed securities | ||
Assets | ||
Securities available for sale | 650,451 | 659,404 |
U.S. Treasury bills | ||
Assets | ||
Securities available for sale | 200,103 | 208,534 |
Corporate debt securities | ||
Assets | ||
Securities available for sale | 8,157 | 12,640 |
Recurring basis | Estimate of Fair Value Measurement | ||
Assets | ||
Securities available for sale | 1,555,109 | 1,535,807 |
Other investments | 2,770 | 2,667 |
Derivatives | 19,975 | 22,958 |
Total assets | 1,577,854 | 1,561,432 |
Liabilities | ||
Derivatives | 16,858 | 21,581 |
Total liabilities | 16,858 | 21,581 |
Recurring basis | Obligations of U.S. Government-sponsored enterprises | Estimate of Fair Value Measurement | ||
Assets | ||
Securities available for sale | 265,705 | 237,785 |
Recurring basis | Obligations of states and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Securities available for sale | 430,693 | 417,444 |
Recurring basis | Agency mortgage-backed securities | Estimate of Fair Value Measurement | ||
Assets | ||
Securities available for sale | 650,451 | 659,404 |
Recurring basis | U.S. Treasury bills | Estimate of Fair Value Measurement | ||
Assets | ||
Securities available for sale | 200,103 | 208,534 |
Recurring basis | Corporate debt securities | Estimate of Fair Value Measurement | ||
Assets | ||
Securities available for sale | 8,157 | 12,640 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Other investments | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury bills | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 1,555,109 | 1,535,807 |
Other investments | 2,770 | 2,667 |
Derivatives | 19,975 | 22,958 |
Total assets | 1,577,854 | 1,561,432 |
Liabilities | ||
Derivatives | 16,858 | 21,581 |
Total liabilities | 16,858 | 21,581 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available for sale | 265,705 | 237,785 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 430,693 | 417,444 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities | ||
Assets | ||
Securities available for sale | 650,451 | 659,404 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury bills | ||
Assets | ||
Securities available for sale | 200,103 | 208,534 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets | ||
Securities available for sale | 8,157 | 12,640 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Other investments | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Agency mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury bills | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Assets | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Certa
Fair Value Measurements - Certain Assets at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,027 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 269 | |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,296 | |
Other real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 0 | |
Other real estate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 0 | |
Other real estate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 269 | |
Other real estate | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 269 | |
Loan servicing asset | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | $ 0 | |
Loan servicing asset | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 1,004 | 1,027 |
Loan servicing asset | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 0 | 0 |
Loan servicing asset | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | $ 1,004 | $ 1,027 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Balance sheet assets | ||
Securities held-to-maturity, net | $ 721,566 | $ 710,650 |
Carrying Amount | ||
Balance sheet assets | ||
Securities held-to-maturity, net | 720,694 | 709,915 |
Other investments | 60,173 | 61,123 |
Loans held for sale | 261 | 1,228 |
Loans, net | 9,873,623 | 9,600,206 |
State tax credits held for sale | 27,308 | 27,700 |
Servicing asset | 3,343 | 3,648 |
Balance sheet liabilities | ||
Certificates of deposit | 893,673 | 530,708 |
Subordinated debentures and notes | 155,569 | 155,433 |
FHLB advances | 100,000 | 100,000 |
Other borrowings | 213,489 | 324,119 |
Estimated fair value | ||
Balance sheet assets | ||
Securities held-to-maturity, net | 656,553 | 628,517 |
Other investments | 60,173 | 61,123 |
Loans held for sale | 261 | 1,228 |
Loans, net | 9,587,197 | 9,328,844 |
State tax credits held for sale | 28,933 | 28,880 |
Servicing asset | 4,342 | 3,905 |
Balance sheet liabilities | ||
Certificates of deposit | 877,954 | 512,229 |
Subordinated debentures and notes | 150,559 | 152,679 |
FHLB advances | 100,000 | 100,004 |
Other borrowings | $ 213,489 | $ 324,119 |
SHAREHOLDERS_ EQUITY - Changes
SHAREHOLDERS’ EQUITY - Changes in Accumulated Other Comprehensive Income After-tax By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,522,263 | $ 1,529,116 |
Transfer from available-for-sale to held-to-maturity | 0 | |
Ending balance | 1,592,820 | 1,473,177 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (130,332) | 18,777 |
Net change | 24,357 | (78,037) |
Ending balance | (105,975) | (59,260) |
Net Unrealized Gain (Loss) on Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (144,549) | 5,271 |
Net change | 23,693 | (79,353) |
Transfer from available-for-sale to held-to-maturity | (197) | |
Ending balance | (120,856) | (74,279) |
Unamortized Gain (Loss) on Held-to-Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 13,185 | 15,684 |
Net change | (638) | (704) |
Transfer from available-for-sale to held-to-maturity | 197 | |
Ending balance | 12,547 | 15,177 |
Net Unrealized Gain (Loss) on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,032 | (2,178) |
Net change | 1,302 | 2,020 |
Transfer from available-for-sale to held-to-maturity | 0 | |
Ending balance | $ 2,334 | $ (158) |
SHAREHOLDERS_ EQUITY - Pre-tax
SHAREHOLDERS’ EQUITY - Pre-tax and After-tax Changes in the Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax [Abstract] | ||
Change in unrealized gain (loss) on available-for-sale debt securities, before tax | $ 32,056 | $ (106,087) |
Change in unrealized gain (loss) on available-for-sale debt securities, tax | 8,078 | (26,734) |
Change in unrealized gain (loss) on available-for-sale debt securities, after tax | 23,978 | (79,353) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | ||
Reclassification of gain on sale of available-for-sale securities, before tax | (381) | 0 |
Reclassification of gain on sale of available-for-sale securities, tax | (96) | 0 |
Reclassification of gain on sale of available-for-sale securities, after tax | (285) | 0 |
Other Comprehensive Loss, Held-to-maturity Security, OTTI, after Tax and Adjustments [Abstract] | ||
Reclassification of gain on held-to-maturity securities, before tax | (852) | (941) |
Reclassification of gain on held-to-maturity securities, tax | (214) | (237) |
Reclassification of gain on held-to-maturity securities, after tax | (638) | (704) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent [Abstract] | ||
Change in unrealized gain (loss) on cash flow hedges arising during the period, before tax | 1,705 | 2,341 |
Change in unrealized gain (loss) on cash flow hedges arising during the period, tax | 430 | 590 |
Change in unrealized gain (loss) on cash flow hedges arising during the period, after tax | 1,275 | 1,751 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax [Abstract] | ||
Reclassification of loss on cash flow hedges, before tax | 36 | 359 |
Reclassification of loss on cash flow hedges, tax | 9 | 90 |
Reclassification of loss on cash flow hedges, after tax | (27) | (269) |
OCI, Net of Tax [Abstract] | ||
Total other comprehensive income (loss), before tax | 32,564 | (104,328) |
Total other comprehensive income (loss), tax | 8,207 | (26,291) |
Total other comprehensive income (loss), after-tax | $ 24,357 | $ (78,037) |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interim Period, Costs Not Allocable [Line Items] | ||
Miscellaneous income | $ 16,898 | $ 18,641 |
Other noninterest expense | 29,078 | 17,950 |
Amortization of intangibles | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 1,239 | 1,430 |
Banking expense | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 1,848 | 1,501 |
Deposit costs | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 12,720 | 4,260 |
FDIC and other insurance | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 2,572 | 1,855 |
Loan, legal expenses | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 1,904 | 1,733 |
Outside services | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 1,545 | 1,262 |
Other expense | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Other noninterest expense | 7,250 | 5,909 |
Total other noninterest income | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Miscellaneous income | 6,103 | 6,208 |
Bank-owned life insurance | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Miscellaneous income | 791 | 1,034 |
Community development fees | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Miscellaneous income | 595 | 2,166 |
Other income | ||
Interim Period, Costs Not Allocable [Line Items] | ||
Miscellaneous income | $ 4,717 | $ 3,008 |