COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38595 | |
Entity Registrant Name | FIRST WESTERN FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 37-1442266 | |
Entity Address, Address Line One | 1900 16th Street | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 531.8100 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | MYFW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,548,190 | |
Entity Central Index Key | 0001327607 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 6,285 | $ 4,926 |
Interest-bearing deposits in other financial institutions | 291,283 | 191,586 |
Total cash and cash equivalents | 297,568 | 196,512 |
Held-to-maturity securities, at amortized cost, net of allowance for credit losses of $71 and $0, (fair value of $69,551 and $74,718, respectively) | 77,469 | 81,056 |
Correspondent bank stock, at cost | 13,518 | 7,110 |
Mortgage loans held for sale, at fair value | 19,746 | 8,839 |
Loans held for sale | 0 | 1,965 |
Total | 2,495,582 | 2,469,413 |
Allowance for credit losses | (22,044) | (17,183) |
Total, net | 2,473,538 | 2,452,230 |
Premises and equipment, net | 25,473 | 25,118 |
Accrued interest receivable | 11,135 | 10,445 |
Accounts receivable | 5,116 | 4,873 |
Other receivables | 3,331 | 1,973 |
Goodwill and other intangible assets, net | 31,977 | 32,104 |
Deferred tax assets, net | 7,202 | 6,914 |
Company-owned life insurance | 16,333 | 16,152 |
Other assets | 23,240 | 21,457 |
Total assets | 3,005,646 | 2,866,748 |
Deposits: | ||
Noninterest-bearing | 514,241 | 583,092 |
Interest-bearing | 1,861,153 | 1,822,137 |
Total deposits | 2,375,394 | 2,405,229 |
Borrowings: | ||
Federal Home Loan Bank and Federal Reserve borrowings | 312,600 | 146,886 |
Subordinated notes | 52,223 | 52,132 |
Accrued interest payable | 1,788 | 1,125 |
Other liabilities | 21,399 | 20,512 |
Total liabilities | 2,763,404 | 2,625,884 |
Shareholders' Equity | ||
Preferred stock - no par value; 10,000,000 shares authorized; 0 issued and outstanding | 0 | 0 |
Common stock - no par value; 90,000,000 shares authorized; 9,545,071 and 9,495,440 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 191,968 | 190,494 |
Retained earnings | 51,143 | 51,887 |
Accumulated other comprehensive loss | (869) | (1,517) |
Total shareholders’ equity | 242,242 | 240,864 |
Total liabilities and shareholders’ equity | $ 3,005,646 | $ 2,866,748 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 71 | $ 0 |
Fair Value | 69,551 | 74,718 |
Loans accounted for under the fair value option | $ 17,523 | $ 23,321 |
Preferred Stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0 | $ 0 |
Common Stock, shares authorized | 90,000,000 | 90,000,000 |
Common Stock, shares issued | 9,545,071 | 9,495,440 |
Common Stock, shares outstanding | 9,545,071 | 9,495,440 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Interest and dividend income: | ||||||
Loans, including fees | $ 33,583 | $ 20,546 | $ 65,663 | $ 39,833 | ||
Loans accounted for under the fair value option | 351 | 346 | 778 | 346 | ||
Investment securities | 627 | 418 | 1,256 | 755 | ||
Interest-bearing deposits in other financial institutions | 1,666 | 549 | 3,069 | 781 | ||
Dividends, restricted stock | 145 | 14 | 318 | 35 | ||
Total interest and dividend income | 36,372 | 21,873 | 71,084 | 41,750 | ||
Interest expense: | ||||||
Deposits | 15,864 | 1,103 | 28,956 | 2,046 | ||
Other borrowed funds | 2,073 | 390 | 4,120 | 828 | ||
Total interest expense | 17,937 | 1,493 | 33,076 | 2,874 | ||
Net interest income | 18,435 | 20,380 | 38,008 | 38,876 | ||
Less: Provision for credit losses(1) | 1,843 | 519 | [1] | 1,533 | 729 | [1] |
Net interest income, after provision for credit losses | 16,592 | 19,861 | 36,475 | 38,147 | ||
Non-interest income: | ||||||
Trust and investment management fees | 4,602 | 4,781 | 9,237 | 9,947 | ||
Net gain on mortgage loans | 774 | 924 | 1,793 | 3,227 | ||
Net loss on loans held for sale | 0 | 0 | (178) | 0 | ||
Bank fees | 591 | 590 | 1,183 | 1,260 | ||
Risk management and insurance fees | 103 | 83 | 230 | 192 | ||
Income on company-owned life insurance | 91 | 87 | 181 | 173 | ||
Net gain on equity interests | 0 | 0 | 0 | 1 | ||
Net loss on loans accounted for under the fair value option | (1,124) | (155) | (1,667) | (155) | ||
Unrealized (loss)/gain recognized on equity securities | (11) | 299 | (1) | 267 | ||
Other | (1,064) | 89 | (1,010) | 174 | ||
Total non-interest income | 3,962 | 6,698 | 9,768 | 15,086 | ||
Total income before non-interest expense | 20,554 | 26,559 | 46,243 | 53,233 | ||
Non-interest expense: | ||||||
Salaries and employee benefits | 11,148 | 12,945 | 24,246 | 25,003 | ||
Occupancy and equipment | 1,939 | 1,892 | 3,853 | 3,774 | ||
Professional services | 1,858 | 2,027 | 3,781 | 3,553 | ||
Technology and information systems | 831 | 1,076 | 1,663 | 2,122 | ||
Data processing | 1,052 | 987 | 2,191 | 2,174 | ||
Marketing | 379 | 428 | 770 | 985 | ||
Amortization of other intangible assets | 62 | 77 | 126 | 154 | ||
Net gain on assets held for sale | 0 | (2) | 0 | (3) | ||
Other | 1,250 | 1,153 | 2,417 | 2,179 | ||
Total non-interest expense | 18,519 | 20,583 | 39,047 | 39,941 | ||
Income before income taxes | 2,035 | 5,976 | 7,196 | 13,292 | ||
Income tax expense | 529 | 1,494 | 1,870 | 3,286 | ||
Net income available to common shareholders | $ 1,506 | $ 4,482 | $ 5,326 | $ 10,006 | ||
Earnings per common share: | ||||||
Basic (in USD per share) | $ 0.16 | $ 0.47 | $ 0.56 | $ 1.06 | ||
Diluted (in USD per share) | $ 0.16 | $ 0.46 | $ 0.55 | $ 1.03 | ||
[1]Provision for credit loss amounts for periods prior to the ASC 326 adoption date of January 1, 2023 are reported in accordance with previously applicable GAAP. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,506 | $ 4,482 | $ 5,326 | $ 10,006 |
Other comprehensive income/(loss) items: | ||||
Unrealized losses on available-for-sale securities | 0 | 0 | 0 | (2,591) |
Income tax effect | 0 | 0 | 0 | 638 |
Amortization of net unrealized loss for the reclassification of available-for-sale securities transferred to held-to-maturity included in interest income | 89 | 86 | 180 | 86 |
Income tax effect | (29) | (21) | (51) | (21) |
Unrealized gain on cash flow hedge | 952 | 0 | 684 | 0 |
Income tax effect | (165) | 0 | (165) | 0 |
Total other comprehensive income (loss) items | 847 | 65 | 648 | (1,888) |
Comprehensive income | $ 2,353 | $ 4,547 | $ 5,974 | $ 8,118 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative change in accounting principle | [1] | Adjusted for change in accounting principle | Shares Common Stock | Shares Common Stock Adjusted for change in accounting principle | Additional Paid-In Capital | Additional Paid-In Capital Adjusted for change in accounting principle | Retained Earnings | Retained Earnings Cumulative change in accounting principle | [1] | Retained Earnings Adjusted for change in accounting principle | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Adjusted for change in accounting principle |
Balance at Beginning (in shares) at Dec. 31, 2021 | 9,419,271 | |||||||||||||
Balance at Beginning at Dec. 31, 2021 | $ 219,041 | $ 188,629 | $ 30,189 | $ 223 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 10,006 | 10,006 | ||||||||||||
Other comprehensive income (loss), net of tax and reclassification | (1,888) | (1,888) | ||||||||||||
Settlement of share awards (in shares) | 52,630 | |||||||||||||
Settlement of share awards | (688) | (688) | ||||||||||||
Options exercised (in shares) | 6,809 | |||||||||||||
Options exercised | 146 | 146 | ||||||||||||
Stock-based compensation | 1,407 | 1,407 | ||||||||||||
Balance at Ending (in shares) at Jun. 30, 2022 | 9,478,710 | |||||||||||||
Balance at Ending at Jun. 30, 2022 | 228,024 | 189,494 | 40,195 | (1,665) | ||||||||||
Balance at Beginning (in shares) at Dec. 31, 2021 | 9,419,271 | |||||||||||||
Balance at Beginning at Dec. 31, 2021 | 219,041 | 188,629 | 30,189 | 223 | ||||||||||
Balance at Ending (in shares) at Dec. 31, 2022 | 9,495,440 | 9,495,440 | ||||||||||||
Balance at Ending at Dec. 31, 2022 | $ 240,864 | $ (5,319) | $ 235,545 | 190,494 | $ 190,494 | 51,887 | $ (5,319) | $ 46,568 | (1,517) | $ (1,517) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | |||||||||||||
Balance at Beginning (in shares) at Mar. 31, 2022 | 9,430,007 | |||||||||||||
Balance at Beginning at Mar. 31, 2022 | $ 223,266 | 189,283 | 35,713 | (1,730) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 4,482 | 4,482 | ||||||||||||
Other comprehensive income (loss), net of tax and reclassification | 65 | 65 | ||||||||||||
Settlement of share awards (in shares) | 44,405 | |||||||||||||
Settlement of share awards | (557) | (557) | ||||||||||||
Options exercised (in shares) | 4,298 | |||||||||||||
Options exercised | 88 | 88 | ||||||||||||
Stock-based compensation | 680 | 680 | ||||||||||||
Balance at Ending (in shares) at Jun. 30, 2022 | 9,478,710 | |||||||||||||
Balance at Ending at Jun. 30, 2022 | 228,024 | 189,494 | 40,195 | (1,665) | ||||||||||
Balance at Beginning (in shares) at Dec. 31, 2022 | 9,495,440 | 9,495,440 | ||||||||||||
Balance at Beginning at Dec. 31, 2022 | 240,864 | $ (5,319) | $ 235,545 | 190,494 | $ 190,494 | 51,887 | $ (5,319) | $ 46,568 | (1,517) | $ (1,517) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 5,326 | 5,326 | ||||||||||||
Other comprehensive income (loss), net of tax and reclassification | 648 | 648 | ||||||||||||
Dissolution of RSI entity | 0 | 751 | (751) | |||||||||||
Settlement of share awards (in shares) | 43,871 | |||||||||||||
Settlement of share awards | (283) | (283) | ||||||||||||
Options exercised (in shares) | 5,760 | |||||||||||||
Options exercised | 115 | 115 | ||||||||||||
Stock-based compensation | 891 | 891 | ||||||||||||
Balance at Ending (in shares) at Jun. 30, 2023 | 9,545,071 | |||||||||||||
Balance at Ending at Jun. 30, 2023 | 242,242 | 191,968 | 51,143 | (869) | ||||||||||
Balance at Beginning (in shares) at Mar. 31, 2023 | 9,507,564 | |||||||||||||
Balance at Beginning at Mar. 31, 2023 | 239,822 | 191,901 | 49,637 | (1,716) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 1,506 | 1,506 | ||||||||||||
Other comprehensive income (loss), net of tax and reclassification | 847 | 847 | ||||||||||||
Settlement of share awards (in shares) | 37,507 | |||||||||||||
Settlement of share awards | (232) | (232) | ||||||||||||
Stock-based compensation | 299 | 299 | ||||||||||||
Balance at Ending (in shares) at Jun. 30, 2023 | 9,545,071 | |||||||||||||
Balance at Ending at Jun. 30, 2023 | $ 242,242 | $ 191,968 | $ 51,143 | $ (869) | ||||||||||
[1]Refer to Note 1 - Organization and Summary of Significant Accounting Policies for further information. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Cash flows from operating activities | |||
Net income | $ 5,326 | $ 10,006 | |
Adjustments to reconcile net income to net cash from operating activities: | |||
Net amortization of investment securities | (12) | 126 | |
Stock dividends received on correspondent bank stock | (318) | (33) | |
Provision for credit losses | 1,533 | 729 | [1] |
Net loss on loans held for sale | 178 | 0 | |
Net gain on mortgage loans | (1,793) | (3,227) | |
Origination of mortgage loans held for sale | (151,189) | (470,494) | |
Proceeds from mortgage loans | 142,196 | 478,050 | |
Gain on disposal of fixed assets | 0 | (50) | |
Depreciation and amortization | 1,164 | 1,191 | |
Net (accretion)/amortization of purchase accounting adjustments | 285 | (241) | |
Deferred income tax expense/(benefit) | (330) | (2,310) | |
Increase in cash surrender value of company-owned life insurance | (181) | (173) | |
Stock-based compensation | 891 | 1,407 | |
Change in fair value of equity securities | 1 | (267) | |
Change in fair value of loans accounted for under the fair value option | 1,667 | 155 | |
Change in fair value of loans held for sale | (551) | 419 | |
Net changes in operating assets and liabilities: | |||
Change in accounts receivable | (89) | 364 | |
Change in accrued interest receivable and other assets | 233 | (1,104) | |
Change in accrued interest payable and other liabilities | (3,640) | (3,070) | |
Net cash (used in) provided by operating activities | (4,629) | 11,478 | |
Activity in available-for-sale securities: | |||
Maturities, prepayments, and calls | 0 | 3,218 | |
Purchases | 0 | (9,000) | |
Activity in held-to-maturity securities: | |||
Maturities, prepayments, and calls | 3,701 | 3,124 | |
Purchases | 0 | (28,439) | |
Purchases of correspondent bank stock | (26,082) | (2,978) | |
Redemption of correspondent bank stock | 19,992 | 1,243 | |
Contributions to low-income housing tax credit investments | 0 | (214) | |
Loan and note receivable originations and principal collections, net | (65,652) | (173,728) | |
Purchases of premises and equipment | (1,425) | (1,150) | |
Proceeds from loans held for sale previously classified as loans held for investment | 40,602 | 0 | |
Purchases of loans | (1,162) | (24,732) | |
Net cash used in investing activities | (30,026) | (232,656) | |
Cash flows from financing activities | |||
Net change in deposits | (29,835) | (35,676) | |
Payments to Federal Home Loan Bank borrowings | (881,776) | 0 | |
Proceeds from Federal Home Loan Bank borrowings | 977,645 | 70,000 | |
Payments to Federal Reserve borrowings | (221,689) | (21,406) | |
Proceeds from Federal Reserve borrowings | 291,534 | 0 | |
Payments on subordinated notes | 0 | (6,575) | |
Proceeds from the exercise of stock options | 115 | 146 | |
Cash paid for withholding taxes on share-based awards | (283) | (688) | |
Net cash provided by financing activities | 135,711 | 5,801 | |
Net change in cash and cash equivalents | 101,056 | (215,377) | |
Cash and cash equivalents, beginning of year | 196,512 | 386,983 | |
Cash and cash equivalents, end of period | 297,568 | 171,606 | |
Supplemental cash flow information: | |||
Interest paid on deposits and borrowed funds | 32,413 | 2,925 | |
Income tax payment | 2,170 | 4,118 | |
Cash paid for lease liabilities | 1,592 | 1,542 | |
Supplemental noncash disclosures: | |||
Transfer of loans held for investment to loans held for sale | 39,221 | 0 | |
CECL adoption | 5,319 | 0 | |
RSI dissolution | 751 | 0 | |
Change in unrealized loss on available-for-sale securities | 0 | (2,591) | |
Lease right-of-use-asset obtained in exchange for lease liabilities | 1,704 | 0 | |
Transfer of securities from available-for-sale to held-to-maturity | 0 | 58,727 | |
Security purchase settled in subsequent period | 0 | (3,000) | |
Transfers from loans to other real estate owned | $ 0 | $ 378 | |
[1]Provision for credit loss amounts for periods prior to the ASC 326 adoption date of January 1, 2023 are reported in accordance with previously applicable GAAP. |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Basis of Presentation : The condensed consolidated financial statements include the accounts of First Western Financial, Inc. ("FWFI"), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly-owned subsidiaries listed below (collectively referred to as the "Company," "we," "us," or "our"). FWFI is a bank holding company with financial holding company status registered with the Board of Governors of the Federal Reserve System. FWFI wholly owns the following subsidiary: First Western Trust Bank (the "Bank"). The Bank wholly owns First Western Merger Corporation ("Merger Corp"), which is therefore indirectly wholly-owned by FWFI. RRI, LLC ("RRI"), which was wholly owned by the Bank, was dissolved on February 3, 2023. Ryder, Stilwell Inc. ("RSI"), which was wholly owned by FWFI, was dissolved on March 21, 2023. The Company provides a fully-integrated suite of wealth management services including: private banking, personal trust, investment management, mortgage loans, and institutional asset management services to individual and corporate clients principally in Colorado (metro Denver, Aspen, Boulder, Fort Collins, and Vail Valley), Arizona (Phoenix and Scottsdale), California (Century City), Montana (Bozeman), and Wyoming (Jackson, Pinedale, and Rock Springs). The Company’s revenues are generated from its full range of product offerings as noted above, but principally from net interest income (the interest income earned on the Bank’s assets net of funding costs), fee-based wealth advisory, investment management, asset management and personal trust services, and net gains earned on mortgage loans. The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2022 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2022. In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of results that may be expected for the full year ending December 31, 2023. In preparing the condensed consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be significantly different from those estimates. The condensed consolidated financial statements and notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC. Consolidation : The Company’s policy is to consolidate all majority-owned subsidiaries in which it has a controlling financial interest and variable-interest entities where the Company is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Business Combinations and Divestitures : Business combinations are accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total consideration transferred in connection with the acquisition is allocated to the tangible and intangible assets acquired, liabilities assumed, and any non-controlling interest in the acquired entity based on fair values. Goodwill acquired in connection with business combinations represents the excess of consideration transferred over the net tangible and identifiable intangible assets acquired. Certain assumptions and estimates are used in evaluating the fair value of assets acquired and liabilities assumed. These estimates may be affected by factors such as changing market conditions or changes in government regulations. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the condensed consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change include: the determination of the allowance for credit losses, the evaluation of goodwill impairment, and the fair value of certain financial instruments. Concentration of Credit Risk : Most of the Company’s lending activity is to clients located in and around metro Denver, Aspen, Fort Collins, and Vail, Colorado; Phoenix and Scottsdale, Arizona; Bozeman, Montana; and Jackson, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. As of June 30, 2023 and December 31, 2022, 80.0% and 77.9%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company. Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness of a hedge. These three types are as follows: • Fair Value Hedge: a hedge of the fair value of a recognized asset or liability or an unrecognized firm commitment. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. • Cash Flow Hedge: a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transactions affect earnings. • Stand-alone derivative: an instrument with no hedging designation. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement in the same line as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitments is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. Mortgage Banking Derivatives : Commitments to fund mortgage loans, interest rate lock commitments ("IRLC"), and forward sale commitments ("FSC"), to be sold in the secondary market for the future delivery of these loans are accounted for as free standing derivatives. The fair value of the IRLC is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. The Company sells mortgage loans to third party investors at the best execution available which includes best efforts, mandatory, and bulk bids. Loans committed under mandatory or bulk bid are considered FSC and qualify as financial derivatives. Fair values of these mortgage derivatives are estimated based on the change in the loan pricing from the date of the commitment to the period end date for any unsettled commitments. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. In order to manage the interest rate risk on our uncommitted IRLC and mortgage loans held for sale pipeline, the Company enters into mortgage derivative financial instruments called To Be Announced ("TBA"), which we refer to as forward commitments. TBA agreements are forward contracts to purchase mortgage backed securities ("MBS") that will be issued by a US Government Sponsored Enterprise. The Bank purchases or sells these derivatives to offset the changes in value of our mortgage loans held for sale and IRLC adjusted pipeline where we have exposure to interest rate volatility. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. Revenue Recognition : In accordance with the Financial Accounting Standards Board ("FASB"), Revenue Contracts with Customers ("Topic 606"), trust and investment management fees are earned by providing trust and investment services to customers. The Company’s performance obligation under these contracts is satisfied over time as the services are provided. Fees are recognized monthly based on the average monthly value of the assets under management and the corresponding fee rate based on the terms of the contract. Receivables are recorded on the Condensed Consolidated Balance Sheets in the Accounts receivable line item. Income related to trust and investment management fees, bank fees, and risk management and insurance fees on the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 are considered in scope of Topic 606. Transition of LIBOR to an Alternative Reference Rate : In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), announced that after 2022 it will no longer persuade or compel banks to submit rates for the calculation of LIBOR. In response, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee and on February 27, 2023 the Federal Reserve Board adopted a final rule establishing the Secured Overnight Financing Rate ("SOFR") as the replacement rate index for LIBOR. SOFR is based on a broad segment of the overnight Treasury repurchase market and is intended to be a measure of the cost of borrowing cash overnight collateralized by Treasury securities. On December 21, 2022, the FASB issued Accounting Standards Update (ASU) 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. On June 30, 2023, LIBOR ceased to be a representative index rate. ASU 2022-06 extends the period of time financial statement preparers can utilize the reference rate reform relief guidance through December 31, 2024. Certain of the Company’s assets and liabilities are indexed to LIBOR, with exposure extending beyond December 31, 2023. The Company is currently evaluating and planning for the replacement of the LIBOR benchmark interest rate, including the transition to SOFR as the replacement. In general, the transition away from LIBOR may result in increased market risk, credit risk, operational risk and business risk for the Company. The Company has developed a LIBOR transition plan, which addresses governance, risk management, legal, operational, systems, fallback language, and other aspects of planning. The company no longer originates LIBOR indexed loans and is wor king on transitioning existing LIBOR loans to SOFR. Consumer indexed loans are being managed in accordance with Interagency Guidance. Bank Term Funding Program: On March 12, 2023, in response to two large bank failures, the Federal Reserve Board announced it would make additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of depositors. The additional funding will be made available through the creation of a new Bank Term Funding Program (“BTFP”), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets valued at par as collateral. The BTFP is meant to be an additional resource of liquidity against high-quality securities, eliminating an institutions need to quickly sell those securities in times of stress. As of June 30, 2023, the Company has pledged a par value of $47.3 million in securities under the BTFP and borrowed $31.0 million with a maturity date of March 27, 2024. The rate for the borrowing is based on the one year overnight swap rate plus 10 basis points and is fixed over the term of the advanced based on the date of the advance. See Note 7 - Borrowings for details on the Company’s borrowings. Reclassifications : Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income or total shareholders’ equity. Recently adopted accounting pronouncements : The following reflects recent accounting pronouncements that were adopted by the Company since the end of the Company’s fiscal year ended December 31, 2022. On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) ("ASU 2016-13"). ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss ("CECL") model. The CECL model is applicable to the measurement of credit losses on the financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. ASU 2016-13 was set to be effective for most public companies on January 1, 2020. However, at the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for smaller reporting companies ("SRCs") to January 1, 2023. The Company adopted ASU 2016-13 on January 1, 2023 using the modified retrospective method with no adjustments to prior period comparative financial statements for all financial assets measured at amortized cost and off-balance sheet credit exposure as well as held to maturity securities. In accordance with the standard, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings as of the date of adoption. Upon adoption the Company recorded a decrease to retained earnings of $5.3 million, net of tax. The total transition adjustment prior to the tax impact included $3.5 million related to allowance for credit losses on loans, $3.5 million related to off-balance sheet commitments, and $0.1 million related to held-to-maturity securities. Results for reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The following table illustrates the day one adoption impact of ASU 2016-13 (dollars in thousands): Balance at January 1, 2023 (before adjustment) Cumulative effect adjustment amount Balance January 1, 2023 (after adjustment) Assets Allowance for credit losses: loans $ (17,183) $ (3,470) $ (20,653) Allowance for credit losses: held-to-maturity securities — (71) (71) Deferred tax assets, net 6,914 1,703 8,617 Liabilities Allowance for credit losses on off-balance sheet exposures 419 3,481 3,900 Shareholders’ Equity Retained earnings, net of tax 51,887 (5,319) 46,568 Allowance for credit losses - loans: The allowance for credit losses (“ACL”) is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The ACL excludes loans held for sale and loans accounted for under the fair value option. The Company elected to not measure an ACL for accrued interest receivables, as we write off applicable accrued interest receivable balances in a timely manner when a loan is placed on non-accrual status, in which any accrued but uncollected interest is reversed from current income. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Actual Company and regional peer historical credit loss experience provides the basis for the estimation of expected credit losses. The Company identified and grouped portfolio segments based on risk characteristics and underlying collateral. The call code for each financial asset type was assessed and, where appropriate, expanded for certain call codes into separate segments based on risk characteristics. ACL for pooled loans are estimated using a discounted cash flow (“DCF”) methodology using the amortized cost basis (excluding interest) for all loans modeled within a performing pool of loans. The DCF analysis pairs loan-level term information, for example, maturity date, payment amount, interest rate, with top-down pool assumptions such as default rates, prepayment speeds, to produce individual expected cash flows for every instrument in the segment. The results are then aggregated to produce segment level results and reserve requirements for each segment. The quantitative DCF model also incorporates forward-looking macroeconomic information over a reasonable and supportable period of two years. Subsequent to the two-year period, the Company reverts to its historical loss rate and historical prepayment and curtailment speeds on a straight-line basis over a one year reversion period. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pooled loan evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Qualitative adjustments to historical loss data are made based on management’s assessment of the risks that may lead to a future loan loss or differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, changes in environmental and economic conditions, or other relevant factors. Allowance for credit losses - held-to-maturity securities : Held-to maturity securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The majority of our held-to-maturity investment portfolio consists of securities issues by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. With respect to these securities, we consider the risk of credit loss to be zero and, therefore, we have elected the practical expedient to not record an ACL for these securities. The Company's non-government backed securities include private label CMO and MBS and bank subordinated debt. Private label refers to private institutions such as brokerage firms, banks, and home builders, that also securitize mortgages. Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio into the follow major security types: Corporate bonds and Corporate CMO and MBS. Allowance for credit losses - off-balance sheet credit exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the Provision for credit losses and is recorded in Other liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The probability of funding is based on historical utilization statistics for unfunded loan commitments. The loss rates used are calculated using the same assumptions as the associated funded balance. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326); Troubled Debt Restructurings (“TDR”) and Vintage Disclosures. This ASU was effective for the Company on January 1, 2023. The amendments eliminate the TDR recognition and measurement guidance and instead require an entity to evaluate whether the modification represents a new loan or a continuation of an existing loan (consistent with accounting for other modifications). The amendments also enhance existing disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The Company adopted ASU 2022-02 on January 1, 2023. Refer to Note 3 - Loans and the Allowance for Credit Losses for additional information on the required disclosures. Recently issued accounting pronouncements, not yet adopted : The following reflects pending pronouncements with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2022. On March 29, 2023 the FASB issued ASU 2023-02 Investments in Tax Structures which changes the accounting methodology to allow proportional amortization method to be expanded beyond investments in low income tax housing tax credits (“LIHTC”) structures. This guidance is effective January 1, 2024 and currently the Company does not have any investments that would be impacted but will evaluate as other investments are considered as early adoption is permitted. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following presents the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands): June 30, 2023 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Allowance for Credit Losses (1) Investment securities held-to-maturity: U.S. Treasury debt $ 247 $ — $ (10) $ 237 $ — Corporate bonds 23,758 — (3,507) 20,251 (71) GNMA mortgage-backed securities – residential 36,921 — (3,278) 33,643 — FNMA mortgage-backed securities – residential 6,370 — (545) 5,825 — Government CMO and MBS - commercial 6,293 11 (412) 5,892 — Corporate CMO and MBS 3,951 — (248) 3,703 — Total securities held-to-maturity $ 77,540 $ 11 $ (8,000) $ 69,551 $ (71) (1) Refer to Note 1—Organization and Summary of Significant Accounting Policies for further information on our credit loss methodology. December 31, 2022 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Investment securities held-to-maturity: U.S. Treasury debt $ 243 $ — $ (9) $ 234 Corporate bonds 23,819 — (2,453) 21,366 GNMA mortgage-backed securities – residential 39,426 — (2,800) 36,626 FNMA mortgage-backed securities – residential 6,708 — (506) 6,202 Government CMO and MBS - commercial 6,786 13 (403) 6,396 Corporate CMO and MBS 4,074 — (180) 3,894 Total securities held-to-maturity $ 81,056 $ 13 $ (6,351) $ 74,718 The Company reassessed classification of investment securities and, effective April 1, 2022, elected to transfer all securities, fair valued at $58.7 million, from available-for-sale to held-to-maturity. The related unrealized loss of $2.3 million included in accumulated other comprehensive loss on April 1, 2022 remained in accumulated other comprehensive loss and is being amortized out with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. No gain or loss was recorded at the time of transfer. As of June 30, 2023, the amortized cost and estimated fair value of held-to-maturity securities have contractual maturity dates shown in the table below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2023 Amortized Fair Due within one year $ — $ — Due between one year and five years 2,239 2,047 Due between five years and ten years 21,513 18,208 Due after ten years 253 233 Securities (CMO and MBS) 53,535 49,063 Total $ 77,540 $ 69,551 During the year ended December 31, 2022, the Company committed $6.0 million in total to two bank technology funds. During the six months ended June 30, 2023, the Company made $0.4 million in contributions to the partnerships. During the year ended December 31, 2022, the Company made $1.3 million in contributions to both partnerships and received a $0.1 million return on investment. As of June 30, 2023, the Company held a balance of $1.7 million, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $4.3 million in future contributions. In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. The Company made $0.2 million in contributions to the SBIC fund during the six months ended June 30, 2023. During the year ended December 31, 2022, the Company did not make any contributions to the SBIC fund and received a $0.1 million return of capital. As of June 30, 2023 and December 31, 2022, the Company held a balance of $2.2 million and $2.0 million, respectively, in the SBIC fund, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $0.8 million in future SBIC investments. As of June 30, 2023, securities with market values totaling $48.4 million were pledged to secure various public deposits and credit facilities of the Company, including $47.3 million pledged under the BTFP program (refer to Note 1 - Organization and Summary of Significant Accounting Policies for more information on the BTFP program). As of December 31, 2022, securities with carrying values $22.6 million were pledged to secure various public deposits and credit facilities of the Company. As of June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity. The following presents securities with unrecognized losses aggregated by major security type and length of time in a continuous unrecognized loss position as of the date noted (dollars in thousands, before tax): Less than 12 Months 12 Months or Longer Total June 30, 2023 Fair Unrecognized Fair Unrecognized Fair Unrecognized Investment securities held-to-maturity: U.S. Treasury debt $ — $ — $ 237 $ (10) $ 237 $ (10) Corporate bonds — — 20,251 (3,507) 20,251 (3,507) GNMA mortgage-backed securities – residential 6,267 (393) 27,377 (2,885) 33,644 (3,278) FNMA mortgage-backed securities – residential — — 5,825 (545) 5,825 (545) Government CMO and MBS - commercial 52 * 5,241 (412) 5,293 (412) Corporate CMO and MBS 2,689 (162) 990 (86) 3,679 (248) Total $ 9,008 $ (555) $ 59,921 $ (7,445) $ 68,929 $ (8,000) (*) Immaterial Less than 12 Months 12 Months or Longer Total December 31, 2022 Fair Unrecognized Fair Unrecognized Fair Unrecognized Investment securities held-to-maturity: U.S. Treasury debt $ — $ — $ 234 $ (9) $ 234 $ (9) Corporate bonds 20,911 (2,436) 455 (17) 21,366 (2,453) GNMA mortgage-backed securities – residential 22,371 (1,051) 14,255 (1,749) 36,626 (2,800) FNMA mortgage-backed securities - residential 6,202 (506) — — 6,202 (506) Government CMO and MBS - commercial 5,591 (403) — — 5,591 (403) Corporate CMO and MBS 3,499 (147) 395 (33) 3,894 (180) Total $ 58,574 $ (4,543) $ 15,339 $ (1,808) $ 73,913 $ (6,351) The Company did not sell any securities during the three and six months ended June 30, 2023 or during the year ended December 31, 2022. Allowance for Credit Losses for HTM Securities Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The majority of our held-to-maturity investment portfolio consists of securities issues by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed securities include private label CMO and MBS and bank subordinated debt. Accrued interest receivable on held-to-maturity debt securities totaled $0.3 million at June 30, 2023 and is excluded from the estimate of credit losses. Refer to Note 1 - Organization and Summary of Significant Accounting Policies for additional information on the Company’s methodology on estimating credit losses. The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Corporate Bonds Corporate CMO Allowance for credit losses: Beginning balance $ 71 $ — Provision for credit losses — — Securities charged-off (recoveries) — — Total ending allowance balance $ 71 $ — Six Months Ended June 30, 2023 Corporate Bonds Corporate CMO Allowance for credit losses: Beginning balance $ — $ — Impact of ASU 2016-13 adoption (1) 71 — Provision for credit losses — — Securities charged-off (recoveries) — — Total ending allowance balance $ 71 $ — (1) Refer to Note 1—Organization and Summary of Significant Accounting Policies for further information on our credit loss methodology. The Company monitors the credit quality of held-to-maturity securities on a quarterly basis. As of June 30, 2023, there were no held-to-maturity securities past due or on non-accrual. |
LOANS AND THE ALLOWANCE FOR CRE
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES | LOANS AND THE ALLOWANCE FOR CREDIT LOSSES The following presents a summary of the Company’s loans at amortized cost as of the dates noted (dollars in thousands): June 30, December 31, Cash, Securities, and Other $ 150,620 $ 165,559 Consumer and Other 21,762 26,070 Construction and Development 310,382 285,627 1-4 Family Residential 880,600 899,722 Non-Owner Occupied CRE 558,276 493,134 Owner Occupied CRE 217,020 214,189 Commercial and Industrial 339,399 361,791 Total 2,478,059 2,446,092 Allowance for credit losses (22,044) (17,183) Total, net $ 2,456,015 $ 2,428,909 Loans accounted for under the fair value option (1) 17,523 23,321 Loans, net $ 2,473,538 $ 2,452,230 ______________________________________ (1) Includes $18.3 million and $23.4 million of unpaid principal balance of loans held for investment measured at fair value as of June 30, 2023 and December 31, 2022, respectively. Includes fair value adjustments on loans held for investment accounted for under the fair value option. See Note 13 – Fair Value. As of June 30, 2023 and December 31, 2022, total loans held for investment included $221.0 million and $230.4 million, respectively, of performing loans purchased through mergers or acquisitions. As of June 30, 2023, the Cash, Securities, and Other portion of the loan portfolio included $5.4 million of SBA Paycheck Protection Program (“PPP”) loans, or 3.6% of the total category. As of December 31, 2022, the Cash, Securities, and Other portion of the loan portfolio included $6.9 million of PPP loans, or 4.2% of the total category. As of June 30, 2023, the Company’s Commercial and Industrial loans included four Main Street Lending Program (“MSLP”) loans with the net carrying amount of $5.5 million, or 1.6% of the total category. As of December 31, 2022, the Company’s Commercial and Industrial loans included five MSLP loans with the net carrying amount of $5.9 million, or 1.6% of the total category. Loan Modifications As a result of the COVID-19 pandemic, a loan modification program was designed and implemented to assist our clients experiencing financial stress resulting from the economic impacts caused by the global pandemic. The Company offered loan extensions, temporary payment moratoriums, and financial covenant waivers for commercial and consumer borrowers impacted by the pandemic who have a pass risk rating and have not been delinquent over 30 days on payments in the last two years. In 2021, the deferral period ended for all non-acquired loans previously modified and payments resumed under the original terms. As of June 30, 2023, the Company’s loan portfolio included 45 non-acquired loans which were previously modified under the loan modification program, totaling $76.0 million. Through the Teton Acquisition, the Company acquired loans which were previously modified and are no longer in their deferral period. As of June 30, 2023, there were 14 of these loans, totaling $3.1 million. All loans modified in response to COVID-19 are classified as performing and pass rated as of June 30, 2023. These loans are included in the allowance for credit loss general reserve in accordance with ASU 2016-13. Management has increased our loan level reviews and portfolio monitoring to address the changing environment. Management believes the diversity of the loan portfolio is prudent and remains consistent with the credit culture and goals of the Bank. Interest accrued during the modification term on modified loans is deferred to the end of the loan term. Accrued interest receivable is excluded from the estimate of credit losses. For the three and six months ended June 30, 2023, the Company made protective advances of $0.3 million and $0.5 million to borrowers experiencing financial difficulty. The following presents, by class, an aging analysis of the amortized cost basis in loans past due as of the date noted (dollars in thousands): June 30, 2023 30-59 60-89 90 or Total Current Total Loans Accounted for Under the Fair Value Option (1) Total Loans Cash, Securities, and Other $ 1,704 $ — $ — $ 1,704 $ 148,916 $ 150,620 $ — $ 150,620 Consumer and Other 9 1,016 6 1,031 20,731 21,762 17,523 39,285 Construction and Development — — — — 310,382 310,382 — 310,382 1-4 Family Residential 651 — — 651 879,949 880,600 — 880,600 Non-Owner Occupied CRE — — — — 558,276 558,276 — 558,276 Owner Occupied CRE 3,950 — — 3,950 213,070 217,020 — 217,020 Commercial and Industrial 7,012 11,014 10,030 28,056 311,343 339,399 — 339,399 Total $ 13,326 $ 12,030 $ 10,036 $ 35,392 $ 2,442,667 $ 2,478,059 $ 17,523 $ 2,495,582 December 31, 2022 30-59 60-89 90 or Total Current Total Amortized Cost Loans Accounted for Under the Fair Value Option (1) Total Loans Cash, Securities, and Other $ 1,735 $ 539 $ 4 $ 2,278 $ 163,281 $ 165,559 $ — $ 165,559 Consumer and Other 657 5 5 667 25,403 26,070 23,321 49,391 Construction and Development — — 201 201 285,426 285,627 — 285,627 1-4 Family Residential 1,752 — 5 1,757 897,965 899,722 — 899,722 Non-Owner Occupied CRE 1,071 — — 1,071 492,063 493,134 — 493,134 Owner Occupied CRE 1,165 — — 1,165 213,024 214,189 — 214,189 Commercial and Industrial 4,858 10,648 1,319 16,825 344,966 361,791 — 361,791 Total $ 11,238 $ 11,192 $ 1,534 $ 23,964 $ 2,422,128 $ 2,446,092 $ 23,321 $ 2,469,413 (1) Refer to Note 13 - Fair Value for additional information on the measurement of loans accounted for under the fair value option. As of June 30, 2023, the Company had no loans that were more than 90 days delinquent and accruing interest. As of December 31, 2022, the Company had one loan, totaling an immaterial amount, in the Commercial and Industrial portfolio that was more than 90 days delinquent and accruing interest. Non-Accrual Loans The accrual of interest on loans is discontinued at the time the loan becomes 90 days or more delinquent unless the loan is well secured and in the process of collection or renewal due to maturity. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual status or charged off if collection of interest or principal is considered doubtful. The following presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing by class as of the date noted (dollars in thousands). As of June 30, 2023 Non-accrual loans with Total non-accrual loans Loans past due over 89 days still accruing Cash, Securities, and Other $ — $ — $ — Consumer and Other 6 6 — Construction and Development — — — 1-4 Family Residential — — — Owner Occupied CRE — — — Commercial and Industrial (1) 2,076 10,030 — Total $ 2,082 $ 10,036 $ — (1) The Company recorded an allowance of $2.2 million on three individually analyzed loans totaling $8.9 million as of June 30, 2023. The following presents the recorded investment in non-accrual loans by class as of the date noted (dollars in thousands): As of December 31, 2022 Non-accrual loans with Total non-accrual loans Loans past due over 89 days still accruing Cash, Securities, and Other $ 4 $ 4 $ — Consumer and Other 5 5 — Construction and Development 201 201 — 1-4 Family Residential — — — Owner Occupied CRE 1,165 1,165 — Commercial and Industrial 10,762 10,762 25 Total (1) $ 12,137 $ 12,137 $ 25 (1) The Company did not record a specific reserve on any individually analyzed loans as of December 31, 2022. The Company recognized $0.2 million of interest income on non-accrual loans during the three and six months ended June 30, 2023. Additionally, two non-accrual loans totaling $1.8 million were paid off during the second quarter of 2023. The Company recognized an immaterial amount of interest income on non-accrual loans during the three and six months ended June 30, 2022. Non-accrual loans, excluding loans held for investment measured at fair value, are classified as collateral dependent loans and are individually evaluated. The following presents the amortized cost basis of collateral-dependent loans, which are individually evaluated to determine expected credit losses, by class of loans as of the date noted (dollars in thousands): As of June 30, 2023 Collateral Dependent Loans Secured by Real Estate Secured by Cash and Secured by Other Total Cash, Securities, and Other $ — $ — $ — $ — Consumer and Other — — — — Construction and Development — — — — 1-4 Family Residential — — — — Non-Owner Occupied CRE — — — — Owner Occupied CRE — — — — Commercial and Industrial — — 10,030 10,030 Total $ — $ — $ 10,030 $ 10,030 Allowance for Credit Losses on Loans Beginning January 1, 2023, the allowance for credit losses for loans is measured on the loan’s amortized cost basis, excluding interest receivable. Interest receivable excluded at June 30, 2023 and December 31, 2022 was $10.5 million and $9.8 million, respectively, presented in Accrued interest receivable on the Condensed Consolidated Balance Sheets. Refer to Note 1 - Organization and Summary of Significant Accounting Policies for additional information related to the Company’s methodology on estimated credit losses. The Allowance for credit losses on loans (“ACL”) represents Management’s best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectibility over the loans’ contractual terms, adjusted for expected prepayments when appropriate. Our quantitative discounted cash flow models use economic forecasts including; housing price index (“HPI”), gross domestic product (“GDP”), and national unemployment. The HPI, GDP and unemployment twelve month forecasts improved as of June 30, 2023 when compared to December 31, 2022. As a result, we saw decreased probability of default rates and loss given default rates which in turn reduced our model loss rates, partially offset by loan growth and changes in our segment mix, resulting in a $0.8 million release of provision on pooled loans. The individually analyzed loan allowance was increased $2.2 million as of June 30, 2023. Allocation of a portion of the allowance for credit losses to one category of loans does not preclude its availability to absorb losses in other categories. The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2023 (dollars in thousands): Cash, Consumer Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for credit losses for the three months ended June 30, 2023 Beginning balance $ 1,451 $ 196 $ 6,229 $ 3,821 $ 2,709 $ 1,272 $ 4,165 $ 19,843 Provision for credit losses (140) (50) 1,267 (242) (214) (90) 1,678 2,209 Charge-offs — (13) — — — — — (13) Recoveries — 4 — — — — 1 5 Ending balance $ 1,311 $ 137 $ 7,496 $ 3,579 $ 2,495 $ 1,182 $ 5,844 $ 22,044 Changes in allowance for credit losses for the six months ended June 30, 2023 Beginning balance, prior to the adoption of ASU 2016-13 $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Impact of adopting ASU 2016-13 193 106 4,681 — (2,808) (689) (104) 2,091 3,470 Provision for credit losses (80) (145) 790 78 (306) (224) 1,291 1,404 Charge-offs — (30) — — — — — (30) Recoveries — 15 — — — — 2 17 Ending balance $ 1,311 $ 137 $ 7,496 $ 3,579 $ 2,495 $ 1,182 $ 5,844 $ 22,044 Allowance for credit losses as of June 30, 2023 allocated to loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ 2,195 $ 2,195 Collectively 1,311 137 7,496 3,579 2,495 1,182 3,649 19,849 Ending balance $ 1,311 $ 137 $ 7,496 $ 3,579 $ 2,495 $ 1,182 $ 5,844 $ 22,044 Loans as of June 30, 2023: Individually evaluated $ — $ — $ — $ — $ — $ — $ 10,030 $ 10,030 Collectively evaluated 150,620 21,762 310,382 880,600 558,276 217,020 329,369 2,468,029 Loans held for investment measured at fair value — 17,523 — — — — — 17,523 Ending balance $ 150,620 $ 39,285 $ 310,382 $ 880,600 $ 558,276 $ 217,020 $ 339,399 $ 2,495,582 Cash, Consumer Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for loan losses for the three months ended June 30, 2022 Beginning balance $ 1,440 $ 283 $ 954 $ 3,789 $ 2,867 $ 1,328 $ 3,224 $ 13,885 Provision for loan losses (246) (16) 120 1,056 368 149 (912) 519 Charge-offs — (95) — — — — — (95) Recoveries — 48 — — — — — 48 Ending balance $ 1,194 $ 220 $ 1,074 $ 4,845 $ 3,235 $ 1,477 $ 2,312 $ 14,357 Changes in allowance for loan losses for the six months ended June 30, 2022 Beginning balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 Provision for loan losses (404) 58 (18) 1,292 283 185 (667) 729 Charge-offs — (192) — — — — — (192) Recoveries — 88 — — — — — 88 Ending balance $ 1,194 $ 220 $ 1,074 $ 4,845 $ 3,235 $ 1,477 $ 2,312 $ 14,357 Allowance for loan losses as of December 31, 2022 allocated to loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,198 191 2,025 6,309 3,490 1,510 2,460 17,183 Ending balance $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Loans as of December 31, 2022: Individually evaluated $ 4 $ 5 $ 201 $ — $ — $ 1,165 $ 10,762 $ 12,137 Collectively evaluated 165,555 26,065 285,426 899,722 493,134 213,024 351,029 2,433,955 Loans held for investment measured at fair value $ — $ 23,321 $ — $ — $ — $ — $ — $ 23,321 Ending balance $ 165,559 $ 49,391 $ 285,627 $ 899,722 $ 493,134 $ 214,189 $ 361,791 $ 2,469,413 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness or borrowing relationships that require more than the usual amount of management attention. Adverse industry conditions, deteriorating financial conditions, declining trends, management problems, documentation deficiencies, or other similar weaknesses may be evident. Ability to meet current payment schedules may be questionable, even though interest and principal are still being paid as agreed. The asset has potential weaknesses that may result in deteriorating repayment prospects if left uncorrected. Loans in this risk grade are not considered adversely classified. Substandard—Substandard loans are considered "classified" and are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loans in this category may be placed on non-accrual status and may individually be evaluated. Doubtful—Loans graded Doubtful are considered "classified" and have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. However, the amount of certainty of eventual loss is not known because of specific pending factors. Loans accounted for under the fair value option are not rated. The following table presents the amortized cost basis of loans by credit quality indicator, by class of financing receivable, and year of origination for term loans as of June 30, 2023. For revolving lines of credit that converted to term loans, if the conversion involved a credit decision, such loans are included in the origination year in which the credit decision was made. If revolving lines of credit converted to term loans without a credit decision, such lines of credit are included in the “Revolving lines of credit converted to term” column in the following table. Term Loans Amortized Cost by Origination Year June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Cash, Securities, and Other Pass $ 2,252 $ 12,232 $ 22,220 $ 5,712 $ 6,405 $ 13,269 $ 88,530 $ — $ 150,620 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total Cash, Securities, and Other $ 2,252 $ 12,232 $ 22,220 $ 5,712 $ 6,405 $ 13,269 $ 88,530 $ — $ 150,620 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer and Other Pass $ 102 $ 2,164 $ 676 $ 800 $ 1,075 $ 27 $ 16,918 $ — $ 21,762 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated (1) — 12,721 3,559 1,113 130 — — — 17,523 Total Consumer and Other $ 102 $ 14,885 $ 4,235 $ 1,913 $ 1,205 $ 27 $ 16,918 $ — $ 39,285 Current year-to-date gross write-offs $ — $ — $ — $ 3 $ 25 $ 2 $ — $ — $ 30 Construction and Development Pass $ 8,625 $ 231,454 $ 46,347 $ 19,620 $ — $ — $ 4,336 $ — $ 310,382 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total Construction and Development $ 8,625 $ 231,454 $ 46,347 $ 19,620 $ — $ — $ 4,336 $ — $ 310,382 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1-4 Family Residential Pass $ 29,331 $ 391,651 $ 154,576 $ 113,083 $ 38,392 $ 36,469 $ 117,098 $ — $ 880,600 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total 1-4 Family Residential $ 29,331 $ 391,651 $ 154,576 $ 113,083 $ 38,392 $ 36,469 $ 117,098 $ — $ 880,600 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost by Origination Year June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Non-Owner Occupied CRE Pass $ 31,476 $ 207,850 $ 130,026 $ 79,679 $ 24,756 $ 54,668 $ 24,758 $ — $ 553,213 Special mention — — — 5,063 — — — — 5,063 Substandard — — — — — — — — — Not rated — — — — — — — — — Total Non-Owner Occupied CRE $ 31,476 $ 207,850 $ 130,026 $ 84,742 $ 24,756 $ 54,668 $ 24,758 $ — $ 558,276 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Owner Occupied CRE Pass $ 4,513 $ 46,604 $ 58,368 $ 41,498 $ 5,702 $ 52,374 $ 7,961 $ — $ 217,020 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total Owner Occupied CRE $ 4,513 $ 46,604 $ 58,368 $ 41,498 $ 5,702 $ 52,374 $ 7,961 $ — $ 217,020 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Pass $ 14,149 $ 80,825 $ 45,913 $ 15,064 $ 6,971 $ 14,060 $ 149,459 $ — $ 326,441 Special mention — — — 2,928 — — — — 2,928 Substandard — 7,954 — — — 1,090 986 — 10,030 Not rated — — — — — — — — — Total Commercial and Industrial $ 14,149 $ 88,779 $ 45,913 $ 17,992 $ 6,971 $ 15,150 $ 150,445 $ — $ 339,399 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total $ 90,448 $ 993,455 $ 461,685 $ 284,560 $ 83,431 $ 171,957 $ 410,046 $ — $ 2,495,582 (1) Includes loans held for investment measured at fair value as of June 30, 2023. Includes fair value adjustments on loans held for investment accounted for under the fair value option. The following presents, by class and by credit quality indicator, the recorded investment in the Company’s loans as of the date noted (dollars in thousands): December 31, 2022 Pass Special Substandard Not Rated Total Cash, Securities, and Other $ 165,555 $ — $ 4 $ — $ 165,559 Consumer and Other (1) 26,070 — — 23,321 49,391 Construction and Development 285,426 — 201 — 285,627 1-4 Family Residential 899,722 — — — 899,722 Non-Owner Occupied CRE 493,134 — — — 493,134 Owner Occupied CRE 213,024 — 1,165 — 214,189 Commercial and Industrial 348,844 2,185 10,762 — 361,791 Total $ 2,431,775 $ 2,185 $ 12,132 $ 23,321 $ 2,469,413 (1) Includes loans held for investment measured at fair value as of December 31, 2022. Includes fair value adjustments on loans held for investment accounted for under the fair value option. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following presents changes in the carrying amount of goodwill as of the dates noted (dollars in thousands): June 30, December 31, Balance, beginning of year $ 30,400 $ 30,588 Acquisition activity — (188) Balance, end of period $ 30,400 $ 30,400 The Company initially recorded $6.4 million of goodwill as a result of the Teton Acquisition on December 31, 2021. In the first quarter of 2022, goodwill was adjusted by ($0.2) million as a result of the measurement period adjustments. Goodwill is tested annually for impairment on October 31 and reviewed quarterly for any potential triggering events. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Leases in which the Company is determined to be the lessee are primarily operating leases comprised of real estate property and office space for our corporate headquarters and profit centers with terms that extend to 2032. In accordance with ASC 842, operating leases are required to be recognized as a right-of-use asset with a corresponding lease liability. The Company elected to not include short-term leases with initial terms of twelve months or less on the Condensed Consolidated Balance Sheets. The following presents the classification of the right-of-use assets and corresponding liabilities within the Condensed Consolidated Balance Sheets, as of the dates noted (dollars in thousands). June 30, December 31, Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 9,033 $ 8,602 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 11,323 $ 11,163 The Company’s operating lease agreements typically include an option to renew the lease at the Company’s discretion. To the extent the Company is reasonably certain it will exercise the renewal option at the inception of the lease, the Company will include the extended term in the calculation of the right-of-use asset and lease liability. ASC 842 requires the use of the rate implicit in the lease when it is readily determinable. As this rate is typically not readily determinable, at the inception of the lease, the Company uses its collateralized incremental borrowing rate over a similar term. The amount of the right-of-use asset and lease liability are impacted by the discount rate used to calculate the present value of the minimum lease payments over the term of the lease. June 30, December 31, Weighted-Average Remaining Lease Term Operating leases 4.72 years 4.85 years Weighted-Average Discount Rate Operating leases 2.73 % 2.63 % The Company’s operating leases contain fixed and variable lease components and it has elected to account for all classes of underlying assets as a single lease component. Variable lease costs primarily represent common area maintenance and parking. The Company recognized lease costs in Occupancy and equipment expense in the accompanying Condensed Consolidated Statements of Income. The following presents the Company’s net lease costs during the periods presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Lease Costs Operating lease cost $ 775 $ 824 $ 1,519 $ 1,619 Variable lease cost 480 528 973 1,086 Lease costs, net $ 1,255 $ 1,352 $ 2,492 $ 2,705 The following presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Operating Leases 2023⁽¹⁾ $ 1,718 2024 3,425 2025 2,493 2026 1,170 2027 1,104 Thereafter 2,046 Total future minimum lease payments 11,956 Less: imputed interest (633) Present value of net future minimum lease payments $ 11,323 ______________________________________ (1) Amount represents the remaining six months of year. Leases in which the Company is determined to be the lessor are considered operating leases and consist of the partial lease of Company owned buildings. In accordance with ASC 842, these leases have been accounted for as operating leases. During the three months ended June 30, 2023 and 2022, the Company recognized $0.1 million of lease income The following presents a maturity analysis of the Company's lease payments to be received on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Undiscounted 2023⁽¹⁾ $ 200 2024 350 2025 143 2026 97 2027 43 Thereafter — Total undiscounted operating lease income $ 833 ______________________________________ (1) Amount represents the remaining six months of the year. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The following presents the Company’s interest-bearing deposits as of the dates noted (dollars in thousands): June 30, December 31, Money market deposit accounts $ 1,297,732 $ 1,336,092 Time deposits 376,147 224,090 Negotiable order of withdrawal accounts 168,537 234,778 Savings accounts 18,737 27,177 Total interest-bearing deposits $ 1,861,153 $ 1,822,137 Estimated aggregate time deposits of $250 or greater $ 97,351 $ 77,972 Overdraft balances classified as loans totaled $0.1 million and $0.2 million as of June 30, 2023 and December 31, 2022, respectively. The following presents the scheduled maturities of all time deposits for each of the next five years and total amounts thereafter (dollars in thousands): Year ending December 31, Time Deposits 2023 (1) $ 171,068 2024 159,574 2025 7,342 2026 900 2027 2,536 Thereafter 34,727 Total $ 376,147 ______________________________________ (1) Amount represents the remaining six months of year. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS The Bank has executed a blanket pledge and security agreement with the FHLB that requires certain loans and securities be pledged as collateral for any outstanding borrowings under the agreement. The collateral pledged as of June 30, 2023 and December 31, 2022 amounted to $1.32 billion and $1.26 billion, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow an additional $646.8 million as of June 30, 2023. Each advance is payable at its maturity date. On March 12, 2023 the Federal Reserve Board announced it would make additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of depositors made available through the creation of a new Bank Term Funding Program (“BTFP”). The BTFP is meant to be an additional resource of liquidity against high-quality securities, eliminating an institutions need to quickly sell those securities in times of stress. As of June 30, 2023, the Company has pledged a par value of $47.3 million in securities under the BTFP and borrowed $31.0 million with a maturity date of March 27, 2024. The rate for the borrowing is based on the one year overnight swap rate plus 10 basis points and is fixed over the term of the advance based on the date of the advance. The following presents the Company’s required maturities on FHLB and FRB borrowings due at a single maturity date as of the dates noted (dollars in thousands): Maturity Date Rate % June 30, December 31, July 1, 2023 (1) 5.23 $ 227,367 $ 131,498 May 5, 2023 0.76 — 10,000 August 1, 2023 5.30 50,000 — March 27, 2024 4.78 30,997 — Total $ 308,364 $ 141,498 ______________________________________ (1) The borrowing has a one day, automatic daily renewal maturity date, subject to FHLB discretion not to renew. To bolster the effectiveness of the SBA’s PPP, the Federal Reserve is supplying liquidity to participating financial institutions through term financing collateralized by PPP loans to small businesses. The Paycheck Protection Program Liquidity Facility ("PPPLF") extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value and bearing interest at 35 bps. The terms of the loans are directly tied to the underlying PPP loans, which were originated at 2 or 5 years. As of June 30, 2023 and December 31, 2022, the Company utilized $4.2 million and $5.4 million, respectively, under the PPPLF program which is included in the FHLB and Federal Reserve borrowings line of the Condensed Consolidated Balance Sheets. The Bank has borrowing capacity associated with two unsecured federal funds lines of credit up to $10.0 million and $19.0 million. As of June 30, 2023 and December 31, 2022, there were no amounts outstanding on any of the federal funds lines. On January 1, 2022, the Company redeemed the subordinated notes due December 31, 2026 in the amount of $6.6 million, which were redeemable on or after January 1, 2022. The redemption price was equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest up to, but excluding the date of redemption. The following presents the Company’s subordinated notes included in the Subordinated notes line of the Condensed Consolidated Balance Sheets as of the periods noted (dollars in thousands): Issuance Date Stated Rate Interest Paid Maturity Carrying Value Initial Debt Issuance Costs Remaining Net Balance (1) March 2020 5.125% per annum until 3/31/2025, then alternative rate plus 450 basis points until maturity Quarterly 3/31/2030 $ 8,000 $ 120 $ 7,958 November 2020 4.25% per annum until 12/1/2025, then SOFR plus 402 basis points until maturity Semi-annual (Quarterly beginning 12/01/25) 12/1/2030 10,000 162 9,893 August 2021 3.25% per annum until 9/1/2026, then SOFR plus 258 basis points until maturity Semi-annual (Quarterly beginning 09/01/26) 9/1/2031 15,000 242 14,823 December 2022 7.00% per annum until 12/15/2027, then SOFR plus 328 basis points until maturity Semi-annual (Quarterly beginning 12/15/27) 12/15/2032 20,000 506 19,549 ______________________________________ (1) Remaining net balance includes amortization of debt issuance costs. For the three months ended June 30, 2023 and 2022, the Company recorded $0.7 million and $0.3 million, respectively, of interest expense related to the collective subordinated notes. For the six months ended June 30, 2023 and 2022, the Company recorded $1.3 million and $0.7 million, respectively, of interest expense related to the collective subordinated notes. The subordinated notes are included in Tier 2 capital under current regulatory guidelines and interpretations, subject to limitations. The Company’s borrowing facilities include various financial and other covenants, including, but not limited to, a requirement that the Bank maintains regulatory capital that is deemed "well capitalized" by federal banking agencies. See Note 17 – Regulatory Capital Matters for additional information. As of June 30, 2023 and December 31, 2022, the Company was in compliance with the covenant requirements. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its clients. These financial instruments include commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Condensed Consolidated Balance Sheets. Commitments may expire without being utilized. The Company’s exposure to loan loss is represented by the contractual amount of these commitments, although material losses are not anticipated. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The following presents the Company’s financial instruments whose contract amounts represent credit risk, as of the dates noted (dollars in thousands): June 30, 2023 December 31, 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 155,475 $ 633,104 $ 211,285 $ 601,202 Standby letters of credit 13,656 14,189 8,571 16,737 Commitments to make loans to sell 29,207 — 13,553 — Commitments to make loans 15,592 9,348 20,895 81,663 Unused lines of credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Several of the commitments may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the client. Unused lines of credit under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing clients. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client’s obligation to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Substantially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The Company holds collateral supporting those commitments if deemed necessary. Commitments to make loans to sell are agreements to lend to a client which would then be sold to an investor in the secondary market for which the interest rate has been locked with the client, provided there is no violation of any condition within the contract with either party. Commitments to make loans to sell have fixed interest rates. Since commitments may expire without being extended, total commitment amounts may not necessarily represent cash requirements. Commitments to make loans are agreements to lend to a client, provided there is no violation of any condition within the contract. Commitments to make loans generally have fixed expiration dates or other termination clauses. Since commitments may expire without being extended, total commitment amounts may not necessarily represent cash requirements. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures To estimate the ACL on unfunded loan commitments, the Company determines the probability of funding based on historical utilization statistics for unfunded loan commitments. Loss rates are calculated using the same assumptions as the associated funding balance. Refer to Note 3 - Loans and the Allowance for Credit Losses for changes in the factors that influenced the current estimate of ACL and reasons for the changes. The following table presents the changes in the ACL on unfunded loan commitments: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Beginning balance $ 4,395 $ 419 Impact of adopting ASU 2016-13 — 3,481 (Release) provision for credit losses (366) 129 Ending balance $ 4,029 $ 4,029 Litigation, Claims and Settlements The Company is, from time to time, involved in various legal actions arising in the normal course of business. While the ultimate outcome of any such proceedings cannot be predicted with certainty, it is the opinion of management, based on advice from legal counsel, that no proceedings exist, either individually or in the aggregate, which, if determined adversely to the Company, would have a material effect on the Company’s condensed consolidated financial statements. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Common Stock The Company’s common stock has no par value and each holder of common stock is entitled to one vote for each share (though certain voting restrictions may exist on non-vested restricted stock) held. On January 6, 2022, the Company filed a Form S-3 Registration Statement with the SEC providing that the Company may offer and sell from time to time, separately or together, in multiple series or in one or more offering, any combination of common stock, preferred stock, debt securities, warrants, depository shares and units, up to a maximum aggregate offer price of $100 million. During the three and six months ended June 30, 2023, the Company did not issue any equity or debt securities under this registration statement. Restricted Stock Awards In 2017, the Company issued 105,264 shares of common stock ("Restricted Stock Awards") with a value of $3.0 million to the sole member of EMC Holdings, LLC ("EMC"), subject to forfeiture based on his continued employment with the Company. Half of the Restricted Stock Awards ($1.5 million or 52,632 shares) vested ratably over five years. These awards fully vested during the year ended December 31, 2022. The remaining $1.5 million, or 52,632 shares, were able to be earned based on performance of the mortgage division of the Company. The performance based awards fully vested during the year ended December 31, 2020. As of June 30, 2023, all restricted stock awards were fully vested and no unrecognized compensation expense remains. During the three and six months ended June 30, 2022, the Company recognized $0.1 million and $0.2 million, respectively, for the restricted stock awards and no shares of the restricted stock awards vested. Stock-Based Compensation Plans The 2008 Stock Incentive Plan ("the 2008 Plan") was frozen in connection with the adoption of First Western Financial, Inc. 2016 Omnibus Incentive Plan (“the 2016 Plan”) and no new awards may be granted under the 2008 Plan. Remaining shares not issued under the 2008 Plan poured into the 2016 Plan. As of June 30, 2023, there were a total of 255,276 shares available for issuance under the the 2016 Plan. If the Awards outstanding under the 2008 Plan or the 2016 Plan are forfeited, cancelled or terminated with no consideration paid to the Company, those amounts will increase the number of shares eligible to be granted under the 2016 Plan. Stock Options The Company did not grant any stock options during the six months ended June 30, 2023 and 2022. During the three and six months ended June 30, 2023 and 2022, the Company recognized no stock based compensation expense associated with stock options. As of June 30, 2023, the Company has no unrecognized stock-based compensation expense related to stock options. The following presents activity for nonqualified stock options during the six months ended June 30, 2023: Number Weighted Weighted Aggregate Outstanding as of December 31, 2022 184,165 $ 22.76 Exercised (5,760) 20.00 Forfeited or expired (8,180) 20.31 Outstanding as of June 30, 2023 170,225 23.04 1.7 (1) Options fully vested / exercisable as of June 30, 2023 170,225 23.04 1.7 (1) ______________________________________ (1) Nonqualified stock options outstanding at the end of the period and those fully vested/exercisable had immaterial aggregate intrinsic values. As of June 30, 2023, there were 170,225 options that were exercisable. Exercise prices are between $20.00 and $27.00 per share, and the options are exercisable for a period of ten years from the original grant date and expire on various dates between 2023 and 2026. Restricted Stock Units Pursuant to the 2016 Plan, the Company can grant associates and non-associate directors long-term cash and stock-based compensation. Historically, the Company has granted certain associates restricted stock units which are earned over time or based on various performance measures and convert to common stock upon vesting, which are summarized here and expanded further below. The following presents the activity for the Time Vesting Units, the Financial Performance Units, and the Market Performance Units during the six months ended June 30, 2023: Time Financial Market Outstanding as of December 31, 2022 285,995 235,512 — Granted 66,919 52,439 — Vested (60,672) — — Forfeited (18,337) (10,461) — Outstanding as of June 30, 2023 273,905 277,490 — During the three months ended June 30, 2023, the Company issued 37,507 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 14,913 shares, with a combined market value at the dates of settlement of $0.2 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. During the six months ended June 30, 2023, the Company issued 43,871 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 16,801 shares, with a combined market value at the dates of settlement of $0.3 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. During the three months ended June 30, 2022, the Company issued 53,461 net shares of common stock upon the settlement of Restricted Stock Units. The remaining 21,345 shares, with a combined market value at the dates of settlement of $0.7 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. During the six months ended June 30, 2022, the Company issued 61,686 shares net of common stock upon the settlement of Restricted Stock Units. The remaining 25,634 shares, with a combined market value at the dates of settlement of $0.8 million, were withheld to cover employee withholding taxes and were subsequently added back to the Company’s pool of shares available for issuance. Time Vesting Units Time Vesting Units are granted to full-time associates and board members at the date approved by the Company’s board of directors. The Company granted 66,919 Time Vesting Units with a five-year service period during the six months ended June 30, 2023 that vest in equal installments of 20% on the anniversary of the grant date, assuming continuous employment through the scheduled vesting dates. During the three months ended June 30, 2023 and 2022, the Company recognized compensation expense of $0.4 million for the Time Vesting Units. During the six months ended June 30, 2023 and 2022, the Company recognized compensation expense of $0.8 million and $0.9 million, respectively, for the Time Vesting Units. As of June 30, 2023, there was $5.1 million of unrecognized compensation expense related to the Time Vesting Units, which is expected to be recognized over a weighted-average period of 2.0 years. Financial Performance Units Financial Performance Units are granted to certain key associates and are earned based on the Company achieving various financial performance metrics. If the Company achieves the financial metrics, which include various thresholds from 0% up to 150%, then the Financial Performance Units will have a subsequent vesting period. The following presents the Company’s existing Financial Performance Units as of June 30, 2023 (dollars in thousands, except share amounts): Grant Period Threshold Accrual Maximum Issuable Unrecognized Compensation Weighted-Average (1) Financial Metric End Date Vesting Requirement End Date May 1, 2019 through April 30, 2020 150 % 67,730 $ 110 0.5 years December 31, 2021 December 31, 2023 May 1, 2020 through December 31, 2020, excluding November 18, 2020 150 72,687 329 1.5 years December 31, 2022 December 31, 2023 On November 18, 2020 114 23,943 249 1.4 years December 31, 2022 50% November 18, 2023 & 2025 May 3, 2021 through August 11, 2021 97 33,798 395 2.5 years December 31, 2023 December 31, 2025 May 2, 2022 through November 2, 2022, excluding August 4, 2022 (2) 0 — — 3.5 years December 31, 2024 December 31, 2026 On August 4, 2022 (3) 33 9,090 455 3.5 years December 31, 2024 December 31, 2026 On May 1, 2023 (2) 0 — — 4.5 years December 31, 2025 December 31, 2027 ______________________________________ (1) Represents the expected unrecognized stock-based compensation expense recognition period. (2) As the performance threshold is not expected to be met in future performance periods, there is no related unrecognized compensation as of June 30, 2023. (3) Performance threshold was not met for the year ended December 31, 2022. As of June 30, 2023, the threshold is not expected to be met for the year ended December 31, 2023. The 100% threshold is expected to be met for the year ended December 31, 2024. The following presents the Company’s Financial Performance Units activity during the periods presented (dollars in thousands, except share amounts): Units Granted Compensation Expense Recognized Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Grant Period 2023 2022 2023 2022 2023 2022 May 1, 2019 through April 30, 2020 — — $ 31 $ 29 $ 83 $ 90 May 1, 2020 through December 31, 2020, excluding November 18, 2020 — — 38 29 86 82 On November 18, 2020 — — 21 (2) 40 28 May 3, 2021 through August 11, 2021 — — (147) 58 (91) 139 May 2, 2022 through November 2022, excluding August 4, 2022 (1) 322 64,629 — 58 — 58 August 4, 2022 (2) — — (24) — 5 — On May 1, 2023 (1) 52,117 — — — — — (1) Performance threshold was not met as of the three and six months ended June 30, 2023, therefore, no compensation expense was recognized for the three and six months ended June 30, 2023. (2) Performance threshold was not met for the year ended December 31, 2022. As of June 30, 2023, the threshold is not expected to be met for the year ended December 31, 2023. The 100% threshold is expected to be met for the year ended December 31, 2024. Market Performance Units Market Performance Units were granted to certain key associates and are earned based on growth in the value of the Company’s common stock, and were dependent on the Company completing an initial public offering of stock during a defined period of time. On July 23, 2018, the Company completed its initial public offering and the Market Performance Units performance condition was met. Subsequent to the performance condition, there was also a market condition as a vesting requirement for the Market Performance Units. If the Company’s common stock was trading at or above certain prices, over a performance period which ended on June 30, 2020, the Market Performance Units would have been determined to be earned and vest following the completion of a subsequent service period, which ended on June 30, 2022. The Company’s common stock did not trade at or above the required prices over the performance period and as a result, no Market Performance Units were eligible to be earned. As of the end of the subsequent service period, or June 30, 2022, the Company had no remaining unrecognized compensation expense related to the Market Performance Units. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following presents the calculation of basic and diluted earnings per common share during the periods presented (dollars in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings per common share - Basic Numerator: Net income available for common shareholders $ 1,506 $ 4,482 $ 5,326 $ 10,006 Denominator: Basic weighted average shares 9,532,397 9,450,987 9,518,135 9,434,742 Earnings per common share - basic $ 0.16 $ 0.47 $ 0.56 $ 1.06 Earnings per common share - Diluted Numerator: Net income available for common shareholders $ 1,506 $ 4,482 $ 5,326 $ 10,006 Denominator: Basic weighted average shares 9,532,397 9,450,987 9,518,135 9,434,742 Diluted effect of common stock equivalents: Stock options — 52,870 8,012 55,005 Time Vesting Units 70,151 122,090 97,689 155,813 Financial Performance Units 83,853 91,720 85,782 92,524 Market Performance Units — — — 6,827 Total diluted effect of common stock equivalents 154,004 266,680 191,483 310,169 Diluted weighted average shares 9,686,401 9,717,667 9,709,618 9,744,911 Earnings per common share - diluted $ 0.16 $ 0.46 $ 0.55 $ 1.03 Diluted earnings per share was computed without consideration to potentially dilutive instruments as their inclusion would have been anti-dilutive. The following presents potentially dilutive securities excluded from the diluted earnings per share calculation during the periods presented. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock options 170,225 — 63,299 — Time Vesting Units 213,322 121,942 53,331 60,971 Financial Performance Units 9,090 — 2,273 — Total potentially dilutive securities 392,637 121,942 118,903 60,971 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESDuring the three and six months ended June 30, 2023, the Company recorded an income tax provision of $0.5 million and $1.9 million, respectively, reflecting an effective tax rate of 26.0%. During the three and six months ended June 30, 2022, the Company recorded an income tax provision of $1.5 million and $3.3 million, respectively, reflecting an effective tax rate of 25.0% and 24.7%, respectively. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The Bank extends credit to certain covered parties including Company directors, executive officers, and their affiliates. As of June 30, 2023 and December 31, 2022, there were no delinquent or non-performing loans to any executive officer or director of the Company. These covered parties, along with principal owners, management, immediate family of management or principal owners, a parent company and its subsidiaries, trusts for the benefit of employees, and other parties, may be considered related parties. The following presents a summary of related-party loan activity as of the dates noted (dollars in thousands): June 30, 2023 December 31, 2022 Balance, beginning of year $ 16,859 $ 12,833 Funded loans 5,690 15,079 Payments collected (3,513) (11,053) Balance, end of period $ 19,036 $ 16,859 Deposits from related parties held by the Bank as of June 30, 2023 and December 31, 2022 totaled $17.3 million and $36.9 million, respectively. The Company leases office space from an entity controlled by one of the Company’s board members. During each of the six months ended June 30, 2023 and 2022, the Company incurred $0.1 million of expenses related to these leases. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Recurring Fair Value Equity Securities : Fair value of equity securities represents the market value of mutual funds based on quoted market prices (Level 1) and the value of stock held in other companies, which is based on recent market transactions or quoted rates that are not actively traded (Level 2). Equity Warrants : Fair value of equity warrants of private companies are priced using a Black-Scholes option pricing model to estimate the asset fair value by using strike prices, option expiration dates, risk-free interest rates, and option volatility assumptions (Level 3). Guarantee Asset and Liability : The guarantee asset represents the fair value of the consideration received in exchange for the credit enhancement fee. The guarantee liability represents a financial guarantee to cover the second layer of any losses on loans sold to FHLB under the MPF 125 loan sales agreement. The guarantee liability value on day one is equivalent to the guarantee asset fair value, which is the consideration for the credit enhancement fee paid over the life of the loans. The liability is then carried at amortized cost. Significant inputs in the valuation analysis for the asset are Level 3, due to the nature of this asset and the lack of market quotes. The fair value of the guarantee asset is determined using a discounted cash flow model, for which significant unobservable inputs include assumed future prepayment rates ("CPR") and market discount rate (Level 3). An increase in prepayment rates or discount rate would generally reduce the estimated fair value of the guarantee asset. Derivatives: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Mortgage Related Derivatives : Mortgage related derivatives include our IRLC, FSC, and the forward commitments on our loans held for sale pipeline. The fair value estimate of our IRLC is based on valuation models using market data from secondary market loan sales and direct contacts with third party investors as of the measurement date and pull through assumptions (Level 3). The FSC fair value estimate reflects the potential pair off fee associated with mandatory trades and is estimated by using a market differential and pair off penalty assessed by the investor (Level 3). The fair value estimate of the forward commitments is based on market prices of similar securities to the underlying MBS (Level 2). Loans Held at Fair Value: The fair value of loans held for investment are typically determined based on discounted cash flow analysis using market-based interest rate spreads. Discounted cash flow analysis are adjusted, as appropriate, to reflect current market conditions and borrower specific credit risk. Due to the nature of the valuation inputs, loans held for investment are classified within Level 3 of the valuation hierarchy. Mortgage Loans Held for Sale : The fair value of mortgage loans held for sale is estimated based upon quotes from third party investors for similar assets resulting in a Level 2 classification. Loans Held for Sale: The fair value of loans held for sale is determined using actual quoted commitments from third party investors resulting in Level 1 classification. The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands): June 30, 2023 Quoted Significant Significant Reported Financial Assets Mortgage loans held for sale $ — $ 19,746 $ — $ 19,746 Loans held at fair value $ — $ — $ 17,523 $ 17,523 Forward commitments and FSC $ — $ 233 $ — $ 233 Equity securities $ 627 $ 122 $ — $ 749 Guarantee asset $ — $ — $ 166 $ 166 IRLC, net $ — $ — $ 453 $ 453 Equity warrants $ — $ — $ 825 $ 825 Swap derivative asset $ — $ 729 $ — $ 729 Financial Liabilities Swap derivative liabilities $ — $ 45 $ — $ 45 December 31, 2022 Quoted Significant Significant Reported Financial Assets Mortgage loans held for sale $ — $ 8,839 $ — $ 8,839 Loans held for sale $ 1,965 $ — $ — $ 1,965 Loans held at fair value $ — $ — $ 23,321 $ 23,321 Forward commitments and FSC $ — $ 46 $ — $ 46 Equity securities $ 627 $ 122 $ — $ 749 Guarantee asset $ — $ — $ 143 $ 143 IRLC, net $ — $ — $ 229 $ 229 Equity warrants $ — $ — $ 825 $ 825 There were no transfers between levels during the six months ended June 30, 2023 or year ended December 31, 2022. On April 1, 2022, the Company elected to transfer all securities classified as available-for-sale to held-to-maturity and are now carried at amortized cost. See Note 2 – Investment Securities for more information. As of June 30, 2023, equity securities, equity warrants, IRLC, and guarantee assets have been recorded at fair value within the Other assets line item in the Condensed Consolidated Balance Sheets. All changes are recorded in the Other line item in the Condensed Consolidated Statements of Income. Fair Value Option The Company has elected to account for certain purchased whole loans held for investment under the fair value option in order to align the accounting presentation with the Company’s viewpoint of the economics of the loans. Interest income on loans held for investment accounted for under the fair value option is recognized within Interest and dividend income in the accompanying Condensed Consolidated Statements of Income. Not electing fair value generally results in a larger discount being recorded on the date of the loan purchase. The discount is subsequently accreted into interest income over the underlying loan’s remaining term using the effective interest method. Additionally, management has elected the fair value option for mortgage loans originated and held for sale. As of December 31, 2022, the Company reclassified $2.0 million of loans held for investment to loans held for sale. The transfer occurred at the point in time the company decided to sell the loan and received a commitment from third party investors to purchase the loan. During the six months ended June 30, 2023, the Company reclassified $39.2 million of loans held for investment to loans held for sale and received a commitment from third party investors to purchase the loans. As of June 30, 2023, a total of $41.2 million reclassified loans held for sale had been sold. There were no loans accounted for under the fair value option that were 90 days or more past due and still accruing interest as of June 30, 2023 or December 31, 2022. As of June 30, 2023, there were 126 loans, totaling $0.2 million, accounted for under the fair value option that were on non-accrual. As of December 31, 2022, there were 145 loans totaling $0.1 million, accounted for under the fair value option that were on non-accrual. During the three and six months ended June 30, 2023, the Company recorded net charge-offs of $0.6 million and $1.0 million, respectively, on loans accounted for under the fair value option to Net gain/(loss) on loans accounted for under the fair value option on the condensed consolidated statements of income. During the three and six months ended June 30, 2022, the Company recorded no charge-offs on loans accounted for under the fair value option. The following provides more information about the fair value carrying amount and unpaid principal outstanding of loans accounted for under the fair value option as of the dates noted (dollars in thousands): June 30, 2023 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Mortgage loans held for sale $ 19,746 $ 19,529 $ 217 $ — $ — $ — $ — $ — $ — Loans held for investment 17,523 18,274 (751) 148 157 (9) 148 157 (9) $ 37,269 $ 37,803 $ (534) $ 148 $ 157 $ (9) $ 148 $ 157 $ (9) December 31, 2022 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Mortgage loans held for sale $ 8,839 $ 8,750 $ 89 $ — $ — $ — $ — $ — $ — Loans held for sale 1,965 1,984 (19) — — — — — — Loans held for investment 23,321 23,415 (94) 139 140 (1) 139 140 (1) $ 34,125 $ 34,149 $ (24) $ 139 $ 140 $ (1) $ 139 $ 140 $ (1) The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted (dollars in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Mortgage loans held for sale $ 60 $ (1,086) $ 128 $ (419) Loans held for sale — — (20) — Loans held for investment (507) 328 (657) 328 $ (447) $ (758) $ (549) $ (91) The following summarizes the activity pertaining to loans accounted for under the fair value option as of the dates noted (dollars in thousands): Three Months Ended Six Months Ended Mortgage loans held for sale 2023 2022 2023 2022 Balance at beginning of period $ 9,873 $ 33,663 $ 8,839 $ 30,620 Loans originated 97,117 279,412 151,189 470,494 Fair value changes 59 (1,086) 128 (419) Sales (87,303) (285,777) (140,403) (474,443) Settlements — (10) (7) (50) Balance at end of period $ 19,746 $ 26,202 $ 19,746 $ 26,202 Three Months Ended Six Months Ended Loans held for sale 2023 2022 2023 2022 Balance at beginning of period $ — $ — $ 1,965 $ — Loans transferred from held for investment — — 39,221 — Fair value changes — — (20) — Sales — — (40,761) — Settlements — — (405) — Balance at end of period $ — $ — $ — $ — Three Months Ended Six Months Ended Loans held for investment 2023 2022 2023 2022 Balance at beginning of period $ 20,807 $ 6,380 $ 23,321 $ — Loans acquired — 17,869 1,162 24,249 Fair value changes (507) 328 (657) 328 Net charge-offs (617) — (1,009) — Settlements (2,160) (3,100) (5,294) (3,100) Balance at end of period $ 17,523 $ 21,477 $ 17,523 $ 21,477 Nonrecurring Fair Value Other Real Estate Owned (“OREO”) : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. They are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than on an annual basis. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. OREO is evaluated annually for additional impairment and adjusted accordingly. Collateral Dependent Loans : The fair value of collateral dependent loans individually analyzed and not included in the pooled loan analysis under the ACL is generally based on recent appraisals and the value of any credit enhancements associated with the loan. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in Level 3 classifications of the inputs for determining fair value. Collateral dependent loans are evaluated monthly and adjusted accordingly if needed. Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. The following presents assets measured on a nonrecurring basis as of the dates noted (dollars in thousands): June 30, 2023 Quoted Significant Significant Reported Collateral dependent loans: Commercial and Industrial $ — $ — $ 6,744 $ 6,744 The sales comparison approach was utilized for estimating the fair value of non-recurring assets. There were no assets measured on a nonrecurring basis for the year ended December 31, 2022. During the year ended December 31, 2022, the Company recorded $0.4 million of OREO as a result of obtaining physical possession of a foreclosed property as partial consideration for amounts owed on a collateral dependent loan. The Company sold the property during the year ended December 31, 2022, resulting in an immaterial gain. As of June 30, 2023 and December 31, 2022, the Company did not own any OREO properties. As of June 30, 2023, total collateral dependent loans measured using fair value had carrying values of $8.9 million and were classified as Level 3. Collateral dependent loans accounted for $2.2 million of the allowance on individually analyzed loans as of June 30, 2023 and no specific reserves as of December 31, 2022. The Company recorded no charge offs from the allowance on individually analyzed loans during the six months ended June 30, 2023 or during the year ended December 31, 2022. During the three and six months ended June 30, 2023, the Company recorded an immaterial amount of charge offs. During the year ended December 31, 2022, the Company recorded $0.3 million of charge offs on loans held at amortized cost. Level 3 Analysis The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands): Three Months Ended June 30, 2023 Corporate Bonds Loans Held at Fair FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ — $ 20,807 $ — $ 235 $ 723 $ 825 Acquisitions — — — — 454 — Originations — — — 9 (692) — Gains/(losses) in net income, net — (507) — (78) (32) — Settlements — (2,777) — — — — Ending balance $ — $ 17,523 $ — $ 166 $ 453 $ 825 Three Months Ended June 30, 2022 Corporate Bonds Loans Held at Fair FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ 6,215 $ 6,380 $ — $ 206 $ 990 $ 402 Acquisitions — 17,869 — — 1,083 — Originations — — — — (2,063) — Gains/(losses) in net income, net — 328 — (32) 826 323 Transfer to held-to-maturity (6,215) — — — — — Settlements — (3,100) — — — — Ending balance $ — $ 21,477 $ — $ 174 $ 836 $ 725 Six Months Ended June 30, 2023 Corporate Bonds Loans Held at Fair FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ — $ 23,321 $ — $ 143 $ 229 $ 825 Acquisitions — 1,162 — — 1,340 — Originations — — — 14 (2,178) — Gains/(losses) in net income, net — (657) — 9 1,062 — Settlements — (6,303) — — — — Ending balance $ — $ 17,523 $ — $ 166 $ 453 $ 825 Six Months Ended June 30, 2022 Corporate Bonds Loans Held at Fair Value FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ 2,113 $ — $ (9) $ 237 $ 1,473 $ 160 Acquisitions 4,000 24,249 9 — 2,697 242 Originations — — — — (3,417) — Gains/(losses) in net income, net — 328 — (63) 83 323 Unrealized gains, net 102 — — — — — Transfer to held-to-maturity (6,215) — — — — — Settlements — (3,100) — — — — Ending balance $ — $ 21,477 $ — $ 174 $ 836 $ 725 The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2023 Fair Value Valuation Significant Range Recurring fair value Loans held for investment at fair value $ 17,523 Discounted cash flow Discount rate 8% to 9% (8%) Guarantee asset 166 Discounted cash flow Discount rate 5% (5%) 5% (5%) IRLC, net 453 Best execution model Pull through 54% to 100% (90%) Equity warrants 825 Black-Scholes option pricing model Volatility 32.7% to 88.9% (43.6%) 4.59% (4.59%) 0 to 3 years Nonrecurring fair value Collateral dependent loans: Commercial and Industrial 6,575 Credit enhancement - guarantee asset value Market rate adjustments 44% (27%) Commercial and Industrial 169 Sales comparison, Loss given default 35% to 61% (50)% Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022 Fair Value Valuation Significant Range Recurring fair value Loans held for investment at fair value $ 23,321 Discounted cash flow Discount rate 4% to 18% (8)% Guarantee asset 143 Discounted cash flow Discount rate 5% (5%) 4% (4%) IRLC, net 229 Best execution model Pull through 73% to 100% (91%) Equity warrants 825 Black-Scholes option pricing model Volatility 32.7% to 88.9% (34.8%) 4.04% to 4.14% (4.05%) 0 to 4 years Estimated Fair Value of Other Financial Instruments The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands): Carrying Fair Value Measurements Using: June 30, 2023 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 297,568 $ 297,568 $ — $ — Held-to-maturity securities, net of ACL 77,469 237 61,516 7,798 Loans, net (1) 2,456,015 — — 2,370,315 Accrued interest receivable 11,135 11,135 — — Liabilities: Deposits 2,375,394 1,999,248 — 392,455 Borrowings: FHLB borrowings – fixed rate 308,364 — 308,316 — Federal Reserve borrowings – fixed rate 4,236 4,236 — — Subordinated notes – fixed-to-floating rate 52,223 — — 55,794 Accrued interest payable 1,788 1,788 — — Carrying Fair Value Measurements Using: December 31, 2022 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 196,512 $ 196,512 $ — $ — Held-to-maturity securities 81,056 234 67,433 7,051 Loans, net (1) 2,428,909 — — 2,356,085 Accrued interest receivable 10,445 10,445 — — Liabilities: Deposits 2,405,229 2,181,139 — 228,868 Borrowings: FHLB borrowings – fixed rate 141,498 — 141,867 — Federal Reserve borrowings – fixed rate 5,388 5,388 — — Subordinated notes – fixed-to-floating rate 52,132 — — 60,384 Accrued interest payable 1,125 1,125 — — (1) Excludes loans accounted for under the fair value option of $17.5 million and $23.2 million as of June 30, 2023 and December 31, 2022, respectively, as these are carried at fair value. The fair value estimates presented and discussed above are based on pertinent information available to management as of the dates specified. The estimated fair value amounts are based on the exit price notion set forth by ASU 2016-01. Although management is not aware of any factors that would significantly affect the estimated fair values, such amounts have not been comprehensively revalued for purposes of these condensed consolidated financial statements since the balance sheet dates. Therefore, current estimates of fair value may differ significantly from the amounts presented herein. The methods and assumptions, not previously presented, used to estimate fair values are described as follows. Cash and Cash Equivalents and Restricted Cash : The carrying amounts of cash and cash equivalents and restricted cash approximate fair values as maturities are less than 90 days and balances are generally in accounts bearing current market interest rates. Held-to-maturity securities : The fair values for held-to-maturity investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities is not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Loans : The fair values for all fixed-rate and variable-rate performing loans were estimated using the income approach and by discounting the projected cash flows of such loans. Principal and interest cash flows were projected based on the contractual terms of the loans, including maturity, contractual amortization, and adjustments for prepayments and expected losses, where appropriate. A discount rate was developed based on the relative risk of the cash flows, considering the loan type, maturity, and a required return on capital. Accrued Interest Receivable and Payable : The carrying amounts of accrued interest approximate fair value due to their short-term nature. Deposits : The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amounts payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting dates. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Fixed Rate Borrowings : Borrowings with fixed rates are valued using inputs such as discounted cash flows and current interest rates for similar instruments. Fixed-to-Floating Rate Borrowings : Borrowings with fixed-to-floating rates are valued using inputs such as discounted cash flows and current interest rates for similar instruments and assume the Company will redeem the instrument prior to the first interest rate reset date. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES During the first quarter of 2023, the Company entered into interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash Flow Hedges: On March 21, 2023, the Company executed an interest rate swap with a notional amount that was designated as a cash flow hedge of certain Federal Home Loan Bank borrowings and brokered CDs. The swap hedges the benchmark index (SOFR) with a receive float/pay fixed swap for the period March 21, 2023 through April 1, 2026. The notional amount of the interest rate swap as of June 30, 2023 was $50.0 million. As of June 30, 2023, this hedge was determined to be effective, and the Company expects the hedge to remain effective during the remaining terms of the swap. Derivatives Not Designated as Hedges: During the six months ended June 30, 2023, the Company entered into interest rate swaps to offset interest rate exposure with its commercial and residential variable rate loan clients. Clients with variable rate loans may choose to enter into an interest rate swap to hedge the interest rate risk on the loan and effectively pay a fixed rate payment. The Company will simultaneously enter into an interest rate swap on the same underlying loan and notional amount to hedge risk on the fixed rate loan. The notional amount of interest rate swaps with its loan customers as of June 30, 2023 was $19.0 million. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes. The Company presents derivative position gross on the balance sheet. The following table reflects the fair value of derivatives recorded on the condensed consolidated balance sheets as of June 30, 2023 (dollars in thousands): As of June 30, 2023 Notional Amount Fair Value Included in other assets: Derivatives designated as hedges: Interest rate swaps - cash flow hedge $ 50,000 $ 684 Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans 18,991 45 Total included in other assets $ 729 Included in other liabilities: Derivatives designated as hedges: Interest rate swaps - cash flow hedge $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans 18,991 45 Total included in other liabilities $ 45 The effect of cash flow hedge accounting on accumulated other comprehensive income for the three and six months ended June 30, 2023 is as follows (dollars in thousands): Three Months Ended June 30, 2023 Unrealized Gain (Loss) Recorded in OCI on Derivative Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate contracts $ 787 $ — $ — Six Months Ended June 30, 2023 Unrealized Gain (Loss) Recorded in OCI on Derivative Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate contracts $ 519 $ — $ — For the three and six months ended June 30, 2023, the Company recorded $0.1 million and $0.2 million of interest income related to the swap to Other borrowed funds interest expense on the condensed consolidated statements of income. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s reportable segments consist of Wealth Management and Mortgage. The chief operating decision maker ("CODM") is the Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. The Wealth Management segment consists of operations relative to the Company’s fully integrated wealth management products and services. Services provided include deposit, loan, insurance, and trust and investment management advisory products and services. The Mortgage segment consists of operations relative to the Company’s residential mortgage service offerings. Mortgage products and services are financial in nature for which premiums are recognized net of expenses, upon the sale of mortgage loans to third parties. The following presents the financial information for each segment that is specifically identifiable or based on allocations using internal methods as of or during the periods presented (dollars in thousands): As of or for the three months ended June 30, 2023 Wealth Mortgage Consolidated Income Statement Total interest income $ 36,142 $ 230 $ 36,372 Total interest expense 17,937 — 17,937 Provision for credit losses 1,843 — 1,843 Net interest income, after provision for credit losses 16,362 230 16,592 Non-interest income 3,167 795 3,962 Total income before non-interest expense 19,529 1,025 20,554 Depreciation and amortization expense 580 9 589 All other non-interest expense 16,520 1,410 17,930 Income (loss) before income taxes $ 2,429 $ (394) $ 2,035 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,983,814 21,832 3,005,646 As of or for the three months ended June 30, 2022 Wealth Mortgage Consolidated Income Statement Total interest income $ 21,644 $ 229 $ 21,873 Total interest expense 1,493 — 1,493 Provision for credit losses 519 — 519 Net interest income, after provision for credit losses 19,632 229 19,861 Non-interest income 5,649 1,049 6,698 Total income before non-interest expense 25,281 1,278 26,559 Depreciation and amortization expense 523 11 534 All other non-interest expense 17,834 2,215 20,049 Income before income taxes $ 6,924 $ (948) $ 5,976 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,513,170 28,323 2,541,493 As of or for the six months ended June 30, 2023 Wealth Mortgage Consolidated Income Statement Total interest income $ 70,742 $ 342 $ 71,084 Total interest expense 33,076 — 33,076 Provision for credit losses 1,533 — 1,533 Net interest income, after provision for credit losses 36,133 342 36,475 Non-interest income 7,940 1,828 9,768 Total income before non-interest expense 44,073 2,170 46,243 Depreciation and amortization expense 1,166 17 1,183 All other non-interest expense 34,723 3,141 37,864 Income before income taxes $ 8,184 $ (988) $ 7,196 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,983,814 21,832 3,005,646 As of or for the six months ended June 30, 2022 Wealth Mortgage Consolidated Income Statement Total interest income $ 41,331 $ 419 $ 41,750 Total interest expense 2,874 — 2,874 Provision for loan losses 729 — 729 Net interest income, after provision for loan losses 37,728 419 38,147 Non-interest income 11,710 3,376 15,086 Total income before non-interest expense 49,438 3,795 53,233 Depreciation and amortization expense 1,070 24 1,094 All other non-interest expense 34,431 4,416 38,847 Income before income taxes $ 13,937 $ (645) $ 13,292 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,513,170 28,323 2,541,493 F |
LOW-INCOME HOUSING TAX CREDIT I
LOW-INCOME HOUSING TAX CREDIT INVESTMENT | 6 Months Ended |
Jun. 30, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
LOW-INCOME HOUSING TAX CREDIT INVESTMENTS | LOW-INCOME HOUSING TAX CREDIT INVESTMENTS On December 19, 2019, the Company invested in a low-income housing tax credit ("LIHTC") investment. As of June 30, 2023 and December 31, 2022, the balance of the LIHTC investment was $2.3 million and $2.4 million, respectively. These balances are reflected in the Other assets line item of the Condensed Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022, there were no unfunded commitments related to the LIHTC investment. On June 26, 2023, the Company entered into agreements related to two additional LIHTC investments for $3.0 million per investment. The investments had not yet funded as of June 30, 2023, and there were no related LIHTC investment balances as of June 30, 2023. The total unfunded commitment related to the LIHTC investments as of June 30, 2023 was $6.0 million. The Company uses the proportional amortization method to account for this investment. Amortization expense is included within the Income tax expense line item of the Condensed Consolidated Statements of Income. During the three months ended June 30, 2023 and 2022, the Company recognized amortization expense of $0.1 million. During the six months ended June 30, 2023 and 2022, the Company recognized amortization expense of $0.2 million. Additionally, during the three months ended June 30, 2023 and 2022, the Company recognized $0.1 million of tax credits and other benefits from the LIHTC investment. During the six months ended June 30, 2023 and 2022, the Company recognized $0.2 million of tax credits and other benefits. During the three and six months ended June 30, 2023 and 2022, the Company did not incur any impairment losses. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 6 Months Ended |
Jun. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS First Western and the Bank are subject to various regulatory capital adequacy requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s condensed consolidated financial statements. Under capital adequacy guidelines and, additionally for banks, the regulatory framework for prompt corrective action, First Western and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. First Western and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings, and other factors. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks ("Basel III rules") have been fully phased in. The net unrealized gain or loss on held-to-maturity securities included in AOCI and accumulated net gains or losses on cash flow hedges are not included in computing regulatory capital. During the year ended December 31, 2022, First Western made capital injections of $6.0 million into the Bank. Management believes as of June 30, 2023, First Western and the Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations for First Western and the Bank provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The standard ratios established by First Western and the Bank’s primary regulators to measure capital require First Western and the Bank to maintain minimum amounts and ratios, set forth in the following table. These ratios are common equity Tier 1 capital ("CET1"), Tier 1 capital and total capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). The actual capital ratios of First Western and the Bank, along with the applicable regulatory capital requirements as of June 30, 2023, were calculated in accordance with the requirements of Basel III. The final rules of Basel III also established a “capital conservation buffer” of 2.5% above new regulatory minimum capital ratios, which are fully effective following minimum ratios: (i) a CET1 ratio of 7.0%; (ii) a Tier 1 capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. Banks are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that can be utilized for such activities. As of June 30, 2023 and December 31, 2022, the most recent filings with the FDIC categorized First Western and the Bank as well capitalized under the regulatory guidelines. To be categorized as well capitalized, an institution must maintain minimum CET1 risk-based, Tier 1 risk-based, total risk-based, and Tier 1 leverage ratios as set forth in the following table. Management believes there are no conditions or events since June 30, 2023, that have changed the categorization of First Western and the Bank as well capitalized. Management believes First Western and the Bank met all capital adequacy requirements to which it was subject as of June 30, 2023 and December 31, 2022. The following presents the actual and required capital amounts and ratios as of dates noted (dollars in thousands): Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized June 30, 2023 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 242,040 10.34 % $ 140,484 6.0 % $ 187,312 8.0 % Consolidated 217,170 9.26 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 242,040 10.34 105,363 4.5 152,191 6.5 Consolidated 217,170 9.26 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 262,989 11.23 187,312 8.0 234,140 10.0 Consolidated 291,119 12.41 N/A N/A N/A N/A Tier 1 capital to average assets Bank 242,040 8.70 111,300 4.0 139,125 5.0 Consolidated 217,170 7.80 N/A N/A N/A N/A Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 234,738 10.29 % $ 136,928 6.0 % $ 182,571 8.0 % Consolidated 212,229 9.28 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 234,738 10.29 102,696 4.5 148,339 6.5 Consolidated 212,229 9.28 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 252,398 11.06 182,571 8.0 228,213 10.0 Consolidated 282,889 12.37 N/A N/A N/A N/A Tier 1 capital to average assets Bank 234,738 8.65 108,506 4.0 135,633 5.0 Consolidated 212,229 7.81 N/A N/A N/A N/A ______________________________________ (1) Does not include capital conservation buffer. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation : The condensed consolidated financial statements include the accounts of First Western Financial, Inc. ("FWFI"), incorporated in Colorado on July 18, 2002, and its direct and indirect wholly-owned subsidiaries listed below (collectively referred to as the "Company," "we," "us," or "our"). FWFI is a bank holding company with financial holding company status registered with the Board of Governors of the Federal Reserve System. FWFI wholly owns the following subsidiary: First Western Trust Bank (the "Bank"). The Bank wholly owns First Western Merger Corporation ("Merger Corp"), which is therefore indirectly wholly-owned by FWFI. RRI, LLC ("RRI"), which was wholly owned by the Bank, was dissolved on February 3, 2023. Ryder, Stilwell Inc. ("RSI"), which was wholly owned by FWFI, was dissolved on March 21, 2023. The Company provides a fully-integrated suite of wealth management services including: private banking, personal trust, investment management, mortgage loans, and institutional asset management services to individual and corporate clients principally in Colorado (metro Denver, Aspen, Boulder, Fort Collins, and Vail Valley), Arizona (Phoenix and Scottsdale), California (Century City), Montana (Bozeman), and Wyoming (Jackson, Pinedale, and Rock Springs). The Company’s revenues are generated from its full range of product offerings as noted above, but principally from net interest income (the interest income earned on the Bank’s assets net of funding costs), fee-based wealth advisory, investment management, asset management and personal trust services, and net gains earned on mortgage loans. The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The December 31, 2022 condensed consolidated balance sheet has been derived from the audited financial statements for the year ended December 31, 2022. In the opinion of management, all adjustments that were recurring in nature and considered necessary have been included for fair presentation of the Company’s financial position and results of operations. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of results that may be expected for the full year ending December 31, 2023. In preparing the condensed consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be significantly different from those estimates. The condensed consolidated financial statements and notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC. |
Consolidation | Consolidation : The Company’s policy is to consolidate all majority-owned subsidiaries in which it has a controlling financial interest and variable-interest entities where the Company is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. |
Business Combinations and Divestitures | Business Combinations and Divestitures: Business combinations are accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total consideration transferred in connection with the acquisition is allocated to the tangible and intangible assets acquired, liabilities assumed, and any non-controlling interest in the acquired entity based on fair values. Goodwill acquired in connection with business combinations represents the excess of consideration transferred over the net tangible and identifiable intangible assets acquired. Certain assumptions and estimates are used in evaluating the fair value of assets acquired and liabilities assumed. These estimates may be affected by factors such as changing market conditions or changes in government regulations. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the condensed consolidated financial statements and the disclosures provided, and actual results could differ. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change include: the determination of the allowance for credit losses, the evaluation of goodwill impairment, and the fair value of certain financial instruments. |
Concentration of Credit Risk | Concentration of Credit Risk : Most of the Company’s lending activity is to clients located in and around metro Denver, Aspen, Fort Collins, and Vail, Colorado; Phoenix and Scottsdale, Arizona; Bozeman, Montana; and Jackson, Wyoming. The Company does not believe it has significant concentrations in any one industry or customer. As of June 30, 2023 and December 31, 2022, 80.0% and 77.9%, respectively, of the Company’s loan portfolio was secured by real estate collateral. Declines in real estate values in the primary markets the Company operates in could negatively impact the Company. |
Derivatives | Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness of a hedge. These three types are as follows: • Fair Value Hedge: a hedge of the fair value of a recognized asset or liability or an unrecognized firm commitment. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. • Cash Flow Hedge: a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transactions affect earnings. • Stand-alone derivative: an instrument with no hedging designation. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as non-interest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement in the same line as the cash flows of the items being hedged. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives : Commitments to fund mortgage loans, interest rate lock commitments ("IRLC"), and forward sale commitments ("FSC"), to be sold in the secondary market for the future delivery of these loans are accounted for as free standing derivatives. The fair value of the IRLC is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. The Company sells mortgage loans to third party investors at the best execution available which includes best efforts, mandatory, and bulk bids. Loans committed under mandatory or bulk bid are considered FSC and qualify as financial derivatives. Fair values of these mortgage derivatives are estimated based on the change in the loan pricing from the date of the commitment to the period end date for any unsettled commitments. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. In order to manage the interest rate risk on our uncommitted IRLC and mortgage loans held for sale pipeline, the Company enters into mortgage derivative financial instruments called To Be Announced ("TBA"), which we refer to as forward commitments. TBA agreements are forward contracts to purchase mortgage backed securities ("MBS") that will be issued by a US Government Sponsored Enterprise. The Bank purchases or sells these derivatives to offset the changes in value of our mortgage loans held for sale and IRLC adjusted pipeline where we have exposure to interest rate volatility. Changes in the fair values of these derivatives are included in the Net gain on mortgage loans line of the Condensed Consolidated Statements of Income. |
Revenue Recognition | Revenue Recognition : In accordance with the Financial Accounting Standards Board ("FASB"), Revenue Contracts with Customers ("Topic 606"), trust and investment management fees are earned by providing trust and investment services to customers. The Company’s performance obligation under these contracts is satisfied over time as the services are provided. Fees are recognized monthly based on the average monthly value of the assets under management and the corresponding fee rate based on the terms of the contract. Receivables are recorded on the Condensed Consolidated Balance Sheets in the Accounts receivable line item. Income related to trust and investment management fees, bank fees, and risk management and insurance fees on the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 are considered in scope of Topic 606. |
Transition of LIBOR to an Alternative Reference Rate | Transition of LIBOR to an Alternative Reference Rate : In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), announced that after 2022 it will no longer persuade or compel banks to submit rates for the calculation of LIBOR. In response, the Federal Reserve Board and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee and on February 27, 2023 the Federal Reserve Board adopted a final rule establishing the Secured Overnight Financing Rate ("SOFR") as the replacement rate index for LIBOR. SOFR is based on a broad segment of the overnight Treasury repurchase market and is intended to be a measure of the cost of borrowing cash overnight collateralized by Treasury securities. On December 21, 2022, the FASB issued Accounting Standards Update (ASU) 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. On June 30, 2023, LIBOR ceased to be a representative index rate. ASU 2022-06 extends the period of time financial statement preparers can utilize the reference rate reform relief guidance through December 31, 2024. Certain of the Company’s assets and liabilities are indexed to LIBOR, with exposure extending beyond December 31, 2023. The Company is currently evaluating and planning for the replacement of the LIBOR benchmark interest rate, including the transition to SOFR as the replacement. In general, the transition away from LIBOR may result in increased market risk, credit risk, operational risk and business risk for the Company. The Company has developed a LIBOR transition plan, which addresses governance, risk management, legal, operational, systems, fallback language, and other aspects of planning. The company no longer originates LIBOR indexed loans and is wor king on transitioning existing LIBOR loans to SOFR. Consumer indexed loans are being managed in accordance with Interagency Guidance. Bank Term Funding Program: On March 12, 2023, in response to two large bank failures, the Federal Reserve Board announced it would make additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of depositors. The additional funding will be made available through the creation of a new Bank Term Funding Program (“BTFP”), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets valued at par as collateral. The BTFP is meant to be an additional resource of liquidity against high-quality securities, eliminating an institutions need to quickly sell those securities in times of stress. As of June 30, 2023, the Company has pledged a par value of $47.3 million in securities under the BTFP and borrowed $31.0 million with a maturity date of March 27, 2024. The rate for the borrowing is based on the one year overnight swap rate plus 10 basis points and is fixed over the term of the advanced based on the date of the advance. See Note 7 - Borrowings for details on the Company’s borrowings. |
Reclassifications | Reclassifications : Certain items in prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no impact on net income or total shareholders’ equity. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements, Not Yet Adopted | Recently adopted accounting pronouncements : The following reflects recent accounting pronouncements that were adopted by the Company since the end of the Company’s fiscal year ended December 31, 2022. On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) ("ASU 2016-13"). ASU 2016-13 replaces the incurred loss model with an expected loss model, which is referred to as the current expected credit loss ("CECL") model. The CECL model is applicable to the measurement of credit losses on the financial assets measured at amortized cost, including loan receivables, held-to-maturity debt securities, and reinsurance receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor. ASU 2016-13 was set to be effective for most public companies on January 1, 2020. However, at the October 16, 2019 FASB meeting, the FASB voted unanimously to delay the effective date of CECL adoption for smaller reporting companies ("SRCs") to January 1, 2023. Recently issued accounting pronouncements, not yet adopted : The following reflects pending pronouncements with an update to the expected impact since the end of the Company’s fiscal year ended December 31, 2022. On March 29, 2023 the FASB issued ASU 2023-02 Investments in Tax Structures which changes the accounting methodology to allow proportional amortization method to be expanded beyond investments in low income tax housing tax credits (“LIHTC”) structures. This guidance is effective January 1, 2024 and currently the Company does not have any investments that would be impacted but will evaluate as other investments are considered as early adoption is permitted. |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts | Allowance for credit losses - loans: The allowance for credit losses (“ACL”) is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The ACL excludes loans held for sale and loans accounted for under the fair value option. The Company elected to not measure an ACL for accrued interest receivables, as we write off applicable accrued interest receivable balances in a timely manner when a loan is placed on non-accrual status, in which any accrued but uncollected interest is reversed from current income. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Actual Company and regional peer historical credit loss experience provides the basis for the estimation of expected credit losses. The Company identified and grouped portfolio segments based on risk characteristics and underlying collateral. The call code for each financial asset type was assessed and, where appropriate, expanded for certain call codes into separate segments based on risk characteristics. ACL for pooled loans are estimated using a discounted cash flow (“DCF”) methodology using the amortized cost basis (excluding interest) for all loans modeled within a performing pool of loans. The DCF analysis pairs loan-level term information, for example, maturity date, payment amount, interest rate, with top-down pool assumptions such as default rates, prepayment speeds, to produce individual expected cash flows for every instrument in the segment. The results are then aggregated to produce segment level results and reserve requirements for each segment. The quantitative DCF model also incorporates forward-looking macroeconomic information over a reasonable and supportable period of two years. Subsequent to the two-year period, the Company reverts to its historical loss rate and historical prepayment and curtailment speeds on a straight-line basis over a one year reversion period. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pooled loan evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Qualitative adjustments to historical loss data are made based on management’s assessment of the risks that may lead to a future loan loss or differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, changes in environmental and economic conditions, or other relevant factors. Allowance for credit losses - held-to-maturity securities : Held-to maturity securities are carried at amortized cost when management has the positive intent and ability to hold them to maturity. The majority of our held-to-maturity investment portfolio consists of securities issues by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. With respect to these securities, we consider the risk of credit loss to be zero and, therefore, we have elected the practical expedient to not record an ACL for these securities. The Company's non-government backed securities include private label CMO and MBS and bank subordinated debt. Private label refers to private institutions such as brokerage firms, banks, and home builders, that also securitize mortgages. Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio into the follow major security types: Corporate bonds and Corporate CMO and MBS. Allowance for credit losses - off-balance sheet credit exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the Provision for credit losses and is recorded in Other liabilities. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The probability of funding is based on historical utilization statistics for unfunded loan commitments. The loss rates used are calculated using the same assumptions as the associated funded balance. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326); Troubled Debt Restructurings (“TDR”) and Vintage Disclosures. This ASU was effective for the Company on January 1, 2023. The amendments eliminate the TDR recognition and measurement guidance and instead require an entity to evaluate whether the modification represents a new loan or a continuation of an existing loan (consistent with accounting for other modifications). The amendments also enhance existing disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The Company adopted ASU 2022-02 on January 1, 2023. Refer to Note 3 - Loans and the Allowance for Credit Losses for additional information on the required disclosures. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of change in accounting principle | The following table illustrates the day one adoption impact of ASU 2016-13 (dollars in thousands): Balance at January 1, 2023 (before adjustment) Cumulative effect adjustment amount Balance January 1, 2023 (after adjustment) Assets Allowance for credit losses: loans $ (17,183) $ (3,470) $ (20,653) Allowance for credit losses: held-to-maturity securities — (71) (71) Deferred tax assets, net 6,914 1,703 8,617 Liabilities Allowance for credit losses on off-balance sheet exposures 419 3,481 3,900 Shareholders’ Equity Retained earnings, net of tax 51,887 (5,319) 46,568 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of held-to-maturity securities | The following presents the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands): June 30, 2023 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Allowance for Credit Losses (1) Investment securities held-to-maturity: U.S. Treasury debt $ 247 $ — $ (10) $ 237 $ — Corporate bonds 23,758 — (3,507) 20,251 (71) GNMA mortgage-backed securities – residential 36,921 — (3,278) 33,643 — FNMA mortgage-backed securities – residential 6,370 — (545) 5,825 — Government CMO and MBS - commercial 6,293 11 (412) 5,892 — Corporate CMO and MBS 3,951 — (248) 3,703 — Total securities held-to-maturity $ 77,540 $ 11 $ (8,000) $ 69,551 $ (71) (1) Refer to Note 1—Organization and Summary of Significant Accounting Policies for further information on our credit loss methodology. December 31, 2022 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Investment securities held-to-maturity: U.S. Treasury debt $ 243 $ — $ (9) $ 234 Corporate bonds 23,819 — (2,453) 21,366 GNMA mortgage-backed securities – residential 39,426 — (2,800) 36,626 FNMA mortgage-backed securities – residential 6,708 — (506) 6,202 Government CMO and MBS - commercial 6,786 13 (403) 6,396 Corporate CMO and MBS 4,074 — (180) 3,894 Total securities held-to-maturity $ 81,056 $ 13 $ (6,351) $ 74,718 |
Summary of the amortized cost and estimated fair value of held to maturity securities | June 30, 2023 Amortized Fair Due within one year $ — $ — Due between one year and five years 2,239 2,047 Due between five years and ten years 21,513 18,208 Due after ten years 253 233 Securities (CMO and MBS) 53,535 49,063 Total $ 77,540 $ 69,551 |
Allowance for credit losses for HTM securities | The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Corporate Bonds Corporate CMO Allowance for credit losses: Beginning balance $ 71 $ — Provision for credit losses — — Securities charged-off (recoveries) — — Total ending allowance balance $ 71 $ — Six Months Ended June 30, 2023 Corporate Bonds Corporate CMO Allowance for credit losses: Beginning balance $ — $ — Impact of ASU 2016-13 adoption (1) 71 — Provision for credit losses — — Securities charged-off (recoveries) — — Total ending allowance balance $ 71 $ — (1) Refer to Note 1—Organization and Summary of Significant Accounting Policies for further information on our credit loss methodology. |
Schedule of the amortized cost and fair value of securities held to maturity, with gross unrecognized gains and losses | The following presents securities with unrecognized losses aggregated by major security type and length of time in a continuous unrecognized loss position as of the date noted (dollars in thousands, before tax): Less than 12 Months 12 Months or Longer Total June 30, 2023 Fair Unrecognized Fair Unrecognized Fair Unrecognized Investment securities held-to-maturity: U.S. Treasury debt $ — $ — $ 237 $ (10) $ 237 $ (10) Corporate bonds — — 20,251 (3,507) 20,251 (3,507) GNMA mortgage-backed securities – residential 6,267 (393) 27,377 (2,885) 33,644 (3,278) FNMA mortgage-backed securities – residential — — 5,825 (545) 5,825 (545) Government CMO and MBS - commercial 52 * 5,241 (412) 5,293 (412) Corporate CMO and MBS 2,689 (162) 990 (86) 3,679 (248) Total $ 9,008 $ (555) $ 59,921 $ (7,445) $ 68,929 $ (8,000) (*) Immaterial Less than 12 Months 12 Months or Longer Total December 31, 2022 Fair Unrecognized Fair Unrecognized Fair Unrecognized Investment securities held-to-maturity: U.S. Treasury debt $ — $ — $ 234 $ (9) $ 234 $ (9) Corporate bonds 20,911 (2,436) 455 (17) 21,366 (2,453) GNMA mortgage-backed securities – residential 22,371 (1,051) 14,255 (1,749) 36,626 (2,800) FNMA mortgage-backed securities - residential 6,202 (506) — — 6,202 (506) Government CMO and MBS - commercial 5,591 (403) — — 5,591 (403) Corporate CMO and MBS 3,499 (147) 395 (33) 3,894 (180) Total $ 58,574 $ (4,543) $ 15,339 $ (1,808) $ 73,913 $ (6,351) |
LOANS AND THE ALLOWANCE FOR C_2
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Summary of the Company's loans | The following presents a summary of the Company’s loans at amortized cost as of the dates noted (dollars in thousands): June 30, December 31, Cash, Securities, and Other $ 150,620 $ 165,559 Consumer and Other 21,762 26,070 Construction and Development 310,382 285,627 1-4 Family Residential 880,600 899,722 Non-Owner Occupied CRE 558,276 493,134 Owner Occupied CRE 217,020 214,189 Commercial and Industrial 339,399 361,791 Total 2,478,059 2,446,092 Allowance for credit losses (22,044) (17,183) Total, net $ 2,456,015 $ 2,428,909 Loans accounted for under the fair value option (1) 17,523 23,321 Loans, net $ 2,473,538 $ 2,452,230 ______________________________________ (1) Includes $18.3 million and $23.4 million of unpaid principal balance of loans held for investment measured at fair value as of June 30, 2023 and December 31, 2022, respectively. Includes fair value adjustments on loans held for investment accounted for under the fair value option. See Note 13 – Fair Value. |
Summary of aging analysis of the recorded investments in loans past due | The following presents, by class, an aging analysis of the amortized cost basis in loans past due as of the date noted (dollars in thousands): June 30, 2023 30-59 60-89 90 or Total Current Total Loans Accounted for Under the Fair Value Option (1) Total Loans Cash, Securities, and Other $ 1,704 $ — $ — $ 1,704 $ 148,916 $ 150,620 $ — $ 150,620 Consumer and Other 9 1,016 6 1,031 20,731 21,762 17,523 39,285 Construction and Development — — — — 310,382 310,382 — 310,382 1-4 Family Residential 651 — — 651 879,949 880,600 — 880,600 Non-Owner Occupied CRE — — — — 558,276 558,276 — 558,276 Owner Occupied CRE 3,950 — — 3,950 213,070 217,020 — 217,020 Commercial and Industrial 7,012 11,014 10,030 28,056 311,343 339,399 — 339,399 Total $ 13,326 $ 12,030 $ 10,036 $ 35,392 $ 2,442,667 $ 2,478,059 $ 17,523 $ 2,495,582 December 31, 2022 30-59 60-89 90 or Total Current Total Amortized Cost Loans Accounted for Under the Fair Value Option (1) Total Loans Cash, Securities, and Other $ 1,735 $ 539 $ 4 $ 2,278 $ 163,281 $ 165,559 $ — $ 165,559 Consumer and Other 657 5 5 667 25,403 26,070 23,321 49,391 Construction and Development — — 201 201 285,426 285,627 — 285,627 1-4 Family Residential 1,752 — 5 1,757 897,965 899,722 — 899,722 Non-Owner Occupied CRE 1,071 — — 1,071 492,063 493,134 — 493,134 Owner Occupied CRE 1,165 — — 1,165 213,024 214,189 — 214,189 Commercial and Industrial 4,858 10,648 1,319 16,825 344,966 361,791 — 361,791 Total $ 11,238 $ 11,192 $ 1,534 $ 23,964 $ 2,422,128 $ 2,446,092 $ 23,321 $ 2,469,413 (1) Refer to Note 13 - Fair Value for additional information on the measurement of loans accounted for under the fair value option. |
Schedule of recorded investment in non accrual loans by class | The following presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing by class as of the date noted (dollars in thousands). As of June 30, 2023 Non-accrual loans with Total non-accrual loans Loans past due over 89 days still accruing Cash, Securities, and Other $ — $ — $ — Consumer and Other 6 6 — Construction and Development — — — 1-4 Family Residential — — — Owner Occupied CRE — — — Commercial and Industrial (1) 2,076 10,030 — Total $ 2,082 $ 10,036 $ — (1) The Company recorded an allowance of $2.2 million on three individually analyzed loans totaling $8.9 million as of June 30, 2023. The following presents the recorded investment in non-accrual loans by class as of the date noted (dollars in thousands): As of December 31, 2022 Non-accrual loans with Total non-accrual loans Loans past due over 89 days still accruing Cash, Securities, and Other $ 4 $ 4 $ — Consumer and Other 5 5 — Construction and Development 201 201 — 1-4 Family Residential — — — Owner Occupied CRE 1,165 1,165 — Commercial and Industrial 10,762 10,762 25 Total (1) $ 12,137 $ 12,137 $ 25 (1) The Company did not record a specific reserve on any individually analyzed loans as of December 31, 2022. As of June 30, 2023 Collateral Dependent Loans Secured by Real Estate Secured by Cash and Secured by Other Total Cash, Securities, and Other $ — $ — $ — $ — Consumer and Other — — — — Construction and Development — — — — 1-4 Family Residential — — — — Non-Owner Occupied CRE — — — — Owner Occupied CRE — — — — Commercial and Industrial — — 10,030 10,030 Total $ — $ — $ 10,030 $ 10,030 |
Schedule of activity in the Company's allowance for loan losses by portfolio class | The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2023 (dollars in thousands): Cash, Consumer Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for credit losses for the three months ended June 30, 2023 Beginning balance $ 1,451 $ 196 $ 6,229 $ 3,821 $ 2,709 $ 1,272 $ 4,165 $ 19,843 Provision for credit losses (140) (50) 1,267 (242) (214) (90) 1,678 2,209 Charge-offs — (13) — — — — — (13) Recoveries — 4 — — — — 1 5 Ending balance $ 1,311 $ 137 $ 7,496 $ 3,579 $ 2,495 $ 1,182 $ 5,844 $ 22,044 Changes in allowance for credit losses for the six months ended June 30, 2023 Beginning balance, prior to the adoption of ASU 2016-13 $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Impact of adopting ASU 2016-13 193 106 4,681 — (2,808) (689) (104) 2,091 3,470 Provision for credit losses (80) (145) 790 78 (306) (224) 1,291 1,404 Charge-offs — (30) — — — — — (30) Recoveries — 15 — — — — 2 17 Ending balance $ 1,311 $ 137 $ 7,496 $ 3,579 $ 2,495 $ 1,182 $ 5,844 $ 22,044 Allowance for credit losses as of June 30, 2023 allocated to loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ 2,195 $ 2,195 Collectively 1,311 137 7,496 3,579 2,495 1,182 3,649 19,849 Ending balance $ 1,311 $ 137 $ 7,496 $ 3,579 $ 2,495 $ 1,182 $ 5,844 $ 22,044 Loans as of June 30, 2023: Individually evaluated $ — $ — $ — $ — $ — $ — $ 10,030 $ 10,030 Collectively evaluated 150,620 21,762 310,382 880,600 558,276 217,020 329,369 2,468,029 Loans held for investment measured at fair value — 17,523 — — — — — 17,523 Ending balance $ 150,620 $ 39,285 $ 310,382 $ 880,600 $ 558,276 $ 217,020 $ 339,399 $ 2,495,582 Cash, Consumer Construction 1-4 Non-Owner Owner Commercial Total Changes in allowance for loan losses for the three months ended June 30, 2022 Beginning balance $ 1,440 $ 283 $ 954 $ 3,789 $ 2,867 $ 1,328 $ 3,224 $ 13,885 Provision for loan losses (246) (16) 120 1,056 368 149 (912) 519 Charge-offs — (95) — — — — — (95) Recoveries — 48 — — — — — 48 Ending balance $ 1,194 $ 220 $ 1,074 $ 4,845 $ 3,235 $ 1,477 $ 2,312 $ 14,357 Changes in allowance for loan losses for the six months ended June 30, 2022 Beginning balance $ 1,598 $ 266 $ 1,092 $ 3,553 $ 2,952 $ 1,292 $ 2,979 $ 13,732 Provision for loan losses (404) 58 (18) 1,292 283 185 (667) 729 Charge-offs — (192) — — — — — (192) Recoveries — 88 — — — — — 88 Ending balance $ 1,194 $ 220 $ 1,074 $ 4,845 $ 3,235 $ 1,477 $ 2,312 $ 14,357 Allowance for loan losses as of December 31, 2022 allocated to loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,198 191 2,025 6,309 3,490 1,510 2,460 17,183 Ending balance $ 1,198 $ 191 $ 2,025 $ 6,309 $ 3,490 $ 1,510 $ 2,460 $ 17,183 Loans as of December 31, 2022: Individually evaluated $ 4 $ 5 $ 201 $ — $ — $ 1,165 $ 10,762 $ 12,137 Collectively evaluated 165,555 26,065 285,426 899,722 493,134 213,024 351,029 2,433,955 Loans held for investment measured at fair value $ — $ 23,321 $ — $ — $ — $ — $ — $ 23,321 Ending balance $ 165,559 $ 49,391 $ 285,627 $ 899,722 $ 493,134 $ 214,189 $ 361,791 $ 2,469,413 |
Summary of recorded investment in the Company's loans by class and by credit quality indicator | The following table presents the amortized cost basis of loans by credit quality indicator, by class of financing receivable, and year of origination for term loans as of June 30, 2023. For revolving lines of credit that converted to term loans, if the conversion involved a credit decision, such loans are included in the origination year in which the credit decision was made. If revolving lines of credit converted to term loans without a credit decision, such lines of credit are included in the “Revolving lines of credit converted to term” column in the following table. Term Loans Amortized Cost by Origination Year June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Cash, Securities, and Other Pass $ 2,252 $ 12,232 $ 22,220 $ 5,712 $ 6,405 $ 13,269 $ 88,530 $ — $ 150,620 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total Cash, Securities, and Other $ 2,252 $ 12,232 $ 22,220 $ 5,712 $ 6,405 $ 13,269 $ 88,530 $ — $ 150,620 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer and Other Pass $ 102 $ 2,164 $ 676 $ 800 $ 1,075 $ 27 $ 16,918 $ — $ 21,762 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated (1) — 12,721 3,559 1,113 130 — — — 17,523 Total Consumer and Other $ 102 $ 14,885 $ 4,235 $ 1,913 $ 1,205 $ 27 $ 16,918 $ — $ 39,285 Current year-to-date gross write-offs $ — $ — $ — $ 3 $ 25 $ 2 $ — $ — $ 30 Construction and Development Pass $ 8,625 $ 231,454 $ 46,347 $ 19,620 $ — $ — $ 4,336 $ — $ 310,382 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total Construction and Development $ 8,625 $ 231,454 $ 46,347 $ 19,620 $ — $ — $ 4,336 $ — $ 310,382 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1-4 Family Residential Pass $ 29,331 $ 391,651 $ 154,576 $ 113,083 $ 38,392 $ 36,469 $ 117,098 $ — $ 880,600 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total 1-4 Family Residential $ 29,331 $ 391,651 $ 154,576 $ 113,083 $ 38,392 $ 36,469 $ 117,098 $ — $ 880,600 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost by Origination Year June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Non-Owner Occupied CRE Pass $ 31,476 $ 207,850 $ 130,026 $ 79,679 $ 24,756 $ 54,668 $ 24,758 $ — $ 553,213 Special mention — — — 5,063 — — — — 5,063 Substandard — — — — — — — — — Not rated — — — — — — — — — Total Non-Owner Occupied CRE $ 31,476 $ 207,850 $ 130,026 $ 84,742 $ 24,756 $ 54,668 $ 24,758 $ — $ 558,276 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Owner Occupied CRE Pass $ 4,513 $ 46,604 $ 58,368 $ 41,498 $ 5,702 $ 52,374 $ 7,961 $ — $ 217,020 Special mention — — — — — — — — — Substandard — — — — — — — — — Not rated — — — — — — — — — Total Owner Occupied CRE $ 4,513 $ 46,604 $ 58,368 $ 41,498 $ 5,702 $ 52,374 $ 7,961 $ — $ 217,020 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Pass $ 14,149 $ 80,825 $ 45,913 $ 15,064 $ 6,971 $ 14,060 $ 149,459 $ — $ 326,441 Special mention — — — 2,928 — — — — 2,928 Substandard — 7,954 — — — 1,090 986 — 10,030 Not rated — — — — — — — — — Total Commercial and Industrial $ 14,149 $ 88,779 $ 45,913 $ 17,992 $ 6,971 $ 15,150 $ 150,445 $ — $ 339,399 Current year-to-date gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total $ 90,448 $ 993,455 $ 461,685 $ 284,560 $ 83,431 $ 171,957 $ 410,046 $ — $ 2,495,582 (1) Includes loans held for investment measured at fair value as of June 30, 2023. Includes fair value adjustments on loans held for investment accounted for under the fair value option. The following presents, by class and by credit quality indicator, the recorded investment in the Company’s loans as of the date noted (dollars in thousands): December 31, 2022 Pass Special Substandard Not Rated Total Cash, Securities, and Other $ 165,555 $ — $ 4 $ — $ 165,559 Consumer and Other (1) 26,070 — — 23,321 49,391 Construction and Development 285,426 — 201 — 285,627 1-4 Family Residential 899,722 — — — 899,722 Non-Owner Occupied CRE 493,134 — — — 493,134 Owner Occupied CRE 213,024 — 1,165 — 214,189 Commercial and Industrial 348,844 2,185 10,762 — 361,791 Total $ 2,431,775 $ 2,185 $ 12,132 $ 23,321 $ 2,469,413 (1) Includes loans held for investment measured at fair value as of December 31, 2022. Includes fair value adjustments on loans held for investment accounted for under the fair value option. |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill | The following presents changes in the carrying amount of goodwill as of the dates noted (dollars in thousands): June 30, December 31, Balance, beginning of year $ 30,400 $ 30,588 Acquisition activity — (188) Balance, end of period $ 30,400 $ 30,400 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease balance sheet location | The Company elected to not include short-term leases with initial terms of twelve months or less on the Condensed Consolidated Balance Sheets. The following presents the classification of the right-of-use assets and corresponding liabilities within the Condensed Consolidated Balance Sheets, as of the dates noted (dollars in thousands). June 30, December 31, Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 9,033 $ 8,602 Lease Liabilities Classification Operating lease liabilities Other liabilities $ 11,323 $ 11,163 |
Schedule of weighted average lease term and discount rate | June 30, December 31, Weighted-Average Remaining Lease Term Operating leases 4.72 years 4.85 years Weighted-Average Discount Rate Operating leases 2.73 % 2.63 % |
Lease costs | The following presents the Company’s net lease costs during the periods presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Lease Costs Operating lease cost $ 775 $ 824 $ 1,519 $ 1,619 Variable lease cost 480 528 973 1,086 Lease costs, net $ 1,255 $ 1,352 $ 2,492 $ 2,705 |
Schedule of minimum lease payments due | The following presents a maturity analysis of the Company’s operating lease liabilities on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Operating Leases 2023⁽¹⁾ $ 1,718 2024 3,425 2025 2,493 2026 1,170 2027 1,104 Thereafter 2,046 Total future minimum lease payments 11,956 Less: imputed interest (633) Present value of net future minimum lease payments $ 11,323 ______________________________________ (1) Amount represents the remaining six months of year. |
Summary of maturity analysis of the Company's operating payments to be received | The following presents a maturity analysis of the Company's lease payments to be received on an annual basis for each of the next five years and total amounts thereafter (dollars in thousands): Year Ending December 31, Undiscounted 2023⁽¹⁾ $ 200 2024 350 2025 143 2026 97 2027 43 Thereafter — Total undiscounted operating lease income $ 833 ______________________________________ (1) Amount represents the remaining six months of the year. |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Schedule of interest bearing deposits | The following presents the Company’s interest-bearing deposits as of the dates noted (dollars in thousands): June 30, December 31, Money market deposit accounts $ 1,297,732 $ 1,336,092 Time deposits 376,147 224,090 Negotiable order of withdrawal accounts 168,537 234,778 Savings accounts 18,737 27,177 Total interest-bearing deposits $ 1,861,153 $ 1,822,137 Estimated aggregate time deposits of $250 or greater $ 97,351 $ 77,972 |
Schedule of time deposit maturities | The following presents the scheduled maturities of all time deposits for each of the next five years and total amounts thereafter (dollars in thousands): Year ending December 31, Time Deposits 2023 (1) $ 171,068 2024 159,574 2025 7,342 2026 900 2027 2,536 Thereafter 34,727 Total $ 376,147 ______________________________________ (1) Amount represents the remaining six months of year. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings from FHLB Topeka | The following presents the Company’s required maturities on FHLB and FRB borrowings due at a single maturity date as of the dates noted (dollars in thousands): Maturity Date Rate % June 30, December 31, July 1, 2023 (1) 5.23 $ 227,367 $ 131,498 May 5, 2023 0.76 — 10,000 August 1, 2023 5.30 50,000 — March 27, 2024 4.78 30,997 — Total $ 308,364 $ 141,498 ______________________________________ (1) The borrowing has a one day, automatic daily renewal maturity date, subject to FHLB discretion not to renew. |
Schedule of debt | The following presents the Company’s subordinated notes included in the Subordinated notes line of the Condensed Consolidated Balance Sheets as of the periods noted (dollars in thousands): Issuance Date Stated Rate Interest Paid Maturity Carrying Value Initial Debt Issuance Costs Remaining Net Balance (1) March 2020 5.125% per annum until 3/31/2025, then alternative rate plus 450 basis points until maturity Quarterly 3/31/2030 $ 8,000 $ 120 $ 7,958 November 2020 4.25% per annum until 12/1/2025, then SOFR plus 402 basis points until maturity Semi-annual (Quarterly beginning 12/01/25) 12/1/2030 10,000 162 9,893 August 2021 3.25% per annum until 9/1/2026, then SOFR plus 258 basis points until maturity Semi-annual (Quarterly beginning 09/01/26) 9/1/2031 15,000 242 14,823 December 2022 7.00% per annum until 12/15/2027, then SOFR plus 328 basis points until maturity Semi-annual (Quarterly beginning 12/15/27) 12/15/2032 20,000 506 19,549 ______________________________________ (1) Remaining net balance includes amortization of debt issuance costs. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of contract amounts represent credit risk | The following presents the Company’s financial instruments whose contract amounts represent credit risk, as of the dates noted (dollars in thousands): June 30, 2023 December 31, 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Unused lines of credit $ 155,475 $ 633,104 $ 211,285 $ 601,202 Standby letters of credit 13,656 14,189 8,571 16,737 Commitments to make loans to sell 29,207 — 13,553 — Commitments to make loans 15,592 9,348 20,895 81,663 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Beginning balance $ 4,395 $ 419 Impact of adopting ASU 2016-13 — 3,481 (Release) provision for credit losses (366) 129 Ending balance $ 4,029 $ 4,029 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of summarizes activity for nonqualified stock options | The following presents activity for nonqualified stock options during the six months ended June 30, 2023: Number Weighted Weighted Aggregate Outstanding as of December 31, 2022 184,165 $ 22.76 Exercised (5,760) 20.00 Forfeited or expired (8,180) 20.31 Outstanding as of June 30, 2023 170,225 23.04 1.7 (1) Options fully vested / exercisable as of June 30, 2023 170,225 23.04 1.7 (1) ______________________________________ (1) Nonqualified stock options outstanding at the end of the period and those fully vested/exercisable had immaterial aggregate intrinsic values. |
Schedule of summarizes the activity for the Time Vesting Units, the Financial Performance Units and the Market Performance Units | The following presents the activity for the Time Vesting Units, the Financial Performance Units, and the Market Performance Units during the six months ended June 30, 2023: Time Financial Market Outstanding as of December 31, 2022 285,995 235,512 — Granted 66,919 52,439 — Vested (60,672) — — Forfeited (18,337) (10,461) — Outstanding as of June 30, 2023 273,905 277,490 — |
Schedule of financial Performance Units activity | The following presents the Company’s existing Financial Performance Units as of June 30, 2023 (dollars in thousands, except share amounts): Grant Period Threshold Accrual Maximum Issuable Unrecognized Compensation Weighted-Average (1) Financial Metric End Date Vesting Requirement End Date May 1, 2019 through April 30, 2020 150 % 67,730 $ 110 0.5 years December 31, 2021 December 31, 2023 May 1, 2020 through December 31, 2020, excluding November 18, 2020 150 72,687 329 1.5 years December 31, 2022 December 31, 2023 On November 18, 2020 114 23,943 249 1.4 years December 31, 2022 50% November 18, 2023 & 2025 May 3, 2021 through August 11, 2021 97 33,798 395 2.5 years December 31, 2023 December 31, 2025 May 2, 2022 through November 2, 2022, excluding August 4, 2022 (2) 0 — — 3.5 years December 31, 2024 December 31, 2026 On August 4, 2022 (3) 33 9,090 455 3.5 years December 31, 2024 December 31, 2026 On May 1, 2023 (2) 0 — — 4.5 years December 31, 2025 December 31, 2027 ______________________________________ (1) Represents the expected unrecognized stock-based compensation expense recognition period. (2) As the performance threshold is not expected to be met in future performance periods, there is no related unrecognized compensation as of June 30, 2023. (3) Performance threshold was not met for the year ended December 31, 2022. As of June 30, 2023, the threshold is not expected to be met for the year ended December 31, 2023. The 100% threshold is expected to be met for the year ended December 31, 2024. The following presents the Company’s Financial Performance Units activity during the periods presented (dollars in thousands, except share amounts): Units Granted Compensation Expense Recognized Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Grant Period 2023 2022 2023 2022 2023 2022 May 1, 2019 through April 30, 2020 — — $ 31 $ 29 $ 83 $ 90 May 1, 2020 through December 31, 2020, excluding November 18, 2020 — — 38 29 86 82 On November 18, 2020 — — 21 (2) 40 28 May 3, 2021 through August 11, 2021 — — (147) 58 (91) 139 May 2, 2022 through November 2022, excluding August 4, 2022 (1) 322 64,629 — 58 — 58 August 4, 2022 (2) — — (24) — 5 — On May 1, 2023 (1) 52,117 — — — — — (1) Performance threshold was not met as of the three and six months ended June 30, 2023, therefore, no compensation expense was recognized for the three and six months ended June 30, 2023. (2) Performance threshold was not met for the year ended December 31, 2022. As of June 30, 2023, the threshold is not expected to be met for the year ended December 31, 2023. The 100% threshold is expected to be met for the year ended December 31, 2024. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following presents the calculation of basic and diluted earnings per common share during the periods presented (dollars in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings per common share - Basic Numerator: Net income available for common shareholders $ 1,506 $ 4,482 $ 5,326 $ 10,006 Denominator: Basic weighted average shares 9,532,397 9,450,987 9,518,135 9,434,742 Earnings per common share - basic $ 0.16 $ 0.47 $ 0.56 $ 1.06 Earnings per common share - Diluted Numerator: Net income available for common shareholders $ 1,506 $ 4,482 $ 5,326 $ 10,006 Denominator: Basic weighted average shares 9,532,397 9,450,987 9,518,135 9,434,742 Diluted effect of common stock equivalents: Stock options — 52,870 8,012 55,005 Time Vesting Units 70,151 122,090 97,689 155,813 Financial Performance Units 83,853 91,720 85,782 92,524 Market Performance Units — — — 6,827 Total diluted effect of common stock equivalents 154,004 266,680 191,483 310,169 Diluted weighted average shares 9,686,401 9,717,667 9,709,618 9,744,911 Earnings per common share - diluted $ 0.16 $ 0.46 $ 0.55 $ 1.03 |
Schedule of potentially dilutive securities | The following presents potentially dilutive securities excluded from the diluted earnings per share calculation during the periods presented. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock options 170,225 — 63,299 — Time Vesting Units 213,322 121,942 53,331 60,971 Financial Performance Units 9,090 — 2,273 — Total potentially dilutive securities 392,637 121,942 118,903 60,971 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Summary of related-party loan activity | The following presents a summary of related-party loan activity as of the dates noted (dollars in thousands): June 30, 2023 December 31, 2022 Balance, beginning of year $ 16,859 $ 12,833 Funded loans 5,690 15,079 Payments collected (3,513) (11,053) Balance, end of period $ 19,036 $ 16,859 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets and liabilities measured on recurring basis | The following presents assets and liabilities measured on a recurring basis as of the dates noted (dollars in thousands): June 30, 2023 Quoted Significant Significant Reported Financial Assets Mortgage loans held for sale $ — $ 19,746 $ — $ 19,746 Loans held at fair value $ — $ — $ 17,523 $ 17,523 Forward commitments and FSC $ — $ 233 $ — $ 233 Equity securities $ 627 $ 122 $ — $ 749 Guarantee asset $ — $ — $ 166 $ 166 IRLC, net $ — $ — $ 453 $ 453 Equity warrants $ — $ — $ 825 $ 825 Swap derivative asset $ — $ 729 $ — $ 729 Financial Liabilities Swap derivative liabilities $ — $ 45 $ — $ 45 December 31, 2022 Quoted Significant Significant Reported Financial Assets Mortgage loans held for sale $ — $ 8,839 $ — $ 8,839 Loans held for sale $ 1,965 $ — $ — $ 1,965 Loans held at fair value $ — $ — $ 23,321 $ 23,321 Forward commitments and FSC $ — $ 46 $ — $ 46 Equity securities $ 627 $ 122 $ — $ 749 Guarantee asset $ — $ — $ 143 $ 143 IRLC, net $ — $ — $ 229 $ 229 Equity warrants $ — $ — $ 825 $ 825 |
Schedule of loans measured at fair value under fair value option | June 30, 2023 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Mortgage loans held for sale $ 19,746 $ 19,529 $ 217 $ — $ — $ — $ — $ — $ — Loans held for investment 17,523 18,274 (751) 148 157 (9) 148 157 (9) $ 37,269 $ 37,803 $ (534) $ 148 $ 157 $ (9) $ 148 $ 157 $ (9) December 31, 2022 Total Loans Non Accruals 90 Days or More Past Due Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Fair Value Carrying Unpaid Principal Difference Mortgage loans held for sale $ 8,839 $ 8,750 $ 89 $ — $ — $ — $ — $ — $ — Loans held for sale 1,965 1,984 (19) — — — — — — Loans held for investment 23,321 23,415 (94) 139 140 (1) 139 140 (1) $ 34,125 $ 34,149 $ (24) $ 139 $ 140 $ (1) $ 139 $ 140 $ (1) |
Schedule of changes in fair value of loans | The following presents the changes in fair value of loans accounted for under the fair value option as of the dates noted (dollars in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Mortgage loans held for sale $ 60 $ (1,086) $ 128 $ (419) Loans held for sale — — (20) — Loans held for investment (507) 328 (657) 328 $ (447) $ (758) $ (549) $ (91) The following summarizes the activity pertaining to loans accounted for under the fair value option as of the dates noted (dollars in thousands): Three Months Ended Six Months Ended Mortgage loans held for sale 2023 2022 2023 2022 Balance at beginning of period $ 9,873 $ 33,663 $ 8,839 $ 30,620 Loans originated 97,117 279,412 151,189 470,494 Fair value changes 59 (1,086) 128 (419) Sales (87,303) (285,777) (140,403) (474,443) Settlements — (10) (7) (50) Balance at end of period $ 19,746 $ 26,202 $ 19,746 $ 26,202 Three Months Ended Six Months Ended Loans held for sale 2023 2022 2023 2022 Balance at beginning of period $ — $ — $ 1,965 $ — Loans transferred from held for investment — — 39,221 — Fair value changes — — (20) — Sales — — (40,761) — Settlements — — (405) — Balance at end of period $ — $ — $ — $ — Three Months Ended Six Months Ended Loans held for investment 2023 2022 2023 2022 Balance at beginning of period $ 20,807 $ 6,380 $ 23,321 $ — Loans acquired — 17,869 1,162 24,249 Fair value changes (507) 328 (657) 328 Net charge-offs (617) — (1,009) — Settlements (2,160) (3,100) (5,294) (3,100) Balance at end of period $ 17,523 $ 21,477 $ 17,523 $ 21,477 |
Summary of assets measured at fair value on nonrecurring basis | The following presents assets measured on a nonrecurring basis as of the dates noted (dollars in thousands): June 30, 2023 Quoted Significant Significant Reported Collateral dependent loans: Commercial and Industrial $ — $ — $ 6,744 $ 6,744 |
Summary of assets and liability for level 3 instruments measured at fair value on recurring basis | The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis as of the dates noted (dollars in thousands): Three Months Ended June 30, 2023 Corporate Bonds Loans Held at Fair FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ — $ 20,807 $ — $ 235 $ 723 $ 825 Acquisitions — — — — 454 — Originations — — — 9 (692) — Gains/(losses) in net income, net — (507) — (78) (32) — Settlements — (2,777) — — — — Ending balance $ — $ 17,523 $ — $ 166 $ 453 $ 825 Three Months Ended June 30, 2022 Corporate Bonds Loans Held at Fair FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ 6,215 $ 6,380 $ — $ 206 $ 990 $ 402 Acquisitions — 17,869 — — 1,083 — Originations — — — — (2,063) — Gains/(losses) in net income, net — 328 — (32) 826 323 Transfer to held-to-maturity (6,215) — — — — — Settlements — (3,100) — — — — Ending balance $ — $ 21,477 $ — $ 174 $ 836 $ 725 Six Months Ended June 30, 2023 Corporate Bonds Loans Held at Fair FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ — $ 23,321 $ — $ 143 $ 229 $ 825 Acquisitions — 1,162 — — 1,340 — Originations — — — 14 (2,178) — Gains/(losses) in net income, net — (657) — 9 1,062 — Settlements — (6,303) — — — — Ending balance $ — $ 17,523 $ — $ 166 $ 453 $ 825 Six Months Ended June 30, 2022 Corporate Bonds Loans Held at Fair Value FSC Guarantee Asset IRLC Equity Warrants Beginning balance $ 2,113 $ — $ (9) $ 237 $ 1,473 $ 160 Acquisitions 4,000 24,249 9 — 2,697 242 Originations — — — — (3,417) — Gains/(losses) in net income, net — 328 — (63) 83 323 Unrealized gains, net 102 — — — — — Transfer to held-to-maturity (6,215) — — — — — Settlements — (3,100) — — — — Ending balance $ — $ 21,477 $ — $ 174 $ 836 $ 725 |
Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs | The following presents quantitative information about Level 3 assets measured on a recurring and nonrecurring basis as of the dates noted (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2023 Fair Value Valuation Significant Range Recurring fair value Loans held for investment at fair value $ 17,523 Discounted cash flow Discount rate 8% to 9% (8%) Guarantee asset 166 Discounted cash flow Discount rate 5% (5%) 5% (5%) IRLC, net 453 Best execution model Pull through 54% to 100% (90%) Equity warrants 825 Black-Scholes option pricing model Volatility 32.7% to 88.9% (43.6%) 4.59% (4.59%) 0 to 3 years Nonrecurring fair value Collateral dependent loans: Commercial and Industrial 6,575 Credit enhancement - guarantee asset value Market rate adjustments 44% (27%) Commercial and Industrial 169 Sales comparison, Loss given default 35% to 61% (50)% Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022 Fair Value Valuation Significant Range Recurring fair value Loans held for investment at fair value $ 23,321 Discounted cash flow Discount rate 4% to 18% (8)% Guarantee asset 143 Discounted cash flow Discount rate 5% (5%) 4% (4%) IRLC, net 229 Best execution model Pull through 73% to 100% (91%) Equity warrants 825 Black-Scholes option pricing model Volatility 32.7% to 88.9% (34.8%) 4.04% to 4.14% (4.05%) 0 to 4 years |
Summary of carrying amounts and estimated fair values of financial instruments | The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of the dates noted (dollars in thousands): Carrying Fair Value Measurements Using: June 30, 2023 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 297,568 $ 297,568 $ — $ — Held-to-maturity securities, net of ACL 77,469 237 61,516 7,798 Loans, net (1) 2,456,015 — — 2,370,315 Accrued interest receivable 11,135 11,135 — — Liabilities: Deposits 2,375,394 1,999,248 — 392,455 Borrowings: FHLB borrowings – fixed rate 308,364 — 308,316 — Federal Reserve borrowings – fixed rate 4,236 4,236 — — Subordinated notes – fixed-to-floating rate 52,223 — — 55,794 Accrued interest payable 1,788 1,788 — — Carrying Fair Value Measurements Using: December 31, 2022 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 196,512 $ 196,512 $ — $ — Held-to-maturity securities 81,056 234 67,433 7,051 Loans, net (1) 2,428,909 — — 2,356,085 Accrued interest receivable 10,445 10,445 — — Liabilities: Deposits 2,405,229 2,181,139 — 228,868 Borrowings: FHLB borrowings – fixed rate 141,498 — 141,867 — Federal Reserve borrowings – fixed rate 5,388 5,388 — — Subordinated notes – fixed-to-floating rate 52,132 — — 60,384 Accrued interest payable 1,125 1,125 — — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The Company presents derivative position gross on the balance sheet. The following table reflects the fair value of derivatives recorded on the condensed consolidated balance sheets as of June 30, 2023 (dollars in thousands): As of June 30, 2023 Notional Amount Fair Value Included in other assets: Derivatives designated as hedges: Interest rate swaps - cash flow hedge $ 50,000 $ 684 Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans 18,991 45 Total included in other assets $ 729 Included in other liabilities: Derivatives designated as hedges: Interest rate swaps - cash flow hedge $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps related to customer loans 18,991 45 Total included in other liabilities $ 45 The effect of cash flow hedge accounting on accumulated other comprehensive income for the three and six months ended June 30, 2023 is as follows (dollars in thousands): Three Months Ended June 30, 2023 Unrealized Gain (Loss) Recorded in OCI on Derivative Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate contracts $ 787 $ — $ — Six Months Ended June 30, 2023 Unrealized Gain (Loss) Recorded in OCI on Derivative Location of Gain (Loss) Reclassified from OCI into Income Amount of Gain (Loss) Reclassified from OCI into Income Interest rate contracts $ 519 $ — $ — |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment data | The following presents the financial information for each segment that is specifically identifiable or based on allocations using internal methods as of or during the periods presented (dollars in thousands): As of or for the three months ended June 30, 2023 Wealth Mortgage Consolidated Income Statement Total interest income $ 36,142 $ 230 $ 36,372 Total interest expense 17,937 — 17,937 Provision for credit losses 1,843 — 1,843 Net interest income, after provision for credit losses 16,362 230 16,592 Non-interest income 3,167 795 3,962 Total income before non-interest expense 19,529 1,025 20,554 Depreciation and amortization expense 580 9 589 All other non-interest expense 16,520 1,410 17,930 Income (loss) before income taxes $ 2,429 $ (394) $ 2,035 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,983,814 21,832 3,005,646 As of or for the three months ended June 30, 2022 Wealth Mortgage Consolidated Income Statement Total interest income $ 21,644 $ 229 $ 21,873 Total interest expense 1,493 — 1,493 Provision for credit losses 519 — 519 Net interest income, after provision for credit losses 19,632 229 19,861 Non-interest income 5,649 1,049 6,698 Total income before non-interest expense 25,281 1,278 26,559 Depreciation and amortization expense 523 11 534 All other non-interest expense 17,834 2,215 20,049 Income before income taxes $ 6,924 $ (948) $ 5,976 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,513,170 28,323 2,541,493 As of or for the six months ended June 30, 2023 Wealth Mortgage Consolidated Income Statement Total interest income $ 70,742 $ 342 $ 71,084 Total interest expense 33,076 — 33,076 Provision for credit losses 1,533 — 1,533 Net interest income, after provision for credit losses 36,133 342 36,475 Non-interest income 7,940 1,828 9,768 Total income before non-interest expense 44,073 2,170 46,243 Depreciation and amortization expense 1,166 17 1,183 All other non-interest expense 34,723 3,141 37,864 Income before income taxes $ 8,184 $ (988) $ 7,196 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,983,814 21,832 3,005,646 As of or for the six months ended June 30, 2022 Wealth Mortgage Consolidated Income Statement Total interest income $ 41,331 $ 419 $ 41,750 Total interest expense 2,874 — 2,874 Provision for loan losses 729 — 729 Net interest income, after provision for loan losses 37,728 419 38,147 Non-interest income 11,710 3,376 15,086 Total income before non-interest expense 49,438 3,795 53,233 Depreciation and amortization expense 1,070 24 1,094 All other non-interest expense 34,431 4,416 38,847 Income before income taxes $ 13,937 $ (645) $ 13,292 Goodwill $ 30,400 $ — $ 30,400 Total assets 2,513,170 28,323 2,541,493 F |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of actual and required capital ratios | The following presents the actual and required capital amounts and ratios as of dates noted (dollars in thousands): Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized June 30, 2023 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 242,040 10.34 % $ 140,484 6.0 % $ 187,312 8.0 % Consolidated 217,170 9.26 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 242,040 10.34 105,363 4.5 152,191 6.5 Consolidated 217,170 9.26 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 262,989 11.23 187,312 8.0 234,140 10.0 Consolidated 291,119 12.41 N/A N/A N/A N/A Tier 1 capital to average assets Bank 242,040 8.70 111,300 4.0 139,125 5.0 Consolidated 217,170 7.80 N/A N/A N/A N/A Actual Required for Capital Adequacy Purposes (1) To be Well Capitalized December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Tier 1 capital to risk-weighted assets Bank $ 234,738 10.29 % $ 136,928 6.0 % $ 182,571 8.0 % Consolidated 212,229 9.28 N/A N/A N/A N/A CET1 to risk-weighted assets Bank 234,738 10.29 102,696 4.5 148,339 6.5 Consolidated 212,229 9.28 N/A N/A N/A N/A Total capital to risk-weighted assets Bank 252,398 11.06 182,571 8.0 228,213 10.0 Consolidated 282,889 12.37 N/A N/A N/A N/A Tier 1 capital to average assets Bank 234,738 8.65 108,506 4.0 135,633 5.0 Consolidated 212,229 7.81 N/A N/A N/A N/A ______________________________________ (1) Does not include capital conservation buffer. |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Debt securities pledged as collateral | $ 48,400 | $ 22,600 |
Bank Technology Fund | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Debt securities pledged as collateral | 47,300 | |
March 27, 2024 | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Borrowings from federal reserve bank | $ 30,997 | $ 0 |
Collateral concentration risk | Loans Receivable | Secured by Real Estate | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Concentration risk (as a percent) | 80% | 77.90% |
ORGANIZATION AND SUMMARY OF S_5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently adopted accounting pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total FMC stockholders’ equity | $ 242,242 | $ 239,822 | $ 240,864 | $ 228,024 | $ 223,266 | $ 219,041 | ||
Allowance for credit losses: loans | 22,044 | 19,843 | $ 20,653 | 17,183 | 14,357 | 13,885 | 13,732 | |
Allowance for credit losses on off-balance sheet exposures | 3,900 | |||||||
Allowance for credit losses: held-to-maturity securities | 71 | |||||||
Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total FMC stockholders’ equity | $ 51,143 | $ 49,637 | 51,887 | $ 40,195 | $ 35,713 | $ 30,189 | ||
Cumulative change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total FMC stockholders’ equity | [1] | (5,319) | ||||||
Cumulative change in accounting principle | Accounting Standards Update 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total FMC stockholders’ equity | 3,470 | |||||||
Cumulative change in accounting principle | Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total FMC stockholders’ equity | [1] | $ (5,319) | ||||||
Cumulative change in accounting principle | Retained Earnings | Accounting Standards Update 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total FMC stockholders’ equity | 5,300 | |||||||
Allowance for credit losses: loans | 3,500 | |||||||
Allowance for credit losses on off-balance sheet exposures | 3,500 | |||||||
Allowance for credit losses: held-to-maturity securities | $ 100 | |||||||
[1]Refer to Note 1 - Organization and Summary of Significant Accounting Policies for further information. |
ORGANIZATION AND SUMMARY OF S_6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Adjusted Balance Sheet to Apply Adopted Guidance (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | |||||||
Allowance for credit losses: loans | $ (22,044) | $ (19,843) | $ (20,653) | $ (17,183) | $ (14,357) | $ (13,885) | $ (13,732) |
Allowance for credit losses: held-to-maturity securities | (71) | ||||||
Deferred tax assets, net | 8,617 | ||||||
Liabilities | |||||||
Allowance for credit losses on off-balance sheet exposures | 3,900 | ||||||
Shareholders' Equity | |||||||
Retained earnings | $ 51,143 | 46,568 | $ 51,887 | ||||
Balance at January 1, 2023 (before adjustment) | |||||||
Assets | |||||||
Allowance for credit losses: loans | (17,183) | ||||||
Allowance for credit losses: held-to-maturity securities | 0 | ||||||
Deferred tax assets, net | 6,914 | ||||||
Liabilities | |||||||
Allowance for credit losses on off-balance sheet exposures | 419 | ||||||
Shareholders' Equity | |||||||
Retained earnings | 51,887 | ||||||
Cumulative effect adjustment amount | |||||||
Assets | |||||||
Allowance for credit losses: loans | (3,470) | ||||||
Allowance for credit losses: held-to-maturity securities | (71) | ||||||
Deferred tax assets, net | 1,703 | ||||||
Liabilities | |||||||
Allowance for credit losses on off-balance sheet exposures | 3,481 | ||||||
Shareholders' Equity | |||||||
Retained earnings | $ (5,319) |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized cost and fair value of securities held-to-maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Investment securities held-to-maturity: | |||
Amortized Cost | $ 77,540 | $ 81,056 | |
Gross Unrecognized Gains | 11 | 13 | |
Gross Unrecognized Losses | (8,000) | (6,351) | |
Fair Value | 69,551 | 74,718 | |
Allowance for credit losses: held-to-maturity securities | (71) | 0 | |
U.S. Treasury debt | |||
Investment securities held-to-maturity: | |||
Amortized Cost | 247 | 243 | |
Gross Unrecognized Gains | 0 | 0 | |
Gross Unrecognized Losses | (10) | (9) | |
Fair Value | 237 | 234 | |
Allowance for credit losses: held-to-maturity securities | 0 | ||
Corporate bonds | |||
Investment securities held-to-maturity: | |||
Amortized Cost | 23,758 | 23,819 | |
Gross Unrecognized Gains | 0 | 0 | |
Gross Unrecognized Losses | (3,507) | (2,453) | |
Fair Value | 20,251 | 21,366 | |
Allowance for credit losses: held-to-maturity securities | (71) | $ (71) | 0 |
GNMA mortgage-backed securities – residential | |||
Investment securities held-to-maturity: | |||
Amortized Cost | 36,921 | 39,426 | |
Gross Unrecognized Gains | 0 | 0 | |
Gross Unrecognized Losses | (3,278) | (2,800) | |
Fair Value | 33,643 | 36,626 | |
Allowance for credit losses: held-to-maturity securities | 0 | ||
FNMA mortgage-backed securities – residential | |||
Investment securities held-to-maturity: | |||
Amortized Cost | 6,370 | 6,708 | |
Gross Unrecognized Gains | 0 | 0 | |
Gross Unrecognized Losses | (545) | (506) | |
Fair Value | 5,825 | 6,202 | |
Allowance for credit losses: held-to-maturity securities | 0 | ||
Government CMO and MBS - commercial | |||
Investment securities held-to-maturity: | |||
Amortized Cost | 6,293 | 6,786 | |
Gross Unrecognized Gains | 11 | 13 | |
Gross Unrecognized Losses | (412) | (403) | |
Fair Value | 5,892 | 6,396 | |
Allowance for credit losses: held-to-maturity securities | 0 | ||
Corporate CMO and MBS | |||
Investment securities held-to-maturity: | |||
Amortized Cost | 3,951 | 4,074 | |
Gross Unrecognized Gains | 0 | 0 | |
Gross Unrecognized Losses | (248) | (180) | |
Fair Value | 3,703 | 3,894 | |
Allowance for credit losses: held-to-maturity securities | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Transfer of securities from available-for-sale to held-to-maturity | $ 58,700,000 | $ 0 | $ 58,727,000 | ||
Unrealized loss on transfer of securities from available-for-sale to held-to-maturity | 2,300,000 | ||||
Gain (loss) recognized at the time of transfer | $ 0 | ||||
Debt securities pledged as collateral | $ 48,400,000 | $ 48,400,000 | $ 22,600,000 | ||
Shareholder equity held by one issuer (as a percent) | 10% | 10% | |||
Securities sold | 0 | $ 0 | $ 0 | ||
Accrued interest receivable | 11,135,000 | 11,135,000 | 10,445,000 | ||
Bank Technology Fund | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Contractual obligation | 6,000,000 | ||||
Payments to partnership fund | 400,000 | ||||
Balance with SBIC included in other assets | 1,700,000 | 1,700,000 | |||
Committed investments to be made in the future | 4,300,000 | ||||
Debt securities pledged as collateral | 47,300,000 | 47,300,000 | |||
Bank Technology Fund | Other Assets | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Contribution to committed investments | 1,300,000 | ||||
Small Business Investment Company ("SBIC") | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Contractual obligation | 800,000 | 800,000 | |||
Return of capital, received | 100,000 | ||||
Small Business Investment Company ("SBIC") | Other Assets | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Contribution to committed investments | 200,000 | ||||
Balance with SBIC included in other assets | 2,200,000 | 2,200,000 | $ 2,000,000 | ||
Held-to-Maturity Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Accrued interest receivable | $ 300,000 | $ 300,000 |
INVESTMENT SECURITIES - Amort_2
INVESTMENT SECURITIES - Amortized cost and estimated fair value of available-for-sale securities excluding SBIC (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due within one year | $ 0 | |
Due between one year and five years | 2,239 | |
Due between five years and ten years | 21,513 | |
Due after ten years | 253 | |
Securities (CMO and MBS) | 53,535 | |
Amortized Cost | 77,540 | $ 81,056 |
Fair Value | ||
Due within one year | 0 | |
Due between one year and five years | 2,047 | |
Due between five years and ten years | 18,208 | |
Due after ten years | 233 | |
Securities (CMO and MBS) | 49,063 | |
Total | $ 69,551 | $ 74,718 |
INVESTMENT SECURITIES - Securit
INVESTMENT SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Less than 12 Months | ||
Fair Value | $ 9,008 | $ 58,574 |
Unrecognized Losses | (555) | (4,543) |
12 Months or Longer | ||
Fair Value | 59,921 | 15,339 |
Unrecognized Losses | (7,445) | (1,808) |
Total | ||
Fair Value | 68,929 | 73,913 |
Unrecognized Losses | (8,000) | (6,351) |
U.S. Treasury debt | ||
Less than 12 Months | ||
Fair Value | 0 | 0 |
Unrecognized Losses | 0 | 0 |
12 Months or Longer | ||
Fair Value | 237 | 234 |
Unrecognized Losses | (10) | (9) |
Total | ||
Fair Value | 237 | 234 |
Unrecognized Losses | (10) | (9) |
Corporate bonds | ||
Less than 12 Months | ||
Fair Value | 0 | 20,911 |
Unrecognized Losses | 0 | (2,436) |
12 Months or Longer | ||
Fair Value | 20,251 | 455 |
Unrecognized Losses | (3,507) | (17) |
Total | ||
Fair Value | 20,251 | 21,366 |
Unrecognized Losses | (3,507) | (2,453) |
GNMA mortgage-backed securities – residential | ||
Less than 12 Months | ||
Fair Value | 6,267 | 22,371 |
Unrecognized Losses | (393) | (1,051) |
12 Months or Longer | ||
Fair Value | 27,377 | 14,255 |
Unrecognized Losses | (2,885) | (1,749) |
Total | ||
Fair Value | 33,644 | 36,626 |
Unrecognized Losses | (3,278) | (2,800) |
FNMA mortgage-backed securities – residential | ||
Less than 12 Months | ||
Fair Value | 0 | 6,202 |
Unrecognized Losses | 0 | (506) |
12 Months or Longer | ||
Fair Value | 5,825 | 0 |
Unrecognized Losses | (545) | 0 |
Total | ||
Fair Value | 5,825 | 6,202 |
Unrecognized Losses | (545) | (506) |
Government CMO and MBS - commercial | ||
Less than 12 Months | ||
Fair Value | 52 | 5,591 |
Unrecognized Losses | (403) | |
12 Months or Longer | ||
Fair Value | 5,241 | 0 |
Unrecognized Losses | (412) | 0 |
Total | ||
Fair Value | 5,293 | 5,591 |
Unrecognized Losses | (412) | (403) |
Corporate CMO and MBS | ||
Less than 12 Months | ||
Fair Value | 2,689 | 3,499 |
Unrecognized Losses | (162) | (147) |
12 Months or Longer | ||
Fair Value | 990 | 395 |
Unrecognized Losses | (86) | (33) |
Total | ||
Fair Value | 3,679 | 3,894 |
Unrecognized Losses | $ (248) | $ (180) |
INVESTMENT SECURITIES - Allowan
INVESTMENT SECURITIES - Allowance for credit losses to HTM securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Allowance for credit losses: | ||||||||
Beginning balance | $ 0 | |||||||
Impact of ASU 2016-13 adoption(1) | $ 242,242 | 242,242 | $ 239,822 | $ 240,864 | $ 228,024 | $ 223,266 | $ 219,041 | |
Total ending allowance balance | 71 | 71 | ||||||
Cumulative change in accounting principle | ||||||||
Allowance for credit losses: | ||||||||
Impact of ASU 2016-13 adoption(1) | [1] | $ (5,319) | ||||||
Corporate bonds | ||||||||
Allowance for credit losses: | ||||||||
Beginning balance | 71 | 0 | ||||||
Provision for credit losses | 0 | 0 | ||||||
Securities charged-off (recoveries) | 0 | 0 | ||||||
Total ending allowance balance | 71 | 71 | ||||||
Corporate bonds | Cumulative change in accounting principle | ||||||||
Allowance for credit losses: | ||||||||
Beginning balance | 71 | |||||||
Corporate CMO | ||||||||
Allowance for credit losses: | ||||||||
Beginning balance | 0 | 0 | ||||||
Provision for credit losses | 0 | 0 | ||||||
Securities charged-off (recoveries) | 0 | 0 | ||||||
Total ending allowance balance | $ 0 | 0 | ||||||
Corporate CMO | Cumulative change in accounting principle | ||||||||
Allowance for credit losses: | ||||||||
Beginning balance | $ 0 | |||||||
[1]Refer to Note 1 - Organization and Summary of Significant Accounting Policies for further information. |
LOANS AND THE ALLOWANCE FOR C_3
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Summary of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | $ 2,495,582 | $ 2,469,413 | |||||
Loans accounted for under the fair value option | 17,523 | 23,321 | |||||
Allowance for credit losses: loans | (22,044) | $ (19,843) | $ (20,653) | (17,183) | $ (14,357) | $ (13,885) | $ (13,732) |
Total, net | 2,473,538 | 2,452,230 | |||||
Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 2,456,015 | 2,428,909 | |||||
Loans accounted for under the fair value option | (17,523) | (23,321) | |||||
Allowance for credit losses: loans | (22,044) | (17,183) | |||||
Total, net | 2,473,538 | 2,452,230 | |||||
Total | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 2,478,059 | 2,446,092 | |||||
Cash, Securities, and Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 150,620 | 165,559 | |||||
Allowance for credit losses: loans | (1,311) | (1,451) | (1,198) | (1,194) | (1,440) | (1,598) | |
Cash, Securities, and Other | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 150,620 | 165,559 | |||||
Consumer and Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 39,285 | 49,391 | |||||
Loans accounted for under the fair value option | 18,300 | 23,400 | |||||
Allowance for credit losses: loans | (137) | (196) | (191) | (220) | (283) | (266) | |
Consumer and Other | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 21,762 | 26,070 | |||||
Construction and Development | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 310,382 | 285,627 | |||||
Allowance for credit losses: loans | (7,496) | (6,229) | (2,025) | (1,074) | (954) | (1,092) | |
Construction and Development | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 310,382 | 285,627 | |||||
1-4 Family Residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 880,600 | 899,722 | |||||
Allowance for credit losses: loans | (3,579) | (3,821) | (6,309) | (4,845) | (3,789) | (3,553) | |
1-4 Family Residential | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 880,600 | 899,722 | |||||
Non-Owner Occupied CRE | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 558,276 | 493,134 | |||||
Allowance for credit losses: loans | (2,495) | (2,709) | (3,490) | (3,235) | (2,867) | (2,952) | |
Non-Owner Occupied CRE | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 558,276 | 493,134 | |||||
Owner Occupied CRE | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 217,020 | 214,189 | |||||
Allowance for credit losses: loans | (1,182) | (1,272) | (1,510) | (1,477) | (1,328) | (1,292) | |
Owner Occupied CRE | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 217,020 | 214,189 | |||||
Commercial and Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 339,399 | 361,791 | |||||
Allowance for credit losses: loans | (5,844) | $ (4,165) | (2,460) | $ (2,312) | $ (3,224) | $ (2,979) | |
Commercial and Industrial | Amortized Cost | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | $ 339,399 | $ 361,791 |
LOANS AND THE ALLOWANCE FOR C_4
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) loan | Jun. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total | $ 2,495,582 | $ 2,495,582 | $ 2,469,413 |
Loans accounted for under the fair value option | 17,523 | 17,523 | 23,321 |
Total, net | 2,473,538 | 2,473,538 | 2,452,230 |
Advances to customers experiencing financial difficulty | 300 | 500 | |
Interest income on nonaccrual loans | 200 | 200 | |
Accrued interest receivable | 10,500 | 10,500 | 9,800 |
Payments Received On Financing Receivable, Nonaccrual | $ 1,800 | ||
Number of non-accrual loans paid opff | loan | 2 | ||
Release of provision on pooled loans | 800 | ||
Allowance increase on analyzed loans | $ 2,195 | $ 2,195 | |
COVID-19 | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Delinquent over period (in days) | 30 days | ||
Payments period (in years) | 2 years | ||
Number of loans modified | loan | 45 | ||
Outstanding balance of modified loans | $ 76,000 | ||
Number of loans modified | loan | 14 | ||
Loan deferral amount | 3,100 | $ 3,100 | |
Consumer and Other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total | 39,285 | 39,285 | 49,391 |
Loans accounted for under the fair value option | 18,300 | 18,300 | 23,400 |
PPP Loans | Cash, Securities, and Other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total | $ 5,400 | $ 5,400 | $ 6,900 |
Percent of loans on total loan segment | 3.60% | 3.60% | 4.20% |
Cash, Securities, and Other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total | $ 150,620 | $ 150,620 | $ 165,559 |
MSLP loan | COVID-19 | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Percent of loans on total loan segment | 1.60% | 1.60% | 1.60% |
Number of loans | loan | 4 | 5 | |
Total, net | $ 5,500 | $ 5,500 | $ 5,900 |
Commercial and Industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total | 339,399 | 339,399 | $ 361,791 |
Number of loans, 90 days delinquent and accruing interest | loan | 1 | ||
Allowance increase on analyzed loans | 2,195 | 2,195 | |
Simmons Bank | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total | $ 221,000 | $ 221,000 | $ 230,400 |
LOANS AND THE ALLOWANCE FOR C_5
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Aging analysis of recorded investments by class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | $ 35,392 | $ 23,964 |
Total | 2,495,582 | 2,469,413 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,442,667 | 2,422,128 |
Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,478,059 | 2,446,092 |
Loans Accounted for Under the Fair Value Option | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,523 | 23,321 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 13,326 | 11,238 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 12,030 | 11,192 |
90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 10,036 | 1,534 |
Cash, Securities, and Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 1,704 | 2,278 |
Total | 150,620 | 165,559 |
Cash, Securities, and Other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 148,916 | 163,281 |
Cash, Securities, and Other | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 150,620 | 165,559 |
Cash, Securities, and Other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 1,704 | 1,735 |
Cash, Securities, and Other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 539 |
Cash, Securities, and Other | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 4 |
Consumer and Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 1,031 | 667 |
Total | 39,285 | 49,391 |
Consumer and Other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 20,731 | 25,403 |
Consumer and Other | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 21,762 | 26,070 |
Consumer and Other | Loans Accounted for Under the Fair Value Option | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,523 | 23,321 |
Consumer and Other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 9 | 657 |
Consumer and Other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 1,016 | 5 |
Consumer and Other | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 6 | 5 |
Construction and Development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 201 |
Total | 310,382 | 285,627 |
Construction and Development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 310,382 | 285,426 |
Construction and Development | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 310,382 | 285,627 |
Construction and Development | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
Construction and Development | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
Construction and Development | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 201 |
1-4 Family Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 651 | 1,757 |
Total | 880,600 | 899,722 |
1-4 Family Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 879,949 | 897,965 |
1-4 Family Residential | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 880,600 | 899,722 |
1-4 Family Residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 651 | 1,752 |
1-4 Family Residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
1-4 Family Residential | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 5 |
Non-Owner Occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 1,071 |
Total | 558,276 | 493,134 |
Non-Owner Occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 558,276 | 492,063 |
Non-Owner Occupied CRE | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 558,276 | 493,134 |
Non-Owner Occupied CRE | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 1,071 |
Non-Owner Occupied CRE | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
Non-Owner Occupied CRE | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
Owner Occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 3,950 | 1,165 |
Total | 217,020 | 214,189 |
Owner Occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 213,070 | 213,024 |
Owner Occupied CRE | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 217,020 | 214,189 |
Owner Occupied CRE | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 3,950 | 1,165 |
Owner Occupied CRE | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
Owner Occupied CRE | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 28,056 | 16,825 |
Total | 339,399 | 361,791 |
Commercial and Industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 311,343 | 344,966 |
Commercial and Industrial | Total Amortized Cost | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 339,399 | 361,791 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 7,012 | 4,858 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | 11,014 | 10,648 |
Commercial and Industrial | 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Past Due | $ 10,030 | $ 1,319 |
LOANS AND THE ALLOWANCE FOR C_6
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Recorded investment in non-accrual loans by class (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | $ 2,082 | $ 12,137 |
Total non-accrual loans | 10,036 | 12,137 |
90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | 25 |
Cash, Securities, and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | 0 | 4 |
Total non-accrual loans | 0 | 4 |
Cash, Securities, and Other | 90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | 0 |
Consumer and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | 6 | 5 |
Total non-accrual loans | 6 | 5 |
Consumer and Other | 90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | 0 |
Construction and Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | 0 | 201 |
Total non-accrual loans | 0 | 201 |
Construction and Development | 90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | 0 |
1-4 Family Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | 0 | 0 |
Total non-accrual loans | 0 | 0 |
1-4 Family Residential | 90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | 0 |
Owner Occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | 0 | 1,165 |
Total non-accrual loans | 0 | 1,165 |
Owner Occupied CRE | 90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | 0 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans with no ACL | 2,076 | 10,762 |
Total non-accrual loans | 10,030 | 10,762 |
Commercial and Industrial | 90 or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due over 89 days still accruing | 0 | $ 25 |
Individual Commercial and Industrial, Individually Analyzed Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for loan losses, specific reserves | $ 2,200 |
LOANS AND THE ALLOWANCE FOR C_7
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Summary of nonaccrual loans with collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | $ 10,030 | $ 12,137 |
Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 10,030 | |
Cash, Securities, and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | 4 |
Cash, Securities, and Other | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Cash, Securities, and Other | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Cash, Securities, and Other | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Consumer and Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | 5 |
Consumer and Other | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Consumer and Other | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Consumer and Other | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Construction and Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | 201 |
Construction and Development | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Construction and Development | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Construction and Development | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
1-4 Family Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
1-4 Family Residential | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
1-4 Family Residential | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
1-4 Family Residential | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Non-Owner Occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Non-Owner Occupied CRE | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Non-Owner Occupied CRE | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Non-Owner Occupied CRE | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Owner Occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | $ 1,165 |
Owner Occupied CRE | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Owner Occupied CRE | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Owner Occupied CRE | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 10,030 | |
Commercial and Industrial | Secured by Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Commercial and Industrial | Secured by Cash and Securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | 0 | |
Commercial and Industrial | Secured by Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated | $ 10,030 |
LOANS AND THE ALLOWANCE FOR C_8
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Summary of unpaid principal balance of loans classified as TDRs (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | $ 22,044 | $ 19,843 | $ 20,653 | $ 17,183 | $ 14,357 | $ 13,885 | $ 13,732 |
Cash, Securities, and Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | 1,311 | 1,451 | 1,198 | 1,194 | 1,440 | 1,598 | |
Consumer and Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | 137 | 196 | 191 | 220 | 283 | 266 | |
Commercial and Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | 5,844 | 4,165 | 2,460 | 2,312 | 3,224 | 2,979 | |
1-4 Family Residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | 3,579 | 3,821 | 6,309 | 4,845 | 3,789 | 3,553 | |
Non-Owner Occupied CRE | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | 2,495 | 2,709 | 3,490 | 3,235 | 2,867 | 2,952 | |
Owner Occupied CRE | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | 1,182 | 1,272 | 1,510 | 1,477 | 1,328 | 1,292 | |
Construction and Development | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses: loans | $ 7,496 | $ 6,229 | $ 2,025 | $ 1,074 | $ 954 | $ 1,092 |
LOANS AND THE ALLOWANCE FOR C_9
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Allowance for loan losses by portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | $ 19,843 | $ 13,885 | $ 17,183 | $ 13,732 | $ 13,732 | ||||
Impact of ASU 2016-13 adoption(1) | 242,242 | 228,024 | 242,242 | 228,024 | 240,864 | $ 239,822 | $ 223,266 | $ 219,041 | |
Provision for loan losses | 2,209 | 519 | |||||||
Charge-offs | (13) | (95) | (30) | (192) | (300) | ||||
Recoveries | 5 | 48 | 17 | 88 | |||||
Ending balance | 22,044 | 14,357 | 22,044 | 14,357 | 17,183 | ||||
Provision for loan losses | 1,404 | 729 | |||||||
Individually | 2,195 | 2,195 | |||||||
Collectively | 19,849 | 19,849 | 17,183 | ||||||
Individually evaluated | 10,030 | 10,030 | 12,137 | ||||||
Collectively evaluated | 2,468,029 | 2,468,029 | 2,433,955 | ||||||
Loans held for investment measured at fair value | 23,321 | ||||||||
Total | 2,495,582 | 2,495,582 | 2,469,413 | ||||||
Cumulative change in accounting principle | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | [1] | (5,319) | |||||||
Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | 3,470 | ||||||||
Cash, Securities, and Other | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 1,451 | 1,440 | 1,198 | 1,598 | 1,598 | ||||
Provision for loan losses | (140) | (246) | |||||||
Charge-offs | 0 | ||||||||
Ending balance | 1,311 | 1,194 | 1,311 | 1,194 | 1,198 | ||||
Provision for loan losses | (80) | (404) | |||||||
Collectively | 1,311 | 1,311 | 1,198 | ||||||
Individually evaluated | 0 | 0 | 4 | ||||||
Collectively evaluated | 150,620 | 150,620 | 165,555 | ||||||
Total | 150,620 | 150,620 | 165,559 | ||||||
Cash, Securities, and Other | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | 193 | ||||||||
Consumer and Other | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 196 | 283 | 191 | 266 | 266 | ||||
Provision for loan losses | (50) | (16) | |||||||
Charge-offs | (13) | (95) | (30) | (192) | |||||
Recoveries | 4 | 48 | 15 | 88 | |||||
Ending balance | 137 | 220 | 137 | 220 | 191 | ||||
Provision for loan losses | (145) | 58 | |||||||
Collectively | 137 | 137 | 191 | ||||||
Individually evaluated | 0 | 0 | 5 | ||||||
Collectively evaluated | 21,762 | 21,762 | 26,065 | ||||||
Loans held for investment measured at fair value | 23,321 | ||||||||
Total | 39,285 | 39,285 | 49,391 | ||||||
Consumer and Other | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | 106 | ||||||||
Construction and Development | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 6,229 | 954 | 2,025 | 1,092 | 1,092 | ||||
Provision for loan losses | 1,267 | 120 | |||||||
Charge-offs | 0 | ||||||||
Ending balance | 7,496 | 1,074 | 7,496 | 1,074 | 2,025 | ||||
Provision for loan losses | 790 | (18) | |||||||
Collectively | 7,496 | 7,496 | 2,025 | ||||||
Individually evaluated | 0 | 0 | 201 | ||||||
Collectively evaluated | 310,382 | 310,382 | 285,426 | ||||||
Total | 310,382 | 310,382 | 285,627 | ||||||
Construction and Development | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | 4,681 | ||||||||
1-4 Family Residential | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 3,821 | 3,789 | 6,309 | 3,553 | 3,553 | ||||
Provision for loan losses | (242) | 1,056 | |||||||
Charge-offs | 0 | ||||||||
Ending balance | 3,579 | 4,845 | 3,579 | 4,845 | 6,309 | ||||
Provision for loan losses | 78 | 1,292 | |||||||
Collectively | 3,579 | 3,579 | 6,309 | ||||||
Individually evaluated | 0 | 0 | |||||||
Collectively evaluated | 880,600 | 880,600 | 899,722 | ||||||
Total | 880,600 | 880,600 | 899,722 | ||||||
1-4 Family Residential | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | (2,808) | ||||||||
Non-Owner Occupied CRE | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 2,709 | 2,867 | 3,490 | 2,952 | 2,952 | ||||
Provision for loan losses | (214) | 368 | |||||||
Charge-offs | 0 | ||||||||
Ending balance | 2,495 | 3,235 | 2,495 | 3,235 | 3,490 | ||||
Provision for loan losses | (306) | 283 | |||||||
Collectively | 2,495 | 2,495 | 3,490 | ||||||
Individually evaluated | 0 | 0 | |||||||
Collectively evaluated | 558,276 | 558,276 | 493,134 | ||||||
Total | 558,276 | 558,276 | 493,134 | ||||||
Non-Owner Occupied CRE | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | (689) | ||||||||
Owner Occupied CRE | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 1,272 | 1,328 | 1,510 | 1,292 | 1,292 | ||||
Provision for loan losses | (90) | 149 | |||||||
Charge-offs | 0 | ||||||||
Ending balance | 1,182 | 1,477 | 1,182 | 1,477 | 1,510 | ||||
Provision for loan losses | (224) | 185 | |||||||
Collectively | 1,182 | 1,182 | 1,510 | ||||||
Individually evaluated | 0 | 0 | 1,165 | ||||||
Collectively evaluated | 217,020 | 217,020 | 213,024 | ||||||
Total | 217,020 | 217,020 | 214,189 | ||||||
Owner Occupied CRE | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | (104) | ||||||||
Commercial and Industrial | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Beginning balance | 4,165 | 3,224 | 2,460 | 2,979 | 2,979 | ||||
Provision for loan losses | 1,678 | (912) | |||||||
Charge-offs | 0 | ||||||||
Ending balance | 5,844 | $ 2,312 | 5,844 | 2,312 | 2,460 | ||||
Provision for loan losses | 1,291 | $ (667) | |||||||
Individually | 2,195 | 2,195 | |||||||
Collectively | 3,649 | 3,649 | 2,460 | ||||||
Individually evaluated | 10,030 | 10,030 | 10,762 | ||||||
Collectively evaluated | 329,369 | 329,369 | 351,029 | ||||||
Total | 339,399 | 339,399 | 361,791 | ||||||
Commercial and Industrial | Cumulative change in accounting principle | Accounting Standards Update 2016-13 | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Impact of ASU 2016-13 adoption(1) | $ 2,091 | ||||||||
Commercial and Industrial | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Recoveries | 1 | 2 | |||||||
Individually evaluated | 10,030 | 10,030 | |||||||
Loan Held for Investment | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Loans held for investment measured at fair value | $ 17,523 | $ 17,523 | |||||||
[1]Refer to Note 1 - Organization and Summary of Significant Accounting Policies for further information. |
LOANS AND THE ALLOWANCE FOR _10
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES - Recorded investment in company's loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | $ 2,495,582 | $ 2,495,582 | $ 2,469,413 | ||
Charge-offs | 13 | $ 95 | 30 | $ 192 | 300 |
2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 90,448 | 90,448 | |||
2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 993,455 | 993,455 | |||
2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 461,685 | 461,685 | |||
2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 284,560 | 284,560 | |||
2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 83,431 | 83,431 | |||
Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 171,957 | 171,957 | |||
Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 410,046 | 410,046 | |||
Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,431,775 | ||||
Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,185 | ||||
Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 12,132 | ||||
Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 23,321 | ||||
Cash, Securities, and Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 150,620 | 150,620 | 165,559 | ||
Charge-offs | 0 | ||||
Cash, Securities, and Other | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,252 | 2,252 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 12,232 | 12,232 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 22,220 | 22,220 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 5,712 | 5,712 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 6,405 | 6,405 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 13,269 | 13,269 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 88,530 | 88,530 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Cash, Securities, and Other | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 150,620 | 150,620 | 165,555 | ||
Cash, Securities, and Other | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,252 | 2,252 | |||
Cash, Securities, and Other | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 12,232 | 12,232 | |||
Cash, Securities, and Other | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 22,220 | 22,220 | |||
Cash, Securities, and Other | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 5,712 | 5,712 | |||
Cash, Securities, and Other | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 6,405 | 6,405 | |||
Cash, Securities, and Other | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 13,269 | 13,269 | |||
Cash, Securities, and Other | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 88,530 | 88,530 | |||
Cash, Securities, and Other | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | 4 | ||
Cash, Securities, and Other | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Cash, Securities, and Other | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 39,285 | 39,285 | 49,391 | ||
Charge-offs | 13 | $ 95 | 30 | $ 192 | |
Consumer and Other | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 102 | 102 | |||
Charge-offs | 0 | ||||
Consumer and Other | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 14,885 | 14,885 | |||
Charge-offs | 0 | ||||
Consumer and Other | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 4,235 | 4,235 | |||
Charge-offs | 0 | ||||
Consumer and Other | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 1,913 | 1,913 | |||
Charge-offs | 3 | ||||
Consumer and Other | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 1,205 | 1,205 | |||
Charge-offs | 25 | ||||
Consumer and Other | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 27 | 27 | |||
Charge-offs | 2 | ||||
Consumer and Other | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 16,918 | 16,918 | |||
Charge-offs | 0 | ||||
Consumer and Other | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Consumer and Other | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 21,762 | 21,762 | 26,070 | ||
Consumer and Other | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 102 | 102 | |||
Consumer and Other | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,164 | 2,164 | |||
Consumer and Other | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 676 | 676 | |||
Consumer and Other | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 800 | 800 | |||
Consumer and Other | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 1,075 | 1,075 | |||
Consumer and Other | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 27 | 27 | |||
Consumer and Other | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 16,918 | 16,918 | |||
Consumer and Other | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | 0 | ||
Consumer and Other | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 17,523 | 17,523 | 23,321 | ||
Consumer and Other | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 12,721 | 12,721 | |||
Consumer and Other | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 3,559 | 3,559 | |||
Consumer and Other | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 1,113 | 1,113 | |||
Consumer and Other | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 130 | 130 | |||
Consumer and Other | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Consumer and Other | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 310,382 | 310,382 | 285,627 | ||
Charge-offs | 0 | ||||
Construction and Development | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 8,625 | 8,625 | |||
Charge-offs | 0 | ||||
Construction and Development | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 231,454 | 231,454 | |||
Charge-offs | 0 | ||||
Construction and Development | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 46,347 | 46,347 | |||
Charge-offs | 0 | ||||
Construction and Development | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 19,620 | 19,620 | |||
Charge-offs | 0 | ||||
Construction and Development | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Construction and Development | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Construction and Development | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 4,336 | 4,336 | |||
Charge-offs | 0 | ||||
Construction and Development | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Construction and Development | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 310,382 | 310,382 | 285,426 | ||
Construction and Development | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 8,625 | 8,625 | |||
Construction and Development | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 231,454 | 231,454 | |||
Construction and Development | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 46,347 | 46,347 | |||
Construction and Development | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 19,620 | 19,620 | |||
Construction and Development | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 4,336 | 4,336 | |||
Construction and Development | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | 0 | ||
Construction and Development | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | 201 | ||
Construction and Development | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Construction and Development | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 880,600 | 880,600 | 899,722 | ||
Charge-offs | 0 | ||||
1-4 Family Residential | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 29,331 | 29,331 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 391,651 | 391,651 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 154,576 | 154,576 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 113,083 | 113,083 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 38,392 | 38,392 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 36,469 | 36,469 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 117,098 | 117,098 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
1-4 Family Residential | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 880,600 | 880,600 | 899,722 | ||
1-4 Family Residential | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 29,331 | 29,331 | |||
1-4 Family Residential | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 391,651 | 391,651 | |||
1-4 Family Residential | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 154,576 | 154,576 | |||
1-4 Family Residential | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 113,083 | 113,083 | |||
1-4 Family Residential | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 38,392 | 38,392 | |||
1-4 Family Residential | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 36,469 | 36,469 | |||
1-4 Family Residential | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 117,098 | 117,098 | |||
1-4 Family Residential | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | 0 | ||
1-4 Family Residential | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
1-4 Family Residential | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 558,276 | 558,276 | 493,134 | ||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 31,476 | 31,476 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 207,850 | 207,850 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 130,026 | 130,026 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 84,742 | 84,742 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 24,756 | 24,756 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 54,668 | 54,668 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 24,758 | 24,758 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Non-Owner Occupied CRE | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 553,213 | 553,213 | 493,134 | ||
Non-Owner Occupied CRE | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 31,476 | 31,476 | |||
Non-Owner Occupied CRE | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 207,850 | 207,850 | |||
Non-Owner Occupied CRE | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 130,026 | 130,026 | |||
Non-Owner Occupied CRE | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 79,679 | 79,679 | |||
Non-Owner Occupied CRE | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 24,756 | 24,756 | |||
Non-Owner Occupied CRE | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 54,668 | 54,668 | |||
Non-Owner Occupied CRE | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 24,758 | 24,758 | |||
Non-Owner Occupied CRE | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 5,063 | 5,063 | 0 | ||
Non-Owner Occupied CRE | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 5,063 | 5,063 | |||
Non-Owner Occupied CRE | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Non-Owner Occupied CRE | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 217,020 | 217,020 | 214,189 | ||
Charge-offs | 0 | ||||
Owner Occupied CRE | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 4,513 | 4,513 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 46,604 | 46,604 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 58,368 | 58,368 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 41,498 | 41,498 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 5,702 | 5,702 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 52,374 | 52,374 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 7,961 | 7,961 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Owner Occupied CRE | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 217,020 | 217,020 | 213,024 | ||
Owner Occupied CRE | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 4,513 | 4,513 | |||
Owner Occupied CRE | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 46,604 | 46,604 | |||
Owner Occupied CRE | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 58,368 | 58,368 | |||
Owner Occupied CRE | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 41,498 | 41,498 | |||
Owner Occupied CRE | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 5,702 | 5,702 | |||
Owner Occupied CRE | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 52,374 | 52,374 | |||
Owner Occupied CRE | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 7,961 | 7,961 | |||
Owner Occupied CRE | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | 1,165 | ||
Owner Occupied CRE | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Owner Occupied CRE | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 339,399 | 339,399 | 361,791 | ||
Charge-offs | 0 | ||||
Commercial and Industrial | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 14,149 | 14,149 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 88,779 | 88,779 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 45,913 | 45,913 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 17,992 | 17,992 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 6,971 | 6,971 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 15,150 | 15,150 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 150,445 | 150,445 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Charge-offs | 0 | ||||
Commercial and Industrial | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 326,441 | 326,441 | 348,844 | ||
Commercial and Industrial | Pass | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 14,149 | 14,149 | |||
Commercial and Industrial | Pass | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 80,825 | 80,825 | |||
Commercial and Industrial | Pass | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 45,913 | 45,913 | |||
Commercial and Industrial | Pass | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 15,064 | 15,064 | |||
Commercial and Industrial | Pass | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 6,971 | 6,971 | |||
Commercial and Industrial | Pass | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 14,060 | 14,060 | |||
Commercial and Industrial | Pass | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 149,459 | 149,459 | |||
Commercial and Industrial | Pass | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,928 | 2,928 | 2,185 | ||
Commercial and Industrial | Special Mention | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 2,928 | 2,928 | |||
Commercial and Industrial | Special Mention | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Special Mention | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 10,030 | 10,030 | $ 10,762 | ||
Commercial and Industrial | Substandard | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Substandard | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 7,954 | 7,954 | |||
Commercial and Industrial | Substandard | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Substandard | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Substandard | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Substandard | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 1,090 | 1,090 | |||
Commercial and Industrial | Substandard | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 986 | 986 | |||
Commercial and Industrial | Substandard | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | 2023 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | 2022 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | 2021 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | 2020 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | 2019 | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | Prior | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | Revolving Loans Amortized Cost Basis | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 0 | 0 | |||
Commercial and Industrial | Not Rated | Revolving Loans Converted to Term | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | $ 0 | $ 0 |
GOODWILL - Schedule of goodwill
GOODWILL - Schedule of goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance, beginning of year | $ 30,400 | $ 30,588 |
Acquisition activity | 0 | (188) |
Balance, end of period | $ 30,400 | $ 30,400 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Acquisition activity | $ 6,400 | ||||
Goodwill adjustments | $ (200) | ||||
Goodwill | $ 30,588 | $ 30,400 | $ 30,400 | $ 30,400 |
LEASES - Leases balance sheet l
LEASES - Leases balance sheet location (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating lease right-of-use assets | $ 9,033 | $ 8,602 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating lease liabilities | $ 11,323 | $ 11,163 |
Weighted-Average Remaining Lease Term | 4 years 8 months 19 days | 4 years 10 months 6 days |
Weighted-Average Discount Rate | 2.73% | 2.63% |
LEASES - Leases costs (Details)
LEASES - Leases costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 775 | $ 824 | $ 1,519 | $ 1,619 |
Variable lease cost | 480 | 528 | 973 | 1,086 |
Lease costs, net | $ 1,255 | $ 1,352 | $ 2,492 | $ 2,705 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net income available for common shareholders | Net income available for common shareholders | Net income available for common shareholders | Net income available for common shareholders |
LEASES - Lease maturity (Detail
LEASES - Lease maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
2023 | $ 1,718 | $ 1,718 | |||
2024 | 3,425 | 3,425 | |||
2025 | 2,493 | 2,493 | |||
2026 | 1,170 | 1,170 | |||
2027 | 1,104 | 1,104 | |||
Thereafter | 2,046 | 2,046 | |||
Total future minimum lease payments | 11,956 | 11,956 | |||
Less: imputed interest | (633) | (633) | |||
Present value of net future minimum lease payments | 11,323 | 11,323 | $ 11,163 | ||
Lease income | $ 100 | $ 100 | $ 200 | $ 200 |
LEASES - Expected amortization
LEASES - Expected amortization expense (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 200 |
2024 | 350 |
2025 | 143 |
2026 | 97 |
2027 | 43 |
Thereafter | 0 |
Total undiscounted operating lease income | $ 833 |
DEPOSITS - Schedule of interest
DEPOSITS - Schedule of interest-bearing deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Money market deposit accounts | $ 1,297,732 | $ 1,336,092 |
Time deposits | 376,147 | 224,090 |
Negotiable order of withdrawal accounts | 168,537 | 234,778 |
Savings accounts | 18,737 | 27,177 |
Total interest-bearing deposits | 1,861,153 | 1,822,137 |
Estimated aggregate time deposits of $250 or greater | 97,351 | 77,972 |
Overdrafts balances classified As loans | $ 100 | $ 200 |
DEPOSITS - Schedule of time dep
DEPOSITS - Schedule of time deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2023 | $ 171,068 | |
2024 | 159,574 | |
2025 | 7,342 | |
2026 | 900 | |
2027 | 2,536 | |
Thereafter | 34,727 | |
Total | $ 376,147 | $ 224,090 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) fund | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
BORROWINGS | ||||||
Debt securities pledged as collateral | $ 48,400 | $ 48,400 | $ 22,600 | |||
Borrowings from FHLB | 308,364 | $ 308,364 | 141,498 | |||
Number of unsecured federal funds lines of credit | fund | 2 | |||||
Subordinated Notes | ||||||
BORROWINGS | ||||||
Interest expenses | $ 700 | $ 300 | $ 1,300 | $ 700 | ||
PPPLF | ||||||
BORROWINGS | ||||||
Interest bearing rate (as a percent) | 35% | 35% | ||||
Advances from Federal Home Loan Banks | $ 4,200 | $ 4,200 | 5,400 | |||
PPPLF | Minimum | ||||||
BORROWINGS | ||||||
Debt term (in years) | 2 years | |||||
PPPLF | Maximum | ||||||
BORROWINGS | ||||||
Debt term (in years) | 5 years | |||||
Federal Funds Lines of Credit One | ||||||
BORROWINGS | ||||||
Maximum borrowing capacity | 10,000 | $ 10,000 | ||||
Amount outstanding | 0 | 0 | 0 | |||
Federal Funds Lines of Credit Two | ||||||
BORROWINGS | ||||||
Maximum borrowing capacity | 19,000 | 19,000 | ||||
Subordinated Notes 2026 | ||||||
BORROWINGS | ||||||
Carrying Value | $ 6,600 | |||||
Redemption percentage | 100% | |||||
Bank Technology Fund | ||||||
BORROWINGS | ||||||
Debt securities pledged as collateral | 47,300 | 47,300 | ||||
FHLB | ||||||
BORROWINGS | ||||||
Amount of collateral pledged | 1,320,000 | 1,320,000 | $ 1,260,000 | |||
Available balance | 646,800 | 646,800 | ||||
March 27, 2024 | ||||||
BORROWINGS | ||||||
Borrowings from FHLB | $ 31,000 | $ 31,000 | ||||
Interest bearing rate (as a percent) | 10% | 10% |
BORROWINGS - Schedule of borrow
BORROWINGS - Schedule of borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
BORROWINGS | ||
Borrowings from FHLB | $ 308,364 | $ 141,498 |
April 1, 2023 | ||
BORROWINGS | ||
Interest rate (as a percent) | 5.23% | |
Borrowings from FHLB | $ 227,367 | 131,498 |
May 5, 2023 | ||
BORROWINGS | ||
Interest rate (as a percent) | 0.76% | |
Borrowings from FHLB | $ 0 | 10,000 |
August 1, 2023 | ||
BORROWINGS | ||
Interest rate (as a percent) | 5.30% | |
Borrowings from FHLB | $ 50,000 | 0 |
March 27, 2024 | ||
BORROWINGS | ||
Borrowings from FHLB | $ 31,000 | |
Rate % | 4.78% | |
Borrowings from federal reserve bank | $ 30,997 | $ 0 |
BORROWINGS - Schedule of subord
BORROWINGS - Schedule of subordinated debt (Details) - Subordinated Notes | Jun. 30, 2023 USD ($) |
March 2020 | |
BORROWINGS | |
Carrying Value | $ 8,000,000 |
Initial Debt Issuance Costs | 120,000 |
Remaining Net Balance | $ 7,958,000 |
Interest bearing rate (as a percent) | 5.125% |
Debt Instrument, Basis Points | 0.0450 |
November 2020 | |
BORROWINGS | |
Carrying Value | $ 10,000,000 |
Initial Debt Issuance Costs | 162,000 |
Remaining Net Balance | $ 9,893,000 |
Interest bearing rate (as a percent) | 4.25% |
Debt Instrument, Basis Points | 0.0402 |
August 2021 | |
BORROWINGS | |
Carrying Value | $ 15,000,000 |
Initial Debt Issuance Costs | 242,000 |
Remaining Net Balance | $ 14,823,000 |
Interest bearing rate (as a percent) | 3.25% |
Debt Instrument, Basis Points | 0.0258 |
December 2022 | |
BORROWINGS | |
Carrying Value | $ 20,000,000 |
Initial Debt Issuance Costs | 506,000 |
Remaining Net Balance | $ 19,549,000 |
Interest bearing rate (as a percent) | 7% |
Debt Instrument, Basis Points | 0.0328 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of financial instruments with credit risk (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Unused lines of credit-Fixed | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | $ 155,475 | $ 211,285 |
Standby letters of credit-Fixed | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | 13,656 | 8,571 |
Commitments to make loans to sell-Fixed | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | 29,207 | 13,553 |
Commitments to make loans-Fixed | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | 15,592 | 20,895 |
Unused lines of credit-Variable | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | 633,104 | 601,202 |
Standby letters of credit-Variable | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | 14,189 | 16,737 |
Commitments to make loans-Variable | ||
COMMITMENTS AND CONTINGENCIES | ||
Other commitment | $ 9,348 | $ 81,663 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of unfunded loan commitments (Details) - Unfunded Loan Commitment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Unfunded Loan Commitments [Roll Forward] | ||
Beginning balance | $ 4,395 | $ 419 |
(Release) provision for credit losses | (366) | 129 |
Ending balance | 4,029 | 4,029 |
Impact of adopting ASU 2016-13 | ||
Unfunded Loan Commitments [Roll Forward] | ||
Beginning balance | $ 0 | $ 3,481 |
SHAREHOLDERS' EQUITY - Common s
SHAREHOLDERS' EQUITY - Common stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jan. 06, 2022 | |
Class of Stock [Line Items] | ||||
Common Stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Maximum offering price | $ 100 | |||
Recognized compensation expense | $ 0.2 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Class of Stock [Line Items] | ||||
Recognized compensation expense | $ 0.3 | |||
Shares Common Stock | ||||
Class of Stock [Line Items] | ||||
Common Stock, par value (in dollars per share) | $ 0 | $ 0 | ||
Number of votes per each share | one |
SHAREHOLDERS' EQUITY - Restrict
SHAREHOLDERS' EQUITY - Restricted stock awards (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 200,000 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued | 105,264 | |||
Value of awards | $ 3,000,000 | |||
Unrecognized compensation expense | $ 0 | |||
Recognized compensation expense | $ 100,000 | $ 200,000 | ||
Employee service period | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued | 52,632 | |||
Value of awards | $ 1,500,000 | |||
Vesting period (in years) | 5 years | |||
Performance of mortgage division | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued | 52,632 | |||
Value of awards | $ 1,500,000 |
SHAREHOLDERS' EQUITY - Stock ba
SHAREHOLDERS' EQUITY - Stock based compensation plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 200,000 | |||
Stock issued (in shares) | 37,507 | 53,461 | 43,871 | 61,686 |
Stock surrendered (in shares) | 14,913 | 21,345 | 16,801 | 25,634 |
Stock surrendered to cover employee withholding taxes | $ 700,000 | $ 800,000 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 0 | ||
Recognized compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Unrecognized stock-based compensation expense | $ 0 | $ 0 | ||
Options fully vested / exercisable at end of period (in shares) | 170,225 | 170,225 | ||
Exercise price low range (in USD per share) | $ 20 | |||
Exercise price high range (in USD per share) | $ 27 | |||
Expiry period (in years) | 10 years | |||
2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for issuance (in shares) | 255,276 | 255,276 |
SHAREHOLDERS' EQUITY - Stock op
SHAREHOLDERS' EQUITY - Stock options activity (Details) | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Aggregate Intrinsic Value | |
Options outstanding, aggregate intrinsic value | $ | |
Options exercisable, aggregate intrinsic value | $ | |
Stock options | |
Number of Options | |
Outstanding at beginning of year (in shares) | shares | 184,165 |
Exercised (in shares) | shares | (5,760) |
Forfeited or expired (in shares) | shares | (8,180) |
Outstanding at end of period (in shares) | shares | 170,225 |
Options fully vested / exercisable at end of period (in shares) | shares | 170,225 |
Weighted Average Exercise Price | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 22.76 |
Exercised (in dollars per share) | $ / shares | 20 |
Forfeited or expired (in dollars per share) | $ / shares | 20.31 |
Outstanding at end of year (in dollars per share) | $ / shares | 23.04 |
Options fully vested / exercisable (in dollars per share) | $ / shares | $ 23.04 |
Weighted Average Remaining Contractual Term | |
Outstanding at end of year (in years) | 1 year 8 months 12 days |
Options fully vested / exercisable (in years) | 1 year 8 months 12 days |
SHAREHOLDERS' EQUITY - Share aw
SHAREHOLDERS' EQUITY - Share awards (Details) | 6 Months Ended |
Jun. 30, 2023 shares | |
Time Vesting Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of year | 285,995 |
Granted (in shares) | 66,919 |
Vested (in shares) | (60,672) |
Forfeited (in shares) | (18,337) |
Outstanding at end of year | 273,905 |
Financial Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of year | 235,512 |
Granted (in shares) | 52,439 |
Vested (in shares) | 0 |
Forfeited (in shares) | (10,461) |
Outstanding at end of year | 277,490 |
Market Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of year | 0 |
Granted (in shares) | 0 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Outstanding at end of year | 0 |
SHAREHOLDERS' EQUITY - Time ves
SHAREHOLDERS' EQUITY - Time vesting units (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.2 | |||
Time Vesting Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0.4 | $ 0.4 | $ 0.8 | $ 0.9 |
Unrecognized compensation expense | $ 5.1 | $ 5.1 | ||
Unrecognized compensation expense recognition period (in years) | 2 years | |||
Granted (in shares) | 66,919 | |||
Service period (in years) | 5 years | |||
Installment payments (as a percent) | 20% |
SHAREHOLDERS' EQUITY - Financia
SHAREHOLDERS' EQUITY - Financial performance units (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 200 | |||
Financial Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Financial performance threshold percentage | 100% | |||
Granted (in shares) | 52,439 | |||
Financial Performance Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Financial performance threshold percentage | 0% | |||
Financial Performance Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Financial performance threshold percentage | 150% | |||
Financial Performance Units Granted From May 1, 2019 Through April 30, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 150% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 67,730 | 67,730 | ||
Unrecognized Compensation Expense | $ 110 | $ 110 | ||
Weighted-Average Life (in years) | 6 months | |||
Granted (in shares) | 0 | 0 | ||
Stock-based compensation expense | $ 31 | $ 29 | $ 83 | $ 90 |
Financial Performance Units Granted From May 01, 2020 Through December 31 2020, Excluding November 18, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 150% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 72,687 | 72,687 | ||
Unrecognized Compensation Expense | $ 329 | $ 329 | ||
Weighted-Average Life (in years) | 1 year 6 months | |||
Granted (in shares) | 0 | 0 | ||
Stock-based compensation expense | $ 38 | 29 | $ 86 | $ 82 |
Financial Performance Units Granted on November 18, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 114% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 23,943 | 23,943 | ||
Unrecognized Compensation Expense | $ 249 | $ 249 | ||
Weighted-Average Life (in years) | 1 year 4 months 24 days | |||
Remainder threshold awards | 50% | 50% | ||
Granted (in shares) | 0 | 0 | ||
Stock-based compensation expense | $ 21 | (2) | $ 40 | $ 28 |
Financial Performance Units Granted From May 3 2021 Through August 11,2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 97% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 33,798 | 33,798 | ||
Unrecognized Compensation Expense | $ 395 | $ 395 | ||
Weighted-Average Life (in years) | 2 years 6 months | |||
Granted (in shares) | 0 | 0 | ||
Stock-based compensation expense | $ (147) | 58 | $ (91) | $ 139 |
Financial Performance Units Granted On May 2, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 0% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 0 | 0 | ||
Unrecognized Compensation Expense | $ 0 | $ 0 | ||
Weighted-Average Life (in years) | 3 years 6 months | |||
Granted (in shares) | 322 | 64,629 | ||
Stock-based compensation expense | $ 0 | 58 | $ 0 | $ 58 |
Financial Performance Units Granted On August 4, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 33% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 9,090 | 9,090 | ||
Unrecognized Compensation Expense | $ 455 | $ 455 | ||
Weighted-Average Life (in years) | 3 years 6 months | |||
Granted (in shares) | 0 | 0 | ||
Stock-based compensation expense | $ (24) | 0 | $ 5 | $ 0 |
Financial Performance Units Granted On May 1, 2023 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Threshold Accrual | 0% | |||
Maximum Issuable Shares at Current Threshold (in shares) | 0 | 0 | ||
Unrecognized Compensation Expense | $ 0 | $ 0 | ||
Weighted-Average Life (in years) | 4 years 6 months | |||
Granted (in shares) | 52,117 | 0 | ||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
SHAREHOLDERS' EQUITY - Market p
SHAREHOLDERS' EQUITY - Market performance units (Details) | Jun. 30, 2022 USD ($) |
Market Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 0 |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income available for common shareholders | $ 1,506 | $ 4,482 | $ 5,326 | $ 10,006 |
Denominator: | ||||
Basic weighted average shares (in shares) | 9,532,397 | 9,450,987 | 9,518,135 | 9,434,742 |
Earnings per common share - basic (in dollars per share) | $ 0.16 | $ 0.47 | $ 0.56 | $ 1.06 |
Numerator: | ||||
Net income available for common shareholders | $ 1,506 | $ 4,482 | $ 5,326 | $ 10,006 |
Denominator: | ||||
Basic weighted average shares (in shares) | 9,532,397 | 9,450,987 | 9,518,135 | 9,434,742 |
Total diluted effect of common stock equivalents | ||||
Total diluted effect of common stock equivalents (in shares) | 154,004 | 266,680 | 191,483 | 310,169 |
Diluted weighted average shares (in shares) | 9,686,401 | 9,717,667 | 9,709,618 | 9,744,911 |
Earnings per common share - diluted (in dollars per share) | $ 0.16 | $ 0.46 | $ 0.55 | $ 1.03 |
Stock options | ||||
Total diluted effect of common stock equivalents | ||||
Diluted effect of common stock equivalents (in shares) | 0 | 52,870 | 8,012 | 55,005 |
Time Vesting Units | ||||
Total diluted effect of common stock equivalents | ||||
Diluted effect of common stock equivalents (in shares) | 70,151 | 122,090 | 97,689 | 155,813 |
Financial Performance Units | ||||
Total diluted effect of common stock equivalents | ||||
Diluted effect of common stock equivalents (in shares) | 83,853 | 91,720 | 85,782 | 92,524 |
Market Performance Units | ||||
Total diluted effect of common stock equivalents | ||||
Diluted effect of common stock equivalents (in shares) | 0 | 0 | 0 | 6,827 |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of potentially dilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
EARNINGS PER COMMON SHARE | ||||
Total potentially dilutive securities (in shares) | 392,637 | 121,942 | 118,903 | 60,971 |
Stock options | ||||
EARNINGS PER COMMON SHARE | ||||
Total potentially dilutive securities (in shares) | 170,225 | 0 | 63,299 | 0 |
Time Vesting Units | ||||
EARNINGS PER COMMON SHARE | ||||
Total potentially dilutive securities (in shares) | 213,322 | 121,942 | 53,331 | 60,971 |
Financial Performance Units | ||||
EARNINGS PER COMMON SHARE | ||||
Total potentially dilutive securities (in shares) | 9,090 | 0 | 2,273 | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 529 | $ 1,494 | $ 1,870 | $ 3,286 |
Effective income tax rate | 26% | 25% | 26% | 24.70% |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Summary of related party loan activity | |||
Balance, beginning of year | $ 16,859 | $ 12,833 | $ 12,833 |
Funded loans | 5,690 | 15,079 | |
Payments collected | (3,513) | (11,053) | |
Balance, end of period | 19,036 | 16,859 | |
Deposits from related parties | 17,300 | $ 36,900 | |
Board Member | |||
Summary of related party loan activity | |||
Rental expense | $ 100 | $ 100 |
FAIR VALUE - Summary of assets
FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Mortgage loans held for sale, at fair value | $ 19,746 | $ 8,839 |
IRLC, net | 729 | |
Loans held for sale | 0 | 1,965 |
Financial Liabilities | ||
Forward commitments and FSC | 45 | |
Fair Value, Recurring | ||
Financial Assets | ||
Mortgage loans held for sale, at fair value | 19,746 | 8,839 |
Loans held at fair value | 17,523 | 23,321 |
Equity securities | 749 | 749 |
Guarantee asset | 166 | 143 |
Equity warrants | 825 | 825 |
Swap derivative asset | 729 | |
Loans held for sale | 1,965 | |
Financial Liabilities | ||
Swap derivative liabilities | 45 | |
Fair Value, Recurring | IRLC, net | ||
Financial Assets | ||
IRLC, net | 453 | 229 |
Fair Value, Recurring | Forward commitments and FSC | ||
Financial Liabilities | ||
Forward commitments and FSC | 233 | 46 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets | ||
Mortgage loans held for sale, at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | ||
Financial Assets | ||
Mortgage loans held for sale, at fair value | 0 | |
Loans held at fair value | 0 | 0 |
Equity securities | 627 | 627 |
Guarantee asset | 0 | 0 |
Equity warrants | 0 | 0 |
Swap derivative asset | 0 | |
Loans held for sale | 1,965 | |
Financial Liabilities | ||
Swap derivative liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | IRLC, net | ||
Financial Assets | ||
IRLC, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Recurring | Forward commitments and FSC | ||
Financial Liabilities | ||
Forward commitments and FSC | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial Assets | ||
Equity securities | 122 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | ||
Financial Assets | ||
Mortgage loans held for sale, at fair value | 19,746 | 8,839 |
Loans held at fair value | 0 | 0 |
Equity securities | 122 | |
Guarantee asset | 0 | 0 |
Equity warrants | 0 | 0 |
Swap derivative asset | 729 | |
Loans held for sale | 0 | |
Financial Liabilities | ||
Swap derivative liabilities | 45 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | IRLC, net | ||
Financial Assets | ||
IRLC, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Recurring | Forward commitments and FSC | ||
Financial Liabilities | ||
Forward commitments and FSC | 233 | 46 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets | ||
Mortgage loans held for sale, at fair value | 0 | |
Equity securities | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | ||
Financial Assets | ||
Mortgage loans held for sale, at fair value | 0 | |
Loans held at fair value | 17,523 | 23,321 |
Equity securities | 0 | |
Guarantee asset | 166 | 143 |
Equity warrants | 825 | 825 |
Swap derivative asset | 0 | |
Loans held for sale | 0 | |
Financial Liabilities | ||
Swap derivative liabilities | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | IRLC, net | ||
Financial Assets | ||
IRLC, net | 453 | 229 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Forward commitments and FSC | ||
Financial Liabilities | ||
Forward commitments and FSC | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Summary of assets measured on a recurring and nonrecurring basis | |||||
Transfer of loans held for investment to loans held for sale | $ 39,200,000 | $ 2,000,000 | |||
Value of loans sold | $ 41,200,000 | 41,200,000 | |||
90 days or more past due, fair value and still accruing | $ 0 | $ 0 | $ 0 | ||
Number of Loans, Non-accruals, fair value | loan | 126 | 126 | 145 | ||
Fair Value Carrying Amount | $ 200,000 | $ 200,000 | $ 100,000 | ||
Net charge-offs on loans accounted for under the fair value option | 600,000 | 1,000,000 | |||
Other real estate owned, gross | 0 | 0 | 0 | ||
Charge-offs | 13,000 | $ 95,000 | 30,000 | $ 192,000 | 300,000 |
Significant Unobservable Inputs (Level 3) | |||||
Summary of assets measured on a recurring and nonrecurring basis | |||||
OREO carrying amount | 400,000 | ||||
recorded investment | $ 8,900,000 | 8,900,000 | |||
Provision for loan losses, specific reserves | $ 2,200,000 | $ 0 |
FAIR VALUE - Summary of informa
FAIR VALUE - Summary of information about the fair value carrying amount and unpaid principal outstanding of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Total Loans | ||
Fair Value Carrying Amount | $ 37,269 | $ 34,125 |
Unpaid Principal Balance | 37,803 | 34,149 |
Difference | (534) | (24) |
Non Accruals | ||
Fair Value Carrying Amount | 148 | 139 |
Unpaid Principal Balance | 157 | 140 |
Difference | (9) | (1) |
90 Days or More Past Due | ||
Fair Value Carrying Amount | 148 | 139 |
Unpaid Principal Balance | 157 | 140 |
Difference | (9) | (1) |
Mortgage loans held for sale | ||
Total Loans | ||
Fair Value Carrying Amount | 19,746 | 8,839 |
Unpaid Principal Balance | 19,529 | 8,750 |
Difference | 217 | 89 |
Loans held for sale | ||
Total Loans | ||
Fair Value Carrying Amount | 1,965 | |
Unpaid Principal Balance | 1,984 | |
Difference | (19) | |
Loans held for investment | ||
Total Loans | ||
Fair Value Carrying Amount | 17,523 | 23,321 |
Unpaid Principal Balance | 18,274 | 23,415 |
Difference | (751) | (94) |
Non Accruals | ||
Fair Value Carrying Amount | 148 | 139 |
Unpaid Principal Balance | 157 | 140 |
Difference | (9) | (1) |
90 Days or More Past Due | ||
Fair Value Carrying Amount | 148 | 139 |
Unpaid Principal Balance | 157 | 140 |
Difference | $ (9) | $ (1) |
FAIR VALUE - Summary of changes
FAIR VALUE - Summary of changes in fair value of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in fair value of loans | $ (447) | $ (758) | $ (549) | $ (91) |
Mortgage loans held for sale | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in fair value of loans | 60 | (1,086) | 128 | (419) |
Loans held for sale | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in fair value of loans | 0 | 0 | (20) | 0 |
Loans held for investment | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in fair value of loans | $ (507) | $ 328 | $ (657) | $ 328 |
FAIR VALUE - Rollforward of cha
FAIR VALUE - Rollforward of changes in fair value of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Mortgage loans held for sale | ||||
Guarantee asset | ||||
Balance at beginning of period | $ 9,873 | $ 33,663 | $ 8,839 | $ 30,620 |
Loans transferred from held for investment | 97,117 | 279,412 | 151,189 | 470,494 |
Fair value changes | 59 | (1,086) | 128 | (419) |
Sales | (87,303) | (285,777) | (140,403) | (474,443) |
Settlements | 0 | (10) | (7) | (50) |
Balance at end of period | 19,746 | 26,202 | 19,746 | 26,202 |
Loans held for sale | ||||
Guarantee asset | ||||
Balance at beginning of period | 0 | 0 | 1,965 | 0 |
Loans transferred from held for investment | 0 | 0 | 39,221 | 0 |
Fair value changes | 0 | 0 | (20) | 0 |
Sales | 0 | 0 | (40,761) | 0 |
Settlements | 0 | 0 | (405) | 0 |
Balance at end of period | 0 | 0 | 0 | 0 |
Loan Held for Investment | ||||
Guarantee asset | ||||
Balance at beginning of period | 20,807 | 6,380 | 23,321 | 0 |
Fair value changes | (507) | 328 | (657) | 328 |
Settlements | (2,160) | (3,100) | (5,294) | (3,100) |
Loans acquired | 0 | 17,869 | 1,162 | 24,249 |
Net charge-offs | (617) | 0 | (1,009) | 0 |
Balance at end of period | $ 17,523 | $ 21,477 | $ 17,523 | $ 21,477 |
FAIR VALUE - Summary of asset_2
FAIR VALUE - Summary of assets measured at fair value on nonrecurring basis (Details) - Fair Value, Nonrecurring - Commercial and Industrial $ in Thousands | Jun. 30, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Net recorded investment | $ 6,744 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Net recorded investment | 0 |
Significant Other Observable Inputs (Level 2) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Net recorded investment | 0 |
Significant Unobservable Inputs (Level 3) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Net recorded investment | $ 6,744 |
FAIR VALUE - Summary of asset_3
FAIR VALUE - Summary of assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Guarantee asset | ||||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net income available for common shareholders | Net income available for common shareholders | Net income available for common shareholders | Net income available for common shareholders |
Corporate bonds | ||||
Guarantee asset | ||||
Transfer to held-to-maturity | $ (6,215) | $ (6,215) | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Corporate bonds | ||||
Guarantee asset | ||||
Balance at beginning of period | $ 0 | 6,215 | $ 0 | 2,113 |
Loans acquired | 4,000 | |||
Balance at end of period | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Loans Held at Fair Value | ||||
Guarantee asset | ||||
Balance at beginning of period | 20,807 | 6,380 | 23,321 | |
Loans acquired | 17,869 | 1,162 | 24,249 | |
Gains/(losses) in net income, net | (507) | 328 | (657) | 328 |
Settlements | (2,777) | (3,100) | (6,303) | (3,100) |
Balance at end of period | 17,523 | 21,477 | 17,523 | 21,477 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Forward commitments and FSC | ||||
Guarantee asset | ||||
Balance at beginning of period | 0 | (9) | ||
Loans acquired | 0 | 9 | ||
Balance at end of period | 0 | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Guarantee Asset | ||||
Guarantee asset | ||||
Balance at beginning of period | 235 | 206 | 143 | 237 |
Loans transferred from held for investment | 9 | 14 | ||
Gains/(losses) in net income, net | (78) | (32) | 9 | (63) |
Balance at end of period | 166 | 174 | 166 | 174 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | IRLC, net | ||||
Guarantee asset | ||||
Balance at beginning of period | 723 | 990 | 229 | 1,473 |
Loans acquired | 454 | 1,083 | 1,340 | 2,697 |
Loans transferred from held for investment | 692 | 2,063 | 2,178 | 3,417 |
Gains/(losses) in net income, net | (32) | 826 | 1,062 | 83 |
Balance at end of period | 453 | 836 | 453 | 836 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Equity Warrants | ||||
Guarantee asset | ||||
Balance at beginning of period | 825 | 402 | 825 | 160 |
Loans acquired | 242 | |||
Gains/(losses) in net income, net | 323 | 323 | ||
Balance at end of period | $ 825 | $ 725 | $ 825 | $ 725 |
FAIR VALUE - Summary of asset_4
FAIR VALUE - Summary of assets measured at level 3 fair value on recurring basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Other real estate owned, gross | $ 0 | $ 0 | $ 0 | |||||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net income available for common shareholders | Net income available for common shareholders | Net income available for common shareholders | Net income available for common shareholders | ||||
Corporate bonds | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Transfer to held-to-maturity | $ (6,215,000) | $ (6,215,000) | ||||||
Significant Unobservable Inputs (Level 3) | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
recorded investment | $ 8,900,000 | $ 8,900,000 | ||||||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Corporate bonds | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | 0 | 0 | $ 0 | 0 | $ 6,215,000 | $ 2,113,000 |
Loans acquired | 4,000,000 | |||||||
Unrealized gains, net | 102,000 | |||||||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Loans Held at Fair Value | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Settlements | (2,777,000) | (3,100,000) | (6,303,000) | (3,100,000) | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 17,523,000 | 21,477,000 | 17,523,000 | 21,477,000 | 20,807,000 | 23,321,000 | 6,380,000 | |
Loans acquired | 17,869,000 | 1,162,000 | 24,249,000 | |||||
Gains/(losses) in net income, net | (507,000) | 328,000 | (657,000) | 328,000 | ||||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Forward commitments and FSC | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | 0 | 0 | 0 | (9,000) | ||
Loans acquired | 0 | 9,000 | ||||||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Guarantee Asset | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 166,000 | 174,000 | 166,000 | 174,000 | 235,000 | 143,000 | 206,000 | 237,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | (9,000) | (14,000) | ||||||
Gains/(losses) in net income, net | (78,000) | (32,000) | 9,000 | (63,000) | ||||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | IRLC, net | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 453,000 | 836,000 | 453,000 | 836,000 | 723,000 | 229,000 | 990,000 | 1,473,000 |
Loans acquired | 454,000 | 1,083,000 | 1,340,000 | 2,697,000 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | (692,000) | (2,063,000) | (2,178,000) | (3,417,000) | ||||
Gains/(losses) in net income, net | (32,000) | 826,000 | 1,062,000 | 83,000 | ||||
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Equity Warrants | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 825,000 | 725,000 | 825,000 | 725,000 | $ 825,000 | $ 825,000 | $ 402,000 | $ 160,000 |
Loans acquired | 242,000 | |||||||
Gains/(losses) in net income, net | $ 323,000 | $ 323,000 | ||||||
Commercial | Fair Value, Nonrecurring | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Net recorded investment | 6,744,000 | 6,744,000 | ||||||
Commercial | Significant Unobservable Inputs (Level 3) | Fair Value, Nonrecurring | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Net recorded investment | 6,744,000 | 6,744,000 | ||||||
Commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Nonrecurring | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Net recorded investment | 0 | 0 | ||||||
Commercial | Significant Other Observable Inputs (Level 2) | Fair Value, Nonrecurring | ||||||||
Summary of assets measured on a recurring and nonrecurring basis | ||||||||
Net recorded investment | $ 0 | $ 0 |
FAIR VALUE - Summary of asset_5
FAIR VALUE - Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | $ 729 | |
Fair Value, Recurring | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held at fair value, Fair value | 17,523 | $ 23,321 |
Guarantee asset, Fair Value | 166 | 143 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held at fair value, Fair value | 0 | 0 |
Guarantee asset, Fair Value | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held at fair value, Fair value | 0 | 0 |
Guarantee asset, Fair Value | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held at fair value, Fair value | 17,523 | 23,321 |
Guarantee asset, Fair Value | 166 | $ 143 |
Fair Value, Recurring | Corporate bonds | Minimum | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held for investment at fair value, measurement input | 4% | |
Fair Value, Recurring | Corporate bonds | Maximum | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held for investment at fair value, measurement input | (18.00%) | |
Fair Value, Recurring | Corporate bonds | Weighted Average | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held for investment at fair value, measurement input | (8.00%) | |
Fair Value, Recurring | Loans Held at Fair Value | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held at fair value, Fair value | $ 17,523 | $ 23,321 |
Fair Value, Recurring | Loans Held at Fair Value | Minimum | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held for investment at fair value, measurement input | 8% | |
Fair Value, Recurring | Loans Held at Fair Value | Maximum | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held for investment at fair value, measurement input | 9% | |
Fair Value, Recurring | Loans Held at Fair Value | Weighted Average | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Loans held for investment at fair value, measurement input | (8.00%) | |
Fair Value, Recurring | Guarantee Asset | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Guarantee assets, measurement input | 5% | 5% |
Fair Value, Recurring | Guarantee Asset | Prepayment Rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Guarantee asset, Fair Value | $ 166 | $ 143 |
Guarantee assets, measurement input | 5% | 4% |
Fair Value, Recurring | Guarantee Asset | Weighted Average | Discount rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Guarantee assets, measurement input | (5.00%) | 5% |
Fair Value, Recurring | Guarantee Asset | Weighted Average | Prepayment Rate | Significant Unobservable Inputs (Level 3) | Discounted cash flow | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Guarantee assets, measurement input | (5.00%) | 4% |
Fair Value, Recurring | IRLC, net | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | $ 453 | $ 229 |
Fair Value, Recurring | IRLC, net | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | 0 | 0 |
Fair Value, Recurring | IRLC, net | Significant Other Observable Inputs (Level 2) | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | 0 | 0 |
Fair Value, Recurring | IRLC, net | Significant Unobservable Inputs (Level 3) | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | 453 | 229 |
Fair Value, Recurring | IRLC, net | Pull through | Significant Unobservable Inputs (Level 3) | Best execution model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | $ 453 | $ 229 |
Fair Value, Recurring | IRLC, net | Minimum | Pull through | Significant Unobservable Inputs (Level 3) | Best execution model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | 0.54 | 0.73 |
Fair Value, Recurring | IRLC, net | Maximum | Pull through | Significant Unobservable Inputs (Level 3) | Best execution model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | 1 | 1 |
Fair Value, Recurring | IRLC, net | Weighted Average | Pull through | Significant Unobservable Inputs (Level 3) | Best execution model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | (0.90) | 0.91 |
Fair Value, Recurring | Equity Warrants | Volatility | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | $ 825 | |
Fair Value, Recurring | Equity Warrants | Risk-free interest rate | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
IRLC, net | $ 825 | |
Fair Value, Recurring | Equity Warrants | Minimum | Volatility | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | 0.327 | 0.327 |
Fair Value, Recurring | Equity Warrants | Minimum | Risk-free interest rate | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | 0.0459 | 0.0404 |
Fair Value, Recurring | Equity Warrants | Minimum | Remaining life | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets, period (in years) | 0 years | 0 years |
Fair Value, Recurring | Equity Warrants | Maximum | Volatility | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | 0.889 | 0.889 |
Fair Value, Recurring | Equity Warrants | Maximum | Risk-free interest rate | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | 0.0414 | |
Fair Value, Recurring | Equity Warrants | Maximum | Remaining life | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets, period (in years) | 3 years | 4 years |
Fair Value, Recurring | Equity Warrants | Weighted Average | Volatility | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | (0.436) | 0.348 |
Fair Value, Recurring | Equity Warrants | Weighted Average | Risk-free interest rate | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Derivative assets | (0.0459) | 0.0405 |
Fair Value, Nonrecurring | Commercial and Industrial | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans | $ 6,744 | |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and Industrial | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans | 0 | |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Commercial and Industrial | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans | 0 | |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans | 6,744 | |
Fair Value, Nonrecurring | Commission and Cost to Sell | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans | 6,575 | |
Fair Value, Nonrecurring | Loss given default | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans | $ 169 | |
Fair Value, Nonrecurring | Minimum | Loss given default | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans, measurement input | 35% | |
Fair Value, Nonrecurring | Maximum | Commission and Cost to Sell | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans, measurement input | 44% | |
Fair Value, Nonrecurring | Maximum | Loss given default | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans, measurement input | 61% | |
Fair Value, Nonrecurring | Weighted Average | Commission and Cost to Sell | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans, measurement input | (27.00%) | |
Fair Value, Nonrecurring | Weighted Average | Loss given default | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Appraisal value | ||
Summary of assets measured on a recurring and nonrecurring basis | ||
Impaired loans, measurement input | (50.00%) |
FAIR VALUE - Summary of carryin
FAIR VALUE - Summary of carrying amounts and estimated fair values for financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||||
Cash and cash equivalents | $ 297,568 | $ 196,512 | $ 171,606 | $ 386,983 |
Held-to-maturity securities, net of ACL | 69,551 | 74,718 | ||
Total | 2,495,582 | 2,469,413 | ||
Accrued interest receivable | 11,135 | 10,445 | ||
Liabilities: | ||||
Deposits | 2,375,394 | 2,405,229 | ||
FHLB borrowings – fixed rate | 312,600 | 146,886 | ||
Subordinated notes | 52,223 | 52,132 | ||
Accrued interest payable | 1,788 | 1,125 | ||
Carrying Amount | ||||
Assets: | ||||
Cash and cash equivalents | 297,568 | 196,512 | ||
Held-to-maturity securities, net of ACL | 77,469 | 81,056 | ||
Total | 2,456,015 | 2,428,909 | ||
Accrued interest receivable | 11,135 | 10,445 | ||
Liabilities: | ||||
Deposits | 2,375,394 | 2,405,229 | ||
FHLB borrowings – fixed rate | 308,364 | 141,498 | ||
Federal Reserve borrowings – fixed rate | 4,236 | 5,388 | ||
Accrued interest payable | 1,788 | 1,125 | ||
Subordinated Notes | Carrying Amount | ||||
Liabilities: | ||||
Subordinated notes | 52,223 | 52,132 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 297,568 | 196,512 | ||
Held-to-maturity securities, net of ACL | 237 | 234 | ||
Accrued interest receivable | 11,135 | 10,445 | ||
Liabilities: | ||||
Deposits | 1,999,248 | 2,181,139 | ||
Federal Reserve borrowings – fixed rate | 4,236 | 5,388 | ||
Accrued interest payable | 1,788 | 1,125 | ||
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Held-to-maturity securities, net of ACL | 61,516 | 67,433 | ||
Accrued interest receivable | 0 | 0 | ||
Liabilities: | ||||
FHLB borrowings – fixed rate | 308,316 | 141,867 | ||
Federal Reserve borrowings – fixed rate | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Held-to-maturity securities, net of ACL | 7,798 | 7,051 | ||
Total | 2,370,315 | 2,356,085 | ||
Accrued interest receivable | 0 | 0 | ||
Liabilities: | ||||
Deposits | 392,455 | 228,868 | ||
Accrued interest payable | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Subordinated Notes | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Subordinated notes | $ 55,794 | $ 60,384 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest income | $ 100 | $ 200 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 18,991 | 18,991 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 50,000 | 50,000 |
Interest Rate Swap | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 18,991 | $ 18,991 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivatives by Balance Sheet Location (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Fair Value | |
IRLC, net | $ 729 |
Total included in other liabilities | 45 |
Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount | 50,000 |
Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount | 0 |
Fair Value | |
Total included in other liabilities | 0 |
Designated as Hedging Instrument | Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount | 50,000 |
Fair Value | |
IRLC, net | 684 |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount | 18,991 |
Fair Value | |
Total included in other liabilities | 45 |
Not Designated as Hedging Instrument | Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount | 18,991 |
Fair Value | |
IRLC, net | $ 45 |
DERIVATIVES - Derivative Reclas
DERIVATIVES - Derivative Reclassified into Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrealized Gain (Loss) Recorded in OCI on Derivative | $ 952 | $ 0 | $ 684 | $ 0 |
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrealized Gain (Loss) Recorded in OCI on Derivative | 787 | 519 | ||
Interest Rate Swap | Designated as Hedging Instrument | Other non-interest income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Unrealized Gain (Loss) Recorded in OCI on Derivative | 0 | 0 | ||
Amount of Gain (Loss) Reclassified from OCI into Income | $ 0 | $ 0 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Income Statement | ||||||||
Total interest income | $ 36,372 | $ 21,873 | $ 71,084 | $ 41,750 | ||||
Total interest expense | 17,937 | 1,493 | 33,076 | 2,874 | ||||
Provision for credit losses | 1,843 | 519 | [1] | 1,533 | 729 | [1] | ||
Net interest income, after provision for credit losses | 16,592 | 19,861 | 36,475 | 38,147 | ||||
Non-interest income | 3,962 | 6,698 | 9,768 | 15,086 | ||||
Total income before non-interest expense | 20,554 | 26,559 | 46,243 | 53,233 | ||||
Depreciation and amortization expense | 589 | 534 | 1,183 | 1,094 | ||||
All other non-interest expense | 17,930 | 20,049 | 37,864 | 38,847 | ||||
Income before income taxes | 2,035 | 5,976 | 7,196 | 13,292 | ||||
Segment reporting | ||||||||
Goodwill | 30,400 | 30,400 | 30,400 | 30,400 | $ 30,400 | $ 30,588 | ||
Total assets | 3,005,646 | 2,541,493 | 3,005,646 | 2,541,493 | $ 2,866,748 | |||
Wealth Management | ||||||||
Income Statement | ||||||||
Total interest income | 36,142 | 21,644 | 70,742 | 41,331 | ||||
Total interest expense | 17,937 | 1,493 | 33,076 | 2,874 | ||||
Provision for credit losses | 1,843 | 519 | 1,533 | 729 | ||||
Net interest income, after provision for credit losses | 16,362 | 19,632 | 36,133 | 37,728 | ||||
Non-interest income | 3,167 | 5,649 | 7,940 | 11,710 | ||||
Total income before non-interest expense | 19,529 | 25,281 | 44,073 | 49,438 | ||||
Depreciation and amortization expense | 580 | 523 | 1,166 | 1,070 | ||||
All other non-interest expense | 16,520 | 17,834 | 34,723 | 34,431 | ||||
Income before income taxes | 2,429 | 6,924 | 8,184 | 13,937 | ||||
Segment reporting | ||||||||
Goodwill | 30,400 | 30,400 | 30,400 | 30,400 | ||||
Total assets | 2,983,814 | 2,513,170 | 2,983,814 | 2,513,170 | ||||
Mortgage | ||||||||
Income Statement | ||||||||
Total interest income | 230 | 229 | 342 | 419 | ||||
Net interest income, after provision for credit losses | 230 | 229 | 342 | 419 | ||||
Non-interest income | 795 | 1,049 | 1,828 | 3,376 | ||||
Total income before non-interest expense | 1,025 | 1,278 | 2,170 | 3,795 | ||||
Depreciation and amortization expense | 9 | 11 | 17 | 24 | ||||
All other non-interest expense | 1,410 | 2,215 | 3,141 | 4,416 | ||||
Income before income taxes | (394) | (948) | (988) | (645) | ||||
Segment reporting | ||||||||
Total assets | $ 21,832 | $ 28,323 | $ 21,832 | $ 28,323 | ||||
[1]Provision for credit loss amounts for periods prior to the ASC 326 adoption date of January 1, 2023 are reported in accordance with previously applicable GAAP. |
LOW-INCOME HOUSING TAX CREDIT_2
LOW-INCOME HOUSING TAX CREDIT INVESTMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 26, 2023 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | ||||||
Unfunded commitments | $ 6,000,000 | $ 6,000,000 | $ 0 | |||
Tax credits and other benefits | 100,000 | $ 100,000 | 200,000 | $ 200,000 | ||
Impairment losses | 0 | 0 | 0 | 0 | ||
Income Tax Expense (Benefit). | ||||||
Schedule of Investments [Line Items] | ||||||
Amortization expense | 100,000 | $ 100,000 | 200,000 | $ 200,000 | ||
Other Assets | ||||||
Schedule of Investments [Line Items] | ||||||
Investment balance | $ 2,300,000 | $ 2,300,000 | $ 3,000,000 | $ 2,400,000 |
REGULATORY CAPITAL MATTERS (Det
REGULATORY CAPITAL MATTERS (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
REGULATORY CAPITAL MATTERS | ||
Capital injection | $ 6,000 | |
Capital conservation buffer | 2.50% | |
Common Equity Tier 1 capital ratio including capital conservation buffer (as a percent) | 7% | |
Number of conditions or events to be performed | item | 0 | |
Tier 1 capital to risk-weighted assets | ||
Actual Amount | $ 217,170 | $ 212,229 |
Actual Ratio (as a percent) | 0.0926 | 0.0928 |
Required for Capital Adequacy Purposes Ratio (as a percent) | 0.085 | |
Common Equity Tier 1 (CET 1) to risk-weighted assets | ||
Actual Amount | $ 217,170 | $ 212,229 |
Actual Ratio (as a percent) | 9.26% | 9.28% |
Total capital to risk-weighted assets | ||
Actual Amount | $ 291,119 | $ 282,889 |
Actual Ratio (as a percent) | 0.1241 | 0.1237 |
Required for Capital Adequacy Purposes Ratio (as a percent) | 0.105 | |
Tier 1 capital to average assets | ||
Actual Amount | $ 217,170 | $ 212,229 |
Actual Ratio (as a percent) | 0.0780 | 0.0781 |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Actual Amount | $ 242,040 | $ 234,738 |
Actual Ratio (as a percent) | 0.1034 | 0.1029 |
Required for Capital Adequacy Purposes Amount | $ 140,484 | $ 136,928 |
Required for Capital Adequacy Purposes Ratio (as a percent) | 0.060 | 0.060 |
To be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 187,312 | $ 182,571 |
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent) | 0.080 | 0.080 |
Common Equity Tier 1 (CET 1) to risk-weighted assets | ||
Actual Amount | $ 242,040 | $ 234,738 |
Actual Ratio (as a percent) | 10.34% | 10.29% |
Required for Capital Adequacy Purposes Amount | $ 105,363 | $ 102,696 |
Required for Capital Adequacy Purposes Ratio (as a percent) | 4.50% | 4.50% |
To be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 152,191 | $ 148,339 |
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent) | 6.50% | 6.50% |
Total capital to risk-weighted assets | ||
Actual Amount | $ 262,989 | $ 252,398 |
Actual Ratio (as a percent) | 0.1123 | 0.1106 |
Required for Capital Adequacy Purposes Amount | $ 187,312 | $ 182,571 |
Required for Capital Adequacy Purposes Ratio (as a percent) | 0.080 | 0.080 |
To be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 234,140 | $ 228,213 |
To be Well Capitalized Under Prompt Corrective Action Regulations Ratio (as a percent) | 0.100 | 0.100 |
Tier 1 capital to average assets | ||
Actual Amount | $ 242,040 | $ 234,738 |
Actual Ratio (as a percent) | 0.0870 | 0.0865 |
Required for Capital Adequacy Purposes Amount | $ 111,300 | $ 108,506 |
Required for Capital Adequacy Purposes Ratio (as a percent) | 0.040 | 0.040 |
To be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 139,125 | $ 135,633 |
Banking Regulation, Tier One Leverage Capital Ratio, Well Capitalized, Minimum | 0.050 | 0.050 |