Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-26099 | |
Entity Registrant Name | FARMERS & MERCHANTS BANCORP | |
Entity Central Index Key | 0001085913 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3327828 | |
Entity Address, Address Line One | 111 W. Pine Street | |
Entity Address, City or Town | Lodi | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95240 | |
City Area Code | 209 | |
Local Phone Number | 367-2300 | |
Title of 12(g) Security | Common Stock, $0.01 Par Value Per Share | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 751,095 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 70,622 | $ 73,358 |
Interest bearing deposits with banks | 597,739 | 514,899 |
Total cash and cash equivalents | 668,361 | 588,257 |
Securities available-for-sale, amortized cost $135,125 and $183,171 respectively | 106,493 | 152,864 |
Securities held-to-maturity, fair value $636,623 and $688,393 respectively | 826,015 | 845,346 |
Allowance for credit losses - securities held-to-maturity | (450) | (393) |
Total investment securities | 932,058 | 997,817 |
Non-marketable securities | 15,549 | 15,549 |
Loans and leases held-for-investment, net of unearned income | 3,557,203 | 3,512,361 |
Allowance for credit losses - loans and leases | (74,159) | (66,885) |
Loans held-for-investment, net | 3,483,044 | 3,445,476 |
Bank-owned life insurance | 67,094 | 73,038 |
Premises and equipment, net | 52,091 | 49,476 |
Deferred income tax assets | 32,306 | 31,507 |
Accrued interest receivable | 25,804 | 21,602 |
Goodwill | 11,183 | 11,183 |
Other intangibles | 2,380 | 2,809 |
Other real estate owned | 873 | 873 |
Other assets | 84,632 | 89,812 |
TOTAL ASSETS | 5,375,375 | 5,327,399 |
Deposits: | ||
Non-interest bearing | 1,470,590 | 1,758,793 |
Interest bearing: | ||
Demand | 985,408 | 1,125,014 |
Savings and money market | 1,670,688 | 1,544,062 |
Certificates of deposit | 622,081 | 331,400 |
Total interest bearing | 3,278,177 | 3,000,476 |
Total deposits | 4,748,767 | 4,759,269 |
Subordinated debentures | 10,310 | 10,310 |
Interest payable and other liabilities | 85,675 | 72,512 |
TOTAL LIABILITIES | 4,844,752 | 4,842,091 |
SHAREHOLDERS' EQUITY | ||
Preferred shares, no par value, 1,000,000 shares authorized and, none issued or outstanding | 0 | 0 |
Common shares, $0.01 par value, 7,500,000 authorized 752,013 and 768,337 outstanding at September 30, 2023 and December 31, 2022, respectively | 7 | 8 |
Additional paid-in capital | 40,813 | 57,206 |
Retained earnings | 510,535 | 449,932 |
Accumulated other comprehensive (loss), net of taxes | (20,732) | (21,838) |
TOTAL SHAREHOLDERS' EQUITY | 530,623 | 485,308 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,375,375 | $ 5,327,399 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
UNAUDITED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Securities available-for-sale, amortized cost | $ 135,125 | $ 183,171 |
Securities held-to-maturity, fair value | $ 636,623 | $ 688,393 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common Stock, shares outstanding (in shares) | 752,013 | 768,337 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income | ||||
Interest and fees on loans and leases | $ 52,153 | $ 41,868 | $ 149,851 | $ 117,871 |
Interest and dividends on investment securities | 5,485 | 5,686 | 16,593 | 16,697 |
Interest on deposits with others | 8,075 | 4,159 | 19,918 | 5,934 |
Total interest income | 65,713 | 51,713 | 186,362 | 140,502 |
Interest expense | ||||
Deposits | 12,051 | 1,122 | 24,156 | 2,798 |
Subordinated debentures | 221 | 134 | 621 | 319 |
Total interest expense | 12,272 | 1,256 | 24,777 | 3,117 |
Net interest income | 53,441 | 50,457 | 161,585 | 137,385 |
Provision for credit losses | 3,000 | 1,500 | 7,057 | 3,000 |
Net interest income after provision for credit losses | 50,441 | 48,957 | 154,528 | 134,385 |
Non-interest income | ||||
Card processing | 1,693 | 1,791 | 4,996 | 5,375 |
Service charges on deposit accounts | 722 | 638 | 2,046 | 2,318 |
Increase in cash surrender value of BOLI | 512 | 566 | 1,462 | 1,668 |
Gain on BOLI death benefit | 0 | 0 | 4,346 | 0 |
Net loss on sale of securities available-for-sale | 0 | (2,987) | (5,686) | (2,985) |
Net (loss)/gain on deferred compensation benefits | (304) | 352 | 1,894 | (227) |
Other | 983 | 1,199 | 3,455 | 3,234 |
Total non-interest income | 3,606 | 1,559 | 12,513 | 9,383 |
Non-interest expense | ||||
Salaries and employee benefits | 17,172 | 15,994 | 54,693 | 49,181 |
Net (loss)/gain on deferred compensation benefits | (304) | 352 | 1,894 | (227) |
Data Processing | 1,254 | 1,250 | 3,821 | 3,698 |
Occupancy | 1,191 | 1,196 | 3,599 | 3,500 |
FDIC insurance | 582 | 366 | 1,785 | 1,076 |
Marketing | 440 | 303 | 1,335 | 959 |
Legal | 256 | 49 | 780 | 733 |
Other | 3,877 | 4,865 | 11,566 | 12,274 |
Total non-interest expense | 24,468 | 24,375 | 79,473 | 71,194 |
INCOME BEFORE INCOME TAXES | 29,579 | 26,141 | 87,568 | 72,574 |
Income tax expense | 7,545 | 6,605 | 20,679 | 17,537 |
NET INCOME | $ 22,034 | $ 19,536 | $ 66,889 | $ 55,037 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 29.23 | $ 25.2 | $ 88.06 | $ 70.47 |
Diluted (in dollars per share) | $ 29.23 | $ 25.2 | $ 88.06 | $ 70.47 |
Weighted average number of common shares | ||||
Basic (in shares) | 753,780 | 775,109 | 759,600 | 780,988 |
Diluted (in shares) | 753,780 | 775,109 | 759,600 | 780,988 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 22,034 | $ 19,536 | $ 66,889 | $ 55,037 |
Other comprehensive income | ||||
Unrealized (losses) on available-for-sale securities | (5,181) | (12,378) | (4,010) | (39,677) |
Reclassification adjustment for losses on available-for-sale securities | 0 | 2,987 | 5,685 | 2,985 |
Amortization of unrealized loss on securities transferred to held-to-maturity | (28) | (52) | (105) | (193) |
Net unrealized (losses)/gains on available-for-sale securities | (5,209) | (9,443) | 1,570 | (36,885) |
Income tax benefit/(expense) | 1,540 | 2,792 | (464) | 10,905 |
Other comprehensive (loss)/income, net of tax | (3,669) | (6,651) | 1,106 | (25,980) |
Total comprehensive income | $ 18,365 | $ 12,885 | $ 67,995 | $ 29,057 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Shares [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Total |
Balance at Dec. 31, 2021 | $ 8 | $ 77,516 | $ 387,331 | $ (1,719) | $ 463,136 |
Balance (in shares) at Dec. 31, 2021 | 789,646 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 55,037 | 0 | 55,037 |
Other comprehensive (loss)/gain, net of tax | 0 | 0 | 0 | (25,980) | (25,980) |
Cash dividends declared | 0 | 0 | (6,110) | 0 | (6,110) |
Repurchase of common stock | $ 0 | (17,905) | 0 | 0 | (17,905) |
Repurchase of common stock (in shares) | (18,824) | ||||
Balance at Sep. 30, 2022 | $ 8 | 59,611 | 436,258 | (27,699) | 468,178 |
Balance (in shares) at Sep. 30, 2022 | 770,822 | ||||
Balance at Jun. 30, 2022 | $ 8 | 65,671 | 416,722 | (21,048) | 461,353 |
Balance (in shares) at Jun. 30, 2022 | 777,190 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 19,536 | 0 | 19,536 |
Other comprehensive (loss)/gain, net of tax | 0 | 0 | 0 | (6,651) | (6,651) |
Repurchase of common stock | $ 0 | (6,060) | 0 | 0 | (6,060) |
Repurchase of common stock (in shares) | (6,368) | ||||
Balance at Sep. 30, 2022 | $ 8 | 59,611 | 436,258 | (27,699) | 468,178 |
Balance (in shares) at Sep. 30, 2022 | 770,822 | ||||
Balance at Dec. 31, 2022 | $ 8 | 57,206 | 449,932 | (21,838) | $ 485,308 |
Balance (in shares) at Dec. 31, 2022 | 768,337 | 768,337 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 66,889 | 0 | $ 66,889 |
Other comprehensive (loss)/gain, net of tax | 0 | 0 | 0 | 1,106 | 1,106 |
Cash dividends declared | 0 | 0 | (6,286) | 0 | (6,286) |
Repurchase of common stock | $ (1) | (16,393) | 0 | 0 | (16,394) |
Repurchase of common stock (in shares) | (16,324) | ||||
Balance at Sep. 30, 2023 | $ 7 | 40,813 | 510,535 | (20,732) | $ 530,623 |
Balance (in shares) at Sep. 30, 2023 | 752,013 | 752,013 | |||
Balance at Jun. 30, 2023 | $ 8 | 43,263 | 488,501 | (17,063) | $ 514,709 |
Balance (in shares) at Jun. 30, 2023 | 754,523 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 22,034 | 0 | 22,034 |
Other comprehensive (loss)/gain, net of tax | 0 | 0 | 0 | (3,669) | (3,669) |
Repurchase of common stock | $ (1) | (2,450) | 0 | 0 | (2,451) |
Repurchase of common stock (in shares) | (2,510) | ||||
Balance at Sep. 30, 2023 | $ 7 | $ 40,813 | $ 510,535 | $ (20,732) | $ 530,623 |
Balance (in shares) at Sep. 30, 2023 | 752,013 | 752,013 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividends declared (in dollars per share) | $ 8.3 | $ 7.85 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 66,889 | $ 55,037 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 7,057 | 3,000 |
Depreciation and amortization | 1,833 | 1,849 |
Net amortization of securities premiums and discounts | 11 | 341 |
Increase in cash surrender value of BOLI | (1,462) | (1,668) |
Gain on BOLI death benefit | (4,346) | 0 |
(Increase)/decrease in deferred income taxes, net | (1,994) | 2,356 |
Loss on sale of securities available-for-sale | 5,686 | 2,985 |
Net changes in: | ||
Other assets | 2,368 | (2,362) |
Other liabilities | 18,297 | 18,134 |
Net cash provided by operating activities | 94,339 | 79,672 |
Cash flows from investing activities: | ||
Net change in loans and leases held-for-investment | (59,022) | (86,401) |
Purchase of available-for-sale securities | (4,515) | (10,135) |
Purchase of held-to-maturity securities | (3,814) | (168,634) |
Proceeds from sales, maturities, calls and pay downs of available-for-sale securities | 46,751 | 62,979 |
Proceeds from maturities, calls and pay downs of held-to-maturity securities | 37,524 | 52,884 |
Purchase of premises and equipment | (4,493) | (3,318) |
Purchase of other investments | (5,263) | (5,300) |
Proceeds from bank-owned life insurance | 11,752 | 513 |
Proceeds from sale of assets | 27 | 73 |
Net cash provided by (used in) investing activities | 18,947 | (157,339) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (10,502) | 269,105 |
Cash dividends paid | (6,286) | (6,110) |
Net cash used in share repurchase of common stock | (16,394) | (17,905) |
Net cash (used in) provided by financing activities | (33,182) | 245,090 |
Net change in cash and cash equivalents | 80,104 | 167,423 |
Cash and cash equivalents, beginning of period | 588,257 | 715,460 |
Cash and cash equivalents, end of period | 668,361 | 882,883 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 18,664 | 3,832 |
Income taxes paid | 16 | 11,451 |
Supplemental disclosures of non-cash transactions: | ||
Net change in unrealized gain/(losses) on securities available-for-sale | $ 1,676 | $ (36,692) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1—Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements include the accounts of Farmers & Merchants Bancorp (“FMCB” or “Bancorp”), a bank holding company incorporated in the State of Delaware and its wholly owned subsidiary, Farmers & Merchants Bank of Central Californi a (“F&M Bank” or the “Bank”) collectively These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). In preparing these financial statements, the Company has evaluated events and transactions subsequent to September 30, 2023 for potential recognition or disclosure. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and note disclosures have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, management has identified several accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are significant to an understanding of Bank’s financial statements. These policies relate to: (i) the methodology for the recognition of interest income; (ii) the determination of the provision and allowance for credit losses; (iii) the valuation of financial assets and liabilities recorded at fair value; (iv) the valuation of intangibles, such as goodwill and core deposit intangibles (“CDI”); (v) the valuation of other real estate owned (“OREO”); and (vi) the valuation or recognition of deferred tax assets and liabilities. These policies and judgments, estimates and assumptions are described in greater detail in subsequent notes to the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, Summary of Critical Accounting Policies and Estimates, in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 15, 2023 and Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations Summary of Critical Accounting Policies and Estimates included in this Quarterly Report on Form 10-Q. The information included in this Form 10-Q should be read in conjunction with our 2022 Form 10-K. Interim results are not necessarily indicative of results for a full year or any other interim period. Accounting Standards Adopted in 2023 On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures using the prospective transition method. This ASU eliminates the troubled debt restructuring recognition and measurement guidance and requires an entity to present gross write-offs by year of origination. The amendments also enhance disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. With the exception of enhanced disclosures, there was no material impact to the consolidated financial statements from adoption of this ASU. The Company’s updated accounting policy, as a result of this new ASU, is outlined below. Modifications for Borrowers Experiencing Financial Difficulty. The Company may renegotiate the terms of existing loans for a variety of reasons. When refinancing or restructuring a loan, the Company evaluates where the borrower is experiencing financial difficulty. In making this determination, the Company considers whether the borrower is currently in default on any of its debt. In addition, the Company evaluates whether it is probable that the borrower would be in payment default on any of its debt in the foreseeable future without the modification and if the borrower (without the current modification) could obtain equivalent financing from another creditor at a market rate for similar debt. Modifications of loans to borrowers in these situations may indicated that the borrower is facing financial difficulty. Modifications of loans to borrowers experiencing financial difficulty that are in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, or a term extension (or a combination thereof) require disclosure. The Company’s disclosures are included in Note 3, Loans and Leases. Accounting Standards Pending Adoption The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In June 2022, the Financial Accounting Standards Board (FASB) issued guidance within ASU 2022-03, Fair Value Measurement of Equity Securities Subject to contractual Sale Restrictions. The amendments in this ASU affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this ASU are effective for fiscal years, beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The adoption of this ASU is not expected to have material impact on the Company’s Consolidated Financial Statements In March 2023, the FASB issued ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. ASU 2023-02 allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The Amendments in ASU 2023-02 apply to all reporting entities that hold (1) tax equity investments that meet the conditions for and elect to account for them using the proportional amortization method or (2) an investment in a LIHTC structure through a limited liability entity that is not accounted for using the proportional amortization method and to which certain LIHTC-specific guidance removed from FASB ASC 323-740, Investments – Equity Method and Joint Ventures: Income Taxes, has been applied. ASU 2023-02 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for any interim period within those fiscal years. The amendments in ASU 2023-02 must be applied on either a modified retrospective or a retrospective basis (except as discussed in the ASU for LIHTC investments not accounted for using the proportional amortization method). The adoption of this ASU is not expected to have material impact on the Company’s Consolidated Financial Statements. In July 2023, the FASB issued ASU 2023-03, Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718). This ASU amends the FASB Accounting Standards Codification for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. ASU 2023-03 is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2023-03 to have a material impact on its consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Updated and Simplification Initiative. ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company is evaluating the impacts of this ASU and has not yet determined whether this ASU will have a material impact on its consolidated financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investment Securities [Abstract] | |
Investment Securities | N ote 2— The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale are as follows: Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair As of September 30, 2023 U.S. Government-sponsored securities $ 3,614 $ 15 $ 20 $ 3,609 Mortgage-backed securities (1) 120,588 7 28,477 92,118 Collateralized mortgage obligations (1) 579 - 16 563 Corporate securities 10,034 - 141 9,893 Other 310 - - 310 Total available-for-sale securities $ 135,125 $ 22 $ 28,654 $ 106,493 (1) and collateralized mortgage obligations Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2022 U.S. Treasury notes $ 4,989 $ - $ 25 $ 4,964 U.S. Government-sponsored securities 4,430 21 24 4,427 Mortgage-backed securities (1) 162,314 9 29,795 132,528 Collateralized mortgage obligations (1) 1,085 - 31 1,054 Corporate securities 10,043 - 462 9,581 Other 310 - - 310 Total available-for-sale securities $ 183,171 $ 30 $ 30,337 $ 152,864 (1) and collateralized mortgage obligations issued by an agency or government sponsored entity of the U.S. Government. The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity are as follows: Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value Allowance for Credit Losses As of September 30, 2023 Mortgage-backed securities (1) $ 673,924 $ - $ 170,743 $ 503,181 $ - Collateralized mortgage obligations (1) 75,507 - 17,676 57,831 - Municipal securities 76,584 1 974 75,611 450 Total held-to-maturity securities $ 826,015 $ 1 $ 189,393 $ 636,623 $ 450 (1) All mortgage-backed securities and collateralized mortgage obligations Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value Allowance for Credit Losses As of December 31, 2022 Mortgage-backed securities (1) $ 702,858 $ 29 $ 141,121 $ 561,766 $ - Collateralized mortgage obligations (1) 80,186 - 15,701 64,485 - Municipal securities 62,302 49 209 62,142 393 Total held-to-maturity securities $ 845,346 $ 78 $ 157,031 $ 688,393 $ 393 (1) All mortgage-backed securities and collateralized mortgage obligations The allowance for credit losses on held-to-maturity securities is a contra-asset valuation account that is deducted from the amortized cost basis of held-to-maturity securities to present the net amount expected to be collected. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to residential mortgage-backed securities issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by States and political subdivisions and other held-to-maturity securities, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) internal forecasts and (v) whether or not such securities are guaranteed or pre-refunded by the issuers. Fair values are based on quoted market prices or dealer quotes. If a quoted market price or dealer quote is not available, fair value is estimated using quoted market prices for similar securities. The following tables show the gross unrealized losses for available-for-sale securities, for which an allowance for credit losses has not been recorded, that are less than 12 months and 12 months or more: September 30, 2023 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Fair Value Unrealized Losses Available-for-Sale Securities U.S. Government-sponsored securities $ 223 $ 1 $ 1,121 $ 19 $ 1,344 $ 20 Mortgage-backed securities (1) 4,930 231 86,461 28,246 91,391 28,477 Collateralized mortgage obligations (1) - - 563 16 563 16 Corporate securities - - 9,893 141 9,893 141 Total available-for-sale securities $ 5,153 $ 232 $ 98,038 $ 28,422 $ 103,191 $ 28,654 (1) All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. December 31, 2022 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities U.S. Treasury notes $ 4,964 $ 25 $ - $ - $ 4,964 $ 25 U.S. Government-sponsored securities 378 1 1,326 23 1,704 24 Mortgage-backed securities (1) 35,117 1,639 96,589 28,156 131,706 29,795 Collateralized Mortgage Obligations (1) 1,054 31 - - 1,054 31 Corporate securities - - 9,581 462 9,581 462 Total available-for-sale securities $ 41,513 $ 1,696 $ 107,496 $ 28,641 $ 149,009 $ 30,337 (1) All mortgage-backed securities and collateralized mortgage obligations As of September 30, 2023, the Company held 179 available-for-sale securities of which 13 were in an unrealized loss position for less than twelve months and 143 securities were in an unrealized loss position for twelve months or more without an allowance for credit losses. Because the decline in fair value is attributable to changes in interest rates and not credit quality and because the Company does not have the intent to sell these securities and it is more likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be impaired. Management evaluates the available-for-sale securities in an unrealized loss position, relying primarily on industry analyst reports and observations of market conditions and interest rate fluctuations. The following table presents the activity in the allowance for credit losses for held-to-maturity securities by major type: September 30, 2023 (Dollars in thousands) Municipal securities Mortgage-backed securities Collateralized Mortgage obligations Total Allowance for credit losses - securities Beginning Balance $ 393 $ - $ - $ 393 Provision for credit losses 57 - - 57 Ending Balance $ 450 $ - $ - $ 450 December 31, 2022 (Dollars in thousands) Municipal securities Mortgage- backed securities Collateralized Mortgage obligations Total Allowance for credit losses - securities Beginning Balance $ 393 $ - $ - $ 393 Provision for credit losses - - - - Ending Balance $ 393 $ - $ - $ 393 The amortized cost and estimated fair values of investment securities at September 30, 2023 by contractual final maturity are shown in the following table: Available-for-Sale Held-to-Maturity ( Doll Amortized Cost Fair Value Amortized Cost Fair Value Securities maturing in: One year or less $ 387 $ 386 $ 450 $ 450 After one year through five years 17,771 17,321 16,910 16,335 After five years through ten years 6,561 6,121 24,031 21,844 After ten years 110,406 82,665 784,624 597,994 Total $ 135,125 $ 106,493 $ 826,015 $ 636,623 Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. Expected maturities of mortgage-backed and CMO securities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The Company monitors the credit quality of those held-to-maturity securities not issued by the U.S. government or one of its agencies or government sponsored entities, through the use of credit ratings. Credit ratings are reviewed and updated quarterly. The following table summarizes the amortized cost of held-to-maturity municipal securities by credit rating at September 30, 2023: Held-to-Maturity Amortized Cost (Dollars in thousands) AAA/AA/A BBB/BB/B Not Rated Total September 30, 2023 Municipal securities $ 19,381 $ 393 $ 56,810 $ 76,584 Total $ 19,381 $ 393 $ 56,810 $ 76,584 As of September 30, 2023, there were no past due principal or interest payments associated with held-to-maturity municipal securities. Proceeds from sales and calls of investment securities were as follows: (Dollars in thousands) Gross Proceeds Gross Gains Gross Losses Nine months ended September 30, 2023 $ 30,482 $ - $ 5,686 Nine months ended September 30, 2022 $ 31,394 $ 2 $ 2,987 Pledged Securities As of September 30, 2023, investment securities carried at $757.2 million were pledged to secure public deposits, Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) borrowings, and other government agency deposits as required by law. This amount was $478.7 million at December 31, 2022. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases [Abstract] | |
Loans and Leases | Note 3— Loans and Leases Loans and leases as of the dates indicated consisted of the following: (Dollars in thousands) September 30, 2023 December 31, 2022 Loans and leases held-for-investment, net Real estate: Commercial $ 1,297,380 $ 1,328,691 Agricultural 753,353 726,938 Residential and home equity 398,990 387,753 Construction 192,745 166,538 Total real estate 2,642,468 2,609,920 Commercial & industrial 489,772 478,758 Agricultural 301,951 314,525 Commercial leases 128,063 112,629 Consumer and other 5,553 5,886 Total gross loans and leases 3,567,807 3,521,718 Unearned income (10,604 ) (9,357 ) Total net loans and leases 3,557,203 3,512,361 Allowance for credit losses (74,159 ) (66,885 ) Total loans and leases held-for-investment, net $ 3,483,044 $ 3,445,476 At September 30, 2023, the portion of loans that were approved for pledging as collateral on borrowing lines with the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”) were $1.3 billion and $1.5 billion, respectively. The borrowing capacity on these loans was $794.9 million from FHLB and $1.2 billion from the FRB. The following tables show an aging analysi s of the loan and lease portfolio, net of unearned income, by the time past due for the periods indicated: September 30, 2023 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial $ 1,287,872 $ 954 $ - $ 363 $ 1,317 $ 1,289,189 Agricultural 749,259 - - 4,094 4,094 753,353 Residential and home equity 398,769 221 - - 221 398,990 Construction 192,745 - - - - 192,745 Total real estate 2,628,645 1,175 - 4,457 5,632 2,634,277 Commercial & industrial 489,653 80 - 39 119 489,772 Agricultural 301,951 - - - - 301,951 Commercial leases 124,508 1,142 - - 1,142 125,650 Consumer and other 5,541 12 - - 12 5,553 Total loans and leases, net $ 3,550,298 $ 2,409 $ - $ 4,496 $ 6,905 $ 3,557,203 December 31, 2022 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial $ 1,319,911 $ - $ - $ 403 $ 403 $ 1,320,314 Agricultural 726,938 - - - - 726,938 Residential and home equity 387,753 - - - - 387,753 Construction 166,370 - - 168 168 166,538 Total real estate 2,600,972 - - 571 571 2,601,543 Commercial & industrial 478,758 - - - - 478,758 Agricultural 314,525 - - - - 314,525 Commercial leases 111,649 - - - - 111,649 Consumer and other 5,789 97 - - 97 5,886 Total loans and leases, net $ 3,511,693 $ 97 $ - $ 571 $ 668 $ 3,512,361 Non-accrual loans are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Non-accrual loans and leases: Real estate: Commercial $ 363 $ 403 Agricultural 4,094 - Residential and home equity - - Construction - 168 Total real estate 4,457 571 Commercial & industrial 39 - Agricultural - - Commercial leases - - Consumer and other - - Total non-accrual loans and leases $ 4,496 $ 571 During the nine months ended September 30, 2023, we had one residential real estate loan modified in the amount of $127,000. The contractual interest rate of the modified loan decreased from 3.18% to 2.18% and the contractual term was extended from 15 years The following table presents the credit risk rating categories for loans and leases held-for-investment (accruing and non-accruing) net of unearned income by loan portfolio segment and class as of the dates indicated. September 30, 2023 (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial $ 1,271,547 $ 17,279 $ 363 $ - $ 1,289,189 $ 26,724 Agricultural 736,338 6,793 10,222 - 753,353 7,241 Residential and home equity 398,216 - 774 - 398,990 7,458 Construction 192,745 - - - 192,745 3,612 Total real estate 2,598,846 24,072 11,359 - 2,634,277 45,035 Commercial & industrial 477,474 11,710 588 - 489,772 17,903 Agricultural 297,946 3,998 7 - 301,951 9,082 Commercial leases 125,625 25 - - 125,650 1,967 Consumer and other 5,337 - 216 - 5,553 172 Total loans and leases, net $ 3,505,228 $ 39,805 $ 12,170 $ - $ 3,557,203 $ 74,159 December 31, (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial $ 1,314,377 $ 5,535 $ 402 $ - $ 1,320,314 $ 18,055 Agricultural 709,927 10,891 6,120 - 726,938 14,496 Residential and home equity 387,371 - 382 - 387,753 7,508 Construction 166,370 - 168 - 166,538 3,026 Total real estate 2,578,045 16,426 7,072 - 2,601,543 43,085 Commercial & industrial 478,437 63 258 - 478,758 11,503 Agricultural 308,830 5,682 13 - 314,525 10,202 Commercial leases 111,568 81 - - 111,649 1,924 Consumer and other 5,650 - 236 - 5,886 171 Total loans and leases, net $ 3,482,530 $ 22,252 $ 7,579 $ - $ 3,512,361 $ 66,885 The following table presents outstanding loan and lease balances held-for-investment by segment and class, credit quality indicators, vintage year by class of financing receivable, and current period gross charge-offs by year of origination as of September 30, 2023: September 30, 2023 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Net loans and leases held-for-investment Real estate: Commercial Pass $ 94,553 $ 171,741 $ 209,733 $ 144,704 $ 68,258 $ 270,620 $ 311,938 $ 1,271,547 Special mention - - 14,527 - - 1,797 955 17,279 Substandard - - - - - 363 - 363 Doubtful - - - - - - - - Total Commercial $ 94,553 $ 171,741 $ 224,260 $ 144,704 $ 68,258 $ 272,780 $ 312,893 $ 1,289,189 Commercial Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Agricultural Pass $ 40,919 $ 74,346 $ 41,434 $ 50,996 $ 12,164 $ 168,019 $ 348,460 $ 736,338 Special mention - - - 594 2,020 4,179 - 6,793 Substandard - - - - - 6,128 4,094 10,222 Doubtful - - - - - - - - Total Agricultural $ 40,919 $ 74,346 $ 41,434 $ 51,590 $ 14,184 $ 178,326 $ 352,554 $ 753,353 Agricultural Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Residential and home equity Pass $ 33,656 $ 63,154 $ 90,089 $ 80,757 $ 13,514 $ 72,734 $ 44,312 $ 398,216 Special mention - - - - - - - - Substandard - - - - - 774 - 774 Doubtful - - - - - - - - Total Residential and home equity $ 33,656 $ 63,154 $ 90,089 $ 80,757 $ 13,514 $ 73,508 $ 44,312 $ 398,990 Residential and home equity Current-period gross charge-offs $ - $ - $ - $ - $ - $ 14 $ - $ 14 Construction Pass $ - $ 3,000 $ - $ - $ 1,575 $ - $ 188,170 $ 192,745 Special mention - - - - - - - - Substandard - - - - - - - - Doubtful - - - - - - - - Total construction $ - $ 3,000 $ - $ - $ 1,575 $ - $ 188,170 $ 192,745 Construction Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Total Real estate $ 169,128 $ 312,241 $ 355,783 $ 277,051 $ 97,531 $ 524,614 $ 897,929 $ 2,634,277 Commercial & industrial Pass $ 47,471 $ 27,835 $ 23,821 $ 8,612 $ 5,357 $ 7,741 $ 356,637 $ 477,474 Special mention - - 4,878 - - - 6,832 11,710 Substandard - - - - - 499 89 588 Doubtful - - - - - - - - Total Commercial & industrial $ 47,471 $ 27,835 $ 28,699 $ 8,612 $ 5,357 $ 8,240 $ 363,558 $ 489,772 Commercial & industrial Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - September 30, 2023 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Agricultural Pass $ 3,311 $ 4,770 $ 2,279 $ 709 $ 1,100 $ 2,158 $ 283,619 $ 297,946 Special mention - - 75 - - - 3,923 3,998 Substandard - - - - 7 - - 7 Doubtful - - - - - - - - Total Agricultural $ 3,311 $ 4,770 $ 2,354 $ 709 $ 1,107 $ 2,158 $ 287,542 $ 301,951 Agricultural Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Commercial leases Pass $ 35,681 $ 33,040 $ 11,381 $ 9,943 $ 4,994 $ 30,586 $ - $ 125,625 Special mention - - - - 25 - - 25 Substandard - - - - - - - - Doubtful - - - - - - - - Total Commercial leases $ 35,681 $ 33,040 $ 11,381 $ 9,943 $ 5,019 $ 30,586 $ - $ 125,650 Commercial leases Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Consumer and other Pass $ 1,470 $ 1,078 $ 466 $ 105 $ 67 $ 1,552 $ 599 $ 5,337 Special mention - - - - - - - - Substandard 191 - - - - 25 - 216 Doubtful - - - - - - - - Total Consumer and other $ 1,661 $ 1,078 $ 466 $ 105 $ 67 $ 1,577 $ 599 $ 5,553 Consumer and other Current-period gross charge-offs $ 30 $ 3 $ - $ - $ - $ - $ - $ 33 Total net loans and leases Pass $ 257,061 $ 378,964 $ 379,203 $ 295,826 $ 107,029 $ 553,410 $ 1,533,735 $ 3,505,228 Special mention - - 19,480 594 2,045 5,976 11,710 39,805 Substandard 191 - - - 7 7,789 4,183 12,170 Doubtful - - - - - - - - Total net loans and leases $ 257,252 $ 378,964 $ 398,683 $ 296,420 $ 109,081 $ 567,175 $ 1,549,628 $ 3,557,203 Total current-period gross charge-offs $ 30 $ 3 $ - $ - $ - $ 14 $ - $ 47 Certain directors and executive officers of the Company are defined as related parties. These related parties, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during the nine months ended September 30, 2023 and year ended December 31, 2022. Such loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with borrowers not related to the Company. These loans did not involve more than the normal risk of collection or have other unfavorable features. A summary of the changes in those loans is as follows: September 30, December 31, (Dollars in thousands) 2023 2022 Balance at beginning of the period $ 17,521 $ 18,128 New loans or advances during year 1,706 523 Repayments (1,655 ) (1,130 ) Balance at end of period $ 17,572 $ 17,521 A loan or lease is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans or leases are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The collateral on the loans and leases is a significant portion of what secures the collateral dependent loans or leases and significant changes to the fair value of the collateral can impact the ACL. During the nine months ended September 30, 2023, there were no significant changes to the collateral that secures the collateral dependent loans, whether due to general deterioration or with credit quality indicators like appraisal value. The following tables present the amortized cost basis for collateral dependent loans and leases by type as of September 30, 2023 and December 31, 2022, respectively: September 30, 2023 (Dollars in thousands) Real Estate Vehicles and Equipment Total Collateral dependent loans and leases Real estate: Commercial $ 1,450 $ - $ 1,450 Agricultural 10,222 - 10,222 Residential and home equity 1,630 - 1,630 Construction - - - Total real estate 13,302 - 13,302 Commercial & industrial 89 495 584 Agricultural - 7 7 Commercial leases - - - Consumer and other - 171 171 Total collateral dependent, gross loans and leases $ 13,391 $ 673 $ 14,064 December 31, 2022 (Dollars in thousands) Real Estate Vehicles and Equipment Total Collateral dependent loans and leases Real estate: Commercial $ 1,114 $ - $ 1,114 Agricultural 11,035 - 11,035 Residential and home equity 2,153 - 2,153 Construction - - - Total real estate 14,302 - 14,302 Commercial & industrial - - - Agricultural - 13 13 Commercial leases - - - Consumer and other - 158 158 Total collateral dependent, gross loans and leases $ 14,302 $ 171 $ 14,473 Changes in the allowance for credit losses are as follows: For the Three Months Ended September 30, 2023 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning of period $ 34,695 $ 3,195 $ 7,179 $ 24,194 $ 1,657 $ 192 $ 71,112 Provision / (recapture) for credit losses (730 ) 417 268 2,748 310 (13 ) 3,000 Charge-offs - - - - - (15 ) (15 ) Recoveries - - 11 43 - 8 62 Net (charge-offs) / recoveries - - 11 43 - (7 ) 47 Balance at end of period $ 33,965 $ 3,612 $ 7,458 $ 26,985 $ 1,967 $ 172 $ 74,159 For the Three Months Ended September 30, 2022 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning $ 34,716 $ 2,876 $ 6,874 $ 15,808 $ 1,645 $ 161 $ 62,080 Provision / (recapture) for credit losses (1,616 ) 119 (15 ) 3,063 (57 ) 5 1,499 Charge-offs - - - (48 ) - (20 ) (68 ) Recoveries - - 6 92 - 8 106 Net (charge-offs) / recoveries - - 6 44 - (12 ) 38 Balance at end of period $ 33,100 $ 2,995 $ 6,865 $ 18,915 $ 1,588 $ 154 $ 63,617 For the Nine Months Ended September 30, 2023 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning of period $ 32,551 $ 3,026 $ 7,508 $ 21,705 $ 1,924 $ 171 $ 66,885 Provision / (recapture) for credit losses 1,244 586 (78 ) 5,196 43 9 7,000 Charge-offs - - (14 ) - - (33 ) (47 ) Recoveries 170 - 42 84 - 25 321 Net (charge-offs) / recoveries 170 - 28 84 - (8 ) 274 Balance at end of period $ 33,965 $ 3,612 $ 7,458 $ 26,985 $ 1,967 $ 172 $ 74,159 For the Nine Months Ended September 30, 2022 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning of period $ 38,149 $ 1,456 $ 2,847 $ 16,954 $ 938 $ 663 $ 61,007 Impact of Adopting ASC 326 - - - - - - - Provision / (recapture) for credit losses (5,049 ) 1,539 3,893 2,058 650 (485 ) 2,606 Charge-offs - - - (324 ) - (38 ) (362 ) Recoveries - - 125 227 - 14 366 Net (charge-offs) / recoveries - - 125 (97 ) - (24 ) 4 Balance at end of period $ 33,100 $ 2,995 $ 6,865 $ 18,915 $ 1,588 $ 154 $ 63,617 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Deposits | Note 4—Deposits Certificates of deposit greater than and less than or equal to the FDIC insurance limit of $250,000 are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Certificates of deposit: Certificates of deposit less than or equal to $250,000 $ 308,171 $ 202,554 Certificates of deposit greater than $250,000 313,910 128,846 Total certificates of deposit $ 622,081 $ 331,400 Scheduled maturities for certificates of deposit are as follows: (Dollars in thousands) Amount 2023 $ 131,282 2024 461,680 2025 23,267 2026 4,494 2027 1,358 Total certificates of deposit $ 622,081 |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Short-term Borrowings [Abstract] | |
Short-term Borrowings | Note 5—Short-term borrowings As of September 30, 2023 and December 31, 2022, committed lines of credit arrangements totaling $2.2 billion and $1.5 billion were available to the Company from unaffiliated banks, respectively. The average Federal Funds interest rate as of September 30, 2023 was 5.25%. The Company is a member of the FHLB of San Francisco and has a committed credit line of $796.7 million, which is secured by $1.3 billion in various real estate loans and investment securities pledged as collateral. Borrowings generally provide for interest at the then current published rate, which was 5.70% as of September 30, 2023. The Company has $1.5 billion in pledged loans and $147.7 million in pledged securities at par value with the Federal Reserve Bank (the “Fed”). As of September 30, 2023, the Company’s overnight borrowing capacity using the primary credit facilities from the Fed account was $1.3 billion. The borrowing rate was 5.50% as of September 30, 2023. There were no outstanding advances on the above borrowing facilities as of September 30, 2023 and December 31, 2022. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 6—Employee Benefit Plans Executive Retirement Plan The Company, through the Bank, sponsors an Executive Retirement Plan (“ERP”) for certain executive level employees. The ERP is a non-qualified deferred compensation plan and was developed to supplement the Company’s Profit Sharing Plan, which, as a qualified retirement plan, has a ceiling on benefits as set by Internal Revenue Service regulations. The ERP is comprised of: (1) a Performance Component comprised of two contributions, one based upon profitability and a second based upon long-term cumulative profitability in the form of the increase in market value in excess of the increase in the book value of the Company; (2) a Salary Component which makes contributions based upon participant salary levels; and (3) an Equity Component for which contributions are discretionary and subject to Board of Directors approval. The Company expensed $6.8 million to the ERP during the nine months ended September 30, 2023 and $5.2 million during the nine months ended September 30, 2022. The Company’s carrying value of the liability under the ERP was $57.0 million as of September 30, 2023 and $57.0 million as of December 31, 2022. The Company’s shares of common stock held as investments in the Rabbi Trust of the ERP as of September 30, 2023 and December 31, 2022 totaled 49,121 and 50,196 with an historical cost basis of $31.6 million and $31.4 million, respectively. All amounts have been fully funded into the Rabbi Trust as of September 30, 2023 and December 31, 2022. The consolidated investments held in the Rabbi Trust are recorded at fair value with changes in unrealized gains or losses recorded within non-interest income and the equal and offsetting charges in the related liability are recorded in non-interest expense in the consolidated statements of income. Net gains on ERP plan investments were $1.6 million compared to net loss of $0.5 million at September 30, 2023 and 2022, respectively. Balances in non-qualified deferred compensation plans may be invested in financial instruments whose market value fluctuates based upon trends in interest rates and stock prices. Senior Management Retention Plan The Company, through the Bank, sponsors a Senior Management Retention Plan (“SMRP”) for certain senior level employees. The SMRP is a non-qualified deferred compensation plan and was developed to supplement the Company’s Profit Sharing Plan, which, as a qualified retirement plan, has a ceiling on benefits as set by Internal Revenue Service regulations. All contributions are discretionary and subject to the Board of Directors approval. The Company expensed $3.1 million to the SMRP during the nine months ended September 30, 2023 and $2.2 million for nine months ended September 30, 2022. The Company’s carrying value of the liability under the SMRP was $17.1 million as of September 30, 2023 and $13.6 million as of December 31, 2022. The Company’s shares of stock held as investments in the Rabbi Trust of the SMRP as of September 30, 2023 and December 31, 2022 totaled 18,161 and 15,998 shares with an historical cost basis of $13.0 million and $10.8 million, respectively. All amounts have been fully funded into the Rabbi Trust as of September 30, 2023 and December 31, 2022. The consolidated investments held in the Rabbi Trust are recorded at fair value with changes in unrealized gains or losses recorded within non-interest income and the equal and offsetting charges in the related liability are recorded in non-interest expense in the consolidated statements of income. Net gains on SMRP plan investments were $0.3 million compared to net gains of $0.3 million at September 30, 2023 and 2022, respectively. Balances in non-qualified deferred compensation plans may be invested in financial instruments whose market value fluctuates based upon trends in interest rates and stock prices. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 7—Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain financial and non-financial assets and liabilities and to determine fair value disclosures. Various financial instruments such as available-for-sale securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets and liabilities on a non-recurring basis, such as collateral dependent loans and other real estate owned. These non-recurring fair value adjustments typically involve lower of cost or fair value accounting or write-down of individual assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value. For accounting disclosure purposes, a three-level valuation hierarchy of fair value measurements has been established. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 – inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and inputs that are observable for the assets or liabilities, either directly or indirectly (such as interest rates, yield curves, and prepayment speeds). • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value. These may be internally developed, using the Company’s best information and assumptions that a market participant would consider. The carrying amounts and estimated fair values of financial instruments held by the Company are set forth below. Fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for many of the Company’s financial instruments, fair value estimates are based on judgements regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis are described in the Fair Value note in the Company’s 2022 Annual Report on Form 10-K. There have been no significant changes in these methodologies since then. The following tables summarize the carrying amount and estimated fair values of the Company’s financial assets and liabilities not carried at fair value, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. September 30 2023 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash and cash equivalents $ 668,361 $ 668,361 $ - $ - $ 668,361 Held-to-maturity securities 825,565 - 579,814 56,809 636,623 Non-marketable securities 15,549 - - 15,549 15,549 Loans and leases, net 3,483,044 - - 3,263,858 3,263,858 Bank-owned life insurance 67,094 67,094 - - 67,094 Financial Liabilities: Total deposits $ 4,748,767 $ - $ 4,126,686 $ 614,257 $ 4,740,943 Subordinated debentures 10,310 - 12,206 - 12,206 December 31, 2022 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash and cash equivalents $ 588,257 $ 588,257 $ - $ - $ 588,257 Held-to-maturity securities 844,953 - 645,859 42,534 688,393 Non-marketable securities 15,549 - - 15,549 15,549 Loans and leases, net 3,445,476 - - 3,335,042 3,335,042 Bank-owned life insurance 73,038 73,038 - - 73,038 Financial Liabilities: Total deposits $ 4,759,269 $ - $ 4,427,869 $ 323,572 $ 4,751,441 Subordinated debentures 10,310 - 12,211 - 12,211 The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring and non-recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value for the periods indicated. September 30 2023 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Available-for-sale securities U.S. Government-sponsored securities $ 3,609 $ - $ 3,609 $ - $ 3,609 Mortgage-backed securities 92,118 - 92,118 - 92,118 Collateralized mortgage obligations 563 - 563 - 563 Corporate securities 9,893 - 9,893 - 9,893 Other 310 - 310 - 310 Fair valued on a non-recurring basis: Collateral Dependent loans $ 13,480 $ - $ - $ 13,480 $ 13,480 Other real estate owned 873 - - 873 873 December 31, 2022 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Available-for-sale securities U.S. Treasury notes $ 4,964 $ 4,964 $ - $ - $ 4,964 U.S. Government-sponsored securities 4,427 - 4,427 - 4,427 Mortgage-backed securities 132,528 - 132,528 - 132,528 Collateralized mortgage obligations 1,054 - 1,054 - 1,054 Corporate securities 9,581 - 9,581 - 9,581 Other 310 - 310 - 310 Fair valued on a non-recurring basis: Collateral Dependent loans $ 14,473 $ - $ - $ 14,473 $ 14,473 Other real estate owned 873 - - 873 873 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 8—Commitments and Contingencies In the normal course of business, the Company enters into financial instruments with off balance sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These instruments include commitments to extend credit, letters of credit, and other types of financial guarantees. The Company had the following off balance sheet commitments as of the dates indicated. (Dollars in thousands) September 30, 2023 December 31, 2022 Commitments to extend credit, including unsecured commitments of $ 19,816 20,401 $ 1,156,479 $ 1,141,036 Stand-by letters of credit, including unsecured commitments of $ 7,970 7,954 16,802 17,138 The Company’s exposure to credit loss in the event of nonperformance by the other party with regard to standby letters of credit, undisbursed loan commitments, and financial guarantees is represented by the contractual notional amount of those instruments. 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. The Company uses the same credit policies in making commitments and conditional obligations as it does for recorded balance sheet items. The Company may or may not require collateral or other security to support financial instruments with credit risk. Evaluations of each customer’s creditworthiness are performed on a case-by-case basis. The estimated exposure to loss from these commitments is included in the reserve for unfunded loan commitments which amounted to $2.1 million at September 30, 2023 and December 31, 2022. Standby letters of credit are conditional commitments issued by the Company to guarantee performance of or payment for a customer to a third-party. Outstanding standby letters of credit have maturity dates ranging from 1 to 60 months with final expiration in January 2027. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company has commitments to fund investments in LIHTC partnerships and limited liability companies. At September 30, 2023, the remaining commitments to the LIHTC partnerships and limited liability companies were approximately $17.5 million. At December 31, 2022, the remaining commitments to the LIHTC partnerships and the limited liability companies were $19.7 million. In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material in relation to the financial position of the Company. The Company may be required to maintain average reserves on deposit with the Federal Reserve Bank primarily based on deposits outstanding. Reserve requirements are offset by the Company’s vault cash and deposit balances maintained with the Federal Reserve Bank. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Accounting Standards Adopted and Accounting Standards Pending Adoption | Accounting Standards Adopted in 2023 On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures using the prospective transition method. This ASU eliminates the troubled debt restructuring recognition and measurement guidance and requires an entity to present gross write-offs by year of origination. The amendments also enhance disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. With the exception of enhanced disclosures, there was no material impact to the consolidated financial statements from adoption of this ASU. The Company’s updated accounting policy, as a result of this new ASU, is outlined below. Modifications for Borrowers Experiencing Financial Difficulty. The Company may renegotiate the terms of existing loans for a variety of reasons. When refinancing or restructuring a loan, the Company evaluates where the borrower is experiencing financial difficulty. In making this determination, the Company considers whether the borrower is currently in default on any of its debt. In addition, the Company evaluates whether it is probable that the borrower would be in payment default on any of its debt in the foreseeable future without the modification and if the borrower (without the current modification) could obtain equivalent financing from another creditor at a market rate for similar debt. Modifications of loans to borrowers in these situations may indicated that the borrower is facing financial difficulty. Modifications of loans to borrowers experiencing financial difficulty that are in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, or a term extension (or a combination thereof) require disclosure. The Company’s disclosures are included in Note 3, Loans and Leases. Accounting Standards Pending Adoption The following paragraphs provide descriptions of newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In June 2022, the Financial Accounting Standards Board (FASB) issued guidance within ASU 2022-03, Fair Value Measurement of Equity Securities Subject to contractual Sale Restrictions. The amendments in this ASU affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this ASU are effective for fiscal years, beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The adoption of this ASU is not expected to have material impact on the Company’s Consolidated Financial Statements In March 2023, the FASB issued ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. ASU 2023-02 allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The Amendments in ASU 2023-02 apply to all reporting entities that hold (1) tax equity investments that meet the conditions for and elect to account for them using the proportional amortization method or (2) an investment in a LIHTC structure through a limited liability entity that is not accounted for using the proportional amortization method and to which certain LIHTC-specific guidance removed from FASB ASC 323-740, Investments – Equity Method and Joint Ventures: Income Taxes, has been applied. ASU 2023-02 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for any interim period within those fiscal years. The amendments in ASU 2023-02 must be applied on either a modified retrospective or a retrospective basis (except as discussed in the ASU for LIHTC investments not accounted for using the proportional amortization method). The adoption of this ASU is not expected to have material impact on the Company’s Consolidated Financial Statements. In July 2023, the FASB issued ASU 2023-03, Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718). This ASU amends the FASB Accounting Standards Codification for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. ASU 2023-03 is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2023-03 to have a material impact on its consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Updated and Simplification Initiative. ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company is evaluating the impacts of this ASU and has not yet determined whether this ASU will have a material impact on its consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investment Securities [Abstract] | |
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-Sale | The amortized cost, fair values, and unrealized gains and losses of the securities available-for-sale are as follows: Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair As of September 30, 2023 U.S. Government-sponsored securities $ 3,614 $ 15 $ 20 $ 3,609 Mortgage-backed securities (1) 120,588 7 28,477 92,118 Collateralized mortgage obligations (1) 579 - 16 563 Corporate securities 10,034 - 141 9,893 Other 310 - - 310 Total available-for-sale securities $ 135,125 $ 22 $ 28,654 $ 106,493 (1) and collateralized mortgage obligations Available-for-Sale Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value As of December 31, 2022 U.S. Treasury notes $ 4,989 $ - $ 25 $ 4,964 U.S. Government-sponsored securities 4,430 21 24 4,427 Mortgage-backed securities (1) 162,314 9 29,795 132,528 Collateralized mortgage obligations (1) 1,085 - 31 1,054 Corporate securities 10,043 - 462 9,581 Other 310 - - 310 Total available-for-sale securities $ 183,171 $ 30 $ 30,337 $ 152,864 (1) and collateralized mortgage obligations issued by an agency or government sponsored entity of the U.S. Government. |
Book Values, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-To-Maturity | The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity are as follows: Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value Allowance for Credit Losses As of September 30, 2023 Mortgage-backed securities (1) $ 673,924 $ - $ 170,743 $ 503,181 $ - Collateralized mortgage obligations (1) 75,507 - 17,676 57,831 - Municipal securities 76,584 1 974 75,611 450 Total held-to-maturity securities $ 826,015 $ 1 $ 189,393 $ 636,623 $ 450 (1) All mortgage-backed securities and collateralized mortgage obligations Held-to-Maturity Securities Gross Unrealized (Dollars in thousands) Amortized Cost Gains Losses Fair Value Allowance for Credit Losses As of December 31, 2022 Mortgage-backed securities (1) $ 702,858 $ 29 $ 141,121 $ 561,766 $ - Collateralized mortgage obligations (1) 80,186 - 15,701 64,485 - Municipal securities 62,302 49 209 62,142 393 Total held-to-maturity securities $ 845,346 $ 78 $ 157,031 $ 688,393 $ 393 (1) All mortgage-backed securities and collateralized mortgage obligations |
Gross Unrealized Losses for Available-for-Sale Securities | The following tables show the gross unrealized losses for available-for-sale securities, for which an allowance for credit losses has not been recorded, that are less than 12 months and 12 months or more: September 30, 2023 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Fair Value Unrealized Losses Available-for-Sale Securities U.S. Government-sponsored securities $ 223 $ 1 $ 1,121 $ 19 $ 1,344 $ 20 Mortgage-backed securities (1) 4,930 231 86,461 28,246 91,391 28,477 Collateralized mortgage obligations (1) - - 563 16 563 16 Corporate securities - - 9,893 141 9,893 141 Total available-for-sale securities $ 5,153 $ 232 $ 98,038 $ 28,422 $ 103,191 $ 28,654 (1) All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. December 31, 2022 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities U.S. Treasury notes $ 4,964 $ 25 $ - $ - $ 4,964 $ 25 U.S. Government-sponsored securities 378 1 1,326 23 1,704 24 Mortgage-backed securities (1) 35,117 1,639 96,589 28,156 131,706 29,795 Collateralized Mortgage Obligations (1) 1,054 31 - - 1,054 31 Corporate securities - - 9,581 462 9,581 462 Total available-for-sale securities $ 41,513 $ 1,696 $ 107,496 $ 28,641 $ 149,009 $ 30,337 (1) All mortgage-backed securities and collateralized mortgage obligations |
Activity in Allowance for Credit Losses for Held-to-Maturity Securities by Major Type | The following table presents the activity in the allowance for credit losses for held-to-maturity securities by major type: September 30, 2023 (Dollars in thousands) Municipal securities Mortgage-backed securities Collateralized Mortgage obligations Total Allowance for credit losses - securities Beginning Balance $ 393 $ - $ - $ 393 Provision for credit losses 57 - - 57 Ending Balance $ 450 $ - $ - $ 450 December 31, 2022 (Dollars in thousands) Municipal securities Mortgage- backed securities Collateralized Mortgage obligations Total Allowance for credit losses - securities Beginning Balance $ 393 $ - $ - $ 393 Provision for credit losses - - - - Ending Balance $ 393 $ - $ - $ 393 |
Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Final Maturity | The amortized cost and estimated fair values of investment securities at September 30, 2023 by contractual final maturity are shown in the following table: Available-for-Sale Held-to-Maturity ( Doll Amortized Cost Fair Value Amortized Cost Fair Value Securities maturing in: One year or less $ 387 $ 386 $ 450 $ 450 After one year through five years 17,771 17,321 16,910 16,335 After five years through ten years 6,561 6,121 24,031 21,844 After ten years 110,406 82,665 784,624 597,994 Total $ 135,125 $ 106,493 $ 826,015 $ 636,623 |
Credit Quality of Available-for-Sale and Held-to-Maturity Municipal Securities | The following table summarizes the amortized cost of held-to-maturity municipal securities by credit rating at September 30, 2023: Held-to-Maturity Amortized Cost (Dollars in thousands) AAA/AA/A BBB/BB/B Not Rated Total September 30, 2023 Municipal securities $ 19,381 $ 393 $ 56,810 $ 76,584 Total $ 19,381 $ 393 $ 56,810 $ 76,584 |
Proceeds from Sales and Calls of Investment Securities | Proceeds from sales and calls of investment securities were as follows: (Dollars in thousands) Gross Proceeds Gross Gains Gross Losses Nine months ended September 30, 2023 $ 30,482 $ - $ 5,686 Nine months ended September 30, 2022 $ 31,394 $ 2 $ 2,987 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases [Abstract] | |
Components of Loans and Leases | Loans and leases as of the dates indicated consisted of the following: (Dollars in thousands) September 30, 2023 December 31, 2022 Loans and leases held-for-investment, net Real estate: Commercial $ 1,297,380 $ 1,328,691 Agricultural 753,353 726,938 Residential and home equity 398,990 387,753 Construction 192,745 166,538 Total real estate 2,642,468 2,609,920 Commercial & industrial 489,772 478,758 Agricultural 301,951 314,525 Commercial leases 128,063 112,629 Consumer and other 5,553 5,886 Total gross loans and leases 3,567,807 3,521,718 Unearned income (10,604 ) (9,357 ) Total net loans and leases 3,557,203 3,512,361 Allowance for credit losses (74,159 ) (66,885 ) Total loans and leases held-for-investment, net $ 3,483,044 $ 3,445,476 |
Aging Analysis of Loan and Lease Portfolio | The following tables show an aging analysi s of the loan and lease portfolio, net of unearned income, by the time past due for the periods indicated: September 30, 2023 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial $ 1,287,872 $ 954 $ - $ 363 $ 1,317 $ 1,289,189 Agricultural 749,259 - - 4,094 4,094 753,353 Residential and home equity 398,769 221 - - 221 398,990 Construction 192,745 - - - - 192,745 Total real estate 2,628,645 1,175 - 4,457 5,632 2,634,277 Commercial & industrial 489,653 80 - 39 119 489,772 Agricultural 301,951 - - - - 301,951 Commercial leases 124,508 1,142 - - 1,142 125,650 Consumer and other 5,541 12 - - 12 5,553 Total loans and leases, net $ 3,550,298 $ 2,409 $ - $ 4,496 $ 6,905 $ 3,557,203 December 31, 2022 (Dollars in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-accrual Total Past Due Total Loans and leases held-for-investment, net Real estate: Commercial $ 1,319,911 $ - $ - $ 403 $ 403 $ 1,320,314 Agricultural 726,938 - - - - 726,938 Residential and home equity 387,753 - - - - 387,753 Construction 166,370 - - 168 168 166,538 Total real estate 2,600,972 - - 571 571 2,601,543 Commercial & industrial 478,758 - - - - 478,758 Agricultural 314,525 - - - - 314,525 Commercial leases 111,649 - - - - 111,649 Consumer and other 5,789 97 - - 97 5,886 Total loans and leases, net $ 3,511,693 $ 97 $ - $ 571 $ 668 $ 3,512,361 |
Non-accrual Loans | Non-accrual loans are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Non-accrual loans and leases: Real estate: Commercial $ 363 $ 403 Agricultural 4,094 - Residential and home equity - - Construction - 168 Total real estate 4,457 571 Commercial & industrial 39 - Agricultural - - Commercial leases - - Consumer and other - - Total non-accrual loans and leases $ 4,496 $ 571 |
Outstanding Loan and Lease Balances Held-for-Investment by Segment and Class, Credit Quality Indicators, Vintage Year by Class of Financing Receivable and Current Period Gross Charge-Offs by Year of Origination | The following table presents the credit risk rating categories for loans and leases held-for-investment (accruing and non-accruing) net of unearned income by loan portfolio segment and class as of the dates indicated. September 30, 2023 (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial $ 1,271,547 $ 17,279 $ 363 $ - $ 1,289,189 $ 26,724 Agricultural 736,338 6,793 10,222 - 753,353 7,241 Residential and home equity 398,216 - 774 - 398,990 7,458 Construction 192,745 - - - 192,745 3,612 Total real estate 2,598,846 24,072 11,359 - 2,634,277 45,035 Commercial & industrial 477,474 11,710 588 - 489,772 17,903 Agricultural 297,946 3,998 7 - 301,951 9,082 Commercial leases 125,625 25 - - 125,650 1,967 Consumer and other 5,337 - 216 - 5,553 172 Total loans and leases, net $ 3,505,228 $ 39,805 $ 12,170 $ - $ 3,557,203 $ 74,159 December 31, (Dollars in thousands) Pass Special Mention Sub- standard Doubtful Total Loans & Leases Total Allowance for Credit Losses Loans and leases held-for-investment, net Real estate: Commercial $ 1,314,377 $ 5,535 $ 402 $ - $ 1,320,314 $ 18,055 Agricultural 709,927 10,891 6,120 - 726,938 14,496 Residential and home equity 387,371 - 382 - 387,753 7,508 Construction 166,370 - 168 - 166,538 3,026 Total real estate 2,578,045 16,426 7,072 - 2,601,543 43,085 Commercial & industrial 478,437 63 258 - 478,758 11,503 Agricultural 308,830 5,682 13 - 314,525 10,202 Commercial leases 111,568 81 - - 111,649 1,924 Consumer and other 5,650 - 236 - 5,886 171 Total loans and leases, net $ 3,482,530 $ 22,252 $ 7,579 $ - $ 3,512,361 $ 66,885 The following table presents outstanding loan and lease balances held-for-investment by segment and class, credit quality indicators, vintage year by class of financing receivable, and current period gross charge-offs by year of origination as of September 30, 2023: September 30, 2023 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Net loans and leases held-for-investment Real estate: Commercial Pass $ 94,553 $ 171,741 $ 209,733 $ 144,704 $ 68,258 $ 270,620 $ 311,938 $ 1,271,547 Special mention - - 14,527 - - 1,797 955 17,279 Substandard - - - - - 363 - 363 Doubtful - - - - - - - - Total Commercial $ 94,553 $ 171,741 $ 224,260 $ 144,704 $ 68,258 $ 272,780 $ 312,893 $ 1,289,189 Commercial Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Agricultural Pass $ 40,919 $ 74,346 $ 41,434 $ 50,996 $ 12,164 $ 168,019 $ 348,460 $ 736,338 Special mention - - - 594 2,020 4,179 - 6,793 Substandard - - - - - 6,128 4,094 10,222 Doubtful - - - - - - - - Total Agricultural $ 40,919 $ 74,346 $ 41,434 $ 51,590 $ 14,184 $ 178,326 $ 352,554 $ 753,353 Agricultural Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Residential and home equity Pass $ 33,656 $ 63,154 $ 90,089 $ 80,757 $ 13,514 $ 72,734 $ 44,312 $ 398,216 Special mention - - - - - - - - Substandard - - - - - 774 - 774 Doubtful - - - - - - - - Total Residential and home equity $ 33,656 $ 63,154 $ 90,089 $ 80,757 $ 13,514 $ 73,508 $ 44,312 $ 398,990 Residential and home equity Current-period gross charge-offs $ - $ - $ - $ - $ - $ 14 $ - $ 14 Construction Pass $ - $ 3,000 $ - $ - $ 1,575 $ - $ 188,170 $ 192,745 Special mention - - - - - - - - Substandard - - - - - - - - Doubtful - - - - - - - - Total construction $ - $ 3,000 $ - $ - $ 1,575 $ - $ 188,170 $ 192,745 Construction Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Total Real estate $ 169,128 $ 312,241 $ 355,783 $ 277,051 $ 97,531 $ 524,614 $ 897,929 $ 2,634,277 Commercial & industrial Pass $ 47,471 $ 27,835 $ 23,821 $ 8,612 $ 5,357 $ 7,741 $ 356,637 $ 477,474 Special mention - - 4,878 - - - 6,832 11,710 Substandard - - - - - 499 89 588 Doubtful - - - - - - - - Total Commercial & industrial $ 47,471 $ 27,835 $ 28,699 $ 8,612 $ 5,357 $ 8,240 $ 363,558 $ 489,772 Commercial & industrial Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - September 30, 2023 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Total Agricultural Pass $ 3,311 $ 4,770 $ 2,279 $ 709 $ 1,100 $ 2,158 $ 283,619 $ 297,946 Special mention - - 75 - - - 3,923 3,998 Substandard - - - - 7 - - 7 Doubtful - - - - - - - - Total Agricultural $ 3,311 $ 4,770 $ 2,354 $ 709 $ 1,107 $ 2,158 $ 287,542 $ 301,951 Agricultural Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Commercial leases Pass $ 35,681 $ 33,040 $ 11,381 $ 9,943 $ 4,994 $ 30,586 $ - $ 125,625 Special mention - - - - 25 - - 25 Substandard - - - - - - - - Doubtful - - - - - - - - Total Commercial leases $ 35,681 $ 33,040 $ 11,381 $ 9,943 $ 5,019 $ 30,586 $ - $ 125,650 Commercial leases Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - Consumer and other Pass $ 1,470 $ 1,078 $ 466 $ 105 $ 67 $ 1,552 $ 599 $ 5,337 Special mention - - - - - - - - Substandard 191 - - - - 25 - 216 Doubtful - - - - - - - - Total Consumer and other $ 1,661 $ 1,078 $ 466 $ 105 $ 67 $ 1,577 $ 599 $ 5,553 Consumer and other Current-period gross charge-offs $ 30 $ 3 $ - $ - $ - $ - $ - $ 33 Total net loans and leases Pass $ 257,061 $ 378,964 $ 379,203 $ 295,826 $ 107,029 $ 553,410 $ 1,533,735 $ 3,505,228 Special mention - - 19,480 594 2,045 5,976 11,710 39,805 Substandard 191 - - - 7 7,789 4,183 12,170 Doubtful - - - - - - - - Total net loans and leases $ 257,252 $ 378,964 $ 398,683 $ 296,420 $ 109,081 $ 567,175 $ 1,549,628 $ 3,557,203 Total current-period gross charge-offs $ 30 $ 3 $ - $ - $ - $ 14 $ - $ 47 |
Summary of Changes in Loans to Certain Directors and Executive Officers | A summary of the changes in those loans is as follows: September 30, December 31, (Dollars in thousands) 2023 2022 Balance at beginning of the period $ 17,521 $ 18,128 New loans or advances during year 1,706 523 Repayments (1,655 ) (1,130 ) Balance at end of period $ 17,572 $ 17,521 |
Amortized Cost of Collateral Dependent Loans by Class | The following tables present the amortized cost basis for collateral dependent loans and leases by type as of September 30, 2023 and December 31, 2022, respectively: September 30, 2023 (Dollars in thousands) Real Estate Vehicles and Equipment Total Collateral dependent loans and leases Real estate: Commercial $ 1,450 $ - $ 1,450 Agricultural 10,222 - 10,222 Residential and home equity 1,630 - 1,630 Construction - - - Total real estate 13,302 - 13,302 Commercial & industrial 89 495 584 Agricultural - 7 7 Commercial leases - - - Consumer and other - 171 171 Total collateral dependent, gross loans and leases $ 13,391 $ 673 $ 14,064 December 31, 2022 (Dollars in thousands) Real Estate Vehicles and Equipment Total Collateral dependent loans and leases Real estate: Commercial $ 1,114 $ - $ 1,114 Agricultural 11,035 - 11,035 Residential and home equity 2,153 - 2,153 Construction - - - Total real estate 14,302 - 14,302 Commercial & industrial - - - Agricultural - 13 13 Commercial leases - - - Consumer and other - 158 158 Total collateral dependent, gross loans and leases $ 14,302 $ 171 $ 14,473 |
Changes in Allowance for Credit Losses | Changes in the allowance for credit losses are as follows: For the Three Months Ended September 30, 2023 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning of period $ 34,695 $ 3,195 $ 7,179 $ 24,194 $ 1,657 $ 192 $ 71,112 Provision / (recapture) for credit losses (730 ) 417 268 2,748 310 (13 ) 3,000 Charge-offs - - - - - (15 ) (15 ) Recoveries - - 11 43 - 8 62 Net (charge-offs) / recoveries - - 11 43 - (7 ) 47 Balance at end of period $ 33,965 $ 3,612 $ 7,458 $ 26,985 $ 1,967 $ 172 $ 74,159 For the Three Months Ended September 30, 2022 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning $ 34,716 $ 2,876 $ 6,874 $ 15,808 $ 1,645 $ 161 $ 62,080 Provision / (recapture) for credit losses (1,616 ) 119 (15 ) 3,063 (57 ) 5 1,499 Charge-offs - - - (48 ) - (20 ) (68 ) Recoveries - - 6 92 - 8 106 Net (charge-offs) / recoveries - - 6 44 - (12 ) 38 Balance at end of period $ 33,100 $ 2,995 $ 6,865 $ 18,915 $ 1,588 $ 154 $ 63,617 For the Nine Months Ended September 30, 2023 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning of period $ 32,551 $ 3,026 $ 7,508 $ 21,705 $ 1,924 $ 171 $ 66,885 Provision / (recapture) for credit losses 1,244 586 (78 ) 5,196 43 9 7,000 Charge-offs - - (14 ) - - (33 ) (47 ) Recoveries 170 - 42 84 - 25 321 Net (charge-offs) / recoveries 170 - 28 84 - (8 ) 274 Balance at end of period $ 33,965 $ 3,612 $ 7,458 $ 26,985 $ 1,967 $ 172 $ 74,159 For the Nine Months Ended September 30, 2022 (Dollars in thousands) Commercial & Agricultural Construction Residential & Home Equity Commercial & Agricultural Commercial Leases Consumer Total Allowance for credit losses: Balance at beginning of period $ 38,149 $ 1,456 $ 2,847 $ 16,954 $ 938 $ 663 $ 61,007 Impact of Adopting ASC 326 - - - - - - - Provision / (recapture) for credit losses (5,049 ) 1,539 3,893 2,058 650 (485 ) 2,606 Charge-offs - - - (324 ) - (38 ) (362 ) Recoveries - - 125 227 - 14 366 Net (charge-offs) / recoveries - - 125 (97 ) - (24 ) 4 Balance at end of period $ 33,100 $ 2,995 $ 6,865 $ 18,915 $ 1,588 $ 154 $ 63,617 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Summary of Certificates of Deposit | Certificates of deposit greater than and less than or equal to the FDIC insurance limit of $250,000 are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Certificates of deposit: Certificates of deposit less than or equal to $250,000 $ 308,171 $ 202,554 Certificates of deposit greater than $250,000 313,910 128,846 Total certificates of deposit $ 622,081 $ 331,400 |
Maturities for Certificates of Deposit | Scheduled maturities for certificates of deposit are as follows: (Dollars in thousands) Amount 2023 $ 131,282 2024 461,680 2025 23,267 2026 4,494 2027 1,358 Total certificates of deposit $ 622,081 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following tables summarize the carrying amount and estimated fair values of the Company’s financial assets and liabilities not carried at fair value, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. September 30 2023 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash and cash equivalents $ 668,361 $ 668,361 $ - $ - $ 668,361 Held-to-maturity securities 825,565 - 579,814 56,809 636,623 Non-marketable securities 15,549 - - 15,549 15,549 Loans and leases, net 3,483,044 - - 3,263,858 3,263,858 Bank-owned life insurance 67,094 67,094 - - 67,094 Financial Liabilities: Total deposits $ 4,748,767 $ - $ 4,126,686 $ 614,257 $ 4,740,943 Subordinated debentures 10,310 - 12,206 - 12,206 December 31, 2022 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash and cash equivalents $ 588,257 $ 588,257 $ - $ - $ 588,257 Held-to-maturity securities 844,953 - 645,859 42,534 688,393 Non-marketable securities 15,549 - - 15,549 15,549 Loans and leases, net 3,445,476 - - 3,335,042 3,335,042 Bank-owned life insurance 73,038 73,038 - - 73,038 Financial Liabilities: Total deposits $ 4,759,269 $ - $ 4,427,869 $ 323,572 $ 4,751,441 Subordinated debentures 10,310 - 12,211 - 12,211 |
Assets Measured at Fair Value on a Recurring and Non-recurring Basis | The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring and non-recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value for the periods indicated. September 30 2023 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Available-for-sale securities U.S. Government-sponsored securities $ 3,609 $ - $ 3,609 $ - $ 3,609 Mortgage-backed securities 92,118 - 92,118 - 92,118 Collateralized mortgage obligations 563 - 563 - 563 Corporate securities 9,893 - 9,893 - 9,893 Other 310 - 310 - 310 Fair valued on a non-recurring basis: Collateral Dependent loans $ 13,480 $ - $ - $ 13,480 $ 13,480 Other real estate owned 873 - - 873 873 December 31, 2022 Fair Value Measurements (Dollars in thousands) Carrying Amount Level 1 Level 2 Level 3 Total Fair Value Fair valued on a recurring basis: Available-for-sale securities U.S. Treasury notes $ 4,964 $ 4,964 $ - $ - $ 4,964 U.S. Government-sponsored securities 4,427 - 4,427 - 4,427 Mortgage-backed securities 132,528 - 132,528 - 132,528 Collateralized mortgage obligations 1,054 - 1,054 - 1,054 Corporate securities 9,581 - 9,581 - 9,581 Other 310 - 310 - 310 Fair valued on a non-recurring basis: Collateral Dependent loans $ 14,473 $ - $ - $ 14,473 $ 14,473 Other real estate owned 873 - - 873 873 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Off Balance Sheet Arrangements | The Company had the following off balance sheet commitments as of the dates indicated. (Dollars in thousands) September 30, 2023 December 31, 2022 Commitments to extend credit, including unsecured commitments of $ 19,816 20,401 $ 1,156,479 $ 1,141,036 Stand-by letters of credit, including unsecured commitments of $ 7,970 7,954 16,802 17,138 |
Investment Securities, Securiti
Investment Securities, Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | $ 135,125 | $ 183,171 | |
Gross unrealized gains | 22 | 30 | |
Gross unrealized losses | 28,654 | 30,337 | |
Fair value | 106,493 | 152,864 | |
U.S. Treasury Notes [Member] | |||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | 4,989 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 25 | ||
Fair value | 4,964 | ||
U.S. Government-sponsored Securities [Member] | |||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | 3,614 | 4,430 | |
Gross unrealized gains | 15 | 21 | |
Gross unrealized losses | 20 | 24 | |
Fair value | 3,609 | 4,427 | |
Mortgage-backed Securities [Member] | |||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | [1] | 120,588 | 162,314 |
Gross unrealized gains | [1] | 7 | 9 |
Gross unrealized losses | [1] | 28,477 | 29,795 |
Fair value | [1] | 92,118 | 132,528 |
Collateralized Mortgage Obligations [Member] | |||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | [1] | 579 | 1,085 |
Gross unrealized gains | [1] | 0 | 0 |
Gross unrealized losses | [1] | 16 | 31 |
Fair value | [1] | 563 | 1,054 |
Corporate Securities [Member] | |||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | 10,034 | 10,043 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 141 | 462 | |
Fair value | 9,893 | 9,581 | |
Other [Member] | |||
Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-sale [Abstract] | |||
Amortized cost | 310 | 310 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | $ 310 | $ 310 | |
[1]All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Securi_2
Investment Securities, Securities Held-to-Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||
Amortized cost | $ 826,015 | $ 845,346 | ||||
Gross unrealized gains | 1 | 78 | ||||
Gross unrealized losses | 189,393 | 157,031 | ||||
Fair value | 636,623 | 688,393 | ||||
Allowance for credit losses | 450 | 393 | $ 393 | |||
Mortgage-backed Securities [Member] | ||||||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||
Amortized cost | [1] | 673,924 | 702,858 | |||
Gross unrealized gains | [1] | 0 | 29 | |||
Gross unrealized losses | [1] | 170,743 | 141,121 | |||
Fair value | [1] | 503,181 | 561,766 | |||
Allowance for credit losses | 0 | [1] | 0 | [1] | 0 | |
Collateralized Mortgage Obligations [Member] | ||||||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||
Amortized cost | [1] | 75,507 | 80,186 | |||
Gross unrealized gains | [1] | 0 | 0 | |||
Gross unrealized losses | [1] | 17,676 | 15,701 | |||
Fair value | [1] | 57,831 | 64,485 | |||
Allowance for credit losses | 0 | [1] | 0 | [1] | 0 | |
Municipal Securities [Member] | ||||||
Book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity [Abstract] | ||||||
Amortized cost | 76,584 | 62,302 | ||||
Gross unrealized gains | 1 | 49 | ||||
Gross unrealized losses | 974 | 209 | ||||
Fair value | 75,611 | 62,142 | ||||
Allowance for credit losses | $ 450 | $ 393 | $ 393 | |||
[1]All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Gross Un
Investment Securities, Gross Unrealized Losses for Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | $ 5,153 | $ 41,513 | |
12 months or more, fair value | 98,038 | 107,496 | |
Fair value | 103,191 | 149,009 | |
Less than 12 months, unrealized losses | 232 | 1,696 | |
12 months or more, unrealized losses | 28,422 | 28,641 | |
Unrealized losses | 28,654 | 30,337 | |
U.S. Treasury Notes [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | 4,964 | ||
12 months or more, fair value | 0 | ||
Fair value | 4,964 | ||
Less than 12 months, unrealized losses | 25 | ||
12 months or more, unrealized losses | 0 | ||
Unrealized losses | 25 | ||
U.S. Government-sponsored Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | 223 | 378 | |
12 months or more, fair value | 1,121 | 1,326 | |
Fair value | 1,344 | 1,704 | |
Less than 12 months, unrealized losses | 1 | 1 | |
12 months or more, unrealized losses | 19 | 23 | |
Unrealized losses | 20 | 24 | |
Mortgage-backed Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | [1] | 4,930 | 35,117 |
12 months or more, fair value | [1] | 86,461 | 96,589 |
Fair value | [1] | 91,391 | 131,706 |
Less than 12 months, unrealized losses | [1] | 231 | 1,639 |
12 months or more, unrealized losses | [1] | 28,246 | 28,156 |
Unrealized losses | [1] | 28,477 | 29,795 |
Collateralized Mortgage Obligations [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | [1] | 0 | 1,054 |
12 months or more, fair value | [1] | 563 | 0 |
Fair value | [1] | 563 | 1,054 |
Less than 12 months, unrealized losses | [1] | 0 | 31 |
12 months or more, unrealized losses | [1] | 16 | 0 |
Unrealized losses | [1] | 16 | 31 |
Corporate Securities [Member] | |||
Available-for-sale Securities, Continuous Unrealized Loss Positions [Abstract] | |||
Less than 12 months, fair value | 0 | 0 | |
12 months or more, fair value | 9,893 | 9,581 | |
Fair value | 9,893 | 9,581 | |
Less than 12 months, unrealized losses | 0 | 0 | |
12 months or more, unrealized losses | 141 | 462 | |
Unrealized losses | $ 141 | $ 462 | |
[1]All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Securi_3
Investment Securities, Securities in Continuous Unrealized Loss Position (Details) | Sep. 30, 2023 Security |
Available-for-Sale Investment Securities in Continuous Unrealized Loss Position [Abstract] | |
Number of investment available-for-sale securities held | 179 |
Less than 12 months, number of positions | 13 |
12 months or more, number of positions | 143 |
Investment Securities, Activity
Investment Securities, Activity in Allowance for Credit Losses for Held-to-Maturity Securities by Major Type (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | |||
Activity in allowance for credit losses for held-to-maturity securities by major type [Abstract] | ||||
Beginning Balance | $ 393 | $ 393 | ||
Provision for credit losses | 57 | 0 | ||
Ending Balance | 450 | 393 | ||
Municipal Securities [Member] | ||||
Activity in allowance for credit losses for held-to-maturity securities by major type [Abstract] | ||||
Beginning Balance | 393 | 393 | ||
Provision for credit losses | 57 | 0 | ||
Ending Balance | 450 | 393 | ||
Mortgage-backed Securities [Member] | ||||
Activity in allowance for credit losses for held-to-maturity securities by major type [Abstract] | ||||
Beginning Balance | 0 | [1] | 0 | |
Provision for credit losses | 0 | 0 | ||
Ending Balance | [1] | 0 | 0 | |
Collateralized Mortgage Obligations [Member] | ||||
Activity in allowance for credit losses for held-to-maturity securities by major type [Abstract] | ||||
Beginning Balance | 0 | [1] | 0 | |
Provision for credit losses | 0 | 0 | ||
Ending Balance | [1] | $ 0 | $ 0 | |
[1]All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. |
Investment Securities, Contract
Investment Securities, Contractual Maturity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Amortized Cost [Abstract] | |
One year or less | $ 387 |
After one year through five years | 17,771 |
After five years through ten years | 6,561 |
After ten years | 110,406 |
Total | 135,125 |
Fair Value [Abstract] | |
One year or less | 386 |
After one year through five years | 17,321 |
After five years through ten years | 6,121 |
After ten years | 82,665 |
Total | 106,493 |
Amortized Cost [Abstract] | |
One year or less | 450 |
After one year through five years | 16,910 |
After five years through ten years | 24,031 |
After ten years | 784,624 |
Fair value, excluding securities without single maturity date | 826,015 |
Fair Value [Abstract] | |
One year or less | 450 |
After one year through five years | 16,335 |
After five years through ten years | 21,844 |
After ten years | 597,994 |
Fair value, excluding investment securities without single maturity date | $ 636,623 |
Investment Securities, Municipa
Investment Securities, Municipal Securities by Credit Rating (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Held-to-Maturity [Abstract] | |
Amortized cost | $ 76,584 |
AAA/AA/A Rating [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | 19,381 |
BBB/BB/B Rating [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | 393 |
Not Rated [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | 56,810 |
Municipal Securities [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | 76,584 |
Past due principal or interest payments of securities | 0 |
Municipal Securities [Member] | AAA/AA/A Rating [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | 19,381 |
Municipal Securities [Member] | BBB/BB/B Rating [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | 393 |
Municipal Securities [Member] | Not Rated [Member] | |
Held-to-Maturity [Abstract] | |
Amortized cost | $ 56,810 |
Investment Securities, Proceeds
Investment Securities, Proceeds from Sales and Calls of Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Proceeds from Sales and Calls of Investment Securities [Abstract] | ||
Gross proceeds | $ 30,482 | $ 31,394 |
Gross gains | 0 | 2 |
Gross losses | $ 5,686 | $ 2,987 |
Investment Securities, Pledged
Investment Securities, Pledged Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Pledged Securities [Abstract] | ||
Carrying amount of securities | $ 932,058 | $ 997,817 |
Asset Pledged as Collateral [Member] | Public Deposits, Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") Borrowings, and Other Government Agency Deposits [Member] | ||
Pledged Securities [Abstract] | ||
Carrying amount of securities | $ 757,200 | $ 478,700 |
Loans and Leases, Components of
Loans and Leases, Components of Loans and Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | $ 3,567,807 | $ 3,521,718 | ||||
Unearned income | (10,604) | (9,357) | ||||
Total net loans and leases | 3,557,203 | 3,512,361 | ||||
Allowance for credit losses | (74,159) | $ (71,112) | (66,885) | $ (63,617) | $ (62,080) | $ (61,007) |
Loans held-for-investment, net | 3,483,044 | 3,445,476 | ||||
Maximum borrowing capacity | 2,200,000 | 1,500,000 | ||||
Federal Home Loan Bank [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Maximum borrowing capacity | 794,900 | |||||
Federal Home Loan Bank [Member] | Asset Pledged as Collateral [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Loans held-for-investment, net | 1,300,000 | |||||
Federal Reserve Bank [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Maximum borrowing capacity | 1,200,000 | |||||
Federal Reserve Bank [Member] | Asset Pledged as Collateral [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Loans held-for-investment, net | 1,500,000 | |||||
Real Estate [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 2,642,468 | 2,609,920 | ||||
Total net loans and leases | 2,634,277 | 2,601,543 | ||||
Allowance for credit losses | (45,035) | (43,085) | ||||
Commercial [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 1,297,380 | 1,328,691 | ||||
Total net loans and leases | 1,289,189 | 1,320,314 | ||||
Allowance for credit losses | (26,724) | (18,055) | ||||
Agricultural [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 753,353 | 726,938 | ||||
Total net loans and leases | 753,353 | 726,938 | ||||
Allowance for credit losses | (7,241) | (14,496) | ||||
Residential and Home Equity [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 398,990 | 387,753 | ||||
Total net loans and leases | 398,990 | 387,753 | ||||
Allowance for credit losses | (7,458) | (7,179) | (7,508) | (6,865) | (6,874) | (2,847) |
Construction [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 192,745 | 166,538 | ||||
Total net loans and leases | 192,745 | 166,538 | ||||
Allowance for credit losses | (3,612) | (3,195) | (3,026) | (2,995) | (2,876) | (1,456) |
Commercial & Industrial [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 489,772 | 478,758 | ||||
Total net loans and leases | 489,772 | 478,758 | ||||
Allowance for credit losses | (17,903) | (11,503) | ||||
Agricultural [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 301,951 | 314,525 | ||||
Total net loans and leases | 301,951 | 314,525 | ||||
Allowance for credit losses | (9,082) | (10,202) | ||||
Commercial Leases [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 128,063 | 112,629 | ||||
Total net loans and leases | 125,650 | 111,649 | ||||
Allowance for credit losses | (1,967) | (1,657) | (1,924) | (1,588) | (1,645) | (938) |
Consumer and Other [Member] | ||||||
Loan & Lease Portfolio [Abstract] | ||||||
Gross loans and leases | 5,553 | 5,886 | ||||
Total net loans and leases | 5,553 | 5,886 | ||||
Allowance for credit losses | $ (172) | $ (192) | $ (171) | $ (154) | $ (161) | $ (663) |
Loans and Leases, Aging Analysi
Loans and Leases, Aging Analysis of Loan and Lease Portfolio Including Unearned Income (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | $ 0 | $ 0 |
Nonaccrual | 4,496 | 571 |
Loans and leases, net | 3,557,203 | 3,512,361 |
Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 6,905 | 668 |
30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 2,409 | 97 |
Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 3,550,298 | 3,511,693 |
Real Estate [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 4,457 | 571 |
Loans and leases, net | 2,634,277 | 2,601,543 |
Real Estate [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 5,632 | 571 |
Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 1,175 | 0 |
Real Estate [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 2,628,645 | 2,600,972 |
Commercial [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 363 | 403 |
Loans and leases, net | 1,289,189 | 1,320,314 |
Commercial [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 1,317 | 403 |
Commercial [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 954 | 0 |
Commercial [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 1,287,872 | 1,319,911 |
Agricultural [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 4,094 | 0 |
Loans and leases, net | 753,353 | 726,938 |
Agricultural [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 4,094 | 0 |
Agricultural [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 0 | 0 |
Agricultural [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 749,259 | 726,938 |
Residential and Home Equity [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Loans and leases, net | 398,990 | 387,753 |
Residential and Home Equity [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 221 | 0 |
Residential and Home Equity [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 221 | 0 |
Residential and Home Equity [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 398,769 | 387,753 |
Construction [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 168 |
Loans and leases, net | 192,745 | 166,538 |
Construction [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 0 | 168 |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 0 | 0 |
Construction [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 192,745 | 166,370 |
Commercial & Industrial [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 39 | 0 |
Loans and leases, net | 489,772 | 478,758 |
Commercial & Industrial [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 119 | 0 |
Commercial & Industrial [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 80 | 0 |
Commercial & Industrial [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 489,653 | 478,758 |
Agricultural [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Loans and leases, net | 301,951 | 314,525 |
Agricultural [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 0 | 0 |
Agricultural [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 0 | 0 |
Agricultural [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 301,951 | 314,525 |
Commercial Leases [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Loans and leases, net | 125,650 | 111,649 |
Commercial Leases [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 1,142 | 0 |
Commercial Leases [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 1,142 | 0 |
Commercial Leases [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 124,508 | 111,649 |
Consumer and Other [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
90+ Days Past Due | 0 | 0 |
Nonaccrual | 0 | 0 |
Loans and leases, net | 5,553 | 5,886 |
Consumer and Other [Member] | Total Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 12 | 97 |
Consumer and Other [Member] | 30-89 Days Past Due [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | 12 | 97 |
Consumer and Other [Member] | Current [Member] | ||
Aging Analysis of Loan & Lease Portfolio by Time Past Due [Abstract] | ||
Loans and leases, net | $ 5,541 | $ 5,789 |
Loans and Leases, Non-accrual L
Loans and Leases, Non-accrual Loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) Contract | Dec. 31, 2022 USD ($) | |
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | $ 4,496 | $ 571 |
Modified loans that subsequently defaulted | 0 | |
Real Estate [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 4,457 | 571 |
Commercial [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 363 | 403 |
Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 4,094 | 0 |
Residential and Home Equity [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | $ 0 | $ 0 |
Residential [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Number of loans modified | Contract | 1 | |
Amount of loans modified | $ 127 | |
Contractual interest rate of modified loans | 3.18% | 2.18% |
Contractual term | 25 years | 15 years |
Construction [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | $ 0 | $ 168 |
Commercial & Industrial [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 39 | 0 |
Agricultural [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Commercial Leases [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | 0 | 0 |
Consumer and Other [Member] | ||
Non-accrual Loans and Leases [Abstract] | ||
Non-accrual loans and leases | $ 0 | $ 0 |
Loans and Leases, Credit Risk R
Loans and Leases, Credit Risk Rating Categories for Loans and Leases Held-for-Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | $ 3,557,203 | $ 3,512,361 | ||||
Allowance for credit losses | 74,159 | $ 71,112 | 66,885 | $ 63,617 | $ 62,080 | $ 61,007 |
Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 3,505,228 | 3,482,530 | ||||
Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 39,805 | 22,252 | ||||
Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 12,170 | 7,579 | ||||
Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Real Estate [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 2,634,277 | 2,601,543 | ||||
Allowance for credit losses | 45,035 | 43,085 | ||||
Real Estate [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 2,598,846 | 2,578,045 | ||||
Real Estate [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 24,072 | 16,426 | ||||
Real Estate [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 11,359 | 7,072 | ||||
Real Estate [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Commercial [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 1,289,189 | 1,320,314 | ||||
Allowance for credit losses | 26,724 | 18,055 | ||||
Commercial [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 1,271,547 | 1,314,377 | ||||
Commercial [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 17,279 | 5,535 | ||||
Commercial [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 363 | 402 | ||||
Commercial [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Agricultural [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 753,353 | 726,938 | ||||
Allowance for credit losses | 7,241 | 14,496 | ||||
Agricultural [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 736,338 | 709,927 | ||||
Agricultural [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 6,793 | 10,891 | ||||
Agricultural [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 10,222 | 6,120 | ||||
Agricultural [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Residential and Home Equity [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 398,990 | 387,753 | ||||
Allowance for credit losses | 7,458 | 7,179 | 7,508 | 6,865 | 6,874 | 2,847 |
Residential and Home Equity [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 398,216 | 387,371 | ||||
Residential and Home Equity [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Residential and Home Equity [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 774 | 382 | ||||
Residential and Home Equity [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Construction [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 192,745 | 166,538 | ||||
Allowance for credit losses | 3,612 | 3,195 | 3,026 | 2,995 | 2,876 | 1,456 |
Construction [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 192,745 | 166,370 | ||||
Construction [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Construction [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 168 | ||||
Construction [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Commercial & Industrial [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 489,772 | 478,758 | ||||
Allowance for credit losses | 17,903 | 11,503 | ||||
Commercial & Industrial [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 477,474 | 478,437 | ||||
Commercial & Industrial [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 11,710 | 63 | ||||
Commercial & Industrial [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 588 | 258 | ||||
Commercial & Industrial [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Agricultural [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 301,951 | 314,525 | ||||
Allowance for credit losses | 9,082 | 10,202 | ||||
Agricultural [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 297,946 | 308,830 | ||||
Agricultural [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 3,998 | 5,682 | ||||
Agricultural [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 7 | 13 | ||||
Agricultural [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Commercial Leases [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 125,650 | 111,649 | ||||
Allowance for credit losses | 1,967 | 1,657 | 1,924 | 1,588 | 1,645 | 938 |
Commercial Leases [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 125,625 | 111,568 | ||||
Commercial Leases [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 25 | 81 | ||||
Commercial Leases [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Commercial Leases [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Consumer and Other [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 5,553 | 5,886 | ||||
Allowance for credit losses | 172 | $ 192 | 171 | $ 154 | $ 161 | $ 663 |
Consumer and Other [Member] | Pass [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 5,337 | 5,650 | ||||
Consumer and Other [Member] | Special Mention [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 0 | 0 | ||||
Consumer and Other [Member] | Substandard [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | 216 | 236 | ||||
Consumer and Other [Member] | Doubtful [Member] | ||||||
Loan & Lease Portfolio Allocated by Management's Internal Risk Ratings [Abstract] | ||||||
Gross loans and leases | $ 0 | $ 0 |
Loans and Leases, Outstanding L
Loans and Leases, Outstanding Loan and Lease Balances Held-for-Investment by Segment and Class, Credit Quality Indicators, Vintage Year by Class of Financing Receivable and Current Period Gross Charge-Offs by Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | $ 257,252 | $ 257,252 | |||
2022 | 378,964 | 378,964 | |||
2021 | 398,683 | 398,683 | |||
2020 | 296,420 | 296,420 | |||
2019 | 109,081 | 109,081 | |||
Prior | 567,175 | 567,175 | |||
Revolving loans amortized cost | 1,549,628 | 1,549,628 | |||
Total net loans and leases | 3,557,203 | 3,557,203 | $ 3,512,361 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 30 | ||||
2022 | 3 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 14 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 15 | $ 68 | 47 | $ 362 | |
Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 257,061 | 257,061 | |||
2022 | 378,964 | 378,964 | |||
2021 | 379,203 | 379,203 | |||
2020 | 295,826 | 295,826 | |||
2019 | 107,029 | 107,029 | |||
Prior | 553,410 | 553,410 | |||
Revolving loans amortized cost | 1,533,735 | 1,533,735 | |||
Total net loans and leases | 3,505,228 | 3,505,228 | 3,482,530 | ||
Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 19,480 | 19,480 | |||
2020 | 594 | 594 | |||
2019 | 2,045 | 2,045 | |||
Prior | 5,976 | 5,976 | |||
Revolving loans amortized cost | 11,710 | 11,710 | |||
Total net loans and leases | 39,805 | 39,805 | 22,252 | ||
Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 191 | 191 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 7 | 7 | |||
Prior | 7,789 | 7,789 | |||
Revolving loans amortized cost | 4,183 | 4,183 | |||
Total net loans and leases | 12,170 | 12,170 | 7,579 | ||
Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Real Estate [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 169,128 | 169,128 | |||
2022 | 312,241 | 312,241 | |||
2021 | 355,783 | 355,783 | |||
2020 | 277,051 | 277,051 | |||
2019 | 97,531 | 97,531 | |||
Prior | 524,614 | 524,614 | |||
Revolving loans amortized cost | 897,929 | 897,929 | |||
Total net loans and leases | 2,634,277 | 2,634,277 | 2,601,543 | ||
Real Estate [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
Total net loans and leases | 2,598,846 | 2,598,846 | 2,578,045 | ||
Real Estate [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
Total net loans and leases | 24,072 | 24,072 | 16,426 | ||
Real Estate [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
Total net loans and leases | 11,359 | 11,359 | 7,072 | ||
Real Estate [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
Total net loans and leases | 0 | 0 | 0 | ||
Commercial [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 94,553 | 94,553 | |||
2022 | 171,741 | 171,741 | |||
2021 | 224,260 | 224,260 | |||
2020 | 144,704 | 144,704 | |||
2019 | 68,258 | 68,258 | |||
Prior | 272,780 | 272,780 | |||
Revolving loans amortized cost | 312,893 | 312,893 | |||
Total net loans and leases | 1,289,189 | 1,289,189 | 1,320,314 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | ||||
Commercial [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 94,553 | 94,553 | |||
2022 | 171,741 | 171,741 | |||
2021 | 209,733 | 209,733 | |||
2020 | 144,704 | 144,704 | |||
2019 | 68,258 | 68,258 | |||
Prior | 270,620 | 270,620 | |||
Revolving loans amortized cost | 311,938 | 311,938 | |||
Total net loans and leases | 1,271,547 | 1,271,547 | 1,314,377 | ||
Commercial [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 14,527 | 14,527 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 1,797 | 1,797 | |||
Revolving loans amortized cost | 955 | 955 | |||
Total net loans and leases | 17,279 | 17,279 | 5,535 | ||
Commercial [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 363 | 363 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 363 | 363 | 402 | ||
Commercial [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Agricultural [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 40,919 | 40,919 | |||
2022 | 74,346 | 74,346 | |||
2021 | 41,434 | 41,434 | |||
2020 | 51,590 | 51,590 | |||
2019 | 14,184 | 14,184 | |||
Prior | 178,326 | 178,326 | |||
Revolving loans amortized cost | 352,554 | 352,554 | |||
Total net loans and leases | 753,353 | 753,353 | 726,938 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | ||||
Agricultural [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 40,919 | 40,919 | |||
2022 | 74,346 | 74,346 | |||
2021 | 41,434 | 41,434 | |||
2020 | 50,996 | 50,996 | |||
2019 | 12,164 | 12,164 | |||
Prior | 168,019 | 168,019 | |||
Revolving loans amortized cost | 348,460 | 348,460 | |||
Total net loans and leases | 736,338 | 736,338 | 709,927 | ||
Agricultural [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 594 | 594 | |||
2019 | 2,020 | 2,020 | |||
Prior | 4,179 | 4,179 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 6,793 | 6,793 | 10,891 | ||
Agricultural [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 6,128 | 6,128 | |||
Revolving loans amortized cost | 4,094 | 4,094 | |||
Total net loans and leases | 10,222 | 10,222 | 6,120 | ||
Agricultural [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Residential and Home Equity [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 33,656 | 33,656 | |||
2022 | 63,154 | 63,154 | |||
2021 | 90,089 | 90,089 | |||
2020 | 80,757 | 80,757 | |||
2019 | 13,514 | 13,514 | |||
Prior | 73,508 | 73,508 | |||
Revolving loans amortized cost | 44,312 | 44,312 | |||
Total net loans and leases | 398,990 | 398,990 | 387,753 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 14 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | 0 | 14 | 0 | |
Residential and Home Equity [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 33,656 | 33,656 | |||
2022 | 63,154 | 63,154 | |||
2021 | 90,089 | 90,089 | |||
2020 | 80,757 | 80,757 | |||
2019 | 13,514 | 13,514 | |||
Prior | 72,734 | 72,734 | |||
Revolving loans amortized cost | 44,312 | 44,312 | |||
Total net loans and leases | 398,216 | 398,216 | 387,371 | ||
Residential and Home Equity [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Residential and Home Equity [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 774 | 774 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 774 | 774 | 382 | ||
Residential and Home Equity [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Construction [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 3,000 | 3,000 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 1,575 | 1,575 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 188,170 | 188,170 | |||
Total net loans and leases | 192,745 | 192,745 | 166,538 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Construction [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 3,000 | 3,000 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 1,575 | 1,575 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 188,170 | 188,170 | |||
Total net loans and leases | 192,745 | 192,745 | 166,370 | ||
Construction [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Construction [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 168 | ||
Construction [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Commercial & Industrial [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 47,471 | 47,471 | |||
2022 | 27,835 | 27,835 | |||
2021 | 28,699 | 28,699 | |||
2020 | 8,612 | 8,612 | |||
2019 | 5,357 | 5,357 | |||
Prior | 8,240 | 8,240 | |||
Revolving loans amortized cost | 363,558 | 363,558 | |||
Total net loans and leases | 489,772 | 489,772 | 478,758 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | ||||
Commercial & Industrial [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 47,471 | 47,471 | |||
2022 | 27,835 | 27,835 | |||
2021 | 23,821 | 23,821 | |||
2020 | 8,612 | 8,612 | |||
2019 | 5,357 | 5,357 | |||
Prior | 7,741 | 7,741 | |||
Revolving loans amortized cost | 356,637 | 356,637 | |||
Total net loans and leases | 477,474 | 477,474 | 478,437 | ||
Commercial & Industrial [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 4,878 | 4,878 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 6,832 | 6,832 | |||
Total net loans and leases | 11,710 | 11,710 | 63 | ||
Commercial & Industrial [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 499 | 499 | |||
Revolving loans amortized cost | 89 | 89 | |||
Total net loans and leases | 588 | 588 | 258 | ||
Commercial & Industrial [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Agricultural [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 3,311 | 3,311 | |||
2022 | 4,770 | 4,770 | |||
2021 | 2,354 | 2,354 | |||
2020 | 709 | 709 | |||
2019 | 1,107 | 1,107 | |||
Prior | 2,158 | 2,158 | |||
Revolving loans amortized cost | 287,542 | 287,542 | |||
Total net loans and leases | 301,951 | 301,951 | 314,525 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | ||||
Agricultural [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 3,311 | 3,311 | |||
2022 | 4,770 | 4,770 | |||
2021 | 2,279 | 2,279 | |||
2020 | 709 | 709 | |||
2019 | 1,100 | 1,100 | |||
Prior | 2,158 | 2,158 | |||
Revolving loans amortized cost | 283,619 | 283,619 | |||
Total net loans and leases | 297,946 | 297,946 | 308,830 | ||
Agricultural [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 75 | 75 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 3,923 | 3,923 | |||
Total net loans and leases | 3,998 | 3,998 | 5,682 | ||
Agricultural [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 7 | 7 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 7 | 7 | 13 | ||
Agricultural [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Commercial Leases [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 35,681 | 35,681 | |||
2022 | 33,040 | 33,040 | |||
2021 | 11,381 | 11,381 | |||
2020 | 9,943 | 9,943 | |||
2019 | 5,019 | 5,019 | |||
Prior | 30,586 | 30,586 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 125,650 | 125,650 | 111,649 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 0 | 0 | 0 | 0 | |
Commercial Leases [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 35,681 | 35,681 | |||
2022 | 33,040 | 33,040 | |||
2021 | 11,381 | 11,381 | |||
2020 | 9,943 | 9,943 | |||
2019 | 4,994 | 4,994 | |||
Prior | 30,586 | 30,586 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 125,625 | 125,625 | 111,568 | ||
Commercial Leases [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 25 | 25 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 25 | 25 | 81 | ||
Commercial Leases [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Commercial Leases [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Consumer and Other [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 1,661 | 1,661 | |||
2022 | 1,078 | 1,078 | |||
2021 | 466 | 466 | |||
2020 | 105 | 105 | |||
2019 | 67 | 67 | |||
Prior | 1,577 | 1,577 | |||
Revolving loans amortized cost | 599 | 599 | |||
Total net loans and leases | 5,553 | 5,553 | 5,886 | ||
Financing Receivable, Current Period Gross Charge-offs [Abstract] | |||||
2023 | 30 | ||||
2022 | 3 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans amortized cost | 0 | ||||
Total | 15 | $ 20 | 33 | $ 38 | |
Consumer and Other [Member] | Pass [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 1,470 | 1,470 | |||
2022 | 1,078 | 1,078 | |||
2021 | 466 | 466 | |||
2020 | 105 | 105 | |||
2019 | 67 | 67 | |||
Prior | 1,552 | 1,552 | |||
Revolving loans amortized cost | 599 | 599 | |||
Total net loans and leases | 5,337 | 5,337 | 5,650 | ||
Consumer and Other [Member] | Special Mention [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 0 | 0 | 0 | ||
Consumer and Other [Member] | Substandard [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 191 | 191 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 25 | 25 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | 216 | 216 | 236 | ||
Consumer and Other [Member] | Doubtful [Member] | |||||
Outstanding Loan Balances by Credit Quality Indicators and Vintage Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans amortized cost | 0 | 0 | |||
Total net loans and leases | $ 0 | $ 0 | $ 0 |
Loans and Leases, Summary of Ch
Loans and Leases, Summary of Changes in Loans to Certain Directors and Executive Officers (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Summary of Changes in Loans to Certain Directors and Executive Officers [Roll Forward] | ||
Balance at beginning of the period | $ 17,521 | $ 18,128 |
New loans or advances during year | 1,706 | 523 |
Repayments | (1,655) | (1,130) |
Balance at end of period | $ 17,572 | $ 17,521 |
Loans and Leases, Collateral De
Loans and Leases, Collateral Dependent Loans and Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | $ 14,064 | $ 14,473 |
Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 13,391 | 14,302 |
Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 673 | 171 |
Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 13,302 | 14,302 |
Real Estate [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 13,302 | 14,302 |
Real Estate [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Commercial [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 1,450 | 1,114 |
Commercial [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 1,450 | 1,114 |
Commercial [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Agricultural [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 10,222 | 11,035 |
Agricultural [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 10,222 | 11,035 |
Agricultural [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Residential and Home Equity [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 1,630 | 2,153 |
Residential and Home Equity [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 1,630 | 2,153 |
Residential and Home Equity [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Construction [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Construction [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Construction [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Commercial & Industrial [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 584 | 0 |
Commercial & Industrial [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 89 | 0 |
Commercial & Industrial [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 495 | 0 |
Agricultural [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 7 | 13 |
Agricultural [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Agricultural [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 7 | 13 |
Commercial Leases [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Commercial Leases [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Commercial Leases [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Consumer and Other [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 171 | 158 |
Consumer and Other [Member] | Real Estate [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | 0 | 0 |
Consumer and Other [Member] | Vehicles and Equipment [Member] | ||
Loans and Leases [Abstract] | ||
Collateral dependent loans and leases, amortized cost | $ 171 | $ 158 |
Loans and Leases, Changes in Al
Loans and Leases, Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 71,112 | $ 62,080 | $ 66,885 | $ 61,007 |
Provision / (recapture) for credit losses | 3,000 | 1,499 | 7,000 | 2,606 |
Charge-offs | (15) | (68) | (47) | (362) |
Recoveries | 62 | 106 | 321 | 366 |
Net (charge-offs) / recoveries | 47 | 38 | 274 | 4 |
Balance at end of period | 74,159 | 63,617 | 74,159 | 63,617 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Commercial & Agricultural R/E [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 34,695 | 34,716 | 32,551 | 38,149 |
Provision / (recapture) for credit losses | (730) | (1,616) | 1,244 | (5,049) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 170 | 0 |
Net (charge-offs) / recoveries | 0 | 0 | 170 | 0 |
Balance at end of period | 33,965 | 33,100 | 33,965 | 33,100 |
Commercial & Agricultural R/E [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Construction [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 3,195 | 2,876 | 3,026 | 1,456 |
Provision / (recapture) for credit losses | 417 | 119 | 586 | 1,539 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs) / recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | 3,612 | 2,995 | 3,612 | 2,995 |
Construction [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Residential & Home Equity [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 7,179 | 6,874 | 7,508 | 2,847 |
Provision / (recapture) for credit losses | 268 | (15) | (78) | 3,893 |
Charge-offs | 0 | 0 | (14) | 0 |
Recoveries | 11 | 6 | 42 | 125 |
Net (charge-offs) / recoveries | 11 | 6 | 28 | 125 |
Balance at end of period | 7,458 | 6,865 | 7,458 | 6,865 |
Residential & Home Equity [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Commercial & Agricultural [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 24,194 | 15,808 | 21,705 | 16,954 |
Provision / (recapture) for credit losses | 2,748 | 3,063 | 5,196 | 2,058 |
Charge-offs | 0 | (48) | 0 | (324) |
Recoveries | 43 | 92 | 84 | 227 |
Net (charge-offs) / recoveries | 43 | 44 | 84 | (97) |
Balance at end of period | 26,985 | 18,915 | 26,985 | 18,915 |
Commercial & Agricultural [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Commercial Leases [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 1,657 | 1,645 | 1,924 | 938 |
Provision / (recapture) for credit losses | 310 | (57) | 43 | 650 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge-offs) / recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | 1,967 | 1,588 | 1,967 | 1,588 |
Commercial Leases [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Consumer and Other [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 192 | 161 | 171 | 663 |
Provision / (recapture) for credit losses | (13) | 5 | 9 | (485) |
Charge-offs | (15) | (20) | (33) | (38) |
Recoveries | 8 | 8 | 25 | 14 |
Net (charge-offs) / recoveries | (7) | (12) | (8) | (24) |
Balance at end of period | $ 172 | $ 154 | $ 172 | 154 |
Consumer and Other [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ASC 326 [Member] | ||||
Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Certificates of deposit [Abstract] | ||
Certificates of deposit less than or equal to $250,000 | $ 308,171 | $ 202,554 |
Certificates of deposit greater than $250,000 | 313,910 | 128,846 |
Total certificates of deposit | 622,081 | 331,400 |
Maturities for Certificates of Deposit [Abstract] | ||
2023 | 131,282 | |
2024 | 461,680 | |
2025 | 23,267 | |
2026 | 4,494 | |
2027 and beyond | 1,358 | |
Total certificates of deposit | $ 622,081 | $ 331,400 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Short-term Borrowings Disclosure [Abstract] | ||
Lines of credit committed | $ 2,200,000 | $ 1,500,000 |
Average federal funds interest rate | 5.25% | |
Interest rate | 5.50% | |
Loans held for investment | $ 3,483,044 | 3,445,476 |
Carrying amount of securities | 932,058 | 997,817 |
Fed account borrowing capacity | 1,300,000 | |
Advances from FHLB | 0 | $ 0 |
Federal Reserve Bank [Member] | ||
Short-term Borrowings Disclosure [Abstract] | ||
Lines of credit committed | 1,200,000 | |
Asset Pledged as Collateral [Member] | Federal Reserve Bank [Member] | ||
Short-term Borrowings Disclosure [Abstract] | ||
Loans held for investment | 1,500,000 | |
Carrying amount of securities | 147,700 | |
FHLB of San Francisco [Member] | ||
Short-term Borrowings Disclosure [Abstract] | ||
Lines of credit committed | 796,700 | |
Debt instrument, collateral amount | $ 1,300,000 | |
Interest rate | 5.70% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Contribution shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | |
Executive Retirement Plan, Life Insurance Arrangements and Senior Management Retention Plan [Abstract] | |||||
Net gains (loss) on deferred compensation plan investments | $ (304) | $ 352 | $ 1,894 | $ (227) | |
Executive Officers [Member] | |||||
Executive Retirement Plan, Life Insurance Arrangements and Senior Management Retention Plan [Abstract] | |||||
Number of Contributions of Performance Component | Contribution | 2 | ||||
Number of Contributions of Performance Component Based on Profitability | Contribution | 1 | ||||
Employer contribution | $ 6,800 | 5,200 | |||
Carrying value of liability | $ 57,000 | $ 57,000 | $ 57,000 | ||
Common stock held as investments in Rabbi Trust of ERP (in shares) | shares | 49,121 | 49,121 | 50,196 | ||
Common stock held as investments in Rabbi Trust of ERP, historical cost basis amount | $ 31,600 | $ 31,600 | $ 31,400 | ||
Net gains (loss) on deferred compensation plan investments | 1,600 | (500) | |||
Senior Level Employees [Member] | Senior Management Retention Plan [Member] | |||||
Executive Retirement Plan, Life Insurance Arrangements and Senior Management Retention Plan [Abstract] | |||||
Employer contribution | 3,100 | 2,200 | |||
Carrying value of liability | $ 17,100 | $ 17,100 | $ 13,600 | ||
Common stock held as investments in Rabbi Trust of ERP (in shares) | shares | 18,161 | 18,161 | 15,998 | ||
Common stock held as investments in Rabbi Trust of ERP, historical cost basis amount | $ 13,000 | $ 13,000 | $ 10,800 | ||
Net gains (loss) on deferred compensation plan investments | $ 300 | $ 300 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets [Abstract] | ||
Non-marketable securities | $ 15,549 | $ 15,549 |
Recurring [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 668,361 | 588,257 |
Held-to-maturity securities | 636,623 | 688,393 |
Non-marketable securities | 15,549 | 15,549 |
Loans and leases, net | 3,263,858 | 3,335,042 |
Bank-owned life insurance | 67,094 | 73,038 |
Financial Liabilities [Abstract] | ||
Total deposits | 4,740,943 | 4,751,441 |
Subordinated debentures | 12,206 | 12,211 |
Recurring [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 668,361 | 588,257 |
Held-to-maturity securities | 0 | 0 |
Non-marketable securities | 0 | 0 |
Loans and leases, net | 0 | 0 |
Bank-owned life insurance | 67,094 | 73,038 |
Financial Liabilities [Abstract] | ||
Total deposits | 0 | 0 |
Subordinated debentures | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Held-to-maturity securities | 579,814 | 645,859 |
Non-marketable securities | 0 | 0 |
Loans and leases, net | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Total deposits | 4,126,686 | 4,427,869 |
Subordinated debentures | 12,206 | 12,211 |
Recurring [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Held-to-maturity securities | 56,809 | 42,534 |
Non-marketable securities | 15,549 | 15,549 |
Loans and leases, net | 3,263,858 | 3,335,042 |
Bank-owned life insurance | 0 | 0 |
Financial Liabilities [Abstract] | ||
Total deposits | 614,257 | 323,572 |
Subordinated debentures | 0 | 0 |
Recurring [Member] | Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 668,361 | 588,257 |
Held-to-maturity securities | 825,565 | 844,953 |
Non-marketable securities | 15,549 | 15,549 |
Loans and leases, net | 3,483,044 | 3,445,476 |
Bank-owned life insurance | 67,094 | 73,038 |
Financial Liabilities [Abstract] | ||
Total deposits | 4,748,767 | 4,759,269 |
Subordinated debentures | $ 10,310 | $ 10,310 |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets Measured at Fair Value on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | $ 106,493 | $ 152,864 | |
U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 4,964 | ||
Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | [1] | 92,118 | 132,528 |
Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 9,893 | 9,581 | |
Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 310 | 310 | |
Recurring [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 4,964 | ||
Recurring [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 3,609 | 4,427 | |
Recurring [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 92,118 | 132,528 | |
Recurring [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 563 | 1,054 | |
Recurring [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 9,893 | 9,581 | |
Recurring [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 310 | 310 | |
Recurring [Member] | Level 1 [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 4,964 | ||
Recurring [Member] | Level 1 [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | ||
Recurring [Member] | Level 2 [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 3,609 | 4,427 | |
Recurring [Member] | Level 2 [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 92,118 | 132,528 | |
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 563 | 1,054 | |
Recurring [Member] | Level 2 [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 9,893 | 9,581 | |
Recurring [Member] | Level 2 [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 310 | 310 | |
Recurring [Member] | Level 3 [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | ||
Recurring [Member] | Level 3 [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Recurring [Member] | Carrying Amount [Member] | U.S. Treasury Notes [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 4,964 | ||
Recurring [Member] | Carrying Amount [Member] | U.S. Government-Sponsored Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 3,609 | 4,427 | |
Recurring [Member] | Carrying Amount [Member] | Mortgage-Backed Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 92,118 | 132,528 | |
Recurring [Member] | Carrying Amount [Member] | Collateralized Mortgage Obligations [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 563 | 1,054 | |
Recurring [Member] | Carrying Amount [Member] | Corporate Securities [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 9,893 | 9,581 | |
Recurring [Member] | Carrying Amount [Member] | Other [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Available-for-sale securities | 310 | 310 | |
Nonrecurring [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Collateral dependent loans | 13,480 | 14,473 | |
Other real estate owned | 873 | 873 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Collateral dependent loans | 0 | 0 | |
Other real estate owned | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Collateral dependent loans | 0 | 0 | |
Other real estate owned | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Collateral dependent loans | 13,480 | 14,473 | |
Other real estate owned | 873 | 873 | |
Nonrecurring [Member] | Carrying Amount [Member] | |||
Fair Value on Recurring and Non-recurring Basis by Fair Value Hierarchy [Abstract] | |||
Collateral dependent loans | 13,480 | 14,473 | |
Other real estate owned | $ 873 | $ 873 | |
[1]All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Off Balance Sheet Commitments [Abstract] | ||
Reserve for unfunded loan commitments | $ 2,100 | $ 2,100 |
Remaining commitments to LIHTC | $ 17,500 | 19,700 |
Minimum [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off balance sheet risks maturity period | 1 month | |
Maximum [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off balance sheet risks maturity period | 60 months | |
Commitments to Extend Credit [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off-balance sheet risks, amount, liability | $ 1,156,479 | 1,141,036 |
Unsecured commitments | 19,816 | 20,401 |
Stand-by Letters of Credit [Member] | ||
Off Balance Sheet Commitments [Abstract] | ||
Off-balance sheet risks, amount, liability | 16,802 | 17,138 |
Unsecured commitments | $ 7,970 | $ 7,954 |