Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 11, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 333-236022 | |
Entity Registrant Name | BANCPLUS CORPORATION | |
Entity Incorporation, State or Country Code | MS | |
Entity Tax Identification Number | 64-0655312 | |
Entity Address, Address Line One | 1068 Highland Colony Parkway | |
Entity Address, City or Town | Ridgeland | |
Entity Address, State or Province | MS | |
Entity Address, Postal Zip Code | 39157 | |
City Area Code | 601 | |
Local Phone Number | 898-8300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,624,935 | |
Entity Central Index Key | 0001118004 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and due from banks | $ 102,227 | $ 107,402 |
Interest bearing deposits with banks | 88,987 | 30,493 |
Total cash and cash equivalents | 191,214 | 137,895 |
Securities available for sale | 806,110 | 623,920 |
Securities held to maturity - fair value: $57,895 - 2023; $62,068 - 2022 | 58,118 | 62,274 |
Loans held for sale | 13,176 | 5,373 |
Loans | 6,088,814 | 5,824,149 |
Less: Allowance for credit losses | 65,229 | 42,875 |
Net loans | 6,023,585 | 5,781,274 |
Premises and equipment | 132,694 | 124,707 |
Operating lease right-of-use assets | 33,757 | 35,747 |
Accrued interest receivable | 25,454 | 23,156 |
Goodwill | 62,772 | 62,772 |
Other assets | 196,801 | 177,703 |
Total assets | 7,543,681 | 7,034,821 |
Liabilities: | ||
Deposits | 6,108,309 | 5,824,904 |
Advances from Federal Home Loan Bank and other borrowings | 540,065 | 318,084 |
Subordinated debentures | 133,579 | 133,478 |
Operating lease liabilities | 35,475 | 37,439 |
Accrued interest payable | 5,924 | 2,334 |
Other liabilities | 29,522 | 20,482 |
Total liabilities | 6,852,874 | 6,336,721 |
Redeemable common stock owned by the ESOP | 89,356 | 96,984 |
Senior Non-Cumulative Perpetual Preferred Stock, Series ECIP, no par value | ||
250,000 authorized, issued and outstanding at June 30, 2023 and December 31, 2022; aggregate liquidation preference of $250,000 | 250,000 | 250,000 |
Common Stock, par value $1.00 per share. | ||
100,000,000 and 40,000,000 authorized at June 30, 2023 and December 31, 2022, respectively; 11,626,670 and 11,599,595 issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 11,626 | 11,599 |
Additional paid-in capital | 121,268 | 122,890 |
Retained earnings | 351,552 | 356,685 |
Accumulated other comprehensive loss, net | (43,639) | (43,074) |
Stockholders' equity before redeemable common stock owned by employee stock ownership plan | 690,807 | 698,100 |
Less: Redeemable common stock owned by the ESOP | (89,356) | (96,984) |
Total shareholders' equity | 601,451 | 601,116 |
Liabilities and equity | $ 7,543,681 | $ 7,034,821 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 250,000 | 250,000 |
Preferred stock, shares outstanding (in shares) | 250,000 | 250,000 |
Preferred stock, liquidation value (in USD per share) | $ 250,000 | $ 250,000 |
Common stock, par value per share (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100,000,000 | 40,000,000 |
Common stock, shares, issued (in shares) | 11,626,670 | 11,599,595 |
Common stock outstanding (in shares) | 11,626,670 | 11,599,595 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||||
Interest and fees on loans | $ 84,117 | $ 53,712 | $ 160,864 | $ 96,699 |
Taxable securities | 4,403 | 2,502 | 7,469 | 4,809 |
Tax-exempt securities | 364 | 401 | 744 | 821 |
Interest bearing bank balances and other | 778 | 477 | 1,356 | 708 |
Total interest income | 89,662 | 57,092 | 170,433 | 103,037 |
Interest expense: | ||||
Deposits | 24,364 | 2,362 | 41,524 | 4,039 |
Short-term borrowings | 1 | 0 | 80 | 0 |
Advances from Federal Home Loan Bank | 5,567 | 77 | 8,782 | 153 |
Other borrowings | 2,188 | 1,808 | 4,352 | 3,233 |
Total interest expense | 32,120 | 4,247 | 54,738 | 7,425 |
Net interest income | 57,542 | 52,845 | 115,695 | 95,612 |
Provision for credit losses | 916 | 234 | 1,439 | 451 |
Net interest income after provision for credit losses | 56,626 | 52,611 | 114,256 | 95,161 |
Other operating income: | ||||
Service charges on deposit accounts | 5,750 | 7,701 | 12,416 | 14,493 |
Mortgage origination income | 1,266 | 2,304 | 1,953 | 4,542 |
Debit card interchange | 2,609 | 2,748 | 5,175 | 5,176 |
Other income | 5,369 | 5,978 | 11,289 | 12,485 |
Total other operating income | 14,994 | 18,731 | 30,833 | 36,696 |
Other operating expenses: | ||||
Salaries and employee benefits expenses | 32,609 | 29,805 | 63,600 | 55,650 |
Net occupancy expenses | 4,738 | 4,891 | 9,210 | 9,007 |
Furniture, equipment and data processing expenses | 7,270 | 7,670 | 14,586 | 14,286 |
Other expenses | 10,628 | 8,649 | 19,491 | 20,142 |
Total other operating expenses | 55,245 | 51,015 | 106,887 | 99,085 |
Income before income taxes | 16,375 | 20,327 | 38,202 | 32,772 |
Income tax expense | 3,183 | 4,212 | 7,931 | 6,968 |
Net income | $ 13,192 | $ 16,115 | $ 30,271 | $ 25,804 |
Earnings per common share - basic (in USD per share) | $ 1.15 | $ 1.41 | $ 2.65 | $ 2.35 |
Earnings per common share - diluted (in USD per share) | $ 1.15 | $ 1.40 | $ 2.64 | $ 2.34 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,192 | $ 16,115 | $ 30,271 | $ 25,804 |
Other comprehensive loss, net of tax: | ||||
Unrealized losses on securities available for sale | (7,791) | (13,418) | (752) | (39,562) |
Tax effect | 1,940 | 3,341 | 187 | 9,851 |
Total other comprehensive loss, net of tax | (5,851) | (10,077) | (565) | (29,711) |
Comprehensive income (loss) | $ 7,341 | $ 6,038 | $ 29,706 | $ (3,907) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Total | Impact of ASU 2016-13 Adoption | As Reported Under ASU 2016-13 | Preferred Stock | Preferred Stock Impact of ASU 2016-13 Adoption | Preferred Stock As Reported Under ASU 2016-13 | Common Stock | Common Stock Impact of ASU 2016-13 Adoption | Common Stock As Reported Under ASU 2016-13 | Unearned ESOP Compensation | Additional Paid-In Capital | Additional Paid-In Capital Impact of ASU 2016-13 Adoption | Additional Paid-In Capital As Reported Under ASU 2016-13 | Retained Earnings | Retained Earnings Impact of ASU 2016-13 Adoption | Retained Earnings As Reported Under ASU 2016-13 | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Impact of ASU 2016-13 Adoption | Accumulated Other Comprehensive Loss As Reported Under ASU 2016-13 | Less: Redeemable Common Stock Owned by the ESOP | Less: Redeemable Common Stock Owned by the ESOP Impact of ASU 2016-13 Adoption | Less: Redeemable Common Stock Owned by the ESOP As Reported Under ASU 2016-13 |
Preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2021 | 10,115,945 | |||||||||||||||||||||
Shareholders' equity, beginning balance at Dec. 31, 2021 | $ 289,932 | $ 0 | $ 10,116 | $ (1,401) | $ 67,380 | $ 314,357 | $ (33) | $ (100,487) | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 25,804 | 25,804 | ||||||||||||||||||||
Issuance of preferred stock | 250,000 | $ 250,000 | ||||||||||||||||||||
Issuance of preferred stock (in shares) | 250,000 | |||||||||||||||||||||
Other comprehensive loss, net | (29,711) | (29,711) | ||||||||||||||||||||
Issuance of common stock for acquisition of First Trust Corporations (in shares) | 1,444,732 | |||||||||||||||||||||
Issuance of common stock for acquisition of First Trust Corporation | 56,489 | $ 1,445 | 55,044 | |||||||||||||||||||
Issuance of restricted stock (in shares) | 95,768 | |||||||||||||||||||||
Issuance of restricted stock | 0 | $ 96 | (96) | |||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (10,438) | |||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (712) | $ (11) | (701) | |||||||||||||||||||
Purchase of Company stock | (1,250) | $ (19) | (1,231) | |||||||||||||||||||
Purchase of Company stock (in shares) | (18,936) | |||||||||||||||||||||
Stock based compensation | 1,736 | 1,736 | ||||||||||||||||||||
Net change fair value of ESOP shares | 2,688 | 2,688 | ||||||||||||||||||||
Common stock released by ESOP | 1,401 | 1,401 | ||||||||||||||||||||
Dividends paid | (8,922) | (8,922) | ||||||||||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2022 | 250,000 | |||||||||||||||||||||
Shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 11,627,071 | |||||||||||||||||||||
Shareholders' equity, ending balance at Jun. 30, 2022 | 587,455 | $ 250,000 | $ 11,627 | 0 | 122,132 | 331,239 | (29,744) | (97,799) | ||||||||||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2022 | 0 | |||||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Mar. 31, 2022 | 11,580,880 | |||||||||||||||||||||
Shareholders' equity, beginning balance at Mar. 31, 2022 | 332,392 | $ 0 | $ 11,581 | 0 | 123,005 | 319,898 | (19,667) | (102,425) | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 16,115 | 16,115 | ||||||||||||||||||||
Issuance of preferred stock | 250,000 | $ 250,000 | ||||||||||||||||||||
Issuance of preferred stock (in shares) | 250,000 | |||||||||||||||||||||
Other comprehensive loss, net | (10,077) | (10,077) | ||||||||||||||||||||
Issuance of restricted stock (in shares) | 74,401 | |||||||||||||||||||||
Issuance of restricted stock | 0 | $ 74 | (74) | |||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (9,274) | |||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (633) | $ (9) | (624) | |||||||||||||||||||
Purchase of Company stock | (1,250) | $ (19) | (1,231) | |||||||||||||||||||
Purchase of Company stock (in shares) | (18,936) | |||||||||||||||||||||
Stock based compensation | 1,056 | 1,056 | ||||||||||||||||||||
Net change fair value of ESOP shares | 4,626 | 4,626 | ||||||||||||||||||||
Dividends paid | (4,774) | (4,774) | ||||||||||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2022 | 250,000 | |||||||||||||||||||||
Shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 11,627,071 | |||||||||||||||||||||
Shareholders' equity, ending balance at Jun. 30, 2022 | $ 587,455 | $ 250,000 | $ 11,627 | $ 0 | 122,132 | 331,239 | (29,744) | (97,799) | ||||||||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 250,000 | 250,000 | 0 | 250,000 | ||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2022 | 11,599,595 | 0 | 11,599,595 | |||||||||||||||||||
Shareholders' equity, beginning balance at Dec. 31, 2022 | $ 601,116 | $ (24,953) | $ 576,163 | $ 250,000 | $ 0 | $ 250,000 | $ 11,599 | $ 0 | $ 11,599 | 122,890 | $ 0 | $ 122,890 | 356,685 | $ (24,953) | $ 331,732 | (43,074) | $ 0 | $ (43,074) | (96,984) | $ 0 | $ (96,984) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 30,271 | 30,271 | ||||||||||||||||||||
Other comprehensive loss, net | (565) | (565) | ||||||||||||||||||||
Issuance of restricted stock (in shares) | 90,023 | |||||||||||||||||||||
Issuance of restricted stock | 0 | $ 90 | (90) | |||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (15,287) | |||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (1,020) | $ (15) | (1,005) | |||||||||||||||||||
Purchase of Company stock | (2,860) | $ (48) | (2,812) | |||||||||||||||||||
Purchase of Company stock (in shares) | (47,661) | |||||||||||||||||||||
Stock based compensation | 2,285 | 2,285 | ||||||||||||||||||||
Net change fair value of ESOP shares | 7,628 | 7,628 | ||||||||||||||||||||
Dividends paid | $ (10,451) | (10,451) | ||||||||||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | 250,000 | 250,000 | ||||||||||||||||||||
Shares outstanding, ending balance (in shares) at Jun. 30, 2023 | 11,626,670 | |||||||||||||||||||||
Shareholders' equity, ending balance at Jun. 30, 2023 | $ 601,451 | $ 250,000 | $ 11,626 | 121,268 | 351,552 | (43,639) | (89,356) | |||||||||||||||
Preferred stock, beginning balance (in shares) at Mar. 31, 2023 | 250,000 | |||||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Mar. 31, 2023 | 11,599,354 | |||||||||||||||||||||
Shareholders' equity, beginning balance at Mar. 31, 2023 | 594,296 | $ 250,000 | $ 11,599 | 123,878 | 343,591 | (37,788) | (96,984) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 13,192 | 13,192 | ||||||||||||||||||||
Other comprehensive loss, net | (5,851) | (5,851) | ||||||||||||||||||||
Issuance of restricted stock (in shares) | 90,023 | |||||||||||||||||||||
Issuance of restricted stock | 0 | $ 90 | (90) | |||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (15,046) | |||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (1,004) | $ (15) | (989) | |||||||||||||||||||
Purchase of Company stock | (2,860) | $ (48) | (2,812) | |||||||||||||||||||
Purchase of Company stock (in shares) | (47,661) | |||||||||||||||||||||
Stock based compensation | 1,281 | 1,281 | ||||||||||||||||||||
Net change fair value of ESOP shares | 7,628 | 7,628 | ||||||||||||||||||||
Dividends paid | $ (5,231) | (5,231) | ||||||||||||||||||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | 250,000 | 250,000 | ||||||||||||||||||||
Shares outstanding, ending balance (in shares) at Jun. 30, 2023 | 11,626,670 | |||||||||||||||||||||
Shareholders' equity, ending balance at Jun. 30, 2023 | $ 601,451 | $ 250,000 | $ 11,626 | $ 121,268 | $ 351,552 | $ (43,639) | $ (89,356) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in USD per share) | $ 0.45 | $ 0.41 | $ 0.90 | $ 0.82 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income per consolidated statements of income | $ 30,271 | $ 25,804 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for credit losses | 1,439 | 451 |
Depreciation and amortization | 5,008 | 5,051 |
Net loss on disposal of premises and equipment | 325 | 44 |
Net gain on sales of other real estate owned | 0 | 124 |
Write-downs of other real estate-owned | 277 | 555 |
Deferred income tax benefit | 1,137 | 1,489 |
Federal Home Loan Bank stock dividends | (488) | (8) |
Common stock released by ESOP | 0 | 1,401 |
Stock based compensation expense | 2,285 | 1,736 |
Origination of loans held for sale | (141,964) | (166,236) |
Proceeds from loans held for sale | 134,161 | 168,300 |
Earnings on bank-owned life insurance | (1,326) | (1,265) |
Net change in: | ||
Accrued interest receivable and other assets | (8,282) | (3,664) |
Accrued interest payable and other liabilities | 892 | (3,644) |
Net cash from operating activities | 23,735 | 30,138 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (204,419) | (99,369) |
Maturities and calls of securities available for sale | 21,845 | 41,477 |
Purchases of securities held to maturity | 0 | 0 |
Maturities, prepayments and calls of securities held to maturity | 4,115 | 5,233 |
Net increase in loans | (265,708) | (543,140) |
Purchases of premises and equipment | (12,861) | (9,517) |
Proceeds from sales of premises and equipment | 8 | 0 |
Proceeds from sales of other real estate owned | 976 | 1,374 |
Investment in unconsolidated entities | (77) | (30) |
Distributions from unconsolidated entities | 483 | 1,753 |
Purchases of Federal Home Loan Bank stock | (14,776) | (1,044) |
Redemptions of Federal Home Loan Bank stock | 8,943 | 0 |
Cash received in excess of cash paid for acquisition | 0 | 165,974 |
Net cash used in investing activities | (461,471) | (437,289) |
Net increase (decrease) in: | ||
Noninterest-bearing deposits | (125,689) | 67,790 |
Money market, negotiable order of withdrawal, and savings deposits | 122,379 | (129,848) |
Certificates of deposit | 286,715 | (89,920) |
Proceeds from Federal Home Loan Bank advances | 5,320,000 | 0 |
Payments on Federal Home Loan Bank advances | (5,098,019) | (386) |
Proceeds from issuance of preferred stock | 0 | 250,000 |
Proceeds from other borrowings | 0 | 20,000 |
Payments on other borrowings | 0 | (20,000) |
Payment of debt issuance costs on other borrowings | 0 | (25) |
Cash dividends paid on common stock | (10,451) | (8,922) |
Purchase of Company stock | (2,860) | (1,250) |
Shares withheld to pay taxes on restricted stock vesting | (1,020) | (712) |
Net cash from financing activities | 491,055 | 86,727 |
Net change in cash and cash equivalents | 53,319 | (320,424) |
Cash and cash equivalents at beginning of period | 137,895 | 664,165 |
Cash and cash equivalents at end of period | 191,214 | 343,741 |
Supplemental cash flow information: | ||
Interest paid | 51,148 | 7,374 |
Federal and state income tax payments | 10,300 | 3,575 |
Acquisition of real estate in non-cash foreclosures | 743 | 890 |
Fair value of assets acquired net of liabilities assumed | $ 0 | $ 58,508 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation BancPlus Corporation (the “Company”) is a bank holding company headquartered in Ridgeland, Mississippi operating in one reportable segment. BankPlus (the “Bank”), the principal operating subsidiary and sole banking subsidiary of the Company, is a commercial bank primarily engaged in the business of commercial and consumer banking. In addition to general and consumer banking, other products and services offered though the Bank’s subsidiaries include certain insurance and annuity services, asset and investment management and financial planning services. Oakhurst Development, Inc. (“Oakhurst”) is a real estate subsidiary originally formed by the Company to liquidate a real estate development that was acquired by the Bank through foreclosure in 2002. Oakhurst became active again in March 2009 and holds loans and other real estate. The unaudited interim consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2022; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The allowance/provision for credit losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for credit losses, provision for credit losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. Unless otherwise indicated, references to “BancPlus” refer to BancPlus Corporation and its subsidiaries, on a consolidated basis, and reference to “BankPlus” refer to BankPlus, our wholly-owned subsidiary, as applicable. Effect of Recently Adopted Accounting Standards ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the previous loss estimation techniques are still permitted, although the inputs to those techniques have changed to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 is effective for the Company for annual and interim periods beginning on January 1, 2023. The measurement of expected credit losses under the current expected credit loss (“CECL”) methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures. In addition, ASU 2016-13 made changes to the accounting for available-for-sale debt securities, which includes required presentation of credit losses to be presented as an allowance rather than as a write-down when management does not intend to sell the securities. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with the then applicable GAAP. As of January 1, 2023 the Company recognized a one-time, after-tax cumulative effect adjustment of approximately $25.0 million to retained earnings, increasing the allowance for credit losses on loans held for investment by approximately $20.7 million and establishing an allowance for credit losses on off-balance sheet credit exposures of approximately $12.5 million due to the adoption of ASU 2016-13. The Company adopted ASU 2016-13 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchase credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management is not required to reassess whether PCI assets meet the criteria for PCD assets as of the date of adoption. The following table illustrates the impact of ASU 2016-13: January 1, 2023 (In thousands) As Reported Under ASU 2016-13 Pre-ASU 2016-13 Adoption Impact of ASU 2016-13 Adoption Assets: Allowance for credit losses on debt securities held-to-maturity $ — $ — $ — Allowance for credit losses on loans: Commercial real estate 39,471 26,701 12,770 Residential 16,422 9,958 6,464 Commercial and industrial 6,916 4,750 2,166 Consumer and other 810 1,466 (656) Total allowance for credit losses on loans 63,619 42,875 20,744 Liabilities: Allowance for credit losses on off-balance sheet exposures 12,505 — 12,505 Total allowance for credit losses $ 76,124 $ 42,875 $ 33,249 Allowance for Credit Losses – Available-for-sale debt securities For available-for-sale debt securities with fair value below amortized cost, when the Company does not intend to sell the debt security, and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, then the Company recognizes the credit component of a decline in fair value of a debt security in income and the remaining portion in other comprehensive income (loss). Decline in fair value related to a credit loss is measured using the discounted cash flow method. Credit loss recognition is limited to the amount that the fair value of the security is less than the amortized cost. The decline in fair value is recognized by establishing an allowance for credit loss (“ACL”) through provision for credit losses. Decline in fair value related to noncredit factors is recognized in accumulated other comprehensive income, net of applicable taxes. The Company has elected to exclude accrued interest from the estimate of credit losses for available-for-sale debt securities. The Company evaluates available-for-sale security declines in fair value on a quarterly basis. Allowance for Credit Losses – Held-to-maturity debt securities For held-to-maturity debt securities, expected losses are evaluated and calculated on a collective basis for those securities that share risk characteristics. The Company aggregates record level securities calculations and reports the security portfolio segments based on shared risk characteristics. The only segment included in the held to maturity portfolio is states and political subdivisions, which is comprised of municipals. The Company performs a quarterly loss reserve calculation for municipal and corporate bonds leveraging history of defaults and recoveries as well as a baseline economic forecast. A probability of default/loss-given default approach is used, with any non-rated bonds receiving a comparable rating estimate. Losses in high grade municipals, in which the Company tends to invest, have historically been very limited. The Company has elected to exclude accrued interest from the estimate of credit losses for held-to-maturity debt securities. Allowance for Credit Losses – Loans The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Management's determination of the adequacy of the ACL is based on an assessment of the expected credit losses on loans over the expected life of the loan. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. Loans are charged off when management believes that the collection of the principal amount owed in full is unlikely. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Any interest that is accrued but not collected is reversed against interest income when a loan is placed on nonaccrual status, which typically occurs prior to charging off all, or a portion, of a loan. The Company made the policy election to exclude accrued interest receivable on loans from the estimate of credit losses. The Company calculates estimated credit loss on its portfolio primarily using quantitative methodologies using relevant available information from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The ACL is evaluated and calculated on a collective basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether the loans in a pool continue to exhibit similar risk characteristics as the other loans and whether it needs to evaluate the allowance on an individual basis. The Company has chosen to segment its portfolio consistent with the manner in which it manages the risk of the type of credit. The Company’s segments for loans include commercial real estate, commercial and industrial, residential and consumer. Expected credit losses are estimated over the contractual term of each loan taking into consideration expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative method or the economic assumptions described above. For example, factors that the Company considers include the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans and current business conditions. In addition to the ACL on loans held for investment, CECL requires a balance sheet liability for unfunded commitments, which is recognized if both of the following conditions are met: (1) the Company has a present contractual obligation to extend credit; and (2) the obligation is not unconditionally cancellable by the Company. Loan commitments may have a funded and unfunded portion, of which the liability for unfunded commitments is derived based upon the commitments to extend credit to a borrower (e.g., an estimate of expected credit losses is not established for unfunded portions of loan commitment that are unconditionally cancellable by the Company). The expected credit losses for funded portions are reported in the previously discussed ACL. The Company segments its unfunded commitment portfolio consistent with the ACL calculation. The Company incorporates the probability of funding (i.e., estimate of utilization) for each segment and then utilizes the ACL loss rates for each segment on an aggregate basis to calculate the allowance for unfunded commitments. Accounting Standards Update 2022-02 (“ASU 2022-02”), “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” In March 2022, the FASB issued ASU 2022-02 which eliminates the TDR recognition and measurement guidance and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. ASU 2022-02 also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for the Company for annual and interim periods beginning on January 1, 2023. The adoption of ASU 2022-02 in the first quarter of 2023 did not materially impact the Company’s consolidated financial statements. Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04 which provides temporary optional expedients and exceptions to the Generally Accepted Accounting Principles (“GAAP”) guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The Company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements. Accounting Standards Update 2022-06 (“ASU 2022-06”), “Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848.” In December 2022, the FASB issued ASU 2022-06 which provides temporary relief during the transition period in complying with ASU 2020-04. The Board included a sunset provision within Topic 848 based on expectations of when LIBOR would cease being published. At the time that ASU 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022 - 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which was beyond the current sunset date of Topic 848. Effect of Recently Issued, But Not Yet Effective Accounting Standards Accounting Standards Update 2023-02 (“ASU 2023-02”), “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” In March 2023, the FASB issued ASU 2023-02 which allows entities to elect to account for tax equity investments using the proportional amortization method, regardless of the tax credit program from which the income tax credits are received, if certain conditions are met. ASU 2023-02 is effective for the Company for annual and interim periods beginning on January 1, 2024. The Company does not expect it to have a material impact on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted number of common shares outstanding during the period and the number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. Three Months Ended June 30, Six Months Ended June 30, (In thousands except per share data) 2023 2022 2023 2022 Net income $ 13,192 $ 16,115 $ 30,271 $ 25,804 Weighted average common shares outstanding 11,424 11,460 11,419 10,959 Diluted effect of unallocated stock — — — 9 Diluted effect of stock-based awards 13 58 37 66 Diluted common shares 11,437 11,518 11,456 11,034 Basic earnings per common share $ 1.15 $ 1.41 $ 2.65 $ 2.35 Diluted earnings per common share $ 1.15 $ 1.40 $ 2.64 $ 2.34 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations First Trust Corporation Effective March 1, 2022, the Company completed its previously announced merger with First Trust Corporation (“FTC”), the holding company of First Bank and Trust (“FBT”). Pursuant to the terms of the Agreement and Plan of Share Exchange and Merger, dated September 28, 2021, as amended on February 9, 2022, by and among the Company, BankPlus, FTC, and FBT (the “FTC Merger Agreement”), following the Company’s acquisition of FTC by statutory share exchange, FTC was merged with and into BancPlus, with BancPlus surviving the merger (the “FTC Holding Company Merger”). Immediately thereafter FBT was merged with and into BankPlus, with BankPlus surviving the merger (together with the FTC Holding Company Merger, the “FTC Merger”). The FTC Merger expands the Company’s geographic footprint into Florida and adds additional locations in Louisiana and Mississippi, providing access to new markets and deposits. Pursuant to the FTC Merger Agreement, holders of FTC stock received, in the aggregate, 1,444,764 shares of BancPlus common stock, with cash paid in lieu of fractional shares, and $52.7 million in cash, plus up to $10.0 million, less certain fees, costs, and expenses, that was held in escrow pursuant to the terms of a previously disclosed Indemnity and Escrow Agreement that was entered into immediately prior to the completion of the FTC Merger pending a final determination from the Internal Revenue Service as to whether FTC’s subchapter S election would be reinstated retroactively to September 23, 2020. On June 27, 2022, the Company received notice from the IRS that FTC’s subchapter S election had been reinstated. On July 7, 2022, the escrow account balance of $10.0 million, net of expenses, was paid to the former holders of FTC stock. The fair value of the common shares issued was determined based on a third-party appraisal at the date of the acquisition, as there is no active market for the Company’s stock. During the three and six months ended June 30, 2022, the Company incurred approximately $1.3 million and $5.5 million of acquisition expenses in connection with the FTC Merger, respectively. These expenses are recorded in other expenses in the Company’s Consolidated Statement of Income for the three and six months ended June 30, 2022. The excess cost paid over the fair value of net assets acquired was recorded as goodwill during 2022. Goodwill, which reflects an enhanced presence in the Louisiana and Southern Mississippi market areas and expansion into the Florida panhandle market as well as synergies expected as a result of the combined operations, is not deductible for tax purposes. The following table reflects the consideration paid and the fair value allocation of assets acquired and liabilities assumed as of the acquisition date: (In thousands) Purchase price allocation: Common stock issued $ 56,489 Cash paid 63,239 Total purchase price $ 119,728 Assets acquired: Cash and due from banks $ 229,213 Securities 33,407 Loans held for sale 6,200 Loans, net 1,000,382 Premises and equipment 15,152 Accrued interest receivable 1,441 Core deposit intangible 7,825 Other assets 4,584 Total assets acquired $ 1,298,204 Liabilities assumed: Deposits $ 1,212,712 Subordinated debentures 21,733 Other liabilities 4,187 Total liabilities assumed $ 1,238,632 Net assets acquired 59,572 Goodwill $ 60,156 In connection with the FTC Merger, the Company recorded a $7.8 million core deposit intangible, which will be amortized over 10 years. The Company also acquired loans with a fair value of $1.0 billion. The fair value of acquired loans at the time of acquisition is recorded as a premium or discount to the unpaid balance of each acquired loan. The net premium or discount is accreted or amortized into interest income over the remaining life of the loan. The Company recorded a net discount of $6.6 million on the acquired FTC loans, which included a credit mark discount of $15.7 million. Purchase credit deteriorated loans were insignificant. In the third quarter of 2022, the Company increased the fair value of other real estate and deferred tax assets resulting in a corresponding decrease to goodwill of $1.1 million. Revenues and earnings of the acquired company since the FTC Merger date have not been disclosed as it is not practicable as FTC was merged into BancPlus and separate financial information for FTC is not available. The following table presents unaudited pro forma information as if the FTC Merger had occurred on January 1, 2022. This pro forma information combines the historic consolidated results of operations of BancPlus and FTC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the FTC Merger occurred on January 1, 2022. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2022 2022 Net interest income $ 49,180 $ 103,053 Other operating income 17,510 38,052 Net income available to common shareholders 14,385 28,309 Earnings per common share: Basic $ 1.26 $ 2.48 Diluted 1.25 2.46 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following is a summary of the amortized cost and fair value of securities available for sale. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value June 30, 2023: U.S. Treasuries $ 197,136 $ 45 $ 817 $ 196,364 U.S. Government agency obligations 444,078 135 32,826 411,387 Residential mortgage-backed securities 99,015 6 11,502 87,519 Commercial mortgage-backed securities 13,744 — 1,762 11,982 Asset-backed securities 7,533 91 63 7,561 Corporate investments 52,959 — 9,124 43,835 State and political subdivisions 49,753 78 2,369 47,462 Total available for sale $ 864,218 $ 355 $ 58,463 $ 806,110 December 31, 2022: U.S. Treasuries $ 35,814 $ — $ 1,235 $ 34,579 U.S. Government agency obligations 414,251 246 35,761 378,736 Residential mortgage-backed securities 105,580 13 11,461 94,132 Commercial mortgage-backed securities 13,812 — 1,742 12,070 Asset backed securities 10,289 54 123 10,220 Corporate investments 51,000 — 4,967 46,033 State and political subdivisions 50,530 77 2,457 48,150 Total available for sale $ 681,276 $ 390 $ 57,746 $ 623,920 Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. All mortgage-backed securities in the above tables were issued or guaranteed by U.S. government agencies or sponsored agencies. At June 30, 2023, the Company had no allowance for credit losses on available for sale securities. The following is a summary of the amortized cost and fair value of securities held to maturity. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value June 30, 2023: States and political subdivisions $ 58,118 $ — $ 223 $ 57,895 Total held to maturity $ 58,118 $ — $ 223 $ 57,895 December 31, 2022: States and political subdivisions $ 62,274 $ — $ 206 $ 62,068 Total held to maturity $ 62,274 $ — $ 206 $ 62,068 At June 30, 2023, the Company had no allowance for credit losses on held to maturity securities. Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position. Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) June 30, 2023: Available for sale: U.S. Treasuries $ 41,605 $ 37 $ 30,174 $ 780 $ 71,779 $ 817 U.S. Government agencies 46,851 895 342,529 31,931 389,380 32,826 Residential mortgage-backed securities 6,051 205 80,823 11,297 86,874 11,502 Commercial mortgage-backed securities — — 11,982 1,762 11,982 1,762 Asset backed securities 1,371 2 1,605 61 2,976 63 Corporate investments 11,507 1,451 32,328 7,673 43,835 9,124 States and political subdivisions 21,851 541 20,575 1,828 42,426 2,369 $ 129,236 $ 3,131 $ 520,016 $ 55,332 $ 649,252 $ 58,463 Held to maturity: States and political subdivisions $ 3,795 $ 87 $ 3,750 $ 136 $ 7,545 $ 223 $ 3,795 $ 87 $ 3,750 $ 136 $ 7,545 $ 223 December 31, 2022: Available for sale: U.S. Treasuries $ 34,579 $ 1,235 $ — $ — $ 34,579 $ 1,235 U.S. Government agencies 78,676 4,830 285,994 30,931 364,670 35,761 Residential mortgage-backed securities 81,992 8,935 11,258 2,526 93,250 11,461 Commercial mortgage-backed securities 4,860 594 7,210 1,148 12,070 1,742 Asset backed securities 1,169 7 3,499 116 4,668 123 Corporate investments 36,958 4,042 7,076 925 44,034 4,967 States and political subdivisions 36,655 1,781 5,084 676 41,739 2,457 $ 274,889 $ 21,424 $ 320,121 $ 36,322 $ 595,010 $ 57,746 Held to maturity: States and political subdivisions $ 9,259 $ 206 $ — $ — $ 9,259 $ 206 $ 9,259 $ 206 $ — $ — $ 9,259 $ 206 The number of debt securities in an unrealized loss position decreased from 359 at December 31, 2022 to 338 at June 30, 2023. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be impaired on an other-than-temporary basis at June 30, 2023. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value June 30, 2023: One year or less $ 264,104 $ 261,766 $ 5,997 $ 5,978 After one through five years 370,859 343,157 44,173 44,011 After five through ten years 121,534 105,047 6,308 6,266 After ten years 107,721 96,140 1,640 1,640 $ 864,218 $ 806,110 $ 58,118 $ 57,895 The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value June 30, 2023 $ 153,527 $ 144,737 $ 475 $ 469 December 31, 2022 $ 492,206 $ 451,638 $ 35,734 $ 35,562 The Company monitors the credit quality of held-to-maturity debt securities through the use of credit ratings. The Company monitors the credit rating on a quarterly basis. The following table summarizes the amortized cost basis of held-to-maturity debt securities at June 30, 2023 by credit rating: (In thousands) June 30, 2023 State and political subdivisions held-to-maturity: S&P: AA+, AA, AA- / Moody's: Aa1, Aa2, Aa3 $ 5,206 S&P: A+, A, A- / Moody's: A1, A2, A3 961 S&P: BBB+, BBB, BBB- / Moody's: Baa, Ba, B 496 Not rated 51,455 $ 58,118 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of the Company’s loan portfolio by loan class. (In thousands) June 30, 2023 December 31, 2022 Secured by real estate: Residential properties $ 1,494,751 $ 1,403,974 Construction and land development 813,512 772,357 Farmland 301,778 283,832 Other commercial 2,587,757 2,467,216 Total real estate 5,197,798 4,927,379 Commercial and industrial loans 699,305 706,466 Agricultural production and other loans to farmers 92,885 80,770 Consumer and other loans 98,826 109,534 Total loans before allowance for credit losses $ 6,088,814 $ 5,824,149 Loans are stated at the amount of unpaid principal net of discounts and premiums on acquired loans, before allowance for credit losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration – The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, Alabama, and Florida. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans – The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans – Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans – The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer and Other Loans – The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When a loan is placed on non-accrual status, any interest that is accrued, but not collected, is reversed against interest income. Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured. The following table presents the amortized cost basis of nonaccrual loans, segregated by class as of June 30, 2023. (In thousands) Total Nonaccrual Nonaccrual with no Allowance for Credit Loss Past Due 90 days or more and Accruing Secured by real estate: Residential properties $ 2,287 $ — $ 1,170 Construction and land development — — — Farmland 670 — 59 Other commercial 1,725 — 1,640 Total real estate 4,682 — 2,869 Commercial and industrial loans 92 — 187 Agricultural production and other loans to farmers — — — Consumer and other loans — — 44 Total $ 4,774 $ — $ 3,100 A loan 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. During the six months ended June 30, 2023, there were no significant changes to the collateral which secures the collateral-dependent loans, whether due to general deterioration or other reason. The following table presents the amortized cost basis of collateral-dependent loans by class and collateral type as of June 30, 2023. (In thousands) Real Estate Enterprise Value Accounts Receivable & Inventory Secured by real estate: Residential properties $ — $ — $ — Construction and land development — — — Farmland — — — Other commercial 2,913 1,527 — Total real estate 2,913 1,527 — Commercial and industrial loans — — 9,015 Agricultural production and other loans to farmers — — — Consumer loans — — — Total $ 2,913 $ 1,527 $ 9,015 An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows: (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans June 30, 2023 Secured by real estate: Residential properties $ 6,108 $ 2,086 $ 8,194 $ 1,486,557 $ 1,494,751 Construction and land development 526 — 526 812,986 813,512 Farmland 569 738 1,307 300,471 301,778 Other commercial 1,387 1,989 3,376 2,584,381 2,587,757 Total real estate 8,590 4,813 13,403 5,184,395 5,197,798 Commercial and industrial loans 2,815 234 3,049 696,256 699,305 Agricultural production and other loans to farmers 12 — 12 92,873 92,885 Consumer loans 324 44 368 98,458 98,826 Total $ 11,741 $ 5,091 $ 16,832 $ 6,071,982 $ 6,088,814 (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans December 31, 2022 Secured by real estate: Residential properties $ 5,869 $ 2,015 $ 7,884 $ 1,396,090 $ 1,403,974 Construction and land development 526 1,578 2,104 770,253 772,357 Farmland 566 1,391 1,957 281,875 283,832 Other commercial 1,498 774 2,272 2,464,944 2,467,216 Total real estate 8,459 5,758 14,217 4,913,162 4,927,379 Commercial and industrial loans 902 677 1,579 704,887 706,466 Agricultural production and other loans to farmers 126 — 126 80,644 80,770 Consumer loans 1,530 697 2,227 107,307 109,534 Total $ 11,017 $ 7,132 $ 18,149 $ 5,806,000 $ 5,824,149 Modifications to Borrowers Experiencing Financial Difficulty – From time to time, the Company may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, interest rate reduction, term extension, other-than-significant payment delay or a combination thereof, among other things. During both of the six months ended June 30, 2023 and 2022, there were no modifications of loans to borrowers experiencing financial difficulty. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13, which replaces the incurred loss methodology with an expected loss methodology that is referred to as CECL. See Note 1, Basis of Presentation. As a result of implementing CECL, there was a one-time adjustment to the 2023 opening allowance balance of approximately $20.7 million. As management evaluates the allowance for credit losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not individually evaluated or deemed collateral-dependent or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows: • Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. • Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. • Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. • Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. • Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Pass loans for the Company include loans in Risk Grades 1 - 6. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered individually evaluated or collateral-dependent, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for individual evaluation or (ii) the loan was individually evaluated, but not deemed to be collateral-dependent. The following table reflects loans by credit quality indicator and origination year at June 30, 2023. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: Pass $ 160,548 $ 445,706 $ 329,396 $ 137,374 $ 55,555 $ 94,057 $ 258,322 $ 1,480,958 Special mention — — — — — — — — Classified 80 1,042 2,078 2,465 1,545 5,230 1,353 13,793 Total residential real estate $ 160,628 $ 446,748 $ 331,474 $ 139,839 $ 57,100 $ 99,287 $ 259,675 $ 1,494,751 Current period gross write offs $ — $ — $ 1 $ 32 $ — $ 143 $ 2 $ 178 Construction & land development: Pass $ 25,622 $ 65,499 $ 15,339 $ 4,629 $ 7,052 $ 8,051 $ 684,876 $ 811,068 Special mention — 42 — — — — — 42 Classified — 87 9 1,003 1,259 12 32 2,402 Total construction & land development $ 25,622 $ 65,628 $ 15,348 $ 5,632 $ 8,311 $ 8,063 $ 684,908 $ 813,512 Current period gross write offs $ — $ — $ — $ — $ — $ 7 $ — $ 7 Farmland: Pass $ 21,223 $ 87,058 $ 33,149 $ 29,396 $ 15,514 $ 26,373 $ 86,455 $ 299,168 Special mention — — — — — — — — Classified 22 153 589 118 65 1,411 252 2,610 Total farmland $ 21,245 $ 87,211 $ 33,738 $ 29,514 $ 15,579 $ 27,784 $ 86,707 $ 301,778 Current period gross write offs $ — $ 3 $ 2 $ — $ — $ 109 $ — $ 114 Other commercial real estate: Pass $ 126,216 $ 517,955 $ 411,413 $ 256,570 $ 123,526 $ 229,514 $ 910,237 $ 2,575,431 Special mention — — — — — — — — Classified 107 1,706 2,706 557 2,557 3,485 1,208 12,326 Total other commercial real estate $ 126,323 $ 519,661 $ 414,119 $ 257,127 $ 126,083 $ 232,999 $ 911,445 $ 2,587,757 Current period gross write offs $ — $ — $ 56 $ — $ — $ — $ — $ 56 Commercial & industrial loans: Pass $ 63,301 $ 172,135 $ 100,616 $ 45,688 $ 30,482 $ 11,796 $ 262,844 $ 686,862 Special mention — — — — — — — — Classified 49 711 95 479 139 10,569 401 12,443 Total commercial & industrial loans $ 63,350 $ 172,846 $ 100,711 $ 46,167 $ 30,621 $ 22,365 $ 263,245 $ 699,305 Current period gross write offs $ — $ 62 $ 52 $ 2 $ 16 $ 7 $ 178 $ 317 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Agricultural production & other loans to farmers: Pass $ 9,352 $ 10,338 $ 5,088 $ 4,140 $ 1,443 $ 739 $ 61,700 $ 92,800 Special mention — — — — — — — — Classified — 7 — 54 11 13 — 85 Total agricultural production & other loans to farmers $ 9,352 $ 10,345 $ 5,088 $ 4,194 $ 1,454 $ 752 $ 61,700 $ 92,885 Current period gross write offs $ — $ 5 $ — $ — $ — $ — $ 8 $ 13 Consumer & other loans: Pass $ 24,685 $ 24,416 $ 7,623 $ 5,517 $ 1,099 $ 493 $ 34,912 $ 98,745 Special mention — — — — — — — — Classified 3 12 15 1 — 11 39 81 Total consumer & other loans $ 24,688 $ 24,428 $ 7,638 $ 5,518 $ 1,099 $ 504 $ 34,951 $ 98,826 Current period gross write offs $ 1,388 $ 111 $ 32 $ 35 $ 11 $ 9 $ 14 $ 1,600 The following table summarizes the credit quality of the Company’s loan portfolio by loan class at December 31, 2022: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2022 Secured by real estate: Residential properties $ 1,391,039 $ — $ 12,852 $ 83 $ 1,403,974 Construction and land development 768,699 303 3,355 — 772,357 Farmland 280,522 — 3,310 — 283,832 Other commercial 2,456,708 — 10,384 124 2,467,216 Total real estate 4,896,968 303 29,901 207 4,927,379 Commercial and industrial 693,963 — 12,503 — 706,466 Agricultural production and other loans to farmers 80,524 — 246 — 80,770 Consumer and other loans 108,279 — 1,255 — 109,534 Total $ 5,779,734 $ 303 $ 43,905 $ 207 $ 5,824,149 The allowance for credit loss represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The lifetime estimate also considers economic conditions. During the second quarter of 2023, the U.S. economy continued to experience volatility and there remains uncertainty surrounding future economic conditions as a result of supply chain disruptions, labor shortages, and the conflict in Ukraine. Although management strives to maintain an allowance it deems adequate, future economic changes, deterioration of borrowers' creditworthiness, and the impact of examinations by regulatory agencies all could cause changes to BancPlus' allowance for credit losses. Transactions in the allowance for credit losses and balances in the loan portfolio by loan segment are as follows: (In thousands) Commercial Commercial Residential Consumer Total Three Months Ended June 30, 2023 Allowance for credit losses: Beginning balance $ 6,404 $ 40,494 $ 16,420 $ 1,085 $ 64,403 Provision for credit losses (80) (175) 937 104 786 Recoveries on loans 115 97 67 558 837 Loans charged off (29) (106) (5) (657) (797) Ending balance $ 6,410 $ 40,310 $ 17,419 $ 1,090 $ 65,229 Six Months Ended June 30, 2023 Allowance for loan losses: Beginning balance $ 4,750 $ 26,701 $ 9,958 $ 1,466 $ 42,875 Impact of adopting ASU 2016-13 2,166 12,770 6,464 (656) 20,744 Provision for credit losses (392) 804 1,050 744 2,206 Recoveries on loans 203 212 125 1,149 1,689 Loans charged off (317) (177) (178) (1,613) (2,285) Ending balance $ 6,410 $ 40,310 $ 17,419 $ 1,090 $ 65,229 Period End Allowance Balance Allocated To: Individually evaluated $ 227 $ — $ — $ — $ 227 Collectively evaluated 6,183 40,310 17,419 1,090 65,002 Ending balance $ 6,410 $ 40,310 $ 17,419 $ 1,090 $ 65,229 The allowance for credit losses increased for the six months ended June 30, 2023 primarily as a result of the adoption of ASU 2016-13. Accrued interest receivable on loans, reported as a component of accrued interest receivable on the balance sheet, totaled approximately $21.5 million at June 30, 2023 and is excluded from the estimate of credit losses. (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total Three Months Ended June 30, 2022 Allowance for loan losses: Beginning balance $ 6,052 $ 26,912 $ 9,603 $ 1,671 $ 44,238 Provision for loan losses (1,063) 635 146 516 234 Recoveries on loans 58 413 55 770 1,296 Loans charged off (921) (3) (530) (961) (2,415) Balance, end of year $ 4,126 $ 27,957 $ 9,274 $ 1,996 $ 43,353 Six Months Ended June 30, 2022 Allowance for loan losses: Beginning balance $ 6,556 $ 27,133 $ 9,488 $ 1,823 $ 45,000 Provision for loan losses (1,531) 710 457 815 451 Recoveries on loans 80 554 109 1,561 2,304 Loans charged off (979) (440) (780) (2,203) (4,402) Ending balance $ 4,126 $ 27,957 $ 9,274 $ 1,996 $ 43,353 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 132 $ — $ 7 $ — $ 139 Collectively evaluated for impairment 3,994 27,957 9,267 1,996 43,214 Ending balance $ 4,126 $ 27,957 $ 9,274 $ 1,996 $ 43,353 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Regulatory Matters The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. In 2019, the federal bank regulatory agencies finalized a rule that simplifies capital requirements for qualifying community banks by providing an option to use a simple leverage ratio to measure capital adequacy and to not calculate risk-based capital ratios. A qualifying community bank has less than $10 billion in total consolidated assets, limited amounts of off-balance-sheet exposures and trading assets and liabilities, and a leverage ratio greater than 9.0%. The community bank leverage ratio (“CBLR”) framework was effective on January 1, 2020, and the Company and the Bank elected to adopt the optional CBLR framework in the third quarter of 2022, as an alternative to the generally applicable capital rules. A final rule adopted by the federal banking agencies in February 2019 provides banking organizations with the option to phase in, over a three-year period, the adverse day-one regulatory capital effects of the adoption of CECL. The Company adopted CECL in the first quarter of 2023 and has elected to utilize the three-year transition period. The Bank is also subject to capital requirements under the prompt corrective action regime. The prompt corrective action framework applies only to insured depository institutions, such as the Bank, and not to their holding companies, such as the Company. As of June 30, 2023, the Bank maintained a leverage ratio of more than 9.0% and, as an institution has elected to adopt the CBLR framework, the Bank was therefore well capitalized under the regulatory framework for prompt corrective action. The following table presents actual and required capital ratios for the Company and the Bank under the CBLR and prompt corrective action regulations for the relevant periods. Actual Minimum Requirement to be Well Capitalized (In thousands) Capital Amount Ratio Capital Amount Ratio June 30, 2023: Company: Community Bank Leverage Ratio $ 733,707 10.00 % $ 660,411 9.00 % Bank: Community Bank Leverage Ratio $ 682,869 9.32 % $ 659,762 9.00 % Actual Minimum Requirement to be Well Capitalized (In thousands) Capital Amount Ratio Capital Amount Ratio December 31, 2022: Company: Community Bank Leverage Ratio $ 721,001 10.54 % $ 615,566 9.00 % Bank: Community Bank Leverage Ratio $ 636,007 9.31 % $ 614,973 9.00 % |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial Instruments Measured at Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities – The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of June 30, 2023 or December 31, 2022. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio. Individually Evaluated Loans with Credit Losses – Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists on a non-recurring basis. Allowable methods for determining the amount of the credit loss include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for these loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral-dependent. Loans that are primarily collateral dependent loans are assessed using a fair value approach. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Loans that have experienced a credit loss are classified within Level 3 of the fair value hierarchy. Other Real Estate Owned – Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral-dependent loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 June 30, 2023 U.S. Treasuries $ 196,364 $ — $ 196,364 $ — U.S. Government agency obligations 411,387 — 411,387 — Residential mortgage-backed securities 87,519 — 87,519 — Commercial mortgage-backed securities 11,982 — 11,982 — Asset-backed securities 7,561 — 7,561 — Corporate investments 43,835 — 43,835 — State and political subdivisions 47,462 — 47,462 — Total securities available for sale $ 806,110 $ — $ 806,110 $ — December 31, 2022 U.S. Treasuries $ 34,579 $ — $ 34,579 $ — U.S. Government agency obligations 378,736 — 378,736 — Residential mortgage-backed securities 94,132 — 94,132 — Commercial mortgage-backed securities 12,070 — 12,070 — Asset backed securities 10,220 — 10,220 — Corporate investments 46,033 — 46,033 — State and political subdivisions 48,150 — 48,150 — Total securities available for sale $ 623,920 $ — $ 623,920 $ — Assets measured at fair value on a non-recurring basis are summarized below. Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 Individually evaluated loans with credit losses, net of allowance for credit losses: June 30, 2023 $ 1,300 $ — $ — $ 1,300 Impaired loans, net of allowance for loan losses: December 31, 2022 $ 26,071 $ — $ — $ 26,071 Other real estate owned: June 30, 2023 $ 3,722 $ — $ — $ 3,722 December 31, 2022 $ 4,231 $ — $ — $ 4,231 The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis. Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range Weighted Average June 30, 2023 Individually evaluated loans with credit losses, net of specific allowance $ 1,300 Third-party appraisals Selling costs 5% - 10% 6% Other real estate owned $ 3,722 Third-party appraisals and internal evaluations Selling costs 5% - 10% 6% Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range Weighted Average December 31, 2022 Impaired loans, net of allowance for loan losses $ 26,071 Third-party appraisals Selling costs 5% - 10% 6% Other real estate owned $ 4,231 Third-party appraisals and internal evaluations Selling costs 5% - 10% 6% Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, that are not measured and reported at fair value on a recurring or non-recurring basis. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions significantly affect the estimates and, as such, the derived fair value may not be indicative of the value negotiated in an actual sale and may not be comparable to that reported by other financial institutions. In addition, the fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following table presents estimated fair values of the Company’s financial instruments not carried at fair value: June 30, 2023 December 31, 2022 (In thousands) Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 191,214 $ 191,214 $ 137,895 $ 137,895 Level 2 inputs: Securities held to maturity 58,118 57,895 62,274 62,068 FHLB stock 26,011 26,011 19,690 19,690 Accrued interest receivable 25,454 25,454 23,156 23,156 Level 3 inputs: Loans held for sale 13,176 13,176 5,373 5,373 Loans, net 6,023,585 5,789,083 5,781,274 5,601,070 Financial liabilities: Level 2 inputs: Deposits 6,108,309 6,091,601 5,824,904 5,289,138 FHLB and other borrowings 540,065 536,993 318,084 318,079 Subordinated debentures 133,579 138,214 133,478 138,780 Accrued interest payable 5,924 5,924 2,334 2,334 |
Subordinated Debentures and Tru
Subordinated Debentures and Trust Preferred Securities | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures and Trust Preferred Securities | Subordinated Debentures and Trust Preferred Securities Subordinated Debentures On June 4, 2020, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $60.0 million in aggregate principal amount of its 6.000% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030 (the “Notes”). The Company incurred issuance costs of $1.4 million in conjunction with the issuance of the Notes. These issuance costs are netted with the balance of the Notes on the Company’s Consolidated Balance Sheets and will be amortized over the life of the Notes. At June 30, 2023 and December 31, 2022, the remaining unamortized balance of these issuance costs was $999,000 and $1.1 million, respectively. The Notes initially bear interest at a rate of 6.000% per annum from and including June 4, 2020, to but excluding June 15, 2025 or the early redemption date, with interest during this period payable semiannually in arrears. From and including June 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate (“SOFR”) plus 586 basis points, with interest during this period payable quarterly in arrears. The Company used the proceeds of the private placement for general corporate purposes, including improving the Company’s liquidity and capital position. The Notes are not redeemable by the Company, in whole or in part, prior to the fifth anniversary of the original date of issue, except that the Notes may be redeemed at any time in whole but not in part in the event of a Tier 2 Capital Event, a Tax Event, or an Investment Company Event, each as defined and described in the Notes. On or after the fifth anniversary of the original date of issue, the Notes are redeemable on any interest payment date at the option of the Company, in whole or in part in integral multiples of $1,000, at an amount equal to 100% of the outstanding principal amount redeemed plus accrued but unpaid interest thereon. Any partial redemption will be made on a pro rata basis as to the holders of the Notes. Any redemption of the Notes is subject to any applicable regulatory requirements and approvals. Effective March 1, 2022, in conjunction with the FTC Merger, the Company assumed FTC’s obligations under its Subordinated Note Purchase Agreement, dated as of December 23, 2020, and the several purchasers of the $21.0 million aggregate principal amount of 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 issued thereunder (the “FTC Subordinated Notes”). The FTC Subordinated Notes will mature on December 30, 2030 and bear interest at an initial fixed rate of 5.50% per annum, payable semi-annually in arrears. From and including December 30, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to a Three-Month Term SOFR plus 527 basis points, payable quarterly in arrears. BancPlus will be entitled to redeem the FTC Subordinated Notes, in whole or in part, on any interest payment date on or after December 30, 2025, and to redeem the FTC Subordinated Notes in whole upon certain other events. The FTC Subordinated Notes are not subject to redemption at the option of the holder. The FTC Subordinated Notes are unsecured, subordinated obligations of BancPlus only and are not obligations of, and are not guaranteed by, any subsidiary of BancPlus. The FTC Subordinated Notes rank junior in right to payment to BancPlus’ current and future senior indebtedness. The FTC Subordinated Notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. The FTC Subordinated Notes vary from the amount carried on the Consolidated Balance Sheets at June 30, 2023 due to the remaining purchase premium of $536,000, which was established upon closing of the FTC Merger and is being amortized over the remaining life of the debentures. Trust Preferred Securities The Company also owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. Under a grandfathering provision in the Basel III capital rules that applies to bank holding companies with less than $15 billion in total consolidated assets, these preferred capital securities have qualified as Tier 1 capital for the Company, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and the preferred capital securities to purchase subordinated debentures issued by the Company. These subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. The Company has fully and unconditionally guaranteed the trusts’ obligations with respect to the preferred capital securities. The Company has the right to defer the payment of interest on the subordinated debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred. Interest on the subordinated debentures and distributions on the trust preferred securities are cumulative. The following is a summary of subordinated debentures payable to statutory trusts. (In thousands) Year of Interest June 30, December 31, First Bancshares of Baton Rouge Statutory Trust I 2034 3 month CME Term SOFR, plus 2.50% $ 4,124 $ 4,124 State Capital Statutory Trust IV 2035 3 month CME Term SOFR, plus 1.99% 5,155 5,155 BancPlus Statutory Trust II 2036 3 month CME Term SOFR, plus 1.50% 20,619 20,619 BancPlus Statutory Trust III 2037 3 month CME Term SOFR, plus 1.35% 20,619 20,619 State Capital Master Trust 2037 3 month CME Term SOFR, plus 1.46% 6,186 6,186 $ 56,703 $ 56,703 The subordinated debentures payable to statutory trusts vary from the amount carried on the Consolidated Balance Sheets at June 30, 2023 due to the remaining purchase discount of $3.6 million, which was established upon the merger with State Capital Corp. (“SCC”), in which BancPlus acquired SCC, the holding company of State Bank & Trust Company (“State Bank”) by a statutory share exchange and SCC was merged with and into BancPlus and State Bank was merged with and into BankPlus, with BancPlus and BankPlus surviving the mergers, which closed on April 1, 2020, and is being amortized over the remaining life of the debentures. Interest rates adjust quarterly for the subordinated debentures with rates that were nominally indexed with LIBOR. Following the LIBOR cessation date of June 30, 2023, the interest rate on the subordinated notes was replaced with SOFR pursuant to the Adjustable Interest Rate (LIBOR) Act. The Company has the right to redeem the subordinated debentures prior to maturity. Upon redemption of the subordinated debentures payable to a statutory trust, the trust will also liquidate its common stock and preferred capital securities. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has an Employee Stock Ownership Plan (“ESOP”) that covers all employees of the Bank who are at least 21 years of age and work in a position requiring at least one thousand hours of service annually. The plan also has 401(k) provisions that allow for employee tax deferred contributions. Participants may make contributions to the ESOP in accordance with applicable regulations and the ESOP’s provisions. The Company makes a “safe harbor” matching contribution on the first 3% of an employee’s salary deferral contributions, plus an additional matching contribution equal to 50% of the next 2% of an employee’s salary deferral contributions in excess of 3%. Additional contributions are made to the ESOP at the discretion of the Company’s Board of Directors. The ESOP owned 1,452,950 shares of the Company's common stock at both June 30, 2023 and December 31, 2022. The ESOP can enter into loans, collateralized by ESOP shares, with the Company in connection with the repurchase of shares of Company stock sold by participants in accordance with diversification provisions of the ESOP. These unallocated shares would be released to participants proportionately as the loans are repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares, if any, that are used to repay the loan would be treated as compensation expense. As of June 30, 2023, the ESOP had zero outstanding loans with the Company. Distributions of the ESOP may be either in cash or Company common stock. The allocated shares are subject to a put option, whereby the Company will provide a market for a specified period of time for shares distributed to participants. The put price is the appraised value of the stock. The fair value of allocated shares of common stock held by the ESOP are deducted from permanent shareholders’ equity in the Consolidated Balance Sheets and reflected in a line item below liabilities and above shareholders’ equity. This presentation is necessary in order to recognize the put option within the ESOP-owned shares, consistent with U.S. Securities and Exchange Commission guidelines, that is present as long as the Company is not publicly traded. The Company uses a valuation by an external third party to determine the maximum possible cash obligation related to these securities. Increases or decreases in the value of the cash obligation are included in a separate line item in the Consolidated Statements of Shareholders’ Equity. The fair value of allocated shares held by the ESOP at June 30, 2023 was $89.4 million, based on the Company’s previously disclosed appraised value of $61.50 per share of common stock. The fair value at December 31, 2022 was $97.0 million, based on the Company’s previously disclosed appraised value of $66.75 per share of common stock. As previously disclosed, these appraised values were determined solely for purposes of the ESOP’s administration and are therefore subject to certain limitations, qualifications and assumptions and may not reflect the fair value of the Company’s common stock and should not be relied on for any reason. Neither the Company nor the ESOP has any obligation to seek an adjusted valuation, to use these appraised values for any other purpose or, if the Company or the ESOP obtains a new appraised value, to disclose such new appraised value. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock The Company’s Articles of Incorporation authorize 10,000,000 shares of preferred stock with no par value, which may be issued from time to time and in one or more classes or series upon authorization of the Board of Directors. On June 22, 2022, the Company entered into a Letter Agreement (including annexes thereto, collectively, the “Purchase Agreement”) with the U.S. Department of Treasury (the “Treasury”) under the Emergency Capital Investment Program (“ECIP”). Pursuant to the Purchase Agreement, the Company agreed to issue and sell 250,000 shares of the Company’s preferred stock designated as Senior Non-Cumulative Perpetual Preferred Stock, Series ECIP (the “Preferred Stock”) for an aggregate purchase price of $250.0 million in cash. The Preferred Stock was issued in a private placement exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The Preferred Stock bears no dividend for the first two years following the issuance of the Preferred Stock. Thereafter, the annual dividend rate will be adjusted, not lower than 0.5% and not higher than 2.0%, based on our extensions of credit for qualified lending as defined in the terms of the ECIP Interim Final Rule, the Purchase Agreement and the Certificate of Designations (the “Certificate of Designations”) and the investment amount. After the tenth anniversary of the issuance of the Preferred Stock, the dividend rate will be fixed based on the average annual amount of lending in years 2 through 10 compared to the baseline qualified lending and the average investment amount. The dividends will be payable quarterly in arrears on March 15, June 15, September 15, and December 15. The Preferred Stock may be redeemed at the option of the Company on or after September 15, 2027 (or earlier in the event of loss of regulatory capital treatment), subject to the approval of the appropriate federal banking regulator and in accordance with the federal banking agencies’ regulatory capital regulations. The restrictions on redemption are set forth in the Certificate of Designations filed with the Mississippi Secretary of State for the purpose of amending its Articles of Incorporation to fix the designations, preferences, limitations and relative rights of the Preferred Stock as described in Item 5.03 of our Current Report on Form 8-K filed with the SEC on June 23, 2022. In the Purchase Agreement, the Company also agreed to, upon the future written request of the Treasury, comply with the terms of a Registration Rights Agreement included as an annex to the Purchase Agreement and incorporated by reference therein (the “Registration Rights Agreement”), providing for certain registration rights of the Treasury. As long as the Company is not eligible to file on Form S-3, upon written request of the Treasury, the Company would be required to prepare and file a shelf registration statement covering the potential resale of the Preferred Stock as promptly as practicable. Once the Company is eligible to file on Form S-3, the Company agreed to prepare and file such shelf registration statement within 30 days. The Registration Rights Agreement also includes customary “piggyback” registration rights, suspension rights, indemnification, contribution, and assignment provisions. Common Stock In the first quarter of 2023, the Company’s shareholders approved an amendment to the Company’s Articles of Incorporation increasing the number of authorized shares of the Company’s common stock from 40,000,000 shares to 100,000,000 shares. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Under the Company’s long-term incentive program, certain officers, employees and directors are eligible to receive equity-based awards under the 2018 Long-Term Incentive Plan (“LTIP”). Restricted stock awards (“RSAs”) granted under the LTIP generally vest over one Stock based compensation that has been charged against income was $2.3 million for the six months ended June 30, 2023 and $1.8 million for the same period of 2022. There were 3,186 and zero shares forfeited during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, there was $11.7 million of total unrecognized compensation cost related to unvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 3.0 years. A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows: Six Months Ended June 30, 2023 June 30, 2022 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of period 184,284 $ 59.36 144,572 $ 51.56 Granted 93,209 66.66 95,768 68.25 Vested (68,204) 58.32 (54,537) 53.34 Forfeited (3,186) 61.13 — — End of period 206,103 $ 62.98 185,803 $ 59.64 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies On March 20, 2019, a complaint (the “Complaint”), Mills v. BankPlus, et al., Case #3:19-cv-00196-CWR-FKB, was filed in the United States District Court for the Southern District of Mississippi, Northern Division, by Alysson Mills, in her capacity as Court-appointed Receiver for Arthur Lamar Adams (“Adams”) and Madison Timber Properties, LLC (“Madison Timber”), naming the Bank, three former Bank employees, one then-current BankPlus employee and other defendants, including defendants affiliated and unaffiliated with BankPlus (“Defendants”). The Complaint seeks to recover damages from the Defendants for the benefit of the receivership estate related to certain investors who were allegedly defrauded by Adams and Madison Timber, whose actions were allegedly attributable to the actions of the Defendants that allegedly enabled negligent, illegal or fraudulent activities engaged in by Adams and Madison Timber. A brief description of the cause of action on the cover sheet filed with the Complaint includes securities, civil conspiracy, aiding and abetting, negligence, and other possible causes of action. The amount of damages (including punitive damages) requested against the Defendants in the Complaint is unspecified. On January 4, 2021, the plaintiff, Mills, filed an Amended Complaint. Answers and/or Motions to Dismiss the Amended complaint were filed by the Defendants. On July 8, 2021, the Court denied the Motion to Dismiss filed by BankPlus. A related motion for reconsideration was filed by BankPlus on August 9, 2021. The Court denied that motion. On September 30, 2021, an order was entered to consolidate for purposes of discovery this case (No. 3:19-cv-00196-CWR-FKB) with three other related cases filed by Mills, the Receiver. A Case Management Order (No. 3:22-cv-36-CWRFKB) was entered on January 31, 2022 for the sole purpose of managing consolidated discovery in the four related cases. Phase one written discovery is still underway. Phases two and three discovery, allowing depositions, will begin at a future date pursuant to a subsequent court order. In addition to the above, the Company, including subsidiaries, is party to various legal proceedings arising in the ordinary course of business. We do not believe that loss contingencies, if any, arising from pending litigation and regulatory matters will have a material adverse effect on our consolidated financial position or liquidity. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 13,192 | $ 16,115 | $ 30,271 | $ 25,804 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 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 (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The unaudited interim consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2022; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year. |
Basis of Accounting | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The allowance/provision for credit losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for credit losses, provision for credit losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. |
Effect of Recently Adopted Accounting Standards and Effect of Recently Issued But Not Yet Effective Accounting Standards | Effect of Recently Adopted Accounting Standards ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the previous loss estimation techniques are still permitted, although the inputs to those techniques have changed to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 is effective for the Company for annual and interim periods beginning on January 1, 2023. The measurement of expected credit losses under the current expected credit loss (“CECL”) methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures. In addition, ASU 2016-13 made changes to the accounting for available-for-sale debt securities, which includes required presentation of credit losses to be presented as an allowance rather than as a write-down when management does not intend to sell the securities. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with the then applicable GAAP. As of January 1, 2023 the Company recognized a one-time, after-tax cumulative effect adjustment of approximately $25.0 million to retained earnings, increasing the allowance for credit losses on loans held for investment by approximately $20.7 million and establishing an allowance for credit losses on off-balance sheet credit exposures of approximately $12.5 million due to the adoption of ASU 2016-13. The Company adopted ASU 2016-13 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchase credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management is not required to reassess whether PCI assets meet the criteria for PCD assets as of the date of adoption. The following table illustrates the impact of ASU 2016-13: January 1, 2023 (In thousands) As Reported Under ASU 2016-13 Pre-ASU 2016-13 Adoption Impact of ASU 2016-13 Adoption Assets: Allowance for credit losses on debt securities held-to-maturity $ — $ — $ — Allowance for credit losses on loans: Commercial real estate 39,471 26,701 12,770 Residential 16,422 9,958 6,464 Commercial and industrial 6,916 4,750 2,166 Consumer and other 810 1,466 (656) Total allowance for credit losses on loans 63,619 42,875 20,744 Liabilities: Allowance for credit losses on off-balance sheet exposures 12,505 — 12,505 Total allowance for credit losses $ 76,124 $ 42,875 $ 33,249 Allowance for Credit Losses – Available-for-sale debt securities For available-for-sale debt securities with fair value below amortized cost, when the Company does not intend to sell the debt security, and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, then the Company recognizes the credit component of a decline in fair value of a debt security in income and the remaining portion in other comprehensive income (loss). Decline in fair value related to a credit loss is measured using the discounted cash flow method. Credit loss recognition is limited to the amount that the fair value of the security is less than the amortized cost. The decline in fair value is recognized by establishing an allowance for credit loss (“ACL”) through provision for credit losses. Decline in fair value related to noncredit factors is recognized in accumulated other comprehensive income, net of applicable taxes. The Company has elected to exclude accrued interest from the estimate of credit losses for available-for-sale debt securities. The Company evaluates available-for-sale security declines in fair value on a quarterly basis. Allowance for Credit Losses – Held-to-maturity debt securities For held-to-maturity debt securities, expected losses are evaluated and calculated on a collective basis for those securities that share risk characteristics. The Company aggregates record level securities calculations and reports the security portfolio segments based on shared risk characteristics. The only segment included in the held to maturity portfolio is states and political subdivisions, which is comprised of municipals. The Company performs a quarterly loss reserve calculation for municipal and corporate bonds leveraging history of defaults and recoveries as well as a baseline economic forecast. A probability of default/loss-given default approach is used, with any non-rated bonds receiving a comparable rating estimate. Losses in high grade municipals, in which the Company tends to invest, have historically been very limited. The Company has elected to exclude accrued interest from the estimate of credit losses for held-to-maturity debt securities. Allowance for Credit Losses – Loans The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Management's determination of the adequacy of the ACL is based on an assessment of the expected credit losses on loans over the expected life of the loan. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged-off. Loans are charged off when management believes that the collection of the principal amount owed in full is unlikely. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Any interest that is accrued but not collected is reversed against interest income when a loan is placed on nonaccrual status, which typically occurs prior to charging off all, or a portion, of a loan. The Company made the policy election to exclude accrued interest receivable on loans from the estimate of credit losses. The Company calculates estimated credit loss on its portfolio primarily using quantitative methodologies using relevant available information from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The ACL is evaluated and calculated on a collective basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether the loans in a pool continue to exhibit similar risk characteristics as the other loans and whether it needs to evaluate the allowance on an individual basis. The Company has chosen to segment its portfolio consistent with the manner in which it manages the risk of the type of credit. The Company’s segments for loans include commercial real estate, commercial and industrial, residential and consumer. Expected credit losses are estimated over the contractual term of each loan taking into consideration expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative method or the economic assumptions described above. For example, factors that the Company considers include the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans and current business conditions. In addition to the ACL on loans held for investment, CECL requires a balance sheet liability for unfunded commitments, which is recognized if both of the following conditions are met: (1) the Company has a present contractual obligation to extend credit; and (2) the obligation is not unconditionally cancellable by the Company. Loan commitments may have a funded and unfunded portion, of which the liability for unfunded commitments is derived based upon the commitments to extend credit to a borrower (e.g., an estimate of expected credit losses is not established for unfunded portions of loan commitment that are unconditionally cancellable by the Company). The expected credit losses for funded portions are reported in the previously discussed ACL. The Company segments its unfunded commitment portfolio consistent with the ACL calculation. The Company incorporates the probability of funding (i.e., estimate of utilization) for each segment and then utilizes the ACL loss rates for each segment on an aggregate basis to calculate the allowance for unfunded commitments. Accounting Standards Update 2022-02 (“ASU 2022-02”), “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” In March 2022, the FASB issued ASU 2022-02 which eliminates the TDR recognition and measurement guidance and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. ASU 2022-02 also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for the Company for annual and interim periods beginning on January 1, 2023. The adoption of ASU 2022-02 in the first quarter of 2023 did not materially impact the Company’s consolidated financial statements. Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04 which provides temporary optional expedients and exceptions to the Generally Accepted Accounting Principles (“GAAP”) guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The Company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements. Accounting Standards Update 2022-06 (“ASU 2022-06”), “Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848.” In December 2022, the FASB issued ASU 2022-06 which provides temporary relief during the transition period in complying with ASU 2020-04. The Board included a sunset provision within Topic 848 based on expectations of when LIBOR would cease being published. At the time that ASU 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022 - 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which was beyond the current sunset date of Topic 848. Effect of Recently Issued, But Not Yet Effective Accounting Standards Accounting Standards Update 2023-02 (“ASU 2023-02”), “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” In March 2023, the FASB issued ASU 2023-02 which allows entities to elect to account for tax equity investments using the proportional amortization method, regardless of the tax credit program from which the income tax credits are received, if certain conditions are met. ASU 2023-02 is effective for the Company for annual and interim periods beginning on January 1, 2024. The Company does not expect it to have a material impact on its consolidated financial statements. |
Allowance for Loan Losses | Loans are stated at the amount of unpaid principal net of discounts and premiums on acquired loans, before allowance for credit losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration – The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, Alabama, and Florida. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans – The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans – Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans – The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer and Other Loans – The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When a loan is placed on non-accrual status, any interest that is accrued, but not collected, is reversed against interest income. Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured. On January 1, 2023, the Company adopted ASU 2016-13, which replaces the incurred loss methodology with an expected loss methodology that is referred to as CECL. See Note 1, Basis of Presentation. As a result of implementing CECL, there was a one-time adjustment to the 2023 opening allowance balance of approximately $20.7 million. As management evaluates the allowance for credit losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not individually evaluated or deemed collateral-dependent or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows: • Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. • Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. • Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. • Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. • Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Pass loans for the Company include loans in Risk Grades 1 - 6. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered individually evaluated or collateral-dependent, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for individual evaluation or (ii) the loan was individually evaluated, but not deemed to be collateral-dependent. |
Financial Instruments Measured at Fair Value | Financial Instruments Measured at Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities – The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of June 30, 2023 or December 31, 2022. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio. Individually Evaluated Loans with Credit Losses – Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists on a non-recurring basis. Allowable methods for determining the amount of the credit loss include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for these loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral-dependent. Loans that are primarily collateral dependent loans are assessed using a fair value approach. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Loans that have experienced a credit loss are classified within Level 3 of the fair value hierarchy. Other Real Estate Owned – Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral-dependent loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of impact of ASU 2016-13 | The following table illustrates the impact of ASU 2016-13: January 1, 2023 (In thousands) As Reported Under ASU 2016-13 Pre-ASU 2016-13 Adoption Impact of ASU 2016-13 Adoption Assets: Allowance for credit losses on debt securities held-to-maturity $ — $ — $ — Allowance for credit losses on loans: Commercial real estate 39,471 26,701 12,770 Residential 16,422 9,958 6,464 Commercial and industrial 6,916 4,750 2,166 Consumer and other 810 1,466 (656) Total allowance for credit losses on loans 63,619 42,875 20,744 Liabilities: Allowance for credit losses on off-balance sheet exposures 12,505 — 12,505 Total allowance for credit losses $ 76,124 $ 42,875 $ 33,249 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended June 30, Six Months Ended June 30, (In thousands except per share data) 2023 2022 2023 2022 Net income $ 13,192 $ 16,115 $ 30,271 $ 25,804 Weighted average common shares outstanding 11,424 11,460 11,419 10,959 Diluted effect of unallocated stock — — — 9 Diluted effect of stock-based awards 13 58 37 66 Diluted common shares 11,437 11,518 11,456 11,034 Basic earnings per common share $ 1.15 $ 1.41 $ 2.65 $ 2.35 Diluted earnings per common share $ 1.15 $ 1.40 $ 2.64 $ 2.34 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Consideration paid and preliminary fair value allocation | The following table reflects the consideration paid and the fair value allocation of assets acquired and liabilities assumed as of the acquisition date: (In thousands) Purchase price allocation: Common stock issued $ 56,489 Cash paid 63,239 Total purchase price $ 119,728 Assets acquired: Cash and due from banks $ 229,213 Securities 33,407 Loans held for sale 6,200 Loans, net 1,000,382 Premises and equipment 15,152 Accrued interest receivable 1,441 Core deposit intangible 7,825 Other assets 4,584 Total assets acquired $ 1,298,204 Liabilities assumed: Deposits $ 1,212,712 Subordinated debentures 21,733 Other liabilities 4,187 Total liabilities assumed $ 1,238,632 Net assets acquired 59,572 Goodwill $ 60,156 |
Unaudited pro forma information | The following table presents unaudited pro forma information as if the FTC Merger had occurred on January 1, 2022. This pro forma information combines the historic consolidated results of operations of BancPlus and FTC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the FTC Merger occurred on January 1, 2022. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2022 2022 Net interest income $ 49,180 $ 103,053 Other operating income 17,510 38,052 Net income available to common shareholders 14,385 28,309 Earnings per common share: Basic $ 1.26 $ 2.48 Diluted 1.25 2.46 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the amortized cost and fair value of securities available for sale | The following is a summary of the amortized cost and fair value of securities available for sale. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value June 30, 2023: U.S. Treasuries $ 197,136 $ 45 $ 817 $ 196,364 U.S. Government agency obligations 444,078 135 32,826 411,387 Residential mortgage-backed securities 99,015 6 11,502 87,519 Commercial mortgage-backed securities 13,744 — 1,762 11,982 Asset-backed securities 7,533 91 63 7,561 Corporate investments 52,959 — 9,124 43,835 State and political subdivisions 49,753 78 2,369 47,462 Total available for sale $ 864,218 $ 355 $ 58,463 $ 806,110 December 31, 2022: U.S. Treasuries $ 35,814 $ — $ 1,235 $ 34,579 U.S. Government agency obligations 414,251 246 35,761 378,736 Residential mortgage-backed securities 105,580 13 11,461 94,132 Commercial mortgage-backed securities 13,812 — 1,742 12,070 Asset backed securities 10,289 54 123 10,220 Corporate investments 51,000 — 4,967 46,033 State and political subdivisions 50,530 77 2,457 48,150 Total available for sale $ 681,276 $ 390 $ 57,746 $ 623,920 |
Summary of the amortized cost and fair value of securities held to maturity | The following is a summary of the amortized cost and fair value of securities held to maturity. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value June 30, 2023: States and political subdivisions $ 58,118 $ — $ 223 $ 57,895 Total held to maturity $ 58,118 $ — $ 223 $ 57,895 December 31, 2022: States and political subdivisions $ 62,274 $ — $ 206 $ 62,068 Total held to maturity $ 62,274 $ — $ 206 $ 62,068 |
Summary of investment securities that were in an unrealized loss position | Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position. Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) June 30, 2023: Available for sale: U.S. Treasuries $ 41,605 $ 37 $ 30,174 $ 780 $ 71,779 $ 817 U.S. Government agencies 46,851 895 342,529 31,931 389,380 32,826 Residential mortgage-backed securities 6,051 205 80,823 11,297 86,874 11,502 Commercial mortgage-backed securities — — 11,982 1,762 11,982 1,762 Asset backed securities 1,371 2 1,605 61 2,976 63 Corporate investments 11,507 1,451 32,328 7,673 43,835 9,124 States and political subdivisions 21,851 541 20,575 1,828 42,426 2,369 $ 129,236 $ 3,131 $ 520,016 $ 55,332 $ 649,252 $ 58,463 Held to maturity: States and political subdivisions $ 3,795 $ 87 $ 3,750 $ 136 $ 7,545 $ 223 $ 3,795 $ 87 $ 3,750 $ 136 $ 7,545 $ 223 December 31, 2022: Available for sale: U.S. Treasuries $ 34,579 $ 1,235 $ — $ — $ 34,579 $ 1,235 U.S. Government agencies 78,676 4,830 285,994 30,931 364,670 35,761 Residential mortgage-backed securities 81,992 8,935 11,258 2,526 93,250 11,461 Commercial mortgage-backed securities 4,860 594 7,210 1,148 12,070 1,742 Asset backed securities 1,169 7 3,499 116 4,668 123 Corporate investments 36,958 4,042 7,076 925 44,034 4,967 States and political subdivisions 36,655 1,781 5,084 676 41,739 2,457 $ 274,889 $ 21,424 $ 320,121 $ 36,322 $ 595,010 $ 57,746 Held to maturity: States and political subdivisions $ 9,259 $ 206 $ — $ — $ 9,259 $ 206 $ 9,259 $ 206 $ — $ — $ 9,259 $ 206 |
Schedule of investments classified by contractual maturity date | The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value June 30, 2023: One year or less $ 264,104 $ 261,766 $ 5,997 $ 5,978 After one through five years 370,859 343,157 44,173 44,011 After five through ten years 121,534 105,047 6,308 6,266 After ten years 107,721 96,140 1,640 1,640 $ 864,218 $ 806,110 $ 58,118 $ 57,895 |
Summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes | The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value June 30, 2023 $ 153,527 $ 144,737 $ 475 $ 469 December 31, 2022 $ 492,206 $ 451,638 $ 35,734 $ 35,562 |
Summary of amortized cost basis of held-to-maturity debt securities by credit rating | The following table summarizes the amortized cost basis of held-to-maturity debt securities at June 30, 2023 by credit rating: (In thousands) June 30, 2023 State and political subdivisions held-to-maturity: S&P: AA+, AA, AA- / Moody's: Aa1, Aa2, Aa3 $ 5,206 S&P: A+, A, A- / Moody's: A1, A2, A3 961 S&P: BBB+, BBB, BBB- / Moody's: Baa, Ba, B 496 Not rated 51,455 $ 58,118 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Summary of the Company’s loan portfolio by loan class | The following is a summary of the Company’s loan portfolio by loan class. (In thousands) June 30, 2023 December 31, 2022 Secured by real estate: Residential properties $ 1,494,751 $ 1,403,974 Construction and land development 813,512 772,357 Farmland 301,778 283,832 Other commercial 2,587,757 2,467,216 Total real estate 5,197,798 4,927,379 Commercial and industrial loans 699,305 706,466 Agricultural production and other loans to farmers 92,885 80,770 Consumer and other loans 98,826 109,534 Total loans before allowance for credit losses $ 6,088,814 $ 5,824,149 |
Summary of the recorded investment in non-accrual loans, segregated by class | The following table presents the amortized cost basis of nonaccrual loans, segregated by class as of June 30, 2023. (In thousands) Total Nonaccrual Nonaccrual with no Allowance for Credit Loss Past Due 90 days or more and Accruing Secured by real estate: Residential properties $ 2,287 $ — $ 1,170 Construction and land development — — — Farmland 670 — 59 Other commercial 1,725 — 1,640 Total real estate 4,682 — 2,869 Commercial and industrial loans 92 — 187 Agricultural production and other loans to farmers — — — Consumer and other loans — — 44 Total $ 4,774 $ — $ 3,100 |
Summary of the credit quality of the Company’s loan portfolio by loan class | The following table presents the amortized cost basis of collateral-dependent loans by class and collateral type as of June 30, 2023. (In thousands) Real Estate Enterprise Value Accounts Receivable & Inventory Secured by real estate: Residential properties $ — $ — $ — Construction and land development — — — Farmland — — — Other commercial 2,913 1,527 — Total real estate 2,913 1,527 — Commercial and industrial loans — — 9,015 Agricultural production and other loans to farmers — — — Consumer loans — — — Total $ 2,913 $ 1,527 $ 9,015 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: Pass $ 160,548 $ 445,706 $ 329,396 $ 137,374 $ 55,555 $ 94,057 $ 258,322 $ 1,480,958 Special mention — — — — — — — — Classified 80 1,042 2,078 2,465 1,545 5,230 1,353 13,793 Total residential real estate $ 160,628 $ 446,748 $ 331,474 $ 139,839 $ 57,100 $ 99,287 $ 259,675 $ 1,494,751 Current period gross write offs $ — $ — $ 1 $ 32 $ — $ 143 $ 2 $ 178 Construction & land development: Pass $ 25,622 $ 65,499 $ 15,339 $ 4,629 $ 7,052 $ 8,051 $ 684,876 $ 811,068 Special mention — 42 — — — — — 42 Classified — 87 9 1,003 1,259 12 32 2,402 Total construction & land development $ 25,622 $ 65,628 $ 15,348 $ 5,632 $ 8,311 $ 8,063 $ 684,908 $ 813,512 Current period gross write offs $ — $ — $ — $ — $ — $ 7 $ — $ 7 Farmland: Pass $ 21,223 $ 87,058 $ 33,149 $ 29,396 $ 15,514 $ 26,373 $ 86,455 $ 299,168 Special mention — — — — — — — — Classified 22 153 589 118 65 1,411 252 2,610 Total farmland $ 21,245 $ 87,211 $ 33,738 $ 29,514 $ 15,579 $ 27,784 $ 86,707 $ 301,778 Current period gross write offs $ — $ 3 $ 2 $ — $ — $ 109 $ — $ 114 Other commercial real estate: Pass $ 126,216 $ 517,955 $ 411,413 $ 256,570 $ 123,526 $ 229,514 $ 910,237 $ 2,575,431 Special mention — — — — — — — — Classified 107 1,706 2,706 557 2,557 3,485 1,208 12,326 Total other commercial real estate $ 126,323 $ 519,661 $ 414,119 $ 257,127 $ 126,083 $ 232,999 $ 911,445 $ 2,587,757 Current period gross write offs $ — $ — $ 56 $ — $ — $ — $ — $ 56 Commercial & industrial loans: Pass $ 63,301 $ 172,135 $ 100,616 $ 45,688 $ 30,482 $ 11,796 $ 262,844 $ 686,862 Special mention — — — — — — — — Classified 49 711 95 479 139 10,569 401 12,443 Total commercial & industrial loans $ 63,350 $ 172,846 $ 100,711 $ 46,167 $ 30,621 $ 22,365 $ 263,245 $ 699,305 Current period gross write offs $ — $ 62 $ 52 $ 2 $ 16 $ 7 $ 178 $ 317 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Agricultural production & other loans to farmers: Pass $ 9,352 $ 10,338 $ 5,088 $ 4,140 $ 1,443 $ 739 $ 61,700 $ 92,800 Special mention — — — — — — — — Classified — 7 — 54 11 13 — 85 Total agricultural production & other loans to farmers $ 9,352 $ 10,345 $ 5,088 $ 4,194 $ 1,454 $ 752 $ 61,700 $ 92,885 Current period gross write offs $ — $ 5 $ — $ — $ — $ — $ 8 $ 13 Consumer & other loans: Pass $ 24,685 $ 24,416 $ 7,623 $ 5,517 $ 1,099 $ 493 $ 34,912 $ 98,745 Special mention — — — — — — — — Classified 3 12 15 1 — 11 39 81 Total consumer & other loans $ 24,688 $ 24,428 $ 7,638 $ 5,518 $ 1,099 $ 504 $ 34,951 $ 98,826 Current period gross write offs $ 1,388 $ 111 $ 32 $ 35 $ 11 $ 9 $ 14 $ 1,600 The following table summarizes the credit quality of the Company’s loan portfolio by loan class at December 31, 2022: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2022 Secured by real estate: Residential properties $ 1,391,039 $ — $ 12,852 $ 83 $ 1,403,974 Construction and land development 768,699 303 3,355 — 772,357 Farmland 280,522 — 3,310 — 283,832 Other commercial 2,456,708 — 10,384 124 2,467,216 Total real estate 4,896,968 303 29,901 207 4,927,379 Commercial and industrial 693,963 — 12,503 — 706,466 Agricultural production and other loans to farmers 80,524 — 246 — 80,770 Consumer and other loans 108,279 — 1,255 — 109,534 Total $ 5,779,734 $ 303 $ 43,905 $ 207 $ 5,824,149 |
Summary of age analysis of past due loans | An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows: (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans June 30, 2023 Secured by real estate: Residential properties $ 6,108 $ 2,086 $ 8,194 $ 1,486,557 $ 1,494,751 Construction and land development 526 — 526 812,986 813,512 Farmland 569 738 1,307 300,471 301,778 Other commercial 1,387 1,989 3,376 2,584,381 2,587,757 Total real estate 8,590 4,813 13,403 5,184,395 5,197,798 Commercial and industrial loans 2,815 234 3,049 696,256 699,305 Agricultural production and other loans to farmers 12 — 12 92,873 92,885 Consumer loans 324 44 368 98,458 98,826 Total $ 11,741 $ 5,091 $ 16,832 $ 6,071,982 $ 6,088,814 (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans December 31, 2022 Secured by real estate: Residential properties $ 5,869 $ 2,015 $ 7,884 $ 1,396,090 $ 1,403,974 Construction and land development 526 1,578 2,104 770,253 772,357 Farmland 566 1,391 1,957 281,875 283,832 Other commercial 1,498 774 2,272 2,464,944 2,467,216 Total real estate 8,459 5,758 14,217 4,913,162 4,927,379 Commercial and industrial loans 902 677 1,579 704,887 706,466 Agricultural production and other loans to farmers 126 — 126 80,644 80,770 Consumer loans 1,530 697 2,227 107,307 109,534 Total $ 11,017 $ 7,132 $ 18,149 $ 5,806,000 $ 5,824,149 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Summary of the Company’s loan portfolio by loan class | The following is a summary of the Company’s loan portfolio by loan class. (In thousands) June 30, 2023 December 31, 2022 Secured by real estate: Residential properties $ 1,494,751 $ 1,403,974 Construction and land development 813,512 772,357 Farmland 301,778 283,832 Other commercial 2,587,757 2,467,216 Total real estate 5,197,798 4,927,379 Commercial and industrial loans 699,305 706,466 Agricultural production and other loans to farmers 92,885 80,770 Consumer and other loans 98,826 109,534 Total loans before allowance for credit losses $ 6,088,814 $ 5,824,149 |
Summary of the credit quality of the Company’s loan portfolio by loan class | The following table presents the amortized cost basis of collateral-dependent loans by class and collateral type as of June 30, 2023. (In thousands) Real Estate Enterprise Value Accounts Receivable & Inventory Secured by real estate: Residential properties $ — $ — $ — Construction and land development — — — Farmland — — — Other commercial 2,913 1,527 — Total real estate 2,913 1,527 — Commercial and industrial loans — — 9,015 Agricultural production and other loans to farmers — — — Consumer loans — — — Total $ 2,913 $ 1,527 $ 9,015 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: Pass $ 160,548 $ 445,706 $ 329,396 $ 137,374 $ 55,555 $ 94,057 $ 258,322 $ 1,480,958 Special mention — — — — — — — — Classified 80 1,042 2,078 2,465 1,545 5,230 1,353 13,793 Total residential real estate $ 160,628 $ 446,748 $ 331,474 $ 139,839 $ 57,100 $ 99,287 $ 259,675 $ 1,494,751 Current period gross write offs $ — $ — $ 1 $ 32 $ — $ 143 $ 2 $ 178 Construction & land development: Pass $ 25,622 $ 65,499 $ 15,339 $ 4,629 $ 7,052 $ 8,051 $ 684,876 $ 811,068 Special mention — 42 — — — — — 42 Classified — 87 9 1,003 1,259 12 32 2,402 Total construction & land development $ 25,622 $ 65,628 $ 15,348 $ 5,632 $ 8,311 $ 8,063 $ 684,908 $ 813,512 Current period gross write offs $ — $ — $ — $ — $ — $ 7 $ — $ 7 Farmland: Pass $ 21,223 $ 87,058 $ 33,149 $ 29,396 $ 15,514 $ 26,373 $ 86,455 $ 299,168 Special mention — — — — — — — — Classified 22 153 589 118 65 1,411 252 2,610 Total farmland $ 21,245 $ 87,211 $ 33,738 $ 29,514 $ 15,579 $ 27,784 $ 86,707 $ 301,778 Current period gross write offs $ — $ 3 $ 2 $ — $ — $ 109 $ — $ 114 Other commercial real estate: Pass $ 126,216 $ 517,955 $ 411,413 $ 256,570 $ 123,526 $ 229,514 $ 910,237 $ 2,575,431 Special mention — — — — — — — — Classified 107 1,706 2,706 557 2,557 3,485 1,208 12,326 Total other commercial real estate $ 126,323 $ 519,661 $ 414,119 $ 257,127 $ 126,083 $ 232,999 $ 911,445 $ 2,587,757 Current period gross write offs $ — $ — $ 56 $ — $ — $ — $ — $ 56 Commercial & industrial loans: Pass $ 63,301 $ 172,135 $ 100,616 $ 45,688 $ 30,482 $ 11,796 $ 262,844 $ 686,862 Special mention — — — — — — — — Classified 49 711 95 479 139 10,569 401 12,443 Total commercial & industrial loans $ 63,350 $ 172,846 $ 100,711 $ 46,167 $ 30,621 $ 22,365 $ 263,245 $ 699,305 Current period gross write offs $ — $ 62 $ 52 $ 2 $ 16 $ 7 $ 178 $ 317 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Agricultural production & other loans to farmers: Pass $ 9,352 $ 10,338 $ 5,088 $ 4,140 $ 1,443 $ 739 $ 61,700 $ 92,800 Special mention — — — — — — — — Classified — 7 — 54 11 13 — 85 Total agricultural production & other loans to farmers $ 9,352 $ 10,345 $ 5,088 $ 4,194 $ 1,454 $ 752 $ 61,700 $ 92,885 Current period gross write offs $ — $ 5 $ — $ — $ — $ — $ 8 $ 13 Consumer & other loans: Pass $ 24,685 $ 24,416 $ 7,623 $ 5,517 $ 1,099 $ 493 $ 34,912 $ 98,745 Special mention — — — — — — — — Classified 3 12 15 1 — 11 39 81 Total consumer & other loans $ 24,688 $ 24,428 $ 7,638 $ 5,518 $ 1,099 $ 504 $ 34,951 $ 98,826 Current period gross write offs $ 1,388 $ 111 $ 32 $ 35 $ 11 $ 9 $ 14 $ 1,600 The following table summarizes the credit quality of the Company’s loan portfolio by loan class at December 31, 2022: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2022 Secured by real estate: Residential properties $ 1,391,039 $ — $ 12,852 $ 83 $ 1,403,974 Construction and land development 768,699 303 3,355 — 772,357 Farmland 280,522 — 3,310 — 283,832 Other commercial 2,456,708 — 10,384 124 2,467,216 Total real estate 4,896,968 303 29,901 207 4,927,379 Commercial and industrial 693,963 — 12,503 — 706,466 Agricultural production and other loans to farmers 80,524 — 246 — 80,770 Consumer and other loans 108,279 — 1,255 — 109,534 Total $ 5,779,734 $ 303 $ 43,905 $ 207 $ 5,824,149 |
Summary of allowance for loan losses and balances in the loan portfolio by loan segment | Transactions in the allowance for credit losses and balances in the loan portfolio by loan segment are as follows: (In thousands) Commercial Commercial Residential Consumer Total Three Months Ended June 30, 2023 Allowance for credit losses: Beginning balance $ 6,404 $ 40,494 $ 16,420 $ 1,085 $ 64,403 Provision for credit losses (80) (175) 937 104 786 Recoveries on loans 115 97 67 558 837 Loans charged off (29) (106) (5) (657) (797) Ending balance $ 6,410 $ 40,310 $ 17,419 $ 1,090 $ 65,229 Six Months Ended June 30, 2023 Allowance for loan losses: Beginning balance $ 4,750 $ 26,701 $ 9,958 $ 1,466 $ 42,875 Impact of adopting ASU 2016-13 2,166 12,770 6,464 (656) 20,744 Provision for credit losses (392) 804 1,050 744 2,206 Recoveries on loans 203 212 125 1,149 1,689 Loans charged off (317) (177) (178) (1,613) (2,285) Ending balance $ 6,410 $ 40,310 $ 17,419 $ 1,090 $ 65,229 Period End Allowance Balance Allocated To: Individually evaluated $ 227 $ — $ — $ — $ 227 Collectively evaluated 6,183 40,310 17,419 1,090 65,002 Ending balance $ 6,410 $ 40,310 $ 17,419 $ 1,090 $ 65,229 The allowance for credit losses increased for the six months ended June 30, 2023 primarily as a result of the adoption of ASU 2016-13. Accrued interest receivable on loans, reported as a component of accrued interest receivable on the balance sheet, totaled approximately $21.5 million at June 30, 2023 and is excluded from the estimate of credit losses. (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total Three Months Ended June 30, 2022 Allowance for loan losses: Beginning balance $ 6,052 $ 26,912 $ 9,603 $ 1,671 $ 44,238 Provision for loan losses (1,063) 635 146 516 234 Recoveries on loans 58 413 55 770 1,296 Loans charged off (921) (3) (530) (961) (2,415) Balance, end of year $ 4,126 $ 27,957 $ 9,274 $ 1,996 $ 43,353 Six Months Ended June 30, 2022 Allowance for loan losses: Beginning balance $ 6,556 $ 27,133 $ 9,488 $ 1,823 $ 45,000 Provision for loan losses (1,531) 710 457 815 451 Recoveries on loans 80 554 109 1,561 2,304 Loans charged off (979) (440) (780) (2,203) (4,402) Ending balance $ 4,126 $ 27,957 $ 9,274 $ 1,996 $ 43,353 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 132 $ — $ 7 $ — $ 139 Collectively evaluated for impairment 3,994 27,957 9,267 1,996 43,214 Ending balance $ 4,126 $ 27,957 $ 9,274 $ 1,996 $ 43,353 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Matters [Abstract] | |
Schedule of actual and required capital ratios | The following table presents actual and required capital ratios for the Company and the Bank under the CBLR and prompt corrective action regulations for the relevant periods. Actual Minimum Requirement to be Well Capitalized (In thousands) Capital Amount Ratio Capital Amount Ratio June 30, 2023: Company: Community Bank Leverage Ratio $ 733,707 10.00 % $ 660,411 9.00 % Bank: Community Bank Leverage Ratio $ 682,869 9.32 % $ 659,762 9.00 % Actual Minimum Requirement to be Well Capitalized (In thousands) Capital Amount Ratio Capital Amount Ratio December 31, 2022: Company: Community Bank Leverage Ratio $ 721,001 10.54 % $ 615,566 9.00 % Bank: Community Bank Leverage Ratio $ 636,007 9.31 % $ 614,973 9.00 % |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule assets and liabilities measured on recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 June 30, 2023 U.S. Treasuries $ 196,364 $ — $ 196,364 $ — U.S. Government agency obligations 411,387 — 411,387 — Residential mortgage-backed securities 87,519 — 87,519 — Commercial mortgage-backed securities 11,982 — 11,982 — Asset-backed securities 7,561 — 7,561 — Corporate investments 43,835 — 43,835 — State and political subdivisions 47,462 — 47,462 — Total securities available for sale $ 806,110 $ — $ 806,110 $ — December 31, 2022 U.S. Treasuries $ 34,579 $ — $ 34,579 $ — U.S. Government agency obligations 378,736 — 378,736 — Residential mortgage-backed securities 94,132 — 94,132 — Commercial mortgage-backed securities 12,070 — 12,070 — Asset backed securities 10,220 — 10,220 — Corporate investments 46,033 — 46,033 — State and political subdivisions 48,150 — 48,150 — Total securities available for sale $ 623,920 $ — $ 623,920 $ — |
Schedule of assets measured at fair value on a non-recurring basis | Assets measured at fair value on a non-recurring basis are summarized below. Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 Individually evaluated loans with credit losses, net of allowance for credit losses: June 30, 2023 $ 1,300 $ — $ — $ 1,300 Impaired loans, net of allowance for loan losses: December 31, 2022 $ 26,071 $ — $ — $ 26,071 Other real estate owned: June 30, 2023 $ 3,722 $ — $ — $ 3,722 December 31, 2022 $ 4,231 $ — $ — $ 4,231 |
Schedule of quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis | The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis. Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range Weighted Average June 30, 2023 Individually evaluated loans with credit losses, net of specific allowance $ 1,300 Third-party appraisals Selling costs 5% - 10% 6% Other real estate owned $ 3,722 Third-party appraisals and internal evaluations Selling costs 5% - 10% 6% Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range Weighted Average December 31, 2022 Impaired loans, net of allowance for loan losses $ 26,071 Third-party appraisals Selling costs 5% - 10% 6% Other real estate owned $ 4,231 Third-party appraisals and internal evaluations Selling costs 5% - 10% 6% |
Schedule of estimated fair values of the Company’s financial instruments not previously disclosed | The following table presents estimated fair values of the Company’s financial instruments not carried at fair value: June 30, 2023 December 31, 2022 (In thousands) Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 191,214 $ 191,214 $ 137,895 $ 137,895 Level 2 inputs: Securities held to maturity 58,118 57,895 62,274 62,068 FHLB stock 26,011 26,011 19,690 19,690 Accrued interest receivable 25,454 25,454 23,156 23,156 Level 3 inputs: Loans held for sale 13,176 13,176 5,373 5,373 Loans, net 6,023,585 5,789,083 5,781,274 5,601,070 Financial liabilities: Level 2 inputs: Deposits 6,108,309 6,091,601 5,824,904 5,289,138 FHLB and other borrowings 540,065 536,993 318,084 318,079 Subordinated debentures 133,579 138,214 133,478 138,780 Accrued interest payable 5,924 5,924 2,334 2,334 |
Subordinated Debentures and T_2
Subordinated Debentures and Trust Preferred Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of debentures payable to statutory trusts | The following is a summary of subordinated debentures payable to statutory trusts. (In thousands) Year of Interest June 30, December 31, First Bancshares of Baton Rouge Statutory Trust I 2034 3 month CME Term SOFR, plus 2.50% $ 4,124 $ 4,124 State Capital Statutory Trust IV 2035 3 month CME Term SOFR, plus 1.99% 5,155 5,155 BancPlus Statutory Trust II 2036 3 month CME Term SOFR, plus 1.50% 20,619 20,619 BancPlus Statutory Trust III 2037 3 month CME Term SOFR, plus 1.35% 20,619 20,619 State Capital Master Trust 2037 3 month CME Term SOFR, plus 1.46% 6,186 6,186 $ 56,703 $ 56,703 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of restricted stock activity | A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows: Six Months Ended June 30, 2023 June 30, 2022 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of period 184,284 $ 59.36 144,572 $ 51.56 Granted 93,209 66.66 95,768 68.25 Vested (68,204) 58.32 (54,537) 53.34 Forfeited (3,186) 61.13 — — End of period 206,103 $ 62.98 185,803 $ 59.64 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of reportable segments | segment | 1 | |||||
Less: Allowance for credit losses | $ 65,229 | $ 64,403 | $ 42,875 | $ 43,353 | $ 44,238 | $ 45,000 |
Allowance for credit losses on off-balance sheet exposures | 0 | |||||
Impact of ASU 2016-13 Adoption | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Less: Allowance for credit losses | 20,744 | |||||
Allowance for credit losses on off-balance sheet exposures | 12,505 | |||||
Retained Earnings | Impact of ASU 2016-13 Adoption | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adjustment to retained earnings | $ 25,000 |
Basis of Presentation - Allowan
Basis of Presentation - Allowance for Credit Losses Adjustments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||||||
Allowance for credit losses on debt securities held-to-maturity | $ 0 | |||||
Total allowance for credit losses on loans | $ 65,229 | $ 64,403 | 42,875 | $ 43,353 | $ 44,238 | $ 45,000 |
Liabilities: | ||||||
Allowance for credit losses on off-balance sheet exposures | 0 | |||||
Total allowance for credit losses | 42,875 | |||||
Real estate | Construction and land development | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 26,701 | |||||
Residential | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 17,419 | 16,420 | 9,958 | 9,274 | 9,603 | 9,488 |
Residential | Residential properties | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 9,958 | |||||
Commercial and industrial loans | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | $ 6,410 | $ 6,404 | 4,750 | $ 4,126 | $ 6,052 | $ 6,556 |
Consumer and other | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 1,466 | |||||
Impact of ASU 2016-13 Adoption | ||||||
Assets: | ||||||
Allowance for credit losses on debt securities held-to-maturity | 0 | |||||
Total allowance for credit losses on loans | 20,744 | |||||
Liabilities: | ||||||
Allowance for credit losses on off-balance sheet exposures | 12,505 | |||||
Total allowance for credit losses | 33,249 | |||||
Impact of ASU 2016-13 Adoption | Real estate | Construction and land development | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 12,770 | |||||
Impact of ASU 2016-13 Adoption | Residential | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 6,464 | |||||
Impact of ASU 2016-13 Adoption | Residential | Residential properties | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 6,464 | |||||
Impact of ASU 2016-13 Adoption | Commercial and industrial loans | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 2,166 | |||||
Impact of ASU 2016-13 Adoption | Consumer and other | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | (656) | |||||
As Reported Under ASU 2016-13 | ||||||
Assets: | ||||||
Allowance for credit losses on debt securities held-to-maturity | 0 | |||||
Total allowance for credit losses on loans | 63,619 | |||||
Liabilities: | ||||||
Allowance for credit losses on off-balance sheet exposures | 12,505 | |||||
Total allowance for credit losses | 76,124 | |||||
As Reported Under ASU 2016-13 | Real estate | Construction and land development | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 39,471 | |||||
As Reported Under ASU 2016-13 | Residential | Residential properties | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 16,422 | |||||
As Reported Under ASU 2016-13 | Commercial and industrial loans | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | 6,916 | |||||
As Reported Under ASU 2016-13 | Consumer and other | ||||||
Assets: | ||||||
Total allowance for credit losses on loans | $ 810 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 13,192 | $ 16,115 | $ 30,271 | $ 25,804 |
Weighted average common shares outstanding (in shares) | 11,424 | 11,460 | 11,419 | 10,959 |
Dilutive effect of unallocated stock (in shares) | 0 | 0 | 0 | 9 |
Diluted effect of stock-based awards (in shares) | 13 | 58 | 37 | 66 |
Diluted common shares (in shares) | 11,437 | 11,518 | 11,456 | 11,034 |
Basic earnings per common share (in USD per share) | $ 1.15 | $ 1.41 | $ 2.65 | $ 2.35 |
Diluted earnings per common share (in USD per share) | $ 1.15 | $ 1.40 | $ 2.64 | $ 2.34 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - First Trust Corporation ("FTC") Merger Agreement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 07, 2022 | Mar. 01, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||||
Number of shares issued with cash in lieu of fractional shares (in shares) | 1,444,764 | ||||
Cash consideration paid | $ 52,700 | ||||
Escrow deposit | 10,000 | ||||
Escrow deposit paid to former holders of FTC stock | $ 10,000 | ||||
Acquisition expenses | $ 1,300 | $ 5,500 | |||
Acquired core deposit intangible | $ 7,800 | ||||
Acquired core deposit intangible, amortization period | 10 years | ||||
Loans acquired | $ 1,000,382 | ||||
Discount on loans acquired | 6,600 | ||||
Contractual cash flows not expected to be collected | $ 15,700 | ||||
Decrease in goodwill | $ (1,100) |
Business Combinations - Conside
Business Combinations - Consideration Paid and Preliminary Fair Value Allocation (Details) - USD ($) $ in Thousands | Mar. 01, 2022 | Jun. 30, 2023 | Dec. 31, 2022 |
Liabilities assumed: | |||
Goodwill | $ 62,772 | $ 62,772 | |
First Trust Corporation ("FTC") Merger Agreement | |||
Purchase price allocation: | |||
Common stock issued | $ 56,489 | ||
Cash paid | 63,239 | ||
Total purchase price | 119,728 | ||
Assets acquired: | |||
Cash and due from banks | 229,213 | ||
Securities | 33,407 | ||
Loans held for sale | 6,200 | ||
Loans, net | 1,000,382 | ||
Premises and equipment | 15,152 | ||
Accrued interest receivable | 1,441 | ||
Core deposit intangible | 7,825 | ||
Other assets | 4,584 | ||
Total assets acquired | 1,298,204 | ||
Liabilities assumed: | |||
Deposits | 1,212,712 | ||
Subordinated debentures | 21,733 | ||
Other liabilities | 4,187 | ||
Total liabilities assumed | 1,238,632 | ||
Net assets acquired | 59,572 | ||
Goodwill | $ 60,156 |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Information (Details) - First Trust Corporation ("FTC") Merger Agreement - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 49,180 | $ 103,053 |
Other operating income | 17,510 | 38,052 |
Net income available to common shareholders | $ 14,385 | $ 28,309 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.26 | $ 2.48 |
Diluted (in dollars per share) | $ 1.25 | $ 2.46 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of the Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 864,218 | $ 681,276 |
Gross unrealized gains | 355 | 390 |
Gross unrealized losses | 58,463 | 57,746 |
Fair value | 806,110 | 623,920 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 197,136 | 35,814 |
Gross unrealized gains | 45 | 0 |
Gross unrealized losses | 817 | 1,235 |
Fair value | 196,364 | 34,579 |
U.S. Government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 444,078 | 414,251 |
Gross unrealized gains | 135 | 246 |
Gross unrealized losses | 32,826 | 35,761 |
Fair value | 411,387 | 378,736 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 99,015 | 105,580 |
Gross unrealized gains | 6 | 13 |
Gross unrealized losses | 11,502 | 11,461 |
Fair value | 87,519 | 94,132 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 13,744 | 13,812 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 1,762 | 1,742 |
Fair value | 11,982 | 12,070 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 7,533 | 10,289 |
Gross unrealized gains | 91 | 54 |
Gross unrealized losses | 63 | 123 |
Fair value | 7,561 | 10,220 |
Corporate investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 52,959 | 51,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 9,124 | 4,967 |
Fair value | 43,835 | 46,033 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 49,753 | 50,530 |
Gross unrealized gains | 78 | 77 |
Gross unrealized losses | 2,369 | 2,457 |
Fair value | $ 47,462 | $ 48,150 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Fair Value of Securities Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 58,118 | $ 62,274 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 223 | 206 |
Fair value | 57,895 | 62,068 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 58,118 | 62,274 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 223 | 206 |
Fair value | $ 57,895 | $ 62,068 |
Investment Securities - Summa_3
Investment Securities - Summary of Investment Securities that were in an Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2023 USD ($) debtPosition | Dec. 31, 2022 USD ($) debtPosition |
Available for Sale | ||
Fair value, less than 12 months | $ 129,236 | $ 274,889 |
Unrealized losses, less than 12 months | 3,131 | 21,424 |
Fair value, 12 months or more | 520,016 | 320,121 |
Unrealized losses, 12 months or more | 55,332 | 36,322 |
Fair value, total | 649,252 | 595,010 |
Unrealized losses, total | 58,463 | 57,746 |
Held to maturity: | ||
Fair value, less than 12 months | 3,795 | 9,259 |
Unrealized losses, less than 12 months | 87 | 206 |
Fair value, 12 months or more | 3,750 | 0 |
Unrealized Losses, 12 months or more | 136 | 0 |
Fair value, total | 7,545 | 9,259 |
Unrealized losses, total | $ 223 | $ 206 |
Unrealized loss position, number of positions | debtPosition | 338 | 359 |
U.S. Treasuries | ||
Available for Sale | ||
Fair value, less than 12 months | $ 41,605 | $ 34,579 |
Unrealized losses, less than 12 months | 37 | 1,235 |
Fair value, 12 months or more | 30,174 | 0 |
Unrealized losses, 12 months or more | 780 | 0 |
Fair value, total | 71,779 | 34,579 |
Unrealized losses, total | 817 | 1,235 |
U.S. Government agencies | ||
Available for Sale | ||
Fair value, less than 12 months | 46,851 | 78,676 |
Unrealized losses, less than 12 months | 895 | 4,830 |
Fair value, 12 months or more | 342,529 | 285,994 |
Unrealized losses, 12 months or more | 31,931 | 30,931 |
Fair value, total | 389,380 | 364,670 |
Unrealized losses, total | 32,826 | 35,761 |
Residential mortgage-backed securities | ||
Available for Sale | ||
Fair value, less than 12 months | 6,051 | 81,992 |
Unrealized losses, less than 12 months | 205 | 8,935 |
Fair value, 12 months or more | 80,823 | 11,258 |
Unrealized losses, 12 months or more | 11,297 | 2,526 |
Fair value, total | 86,874 | 93,250 |
Unrealized losses, total | 11,502 | 11,461 |
Commercial mortgage-backed securities | ||
Available for Sale | ||
Fair value, less than 12 months | 0 | 4,860 |
Unrealized losses, less than 12 months | 0 | 594 |
Fair value, 12 months or more | 11,982 | 7,210 |
Unrealized losses, 12 months or more | 1,762 | 1,148 |
Fair value, total | 11,982 | 12,070 |
Unrealized losses, total | 1,762 | 1,742 |
Asset-backed securities | ||
Available for Sale | ||
Fair value, less than 12 months | 1,371 | 1,169 |
Unrealized losses, less than 12 months | 2 | 7 |
Fair value, 12 months or more | 1,605 | 3,499 |
Unrealized losses, 12 months or more | 61 | 116 |
Fair value, total | 2,976 | 4,668 |
Unrealized losses, total | 63 | 123 |
Corporate investments | ||
Available for Sale | ||
Fair value, less than 12 months | 11,507 | 36,958 |
Unrealized losses, less than 12 months | 1,451 | 4,042 |
Fair value, 12 months or more | 32,328 | 7,076 |
Unrealized losses, 12 months or more | 7,673 | 925 |
Fair value, total | 43,835 | 44,034 |
Unrealized losses, total | 9,124 | 4,967 |
State and political subdivisions | ||
Available for Sale | ||
Fair value, less than 12 months | 21,851 | 36,655 |
Unrealized losses, less than 12 months | 541 | 1,781 |
Fair value, 12 months or more | 20,575 | 5,084 |
Unrealized losses, 12 months or more | 1,828 | 676 |
Fair value, total | 42,426 | 41,739 |
Unrealized losses, total | 2,369 | 2,457 |
Held to maturity: | ||
Fair value, less than 12 months | 3,795 | 9,259 |
Unrealized losses, less than 12 months | 87 | 206 |
Fair value, 12 months or more | 3,750 | 0 |
Unrealized Losses, 12 months or more | 136 | 0 |
Fair value, total | 7,545 | 9,259 |
Unrealized losses, total | $ 223 | $ 206 |
Investment Securities - Summa_4
Investment Securities - Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Amortized cost | |
One year or less | $ 264,104 |
After one through five years | 370,859 |
After five through ten years | 121,534 |
After ten years | 107,721 |
Allocated and single maturity date, total | 864,218 |
Fair value | |
One year or less | 261,766 |
After one through five years | 343,157 |
After five through ten years | 105,047 |
After ten years | 96,140 |
Allocated and single maturity date, total | 806,110 |
Amortized Cost | |
One year or less | 5,997 |
After one through five years | 44,173 |
After five through ten years | 6,308 |
After ten years | 1,640 |
Allocated and single maturity date, total | 58,118 |
Fair Value | |
One year or less | 5,978 |
After one through five years | 44,011 |
After five through ten years | 6,266 |
After ten years | 1,640 |
Allocated and single maturity date, total | $ 57,895 |
Investment Securities - Summa_5
Investment Securities - Summary of the Amortized Cost and Fair Value for Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Held to Maturity | ||
Securities held to maturity | $ 58,118 | $ 62,274 |
Pledged to secure public deposits and for other purposes required or permitted by law | ||
Available for Sale | ||
Amortized cost | 153,527 | 492,206 |
Fair value | 144,737 | 451,638 |
Held to Maturity | ||
Securities held to maturity | 475 | 35,734 |
Fair value | $ 469 | $ 35,562 |
Investment Securities - Schedul
Investment Securities - Schedule of securities by credit rating (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
State and political subdivisions held-to-maturity: | $ 58,118 |
S&P AA plus, AA, AA minus / Moody's Aa1, Aa2, Aa3 | |
Schedule of Held-to-maturity Securities [Line Items] | |
State and political subdivisions held-to-maturity: | 5,206 |
S&P A plus, A, A minus / Moody's A1, A2, A3 | |
Schedule of Held-to-maturity Securities [Line Items] | |
State and political subdivisions held-to-maturity: | 961 |
S&P BBB Plus, BBB, BBB minus / Moody's Baa, Ba, B | |
Schedule of Held-to-maturity Securities [Line Items] | |
State and political subdivisions held-to-maturity: | 496 |
Not Rated | |
Schedule of Held-to-maturity Securities [Line Items] | |
State and political subdivisions held-to-maturity: | $ 51,455 |
Loans - Summary of the Company'
Loans - Summary of the Company's Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 6,088,814 | $ 5,824,149 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 5,197,798 | 4,927,379 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,494,751 | 1,403,974 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 813,512 | 772,357 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 301,778 | 283,832 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 2,587,757 | 2,467,216 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 699,305 | 706,466 |
Commercial and industrial loans | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 813,512 | |
Commercial and industrial loans | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 2,587,757 | |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 92,885 | 80,770 |
Agricultural production and other loans to farmers | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 301,778 | |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 98,826 | $ 109,534 |
Loans - Summary of Non-accrual
Loans - Summary of Non-accrual Loans (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | $ 4,774 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 3,100 |
Real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 4,682 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 2,869 |
Real estate | Residential properties | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 2,287 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 1,170 |
Real estate | Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 0 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 0 |
Real estate | Farmland | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 670 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 59 |
Real estate | Other commercial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 1,725 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 1,640 |
Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 92 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 187 |
Agricultural production and other loans to farmers | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 0 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | 0 |
Consumer and other loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total Nonaccrual | 0 |
Nonaccrual with no Allowance for Credit Loss | 0 |
Past Due 90 days or more and Accruing | $ 44 |
Loans - Summary of the Credit Q
Loans - Summary of the Credit Quality of the Company's Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | $ 6,023,585 | $ 5,781,274 |
Enterprise Value | 1,527 | |
Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 2,913 | |
Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 9,015 | |
Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 1,527 | |
Real estate | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 2,913 | |
Real estate | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Residential properties | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 0 | |
Real estate | Residential properties | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Residential properties | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Construction and land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 0 | |
Real estate | Construction and land development | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Construction and land development | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Farmland | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 0 | |
Real estate | Farmland | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Farmland | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Real estate | Other commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 1,527 | |
Real estate | Other commercial | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 2,913 | |
Real estate | Other commercial | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Commercial and industrial loans | Commercial & industrial loans: | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 0 | |
Commercial and industrial loans | Commercial & industrial loans: | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Commercial and industrial loans | Commercial & industrial loans: | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 9,015 | |
Agricultural production and other loans to farmers | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 0 | |
Agricultural production and other loans to farmers | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Agricultural production and other loans to farmers | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Consumer and other loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Enterprise Value | 0 | |
Consumer and other loans | Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | 0 | |
Consumer and other loans | Accounts Receivable and Inventory | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Real Estate | $ 0 |
Loans - Summary of Past Due Loa
Loans - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 6,088,814 | $ 5,824,149 |
Past Due 90 days or more and Accruing | 3,100 | |
Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,832 | 18,149 |
Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 11,741 | 11,017 |
Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,091 | 7,132 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,071,982 | 5,806,000 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,197,798 | 4,927,379 |
Past Due 90 days or more and Accruing | 2,869 | |
Real estate | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 13,403 | 14,217 |
Real estate | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,590 | 8,459 |
Real estate | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,813 | 5,758 |
Real estate | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,184,395 | 4,913,162 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,494,751 | 1,403,974 |
Past Due 90 days or more and Accruing | 1,170 | |
Real estate | Residential properties | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,194 | 7,884 |
Real estate | Residential properties | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,108 | 5,869 |
Real estate | Residential properties | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,086 | 2,015 |
Real estate | Residential properties | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,486,557 | 1,396,090 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 813,512 | 772,357 |
Past Due 90 days or more and Accruing | 0 | |
Real estate | Construction and land development | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 526 | 2,104 |
Real estate | Construction and land development | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 526 | 526 |
Real estate | Construction and land development | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 1,578 |
Real estate | Construction and land development | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 812,986 | 770,253 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 301,778 | 283,832 |
Past Due 90 days or more and Accruing | 59 | |
Real estate | Farmland | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,307 | 1,957 |
Real estate | Farmland | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 569 | 566 |
Real estate | Farmland | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 738 | 1,391 |
Real estate | Farmland | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 300,471 | 281,875 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,587,757 | 2,467,216 |
Past Due 90 days or more and Accruing | 1,640 | |
Real estate | Other commercial | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,376 | 2,272 |
Real estate | Other commercial | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,387 | 1,498 |
Real estate | Other commercial | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,989 | 774 |
Real estate | Other commercial | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,584,381 | 2,464,944 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 699,305 | 706,466 |
Past Due 90 days or more and Accruing | 187 | |
Commercial and industrial loans | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,049 | 1,579 |
Commercial and industrial loans | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,815 | 902 |
Commercial and industrial loans | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 234 | 677 |
Commercial and industrial loans | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 696,256 | 704,887 |
Commercial and industrial loans | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 813,512 | |
Commercial and industrial loans | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,587,757 | |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 92,885 | 80,770 |
Past Due 90 days or more and Accruing | 0 | |
Agricultural production and other loans to farmers | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12 | 126 |
Agricultural production and other loans to farmers | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12 | 126 |
Agricultural production and other loans to farmers | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Agricultural production and other loans to farmers | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 92,873 | 80,644 |
Agricultural production and other loans to farmers | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 301,778 | |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 98,826 | 109,534 |
Past Due 90 days or more and Accruing | 44 | |
Consumer and other loans | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 368 | 2,227 |
Consumer and other loans | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 324 | 1,530 |
Consumer and other loans | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 44 | 697 |
Consumer and other loans | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 98,458 | $ 107,307 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses, adjustment for adoption of ASU | $ 65,229 | $ 64,403 | $ 42,875 | $ 43,353 | $ 44,238 | $ 45,000 |
Accrued interest receivable | $ 21,500 | |||||
Impact of ASU 2016-13 Adoption | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses, adjustment for adoption of ASU | $ 20,744 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of the Company's Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Total | $ 6,088,814 | $ 6,088,814 | $ 5,824,149 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
Total | 797 | $ 2,415 | 2,285 | $ 4,402 | |
Commercial and industrial loans | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Total | 699,305 | 699,305 | 706,466 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
Total | 29 | 921 | 317 | 979 | |
Commercial and industrial loans | Construction and land development | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 25,622 | 25,622 | |||
2022 | 65,628 | 65,628 | |||
2021 | 15,348 | 15,348 | |||
2020 | 5,632 | 5,632 | |||
2019 | 8,311 | 8,311 | |||
Prior | 8,063 | 8,063 | |||
Revolving Loans Amortized Cost Basis | 684,908 | 684,908 | |||
Total | 813,512 | 813,512 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 7 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Total | 7 | ||||
Commercial and industrial loans | Construction and land development | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 25,622 | 25,622 | |||
2022 | 65,499 | 65,499 | |||
2021 | 15,339 | 15,339 | |||
2020 | 4,629 | 4,629 | |||
2019 | 7,052 | 7,052 | |||
Prior | 8,051 | 8,051 | |||
Revolving Loans Amortized Cost Basis | 684,876 | 684,876 | |||
Total | 811,068 | 811,068 | |||
Commercial and industrial loans | Construction and land development | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 42 | 42 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 42 | 42 | |||
Commercial and industrial loans | Construction and land development | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 87 | 87 | |||
2021 | 9 | 9 | |||
2020 | 1,003 | 1,003 | |||
2019 | 1,259 | 1,259 | |||
Prior | 12 | 12 | |||
Revolving Loans Amortized Cost Basis | 32 | 32 | |||
Total | 2,402 | 2,402 | |||
Commercial and industrial loans | Other commercial | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 126,323 | 126,323 | |||
2022 | 519,661 | 519,661 | |||
2021 | 414,119 | 414,119 | |||
2020 | 257,127 | 257,127 | |||
2019 | 126,083 | 126,083 | |||
Prior | 232,999 | 232,999 | |||
Revolving Loans Amortized Cost Basis | 911,445 | 911,445 | |||
Total | 2,587,757 | 2,587,757 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 56 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Total | 56 | ||||
Commercial and industrial loans | Other commercial | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 126,216 | 126,216 | |||
2022 | 517,955 | 517,955 | |||
2021 | 411,413 | 411,413 | |||
2020 | 256,570 | 256,570 | |||
2019 | 123,526 | 123,526 | |||
Prior | 229,514 | 229,514 | |||
Revolving Loans Amortized Cost Basis | 910,237 | 910,237 | |||
Total | 2,575,431 | 2,575,431 | |||
Commercial and industrial loans | Other commercial | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Commercial and industrial loans | Other commercial | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 107 | 107 | |||
2022 | 1,706 | 1,706 | |||
2021 | 2,706 | 2,706 | |||
2020 | 557 | 557 | |||
2019 | 2,557 | 2,557 | |||
Prior | 3,485 | 3,485 | |||
Revolving Loans Amortized Cost Basis | 1,208 | 1,208 | |||
Total | 12,326 | 12,326 | |||
Commercial and industrial loans | Commercial & industrial loans: | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 63,350 | 63,350 | |||
2022 | 172,846 | 172,846 | |||
2021 | 100,711 | 100,711 | |||
2020 | 46,167 | 46,167 | |||
2019 | 30,621 | 30,621 | |||
Prior | 22,365 | 22,365 | |||
Revolving Loans Amortized Cost Basis | 263,245 | 263,245 | |||
Total | 699,305 | 699,305 | 706,466 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 0 | ||||
2022 | 62 | ||||
2021 | 52 | ||||
2020 | 2 | ||||
2019 | 16 | ||||
Prior | 7 | ||||
Revolving Loans Amortized Cost Basis | 178 | ||||
Total | 317 | ||||
Commercial and industrial loans | Commercial & industrial loans: | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 63,301 | 63,301 | |||
2022 | 172,135 | 172,135 | |||
2021 | 100,616 | 100,616 | |||
2020 | 45,688 | 45,688 | |||
2019 | 30,482 | 30,482 | |||
Prior | 11,796 | 11,796 | |||
Revolving Loans Amortized Cost Basis | 262,844 | 262,844 | |||
Total | 686,862 | 686,862 | |||
Commercial and industrial loans | Commercial & industrial loans: | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Commercial and industrial loans | Commercial & industrial loans: | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 49 | 49 | |||
2022 | 711 | 711 | |||
2021 | 95 | 95 | |||
2020 | 479 | 479 | |||
2019 | 139 | 139 | |||
Prior | 10,569 | 10,569 | |||
Revolving Loans Amortized Cost Basis | 401 | 401 | |||
Total | 12,443 | 12,443 | |||
Residential | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
Total | 5 | 530 | 178 | 780 | |
Residential | Residential properties | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 160,628 | 160,628 | |||
2022 | 446,748 | 446,748 | |||
2021 | 331,474 | 331,474 | |||
2020 | 139,839 | 139,839 | |||
2019 | 57,100 | 57,100 | |||
Prior | 99,287 | 99,287 | |||
Revolving Loans Amortized Cost Basis | 259,675 | 259,675 | |||
Total | 1,494,751 | 1,494,751 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 1 | ||||
2020 | 32 | ||||
2019 | 0 | ||||
Prior | 143 | ||||
Revolving Loans Amortized Cost Basis | 2 | ||||
Total | 178 | ||||
Residential | Residential properties | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 160,548 | 160,548 | |||
2022 | 445,706 | 445,706 | |||
2021 | 329,396 | 329,396 | |||
2020 | 137,374 | 137,374 | |||
2019 | 55,555 | 55,555 | |||
Prior | 94,057 | 94,057 | |||
Revolving Loans Amortized Cost Basis | 258,322 | 258,322 | |||
Total | 1,480,958 | 1,480,958 | |||
Residential | Residential properties | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Residential | Residential properties | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 80 | 80 | |||
2022 | 1,042 | 1,042 | |||
2021 | 2,078 | 2,078 | |||
2020 | 2,465 | 2,465 | |||
2019 | 1,545 | 1,545 | |||
Prior | 5,230 | 5,230 | |||
Revolving Loans Amortized Cost Basis | 1,353 | 1,353 | |||
Total | 13,793 | 13,793 | |||
Agricultural production and other loans to farmers | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Total | 92,885 | 92,885 | 80,770 | ||
Agricultural production and other loans to farmers | Farmland | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 21,245 | 21,245 | |||
2022 | 87,211 | 87,211 | |||
2021 | 33,738 | 33,738 | |||
2020 | 29,514 | 29,514 | |||
2019 | 15,579 | 15,579 | |||
Prior | 27,784 | 27,784 | |||
Revolving Loans Amortized Cost Basis | 86,707 | 86,707 | |||
Total | 301,778 | 301,778 | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 0 | ||||
2022 | 3 | ||||
2021 | 2 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 109 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Total | 114 | ||||
Agricultural production and other loans to farmers | Farmland | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 21,223 | 21,223 | |||
2022 | 87,058 | 87,058 | |||
2021 | 33,149 | 33,149 | |||
2020 | 29,396 | 29,396 | |||
2019 | 15,514 | 15,514 | |||
Prior | 26,373 | 26,373 | |||
Revolving Loans Amortized Cost Basis | 86,455 | 86,455 | |||
Total | 299,168 | 299,168 | |||
Agricultural production and other loans to farmers | Farmland | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Agricultural production and other loans to farmers | Farmland | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 22 | 22 | |||
2022 | 153 | 153 | |||
2021 | 589 | 589 | |||
2020 | 118 | 118 | |||
2019 | 65 | 65 | |||
Prior | 1,411 | 1,411 | |||
Revolving Loans Amortized Cost Basis | 252 | 252 | |||
Total | 2,610 | 2,610 | |||
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 9,352 | 9,352 | |||
2022 | 10,345 | 10,345 | |||
2021 | 5,088 | 5,088 | |||
2020 | 4,194 | 4,194 | |||
2019 | 1,454 | 1,454 | |||
Prior | 752 | 752 | |||
Revolving Loans Amortized Cost Basis | 61,700 | 61,700 | |||
Total | 92,885 | 92,885 | 80,770 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 0 | ||||
2022 | 5 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 8 | ||||
Total | 13 | ||||
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 9,352 | 9,352 | |||
2022 | 10,338 | 10,338 | |||
2021 | 5,088 | 5,088 | |||
2020 | 4,140 | 4,140 | |||
2019 | 1,443 | 1,443 | |||
Prior | 739 | 739 | |||
Revolving Loans Amortized Cost Basis | 61,700 | 61,700 | |||
Total | 92,800 | 92,800 | |||
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 7 | 7 | |||
2021 | 0 | 0 | |||
2020 | 54 | 54 | |||
2019 | 11 | 11 | |||
Prior | 13 | 13 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 85 | 85 | |||
Consumer and other loans | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Total | 98,826 | 98,826 | 109,534 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
Total | 657 | $ 961 | 1,613 | $ 2,203 | |
Consumer and other loans | Consumer & other loans: | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 24,688 | 24,688 | |||
2022 | 24,428 | 24,428 | |||
2021 | 7,638 | 7,638 | |||
2020 | 5,518 | 5,518 | |||
2019 | 1,099 | 1,099 | |||
Prior | 504 | 504 | |||
Revolving Loans Amortized Cost Basis | 34,951 | 34,951 | |||
Total | 98,826 | 98,826 | $ 109,534 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year, Writoff [Abstract] | |||||
2023 | 1,388 | ||||
2022 | 111 | ||||
2021 | 32 | ||||
2020 | 35 | ||||
2019 | 11 | ||||
Prior | 9 | ||||
Revolving Loans Amortized Cost Basis | 14 | ||||
Total | 1,600 | ||||
Consumer and other loans | Consumer & other loans: | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 24,685 | 24,685 | |||
2022 | 24,416 | 24,416 | |||
2021 | 7,623 | 7,623 | |||
2020 | 5,517 | 5,517 | |||
2019 | 1,099 | 1,099 | |||
Prior | 493 | 493 | |||
Revolving Loans Amortized Cost Basis | 34,912 | 34,912 | |||
Total | 98,745 | 98,745 | |||
Consumer and other loans | Consumer & other loans: | Special Mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Total | 0 | 0 | |||
Consumer and other loans | Consumer & other loans: | Classified | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 3 | 3 | |||
2022 | 12 | 12 | |||
2021 | 15 | 15 | |||
2020 | 1 | 1 | |||
2019 | 0 | 0 | |||
Prior | 11 | 11 | |||
Revolving Loans Amortized Cost Basis | 39 | 39 | |||
Total | $ 81 | $ 81 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Schedule of the Credit Quality of the Company's Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 6,088,814 | $ 5,824,149 |
Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,779,734 | |
Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 303 | |
Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 43,905 | |
Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 207 | |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,197,798 | 4,927,379 |
Real estate | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,896,968 | |
Real estate | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 303 | |
Real estate | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 29,901 | |
Real estate | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 207 | |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,494,751 | 1,403,974 |
Real estate | Residential properties | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,391,039 | |
Real estate | Residential properties | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Real estate | Residential properties | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,852 | |
Real estate | Residential properties | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 83 | |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 813,512 | 772,357 |
Real estate | Construction and land development | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 768,699 | |
Real estate | Construction and land development | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 303 | |
Real estate | Construction and land development | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,355 | |
Real estate | Construction and land development | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 301,778 | 283,832 |
Real estate | Farmland | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 280,522 | |
Real estate | Farmland | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Real estate | Farmland | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,310 | |
Real estate | Farmland | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,587,757 | 2,467,216 |
Real estate | Other commercial | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,456,708 | |
Real estate | Other commercial | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Real estate | Other commercial | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,384 | |
Real estate | Other commercial | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 124 | |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 699,305 | 706,466 |
Commercial and industrial loans | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 813,512 | |
Commercial and industrial loans | Construction and land development | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 811,068 | |
Commercial and industrial loans | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,587,757 | |
Commercial and industrial loans | Other commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,575,431 | |
Commercial and industrial loans | Commercial & industrial loans: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 699,305 | 706,466 |
Commercial and industrial loans | Commercial & industrial loans: | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 693,963 | |
Commercial and industrial loans | Commercial & industrial loans: | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial loans | Commercial & industrial loans: | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,503 | |
Commercial and industrial loans | Commercial & industrial loans: | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial loans | Commercial & industrial loans: | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 686,862 | |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 92,885 | 80,770 |
Agricultural production and other loans to farmers | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 301,778 | |
Agricultural production and other loans to farmers | Farmland | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 299,168 | |
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 92,885 | 80,770 |
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 80,524 | |
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 246 | |
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 92,800 | |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 98,826 | 109,534 |
Consumer and other loans | Consumer & other loans: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 98,826 | 109,534 |
Consumer and other loans | Consumer & other loans: | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 108,279 | |
Consumer and other loans | Consumer & other loans: | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Consumer and other loans | Consumer & other loans: | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,255 | |
Consumer and other loans | Consumer & other loans: | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 0 | |
Consumer and other loans | Consumer & other loans: | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 98,745 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 64,403 | $ 44,238 | $ 42,875 | $ 45,000 |
Provision for credit losses | 786 | 234 | 2,206 | 451 |
Recoveries on loans | 837 | 1,296 | 1,689 | 2,304 |
Loans charged off | (797) | (2,415) | (2,285) | (4,402) |
Ending balance | 65,229 | 43,353 | 65,229 | 43,353 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated | 227 | 139 | 227 | 139 |
Collectively evaluated | 65,002 | 43,214 | 65,002 | 43,214 |
Ending balance | 65,229 | 43,353 | 65,229 | 43,353 |
Impact of ASU 2016-13 Adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 20,744 | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Commercial and industrial loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,404 | 6,052 | 4,750 | 6,556 |
Provision for credit losses | (80) | (1,063) | (392) | (1,531) |
Recoveries on loans | 115 | 58 | 203 | 80 |
Loans charged off | (29) | (921) | (317) | (979) |
Ending balance | 6,410 | 4,126 | 6,410 | 4,126 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated | 227 | 132 | 227 | 132 |
Collectively evaluated | 6,183 | 3,994 | 6,183 | 3,994 |
Ending balance | 6,410 | 4,126 | 6,410 | 4,126 |
Commercial and industrial loans | Construction and land development | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Loans charged off | (7) | |||
Commercial and industrial loans | Impact of ASU 2016-13 Adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,166 | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 40,494 | 26,912 | 26,701 | 27,133 |
Provision for credit losses | (175) | 635 | 804 | 710 |
Recoveries on loans | 97 | 413 | 212 | 554 |
Loans charged off | (106) | (3) | (177) | (440) |
Ending balance | 40,310 | 27,957 | 40,310 | 27,957 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated | 0 | 0 | 0 | 0 |
Collectively evaluated | 40,310 | 27,957 | 40,310 | 27,957 |
Ending balance | 40,310 | 27,957 | 40,310 | 27,957 |
Commercial real estate | Impact of ASU 2016-13 Adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 12,770 | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 16,420 | 9,603 | 9,958 | 9,488 |
Provision for credit losses | 937 | 146 | 1,050 | 457 |
Recoveries on loans | 67 | 55 | 125 | 109 |
Loans charged off | (5) | (530) | (178) | (780) |
Ending balance | 17,419 | 9,274 | 17,419 | 9,274 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated | 0 | 7 | 0 | 7 |
Collectively evaluated | 17,419 | 9,267 | 17,419 | 9,267 |
Ending balance | 17,419 | 9,274 | 17,419 | 9,274 |
Residential | Impact of ASU 2016-13 Adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,464 | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Consumer and other loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,085 | 1,671 | 1,466 | 1,823 |
Provision for credit losses | 104 | 516 | 744 | 815 |
Recoveries on loans | 558 | 770 | 1,149 | 1,561 |
Loans charged off | (657) | (961) | (1,613) | (2,203) |
Ending balance | 1,090 | 1,996 | 1,090 | 1,996 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated | 0 | 0 | 0 | 0 |
Collectively evaluated | 1,090 | 1,996 | 1,090 | 1,996 |
Ending balance | $ 1,090 | $ 1,996 | 1,090 | $ 1,996 |
Consumer and other loans | Impact of ASU 2016-13 Adoption | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (656) | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Real estate | Construction and land development | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 26,701 | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Real estate | Impact of ASU 2016-13 Adoption | Construction and land development | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 12,770 | |||
Period End Allowance Balance Allocated To: | ||||
Ending balance | ||||
Agricultural production and other loans to farmers | Agricultural production & other loans to farmers: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Loans charged off | $ (13) |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Requirements (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
BancPlus Corporation | ||
Actual | ||
Tier 1 Capital to Average Assets | $ 733,707 | $ 721,001 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.1000 | 0.1054 |
Minimum Requirement to be Well Capitalized | ||
Tier 1 Capital to Average Assets | $ 660,411 | $ 615,566 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.0900 | 0.0900 |
Subsidiaries | ||
Actual | ||
Tier 1 Capital to Average Assets | $ 682,869 | $ 636,007 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.0932 | 0.0931 |
Minimum Requirement to be Well Capitalized | ||
Tier 1 Capital to Average Assets | $ 659,762 | $ 614,973 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.0900 | 0.0900 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 806,110 | $ 623,920 |
Minimum | Marketability and comparability discounts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input (as a percent) | 0.05 | |
Maximum | Marketability and comparability discounts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input (as a percent) | 0.15 | |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 806,110 | 623,920 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 196,364 | 34,579 |
U.S. Treasuries | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Treasuries | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 196,364 | 34,579 |
U.S. Treasuries | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 411,387 | 378,736 |
U.S. Government agency obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government agency obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 411,387 | 378,736 |
U.S. Government agency obligations | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 87,519 | 94,132 |
Residential mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 87,519 | 94,132 |
Residential mortgage-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 11,982 | 12,070 |
Commercial mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 11,982 | 12,070 |
Commercial mortgage-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 7,561 | 10,220 |
Asset-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Asset-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 7,561 | 10,220 |
Asset-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 43,835 | 46,033 |
Corporate investments | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate investments | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 43,835 | 46,033 |
Corporate investments | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
State and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 47,462 | 48,150 |
State and political subdivisions | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
State and political subdivisions | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 47,462 | 48,150 |
State and political subdivisions | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value - Schedule of Asse_2
Fair Value - Schedule of Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: | $ 1,300 | |
Impaired loans, net of allowance for loan losses: | $ 26,071 | |
Other real estate owned: | 3,722 | 4,231 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: | 1,300 | |
Impaired loans, net of allowance for loan losses: | 26,071 | |
Other real estate owned: | 3,722 | 4,231 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: | 0 | |
Impaired loans, net of allowance for loan losses: | 0 | |
Other real estate owned: | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: | 0 | |
Impaired loans, net of allowance for loan losses: | 0 | |
Other real estate owned: | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: | 1,300 | |
Impaired loans, net of allowance for loan losses: | 26,071 | |
Other real estate owned: | $ 3,722 | $ 4,231 |
Fair Value - Qualitative Inform
Fair Value - Qualitative Information About Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: | $ 1,300 | |
Other real estate owned: | $ 3,722 | $ 4,231 |
Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: (as a percentage) | 6% | 6% |
Other real estate owned, weighted average measurement input (as a percentage) | 6% | 6% |
Minimum | Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: (as a percentage) | 5% | 5% |
Other real estate owned, measurement input (as a percentage) | 0.05 | 0.05 |
Maximum | Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans with credit losses, net of allowance for credit losses: (as a percentage) | 10% | 10% |
Other real estate owned, measurement input (as a percentage) | 0.10 | 0.10 |
Fair Value - Summary of Estimat
Fair Value - Summary of Estimated Fair Values of the Company’s Financial Instruments Not Previously Disclosed (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Level 2 inputs: | ||
Securities held to maturity | $ 58,118 | $ 62,274 |
Accrued interest receivable | 25,454 | 23,156 |
Carrying Value | Level 1 | ||
Level 1 inputs: | ||
Cash and cash equivalents | 191,214 | 137,895 |
Carrying Value | Level 2 | ||
Level 2 inputs: | ||
Securities held to maturity | 58,118 | 62,274 |
FHLB stock | 26,011 | 19,690 |
Accrued interest receivable | 25,454 | 23,156 |
Level 2 inputs: | ||
Deposits | 6,108,309 | 5,824,904 |
FHLB and other borrowings | 540,065 | 318,084 |
Subordinated debentures | 133,579 | 133,478 |
Accrued interest payable | 5,924 | 2,334 |
Carrying Value | Level 3 | ||
Level 3 inputs: | ||
Loans held for sale | 13,176 | 5,373 |
Loans, net | 6,023,585 | 5,781,274 |
Fair Value | Level 1 | ||
Level 1 inputs: | ||
Cash and cash equivalents | 191,214 | 137,895 |
Fair Value | Level 2 | ||
Level 2 inputs: | ||
Securities held to maturity | 57,895 | 62,068 |
FHLB stock | 26,011 | 19,690 |
Accrued interest receivable | 25,454 | 23,156 |
Level 2 inputs: | ||
Deposits | 6,091,601 | 5,289,138 |
FHLB and other borrowings | 536,993 | 318,079 |
Subordinated debentures | 138,214 | 138,780 |
Accrued interest payable | 5,924 | 2,334 |
Fair Value | Level 3 | ||
Level 3 inputs: | ||
Loans held for sale | 13,176 | 5,373 |
Loans, net | $ 5,789,083 | $ 5,601,070 |
Subordinated Debentures and T_3
Subordinated Debentures and Trust Preferred Securities - Narrative (Details) - USD ($) | Jun. 04, 2025 | Mar. 01, 2022 | Jun. 04, 2020 | Jun. 30, 2023 | Dec. 31, 2022 |
Subordinated Debt | The Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued and sold | $ 60,000,000 | ||||
Issuance costs | $ 1,400,000 | ||||
Unamortized debt issuance costs | $ 999,000 | $ 1,100,000 | |||
Period to defer payment of interest (not exceeding) | 5 years | ||||
Remaining purchase discount | 3,600,000 | ||||
Subordinated Debt | The Notes | Forecast | |||||
Debt Instrument [Line Items] | |||||
Multiples allowed to be redeemed | $ 1,000 | ||||
Redemption price (as a percent) | 100% | ||||
Subordinated Debt | The Notes | From and including June 4, 2020, to but excluding June 15, 2025 or early redemption date | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate | 6% | ||||
Subordinated Debt | The Notes | From and including June 15, 2025, to but excluding the maturity date or early redemption date | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 5.86% | ||||
Junior Subordinated Debt | 5.50% Fixed to Floating Rate Subordinated Notes Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate | 5.50% | ||||
Junior Subordinated Debt | 5.50% Fixed to Floating Rate Subordinated Notes Due 2030 | First Trust Corporation ("FTC") Merger Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate obligation assumed in conjunction with FTC merger | $ 21,000,000 | ||||
Remaining purchase premium | $ 536,000 | ||||
Junior Subordinated Debt | 5.50% Fixed to Floating Rate Subordinated Notes Due 2030 | SOFR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 5.27% |
Subordinated Debentures and T_4
Subordinated Debentures and Trust Preferred Securities - Summary of Debentures Payable to Statutory Trusts (Details) - Subordinated Debt - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debentures payable | $ 56,703 | $ 56,703 |
First Bancshares of Baton Rouge Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Debentures payable | 4,124 | 4,124 |
State Capital Statutory Trust IV | ||
Debt Instrument [Line Items] | ||
Debentures payable | 5,155 | 5,155 |
BancPlus Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Debentures payable | 20,619 | 20,619 |
BancPlus Statutory Trust III | ||
Debt Instrument [Line Items] | ||
Debentures payable | 20,619 | 20,619 |
State Capital Master Trust | ||
Debt Instrument [Line Items] | ||
Debentures payable | $ 6,186 | $ 6,186 |
SOFR | First Bancshares of Baton Rouge Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
SOFR | State Capital Statutory Trust IV | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.99% | |
SOFR | BancPlus Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
SOFR | BancPlus Statutory Trust III | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.35% | |
SOFR | State Capital Master Trust | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.46% |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) hour $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Required annual hours of service for participation in ESOP (in hours) | hour | 1,000 | |
Employers matching contribution, annual vesting percentage (as a percentage) | 3% | |
Employer matching contribution, percent of match (as a percentage) | 50% | |
Employer matching contribution, percent of employees' gross pay (as a percentage) | 2% | |
ESOP owned shares (in shares) | shares | 1,452,950 | 1,452,950 |
Redeemable common stock owned by the ESOP | $ 89,356 | $ 96,984 |
Employee Stock Ownership Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Redeemable common stock owned by the ESOP | $ 89,400 | $ 97,000 |
Temporary equity (in USD per share) | $ / shares | $ 61.50 | $ 66.75 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 22, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0 | |||
Dividends paid initial two years | 0% | |||
Period of no dividends paid (in years) | 2 years | |||
Review lookback period after year 10, beginning of period | 2 years | |||
Review lookback period after year 10, end of period | 10 years | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 40,000,000 | |
Minimum | ||||
Class of Stock [Line Items] | ||||
Dividend rate after initial two years | 0.50% | |||
Maximum | ||||
Class of Stock [Line Items] | ||||
Dividend rate after initial two years | 2% | |||
Noncumulative Preferred Stock | Private Placement | ||||
Class of Stock [Line Items] | ||||
Shares issued in sale (in shares) | 250,000 | |||
Aggregate purchase price of shares | $ 250 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - Restricted stock awards - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 2.3 | $ 1.8 |
Forfeited (in shares) | 3,186 | 0 |
Unrecognized compensation cost related to nonvested RSAs | $ 11.7 | |
Unrecognized compensation cost related to nonvested RSAs, period for recognition | 3 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 5 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Number of Shares | ||
Beginning of period (in shares) | 184,284 | 144,572 |
Granted (in shares) | 93,209 | 95,768 |
Vested (in shares) | (68,204) | (54,537) |
Forfeited (in shares) | (3,186) | 0 |
End of period (in shares) | 206,103 | 185,803 |
Weighted Average Grant Date Fair Value | ||
Beginning of period (in dollars per share) | $ 59.36 | $ 51.56 |
Granted (in dollars per share) | 66.66 | 68.25 |
Vested (in dollars per share) | 58.32 | 53.34 |
Forfeited (in dollars per share) | 61.13 | 0 |
Ending of period (in dollars per share) | $ 62.98 | $ 59.64 |
Contingencies (Details)
Contingencies (Details) | Mar. 20, 2019 defendant |
Commitments and Contingencies Disclosure [Abstract] | |
Number of former employees named as defendants | 3 |
Number of current employees named as defendants | 1 |