Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37700 | |
Entity Registrant Name | NICOLET BANKSHARES, INC | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 47-0871001 | |
Entity Address, Address Line One | 111 North Washington Street | |
Entity Address, City or Town | Green Bay, | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 54301 | |
City Area Code | (920) | |
Local Phone Number | 430-1400 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | NIC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,761,128 | |
Entity Central Index Key | 0001174850 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 109,414 | $ 121,211 | |
Interest-earning deposits | 436,466 | 33,512 | |
Cash and cash equivalents | 545,880 | [1] | 154,723 |
Certificates of deposit in other banks | 7,598 | 12,518 | |
Securities available for sale (“AFS”), at fair value | 793,826 | 917,618 | |
Securities held to maturity (“HTM”), at amortized cost | 0 | 679,128 | |
Other investments | 58,367 | 65,286 | |
Loans held for sale | 6,500 | 1,482 | |
Loans | 6,239,257 | 6,180,499 | |
Allowance for credit losses - loans (“ACL-Loans”) | (63,160) | (61,829) | |
Loans, net | 6,176,097 | 6,118,670 | |
Premises and equipment, net | 117,744 | 108,956 | |
Bank owned life insurance (“BOLI”) | 168,223 | 165,137 | |
Goodwill and other intangibles, net | 396,208 | 402,438 | |
Accrued interest receivable and other assets | 145,719 | 138,013 | |
Total assets | 8,416,162 | 8,763,969 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 2,020,074 | 2,361,816 | |
Interest-bearing deposits | 5,162,314 | 4,817,105 | |
Total deposits | 7,182,388 | 7,178,921 | |
Short-term borrowings | 0 | 317,000 | |
Total long-term borrowings | 197,754 | 225,342 | |
Accrued interest payable and other liabilities | 61,559 | 70,177 | |
Total liabilities | 7,441,701 | 7,791,440 | |
Stockholders’ Equity: | |||
Common stock | 147 | 147 | |
Additional paid-in capital | 626,348 | 621,988 | |
Retained earnings | 431,317 | 407,864 | |
Accumulated other comprehensive income (loss) | (83,351) | (57,470) | |
Total stockholders’ equity | 974,461 | 972,529 | |
Total liabilities and stockholders’ equity | $ 8,416,162 | $ 8,763,969 | |
Preferred shares authorized (no par value) | 10,000,000 | 10,000,000 | |
Preferred shares issued and outstanding | 0 | 0 | |
Common shares authorized (par value $0.01 per share) | 30,000,000 | 30,000,000 | |
Common shares outstanding | 14,757,565 | 14,690,614 | |
Common shares issued | 14,818,155 | 14,764,104 | |
[1]There was no restricted cash in cash and cash equivalents at either September 30, 2023 or September 30, 2022. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common shares authorized, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans, including loan fees | $ 87,657 | $ 63,060 | $ 250,890 | $ 167,313 |
Investment securities: | ||||
Taxable | 4,351 | 5,350 | 13,445 | 15,612 |
Tax-exempt | 1,424 | 1,181 | 4,637 | 2,503 |
Other interest income | 6,452 | 1,127 | 10,345 | 2,734 |
Total interest income | 99,884 | 70,718 | 279,317 | 188,162 |
Interest expense: | ||||
Deposits | 34,964 | 4,638 | 89,241 | 9,240 |
Short-term borrowings | 474 | 594 | 4,794 | 622 |
Long-term borrowings | 2,972 | 2,496 | 8,048 | 6,431 |
Total interest expense | 38,410 | 7,728 | 102,083 | 16,293 |
Net interest income | 61,474 | 62,990 | 177,234 | 171,869 |
Provision for credit losses | 450 | 8,600 | 3,990 | 9,650 |
Net interest income after provision for credit losses | 61,024 | 54,390 | 173,244 | 162,219 |
Noninterest income: | ||||
Mortgage income, net | 2,020 | 1,728 | 5,308 | 7,186 |
BOLI income | 1,090 | 966 | 3,363 | 2,667 |
Deferred compensation plan asset market valuations | (457) | (571) | 988 | (2,354) |
LSR income, net | 1,108 | (517) | 3,398 | (1,042) |
Asset gains (losses), net | 31 | (46) | (38,755) | 2,870 |
Other income | 1,879 | 1,830 | 5,611 | 4,902 |
Total noninterest income | 16,541 | 13,000 | 11,538 | 43,074 |
Noninterest expense: | ||||
Personnel | 23,944 | 24,136 | 72,172 | 65,008 |
Occupancy, equipment and office | 9,027 | 7,641 | 26,655 | 21,476 |
Business development and marketing | 1,869 | 2,281 | 5,936 | 6,169 |
Data processing | 4,643 | 3,664 | 12,849 | 10,647 |
Intangibles amortization | 1,986 | 1,628 | 6,230 | 4,399 |
FDIC assessments | 1,500 | 480 | 3,049 | 1,440 |
Merger-related expense | 0 | 519 | 189 | 1,172 |
Other expense | 2,769 | 2,218 | 8,490 | 6,344 |
Total noninterest expense | 45,738 | 42,567 | 135,570 | 116,655 |
Income before income tax expense | 31,827 | 24,823 | 49,212 | 88,638 |
Income tax expense | 14,669 | 6,313 | 18,357 | 21,979 |
Net income | $ 17,158 | $ 18,510 | $ 30,855 | $ 66,659 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.16 | $ 1.33 | $ 2.10 | $ 4.88 |
Diluted (in dollars per share) | $ 1.14 | $ 1.29 | $ 2.05 | $ 4.72 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 14,740,319 | 13,890,066 | 14,715,588 | 13,647,973 |
Diluted (in shares) | 15,099,622 | 14,310,275 | 15,044,259 | 14,126,772 |
Wealth management fee income | ||||
Noninterest income: | ||||
Fees and commissions | $ 6,057 | $ 5,009 | $ 17,439 | $ 15,700 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Fees and commissions | 1,492 | 1,589 | 4,501 | 4,602 |
Card interchange income | ||||
Noninterest income: | ||||
Fees and commissions | $ 3,321 | $ 3,012 | $ 9,685 | $ 8,543 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 17,158 | $ 18,510 | $ 30,855 | $ 66,659 |
Unrealized gains (losses) on securities AFS: | ||||
Net unrealized holding gains (losses) | (21,645) | (26,162) | (12,244) | (89,630) |
Net realized (gains) losses included in income | (11) | 0 | 337 | (15) |
Reclassification adjustment for securities transferred from held to maturity to available for sale | 0 | 0 | (20,434) | 0 |
Income tax (expense) benefit | 3,574 | 7,064 | 6,460 | 24,204 |
Total other comprehensive income (loss) | (18,082) | (19,098) | (25,881) | (65,441) |
Comprehensive income (loss) | $ (924) | $ (588) | $ 4,974 | $ 1,218 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2021 | $ 891,891 | $ 140 | $ 575,045 | $ 313,604 | $ 3,102 |
Comprehensive income: | |||||
Net income | 66,659 | 66,659 | |||
Other comprehensive income (loss) | (65,441) | (65,441) | |||
Issuance of common stock in acquisition | 98,149 | 13 | 98,136 | ||
Stock-based compensation expense | 5,282 | 5,282 | |||
Exercise of stock options, net | 2,078 | 1 | 2,077 | ||
Issuance of common stock | 557 | 557 | |||
Purchase and retirement of common stock | (60,712) | (7) | (60,705) | ||
Ending Balance at Sep. 30, 2022 | 938,463 | 147 | 620,392 | 380,263 | (62,339) |
Beginning Balance at Jun. 30, 2022 | 839,387 | 134 | 520,741 | 361,753 | (43,241) |
Comprehensive income: | |||||
Net income | 18,510 | 18,510 | |||
Other comprehensive income (loss) | (19,098) | (19,098) | |||
Issuance of common stock in acquisition | 98,149 | 13 | 98,136 | ||
Stock-based compensation expense | 1,329 | 1,329 | |||
Exercise of stock options, net | 1 | 1 | |||
Issuance of common stock | 185 | 185 | |||
Ending Balance at Sep. 30, 2022 | 938,463 | 147 | 620,392 | 380,263 | (62,339) |
Beginning Balance at Dec. 31, 2022 | 972,529 | 147 | 621,988 | 407,864 | (57,470) |
Comprehensive income: | |||||
Net income | 30,855 | 30,855 | |||
Other comprehensive income (loss) | (25,881) | (25,881) | |||
Stock-based compensation expense | 4,829 | 4,829 | |||
Cash dividends on common stock | (7,402) | (7,402) | |||
Exercise of stock options, net | 454 | 1 | 453 | ||
Issuance of common stock | 598 | 598 | |||
Purchase and retirement of common stock | (1,521) | (1) | (1,520) | ||
Ending Balance at Sep. 30, 2023 | 974,461 | 147 | 626,348 | 431,317 | (83,351) |
Beginning Balance at Jun. 30, 2023 | 977,638 | 147 | 624,897 | 417,863 | (65,269) |
Comprehensive income: | |||||
Net income | 17,158 | 17,158 | |||
Other comprehensive income (loss) | (18,082) | (18,082) | |||
Stock-based compensation expense | 1,399 | 1,399 | |||
Cash dividends on common stock | (3,704) | (3,704) | |||
Exercise of stock options, net | (146) | (146) | |||
Issuance of common stock | 198 | 198 | |||
Ending Balance at Sep. 30, 2023 | $ 974,461 | $ 147 | $ 626,348 | $ 431,317 | $ (83,351) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (in dollars per share) | $ 0.25 | $ 0.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 30,855 | $ 66,659 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization, and accretion | 13,163 | 16,994 | |
Provision for credit losses | 3,990 | 9,650 | |
Increase in cash surrender value of life insurance | (3,386) | (2,551) | |
Stock-based compensation expense | 4,829 | 5,282 | |
Asset (gains) losses, net | 38,755 | (2,870) | |
Gain on sale of loans held for sale, net | (3,230) | (4,520) | |
Net change due to: | |||
Proceeds from sale of loans held for sale | 108,991 | 188,093 | |
Origination of loans held for sale | (111,883) | (182,962) | |
Accrued interest receivable and other assets | (3,263) | 7,719 | |
Accrued interest payable and other liabilities | (8,618) | (14,145) | |
Net cash provided by (used in) operating activities | 70,203 | 87,349 | |
Cash Flows From Investing Activities: | |||
Net (increase) decrease in loans | (55,042) | (537,001) | |
Net (increase) decrease in certificates of deposit in other banks | 4,920 | 8,419 | |
Purchases of securities AFS | (20,220) | (8,623) | |
Purchases of securities HTM | 0 | (56,479) | |
Proceeds from sales of securities AFS | 28,992 | 23,984 | |
Proceeds from sales of securities HTM | 460,051 | 0 | |
Proceeds from calls and maturities of securities AFS | 256,151 | 70,781 | |
Proceeds from calls and maturities of securities HTM | 2,916 | 21,378 | |
Purchases of other investments | (12,934) | (30,327) | |
Proceeds from sales of other investments | 18,939 | 4,014 | |
Proceeds from redemption of BOLI | 312 | 578 | |
Net (increase) decrease in premises and equipment | (15,104) | (7,965) | |
Net (increase) decrease in other real estate and other assets | 1,211 | 9,785 | |
Net cash (paid) received in branch sale | 0 | 147,833 | |
Net cash (paid) received in business combination | 0 | (28,221) | |
Net cash provided by (used in) investing activities | 670,192 | (381,844) | |
Cash Flows From Financing Activities: | |||
Net increase (decrease) in deposits | 3,633 | 68,428 | |
Net increase (decrease) in short-term borrowings | 147,134 | ||
Net increase (decrease) in short-term borrowings | (317,000) | ||
Repayments of long-term borrowings | (28,000) | (20,000) | |
Purchase and retirement of common stock | (1,521) | (60,712) | |
Cash dividends paid on common stock | (7,402) | 0 | |
Proceeds from issuance of common stock | 598 | 557 | |
Proceeds from exercise of stock options | 454 | 2,078 | |
Net cash provided by (used in) financing activities | (349,238) | 137,485 | |
Net increase (decrease) in cash and cash equivalents | 391,157 | (157,010) | |
Cash and cash equivalents: | |||
Beginning | 154,723 | 595,292 | |
Ending | [1] | 545,880 | 438,282 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 99,486 | 19,785 | |
Cash paid for taxes | 22,920 | 25,660 | |
Transfer of securities from HTM to AFS | 177,727 | 0 | |
Transfer of loans and bank premises to other real estate owned | 873 | 432 | |
Capitalized mortgage servicing rights | 1,104 | 2,127 | |
Acquisitions: | |||
Fair value of assets acquired | 0 | 1,121,000 | |
Fair value of liabilities assumed | 0 | 1,034,000 | |
Net assets acquired | $ 0 | $ 87,000 | |
[1]There was no restricted cash in cash and cash equivalents at either September 30, 2023 or September 30, 2022. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Cash Flows [Abstract] | ||
Restricted cash and cash equivalents | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, as of and for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. These estimates are based on management’s knowledge of historical experience, current information, and other factors deemed to be relevant; accordingly, as this information changes, actual results could differ from those estimates. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Nicolet considers accounting estimates to be critical to reported financial results if the accounting estimate requires management to make assumptions about matters that are highly uncertain and different estimates that are reasonably likely to occur from period to period, could have a material impact on the financial statements. The accounting estimates we consider to be critical include business combinations and the valuation of loans acquired, the determination of the allowance for credit losses, and income taxes. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Recent Accounting Pronouncements Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures . This ASU eliminated the accounting guidance for TDRs by creditors and enhanced the disclosure requirements for loan modifications to borrowers experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements; however, it resulted in new disclosures. See Note 6 for the new disclosures. Future Accounting Pronouncements In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. This ASU also requires specific disclosures of investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The updated guidance is effective for fiscal years beginning after December 15, 2023. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of the original guidance from December 31, 2022 to December 31, 2024. The Company continues to work through the cessation of LIBOR, including the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the reference rate reform transition guidance, as applicable, and does not expect such adoption to have a material impact on its consolidated financial statements or financial disclosures. Reclassifications Certain amounts in the 2022 consolidated financial statements have been reclassified to conform to the 2023 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition Charter Bankshares, Inc. (“Charter”) : On August 26, 2022, Nicolet completed its merger with Charter, pursuant to the Agreement and Plan of Merger dated March 29, 2022, at which time Charter merged with and into Nicolet, and Charter Bank, the wholly owned bank subsidiary of Charter, was merged with and into Nicolet National Bank (the “Bank”), the wholly owned bank subsidiary of Nicolet. In the merger, Charter stockholders received 15.458 shares of Nicolet common stock and $475 in cash for each share of Charter owned. As a result, Nicolet issued approximately 1.26 million shares of Nicolet common stock for stock consideration of $98 million and cash consideration of $39 million, for a total purchase price of $137 million. With the Charter merger, Nicolet expanded to Western Wisconsin and Minnesota. A summary of the assets acquired and liabilities assumed in the Charter transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from Charter Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 10 $ — $ 10 Investment securities 218 — 218 Loans 848 (21) 827 ACL-Loans (9) 7 (2) Premises and equipment 9 1 10 BOLI 29 — 29 Core deposit intangible — 19 19 Other assets 5 5 10 Total assets $ 1,110 $ 11 $ 1,121 Liabilities Assumed: Deposits $ 869 $ 1 $ 870 Borrowings 161 — 161 Other liabilities 3 — 3 Total liabilities $ 1,033 $ 1 $ 1,034 Net assets acquired $ 87 Purchase Price: Nicolet common stock issued (in shares) 1,262,360 Value of Nicolet common stock consideration $ 98 Cash consideration paid 39 Total purchase price $ 137 Goodwill $ 50 The Company purchased loans through the acquisition of Charter for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination (purchased credit deteriorated loans or “PCD” loans). The carrying amount of these loans at acquisition was as follows. (In thousands) August 26, 2022 Purchase price of PCD loans at acquisition $ 24,031 Allowance for credit losses on PCD loans at acquisition 1,709 Par value of PCD acquired loans at acquisition $ 25,740 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options and unvested restricted stock), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Net income $ 17,158 $ 18,510 $ 30,855 $ 66,659 Weighted average common shares outstanding 14,740 13,890 14,716 13,648 Effect of dilutive common stock awards 360 420 328 479 Diluted weighted average common shares outstanding 15,100 14,310 15,044 14,127 Basic earnings per common share* $ 1.16 $ 1.33 $ 2.10 $ 4.88 Diluted earnings per common share* $ 1.14 $ 1.29 $ 2.05 $ 4.72 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company may grant stock options and restricted stock under its stock-based compensation plans to certain officers, employees and directors. These plans are administered by a committee of the Board of Directors, and at September 30, 2023, approximately 0.7 million shares were available for grant under these stock-based compensation plans. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Nine Months Ended September 30, 2023 2022 Dividend yield 1.6 % — % Expected volatility 30 % 30 % Risk-free interest rate 3.74 % 3.03 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 20.94 $ 30.99 A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Weighted Average Aggregate Outstanding - December 31, 2022 1,853,064 $ 59.79 Granted 7,000 64.36 Exercise of stock options * (115,179) 40.02 Forfeited (25,000) 84.98 Outstanding - September 30, 2023 1,719,885 $ 60.76 5.3 $ 20,354 Exercisable - September 30, 2023 1,260,942 $ 55.09 4.5 $ 20,217 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the nine months ended September 30, 2023, 54,517 such shares were withheld by the Company. Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. The intrinsic value of options exercised for the nine months ended September 30, 2023 and 2022 was approximately $3.7 million and $3.3 million, respectively. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Restricted Shares Outstanding - December 31, 2022 $ 76.49 73,490 Granted 55.65 11,674 Vested 66.40 (24,574) Outstanding - September 30, 2023 $ 76.57 60,590 The Company recognized approximately $4.2 million and $4.6 million of stock-based compensation expense (included in personnel on the consolidated statements of income) for the nine months ended September 30, 2023 and 2022, respectively, associated with its common stock awards granted to officers and employees. In addition, for the nine months ended September 30, 2023, the Company recognized approximately $0.6 million of director expense (included in other expense on the consolidated statements of income) for restricted stock grants totaling 11,674 shares with immediate vesting to directors, while for the nine months ended September 30, 2022, the Company recognized approximately $0.7 million of director expense for restricted stock grants totaling 8,852 shares with immediate vesting to directors, in each case representing the annual stock retainer fee paid to external board members for that year. As of September 30, 2023, there was approximately $14.0 million of unrecognized compensation cost related to equity award grants, which is expected to be recognized over the remaining vesting period of approximately three years. The Company recognized a tax benefit of approximately $0.5 million and $0.4 million for the nine months ended September 30, 2023 and 2022, respectively, for the tax impact of stock option exercises and vesting of restricted stock. |
Securities and Other Investment
Securities and Other Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities and Other Investments | Securities and Other Investments Securities Securities are classified as AFS or HTM on the consolidated balance sheets at the time of purchase. AFS securities include those securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and are carried at fair value on the consolidated balance sheets. HTM securities include those securities which the Company has both the positive intent and ability to hold to maturity, and are carried at amortized cost on the consolidated balance sheets. Premiums and discounts on investment securities are amortized or accreted into interest income over the estimated life of the related securities using the effective interest method. The amortized cost and fair value of securities AFS and HTM are summarized as follows. September 30, 2023 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Securities AFS: U.S. Treasury securities $ 42,190 $ — $ 4,686 $ 37,504 U.S. government agency securities 8,293 2 74 8,221 State, county and municipals 387,259 69 45,998 341,330 Mortgage-backed securities 355,906 — 49,497 306,409 Corporate debt securities 111,245 — 10,883 100,362 Total securities AFS $ 904,893 $ 71 $ 111,138 $ 793,826 December 31, 2022 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Securities AFS: U.S. Treasury securities $ 192,116 $ — $ 8,286 $ 183,830 U.S. government agency securities 2,133 — 33 2,100 State, county and municipals 433,733 123 35,668 398,188 Mortgage-backed securities 227,650 10 26,728 200,932 Corporate debt securities 140,712 3 8,147 132,568 Total securities AFS $ 996,344 $ 136 $ 78,862 $ 917,618 Securities HTM: U.S. Treasury securities $ 497,648 $ — $ 35,722 $ 461,926 U.S. government agency securities 8,744 46 — 8,790 State, county and municipals 34,874 — 3,349 31,525 Mortgage-backed securities 137,862 — 16,751 121,111 Total securities HTM $ 679,128 $ 46 $ 55,822 $ 623,352 On March 7, 2023, Nicolet executed the sale of $500 million (par value) U.S. Treasury held to maturity securities for a pre-tax loss of $38 million or an after-tax loss of $28 million. Proceeds from the sale were used to reduce existing FHLB borrowings with the remainder held in investable cash. As a result of the sale of securities previously classified as held to maturity, the remaining unsold portfolio of held to maturity securities, with a book value of $177 million, was reclassified to available for sale with a carrying value of approximately $157 million. The unrealized loss on this portfolio of $20 million (at the time of reclassification) increased the balance of accumulated other comprehensive loss $15 million, net of the deferred tax effect, and is subject to future market changes. Proceeds and realized gains or losses from the sale of AFS and HTM securities were as follows. Nine Months Ended September 30, (in thousands) 2023 2022 Securities AFS: Gross gains $ 268 $ 20 Gross losses (605) (5) Gains (losses) on sales of securities AFS, net $ (337) $ 15 Proceeds from sales of securities AFS $ 28,992 $ 23,984 Securities HTM: Gross gains $ — $ — Gross losses (37,723) — Gains (losses) on sales of securities HTM, net $ (37,723) $ — Proceeds from sales of securities HTM $ 460,051 $ — All mortgage-backed securities included in the securities portfolio were issued by U.S. government agencies and corporations. Investment securities with a carrying value of $345 million and $883 million, as of September 30, 2023 and December 31, 2022, respectively, were pledged as collateral to secure public deposits and borrowings, as applicable, and for liquidity or other purposes as required by regulation. Accrued interest on investment securities totaled $5 million at both September 30, 2023 and December 31, 2022, and is included in accrued interest receivable and other assets on the consolidated balance sheets. The following table presents gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. September 30, 2023 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. Treasury securities $ — $ — $ 37,504 $ 4,686 $ 37,504 $ 4,686 4 U.S. government agency securities 5,396 32 1,798 42 7,194 74 10 State, county and municipals 66,415 5,460 263,740 40,538 330,155 45,998 710 Mortgage-backed securities 19,959 268 286,450 49,229 306,409 49,497 451 Corporate debt securities 3,336 223 92,607 10,660 95,943 10,883 67 Total $ 95,106 $ 5,983 $ 682,099 $ 105,155 $ 777,205 $ 111,138 1,242 December 31, 2022 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. Treasury securities $ 448 $ 14 $ 183,382 $ 8,272 $ 183,830 $ 8,286 9 U.S. government agency securities 2,083 32 17 1 2,100 33 9 State, county and municipals 277,546 18,041 86,569 17,627 364,115 35,668 812 Mortgage-backed securities 102,108 11,320 95,614 15,408 197,722 26,728 376 Corporate debt securities 114,887 6,186 12,938 1,961 127,825 8,147 90 Total $ 497,072 $ 35,593 $ 378,520 $ 43,269 $ 875,592 $ 78,862 1,296 Securities HTM: U.S. Treasury securities $ — $ — $ 461,926 $ 35,722 $ 461,926 $ 35,722 6 State, county and municipals 17,591 1,594 11,654 1,755 29,245 3,349 58 Mortgage-backed securities 68,108 8,029 53,003 8,722 121,111 16,751 106 Total $ 85,699 $ 9,623 $ 526,583 $ 46,199 $ 612,282 $ 55,822 170 During first quarter 2023, the Company recognized provision expense of $2.3 million related to the expected credit loss on its Signature Bank sub debt investment (acquired in an acquisition), and immediately charged-off the full investment. The Company does not consider its remaining securities AFS with unrealized losses to be attributable to credit-related factors, as the unrealized losses in each category have occurred as a result of changes in noncredit-related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. Furthermore, the Company does not have the intent to sell any of these AFS securities and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. As of September 30, 2023 and December 31, 2022, no allowance for credit losses on AFS securities was recognized. The Company evaluated the HTM securities and determined no allowance for credit losses was necessary at December 31, 2022. The U.S. Treasury and U.S. government agency securities are guaranteed by the U.S. government. For the state, county and municipal securities, management considered issuer bond ratings, historical loss rates by bond ratings, whether issuers continue to make timely principal and interest payments per the contractual terms of the investment securities, internal forecasts, and whether or not such investment securities provide insurance, other credit enhancement, or are pre-refunded by the issuers. For the mortgage-backed securities, all such securities were issued by U.S. government agencies and corporations, which are currently explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The amortized cost and fair value of investment securities by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. As of September 30, 2023 Securities AFS (in thousands) Amortized Cost Fair Value Due in less than one year $ 65,155 $ 64,470 Due in one year through five years 162,719 147,803 Due after five years through ten years 207,337 177,658 Due after ten years 113,776 97,486 548,987 487,417 Mortgage-backed securities 355,906 306,409 Total investment securities $ 904,893 $ 793,826 Other Investments Other investments include “restricted” equity securities, equity securities with readily determinable fair values, and private company securities. As a member of the Federal Reserve Bank System and the Federal Home Loan Bank (“FHLB”) System, Nicolet is required to maintain an investment in the capital stock of these entities. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other exchange traded equity securities. As no ready market exists for these stocks, and they have no quoted market value, these investments are carried at cost. Also included are investments in other private companies that do not have quoted market prices, which are carried at cost less impairment charges, if any. The carrying value of other investments are summarized as follows. September 30, 2023 December 31, 2022 (in thousands) Amount Amount Federal Reserve Bank stock $ 33,050 $ 32,219 Federal Home Loan Bank (“FHLB”) stock 9,674 18,625 Equity securities with readily determinable fair values 3,893 4,376 Other investments 11,750 10,066 Total other investments $ 58,367 $ 65,286 |
Loans, Allowance for Credit Los
Loans, Allowance for Credit Losses - Loans, and Credit Quality | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans, Allowance for Credit Losses - Loans, and Credit Quality | Loans, Allowance for Credit Losses - Loans, and Credit Quality The loan composition is summarized as follows. September 30, 2023 December 31, 2022 (in thousands) Amount % of Amount % of Commercial & industrial $ 1,237,789 20 % $ 1,304,819 21 % Owner-occupied commercial real estate (“CRE”) 971,397 16 954,599 15 Agricultural 1,108,261 18 1,088,607 18 CRE investment 1,130,938 18 1,149,949 19 Construction & land development 326,747 5 318,600 5 Residential construction 76,289 1 114,392 2 Residential first mortgage 1,136,748 18 1,016,935 16 Residential junior mortgage 195,432 3 177,332 3 Retail & other 55,656 1 55,266 1 Loans 6,239,257 100 % 6,180,499 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 63,160 61,829 Loans, net $ 6,176,097 $ 6,118,670 Allowance for credit losses - Loans to loans 1.01 % 1.00 % Accrued interest on loans totaled $19 million and $15 million at September 30, 2023 and December 31, 2022, respectively, and is included in accrued interest receivable and other assets on the consolidated balance sheets. Allowance for Credit Losses - Loans : The majority of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of underlying collateral, if any. A roll forward of the allowance for credit losses - loans is summarized as follows. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 December 31, 2022 Beginning balance $ 62,811 $ 50,655 $ 61,829 $ 49,672 $ 49,672 ACL on PCD loans acquired — 1,709 — 1,709 1,937 Provision for credit losses 450 8,200 1,650 9,100 10,950 Charge-offs (346) (300) (1,091) (442) (1,033) Recoveries 245 84 772 309 303 Net (charge-offs) recoveries (101) (216) (319) (133) (730) Ending balance $ 63,160 $ 60,348 $ 63,160 $ 60,348 $ 61,829 The following tables present the balance and activity in the ACL-Loans by portfolio segment. Nine Months Ended September 30, 2023 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans Beginning balance $ 16,350 $ 9,138 $ 9,762 $ 12,744 $ 2,572 $ 1,412 $ 6,976 $ 1,846 $ 1,029 $ 61,829 Provision (1,518) 48 2,467 46 96 (484) 336 295 364 1,650 Charge-offs (403) (301) (66) — — — — (96) (225) (1,091) Recoveries 518 241 3 — — — 3 — 7 772 Net (charge-offs) recoveries 115 (60) (63) — — — 3 (96) (218) (319) Ending balance $ 14,947 $ 9,126 $ 12,166 $ 12,790 $ 2,668 $ 928 $ 7,315 $ 2,045 $ 1,175 $ 63,160 As % of ACL-Loans 24 % 14 % 19 % 20 % 4 % 2 % 12 % 3 % 2 % 100 % Year Ended December 31, 2022 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & ACL-Loans Beginning balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 ACL on PCD loans 1,408 384 — 38 2 — 93 12 — 1,937 Provision 2,415 2,087 215 4,075 758 512 96 493 299 10,950 Charge-offs (190) (555) — — — — (65) — (223) (1,033) Recoveries 104 — — 169 — — 8 1 21 303 Net (charge-offs) recoveries (86) (555) — 169 — — (57) 1 (202) (730) Ending balance $ 16,350 $ 9,138 $ 9,762 $ 12,744 $ 2,572 $ 1,412 $ 6,976 $ 1,846 $ 1,029 $ 61,829 As % of ACL-Loans 26 % 15 % 16 % 21 % 4 % 2 % 11 % 3 % 2 % 100 % The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. To assess the appropriateness of the ACL-Loans, management applies an allocation methodology which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonperforming loans; (v) the risk characteristics of the various loan segments; (vi) changes in the size and character of the loan portfolio; (vii) concentrations of loans to specific borrowers or industries; (viii) existing economic conditions; (ix) the fair value of underlying collateral; and (x) other qualitative and quantitative factors which could affect expected credit losses. Assessing these numerous factors involves significant judgment. Management allocates the ACL-Loans by pools of risk within each loan portfolio segment. The allocation methodology consists of the following components. First, a specific reserve is established for individually evaluated credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000, collateral dependent loans, purchased credit deteriorated loans, and other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Management allocates the ACL-Loans with historical loss rates by loan segment. The loss factors are measured on a quarterly basis and applied to each loan segment based on current loan balances and projected for their expected remaining life. Next, management allocates the ACL-Loans using the qualitative factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience of each loan segment. Lastly, management considers reasonable and supportable forecasts to assess the collectability of future cash flows. Allowance for Credit Losses-Unfunded Commitments : In addition to the ACL-Loans, the Company has established an ACL-Unfunded commitments, classified in accrued interest payable and other liabilities on the consolidated balance sheets. This reserve is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL-Loans. The reserve for unfunded commitments was $3.0 million at both September 30, 2023 and December 31, 2022. Provision for Credit Losses : The provision for credit losses is determined by the Company as the amount to be added to the ACL loss accounts for various types of financial instruments including loans, investment securities, and off-balance sheet credit exposures after net charge-offs have been deducted to bring the ACL to a level that, in management’s judgment, is necessary to absorb expected credit losses over the lives of the respective financial instruments. See Note 5 for additional information regarding the ACL related to investment securities. The following table presents the components of the provision for credit losses. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 December 31, 2022 Provision for credit losses on: Loans $ 450 $ 8,200 $ 1,650 $ 9,100 $ 10,950 Unfunded commitments — 400 — 550 550 Investment securities — — 2,340 — — Total $ 450 $ 8,600 $ 3,990 $ 9,650 $ 11,500 Collateral Dependent Loans : A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the estimated fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following tables present collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation. September 30, 2023 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,402 $ 3,402 $ 2,351 $ 1,051 $ 230 Owner-occupied CRE 4,827 — 4,827 4,827 — — Agricultural 7,629 5,811 13,440 8,530 4,910 123 CRE investment 942 — 942 552 390 19 Construction & land development — — — — — — Residential first mortgage 686 — 686 686 — — Residential junior mortgage — — — — — — Total loans $ 14,084 $ 9,213 $ 23,297 $ 16,946 $ 6,351 $ 372 December 31, 2022 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,475 $ 3,475 $ 1,927 $ 1,548 $ 595 Owner-occupied CRE 4,907 — 4,907 4,699 208 53 Agricultural 13,758 6,458 20,216 14,358 5,858 261 CRE investment 2,713 — 2,713 979 1,734 212 Construction & land development 670 — 670 670 — — Residential first mortgage 91 — 91 91 — — Total loans $ 22,139 $ 9,933 $ 32,072 $ 22,724 $ 9,348 $ 1,121 Past Due and Nonaccrual Loans : The following tables present past due loans by portfolio segment. September 30, 2023 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 281 $ 5,192 $ 1,232,316 $ 1,237,789 Owner-occupied CRE 76 5,602 965,719 971,397 Agricultural 151 13,458 1,094,652 1,108,261 CRE investment 240 1,100 1,129,598 1,130,938 Construction & land development 23 177 326,547 326,747 Residential construction — — 76,289 76,289 Residential first mortgage 1,710 3,812 1,131,226 1,136,748 Residential junior mortgage 67 92 195,273 195,432 Retail & other 729 74 54,853 55,656 Total loans $ 3,277 $ 29,507 $ 6,206,473 $ 6,239,257 Percent of total loans 0.1 % 0.5 % 99.4 % 100.0 % December 31, 2022 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 210 $ 3,328 $ 1,301,281 $ 1,304,819 Owner-occupied CRE 833 5,647 948,119 954,599 Agricultural 20 20,416 1,068,171 1,088,607 CRE investment — 3,832 1,146,117 1,149,949 Construction & land development — 771 317,829 318,600 Residential construction — — 114,392 114,392 Residential first mortgage 3,628 3,780 1,009,527 1,016,935 Residential junior mortgage 236 224 176,872 177,332 Retail & other 261 82 54,923 55,266 Total loans $ 5,188 $ 38,080 $ 6,137,231 $ 6,180,499 Percent of total loans 0.1 % 0.6 % 99.3 % 100.0 % The following table presents nonaccrual loans by portfolio segment. September 30, 2023 December 31, 2022 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 5,192 17 % $ 3,328 9 % Owner-occupied CRE 5,602 19 5,647 15 Agricultural 13,458 46 20,416 53 CRE investment 1,100 4 3,832 10 Construction & land development 177 1 771 2 Residential construction — — — — Residential first mortgage 3,812 13 3,780 10 Residential junior mortgage 92 — 224 1 Retail & other 74 — 82 — Nonaccrual loans $ 29,507 100 % $ 38,080 100 % Percent of total loans 0.5 % 0.6 % Credit Quality Information : The following tables present total loans by risk categories and gross charge-offs by year of origination. Acquired loans have been included based upon the actual origination date. September 30, 2023 Amortized Cost Basis by Origination Year (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 152,385 $ 254,446 $ 184,778 $ 73,488 $ 53,351 $ 96,269 $ 334,059 $ — $ 1,148,776 Grade 5 5,350 10,296 6,779 2,908 1,246 7,364 24,477 — 58,420 Grade 6 — 591 612 194 4 1,028 1,850 — 4,279 Grade 7 4,444 4,600 2,653 2,372 1,952 7,205 3,088 — 26,314 Total $ 162,179 $ 269,933 $ 194,822 $ 78,962 $ 56,553 $ 111,866 $ 363,474 $ — $ 1,237,789 Current period gross charge-offs $ — $ (77) $ (114) $ — $ — $ (197) $ (15) $ — $ (403) Owner-occupied CRE Grades 1-4 $ 101,687 $ 157,461 $ 186,745 $ 98,057 $ 90,223 $ 277,024 $ 3,114 $ — $ 914,311 Grade 5 949 3,754 9,854 5,362 1,481 15,158 212 — 36,770 Grade 6 — — 348 1,545 605 150 — — 2,648 Grade 7 — 218 1,024 6,916 354 8,861 295 — 17,668 Total $ 102,636 $ 161,433 $ 197,971 $ 111,880 $ 92,663 $ 301,193 $ 3,621 $ — $ 971,397 Current period gross charge-offs $ — $ — $ — $ — $ — $ (301) $ — $ — $ (301) Agricultural Grades 1-4 $ 72,777 $ 282,254 $ 136,796 $ 80,960 $ 23,694 $ 144,223 $ 252,202 $ — $ 992,906 Grade 5 2,809 11,201 6,003 725 384 33,751 14,316 — 69,189 Grade 6 — 134 1,114 — 51 2,293 207 — 3,799 Grade 7 3,851 6,898 6,455 492 1,865 14,764 8,042 — 42,367 Total $ 79,437 $ 300,487 $ 150,368 $ 82,177 $ 25,994 $ 195,031 $ 274,767 $ — $ 1,108,261 Current period gross charge-offs $ — $ — $ — $ — $ — $ (66) $ — $ — $ (66) CRE investment Grades 1-4 $ 27,123 $ 183,799 $ 247,563 $ 172,237 $ 117,114 $ 294,916 $ 11,445 $ — $ 1,054,197 Grade 5 2,802 7,859 14,857 8,634 10,066 21,927 49 — 66,194 Grade 6 — — — — — 1,357 65 — 1,422 Grade 7 — 55 21 — 1,043 8,006 — — 9,125 Total $ 29,925 $ 191,713 $ 262,441 $ 180,871 $ 128,223 $ 326,206 $ 11,559 $ — $ 1,130,938 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land development Grades 1-4 $ 37,180 $ 153,809 $ 88,212 $ 9,610 $ 5,288 $ 28,329 $ 2,070 $ — $ 324,498 Grade 5 — 26 127 1,275 508 89 — — 2,025 Grade 6 — — — — — — — — — Grade 7 47 — — — — 92 85 — 224 Total $ 37,227 $ 153,835 $ 88,339 $ 10,885 $ 5,796 $ 28,510 $ 2,155 $ — $ 326,747 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential construction Grades 1-4 $ 35,996 $ 32,539 $ 5,279 $ 1,101 $ 125 $ 1,209 $ 40 $ — $ 76,289 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 35,996 $ 32,539 $ 5,279 $ 1,101 $ 125 $ 1,209 $ 40 $ — $ 76,289 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential first mortgage Grades 1-4 $ 125,176 $ 377,475 $ 256,628 $ 134,035 $ 59,281 $ 168,739 $ 614 $ 3 $ 1,121,951 Grade 5 — 1,296 1,259 1,262 2,538 2,684 — — 9,039 Grade 6 — — — — — — — — — Grade 7 — 150 467 485 1,074 3,582 — — 5,758 Total $ 125,176 $ 378,921 $ 258,354 $ 135,782 $ 62,893 $ 175,005 $ 614 $ 3 $ 1,136,748 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential junior mortgage Grades 1-4 $ 12,538 $ 7,607 $ 3,915 $ 4,360 $ 2,848 $ 4,110 $ 153,322 $ 6,446 $ 195,146 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 32 202 — — 14 38 — 286 Total $ 12,538 $ 7,639 $ 4,117 $ 4,360 $ 2,848 $ 4,124 $ 153,360 $ 6,446 $ 195,432 Current period gross charge-offs $ — $ — $ — $ — $ — $ (96) $ — $ — $ (96) Retail & other Grades 1-4 $ 7,281 $ 8,932 $ 6,202 $ 2,925 $ 2,045 $ 4,042 $ 24,107 $ — $ 55,534 Grade 5 — — 18 — — — — — 18 Grade 6 — — — — — — — — — Grade 7 — — 26 10 1 67 — — 104 Total $ 7,281 $ 8,932 $ 6,246 $ 2,935 $ 2,046 $ 4,109 $ 24,107 $ — $ 55,656 Current period gross charge-offs $ (6) $ (1) $ — $ (1) $ — $ (52) $ (165) $ — $ (225) Total loans $ 592,395 $ 1,505,432 $ 1,167,937 $ 608,953 $ 377,141 $ 1,147,253 $ 833,697 $ 6,449 $ 6,239,257 December 31, 2022 Amortized Cost Basis by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 317,394 $ 226,065 $ 101,374 $ 68,884 $ 50,189 $ 77,589 $ 360,978 $ — $ 1,202,473 Grade 5 9,938 5,902 10,811 1,530 3,986 4,562 20,617 — 57,346 Grade 6 1,459 2,283 629 511 402 11,653 14,047 — 30,984 Grade 7 556 293 3,211 2,990 775 1,070 5,121 — 14,016 Total $ 329,347 $ 234,543 $ 116,025 $ 73,915 $ 55,352 $ 94,874 $ 400,763 $ — $ 1,304,819 Current period gross charge-offs $ (38) $ (41) $ (2) $ — $ (109) $ — $ — $ — $ (190) Owner-occupied CRE Grades 1-4 $ 151,391 $ 190,313 $ 105,156 $ 100,606 $ 91,479 $ 252,574 $ 6,734 $ — $ 898,253 Grade 5 5,241 3,192 4,287 2,163 4,791 14,632 348 — 34,654 Grade 6 — — 763 2,361 — 877 — — 4,001 Grade 7 227 706 6,344 616 — 9,798 — — 17,691 Total $ 156,859 $ 194,211 $ 116,550 $ 105,746 $ 96,270 $ 277,881 $ 7,082 $ — $ 954,599 Current period gross charge-offs $ — $ — $ — $ — $ — $ (555) $ — $ — $ (555) Agricultural Grades 1-4 $ 275,208 $ 145,272 $ 85,413 $ 25,463 $ 19,687 $ 130,849 $ 249,033 $ — $ 930,925 Grade 5 13,295 18,178 2,694 1,992 517 43,927 21,199 — 101,802 Grade 6 115 1,457 28 33 — 5,258 429 — 7,320 Grade 7 7,165 2,632 720 1,977 4,611 19,948 11,507 — 48,560 Total $ 295,783 $ 167,539 $ 88,855 $ 29,465 $ 24,815 $ 199,982 $ 282,168 $ — $ 1,088,607 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — CRE investment Grades 1-4 $ 205,930 $ 229,252 $ 192,527 $ 134,301 $ 79,649 $ 248,595 $ 11,383 $ — $ 1,101,637 Grade 5 567 1,649 3,578 4,266 3,086 24,897 — — 38,043 Grade 6 — — — 1,170 2,396 2,483 206 — 6,255 Grade 7 — — 121 299 245 3,140 209 — 4,014 Total $ 206,497 $ 230,901 $ 196,226 $ 140,036 $ 85,376 $ 279,115 $ 11,798 $ — $ 1,149,949 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land development Grades 1-4 $ 104,804 $ 140,727 $ 12,188 $ 9,747 $ 23,811 $ 13,138 $ 13,235 $ — $ 317,650 Grade 5 37 — — 14 — 95 — — 146 Grade 6 — — — — — — — — — Grade 7 33 — — — — 771 — — 804 Total $ 104,874 $ 140,727 $ 12,188 $ 9,761 $ 23,811 $ 14,004 $ 13,235 $ — $ 318,600 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential construction Grades 1-4 $ 92,417 $ 16,774 $ 966 $ 123 $ 336 $ 229 $ 3,547 $ — $ 114,392 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 92,417 $ 16,774 $ 966 $ 123 $ 336 $ 229 $ 3,547 $ — $ 114,392 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential first mortgage Grades 1-4 $ 318,628 $ 272,011 $ 147,857 $ 68,975 $ 31,208 $ 162,153 $ 2,080 $ 3 $ 1,002,915 Grade 5 1,494 758 997 1,803 2,272 465 — — 7,789 Grade 6 — — — 711 — — — — 711 Grade 7 154 329 188 349 197 4,303 — — 5,520 Total $ 320,276 $ 273,098 $ 149,042 $ 71,838 $ 33,677 $ 166,921 $ 2,080 $ 3 $ 1,016,935 Current period gross charge-offs $ — $ — $ — $ — $ — $ (65) $ — $ — $ (65) Residential junior mortgage Grades 1-4 $ 10,119 $ 4,580 $ 5,207 $ 3,151 $ 1,573 $ 3,409 $ 142,784 $ 5,762 $ 176,585 Grade 5 — — — — — 143 165 — 308 Grade 6 — — — — — — — — — Grade 7 — 206 — — — 24 209 — 439 Total $ 10,119 $ 4,786 $ 5,207 $ 3,151 $ 1,573 $ 3,576 $ 143,158 $ 5,762 $ 177,332 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Retail & other Grades 1-4 $ 12,318 $ 8,957 $ 4,221 $ 3,188 $ 1,035 $ 24,950 $ 492 $ — $ 55,161 Grade 5 — 23 — — — — — — 23 Grade 6 — — — — — — — — — Grade 7 — 23 22 2 30 5 — — 82 Total $ 12,318 $ 9,003 $ 4,243 $ 3,190 $ 1,065 $ 24,955 $ 492 $ — $ 55,266 Current period gross charge-offs $ — $ (1) $ (6) $ (1) $ — $ — $ (215) $ — $ (223) Total loans $ 1,528,490 $ 1,271,582 $ 689,302 $ 437,225 $ 322,275 $ 1,061,537 $ 864,323 $ 5,765 $ 6,180,499 An internal loan review function rates loans using a grading system based on different risk categories. Loans with a Substandard grade are considered to have a greater risk of loss and may be assigned allocations for loss based on specific review of the weaknesses observed in the individual credits. Such loans are monitored by the loan review function to help ensure early identification of any deterioration. A description of the loan risk categories used by the Company follows. Grades 1-4, Pass: Credits exhibit adequate cash flows, appropriate management and financial ratios within industry norms and/or are supported by sufficient collateral. Some credits in these rating categories may require a need for monitoring but elements of concern are not severe enough to warrant an elevated rating. Grade 5, Watch: Credits with this rating are adequately secured and performing but are being monitored due to the presence of various short-term weaknesses which may include unexpected, short-term adverse financial performance, managerial problems, potential impact of a decline in the entire industry or local economy and delinquency issues. Loans to individuals or loans supported by guarantors with marginal net worth or collateral may be included in this rating category. Grade 6, Special Mention: Credits with this rating have potential weaknesses that, without the Company’s attention and correction may result in deterioration of repayment prospects. These assets are considered Criticized Assets. Potential weaknesses may include adverse financial trends for the borrower or industry, repeated lack of compliance with Company requests, increasing debt to net worth, serious management conditions and decreasing cash flow. Grade 7, Substandard: Assets with this rating are characterized by the distinct possibility the Company will sustain some loss if deficiencies are not corrected. All foreclosures, liquidations, and nonaccrual loans are considered to be categorized in this rating, regardless of collateral sufficiency. Modifications to Borrowers Experiencing Financial Difficulty : On January 1, 2023, the Company adopted ASU 2022-02, which eliminated the accounting guidance for TDRs by creditors and enhanced the disclosure requirements for certain loan modifications to borrowers experiencing financial difficulty. The following table presents the amortized cost of loans that were both experiencing financial difficulty and were modified during the nine months ended September 30, 2023, aggregated by portfolio segment and type of modification. (in thousands) Payment Delay Term Extension Interest Rate Reduction Term Extension & Interest Rate Reduction Total % of Total Loans Commercial & industrial $ 433 $ — $ 87 $ — $ 520 0.04 % Owner-occupied CRE — — — — — — % Agricultural 107 — — — 107 0.01 % CRE investment — — — — — — % Construction & land development — — — — — — % Residential first mortgage — — — — — — % Total $ 540 $ — $ 87 $ — $ 627 0.01 % The loans presented in the table above have had more than insignificant payment delays (which the Company has defined as payment delays in excess of three months). These modified loans are closely monitored by the Company to understand the effectiveness of its modification efforts, and such loans generally remain in nonaccrual status pending a sustained period of performance in accordance with the modified terms. As of September 30, 2023, there were no loans made to borrowers experiencing financial difficulty that were modified during the current period and subsequently defaulted, and there were no commitments to lend additional funds to such debtors. Troubled Debt Restructuring Disclosures Prior to Adoption of ASU 2022-02 : As of December 31, 2022, the Company had restructured loans totaling $18 million, with a pre-modification balance of $24 million, all of which were also reflected as nonaccrual loans. There were no restructured loans modified during 2022 that subsequently defaulted, and there were no commitments to lend additional funds to such debtors. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles and Servicing Rights | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles and Servicing Rights | Goodwill and Other Intangibles and Servicing Rights Management periodically reviews the carrying value of its intangible assets to determine if any impairment has occurred, in which case an impairment charge would be recorded as an expense in the period of impairment, or whether changes in circumstances have occurred that would require a revision to the remaining useful life that would affect expense prospectively. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance of the underlying operations or assets which give rise to the intangible. Management also regularly monitors economic factors for potential impairment indications on the value of our franchise, stability of deposits, and the wealth client base, underlying our goodwill and other intangibles. Management concluded no impairment was indicated for the nine months ended September 30, 2023 and the year ended December 31, 2022. A summary of goodwill and other intangibles was as follows. (in thousands) September 30, 2023 December 31, 2022 Goodwill $ 367,387 $ 367,387 Core deposit intangibles 26,842 32,701 Customer list intangibles 1,979 2,350 Other intangibles 28,821 35,051 Goodwill and other intangibles, net $ 396,208 $ 402,438 Goodwill : A summary of goodwill was as follows. During 2022, goodwill increased due to the Charter acquisition. Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Goodwill: Goodwill at beginning of year $ 367,387 $ 317,189 Acquisitions — 49,970 Purchase accounting adjustment — 228 Goodwill at end of period $ 367,387 $ 367,387 Other intangible assets : Other intangible assets, consisting of core deposit intangibles and customer list intangibles, are amortized over their estimated finite lives. A summary of other intangible assets was as follows. During 2022, core deposit intangibles increased due to the Charter acquisition. Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Core deposit intangibles: Gross carrying amount $ 60,724 $ 60,724 Accumulated amortization (33,882) (28,023) Net book value $ 26,842 $ 32,701 Additions during the period $ — $ 19,364 Amortization during the period $ 5,859 $ 6,108 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (3,544) (3,173) Net book value $ 1,979 $ 2,350 Amortization during the period $ 371 $ 508 Mortgage servicing rights (“MSR”) : Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date, with the amortization recorded in mortgage income, net, in the consolidated statements of income. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value, and are included in other assets in the consolidated balance sheets. The Company periodically evaluates its mortgage servicing rights asset for impairment. At each reporting date, impairment is assessed based on estimated fair value using estimated prepayment speeds of the underlying mortgage loans serviced and stratification based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). A summary of the changes in the mortgage servicing rights asset was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Mortgage servicing rights asset: MSR asset at beginning of year $ 13,080 $ 13,636 Capitalized MSR 1,104 2,327 Amortization during the period (2,248) (2,883) MSR asset at end of period $ 11,936 $ 13,080 Valuation allowance at beginning of year $ (500) $ (1,200) Reversals 500 700 Valuation allowance at end of period $ — $ (500) MSR asset, net $ 11,936 $ 12,580 Fair value of MSR asset at end of period $ 15,847 $ 17,215 Residential mortgage loans serviced for others $ 1,610,318 $ 1,637,109 Net book value of MSR asset to loans serviced for others 0.74 % 0.77 % Loan servicing rights (“LSR”) : The Company acquired an LSR asset in December 2021 which will be amortized over the estimated remaining loan service period. The Company does not expect to add new loans to this servicing portfolio. A summary of the changes in the LSR asset were as follows. Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Loan servicing rights asset: LSR asset at beginning of year $ 11,039 $ 20,055 Amortization during the period (1,656) (9,016) LSR asset at end of period $ 9,383 $ 11,039 Agricultural loans serviced for others $ 502,901 $ 538,392 The following table shows the estimated future amortization expense for amortizing intangible assets and the servicing assets. The projections are based on existing asset balances, the current interest rate environment and estimated prepayment speeds as of September 30, 2023. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit Customer list MSR asset LSR asset Year ending December 31, 2023 (remaining three months) $ 1,730 $ 112 $ 687 $ 552 2024 6,298 449 2,661 1,962 2025 5,161 449 1,978 1,717 2026 3,983 249 1,457 1,472 2027 3,218 166 1,457 1,227 2028 2,622 166 1,456 981 Thereafter 3,830 388 2,240 1,472 Total $ 26,842 $ 1,979 $ 11,936 $ 9,383 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Borrowings | Short and Long-Term Borrowings Short-Term Borrowings: Short-term borrowings include any borrowing with an original maturity of one year or less. The Company did not have any short-term borrowings outstanding at September 30, 2023. At December 31, 2022, short-term borrowings included $317 million of short-term FHLB advances, comprised of $117 million due in January 2023 at a weighted average rate of 4.29% and $200 million due in September 2023 at a weighted average rate of 4.30%. Long-Term Borrowings: Long-term borrowings include any borrowing with an original maturity greater than one year. The components of long-term borrowings were as follows. (in thousands) September 30, 2023 December 31, 2022 FHLB advances $ 5,000 $ 33,000 Junior subordinated debentures 40,344 39,720 Subordinated notes 152,410 152,622 Total long-term borrowings $ 197,754 $ 225,342 FHLB Advances : The Federal Home Loan Bank (“FHLB”) advance bears a fixed rate, requires interest-only monthly payments, and has a maturity date of March 2025. The weighted average rate of the FHLB advances was 1.55% at September 30, 2023 and 1.09% at December 31, 2022. Junior Subordinated Debentures : Each of the junior subordinated debentures was issued to an underlying statutory trust (the “statutory trusts”), which issued trust preferred securities and common securities and used the proceeds from the issuance of the common and the trust preferred securities to purchase the junior subordinated debentures of the Company. The debentures represent the sole asset of the statutory trusts. All of the common securities of the statutory trusts are owned by the Company. The statutory trusts are not included in the consolidated financial statements. The net effect of all the documents entered into with respect to the trust preferred securities is that the Company, through payments on its debentures, is liable for the distributions and other payments required on the trust preferred securities. Interest on all debentures is current. Any applicable discounts (initially recorded to carry an acquired debenture at its then estimated fair value) are being accreted to interest expense over the remaining life of the debenture. All the junior subordinated debentures are currently callable and may be redeemed in part or in full, at par, plus any accrued but unpaid interest. At September 30, 2023 and December 31, 2022, approximately $39 million and $38 million, respectively, of trust preferred securities qualify as Tier 1 capital. Subordinated Notes (the “Notes”) : In July 2021, the Company completed the private placement of $100 million in fixed-to-floating rate subordinated notes due in 2031, with a fixed annual rate of 3.125% for the first five years, and will reset quarterly thereafter to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 237.5 basis points. The Notes due in 2031 are redeemable beginning July 15, 2026 and quarterly thereafter on any interest payment date. In December 2021, Nicolet assumed two subordinated note issuances at a premium as the result of an acquisition. One issuance was $30 million in fixed-to-floating rate subordinated notes due in 2028, with a fixed annual interest rate of 5.875% for the first five years, and will reset quarterly thereafter to the then current three-month SOFR, as adjusted for the LIBOR to SOFR spread adjustment, plus 2.88%. The Company intends to redeem these notes on the next interest payment date in fourth quarter 2023. The second issuance was $22 million in fixed-to-floating rate subordinated notes due in 2030, with a fixed annual interest rate of 7.00% for the first five years, and will reset quarterly thereafter to the then current SOFR plus 687.5 basis points. The Notes due in 2028 are redeemable beginning June 1, 2023, and quarterly thereafter on any interest payment date, while the Notes due in 2030 are redeemable beginning June 30, 2025, and quarterly thereafter on any interest payment date. All Notes qualify as Tier 2 capital for regulatory purposes, and are discounted in accordance with regulations when the debt has five years or less remaining to maturity. The following table shows the breakdown of junior subordinated debentures and subordinated notes. As of September 30, 2023 As of December 31, 2022 (in thousands) Maturity Interest Par Unamortized Premium /(Discount) / Debt Issue Costs (1) Carrying Interest Carrying Junior Subordinated Debentures: Mid-Wisconsin Statutory Trust I (2) 12/15/2035 7.10 % $ 10,310 $ (2,429) $ 7,881 6.20 % $ 7,734 Baylake Capital Trust II (3) 9/30/2036 7.01 % 16,598 (2,997) 13,601 6.08 % 13,424 First Menasha Statutory Trust (4) 3/17/2034 8.46 % 5,155 (454) 4,701 7.53 % 4,668 County Bancorp Statutory Trust II (5) 9/15/2035 7.20 % 6,186 (792) 5,394 6.30 % 5,277 County Bancorp Statutory Trust III (6) 6/15/2036 7.36 % 6,186 (850) 5,336 6.46 % 5,219 Fox River Valley Capital Trust (7) 5/30/2033 6.40 % 3,610 (179) 3,431 6.40 % 3,398 Total $ 48,045 $ (7,701) $ 40,344 $ 39,720 Subordinated Notes: Subordinated Notes due 2031 7/15/2031 3.13 % $ 100,000 $ (576) $ 99,424 3.13 % $ 99,267 County Subordinated Notes due 2028 6/1/2028 8.56 % 30,000 — 30,000 5.88 % 30,119 County Subordinated Notes due 2030 6/30/2030 7.00 % 22,400 586 22,986 7.00 % 23,236 Total $ 152,400 $ 10 $ 152,410 $ 152,622 (1) Represents the remaining unamortized premium or discount on debt issuances assumed in acquisitions, and represents the unamortized debt issue costs for the debt issued directly by Nicolet. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of three-month SOFR plus 1.43%, adjusted quarterly. * (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of three-month SOFR plus 1.35%, adjusted quarterly. * (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of three-month SOFR plus 2.79%, adjusted quarterly. * (5) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month SOFR plus 1.53%, adjusted quarterly. * (6) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month SOFR plus 1.69%, adjusted quarterly. * (7) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of 5-year swap rate plus 3.40%, which resets every five years. * The floating rate on this debenture was originally based on three-month LIBOR. Effective with the cessation of LIBOR, the floating rate on this debenture is now based on three-month CME Term SOFR, plus the spread adjustment of 0.26161%. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, financial guarantees, and standby letters of credit. Such commitments may involve, to varying degrees, elements of credit risk in excess of amounts recognized on the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and issuing letters of credit as they do for on-balance sheet financial instruments. See Note 6 for information on the allowance for credit losses-unfunded commitments. A summary of the contract or notional amount of the Company’s exposure to off-balance sheet risk was as follows. (in thousands) September 30, 2023 December 31, 2022 Commitments to extend credit $ 1,810,068 $ 1,850,601 Financial standby letters of credit 18,235 26,530 Performance standby letters of credit 15,814 9,375 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract, and predominantly included commercial lines of credit with a term of one year or less. The commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Financial and performance standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Financial standby letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party, while performance standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. Both of these guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property, equipment, and income-producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount. If the commitment is funded, the Company would be entitled to seek recovery from the customer. Interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale are considered derivative instruments (“mortgage derivatives”) and the contractual amounts were $16 million and $17 million, respectively, at September 30, 2023. In comparison, interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale totaled $9 million and $9 million, respectively, at December 31, 2022. The net fair value of these mortgage derivatives combined was a net gain of $0.2 million and $0.1 million at September 30, 2023 and December 31, 2022, respectively. Nicolet is party to various pending and threatened claims and legal proceedings arising in the normal course of business activities, some of which may involve claims for substantial amounts. Although Nicolet has developed policies and procedures to minimize legal noncompliance and the impact of claims and other proceedings and endeavored to procure reasonable amounts of insurance coverage, litigation and regulatory actions present an ongoing risk. With respect to all such claims, Nicolet continuously assesses its potential liability based on the allegations and evidence available. If the facts indicate that it is probable that Nicolet will incur a loss and the amount of such loss can be reasonably estimated, Nicolet will establish an accrual for the probable loss. For matters where a loss is not probable, or the amount of the loss cannot be reasonably estimated, Nicolet does not establish an accrual. Future developments could result in an unfavorable outcome for or resolution of any one or more of the legal proceedings in which Nicolet is a defendant, which may be material to Nicolet’s business or consolidated results of operations or financial condition for a particular fiscal period or periods. Although it is not possible to predict the outcome of any of these legal proceedings or the range of possible loss, if any, based on the most recent information available, advice of counsel and available insurance coverage, if applicable, management believes that any liability resulting from such proceedings would not have a material adverse effect on our financial position or results of operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value represents the estimated price at which an orderly transaction to sell an asset or transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept), and is a market-based measurement versus an entity-specific measurement. The Company records and/or discloses certain financial instruments on a fair value basis. These financial assets and financial liabilities are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observability of the assumptions used to determine fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect assumptions of the reporting entity about how market participants would price the asset or liability based on the best information available under the circumstances. The three fair value levels are: • Level 1 – quoted market prices in active markets for identical assets or liabilities that a company has the ability to access at the measurement date • Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 – significant unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity In instances where the fair value measurement is based on inputs from different levels, the level within which the entire fair value measurement will be categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. This assessment of the significance of an input requires management judgment. Recurring basis fair value measurements: The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 September 30, 2023 U.S. Treasury securities $ 37,504 $ — $ 37,504 $ — U.S. government agency securities 8,221 — 8,221 — State, county and municipals 341,330 — 339,949 1,381 Mortgage-backed securities 306,409 — 305,438 971 Corporate debt securities 100,362 — 97,064 3,298 Securities AFS $ 793,826 $ — $ 788,176 $ 5,650 Other investments (equity securities) $ 3,893 $ 3,893 $ — $ — Derivative assets $ 186 $ — $ — $ 186 Derivative liabilities $ — $ — $ — $ — December 31, 2022 U.S. Treasury securities $ 183,830 $ — $ 183,830 $ — U.S. government agency securities 2,100 — 2,100 — State, county and municipals 398,188 — 396,315 1,873 Mortgage-backed securities 200,932 — 199,951 981 Corporate debt securities 132,568 — 127,269 5,299 Securities AFS $ 917,618 $ — $ 909,465 $ 8,153 Other investments (equity securities) $ 4,376 $ 4,376 $ — $ — Derivative assets $ 60 $ — $ — $ 60 Derivative liabilities $ 10 $ — $ — $ 10 The following is a description of the valuation methodologies used by the Company for the assets and liabilities measured at fair value on a recurring basis, noted in the tables above. Securities AFS : Where quoted market prices on securities exchanges are available, the investments are classified as Level 1. Level 1 investments primarily include exchange-traded equity securities. If quoted market prices are not available, fair value is generally determined using prices obtained from independent pricing vendors who use pricing models (with typical inputs including benchmark yields, reported trades for similar securities, issuer spreads or relationship to other benchmark quoted securities), or discounted cash flows, and are classified as Level 2. Examples of these investments include U.S. Treasury securities, U.S. government agency securities, mortgage-backed securities, obligations of state, county and municipals, and certain corporate debt securities. Finally, in certain cases where there is limited activity or less transparency around inputs to the estimated fair value, investments are classified within Level 3 of the hierarchy. Examples of these include private corporate debt securities, which are primarily trust preferred security investments, as well as certain municipal bonds and mortgage-backed securities. At September 30, 2023 and December 31, 2022, it was determined that carrying value was the best approximation of fair value for these Level 3 securities, based primarily on the internal analysis on these securities. Derivatives : The derivative assets and liabilities include interest rate lock commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans held for sale, which are considered derivative instruments (“mortgage derivatives”). The fair value of interest rate lock commitments are determined using the projected sale price of individual loans based on changes in the market interest rates, projected pull-through rates (the probability that an interest rate lock commitment will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs. The fair value of forward commitments are determined using quoted prices of to-be-announced securities in active markets, or benchmarked to such securities. The derivative assets and liabilities are classified with Level 3 of the hierarchy. The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Nine Months Ended Year Ended Level 3 Fair Value Measurements: September 30, 2023 December 31, 2022 Balance at beginning of year $ 8,153 $ 8,065 Acquired balance — 750 Maturities / Paydowns (2,469) (451) Unrealized gain / (loss) (34) (211) Balance at end of period $ 5,650 $ 8,153 Nonrecurring basis fair value measurements: The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 September 30, 2023 Collateral dependent loans $ 22,925 $ — $ — $ 22,925 Other real estate owned (“OREO”) 2,031 — — 2,031 MSR asset 11,936 — — 11,936 December 31, 2022 Collateral dependent loans $ 30,951 $ — $ — $ 30,951 OREO 1,975 — — 1,975 MSR asset 12,580 — — 12,580 The following is a description of the valuation methodologies used by the Company for the items noted in the table above. For collateral dependent loans, the estimated fair value is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. To estimate the fair value of the MSR asset, the underlying serviced loan pools are stratified by interest rate tranche and term of the loan, and a valuation model is used to calculate the present value of the expected future cash flows for each stratum. The servicing valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, ancillary income, default rates and losses, and prepayment speeds. Although some of these assumptions are based on observable market data, other assumptions are based on unobservable estimates of what market participants would use to measure fair value. Financial instruments: The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. September 30, 2023 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 545,880 $ 545,880 $ 545,880 $ — $ — Certificates of deposit in other banks 7,598 7,519 — 7,519 — Securities AFS 793,826 793,826 — 788,176 5,650 Other investments, including equity securities 58,367 58,367 3,893 43,973 10,501 Loans held for sale 6,500 6,641 — 6,641 — Loans, net 6,176,097 5,908,160 — — 5,908,160 MSR asset 11,936 15,847 — — 15,847 LSR asset 9,383 9,383 — — 9,383 Accrued interest receivable 24,166 24,166 24,166 — — Financial liabilities: Deposits $ 7,182,388 $ 7,164,174 $ — $ — $ 7,164,174 Short-term borrowings — — — — — Long-term borrowings 197,754 190,738 — 4,736 186,002 Accrued interest payable 7,028 7,028 7,028 — — December 31, 2022 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 154,723 $ 154,723 $ 154,723 $ — $ — Certificates of deposit in other banks 12,518 12,407 — 12,407 — Securities AFS 917,618 917,618 — 909,465 8,153 Securities HTM 679,128 623,352 — 623,352 — Other investments, including equity securities 65,286 65,286 4,376 52,093 8,817 Loans held for sale 1,482 1,529 — 1,529 — Loans, net 6,118,670 5,863,570 — — 5,863,570 MSR asset 12,580 17,215 — — 17,215 LSR asset 11,039 11,039 — — 11,039 Accrued interest receivable 21,275 21,275 21,275 — — Financial liabilities: Deposits $ 7,178,921 $ 7,172,779 $ — $ — $ 7,172,779 Short-term borrowings 317,000 317,000 317,000 — — Long-term borrowings 225,342 220,513 — 33,001 187,512 Accrued interest payable 4,265 4,265 4,265 — — The valuation methodologies for the financial instruments disclosed in the above table are described in Note 18, Fair Value Measurements, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 2, 2023, Nicolet sold its member interest in UFS, LLC, for proceeds of $10 million and a pre-tax gain of approximately $9 million. This gain on sale will be realized during fourth quarter 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 17,158 | $ 18,510 | $ 30,855 | $ 66,659 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
General | General In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets, statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows of Nicolet Bankshares, Inc. (the “Company” or “Nicolet”) and its subsidiaries, as of and for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions and balances have been eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been omitted or abbreviated. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Estimates are used in accounting for, among other items, the allowance for credit losses, valuation of loans in acquisition transactions, useful lives for depreciation and amortization, fair value of financial instruments, impairment calculations, valuation of deferred tax assets, uncertain income tax positions and contingencies. These estimates are based on management’s knowledge of historical experience, current information, and other factors deemed to be relevant; accordingly, as this information changes, actual results could differ from those estimates. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, changes in applicable banking or tax regulations, and changes to deferred tax estimates. Nicolet considers accounting estimates to be critical to reported financial results if the accounting estimate requires management to make assumptions about matters that are highly uncertain and different estimates that are reasonably likely to occur from period to period, could have a material impact on the financial statements. The accounting estimates we consider to be critical include business combinations and the valuation of loans acquired, the determination of the allowance for credit losses, and income taxes. There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying critical accounting policies and developing critical accounting estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Recent Accounting Pronouncements Adopted and Future Accounting Pronouncements | Recent Accounting Pronouncements Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures . This ASU eliminated the accounting guidance for TDRs by creditors and enhanced the disclosure requirements for loan modifications to borrowers experiencing financial difficulty. The ASU also requires public business entities to expand the vintage disclosures to include gross charge-offs by year of origination. The updated guidance is effective for fiscal years beginning after December 15, 2022. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements; however, it resulted in new disclosures. See Note 6 for the new disclosures. Future Accounting Pronouncements In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. This ASU also requires specific disclosures of investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The updated guidance is effective for fiscal years beginning after December 15, 2023. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, |
Reclassifications | Reclassifications Certain amounts in the 2022 consolidated financial statements have been reclassified to conform to the 2023 presentation. These reclassifications were not material and did not impact previously reported net income or comprehensive income. |
Allowance for Credit Losses - Loans | The ACL-Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. To assess the appropriateness of the ACL-Loans, management applies an allocation methodology which focuses on evaluation of qualitative and environmental factors, including but not limited to: (i) evaluation of facts and issues related to specific loans; (ii) management’s ongoing review and grading of the loan portfolio; (iii) consideration of historical loan loss and delinquency experience on each portfolio segment; (iv) trends in past due and nonperforming loans; (v) the risk characteristics of the various loan segments; (vi) changes in the size and character of the loan portfolio; (vii) concentrations of loans to specific borrowers or industries; (viii) existing economic conditions; (ix) the fair value of underlying collateral; and (x) other qualitative and quantitative factors which could affect expected credit losses. Assessing these numerous factors involves significant judgment. Management allocates the ACL-Loans by pools of risk within each loan portfolio segment. The allocation methodology consists of the following components. First, a specific reserve is established for individually evaluated credit-deteriorated loans, which management defines as nonaccrual credit relationships over $250,000, collateral dependent loans, purchased credit deteriorated loans, and other loans with evidence of credit deterioration. The specific reserve in the ACL-Loans for these credit deteriorated loans is equal to the aggregate collateral or discounted cash flow shortfall. Management allocates the ACL-Loans with historical loss rates by loan segment. The loss factors are measured on a quarterly basis and applied to each loan segment based on current loan balances and projected for their expected remaining life. Next, management allocates the ACL-Loans using the qualitative factors mentioned above. Consideration is given to those current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience of each loan segment. Lastly, management considers reasonable and supportable forecasts to assess the collectability of future cash flows. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of the Assets Acquired and Liabilities Assumed Including Purchase Price Allocation | A summary of the assets acquired and liabilities assumed in the Charter transaction, as of the acquisition date, including the purchase price allocation was as follows. (In millions, except share data) Acquired from Charter Fair Value Adjustments Estimated Fair Value Assets Acquired: Cash and cash equivalents $ 10 $ — $ 10 Investment securities 218 — 218 Loans 848 (21) 827 ACL-Loans (9) 7 (2) Premises and equipment 9 1 10 BOLI 29 — 29 Core deposit intangible — 19 19 Other assets 5 5 10 Total assets $ 1,110 $ 11 $ 1,121 Liabilities Assumed: Deposits $ 869 $ 1 $ 870 Borrowings 161 — 161 Other liabilities 3 — 3 Total liabilities $ 1,033 $ 1 $ 1,034 Net assets acquired $ 87 Purchase Price: Nicolet common stock issued (in shares) 1,262,360 Value of Nicolet common stock consideration $ 98 Cash consideration paid 39 Total purchase price $ 137 Goodwill $ 50 (In thousands) August 26, 2022 Purchase price of PCD loans at acquisition $ 24,031 Allowance for credit losses on PCD loans at acquisition 1,709 Par value of PCD acquired loans at acquisition $ 25,740 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2023 2022 2023 2022 Net income $ 17,158 $ 18,510 $ 30,855 $ 66,659 Weighted average common shares outstanding 14,740 13,890 14,716 13,648 Effect of dilutive common stock awards 360 420 328 479 Diluted weighted average common shares outstanding 15,100 14,310 15,044 14,127 Basic earnings per common share* $ 1.16 $ 1.33 $ 2.10 $ 4.88 Diluted earnings per common share* $ 1.14 $ 1.29 $ 2.05 $ 4.72 *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year to date earnings per share data. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Assumption for Stock Option | The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Nine Months Ended September 30, 2023 2022 Dividend yield 1.6 % — % Expected volatility 30 % 30 % Risk-free interest rate 3.74 % 3.03 % Expected average life 7 years 7 years Weighted average per share fair value of options $ 20.94 $ 30.99 |
Schedule of Stock Options Activity | A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Weighted Weighted Average Aggregate Outstanding - December 31, 2022 1,853,064 $ 59.79 Granted 7,000 64.36 Exercise of stock options * (115,179) 40.02 Forfeited (25,000) 84.98 Outstanding - September 30, 2023 1,719,885 $ 60.76 5.3 $ 20,354 Exercisable - September 30, 2023 1,260,942 $ 55.09 4.5 $ 20,217 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. For the nine months ended September 30, 2023, 54,517 such shares were withheld by the Company. |
Schedule of Restricted Stock Activity | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Restricted Shares Outstanding - December 31, 2022 $ 76.49 73,490 Granted 55.65 11,674 Vested 66.40 (24,574) Outstanding - September 30, 2023 $ 76.57 60,590 |
Securities and Other Investme_2
Securities and Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities AFS | The amortized cost and fair value of securities AFS and HTM are summarized as follows. September 30, 2023 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Securities AFS: U.S. Treasury securities $ 42,190 $ — $ 4,686 $ 37,504 U.S. government agency securities 8,293 2 74 8,221 State, county and municipals 387,259 69 45,998 341,330 Mortgage-backed securities 355,906 — 49,497 306,409 Corporate debt securities 111,245 — 10,883 100,362 Total securities AFS $ 904,893 $ 71 $ 111,138 $ 793,826 December 31, 2022 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Securities AFS: U.S. Treasury securities $ 192,116 $ — $ 8,286 $ 183,830 U.S. government agency securities 2,133 — 33 2,100 State, county and municipals 433,733 123 35,668 398,188 Mortgage-backed securities 227,650 10 26,728 200,932 Corporate debt securities 140,712 3 8,147 132,568 Total securities AFS $ 996,344 $ 136 $ 78,862 $ 917,618 Securities HTM: U.S. Treasury securities $ 497,648 $ — $ 35,722 $ 461,926 U.S. government agency securities 8,744 46 — 8,790 State, county and municipals 34,874 — 3,349 31,525 Mortgage-backed securities 137,862 — 16,751 121,111 Total securities HTM $ 679,128 $ 46 $ 55,822 $ 623,352 |
Schedule of Amortized Cost and Fair Value of Securities HTM | The amortized cost and fair value of securities AFS and HTM are summarized as follows. September 30, 2023 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Securities AFS: U.S. Treasury securities $ 42,190 $ — $ 4,686 $ 37,504 U.S. government agency securities 8,293 2 74 8,221 State, county and municipals 387,259 69 45,998 341,330 Mortgage-backed securities 355,906 — 49,497 306,409 Corporate debt securities 111,245 — 10,883 100,362 Total securities AFS $ 904,893 $ 71 $ 111,138 $ 793,826 December 31, 2022 (in thousands) Amortized Cost Gross Gross Estimated Fair Value Securities AFS: U.S. Treasury securities $ 192,116 $ — $ 8,286 $ 183,830 U.S. government agency securities 2,133 — 33 2,100 State, county and municipals 433,733 123 35,668 398,188 Mortgage-backed securities 227,650 10 26,728 200,932 Corporate debt securities 140,712 3 8,147 132,568 Total securities AFS $ 996,344 $ 136 $ 78,862 $ 917,618 Securities HTM: U.S. Treasury securities $ 497,648 $ — $ 35,722 $ 461,926 U.S. government agency securities 8,744 46 — 8,790 State, county and municipals 34,874 — 3,349 31,525 Mortgage-backed securities 137,862 — 16,751 121,111 Total securities HTM $ 679,128 $ 46 $ 55,822 $ 623,352 |
Schedule of Proceeds and Realized Gains or Losses from the Sale of AFS and HTM Securities | Proceeds and realized gains or losses from the sale of AFS and HTM securities were as follows. Nine Months Ended September 30, (in thousands) 2023 2022 Securities AFS: Gross gains $ 268 $ 20 Gross losses (605) (5) Gains (losses) on sales of securities AFS, net $ (337) $ 15 Proceeds from sales of securities AFS $ 28,992 $ 23,984 Securities HTM: Gross gains $ — $ — Gross losses (37,723) — Gains (losses) on sales of securities HTM, net $ (37,723) $ — Proceeds from sales of securities HTM $ 460,051 $ — |
Schedule of Unrealized Losses and Fair Value of Investment Securities | The following table presents gross unrealized losses and the related estimated fair value of investment securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position. September 30, 2023 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. Treasury securities $ — $ — $ 37,504 $ 4,686 $ 37,504 $ 4,686 4 U.S. government agency securities 5,396 32 1,798 42 7,194 74 10 State, county and municipals 66,415 5,460 263,740 40,538 330,155 45,998 710 Mortgage-backed securities 19,959 268 286,450 49,229 306,409 49,497 451 Corporate debt securities 3,336 223 92,607 10,660 95,943 10,883 67 Total $ 95,106 $ 5,983 $ 682,099 $ 105,155 $ 777,205 $ 111,138 1,242 December 31, 2022 Less than 12 months 12 months or more Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Number of Securities AFS: U.S. Treasury securities $ 448 $ 14 $ 183,382 $ 8,272 $ 183,830 $ 8,286 9 U.S. government agency securities 2,083 32 17 1 2,100 33 9 State, county and municipals 277,546 18,041 86,569 17,627 364,115 35,668 812 Mortgage-backed securities 102,108 11,320 95,614 15,408 197,722 26,728 376 Corporate debt securities 114,887 6,186 12,938 1,961 127,825 8,147 90 Total $ 497,072 $ 35,593 $ 378,520 $ 43,269 $ 875,592 $ 78,862 1,296 Securities HTM: U.S. Treasury securities $ — $ — $ 461,926 $ 35,722 $ 461,926 $ 35,722 6 State, county and municipals 17,591 1,594 11,654 1,755 29,245 3,349 58 Mortgage-backed securities 68,108 8,029 53,003 8,722 121,111 16,751 106 Total $ 85,699 $ 9,623 $ 526,583 $ 46,199 $ 612,282 $ 55,822 170 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The amortized cost and fair value of investment securities by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; as this is particularly inherent in mortgage-backed securities, these securities are not included in the maturity categories below. As of September 30, 2023 Securities AFS (in thousands) Amortized Cost Fair Value Due in less than one year $ 65,155 $ 64,470 Due in one year through five years 162,719 147,803 Due after five years through ten years 207,337 177,658 Due after ten years 113,776 97,486 548,987 487,417 Mortgage-backed securities 355,906 306,409 Total investment securities $ 904,893 $ 793,826 |
Schedule of Carrying Value of other Investments | The carrying value of other investments are summarized as follows. September 30, 2023 December 31, 2022 (in thousands) Amount Amount Federal Reserve Bank stock $ 33,050 $ 32,219 Federal Home Loan Bank (“FHLB”) stock 9,674 18,625 Equity securities with readily determinable fair values 3,893 4,376 Other investments 11,750 10,066 Total other investments $ 58,367 $ 65,286 |
Loans, Allowance for Credit L_2
Loans, Allowance for Credit Losses - Loans, and Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loan Composition | The loan composition is summarized as follows. September 30, 2023 December 31, 2022 (in thousands) Amount % of Amount % of Commercial & industrial $ 1,237,789 20 % $ 1,304,819 21 % Owner-occupied commercial real estate (“CRE”) 971,397 16 954,599 15 Agricultural 1,108,261 18 1,088,607 18 CRE investment 1,130,938 18 1,149,949 19 Construction & land development 326,747 5 318,600 5 Residential construction 76,289 1 114,392 2 Residential first mortgage 1,136,748 18 1,016,935 16 Residential junior mortgage 195,432 3 177,332 3 Retail & other 55,656 1 55,266 1 Loans 6,239,257 100 % 6,180,499 100 % Less allowance for credit losses - Loans (“ACL-Loans”) 63,160 61,829 Loans, net $ 6,176,097 $ 6,118,670 Allowance for credit losses - Loans to loans 1.01 % 1.00 % |
Schedule of Allowance for Credit Losses | A roll forward of the allowance for credit losses - loans is summarized as follows. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 December 31, 2022 Beginning balance $ 62,811 $ 50,655 $ 61,829 $ 49,672 $ 49,672 ACL on PCD loans acquired — 1,709 — 1,709 1,937 Provision for credit losses 450 8,200 1,650 9,100 10,950 Charge-offs (346) (300) (1,091) (442) (1,033) Recoveries 245 84 772 309 303 Net (charge-offs) recoveries (101) (216) (319) (133) (730) Ending balance $ 63,160 $ 60,348 $ 63,160 $ 60,348 $ 61,829 The following tables present the balance and activity in the ACL-Loans by portfolio segment. Nine Months Ended September 30, 2023 (in thousands) Commercial Owner- Agricultural CRE Construction & land Residential Residential Residential Retail Total ACL-Loans Beginning balance $ 16,350 $ 9,138 $ 9,762 $ 12,744 $ 2,572 $ 1,412 $ 6,976 $ 1,846 $ 1,029 $ 61,829 Provision (1,518) 48 2,467 46 96 (484) 336 295 364 1,650 Charge-offs (403) (301) (66) — — — — (96) (225) (1,091) Recoveries 518 241 3 — — — 3 — 7 772 Net (charge-offs) recoveries 115 (60) (63) — — — 3 (96) (218) (319) Ending balance $ 14,947 $ 9,126 $ 12,166 $ 12,790 $ 2,668 $ 928 $ 7,315 $ 2,045 $ 1,175 $ 63,160 As % of ACL-Loans 24 % 14 % 19 % 20 % 4 % 2 % 12 % 3 % 2 % 100 % Year Ended December 31, 2022 (in thousands) Commercial Owner- Agricultural CRE Construction Residential Residential Residential Retail & ACL-Loans Beginning balance $ 12,613 $ 7,222 $ 9,547 $ 8,462 $ 1,812 $ 900 $ 6,844 $ 1,340 $ 932 $ 49,672 ACL on PCD loans 1,408 384 — 38 2 — 93 12 — 1,937 Provision 2,415 2,087 215 4,075 758 512 96 493 299 10,950 Charge-offs (190) (555) — — — — (65) — (223) (1,033) Recoveries 104 — — 169 — — 8 1 21 303 Net (charge-offs) recoveries (86) (555) — 169 — — (57) 1 (202) (730) Ending balance $ 16,350 $ 9,138 $ 9,762 $ 12,744 $ 2,572 $ 1,412 $ 6,976 $ 1,846 $ 1,029 $ 61,829 As % of ACL-Loans 26 % 15 % 16 % 21 % 4 % 2 % 11 % 3 % 2 % 100 % |
Schedule of Provision for Credit Losses | The following table presents the components of the provision for credit losses. Three Months Ended Nine Months Ended Year Ended (in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 December 31, 2022 Provision for credit losses on: Loans $ 450 $ 8,200 $ 1,650 $ 9,100 $ 10,950 Unfunded commitments — 400 — 550 550 Investment securities — — 2,340 — — Total $ 450 $ 8,600 $ 3,990 $ 9,650 $ 11,500 |
Schedule of Collateral Dependent Loans by Portfolio Segment | The following tables present collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation. September 30, 2023 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,402 $ 3,402 $ 2,351 $ 1,051 $ 230 Owner-occupied CRE 4,827 — 4,827 4,827 — — Agricultural 7,629 5,811 13,440 8,530 4,910 123 CRE investment 942 — 942 552 390 19 Construction & land development — — — — — — Residential first mortgage 686 — 686 686 — — Residential junior mortgage — — — — — — Total loans $ 14,084 $ 9,213 $ 23,297 $ 16,946 $ 6,351 $ 372 December 31, 2022 Collateral Type (in thousands) Real Estate Other Business Assets Total Without an Allowance With an Allowance Allowance Allocation Commercial & industrial $ — $ 3,475 $ 3,475 $ 1,927 $ 1,548 $ 595 Owner-occupied CRE 4,907 — 4,907 4,699 208 53 Agricultural 13,758 6,458 20,216 14,358 5,858 261 CRE investment 2,713 — 2,713 979 1,734 212 Construction & land development 670 — 670 670 — — Residential first mortgage 91 — 91 91 — — Total loans $ 22,139 $ 9,933 $ 32,072 $ 22,724 $ 9,348 $ 1,121 |
Schedule of Past Due Loans by Portfolio Segment | The following tables present past due loans by portfolio segment. September 30, 2023 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 281 $ 5,192 $ 1,232,316 $ 1,237,789 Owner-occupied CRE 76 5,602 965,719 971,397 Agricultural 151 13,458 1,094,652 1,108,261 CRE investment 240 1,100 1,129,598 1,130,938 Construction & land development 23 177 326,547 326,747 Residential construction — — 76,289 76,289 Residential first mortgage 1,710 3,812 1,131,226 1,136,748 Residential junior mortgage 67 92 195,273 195,432 Retail & other 729 74 54,853 55,656 Total loans $ 3,277 $ 29,507 $ 6,206,473 $ 6,239,257 Percent of total loans 0.1 % 0.5 % 99.4 % 100.0 % December 31, 2022 (in thousands) 30-89 Days Past 90 Days & Over or nonaccrual Current Total Commercial & industrial $ 210 $ 3,328 $ 1,301,281 $ 1,304,819 Owner-occupied CRE 833 5,647 948,119 954,599 Agricultural 20 20,416 1,068,171 1,088,607 CRE investment — 3,832 1,146,117 1,149,949 Construction & land development — 771 317,829 318,600 Residential construction — — 114,392 114,392 Residential first mortgage 3,628 3,780 1,009,527 1,016,935 Residential junior mortgage 236 224 176,872 177,332 Retail & other 261 82 54,923 55,266 Total loans $ 5,188 $ 38,080 $ 6,137,231 $ 6,180,499 Percent of total loans 0.1 % 0.6 % 99.3 % 100.0 % |
Schedule of Nonaccrual Loans by Portfolio Segment | The following table presents nonaccrual loans by portfolio segment. September 30, 2023 December 31, 2022 (in thousands) Nonaccrual Loans % of Total Nonaccrual Loans % of Total Commercial & industrial $ 5,192 17 % $ 3,328 9 % Owner-occupied CRE 5,602 19 5,647 15 Agricultural 13,458 46 20,416 53 CRE investment 1,100 4 3,832 10 Construction & land development 177 1 771 2 Residential construction — — — — Residential first mortgage 3,812 13 3,780 10 Residential junior mortgage 92 — 224 1 Retail & other 74 — 82 — Nonaccrual loans $ 29,507 100 % $ 38,080 100 % Percent of total loans 0.5 % 0.6 % |
Schedule of Loans by Risk Categories and Gross Charge-offs | The following tables present total loans by risk categories and gross charge-offs by year of origination. Acquired loans have been included based upon the actual origination date. September 30, 2023 Amortized Cost Basis by Origination Year (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 152,385 $ 254,446 $ 184,778 $ 73,488 $ 53,351 $ 96,269 $ 334,059 $ — $ 1,148,776 Grade 5 5,350 10,296 6,779 2,908 1,246 7,364 24,477 — 58,420 Grade 6 — 591 612 194 4 1,028 1,850 — 4,279 Grade 7 4,444 4,600 2,653 2,372 1,952 7,205 3,088 — 26,314 Total $ 162,179 $ 269,933 $ 194,822 $ 78,962 $ 56,553 $ 111,866 $ 363,474 $ — $ 1,237,789 Current period gross charge-offs $ — $ (77) $ (114) $ — $ — $ (197) $ (15) $ — $ (403) Owner-occupied CRE Grades 1-4 $ 101,687 $ 157,461 $ 186,745 $ 98,057 $ 90,223 $ 277,024 $ 3,114 $ — $ 914,311 Grade 5 949 3,754 9,854 5,362 1,481 15,158 212 — 36,770 Grade 6 — — 348 1,545 605 150 — — 2,648 Grade 7 — 218 1,024 6,916 354 8,861 295 — 17,668 Total $ 102,636 $ 161,433 $ 197,971 $ 111,880 $ 92,663 $ 301,193 $ 3,621 $ — $ 971,397 Current period gross charge-offs $ — $ — $ — $ — $ — $ (301) $ — $ — $ (301) Agricultural Grades 1-4 $ 72,777 $ 282,254 $ 136,796 $ 80,960 $ 23,694 $ 144,223 $ 252,202 $ — $ 992,906 Grade 5 2,809 11,201 6,003 725 384 33,751 14,316 — 69,189 Grade 6 — 134 1,114 — 51 2,293 207 — 3,799 Grade 7 3,851 6,898 6,455 492 1,865 14,764 8,042 — 42,367 Total $ 79,437 $ 300,487 $ 150,368 $ 82,177 $ 25,994 $ 195,031 $ 274,767 $ — $ 1,108,261 Current period gross charge-offs $ — $ — $ — $ — $ — $ (66) $ — $ — $ (66) CRE investment Grades 1-4 $ 27,123 $ 183,799 $ 247,563 $ 172,237 $ 117,114 $ 294,916 $ 11,445 $ — $ 1,054,197 Grade 5 2,802 7,859 14,857 8,634 10,066 21,927 49 — 66,194 Grade 6 — — — — — 1,357 65 — 1,422 Grade 7 — 55 21 — 1,043 8,006 — — 9,125 Total $ 29,925 $ 191,713 $ 262,441 $ 180,871 $ 128,223 $ 326,206 $ 11,559 $ — $ 1,130,938 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land development Grades 1-4 $ 37,180 $ 153,809 $ 88,212 $ 9,610 $ 5,288 $ 28,329 $ 2,070 $ — $ 324,498 Grade 5 — 26 127 1,275 508 89 — — 2,025 Grade 6 — — — — — — — — — Grade 7 47 — — — — 92 85 — 224 Total $ 37,227 $ 153,835 $ 88,339 $ 10,885 $ 5,796 $ 28,510 $ 2,155 $ — $ 326,747 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential construction Grades 1-4 $ 35,996 $ 32,539 $ 5,279 $ 1,101 $ 125 $ 1,209 $ 40 $ — $ 76,289 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 35,996 $ 32,539 $ 5,279 $ 1,101 $ 125 $ 1,209 $ 40 $ — $ 76,289 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential first mortgage Grades 1-4 $ 125,176 $ 377,475 $ 256,628 $ 134,035 $ 59,281 $ 168,739 $ 614 $ 3 $ 1,121,951 Grade 5 — 1,296 1,259 1,262 2,538 2,684 — — 9,039 Grade 6 — — — — — — — — — Grade 7 — 150 467 485 1,074 3,582 — — 5,758 Total $ 125,176 $ 378,921 $ 258,354 $ 135,782 $ 62,893 $ 175,005 $ 614 $ 3 $ 1,136,748 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential junior mortgage Grades 1-4 $ 12,538 $ 7,607 $ 3,915 $ 4,360 $ 2,848 $ 4,110 $ 153,322 $ 6,446 $ 195,146 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — 32 202 — — 14 38 — 286 Total $ 12,538 $ 7,639 $ 4,117 $ 4,360 $ 2,848 $ 4,124 $ 153,360 $ 6,446 $ 195,432 Current period gross charge-offs $ — $ — $ — $ — $ — $ (96) $ — $ — $ (96) Retail & other Grades 1-4 $ 7,281 $ 8,932 $ 6,202 $ 2,925 $ 2,045 $ 4,042 $ 24,107 $ — $ 55,534 Grade 5 — — 18 — — — — — 18 Grade 6 — — — — — — — — — Grade 7 — — 26 10 1 67 — — 104 Total $ 7,281 $ 8,932 $ 6,246 $ 2,935 $ 2,046 $ 4,109 $ 24,107 $ — $ 55,656 Current period gross charge-offs $ (6) $ (1) $ — $ (1) $ — $ (52) $ (165) $ — $ (225) Total loans $ 592,395 $ 1,505,432 $ 1,167,937 $ 608,953 $ 377,141 $ 1,147,253 $ 833,697 $ 6,449 $ 6,239,257 December 31, 2022 Amortized Cost Basis by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving to Term TOTAL Commercial & industrial Grades 1-4 $ 317,394 $ 226,065 $ 101,374 $ 68,884 $ 50,189 $ 77,589 $ 360,978 $ — $ 1,202,473 Grade 5 9,938 5,902 10,811 1,530 3,986 4,562 20,617 — 57,346 Grade 6 1,459 2,283 629 511 402 11,653 14,047 — 30,984 Grade 7 556 293 3,211 2,990 775 1,070 5,121 — 14,016 Total $ 329,347 $ 234,543 $ 116,025 $ 73,915 $ 55,352 $ 94,874 $ 400,763 $ — $ 1,304,819 Current period gross charge-offs $ (38) $ (41) $ (2) $ — $ (109) $ — $ — $ — $ (190) Owner-occupied CRE Grades 1-4 $ 151,391 $ 190,313 $ 105,156 $ 100,606 $ 91,479 $ 252,574 $ 6,734 $ — $ 898,253 Grade 5 5,241 3,192 4,287 2,163 4,791 14,632 348 — 34,654 Grade 6 — — 763 2,361 — 877 — — 4,001 Grade 7 227 706 6,344 616 — 9,798 — — 17,691 Total $ 156,859 $ 194,211 $ 116,550 $ 105,746 $ 96,270 $ 277,881 $ 7,082 $ — $ 954,599 Current period gross charge-offs $ — $ — $ — $ — $ — $ (555) $ — $ — $ (555) Agricultural Grades 1-4 $ 275,208 $ 145,272 $ 85,413 $ 25,463 $ 19,687 $ 130,849 $ 249,033 $ — $ 930,925 Grade 5 13,295 18,178 2,694 1,992 517 43,927 21,199 — 101,802 Grade 6 115 1,457 28 33 — 5,258 429 — 7,320 Grade 7 7,165 2,632 720 1,977 4,611 19,948 11,507 — 48,560 Total $ 295,783 $ 167,539 $ 88,855 $ 29,465 $ 24,815 $ 199,982 $ 282,168 $ — $ 1,088,607 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — CRE investment Grades 1-4 $ 205,930 $ 229,252 $ 192,527 $ 134,301 $ 79,649 $ 248,595 $ 11,383 $ — $ 1,101,637 Grade 5 567 1,649 3,578 4,266 3,086 24,897 — — 38,043 Grade 6 — — — 1,170 2,396 2,483 206 — 6,255 Grade 7 — — 121 299 245 3,140 209 — 4,014 Total $ 206,497 $ 230,901 $ 196,226 $ 140,036 $ 85,376 $ 279,115 $ 11,798 $ — $ 1,149,949 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction & land development Grades 1-4 $ 104,804 $ 140,727 $ 12,188 $ 9,747 $ 23,811 $ 13,138 $ 13,235 $ — $ 317,650 Grade 5 37 — — 14 — 95 — — 146 Grade 6 — — — — — — — — — Grade 7 33 — — — — 771 — — 804 Total $ 104,874 $ 140,727 $ 12,188 $ 9,761 $ 23,811 $ 14,004 $ 13,235 $ — $ 318,600 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential construction Grades 1-4 $ 92,417 $ 16,774 $ 966 $ 123 $ 336 $ 229 $ 3,547 $ — $ 114,392 Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Total $ 92,417 $ 16,774 $ 966 $ 123 $ 336 $ 229 $ 3,547 $ — $ 114,392 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential first mortgage Grades 1-4 $ 318,628 $ 272,011 $ 147,857 $ 68,975 $ 31,208 $ 162,153 $ 2,080 $ 3 $ 1,002,915 Grade 5 1,494 758 997 1,803 2,272 465 — — 7,789 Grade 6 — — — 711 — — — — 711 Grade 7 154 329 188 349 197 4,303 — — 5,520 Total $ 320,276 $ 273,098 $ 149,042 $ 71,838 $ 33,677 $ 166,921 $ 2,080 $ 3 $ 1,016,935 Current period gross charge-offs $ — $ — $ — $ — $ — $ (65) $ — $ — $ (65) Residential junior mortgage Grades 1-4 $ 10,119 $ 4,580 $ 5,207 $ 3,151 $ 1,573 $ 3,409 $ 142,784 $ 5,762 $ 176,585 Grade 5 — — — — — 143 165 — 308 Grade 6 — — — — — — — — — Grade 7 — 206 — — — 24 209 — 439 Total $ 10,119 $ 4,786 $ 5,207 $ 3,151 $ 1,573 $ 3,576 $ 143,158 $ 5,762 $ 177,332 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Retail & other Grades 1-4 $ 12,318 $ 8,957 $ 4,221 $ 3,188 $ 1,035 $ 24,950 $ 492 $ — $ 55,161 Grade 5 — 23 — — — — — — 23 Grade 6 — — — — — — — — — Grade 7 — 23 22 2 30 5 — — 82 Total $ 12,318 $ 9,003 $ 4,243 $ 3,190 $ 1,065 $ 24,955 $ 492 $ — $ 55,266 Current period gross charge-offs $ — $ (1) $ (6) $ (1) $ — $ — $ (215) $ — $ (223) Total loans $ 1,528,490 $ 1,271,582 $ 689,302 $ 437,225 $ 322,275 $ 1,061,537 $ 864,323 $ 5,765 $ 6,180,499 |
Schedule of Aggregated by Portfolio Segment and Type of Modification | The following table presents the amortized cost of loans that were both experiencing financial difficulty and were modified during the nine months ended September 30, 2023, aggregated by portfolio segment and type of modification. (in thousands) Payment Delay Term Extension Interest Rate Reduction Term Extension & Interest Rate Reduction Total % of Total Loans Commercial & industrial $ 433 $ — $ 87 $ — $ 520 0.04 % Owner-occupied CRE — — — — — — % Agricultural 107 — — — 107 0.01 % CRE investment — — — — — — % Construction & land development — — — — — — % Residential first mortgage — — — — — — % Total $ 540 $ — $ 87 $ — $ 627 0.01 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles and Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | A summary of goodwill and other intangibles was as follows. (in thousands) September 30, 2023 December 31, 2022 Goodwill $ 367,387 $ 367,387 Core deposit intangibles 26,842 32,701 Customer list intangibles 1,979 2,350 Other intangibles 28,821 35,051 Goodwill and other intangibles, net $ 396,208 $ 402,438 |
Schedule of Goodwill | Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Goodwill: Goodwill at beginning of year $ 367,387 $ 317,189 Acquisitions — 49,970 Purchase accounting adjustment — 228 Goodwill at end of period $ 367,387 $ 367,387 |
Schedule of Other Intangible Assets | A summary of other intangible assets was as follows. During 2022, core deposit intangibles increased due to the Charter acquisition. Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Core deposit intangibles: Gross carrying amount $ 60,724 $ 60,724 Accumulated amortization (33,882) (28,023) Net book value $ 26,842 $ 32,701 Additions during the period $ — $ 19,364 Amortization during the period $ 5,859 $ 6,108 Customer list intangibles: Gross carrying amount $ 5,523 $ 5,523 Accumulated amortization (3,544) (3,173) Net book value $ 1,979 $ 2,350 Amortization during the period $ 371 $ 508 |
Schedule of Mortgage and Loan Servicing Rights | A summary of the changes in the mortgage servicing rights asset was as follows. Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Mortgage servicing rights asset: MSR asset at beginning of year $ 13,080 $ 13,636 Capitalized MSR 1,104 2,327 Amortization during the period (2,248) (2,883) MSR asset at end of period $ 11,936 $ 13,080 Valuation allowance at beginning of year $ (500) $ (1,200) Reversals 500 700 Valuation allowance at end of period $ — $ (500) MSR asset, net $ 11,936 $ 12,580 Fair value of MSR asset at end of period $ 15,847 $ 17,215 Residential mortgage loans serviced for others $ 1,610,318 $ 1,637,109 Net book value of MSR asset to loans serviced for others 0.74 % 0.77 % Nine Months Ended Year Ended (in thousands) September 30, 2023 December 31, 2022 Loan servicing rights asset: LSR asset at beginning of year $ 11,039 $ 20,055 Amortization during the period (1,656) (9,016) LSR asset at end of period $ 9,383 $ 11,039 Agricultural loans serviced for others $ 502,901 $ 538,392 |
Schedule of Estimated Future Amortization Expense for Amortizing Intangible Assets and the MSR Asset | The following table shows the estimated future amortization expense for amortizing intangible assets and the servicing assets. The projections are based on existing asset balances, the current interest rate environment and estimated prepayment speeds as of September 30, 2023. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable. (in thousands) Core deposit Customer list MSR asset LSR asset Year ending December 31, 2023 (remaining three months) $ 1,730 $ 112 $ 687 $ 552 2024 6,298 449 2,661 1,962 2025 5,161 449 1,978 1,717 2026 3,983 249 1,457 1,472 2027 3,218 166 1,457 1,227 2028 2,622 166 1,456 981 Thereafter 3,830 388 2,240 1,472 Total $ 26,842 $ 1,979 $ 11,936 $ 9,383 |
Short and Long-Term Borrowings
Short and Long-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-term Borrowings | The components of long-term borrowings were as follows. (in thousands) September 30, 2023 December 31, 2022 FHLB advances $ 5,000 $ 33,000 Junior subordinated debentures 40,344 39,720 Subordinated notes 152,410 152,622 Total long-term borrowings $ 197,754 $ 225,342 |
Schedule of Junior Subordinated Debentures and Subordinated Notes | The following table shows the breakdown of junior subordinated debentures and subordinated notes. As of September 30, 2023 As of December 31, 2022 (in thousands) Maturity Interest Par Unamortized Premium /(Discount) / Debt Issue Costs (1) Carrying Interest Carrying Junior Subordinated Debentures: Mid-Wisconsin Statutory Trust I (2) 12/15/2035 7.10 % $ 10,310 $ (2,429) $ 7,881 6.20 % $ 7,734 Baylake Capital Trust II (3) 9/30/2036 7.01 % 16,598 (2,997) 13,601 6.08 % 13,424 First Menasha Statutory Trust (4) 3/17/2034 8.46 % 5,155 (454) 4,701 7.53 % 4,668 County Bancorp Statutory Trust II (5) 9/15/2035 7.20 % 6,186 (792) 5,394 6.30 % 5,277 County Bancorp Statutory Trust III (6) 6/15/2036 7.36 % 6,186 (850) 5,336 6.46 % 5,219 Fox River Valley Capital Trust (7) 5/30/2033 6.40 % 3,610 (179) 3,431 6.40 % 3,398 Total $ 48,045 $ (7,701) $ 40,344 $ 39,720 Subordinated Notes: Subordinated Notes due 2031 7/15/2031 3.13 % $ 100,000 $ (576) $ 99,424 3.13 % $ 99,267 County Subordinated Notes due 2028 6/1/2028 8.56 % 30,000 — 30,000 5.88 % 30,119 County Subordinated Notes due 2030 6/30/2030 7.00 % 22,400 586 22,986 7.00 % 23,236 Total $ 152,400 $ 10 $ 152,410 $ 152,622 (1) Represents the remaining unamortized premium or discount on debt issuances assumed in acquisitions, and represents the unamortized debt issue costs for the debt issued directly by Nicolet. (2) The debentures, assumed in April 2013 as the result of an acquisition, have a floating rate of three-month SOFR plus 1.43%, adjusted quarterly. * (3) The debentures, assumed in April 2016 as a result of an acquisition, have a floating rate of three-month SOFR plus 1.35%, adjusted quarterly. * (4) The debentures, assumed in April 2017 as the result of an acquisition, have a floating rate of three-month SOFR plus 2.79%, adjusted quarterly. * (5) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month SOFR plus 1.53%, adjusted quarterly. * (6) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of three-month SOFR plus 1.69%, adjusted quarterly. * (7) The debentures, assumed in December 2021 as the result of an acquisition, have a floating rate of 5-year swap rate plus 3.40%, which resets every five years. * The floating rate on this debenture was originally based on three-month LIBOR. Effective with the cessation of LIBOR, the floating rate on this debenture is now based on three-month CME Term SOFR, plus the spread adjustment of 0.26161%. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of the Contract or Notional Amount of Exposure to Off-balance-sheet Risk | A summary of the contract or notional amount of the Company’s exposure to off-balance sheet risk was as follows. (in thousands) September 30, 2023 December 31, 2022 Commitments to extend credit $ 1,810,068 $ 1,850,601 Financial standby letters of credit 18,235 26,530 Performance standby letters of credit 15,814 9,375 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Recurring Basis: Total Level 1 Level 2 Level 3 September 30, 2023 U.S. Treasury securities $ 37,504 $ — $ 37,504 $ — U.S. government agency securities 8,221 — 8,221 — State, county and municipals 341,330 — 339,949 1,381 Mortgage-backed securities 306,409 — 305,438 971 Corporate debt securities 100,362 — 97,064 3,298 Securities AFS $ 793,826 $ — $ 788,176 $ 5,650 Other investments (equity securities) $ 3,893 $ 3,893 $ — $ — Derivative assets $ 186 $ — $ — $ 186 Derivative liabilities $ — $ — $ — $ — December 31, 2022 U.S. Treasury securities $ 183,830 $ — $ 183,830 $ — U.S. government agency securities 2,100 — 2,100 — State, county and municipals 398,188 — 396,315 1,873 Mortgage-backed securities 200,932 — 199,951 981 Corporate debt securities 132,568 — 127,269 5,299 Securities AFS $ 917,618 $ — $ 909,465 $ 8,153 Other investments (equity securities) $ 4,376 $ 4,376 $ — $ — Derivative assets $ 60 $ — $ — $ 60 Derivative liabilities $ 10 $ — $ — $ 10 |
Schedule of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The following table presents the changes in Level 3 securities AFS measured at fair value on a recurring basis. (in thousands) Nine Months Ended Year Ended Level 3 Fair Value Measurements: September 30, 2023 December 31, 2022 Balance at beginning of year $ 8,153 $ 8,065 Acquired balance — 750 Maturities / Paydowns (2,469) (451) Unrealized gain / (loss) (34) (211) Balance at end of period $ 5,650 $ 8,153 |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall. (in thousands) Fair Value Measurements Using Measured at Fair Value on a Nonrecurring Basis: Total Level 1 Level 2 Level 3 September 30, 2023 Collateral dependent loans $ 22,925 $ — $ — $ 22,925 Other real estate owned (“OREO”) 2,031 — — 2,031 MSR asset 11,936 — — 11,936 December 31, 2022 Collateral dependent loans $ 30,951 $ — $ — $ 30,951 OREO 1,975 — — 1,975 MSR asset 12,580 — — 12,580 |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are shown below. September 30, 2023 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 545,880 $ 545,880 $ 545,880 $ — $ — Certificates of deposit in other banks 7,598 7,519 — 7,519 — Securities AFS 793,826 793,826 — 788,176 5,650 Other investments, including equity securities 58,367 58,367 3,893 43,973 10,501 Loans held for sale 6,500 6,641 — 6,641 — Loans, net 6,176,097 5,908,160 — — 5,908,160 MSR asset 11,936 15,847 — — 15,847 LSR asset 9,383 9,383 — — 9,383 Accrued interest receivable 24,166 24,166 24,166 — — Financial liabilities: Deposits $ 7,182,388 $ 7,164,174 $ — $ — $ 7,164,174 Short-term borrowings — — — — — Long-term borrowings 197,754 190,738 — 4,736 186,002 Accrued interest payable 7,028 7,028 7,028 — — December 31, 2022 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 154,723 $ 154,723 $ 154,723 $ — $ — Certificates of deposit in other banks 12,518 12,407 — 12,407 — Securities AFS 917,618 917,618 — 909,465 8,153 Securities HTM 679,128 623,352 — 623,352 — Other investments, including equity securities 65,286 65,286 4,376 52,093 8,817 Loans held for sale 1,482 1,529 — 1,529 — Loans, net 6,118,670 5,863,570 — — 5,863,570 MSR asset 12,580 17,215 — — 17,215 LSR asset 11,039 11,039 — — 11,039 Accrued interest receivable 21,275 21,275 21,275 — — Financial liabilities: Deposits $ 7,178,921 $ 7,172,779 $ — $ — $ 7,172,779 Short-term borrowings 317,000 317,000 317,000 — — Long-term borrowings 225,342 220,513 — 33,001 187,512 Accrued interest payable 4,265 4,265 4,265 — — |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - Charter Bankshares, Inc. $ / shares in Units, $ in Millions | Aug. 26, 2022 USD ($) $ / shares shares |
Business Acquisition [Line Items] | |
Entity shares issued per acquiree share (in shares) | shares | 15.458 |
Cash paid per acquiree share (in dollars per share) | $ / shares | $ 475 |
Number of common stock issued for consideration (in shares) | shares | 1,262,360 |
Value of Nicolet common stock consideration | $ 98 |
Cash consideration paid | 39 |
Purchase price | $ 137 |
Acquisition - Schedule of the A
Acquisition - Schedule of the Assets Acquired and Liabilities Assumed, Including Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | 13 Months Ended | |
Aug. 26, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Purchase Price: | ||||
Goodwill | $ 0 | $ 49,970 | ||
Charter Bankshares, Inc. | ||||
Assets Acquired: | ||||
Cash and cash equivalents | $ 10,000 | 10,000 | $ 10,000 | |
Investment securities | 218,000 | 218,000 | 218,000 | |
Loans | 848,000 | 827,000 | 827,000 | |
ACL-Loans | (9,000) | (2,000) | (2,000) | |
Premises and equipment | 9,000 | 10,000 | 10,000 | |
BOLI | 29,000 | 29,000 | 29,000 | |
Core deposit intangible | 0 | 19,000 | 19,000 | |
Other assets | 5,000 | 10,000 | 10,000 | |
Total assets | 1,110,000 | 1,121,000 | 1,121,000 | |
Liabilities Assumed: | ||||
Deposits | 869,000 | 870,000 | 870,000 | |
Borrowings | 161,000 | 161,000 | 161,000 | |
Other liabilities | 3,000 | 3,000 | 3,000 | |
Total liabilities | $ 1,033,000 | 1,034,000 | 1,034,000 | |
Net assets acquired | $ 87,000 | 87,000 | ||
Assets Acquired: | ||||
Cash and cash equivalents | 0 | |||
Investment securities | 0 | |||
Loans | (21,000) | |||
ACL-Loans | 7,000 | |||
Premises and equipment | 1,000 | |||
BOLI | 0 | |||
Core deposit intangible | 19,000 | |||
Other assets | 5,000 | |||
Total assets | 11,000 | |||
Liabilities Assumed: | ||||
Deposits | 1,000 | |||
Borrowings | 0 | |||
Other liabilities | 0 | |||
Total liabilities | $ 1,000 | |||
Purchase Price: | ||||
Nicolet common stock issued (in shares) | 1,262,360 | |||
Value of Nicolet common stock consideration | $ 98,000 | |||
Cash consideration paid | 39,000 | |||
Total purchase price | 137,000 | |||
Goodwill | $ 50,000 |
Acquisition - Schedule of Carry
Acquisition - Schedule of Carrying Amount of these Loans at Acquisition (Details) - Charter Bankshares, Inc. - USD ($) $ in Thousands | Sep. 30, 2023 | Aug. 26, 2022 |
Business Acquisition [Line Items] | ||
Allowance for credit losses on PCD loans at acquisition | $ 2,000 | $ 9,000 |
Par value of PCD acquired loans at acquisition | $ 827,000 | 848,000 |
PCD loans aquired | ||
Business Acquisition [Line Items] | ||
Purchase price of PCD loans at acquisition | 24,031 | |
Allowance for credit losses on PCD loans at acquisition | 1,709 | |
Par value of PCD acquired loans at acquisition | $ 25,740 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 17,158 | $ 18,510 | $ 30,855 | $ 66,659 |
Weighted average common shares outstanding (in shares) | 14,740,319 | 13,890,066 | 14,715,588 | 13,647,973 |
Effect of dilutive common stock awards (in shares) | 360,000 | 420,000 | 328,000 | 479,000 |
Diluted weighted average common shares outstanding (in shares) | 15,099,622 | 14,310,275 | 15,044,259 | 14,126,772 |
Basic earnings per common share (in dollars per share) | $ 1.16 | $ 1.33 | $ 2.10 | $ 4.88 |
Diluted earnings per common share (in dollars per share) | $ 1.14 | $ 1.29 | $ 2.05 | $ 4.72 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from calculation of earnings per common share (in shares) | 0.1 | 0.2 | 0.2 | 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares were available for grant (in shares) | 700,000 | |
Stock-based compensation expense | $ 4.2 | $ 4.6 |
Unrecognized compensation cost | $ 14 | |
Remaining vesting period over which cost expected to be recognized | 3 years | |
Tax benefit for impact of share based compensation | $ 0.5 | 0.4 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 3.7 | 3.3 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock grant (in shares) | 11,674 | |
Restricted Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0.6 | $ 0.7 |
Restricted stock grant (in shares) | 11,674 | 8,852 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted Average Assumption for Stock Option (Details) - Stock Incentive Plan - Stock Options - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 1.60% | 0% |
Expected volatility | 30% | 30% |
Risk-free interest rate | 3.74% | 3.03% |
Expected average life (in years) | 7 years | 7 years |
Weighted average per share fair value of options (in dollars per share) | $ 20.94 | $ 30.99 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Options Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Weighted Average Exercise Price | |
Shares surrendered to satisfy exercise price and/or tax withholding requirements (in shares) | 54,517 |
Stock Incentive Plan | Stock Options | |
Option Shares Outstanding | |
Beginning balance outstanding (in shares) | 1,853,064 |
Granted (in shares) | 7,000 |
Exercise of stock options (in shares) | (115,179) |
Forfeited (in shares) | (25,000) |
Ending balance outstanding (in shares) | 1,719,885 |
Exercisable (in shares) | 1,260,942 |
Weighted Average Exercise Price | |
Beginning balance outstanding (in dollars per share) | $ / shares | $ 59.79 |
Granted (in dollars per share) | $ / shares | 64.36 |
Exercise of stock options (in dollars per share) | $ / shares | 40.02 |
Forfeited (in dollars per share) | $ / shares | 84.98 |
Ending balance outstanding (in dollars per share) | $ / shares | 60.76 |
Exercisable (in dollars per share) | $ / shares | $ 55.09 |
Weighted average remaining life outstanding | 5 years 3 months 18 days |
Weighted average remaining life exercisable | 4 years 6 months |
Aggregate intrinsic value outstanding | $ | $ 20,354 |
Aggregate intrinsic value exercisable | $ | $ 20,217 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Activity (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Weighted Average Grant Date Fair Value | |
Beginning balance outstanding (in dollars per share) | $ / shares | $ 76.49 |
Granted (in dollars per share) | $ / shares | 55.65 |
Vested (in dollars per share) | $ / shares | 66.40 |
Ending balance outstanding (in dollars per share) | $ / shares | $ 76.57 |
Restricted Shares Outstanding | |
Beginning balance outstanding (in shares) | shares | 73,490 |
Granted (in shares) | shares | 11,674 |
Vested (in shares) | shares | (24,574) |
Ending balance outstanding (in shares) | shares | 60,590 |
Securities and Other Investme_3
Securities and Other Investments - Schedule of Amortized Costs and Fair Value of Securities AFS and HTM (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 904,893 | $ 996,344 |
Gross Unrealized Gains | 71 | 136 |
Gross Unrealized Losses | 111,138 | 78,862 |
Estimated Fair Value | 793,826 | 917,618 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 0 | 679,128 |
Gross Unrealized Gains | 46 | |
Gross Unrealized Losses | 55,822 | |
Estimated Fair Value | 623,352 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,190 | 192,116 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,686 | 8,286 |
Estimated Fair Value | 37,504 | 183,830 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 497,648 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 35,722 | |
Estimated Fair Value | 461,926 | |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,293 | 2,133 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 74 | 33 |
Estimated Fair Value | 8,221 | 2,100 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 8,744 | |
Gross Unrealized Gains | 46 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 8,790 | |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 387,259 | 433,733 |
Gross Unrealized Gains | 69 | 123 |
Gross Unrealized Losses | 45,998 | 35,668 |
Estimated Fair Value | 341,330 | 398,188 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 34,874 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 3,349 | |
Estimated Fair Value | 31,525 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 355,906 | 227,650 |
Gross Unrealized Gains | 0 | 10 |
Gross Unrealized Losses | 49,497 | 26,728 |
Estimated Fair Value | 306,409 | 200,932 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 137,862 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 16,751 | |
Estimated Fair Value | 121,111 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 111,245 | 140,712 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 10,883 | 8,147 |
Estimated Fair Value | $ 100,362 | $ 132,568 |
Securities and Other Investme_4
Securities and Other Investments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Mar. 07, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Pre-tax loss | $ 37,723,000 | $ 0 | |||||
Other comprehensive loss | $ 18,082,000 | $ 19,098,000 | 25,881,000 | $ 65,441,000 | |||
Investments securities pledged as collateral | 345,000,000 | 345,000,000 | $ 883,000,000 | ||||
Accrued interest on investment securities | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Provision for credit loss | $ 2,300,000 | ||||||
Charge-off of credit loss | $ 2,300,000 | ||||||
Allowance for credit losses on securities AFS | $ 0 | $ 0 | 0 | ||||
U.S. Treasury securities | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Sale of held-to-maturity debt securities at par value | $ 500,000,000 | ||||||
Pre-tax loss | 38,000,000 | ||||||
After-tax loss | 28,000,000 | ||||||
Held to maturity securities book value | 177,000,000 | ||||||
Carrying value | 157,000,000 | ||||||
U.S. Treasury securities | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Unrealized loss | 20,000,000 | ||||||
Other comprehensive loss | $ 15,000,000 | ||||||
Mortgage-backed securities | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Allowance for credit losses on securities HTM | $ 0 |
Securities and Other Investme_5
Securities and Other Investments - Schedule of Proceeds and Realized Gains or Losses from the Sale of AFS and HTM Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Securities AFS: | ||
Gross gains | $ 268 | $ 20 |
Gross losses | (605) | (5) |
Gains (losses) on sales of securities AFS, net | (337) | 15 |
Proceeds from sales of securities AFS | 28,992 | 23,984 |
Securities HTM: | ||
Gross gains | 0 | 0 |
Gross losses | (37,723) | 0 |
Gains (losses) on sales of securities HTM, net | (37,723) | 0 |
Proceeds from sales of securities HTM | $ 460,051 | $ 0 |
Securities and Other Investme_6
Securities and Other Investments - Schedule of Unrealized Losses and Fair Value of Investment Securities (Details) $ in Thousands | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 95,106 | $ 497,072 |
Less than 12 months, unrealized losses | 5,983 | 35,593 |
12 months or more, fair value | 682,099 | 378,520 |
12 months or more, unrealized losses | 105,155 | 43,269 |
Total, fair value | 777,205 | 875,592 |
Total, unrealized losses | $ 111,138 | $ 78,862 |
Total, number of securities | security | 1,242 | 1,296 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 85,699 | |
Less than 12 months, unrealized losses | 9,623 | |
12 months or more, fair value | 526,583 | |
12 months or more, unrealized losses | 46,199 | |
Total, fair value | 612,282 | |
Total, unrealized losses | $ 55,822 | |
Total, number of securities | security | 170 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 0 | $ 448 |
Less than 12 months, unrealized losses | 0 | 14 |
12 months or more, fair value | 37,504 | 183,382 |
12 months or more, unrealized losses | 4,686 | 8,272 |
Total, fair value | 37,504 | 183,830 |
Total, unrealized losses | $ 4,686 | $ 8,286 |
Total, number of securities | security | 4 | 9 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 0 | |
Less than 12 months, unrealized losses | 0 | |
12 months or more, fair value | 461,926 | |
12 months or more, unrealized losses | 35,722 | |
Total, fair value | 461,926 | |
Total, unrealized losses | $ 35,722 | |
Total, number of securities | security | 6 | |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 5,396 | $ 2,083 |
Less than 12 months, unrealized losses | 32 | 32 |
12 months or more, fair value | 1,798 | 17 |
12 months or more, unrealized losses | 42 | 1 |
Total, fair value | 7,194 | 2,100 |
Total, unrealized losses | $ 74 | $ 33 |
Total, number of securities | security | 10 | 9 |
State, county and municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 66,415 | $ 277,546 |
Less than 12 months, unrealized losses | 5,460 | 18,041 |
12 months or more, fair value | 263,740 | 86,569 |
12 months or more, unrealized losses | 40,538 | 17,627 |
Total, fair value | 330,155 | 364,115 |
Total, unrealized losses | $ 45,998 | $ 35,668 |
Total, number of securities | security | 710 | 812 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 17,591 | |
Less than 12 months, unrealized losses | 1,594 | |
12 months or more, fair value | 11,654 | |
12 months or more, unrealized losses | 1,755 | |
Total, fair value | 29,245 | |
Total, unrealized losses | $ 3,349 | |
Total, number of securities | security | 58 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 19,959 | $ 102,108 |
Less than 12 months, unrealized losses | 268 | 11,320 |
12 months or more, fair value | 286,450 | 95,614 |
12 months or more, unrealized losses | 49,229 | 15,408 |
Total, fair value | 306,409 | 197,722 |
Total, unrealized losses | $ 49,497 | $ 26,728 |
Total, number of securities | security | 451 | 376 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 68,108 | |
Less than 12 months, unrealized losses | 8,029 | |
12 months or more, fair value | 53,003 | |
12 months or more, unrealized losses | 8,722 | |
Total, fair value | 121,111 | |
Total, unrealized losses | $ 16,751 | |
Total, number of securities | security | 106 | |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 3,336 | $ 114,887 |
Less than 12 months, unrealized losses | 223 | 6,186 |
12 months or more, fair value | 92,607 | 12,938 |
12 months or more, unrealized losses | 10,660 | 1,961 |
Total, fair value | 95,943 | 127,825 |
Total, unrealized losses | $ 10,883 | $ 8,147 |
Total, number of securities | security | 67 | 90 |
Securities and Other Investme_7
Securities and Other Investments - Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in less than one year | $ 65,155 | |
Due in one year through five years | 162,719 | |
Due after five years through ten years | 207,337 | |
Due after ten years | 113,776 | |
Allocated and single maturity date | 548,987 | |
Amortized Cost | 904,893 | $ 996,344 |
Fair Value | ||
Due in less than one year | 64,470 | |
Due in one year through five years | 147,803 | |
Due after five years through ten years | 177,658 | |
Due after ten years | 97,486 | |
Allocated and single maturity date | 487,417 | |
Fair Value | 793,826 | 917,618 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 355,906 | |
Amortized Cost | 355,906 | 227,650 |
Fair Value | ||
Mortgage-backed securities | 306,409 | |
Fair Value | $ 306,409 | $ 200,932 |
Securities and Other Investme_8
Securities and Other Investments - Schedule of Carrying Value of other Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank stock | $ 33,050 | $ 32,219 |
Federal Home Loan Bank (“FHLB”) stock | 9,674 | 18,625 |
Equity securities with readily determinable fair values | 3,893 | 4,376 |
Other investments | 11,750 | 10,066 |
Total other investments | $ 58,367 | $ 65,286 |
Loans, Allowance for Credit L_3
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Loan Composition (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 6,239,257 | $ 6,180,499 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | 63,160 | $ 62,811 | 61,829 | $ 60,348 | $ 50,655 | $ 49,672 |
Loans, net | $ 6,176,097 | $ 6,118,670 | ||||
Allowance for credit losses - Loans to loans (in percent) | 1.01% | 1% | ||||
% of Total | 100% | 100% | ||||
Retail & other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 55,656 | $ 55,266 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 1,175 | $ 1,029 | 932 | |||
% of Total | 1% | 1% | ||||
Commercial | Commercial & industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,237,789 | $ 1,304,819 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 14,947 | $ 16,350 | 12,613 | |||
% of Total | 20% | 21% | ||||
Commercial | Owner-occupied commercial real estate (“CRE”) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 971,397 | $ 954,599 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 9,126 | $ 9,138 | 7,222 | |||
% of Total | 16% | 15% | ||||
Commercial | Agricultural | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,108,261 | $ 1,088,607 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 12,166 | $ 9,762 | 9,547 | |||
% of Total | 18% | 18% | ||||
Commercial real estate | CRE investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,130,938 | $ 1,149,949 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 12,790 | $ 12,744 | 8,462 | |||
% of Total | 18% | 19% | ||||
Commercial real estate | Construction & land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 326,747 | $ 318,600 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 2,668 | $ 2,572 | 1,812 | |||
% of Total | 5% | 5% | ||||
Residential | Residential first mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,136,748 | $ 1,016,935 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 7,315 | $ 6,976 | 6,844 | |||
% of Total | 18% | 16% | ||||
Residential | Residential junior mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 195,432 | $ 177,332 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 2,045 | $ 1,846 | 1,340 | |||
% of Total | 3% | 3% | ||||
Residential | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 76,289 | $ 114,392 | ||||
Less allowance for credit losses - Loans (“ACL-Loans”) | $ 928 | $ 1,412 | $ 900 | |||
% of Total | 1% | 2% |
Loans, Allowance for Credit L_4
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest on loans | $ 19,000,000 | $ 15,000,000 |
Material loans criteria for ACL-Loans adequacy calculation | 250,000 | |
Reserve for unfunded commitments | $ 3,000,000 | 3,000,000 |
Troubled debt restructurings | 18,000,000 | |
Pre-modification balance | $ 24,000,000 |
Loans, Allowance for Credit L_5
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 62,811 | $ 50,655 | $ 61,829 | $ 49,672 | $ 49,672 |
ACL on PCD loans acquired | 0 | 1,709 | 0 | 1,709 | 1,937 |
Provision for credit losses | 450 | 8,200 | 1,650 | 9,100 | 10,950 |
Charge-offs | (346) | (300) | (1,091) | (442) | (1,033) |
Recoveries | 245 | 84 | 772 | 303 | |
Net (charge-offs) recoveries | (101) | (216) | (319) | (133) | (730) |
Ending balance | $ 63,160 | $ 60,348 | $ 63,160 | 60,348 | $ 61,829 |
Previously Reported | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Recoveries | $ 309 |
Loans, Allowance for Credit L_6
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Activity in ACL - Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
ACL-Loans | |||||
Beginning balance | $ 62,811 | $ 50,655 | $ 61,829 | $ 49,672 | $ 49,672 |
ACL on PCD loans acquired | 0 | 1,709 | 0 | 1,709 | 1,937 |
Provision for credit losses | 450 | 8,200 | 1,650 | 9,100 | 10,950 |
Charge-offs | (346) | (300) | (1,091) | (442) | (1,033) |
Recoveries | 245 | 84 | 772 | 303 | |
Net (charge-offs) recoveries | (101) | (216) | (319) | (133) | (730) |
Ending balance | 63,160 | $ 60,348 | $ 63,160 | 60,348 | $ 61,829 |
As % of ACL-Loans | 100% | 100% | |||
Retail & other | |||||
ACL-Loans | |||||
Beginning balance | $ 1,029 | 932 | $ 932 | ||
ACL on PCD loans acquired | 0 | ||||
Provision for credit losses | 364 | 299 | |||
Charge-offs | (225) | (223) | |||
Recoveries | 7 | 21 | |||
Net (charge-offs) recoveries | (218) | (202) | |||
Ending balance | 1,175 | $ 1,175 | $ 1,029 | ||
As % of ACL-Loans | 2% | 2% | |||
Commercial | Commercial & industrial | |||||
ACL-Loans | |||||
Beginning balance | $ 16,350 | 12,613 | $ 12,613 | ||
ACL on PCD loans acquired | 1,408 | ||||
Provision for credit losses | (1,518) | 2,415 | |||
Charge-offs | (403) | (190) | |||
Recoveries | 518 | 104 | |||
Net (charge-offs) recoveries | 115 | (86) | |||
Ending balance | 14,947 | $ 14,947 | $ 16,350 | ||
As % of ACL-Loans | 24% | 26% | |||
Commercial | Owner-occupied CRE | |||||
ACL-Loans | |||||
Beginning balance | $ 9,138 | 7,222 | $ 7,222 | ||
ACL on PCD loans acquired | 384 | ||||
Provision for credit losses | 48 | 2,087 | |||
Charge-offs | (301) | (555) | |||
Recoveries | 241 | 0 | |||
Net (charge-offs) recoveries | (60) | (555) | |||
Ending balance | 9,126 | $ 9,126 | $ 9,138 | ||
As % of ACL-Loans | 14% | 15% | |||
Commercial | Agricultural | |||||
ACL-Loans | |||||
Beginning balance | $ 9,762 | 9,547 | $ 9,547 | ||
ACL on PCD loans acquired | 0 | ||||
Provision for credit losses | 2,467 | 215 | |||
Charge-offs | (66) | 0 | |||
Recoveries | 3 | 0 | |||
Net (charge-offs) recoveries | (63) | 0 | |||
Ending balance | 12,166 | $ 12,166 | $ 9,762 | ||
As % of ACL-Loans | 19% | 16% | |||
Commercial real estate | CRE investment | |||||
ACL-Loans | |||||
Beginning balance | $ 12,744 | 8,462 | $ 8,462 | ||
ACL on PCD loans acquired | 38 | ||||
Provision for credit losses | 46 | 4,075 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 169 | |||
Net (charge-offs) recoveries | 0 | 169 | |||
Ending balance | 12,790 | $ 12,790 | $ 12,744 | ||
As % of ACL-Loans | 20% | 21% | |||
Commercial real estate | Construction & land development | |||||
ACL-Loans | |||||
Beginning balance | $ 2,572 | 1,812 | $ 1,812 | ||
ACL on PCD loans acquired | 2 | ||||
Provision for credit losses | 96 | 758 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | 2,668 | $ 2,668 | $ 2,572 | ||
As % of ACL-Loans | 4% | 4% | |||
Residential | Residential first mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 6,976 | 6,844 | $ 6,844 | ||
ACL on PCD loans acquired | 93 | ||||
Provision for credit losses | 336 | 96 | |||
Charge-offs | 0 | (65) | |||
Recoveries | 3 | 8 | |||
Net (charge-offs) recoveries | 3 | (57) | |||
Ending balance | 7,315 | $ 7,315 | $ 6,976 | ||
As % of ACL-Loans | 12% | 11% | |||
Residential | Residential junior mortgage | |||||
ACL-Loans | |||||
Beginning balance | $ 1,846 | 1,340 | $ 1,340 | ||
ACL on PCD loans acquired | 12 | ||||
Provision for credit losses | 295 | 493 | |||
Charge-offs | (96) | 0 | |||
Recoveries | 0 | 1 | |||
Net (charge-offs) recoveries | (96) | 1 | |||
Ending balance | 2,045 | $ 2,045 | $ 1,846 | ||
As % of ACL-Loans | 3% | 3% | |||
Residential | Residential construction | |||||
ACL-Loans | |||||
Beginning balance | $ 1,412 | $ 900 | $ 900 | ||
ACL on PCD loans acquired | 0 | ||||
Provision for credit losses | (484) | 512 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net (charge-offs) recoveries | 0 | 0 | |||
Ending balance | $ 928 | $ 928 | $ 1,412 | ||
As % of ACL-Loans | 2% | 2% |
Loans, Allowance for Credit L_7
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Receivables [Abstract] | |||||
Loans | $ 450 | $ 8,200 | $ 1,650 | $ 9,100 | $ 10,950 |
Unfunded commitments | 0 | 400 | 0 | 550 | 550 |
Investment securities | 0 | 0 | 2,340 | 0 | 0 |
Total | $ 450 | $ 8,600 | $ 3,990 | $ 9,650 | $ 11,500 |
Loans, Allowance for Credit L_8
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Collateral Dependent Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 23,297 | $ 32,072 |
Without an Allowance | 16,946 | 22,724 |
With an Allowance | 6,351 | 9,348 |
Allowance Allocation | 372 | 1,121 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 14,084 | 22,139 |
Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 9,213 | 9,933 |
Commercial | Commercial & industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,402 | 3,475 |
Without an Allowance | 2,351 | 1,927 |
With an Allowance | 1,051 | 1,548 |
Allowance Allocation | 230 | 595 |
Commercial | Commercial & industrial | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | Commercial & industrial | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 3,402 | 3,475 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 4,827 | 4,907 |
Without an Allowance | 4,827 | 4,699 |
With an Allowance | 0 | 208 |
Allowance Allocation | 0 | 53 |
Commercial | Owner-occupied CRE | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 4,827 | 4,907 |
Commercial | Owner-occupied CRE | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial | Agricultural | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 13,440 | 20,216 |
Without an Allowance | 8,530 | 14,358 |
With an Allowance | 4,910 | 5,858 |
Allowance Allocation | 123 | 261 |
Commercial | Agricultural | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 7,629 | 13,758 |
Commercial | Agricultural | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 5,811 | 6,458 |
Commercial real estate | CRE investment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 942 | 2,713 |
Without an Allowance | 552 | 979 |
With an Allowance | 390 | 1,734 |
Allowance Allocation | 19 | 212 |
Commercial real estate | CRE investment | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 942 | 2,713 |
Commercial real estate | CRE investment | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 670 |
Without an Allowance | 0 | 670 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Commercial real estate | Construction & land development | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 670 |
Commercial real estate | Construction & land development | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential first mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 686 | 91 |
Without an Allowance | 686 | 91 |
With an Allowance | 0 | 0 |
Allowance Allocation | 0 | 0 |
Residential | Residential first mortgage | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 686 | 91 |
Residential | Residential first mortgage | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | $ 0 |
Residential | Residential junior mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | |
Without an Allowance | 0 | |
With an Allowance | 0 | |
Allowance Allocation | 0 | |
Residential | Residential junior mortgage | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | 0 | |
Residential | Residential junior mortgage | Other Business Assets | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans | $ 0 |
Loans, Allowance for Credit L_9
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Past Due Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 6,239,257 | $ 6,180,499 |
Percent of total loans | 100% | 100% |
30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 3,277 | $ 5,188 |
Percent past due | 0.10% | 0.10% |
90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 29,507 | $ 38,080 |
Percent past due | 0.50% | 0.60% |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 6,206,473 | $ 6,137,231 |
Percent of current loans | 99.40% | 99.30% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 55,656 | $ 55,266 |
Retail & other | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 729 | 261 |
Retail & other | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 74 | 82 |
Retail & other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 54,853 | 54,923 |
Commercial | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,237,789 | 1,304,819 |
Commercial | Commercial & industrial | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 281 | 210 |
Commercial | Commercial & industrial | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,192 | 3,328 |
Commercial | Commercial & industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,232,316 | 1,301,281 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 971,397 | 954,599 |
Commercial | Owner-occupied CRE | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 76 | 833 |
Commercial | Owner-occupied CRE | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,602 | 5,647 |
Commercial | Owner-occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 965,719 | 948,119 |
Commercial | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,108,261 | 1,088,607 |
Commercial | Agricultural | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 151 | 20 |
Commercial | Agricultural | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 13,458 | 20,416 |
Commercial | Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,094,652 | 1,068,171 |
Commercial real estate | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,130,938 | 1,149,949 |
Commercial real estate | CRE investment | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 240 | 0 |
Commercial real estate | CRE investment | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,100 | 3,832 |
Commercial real estate | CRE investment | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,129,598 | 1,146,117 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 326,747 | 318,600 |
Commercial real estate | Construction & land development | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 23 | 0 |
Commercial real estate | Construction & land development | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 177 | 771 |
Commercial real estate | Construction & land development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 326,547 | 317,829 |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,136,748 | 1,016,935 |
Residential | Residential first mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,710 | 3,628 |
Residential | Residential first mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,812 | 3,780 |
Residential | Residential first mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,131,226 | 1,009,527 |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 195,432 | 177,332 |
Residential | Residential junior mortgage | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 67 | 236 |
Residential | Residential junior mortgage | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 92 | 224 |
Residential | Residential junior mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 195,273 | 176,872 |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 76,289 | 114,392 |
Residential | Residential construction | 30-89 Days Past Due (accruing) | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | 90 Days & Over or nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential | Residential construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 76,289 | $ 114,392 |
Loans, Allowance for Credit _10
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Nonaccrual Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 29,507 | $ 38,080 |
Percent of total loans | 0.50% | 0.60% |
% of Total | 100% | 100% |
Retail & other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 74 | $ 82 |
% of Total | 0% | 0% |
Commercial | Commercial & industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 5,192 | $ 3,328 |
% of Total | 17% | 9% |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 5,602 | $ 5,647 |
% of Total | 19% | 15% |
Commercial | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 13,458 | $ 20,416 |
% of Total | 46% | 53% |
Commercial real estate | CRE investment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 1,100 | $ 3,832 |
% of Total | 4% | 10% |
Commercial real estate | Construction & land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 177 | $ 771 |
% of Total | 1% | 2% |
Residential | Residential first mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 3,812 | $ 3,780 |
% of Total | 13% | 10% |
Residential | Residential junior mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 92 | $ 224 |
% of Total | 0% | 1% |
Residential | Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 0 | $ 0 |
% of Total | 0% | 0% |
Loans, Allowance for Credit _11
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Loans by Risk Categories and Gross Charge-offs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | $ 592,395 | $ 1,528,490 |
2022/2021 | 1,505,432 | 1,271,582 |
2021/2020 | 1,167,937 | 689,302 |
2020/2019 | 608,953 | 437,225 |
2019/2018 | 377,141 | 322,275 |
Prior | 1,147,253 | 1,061,537 |
Revolving | 833,697 | 864,323 |
Revolving to Term | 6,449 | 5,765 |
Total loans | 6,239,257 | 6,180,499 |
Residential first mortgage | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | (65) |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | (65) |
Residential junior mortgage | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | (96) | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | (96) | 0 |
Retail & other | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | |
2022/2021 | (1) | |
2021/2020 | (6) | |
2020/2019 | (1) | |
2019/2018 | 0 | |
Prior | 0 | |
Revolving | (215) | |
Revolving to Term | 0 | |
Total loans | (223) | |
Commercial & industrial | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | (38) |
2022/2021 | (77) | (41) |
2021/2020 | (114) | (2) |
2020/2019 | 0 | 0 |
2019/2018 | 0 | (109) |
Prior | (197) | 0 |
Revolving | (15) | 0 |
Revolving to Term | 0 | 0 |
Total loans | (403) | (190) |
Owner-occupied CRE | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | (301) | (555) |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | (301) | (555) |
Agricultural | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | (66) | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | (66) | 0 |
CRE investment | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Construction & land development | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Residential construction | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Retail & other | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 7,281 | 12,318 |
2022/2021 | 8,932 | 9,003 |
2021/2020 | 6,246 | 4,243 |
2020/2019 | 2,935 | 3,190 |
2019/2018 | 2,046 | 1,065 |
Prior | 4,109 | 24,955 |
Revolving | 24,107 | 492 |
Revolving to Term | 0 | 0 |
Total loans | 55,656 | 55,266 |
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
2023/2022 | (6) | |
2022/2021 | (1) | |
2021/2020 | 0 | |
2020/2019 | (1) | |
2019/2018 | 0 | |
Prior | (52) | |
Revolving | (165) | |
Revolving to Term | 0 | |
Total loans | (225) | |
Retail & other | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 7,281 | 12,318 |
2022/2021 | 8,932 | 8,957 |
2021/2020 | 6,202 | 4,221 |
2020/2019 | 2,925 | 3,188 |
2019/2018 | 2,045 | 1,035 |
Prior | 4,042 | 24,950 |
Revolving | 24,107 | 492 |
Revolving to Term | 0 | 0 |
Total loans | 55,534 | 55,161 |
Retail & other | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 23 |
2021/2020 | 18 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 18 | 23 |
Retail & other | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Retail & other | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 23 |
2021/2020 | 26 | 22 |
2020/2019 | 10 | 2 |
2019/2018 | 1 | 30 |
Prior | 67 | 5 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 104 | 82 |
Commercial | Commercial & industrial | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 162,179 | 329,347 |
2022/2021 | 269,933 | 234,543 |
2021/2020 | 194,822 | 116,025 |
2020/2019 | 78,962 | 73,915 |
2019/2018 | 56,553 | 55,352 |
Prior | 111,866 | 94,874 |
Revolving | 363,474 | 400,763 |
Revolving to Term | 0 | 0 |
Total loans | 1,237,789 | 1,304,819 |
Commercial | Commercial & industrial | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 152,385 | 317,394 |
2022/2021 | 254,446 | 226,065 |
2021/2020 | 184,778 | 101,374 |
2020/2019 | 73,488 | 68,884 |
2019/2018 | 53,351 | 50,189 |
Prior | 96,269 | 77,589 |
Revolving | 334,059 | 360,978 |
Revolving to Term | 0 | 0 |
Total loans | 1,148,776 | 1,202,473 |
Commercial | Commercial & industrial | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 5,350 | 9,938 |
2022/2021 | 10,296 | 5,902 |
2021/2020 | 6,779 | 10,811 |
2020/2019 | 2,908 | 1,530 |
2019/2018 | 1,246 | 3,986 |
Prior | 7,364 | 4,562 |
Revolving | 24,477 | 20,617 |
Revolving to Term | 0 | 0 |
Total loans | 58,420 | 57,346 |
Commercial | Commercial & industrial | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 1,459 |
2022/2021 | 591 | 2,283 |
2021/2020 | 612 | 629 |
2020/2019 | 194 | 511 |
2019/2018 | 4 | 402 |
Prior | 1,028 | 11,653 |
Revolving | 1,850 | 14,047 |
Revolving to Term | 0 | 0 |
Total loans | 4,279 | 30,984 |
Commercial | Commercial & industrial | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 4,444 | 556 |
2022/2021 | 4,600 | 293 |
2021/2020 | 2,653 | 3,211 |
2020/2019 | 2,372 | 2,990 |
2019/2018 | 1,952 | 775 |
Prior | 7,205 | 1,070 |
Revolving | 3,088 | 5,121 |
Revolving to Term | 0 | 0 |
Total loans | 26,314 | 14,016 |
Commercial | Owner-occupied CRE | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 102,636 | 156,859 |
2022/2021 | 161,433 | 194,211 |
2021/2020 | 197,971 | 116,550 |
2020/2019 | 111,880 | 105,746 |
2019/2018 | 92,663 | 96,270 |
Prior | 301,193 | 277,881 |
Revolving | 3,621 | 7,082 |
Revolving to Term | 0 | 0 |
Total loans | 971,397 | 954,599 |
Commercial | Owner-occupied CRE | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 101,687 | 151,391 |
2022/2021 | 157,461 | 190,313 |
2021/2020 | 186,745 | 105,156 |
2020/2019 | 98,057 | 100,606 |
2019/2018 | 90,223 | 91,479 |
Prior | 277,024 | 252,574 |
Revolving | 3,114 | 6,734 |
Revolving to Term | 0 | 0 |
Total loans | 914,311 | 898,253 |
Commercial | Owner-occupied CRE | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 949 | 5,241 |
2022/2021 | 3,754 | 3,192 |
2021/2020 | 9,854 | 4,287 |
2020/2019 | 5,362 | 2,163 |
2019/2018 | 1,481 | 4,791 |
Prior | 15,158 | 14,632 |
Revolving | 212 | 348 |
Revolving to Term | 0 | 0 |
Total loans | 36,770 | 34,654 |
Commercial | Owner-occupied CRE | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 348 | 763 |
2020/2019 | 1,545 | 2,361 |
2019/2018 | 605 | 0 |
Prior | 150 | 877 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 2,648 | 4,001 |
Commercial | Owner-occupied CRE | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 227 |
2022/2021 | 218 | 706 |
2021/2020 | 1,024 | 6,344 |
2020/2019 | 6,916 | 616 |
2019/2018 | 354 | 0 |
Prior | 8,861 | 9,798 |
Revolving | 295 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 17,668 | 17,691 |
Commercial | Agricultural | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 79,437 | 295,783 |
2022/2021 | 300,487 | 167,539 |
2021/2020 | 150,368 | 88,855 |
2020/2019 | 82,177 | 29,465 |
2019/2018 | 25,994 | 24,815 |
Prior | 195,031 | 199,982 |
Revolving | 274,767 | 282,168 |
Revolving to Term | 0 | 0 |
Total loans | 1,108,261 | 1,088,607 |
Commercial | Agricultural | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 72,777 | 275,208 |
2022/2021 | 282,254 | 145,272 |
2021/2020 | 136,796 | 85,413 |
2020/2019 | 80,960 | 25,463 |
2019/2018 | 23,694 | 19,687 |
Prior | 144,223 | 130,849 |
Revolving | 252,202 | 249,033 |
Revolving to Term | 0 | 0 |
Total loans | 992,906 | 930,925 |
Commercial | Agricultural | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 2,809 | 13,295 |
2022/2021 | 11,201 | 18,178 |
2021/2020 | 6,003 | 2,694 |
2020/2019 | 725 | 1,992 |
2019/2018 | 384 | 517 |
Prior | 33,751 | 43,927 |
Revolving | 14,316 | 21,199 |
Revolving to Term | 0 | 0 |
Total loans | 69,189 | 101,802 |
Commercial | Agricultural | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 115 |
2022/2021 | 134 | 1,457 |
2021/2020 | 1,114 | 28 |
2020/2019 | 0 | 33 |
2019/2018 | 51 | 0 |
Prior | 2,293 | 5,258 |
Revolving | 207 | 429 |
Revolving to Term | 0 | 0 |
Total loans | 3,799 | 7,320 |
Commercial | Agricultural | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 3,851 | 7,165 |
2022/2021 | 6,898 | 2,632 |
2021/2020 | 6,455 | 720 |
2020/2019 | 492 | 1,977 |
2019/2018 | 1,865 | 4,611 |
Prior | 14,764 | 19,948 |
Revolving | 8,042 | 11,507 |
Revolving to Term | 0 | 0 |
Total loans | 42,367 | 48,560 |
Commercial real estate | CRE investment | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 29,925 | 206,497 |
2022/2021 | 191,713 | 230,901 |
2021/2020 | 262,441 | 196,226 |
2020/2019 | 180,871 | 140,036 |
2019/2018 | 128,223 | 85,376 |
Prior | 326,206 | 279,115 |
Revolving | 11,559 | 11,798 |
Revolving to Term | 0 | 0 |
Total loans | 1,130,938 | 1,149,949 |
Commercial real estate | CRE investment | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 27,123 | 205,930 |
2022/2021 | 183,799 | 229,252 |
2021/2020 | 247,563 | 192,527 |
2020/2019 | 172,237 | 134,301 |
2019/2018 | 117,114 | 79,649 |
Prior | 294,916 | 248,595 |
Revolving | 11,445 | 11,383 |
Revolving to Term | 0 | 0 |
Total loans | 1,054,197 | 1,101,637 |
Commercial real estate | CRE investment | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 2,802 | 567 |
2022/2021 | 7,859 | 1,649 |
2021/2020 | 14,857 | 3,578 |
2020/2019 | 8,634 | 4,266 |
2019/2018 | 10,066 | 3,086 |
Prior | 21,927 | 24,897 |
Revolving | 49 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 66,194 | 38,043 |
Commercial real estate | CRE investment | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 1,170 |
2019/2018 | 0 | 2,396 |
Prior | 1,357 | 2,483 |
Revolving | 65 | 206 |
Revolving to Term | 0 | 0 |
Total loans | 1,422 | 6,255 |
Commercial real estate | CRE investment | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 55 | 0 |
2021/2020 | 21 | 121 |
2020/2019 | 0 | 299 |
2019/2018 | 1,043 | 245 |
Prior | 8,006 | 3,140 |
Revolving | 0 | 209 |
Revolving to Term | 0 | 0 |
Total loans | 9,125 | 4,014 |
Commercial real estate | Construction & land development | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 37,227 | 104,874 |
2022/2021 | 153,835 | 140,727 |
2021/2020 | 88,339 | 12,188 |
2020/2019 | 10,885 | 9,761 |
2019/2018 | 5,796 | 23,811 |
Prior | 28,510 | 14,004 |
Revolving | 2,155 | 13,235 |
Revolving to Term | 0 | 0 |
Total loans | 326,747 | 318,600 |
Commercial real estate | Construction & land development | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 37,180 | 104,804 |
2022/2021 | 153,809 | 140,727 |
2021/2020 | 88,212 | 12,188 |
2020/2019 | 9,610 | 9,747 |
2019/2018 | 5,288 | 23,811 |
Prior | 28,329 | 13,138 |
Revolving | 2,070 | 13,235 |
Revolving to Term | 0 | 0 |
Total loans | 324,498 | 317,650 |
Commercial real estate | Construction & land development | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 37 |
2022/2021 | 26 | 0 |
2021/2020 | 127 | 0 |
2020/2019 | 1,275 | 14 |
2019/2018 | 508 | 0 |
Prior | 89 | 95 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 2,025 | 146 |
Commercial real estate | Construction & land development | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Commercial real estate | Construction & land development | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 47 | 33 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 92 | 771 |
Revolving | 85 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 224 | 804 |
Residential | Residential first mortgage | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 125,176 | 320,276 |
2022/2021 | 378,921 | 273,098 |
2021/2020 | 258,354 | 149,042 |
2020/2019 | 135,782 | 71,838 |
2019/2018 | 62,893 | 33,677 |
Prior | 175,005 | 166,921 |
Revolving | 614 | 2,080 |
Revolving to Term | 3 | 3 |
Total loans | 1,136,748 | 1,016,935 |
Residential | Residential first mortgage | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 125,176 | 318,628 |
2022/2021 | 377,475 | 272,011 |
2021/2020 | 256,628 | 147,857 |
2020/2019 | 134,035 | 68,975 |
2019/2018 | 59,281 | 31,208 |
Prior | 168,739 | 162,153 |
Revolving | 614 | 2,080 |
Revolving to Term | 3 | 3 |
Total loans | 1,121,951 | 1,002,915 |
Residential | Residential first mortgage | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 1,494 |
2022/2021 | 1,296 | 758 |
2021/2020 | 1,259 | 997 |
2020/2019 | 1,262 | 1,803 |
2019/2018 | 2,538 | 2,272 |
Prior | 2,684 | 465 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 9,039 | 7,789 |
Residential | Residential first mortgage | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 711 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 711 |
Residential | Residential first mortgage | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 154 |
2022/2021 | 150 | 329 |
2021/2020 | 467 | 188 |
2020/2019 | 485 | 349 |
2019/2018 | 1,074 | 197 |
Prior | 3,582 | 4,303 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 5,758 | 5,520 |
Residential | Residential junior mortgage | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 12,538 | 10,119 |
2022/2021 | 7,639 | 4,786 |
2021/2020 | 4,117 | 5,207 |
2020/2019 | 4,360 | 3,151 |
2019/2018 | 2,848 | 1,573 |
Prior | 4,124 | 3,576 |
Revolving | 153,360 | 143,158 |
Revolving to Term | 6,446 | 5,762 |
Total loans | 195,432 | 177,332 |
Residential | Residential junior mortgage | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 12,538 | 10,119 |
2022/2021 | 7,607 | 4,580 |
2021/2020 | 3,915 | 5,207 |
2020/2019 | 4,360 | 3,151 |
2019/2018 | 2,848 | 1,573 |
Prior | 4,110 | 3,409 |
Revolving | 153,322 | 142,784 |
Revolving to Term | 6,446 | 5,762 |
Total loans | 195,146 | 176,585 |
Residential | Residential junior mortgage | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 143 |
Revolving | 0 | 165 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 308 |
Residential | Residential junior mortgage | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Residential | Residential junior mortgage | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 32 | 206 |
2021/2020 | 202 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 14 | 24 |
Revolving | 38 | 209 |
Revolving to Term | 0 | 0 |
Total loans | 286 | 439 |
Residential | Residential construction | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 35,996 | 92,417 |
2022/2021 | 32,539 | 16,774 |
2021/2020 | 5,279 | 966 |
2020/2019 | 1,101 | 123 |
2019/2018 | 125 | 336 |
Prior | 1,209 | 229 |
Revolving | 40 | 3,547 |
Revolving to Term | 0 | 0 |
Total loans | 76,289 | 114,392 |
Residential | Residential construction | Grades 1-4 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 35,996 | 92,417 |
2022/2021 | 32,539 | 16,774 |
2021/2020 | 5,279 | 966 |
2020/2019 | 1,101 | 123 |
2019/2018 | 125 | 336 |
Prior | 1,209 | 229 |
Revolving | 40 | 3,547 |
Revolving to Term | 0 | 0 |
Total loans | 76,289 | 114,392 |
Residential | Residential construction | Grade 5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Residential | Residential construction | Grade 6 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | 0 | 0 |
Residential | Residential construction | Grade 7 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023/2022 | 0 | 0 |
2022/2021 | 0 | 0 |
2021/2020 | 0 | 0 |
2020/2019 | 0 | 0 |
2019/2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving | 0 | 0 |
Revolving to Term | 0 | 0 |
Total loans | $ 0 | $ 0 |
Loans, Allowance for Credit _12
Loans, Allowance for Credit Losses - Loans, and Credit Quality - Schedule of Aggregated by Portfolio Segment and Type of Modification (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 627 |
% of Total Loans | 0.01% |
Payment Delay | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 540 |
Term Extension | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Interest Rate Reduction | |
Financing Receivable, Impaired [Line Items] | |
Total | 87 |
Term Extension & Interest Rate Reduction | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Commercial & industrial | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 520 |
% of Total Loans | 0.04% |
Commercial & industrial | Payment Delay | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 433 |
Commercial & industrial | Term Extension | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Commercial & industrial | Interest Rate Reduction | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 87 |
Commercial & industrial | Term Extension & Interest Rate Reduction | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Owner-occupied CRE | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
% of Total Loans | 0% |
Owner-occupied CRE | Payment Delay | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
Owner-occupied CRE | Term Extension | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Owner-occupied CRE | Interest Rate Reduction | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Owner-occupied CRE | Term Extension & Interest Rate Reduction | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Agricultural | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 107 |
% of Total Loans | 0.01% |
Agricultural | Payment Delay | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 107 |
Agricultural | Term Extension | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Agricultural | Interest Rate Reduction | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Agricultural | Term Extension & Interest Rate Reduction | Commercial | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
CRE investment | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
% of Total Loans | 0% |
CRE investment | Payment Delay | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
CRE investment | Term Extension | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
CRE investment | Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
CRE investment | Term Extension & Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Construction & land development | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
% of Total Loans | 0% |
Construction & land development | Payment Delay | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
Construction & land development | Term Extension | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Construction & land development | Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Construction & land development | Term Extension & Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Residential first mortgage | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
% of Total Loans | 0% |
Residential first mortgage | Payment Delay | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
Residential first mortgage | Term Extension | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Residential first mortgage | Interest Rate Reduction | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Total | 0 |
Residential first mortgage | Term Extension & Interest Rate Reduction | Residential first mortgage | |
Financing Receivable, Impaired [Line Items] | |
Total | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles and Servicing Rights - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 367,387 | $ 367,387 | $ 317,189 |
Other intangibles | 28,821 | 35,051 | |
Goodwill and other intangibles, net | 396,208 | 402,438 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | 26,842 | 32,701 | |
Customer list intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 1,979 | $ 2,350 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles and Servicing Rights - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Goodwill: | ||
Goodwill at beginning of year | $ 367,387 | $ 317,189 |
Acquisitions | 0 | 49,970 |
Purchase accounting adjustment | 0 | 228 |
Goodwill at end of period | $ 367,387 | $ 367,387 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles and Servicing Rights - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Net book value | $ 28,821 | $ 28,821 | $ 35,051 | ||
Amortization during the period | 1,986 | $ 1,628 | 6,230 | $ 4,399 | |
Core deposit intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 60,724 | 60,724 | 60,724 | ||
Accumulated amortization | (33,882) | (33,882) | (28,023) | ||
Net book value | 26,842 | 26,842 | 32,701 | ||
Additions during the period | 0 | 19,364 | |||
Amortization during the period | 5,859 | 6,108 | |||
Customer list intangibles: | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 5,523 | 5,523 | 5,523 | ||
Accumulated amortization | (3,544) | (3,544) | (3,173) | ||
Net book value | $ 1,979 | 1,979 | 2,350 | ||
Amortization during the period | $ 371 | $ 508 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles and Servicing Rights - Schedule of Mortgage and Loan Servicing Rights (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Mortgage Servicing Rights | ||
Mortgage servicing rights asset: | ||
MSR asset at beginning of year | $ 13,080 | $ 13,636 |
Capitalized MSR | 1,104 | 2,327 |
Amortization during the period | (2,248) | (2,883) |
MSR asset at end of period | 11,936 | 13,080 |
Valuation Allowance: | ||
Valuation allowance at beginning of year | (500) | (1,200) |
Reversals | 500 | 700 |
Valuation allowance at end of period | 0 | (500) |
MSR asset, net | 11,936 | 12,580 |
Fair value of MSR asset at end of period | 15,847 | 17,215 |
Residential mortgage loans serviced for others | $ 1,610,318 | $ 1,637,109 |
Net book value of MSR asset to loans serviced for others | 0.74% | 0.77% |
LSR asset | ||
Mortgage servicing rights asset: | ||
MSR asset at beginning of year | $ 11,039 | $ 20,055 |
Amortization during the period | (1,656) | (9,016) |
MSR asset at end of period | 9,383 | 11,039 |
Valuation Allowance: | ||
Residential mortgage loans serviced for others | $ 502,901 | $ 538,392 |
Goodwill and Other Intangible_7
Goodwill and Other Intangibles and Servicing Rights - Schedule of Estimated Future Amortization Expense for Amortizing Intangible Assets and the MSR Asset (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value | $ 28,821 | $ 35,051 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 (remaining three months) | 1,730 | |
2024 | 6,298 | |
2025 | 5,161 | |
2026 | 3,983 | |
2027 | 3,218 | |
2028 | 2,622 | |
Thereafter | 3,830 | |
Net book value | 26,842 | 32,701 |
Customer list intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 (remaining three months) | 112 | |
2024 | 449 | |
2025 | 449 | |
2026 | 249 | |
2027 | 166 | |
2028 | 166 | |
Thereafter | 388 | |
Net book value | 1,979 | $ 2,350 |
MSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 (remaining three months) | 687 | |
2024 | 2,661 | |
2025 | 1,978 | |
2026 | 1,457 | |
2027 | 1,457 | |
2028 | 1,456 | |
Thereafter | 2,240 | |
Net book value | 11,936 | |
LSR asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 (remaining three months) | 552 | |
2024 | 1,962 | |
2025 | 1,717 | |
2026 | 1,472 | |
2027 | 1,227 | |
2028 | 981 | |
Thereafter | 1,472 | |
Net book value | $ 9,383 |
Short and Long-Term Borrowing_2
Short and Long-Term Borrowings - Narrative (Details) | 1 Months Ended | |||
Dec. 31, 2021 USD ($) note | Jul. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument | ||||
Short-term borrowings | $ 0 | $ 317,000,000 | ||
Trust preferred securities qualify as Tier 1 capital | $ 39,000,000 | $ 38,000,000 | ||
FHLB advances | ||||
Debt Instrument | ||||
FHLB weighted average interest rate at period end | 1.55% | 1.09% | ||
Subordinated notes | ||||
Debt Instrument | ||||
Face amount issued | $ 152,400,000 | |||
Number of notes assumed | note | 2 | |||
Subordinated Notes due 2031 | Subordinated notes | ||||
Debt Instrument | ||||
Face amount issued | $ 100,000,000 | 100,000,000 | ||
Subordinated Notes due 2031 | Subordinated notes | Interest Rate For The Years One Through 5 | ||||
Debt Instrument | ||||
Fixed interest rate | 3.125% | |||
Subordinated Notes due 2031 | Subordinated notes | Interest Rate After Year Five | SOFR | ||||
Debt Instrument | ||||
Floating interest rate basis spread | 2.375% | |||
County Subordinated Notes due 2028 | Subordinated notes | ||||
Debt Instrument | ||||
Face amount issued | $ 30,000,000 | 30,000,000 | ||
County Subordinated Notes due 2028 | Subordinated notes | Interest Rate For The Years One Through 5 | ||||
Debt Instrument | ||||
Fixed interest rate | 5.875% | |||
County Subordinated Notes due 2028 | Subordinated notes | Interest Rate After Year Five | SOFR | ||||
Debt Instrument | ||||
Floating interest rate basis spread | 2.88% | |||
County Subordinated Notes due 2030 | Subordinated notes | ||||
Debt Instrument | ||||
Face amount issued | $ 22,000,000 | $ 22,400,000 | ||
County Subordinated Notes due 2030 | Subordinated notes | Interest Rate For The Years One Through 5 | ||||
Debt Instrument | ||||
Fixed interest rate | 7% | |||
County Subordinated Notes due 2030 | Subordinated notes | Interest Rate After Year Five | SOFR | ||||
Debt Instrument | ||||
Floating interest rate basis spread | 6.875% | |||
FHLB advances | ||||
Debt Instrument | ||||
Short-term borrowings | $ 317,000,000 | |||
FHLB advances | Maturing September 2023 | ||||
Debt Instrument | ||||
Short-term borrowings | $ 200,000,000 | |||
Weighted average interest rate on short-term debt | 4.30% | |||
FHLB advances | Maturing January 2023 | ||||
Debt Instrument | ||||
Short-term borrowings | $ 117,000,000 | |||
Weighted average interest rate on short-term debt | 4.29% |
Short and Long-Term Borrowing_3
Short and Long-Term Borrowings - Schedule of Components of Long-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument | ||
Total long-term borrowings | $ 197,754 | $ 225,342 |
FHLB advances | ||
Debt Instrument | ||
Total long-term borrowings | 5,000 | 33,000 |
Junior subordinated debentures | ||
Debt Instrument | ||
Total long-term borrowings | 40,344 | 39,720 |
Subordinated notes | ||
Debt Instrument | ||
Total long-term borrowings | $ 152,410 | $ 152,622 |
Short and Long-Term Borrowing_4
Short and Long-Term Borrowings - Schedule of Junior Subordinated Debentures and Subordinated Notes (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Carrying Value | $ 197,754,000 | $ 225,342,000 | ||
Junior subordinated debentures | ||||
Debt Instrument [Line Items] | ||||
Par | 48,045,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (7,701,000) | |||
Carrying Value | $ 40,344,000 | $ 39,720,000 | ||
Junior subordinated debentures | 2005 Mid-Wisconsin Financial Services, Inc. | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7.10% | 6.20% | ||
Par | $ 10,310,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (2,429,000) | |||
Carrying Value | $ 7,881,000 | $ 7,734,000 | ||
Junior subordinated debentures | 2006 Baylake Corp. | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7.01% | 6.08% | ||
Par | $ 16,598,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (2,997,000) | |||
Carrying Value | $ 13,601,000 | $ 13,424,000 | ||
Junior subordinated debentures | 2004 First Menasha Bancshares, Inc. | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.46% | 7.53% | ||
Par | $ 5,155,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (454,000) | |||
Carrying Value | $ 4,701,000 | $ 4,668,000 | ||
Junior subordinated debentures | County Bancorp Statutory Trust II | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7.20% | 6.30% | ||
Par | $ 6,186,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (792,000) | |||
Carrying Value | $ 5,394,000 | $ 5,277,000 | ||
Junior subordinated debentures | County Bancorp Statutory Trust III | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7.36% | 6.46% | ||
Par | $ 6,186,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (850,000) | |||
Carrying Value | $ 5,336,000 | $ 5,219,000 | ||
Junior subordinated debentures | Fox River Valley Capital Trust | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 6.40% | 6.40% | ||
Par | $ 3,610,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | (179,000) | |||
Carrying Value | $ 3,431,000 | $ 3,398,000 | ||
Junior subordinated debentures | SOFR | ||||
Debt Instrument [Line Items] | ||||
Adjustment on variable rate | 0.26161% | |||
Junior subordinated debentures | SOFR | 2005 Mid-Wisconsin Financial Services, Inc. | ||||
Debt Instrument [Line Items] | ||||
Floating interest rate basis spread | 1.43% | |||
Junior subordinated debentures | SOFR | 2006 Baylake Corp. | ||||
Debt Instrument [Line Items] | ||||
Floating interest rate basis spread | 1.35% | |||
Junior subordinated debentures | SOFR | 2004 First Menasha Bancshares, Inc. | ||||
Debt Instrument [Line Items] | ||||
Floating interest rate basis spread | 2.79% | |||
Junior subordinated debentures | SOFR | County Bancorp Statutory Trust II | ||||
Debt Instrument [Line Items] | ||||
Floating interest rate basis spread | 1.53% | |||
Junior subordinated debentures | SOFR | County Bancorp Statutory Trust III | ||||
Debt Instrument [Line Items] | ||||
Floating interest rate basis spread | 1.69% | |||
Junior subordinated debentures | SOFR | Fox River Valley Capital Trust | ||||
Debt Instrument [Line Items] | ||||
Floating interest rate basis spread | 3.40% | |||
Subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Par | $ 152,400,000 | |||
Unamortized Premium /(Discount) / Debt Issue Costs | 10,000 | |||
Carrying Value | $ 152,410,000 | $ 152,622,000 | ||
Subordinated notes | Subordinated Notes due 2031 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.13% | 3.13% | ||
Par | $ 100,000,000 | $ 100,000,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | (576,000) | |||
Carrying Value | $ 99,424,000 | $ 99,267,000 | ||
Subordinated notes | County Subordinated Notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.56% | 5.88% | ||
Par | $ 30,000,000 | $ 30,000,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | 0 | |||
Carrying Value | $ 30,000,000 | $ 30,119,000 | ||
Subordinated notes | County Subordinated Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7% | 7% | ||
Par | $ 22,400,000 | $ 22,000,000 | ||
Unamortized Premium /(Discount) / Debt Issue Costs | 586,000 | |||
Carrying Value | $ 22,986,000 | $ 23,236,000 |
Commitment and Contingencies -
Commitment and Contingencies - Schedule of the Contract or Notional Amount of Exposure to Off-balance-sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | $ 1,810,068 | $ 1,850,601 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | 18,235 | 26,530 |
Performance standby letters of credit | ||
Other Commitments [Line Items] | ||
Contract and notional amounts of commitments | $ 15,814 | $ 9,375 |
Commitment and Contingencies _2
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative fair value, net | $ 0.2 | $ 0.1 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Commitments to sell residential mortgage loans held for sale considered derivative instruments | 16 | 9 |
Forward Contracts | ||
Derivative [Line Items] | ||
Commitments to sell residential mortgage loans held for sale considered derivative instruments | $ 17 | $ 9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | $ 793,826 | $ 917,618 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 37,504 | 183,830 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 8,221 | 2,100 |
State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 341,330 | 398,188 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 306,409 | 200,932 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 100,362 | 132,568 |
Reccurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 793,826 | 917,618 |
Derivative assets | 186 | 60 |
Derivative liabilities | 0 | 10 |
Reccurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 37,504 | 183,830 |
Reccurring | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 8,221 | 2,100 |
Reccurring | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 341,330 | 398,188 |
Reccurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 306,409 | 200,932 |
Reccurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 100,362 | 132,568 |
Reccurring | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 3,893 | 4,376 |
Reccurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Reccurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 1 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 3,893 | 4,376 |
Reccurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 788,176 | 909,465 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Reccurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 37,504 | 183,830 |
Reccurring | Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 8,221 | 2,100 |
Reccurring | Level 2 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 339,949 | 396,315 |
Reccurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 305,438 | 199,951 |
Reccurring | Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 97,064 | 127,269 |
Reccurring | Level 2 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | 0 | 0 |
Reccurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 5,650 | 8,153 |
Derivative assets | 186 | 60 |
Derivative liabilities | 0 | 10 |
Reccurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 3 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 0 | 0 |
Reccurring | Level 3 | State, county and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 1,381 | 1,873 |
Reccurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 971 | 981 |
Reccurring | Level 3 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities AFS | 3,298 | 5,299 |
Reccurring | Level 3 | Other investments (equity securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments (equity securities) | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Securities AFS - Recurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Level 3 Fair Value Measurements: | ||
Balance at beginning of year | $ 8,153 | $ 8,065 |
Acquired balance | 0 | 750 |
Unrealized gain / (loss) | (34) | (211) |
Balance at end of period | 5,650 | 8,153 |
Level 3 | ||
Level 3 Fair Value Measurements: | ||
Maturities / Paydowns | $ (2,469) | $ (451) |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 22,925 | $ 30,951 |
Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,031 | 1,975 |
MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 11,936 | 12,580 |
Level 1 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 1 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 1 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 3 | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 22,925 | 30,951 |
Level 3 | Other real estate owned (“OREO”) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 2,031 | 1,975 |
Level 3 | MSR asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 11,936 | $ 12,580 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Securities AFS | $ 793,826 | $ 917,618 |
Securities HTM | 623,352 | |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 545,880 | 154,723 |
Certificates of deposit in other banks | 7,598 | 12,518 |
Securities AFS | 793,826 | 917,618 |
Securities HTM | 679,128 | |
Other investments, including equity securities | 58,367 | 65,286 |
Loans held for sale | 6,500 | 1,482 |
Loans, net | 6,176,097 | 6,118,670 |
Accrued interest receivable | 24,166 | 21,275 |
Financial liabilities: | ||
Deposits | 7,182,388 | 7,178,921 |
Short-term borrowings | 0 | 317,000 |
Long-term borrowings | 197,754 | 225,342 |
Accrued interest payable | 7,028 | 4,265 |
Carrying Amount | MSR asset | ||
Financial assets: | ||
MSR asset | 11,936 | 12,580 |
Carrying Amount | LSR asset | ||
Financial assets: | ||
MSR asset | 9,383 | 11,039 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 545,880 | 154,723 |
Certificates of deposit in other banks | 7,519 | 12,407 |
Securities AFS | 793,826 | 917,618 |
Securities HTM | 623,352 | |
Other investments, including equity securities | 58,367 | 65,286 |
Loans held for sale | 6,641 | 1,529 |
Loans, net | 5,908,160 | 5,863,570 |
Accrued interest receivable | 24,166 | 21,275 |
Financial liabilities: | ||
Deposits | 7,164,174 | 7,172,779 |
Short-term borrowings | 0 | 317,000 |
Long-term borrowings | 190,738 | 220,513 |
Accrued interest payable | 7,028 | 4,265 |
Estimated Fair Value | MSR asset | ||
Financial assets: | ||
MSR asset | 15,847 | 17,215 |
Estimated Fair Value | LSR asset | ||
Financial assets: | ||
MSR asset | 9,383 | 11,039 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 545,880 | 154,723 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 0 | 0 |
Securities HTM | 0 | |
Other investments, including equity securities | 3,893 | 4,376 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 24,166 | 21,275 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 317,000 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 7,028 | 4,265 |
Estimated Fair Value | Level 1 | MSR asset | ||
Financial assets: | ||
MSR asset | 0 | 0 |
Estimated Fair Value | Level 1 | LSR asset | ||
Financial assets: | ||
MSR asset | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 7,519 | 12,407 |
Securities AFS | 788,176 | 909,465 |
Securities HTM | 623,352 | |
Other investments, including equity securities | 43,973 | 52,093 |
Loans held for sale | 6,641 | 1,529 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 4,736 | 33,001 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 2 | MSR asset | ||
Financial assets: | ||
MSR asset | 0 | 0 |
Estimated Fair Value | Level 2 | LSR asset | ||
Financial assets: | ||
MSR asset | 0 | 0 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit in other banks | 0 | 0 |
Securities AFS | 5,650 | 8,153 |
Securities HTM | 0 | |
Other investments, including equity securities | 10,501 | 8,817 |
Loans held for sale | 0 | 0 |
Loans, net | 5,908,160 | 5,863,570 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 7,164,174 | 7,172,779 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 186,002 | 187,512 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 3 | MSR asset | ||
Financial assets: | ||
MSR asset | 15,847 | 17,215 |
Estimated Fair Value | Level 3 | LSR asset | ||
Financial assets: | ||
MSR asset | $ 9,383 | $ 11,039 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Oct. 02, 2023 USD ($) |
Subsequent Event [Line Items] | |
Proceeds from Divestiture of Businesses | $ 10 |
Gain (Loss) on Disposition of Business | $ 9 |