Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35968 | |
Entity Registrant Name | MIDWESTONE FINANCIAL GROUP, INC. | |
Entity Incorporation, State or Country Code | IA | |
Entity Tax Identification Number | 42-1206172 | |
Entity Address, Address Line One | 102 South Clinton Street | |
Entity Address, City or Town | Iowa City | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 52240 | |
City Area Code | 319 | |
Local Phone Number | 356-5800 | |
Title of 12(b) Security | Common stock, $1.00 par value | |
Trading Symbol | MOFG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,675,325 | |
Entity Central Index Key | 0001412665 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 63,945 | $ 83,990 |
Interest earning deposits in banks | 5,273 | 2,445 |
Total cash and cash equivalents | 69,218 | 86,435 |
Debt securities available for sale at fair value | 954,074 | 1,153,547 |
Held to maturity securities at amortized cost | 1,117,709 | 1,129,421 |
Total securities | 2,071,783 | 2,282,968 |
Loans held for sale | 2,553 | 612 |
Gross loans held for investment | 3,932,900 | 3,854,791 |
Unearned income, net | (13,535) | (14,267) |
Loans held for investment, net of unearned income | 3,919,365 | 3,840,524 |
Allowance for credit losses | (49,800) | (49,200) |
Total loans held for investment, net | 3,869,565 | 3,791,324 |
Premises and equipment, net | 86,208 | 87,125 |
Goodwill | 62,477 | 62,477 |
Other intangible assets, net | 28,563 | 30,315 |
Foreclosed assets, net | 0 | 103 |
Other assets | 219,585 | 236,517 |
Total assets | 6,409,952 | 6,577,876 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Noninterest bearing deposits | 989,469 | 1,053,450 |
Interest bearing deposits | 4,565,684 | 4,415,492 |
Total deposits | 5,555,153 | 5,468,942 |
Short-term borrowings | 143,981 | 391,873 |
Long-term debt | 137,981 | 139,210 |
Other liabilities | 72,187 | 85,058 |
Total liabilities | 5,909,302 | 6,085,083 |
Shareholders' equity | ||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | 0 | 0 |
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,675,325 and 15,623,977 | 16,581 | 16,581 |
Additional paid-in capital | 300,966 | 302,085 |
Retained earnings | 286,767 | 289,289 |
Treasury stock at cost, 905,692 and 957,040 shares | (24,779) | (26,115) |
Accumulated other comprehensive loss | (78,885) | (89,047) |
Total shareholders' equity | 500,650 | 492,793 |
Total liabilities and shareholders' equity | $ 6,409,952 | $ 6,577,876 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 16,581,017 | 16,581,017 |
Common stock, shares outstanding (in shares) | 15,675,325 | 15,623,977 |
Treasury stock (in shares) | 905,692 | 957,040 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income | ||
Loans, including fees | $ 46,490 | $ 31,318 |
Taxable investment securities | 10,444 | 8,123 |
Tax-exempt investment securities | 2,127 | 2,383 |
Other | 244 | 28 |
Total interest income | 59,305 | 41,852 |
Interest expense | ||
Deposits | 15,319 | 2,910 |
Short-term borrowings | 1,786 | 119 |
Long-term debt | 2,124 | 1,487 |
Total interest expense | 19,229 | 4,516 |
Net interest income | 40,076 | 37,336 |
Credit loss expense | 933 | 0 |
Net interest income after credit loss expense | 39,143 | 37,336 |
Noninterest (loss) income | ||
Investment services and trust activities | 2,933 | 3,011 |
Service charges and fees | 2,008 | 1,657 |
Card revenue | 1,748 | 1,650 |
Loan revenue | 1,420 | 4,293 |
Bank-owned life insurance | 602 | 531 |
Investment securities (losses) gains, net | (13,170) | 40 |
Other | 413 | 462 |
Total noninterest (loss) income | (4,046) | 11,644 |
Noninterest expense | ||
Compensation and employee benefits | 19,607 | 18,664 |
Occupancy expense of premises, net | 2,746 | 2,779 |
Equipment | 2,171 | 1,901 |
Legal and professional | 1,736 | 2,353 |
Data processing | 1,363 | 1,231 |
Marketing | 986 | 1,029 |
Amortization of intangibles | 1,752 | 1,227 |
FDIC insurance | 749 | 420 |
Communications | 261 | 272 |
Foreclosed assets, net | (28) | (112) |
Other | 1,976 | 1,879 |
Total noninterest expense | 33,319 | 31,643 |
Income before income tax expense | 1,778 | 17,337 |
Income tax expense | 381 | 3,442 |
Net income | $ 1,397 | $ 13,895 |
Per common share information | ||
Earnings - basic (in dollars per share) | $ 0.09 | $ 0.89 |
Earnings - diluted (in dollars per share) | 0.09 | 0.88 |
Dividends paid (in dollars per share) | $ 0.2425 | $ 0.2375 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,397 | $ 13,895 |
Unrealized gain (loss) from available for sale debt securities: | ||
Unrealized net holding loss on debt securities available for sale arising during the period | (285) | (46,221) |
Reclassification adjustment for losses (gains) included in net income | 13,170 | (40) |
Income tax (expense) benefit | (3,260) | 12,074 |
Unrealized net gain (loss) on available for sale debt securities, net of reclassification adjustments | 9,625 | (34,187) |
Reclassification of available for sale debt securities to held to maturity: | ||
Amortization of the net unrealized loss from the reclassification of available for sale debt securities to held to maturity | 581 | 1,402 |
Income tax expense | (147) | (366) |
Amortization of net unrealized loss from the reclassification of available for sale debt securities to held to maturity, net | 434 | 1,036 |
Unrealized net holding gains in cash flow hedging instruments arising during the period | 138 | 0 |
Income tax expense | (35) | 0 |
Unrealized net gains on cash flow hedge instruments, net of reclassification adjustment | 103 | 0 |
Other comprehensive income (loss), net of tax | 10,162 | (33,151) |
Comprehensive income (loss) | $ 11,559 | $ (19,256) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2021 | $ 527,475 | $ 16,581 | $ 300,940 | $ 243,365 | $ (24,546) | $ (8,865) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,895 | 13,895 | ||||
Other comprehensive income (loss) | (33,151) | (33,151) | ||||
Release/lapse of restriction on RSUs | (237) | (995) | (31) | 789 | ||
Repurchase of common stock | (356) | (356) | ||||
Share-based compensation | 560 | 560 | ||||
Dividends paid on common stock | (3,729) | (3,729) | ||||
Ending balance at Mar. 31, 2022 | 504,457 | 16,581 | 300,505 | 253,500 | (24,113) | (42,016) |
Beginning balance at Dec. 31, 2022 | 492,793 | 16,581 | 302,085 | 289,289 | (26,115) | (89,047) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,397 | 1,397 | ||||
Other comprehensive income (loss) | 10,162 | 10,162 | ||||
Release/lapse of restriction on RSUs | (549) | (1,767) | (118) | 1,336 | ||
Share-based compensation | 648 | 648 | ||||
Dividends paid on common stock | (3,801) | (3,801) | ||||
Ending balance at Mar. 31, 2023 | $ 500,650 | $ 16,581 | $ 300,966 | $ 286,767 | $ (24,779) | $ (78,885) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Release/lapse of restriction on RSUs (in shares) | 51,348 | 30,478 |
Repurchase of common stock (in shares) | 11,500 | |
Dividends paid on common stock (in dollars per share) | $ 0.2425 | $ 0.2375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities: | ||
Net income | $ 1,397 | $ 13,895 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Credit loss expense | 933 | 0 |
Depreciation, amortization, and accretion | 2,891 | 2,469 |
Net change in premises and equipment due to writedown or sale | (19) | 410 |
Share-based compensation | 648 | 560 |
Net loss (gain) on sale or call of debt securities available for sale | 13,170 | (40) |
Net change in foreclosed assets due to writedown or sale | (31) | (112) |
Net gain on sale of loans held for sale | (75) | (817) |
Origination of loans held for sale | (9,976) | (32,564) |
Proceeds from sales of loans held for sale | 8,110 | 43,232 |
Increase in cash surrender value of bank-owned life insurance | (602) | (531) |
(Increase) decrease in deferred income taxes, net | (410) | 1,441 |
Change in: | ||
Other assets | 14,434 | (7,514) |
Other liabilities | (12,871) | 5,747 |
Net cash provided by operating activities | 17,599 | 26,176 |
Investing Activities: | ||
Proceeds from sales of debt securities available for sale | 218,667 | 0 |
Proceeds from maturities and calls of debt securities available for sale | 34,746 | 45,174 |
Purchases of debt securities available for sale | (54,690) | (198,857) |
Proceeds from maturities and calls of debt securities held to maturity | 11,798 | 49,839 |
Net increase in loans held for investment | (77,890) | (9,239) |
Purchases of premises and equipment | (404) | (938) |
Proceeds from sale of foreclosed assets | 134 | 196 |
Proceeds from sale of premises and equipment | 183 | 8 |
Net cash provided by (used in) investing activities | 132,544 | (113,817) |
Financing Activities: | ||
Deposits | 86,175 | (36,825) |
Short-term borrowings | (247,892) | (175) |
Payments on finance lease liability | (43) | (39) |
Payments of Federal Home Loan Bank borrowings | 0 | (15,000) |
Payments of other long-term debt | (1,250) | 0 |
Taxes paid relating to the release/lapse of restriction on RSUs | (549) | (236) |
Dividends paid | (3,801) | (3,729) |
Repurchase of common stock | 0 | (356) |
Net cash used in financing activities | (167,360) | (56,360) |
Net change in cash and cash equivalents | (17,217) | (144,001) |
Cash and cash equivalents at beginning of period | 86,435 | 203,830 |
Cash and cash equivalents at end of period | 69,218 | 59,829 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 16,599 | 5,466 |
Supplemental schedule of non-cash investing and financing activities: | ||
Transfer of loans held for investment to loans held for sale | 0 | 3,400 |
Investment securities purchased but not settled | 0 | 6,509 |
Transfer of premises and equipment to assets held for sale | 0 | 628 |
Transfer of debt securities available for sale to debt securities held to maturity | $ 0 | $ 1,253,179 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of Business MidWest One Financial Group, Inc. (the "Company"), an Iowa corporation formed in 1983, is a bank holding company under the BHCA and a financial holding company under the GLBA. Our principal executive offices are located at 102 South Clinton Street, Iowa City, Iowa 52240. The Company owns all of the outstanding common stock of MidWest One Bank, an Iowa state non-member bank chartered in 1934 with its main office in Iowa City, Iowa. We operate primarily through MidWest One Bank, our bank subsidiary. On June 9, 2022, the Company acquired Iowa First Bancshares Corp., a bank holding company whose wholly-owned banking subsidiaries were First National Bank of Muscatine and First National Bank in Fairfield, community banks located in Muscatine and Fairfield, Iowa, respectively. Immediately following the completion of the acquisition, First National Bank of Muscatine and First National Bank in Fairfield were merged with and into the Bank. As consideration for the merger, we paid cash in the amount of $46.7 million. Basis of Presentation The accompanying interim condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three months ended March 31, 2023 may not be indicative of results for the year ending December 31, 2023, or for any other period. All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023. Segment Reporting The Company’s activities are considered to be one reportable segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking and trust and investment management services with operations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments. Effect of New Financial Accounting Standards Accounting Guidance Pending Adoption at March 31, 2023 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. Certain optional expedients and exceptions for contract modifications and hedging relationships were amended in ASU 2021-01, Reference Rate Reform (Topic 848): Scope Refinement , issued on January 7, 2021. In addition, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which time entities will no longer be permitted to apply the relief in Topic 848. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements. Accounting Guidance Adopted at March 31, 2023 On March 31, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. For creditors that have adopted the CECL accounting guidance within ASU 2016-13, the amendments eliminate the accounting guidance for TDRs within ASC 310-40, while also enhancing the disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. In addition, public business entities must also disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. The amendments are effective for fiscal years beginning after December 15, 2022 and should be applied prospectively, with an option to apply a modified retrospective transition approach for the recognition and measurement of TDRs. The adoption of ASU 2022-02 was applied prospectively and did not have a material impact on the Company's consolidated financial statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations On June 9, 2022, the Company acquired 100% of the equity of IOFB through a merger and acquired its wholly-owned subsidiaries FNBM and FNBF for cash consideration of $46.7 million. The primary reasons for the acquisition were to enter the Muscatine, Iowa market and increase our presence in Fairfield, Iowa. Immediately following the completion of the acquisition, FNBM and FNBF were merged with and into the Bank. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of the June 9, 2022 acquisition date net of any applicable tax effects using a methodology similar to the Company's legacy assets and liabilities (refer to Note 14. Fair Value of Financial Instruments and Fair Value Measurements for additional information regarding the fair value methodology). The bargain purchase gain, which is recorded in 'Other' noninterest income, was generated as a result of the estimated fair value of identifiable net assets acquired exceeding the merger consideration. Bargain purchase gains are recorded net of deferred taxes and are treated as permanent differences, resulting in lower effective tax rate in the period recorded. The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. (in thousands) June 9, 2022 Merger consideration Cash consideration $ 46,672 Identifiable net assets acquired, at fair value Assets acquired Cash and due from banks $ 10,192 Interest earning deposits in banks 67,855 Debt securities 119,820 Loans held for investment 281,326 Premises and equipment 7,363 Core deposit intangible 16,500 Other assets 14,140 Total assets acquired 517,196 Liabilities assumed Deposits $ (463,638) Other liabilities (3,117) Total liabilities assumed (466,755) Identifiable net assets acquired, at fair value 50,441 Bargain Purchase Gain $ 3,769 Of the $281.3 million net loans acquired, $11.0 million exhibited credit deterioration on the date of purchase. The following table provides a summary of these PCD loans at acquisition: (in thousands) June 9, 2022 Par value of PCD loans acquired $ 15,396 PCD ACL at acquisition (3,371) Non-credit discount on PCD loans (1,005) Purchase price of PCD loans $ 11,020 The following table summarizes the IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated: Three Months Ended March 31, (in thousands) 2023 2022 Noninterest Expense Compensation and employee benefits $ 70 $ — Equipment — 5 Legal and professional — 63 Data processing 65 38 Marketing — 7 Communications — 1 Other 1 14 Total acquisition-related expenses $ 136 $ 128 |
Debt Securities
Debt Securities | 3 Months Ended |
Mar. 31, 2023 | |
Debt Securities [Abstract] | |
Debt Securities | Debt Securities On January 1, 2022, the Company transferred, at fair value, $1.25 billion of mortgage-backed securities, collateralized mortgage obligations, and securities issued by state and political subdivisions from the available for sale classification to the held to maturity classification. The net unrealized after tax loss of $11.5 million associated with those re-classified securities remained in accumulated other comprehensive loss and will be amortized over the remaining life of the securities. At March 31, 2023, there was $8.2 million of net unrealized after tax loss remaining in accumulated other comprehensive loss. No gains or losses were recognized in earnings at the time of the transfer. The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities for the periods indicated. As of March 31, 2023 (in thousands) Amortized Cost (1) Gross Gross Allowance for Credit Loss related to Debt Securities Fair Value Available for Sale State and political subdivisions $ 196,497 $ 24 $ 11,940 $ — $ 184,581 Mortgage-backed securities 5,851 5 177 — 5,679 Collateralized loan obligations 54,224 — 150 — 54,074 Collateralized mortgage obligations 168,135 — 23,469 — 144,666 Corporate debt securities 624,673 22 59,621 — 565,074 Total available for sale debt securities $ 1,049,380 $ 51 $ 95,357 $ — $ 954,074 Held to Maturity State and political subdivisions $ 538,182 $ — $ 71,250 $ — $ 466,932 Mortgage-backed securities 79,597 — 11,772 — 67,825 Collateralized mortgage obligations 499,930 — 96,152 — 403,778 Total held to maturity debt securities $ 1,117,709 $ — $ 179,174 $ — $ 938,535 (1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $10 thousand of unamortized losses in mortgage-backed securities and $11.4 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022. As of December 31, 2022 (in thousands) Amortized Gross Gross Allowance for Credit Loss related to Debt Securities Fair Value Available for Sale U.S. Government agencies and corporations $ 7,598 $ — $ 253 $ — $ 7,345 State and political subdivisions 303,573 27 18,244 — 285,356 Mortgage-backed securities 6,165 11 232 — 5,944 Collateralized mortgage obligations 172,568 — 25,375 — 147,193 Corporate debt securities 771,836 125 64,252 — 707,709 Total available for sale debt securities $ 1,261,740 $ 163 $ 108,356 $ — $ 1,153,547 Held to Maturity State and political subdivisions $ 538,746 $ — $ 88,349 $ — $ 450,397 Mortgage-backed securities 81,032 — 12,851 — 68,181 Collateralized mortgage obligations 509,643 — 103,327 — 406,316 Total held to maturity debt securities $ 1,129,421 $ — $ 204,527 $ — $ 924,894 Investment securities with a fair value of $1.19 billion and $690.2 million at March 31, 2023 and December 31, 2022, respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law. Accrued interest receivable on available for sale debt securities and held to maturity debt securities is recorded within 'Other Assets,' and is excluded from the estimate of credit losses. At March 31, 2023 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $6.8 million and $3.6 million, respectively. At December 31, 2022 the accrued interest receivable on available for sale debt securities totaled $7.6 million and $3.7 million. The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023, aggregated by investment category and length of time in a continuous loss position: As of March 31, 2023 Number of Securities Less than 12 Months 12 Months or More Total Available for Sale Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 187 $ 58,853 $ 2,606 $ 111,956 $ 9,334 $ 170,809 $ 11,940 Mortgage-backed securities 25 969 26 4,269 151 5,238 177 Collateralized loan obligations 2 9,708 150 — — 9,708 150 Collateralized mortgage obligations 20 37,129 2,313 107,537 21,156 144,666 23,469 Corporate debt securities 152 133,706 5,121 424,397 54,500 558,103 59,621 Total 386 $ 240,365 $ 10,216 $ 648,159 $ 85,141 $ 888,524 $ 95,357 As of March 31, 2023, 187 state and political subdivisions securities with total unrealized losses of $11.9 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings and payment history. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses. As of March 31, 2023, 25 mortgage-backed securities, and 20 collateralized mortgage obligations with unrealized losses totaling $23.6 million were held by the Company. Management evaluated the payment history of these securities. In addition, management considered the implied U.S. government guarantee of these agency securities and the level of credit enhancement for non-agency securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses. As of March 31, 2023, 2 collateralized loan obligations with unrealized losses of $0.2 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings, priority of cash flows and the amount of over-collateralization. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses. As of March 31, 2023, 152 corporate debt securities with total unrealized losses of $59.6 million were held by the Company. Management evaluated these securities by considering credit agency ratings and payment history. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses. The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded at December 31, 2022, aggregated by investment category and length of time in a continuous loss position: As of December 31, 2022 Available for Sale Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Government agencies and corporations 8 $ 7,345 $ 253 $ — $ — $ 7,345 $ 253 State and political subdivisions 380 248,339 14,553 20,631 3,691 268,970 18,244 Mortgage-backed securities 27 5,323 231 45 1 5,368 232 Collateralized mortgage obligations 20 75,041 7,121 72,152 18,254 147,193 25,375 Corporate debt securities 159 369,441 21,679 288,329 42,573 657,770 64,252 Total 594 $ 705,489 $ 43,837 $ 381,157 $ 64,519 $ 1,086,646 $ 108,356 The Company evaluates debt securities held to maturity for current expected credit losses. There were no debt securities held to maturity classified as nonaccrual or past due as of March 31, 2023. Held-to-maturity securities are evaluated on a quarterly basis using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of credit loss expense. Based on this evaluation, management concluded that no allowance for credit loss for these securities was required. Proceeds and gross realized gains and losses on debt securities available for sale for the three months ended March 31, 2023 and 2022, were as follows: Three Months Ended (in thousands) March 31, 2023 March 31, 2022 Proceeds from sales of debt securities available for sale $ 218,667 $ — Gross realized gains from sales of debt securities available for sale — — Gross realized losses from sales of debt securities available for sale (13,170) — Net realized gain from sales of debt securities available for sale (1) $ (13,170) $ — (1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized gain from the call or maturity of debt securities of $0 for the three months ended March 31, 2023 and $40 thousand for the three months ended March 31, 2022. The contractual maturity distribution of investment debt securities at March 31, 2023, is shown below. Expected maturities of MBS, CLO and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary. Available for Sale Held to Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 49,536 $ 49,128 $ 4,390 $ 4,375 Due after one year through five years 563,764 516,820 116,601 105,326 Due after five years through ten years 176,129 155,873 207,827 180,227 Due after ten years 31,741 27,834 209,364 177,004 $ 821,170 $ 749,655 $ 538,182 $ 466,932 Mortgage-backed securities 5,851 5,679 79,597 67,825 Collateralized loan obligations 54,224 54,074 — — Collateralized mortgage obligations 168,135 144,666 499,930 403,778 Total $ 1,049,380 $ 954,074 $ 1,117,709 $ 938,535 |
Loans Receivable and the Allowa
Loans Receivable and the Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans Receivable and the Allowance for Credit Losses | Loans Receivable and the Allowance for Credit Losses The composition of loans by class of receivable was as follows: As of (in thousands) March 31, 2023 December 31, 2022 Agricultural $ 106,641 $ 115,320 Commercial and industrial 1,080,514 1,055,162 Commercial real estate: Construction & development 320,924 270,991 Farmland 182,528 183,913 Multifamily 255,065 252,129 Commercial real estate-other 1,290,454 1,272,985 Total commercial real estate 2,048,971 1,980,018 Residential real estate: One- to four- family first liens 448,459 451,210 One- to four- family junior liens 162,403 163,218 Total residential real estate 610,862 614,428 Consumer 72,377 75,596 Loans held for investment, net of unearned income 3,919,365 3,840,524 Allowance for credit losses (49,800) (49,200) Total loans held for investment, net $ 3,869,565 $ 3,791,324 Loans with unpaid principal in the amount of $1.24 billion and $1.01 billion at March 31, 2023 and December 31, 2022, respectively, were pledged to the FHLB as collateral for borrowings. Non-accrual and Delinquent Status Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more for all loan types, except owner occupied residential real estate, which are moved to non-accrual at 120 days or more past due, unless the loan is both well secured with marketable collateral and in the process of collection. All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual. A non-accrual loan may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. The following table presents the amortized cost basis of loans based on delinquency status: Age Analysis of Past-Due Financial Assets 90 Days or More Past Due And Accruing (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total March 31, 2023 Agricultural $ 105,506 $ 851 $ — $ 284 $ 106,641 $ — Commercial and industrial 1,078,687 627 378 822 1,080,514 — Commercial real estate: Construction and development 320,924 — — — 320,924 — Farmland 180,721 31 — 1,776 182,528 — Multifamily 255,065 — — — 255,065 — Commercial real estate-other 1,289,988 — 48 418 1,290,454 — Total commercial real estate 2,046,698 31 48 2,194 2,048,971 — Residential real estate: One- to four- family first liens 444,724 3,124 156 455 448,459 2 One- to four- family junior liens 161,357 120 30 896 162,403 — Total residential real estate 606,081 3,244 186 1,351 610,862 2 Consumer 72,235 125 10 7 72,377 — Total $ 3,909,207 $ 4,878 $ 622 $ 4,658 $ 3,919,365 $ 2 Age Analysis of Past-Due Financial Assets 90 Days or More Past Due And Accruing (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total December 31, 2022 Agricultural $ 114,922 $ 100 $ — $ 298 $ 115,320 $ — Commercial and industrial 1,052,406 922 111 1,723 1,055,162 — Commercial real estate: Construction and development 270,905 86 — — 270,991 — Farmland 182,115 729 — 1,069 183,913 — Multifamily 252,129 — — — 252,129 — Commercial real estate-other 1,266,874 5,574 45 492 1,272,985 — Total commercial real estate 1,972,023 6,389 45 1,561 1,980,018 — Residential real estate: One- to four- family first liens 446,066 3,177 954 1,013 451,210 565 One- to four- family junior liens 161,989 301 78 850 163,218 — Total residential real estate 608,055 3,478 1,032 1,863 614,428 565 Consumer 75,443 110 17 26 75,596 — Total $ 3,822,849 $ 10,999 $ 1,205 $ 5,471 $ 3,840,524 $ 565 The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan: Nonaccrual Nonaccrual with no Allowance for Credit Losses 90 Days or More Past Due And Accruing (in thousands) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Agricultural $ 307 $ 377 $ 224 $ 281 $ — $ — Commercial and industrial 2,192 2,728 483 1,049 — — Commercial real estate: Construction and development — — — — — — Farmland 1,931 2,278 1,776 1,997 — — Multifamily — — — — — — Commercial real estate-other 6,191 6,397 4,121 5,647 — — Total commercial real estate 8,122 8,675 5,897 7,644 — — Residential real estate: One- to four- family first liens 2,536 2,275 910 928 2 565 One- to four- family junior liens 1,258 1,165 — — — — Total residential real estate 3,794 3,440 910 928 2 565 Consumer 25 36 — — — — Total $ 14,440 $ 15,256 $ 7,514 $ 9,902 $ 2 $ 565 The interest income recognized on loans that were on nonaccrual for the three months ended March 31, 2023 and March 31, 2022 was $56 thousand and $70 thousand, respectively. Credit Quality Information The Company aggregates loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, and other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis includes non-homogenous loans, such as agricultural, commercial and industrial, commercial real estate and non-owner occupied residential real estate loans. Loans not meeting the criteria described below that are analyzed individually are considered to be pass-rated. The Company uses the following definitions for risk ratings: Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful 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. Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Homogenous loans, including owner occupied residential real estate and consumer loans, are not individually risk rated. Instead, these loans are categorized based on performance: performing and nonperforming. Nonperforming loans include those loans on nonaccrual and loans greater than 90 days past due and on accrual. The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator, and vintage, in addition to the current period gross write-offs by class of receivable and vintage, based on the most recent analysis performed, as of March 31, 2023. As of March 31, 2023, there were no 'loss' rated credits. Term Loans by Origination Year Revolving Loans March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Total Agricultural Pass $ 7,088 $ 15,551 $ 11,339 $ 4,533 $ 1,598 $ 1,417 $ 56,139 $ 97,665 Special mention / watch 6 224 859 208 8 534 3,412 5,251 Substandard 1,918 114 193 258 3 294 945 3,725 Doubtful — — — — — — — — Total $ 9,012 $ 15,889 $ 12,391 $ 4,999 $ 1,609 $ 2,245 $ 60,496 $ 106,641 Commercial and industrial Pass $ 37,423 $ 253,594 $ 224,460 $ 142,132 $ 44,485 $ 134,002 $ 184,382 $ 1,020,478 Special mention / watch 465 1,788 1,544 4,770 418 4,988 14,638 28,611 Substandard 621 2,966 2,617 1,474 768 18,058 4,921 31,425 Doubtful — — — — — — — — Total $ 38,509 $ 258,348 $ 228,621 $ 148,376 $ 45,671 $ 157,048 $ 203,941 $ 1,080,514 CRE - Construction and development Pass $ 22,423 $ 167,846 $ 80,378 $ 20,349 $ 968 $ 1,534 $ 26,621 $ 320,119 Special mention / watch — 38 493 — — — — 531 Substandard — 270 — — — 4 — 274 Doubtful — — — — — — — — Total $ 22,423 $ 168,154 $ 80,871 $ 20,349 $ 968 $ 1,538 $ 26,621 $ 320,924 CRE - Farmland Pass $ 7,159 $ 53,083 $ 51,868 $ 26,650 $ 6,847 $ 19,184 $ 2,169 $ 166,960 Special mention / watch — 2,807 2,295 1,453 — 1,782 401 8,738 Substandard — 148 1,670 1,201 1,143 2,668 — 6,830 Doubtful — — — — — — — — Total $ 7,159 $ 56,038 $ 55,833 $ 29,304 $ 7,990 $ 23,634 $ 2,570 $ 182,528 CRE - Multifamily Pass $ 7,369 $ 31,621 $ 89,877 $ 84,000 $ 16,991 $ 7,644 $ 150 $ 237,652 Special mention / watch — 794 — 1,552 — 7,048 — 9,394 Substandard — — 7,687 332 — — — 8,019 Doubtful — — — — — — — — Total $ 7,369 $ 32,415 $ 97,564 $ 85,884 $ 16,991 $ 14,692 $ 150 $ 255,065 CRE - Other Pass $ 62,285 $ 323,167 $ 304,661 $ 276,595 $ 82,956 $ 112,999 $ 51,359 $ 1,214,022 Special mention / watch 1,228 1,556 2,106 17,769 4,344 3,390 4,200 34,593 Substandard — 631 1,342 15,342 13,106 11,418 — 41,839 Doubtful — — — — — — — — Total $ 63,513 $ 325,354 $ 308,109 $ 309,706 $ 100,406 $ 127,807 $ 55,559 $ 1,290,454 RRE - One- to four- family first liens Pass / Performing $ 14,958 $ 133,357 $ 101,064 $ 61,623 $ 22,345 $ 93,970 $ 10,811 $ 438,128 Special mention / watch — 702 465 726 1,973 1,091 — 4,957 Substandard / Nonperforming — 257 527 172 172 4,246 — 5,374 Doubtful — — — — — — — — Total $ 14,958 $ 134,316 $ 102,056 $ 62,521 $ 24,490 $ 99,307 $ 10,811 $ 448,459 Term Loans by Origination Year Revolving Loans March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Total RRE - One- to four- family junior liens Performing $ 5,366 $ 35,258 $ 21,775 $ 8,553 $ 2,712 $ 9,338 $ 78,144 $ 161,146 Nonperforming — 24 23 29 149 933 99 1,257 Total $ 5,366 $ 35,282 $ 21,798 $ 8,582 $ 2,861 $ 10,271 $ 78,243 $ 162,403 Consumer Performing $ 6,868 $ 27,975 $ 16,296 $ 6,940 $ 2,894 $ 7,226 $ 4,153 $ 72,352 Nonperforming — — 5 6 8 6 — 25 Total $ 6,868 $ 27,975 $ 16,301 $ 6,946 $ 2,902 $ 7,232 $ 4,153 $ 72,377 Total by Credit Quality Indicator Category Pass $ 158,705 $ 978,219 $ 863,647 $ 615,882 $ 176,190 $ 370,750 $ 331,631 $ 3,495,024 Special mention / watch 1,699 7,909 7,762 26,478 6,743 18,833 22,651 92,075 Substandard 2,539 4,386 14,036 18,779 15,192 36,688 5,866 97,486 Doubtful — — — — — — — — Performing 12,234 63,233 38,071 15,493 5,606 16,564 82,297 233,498 Nonperforming — 24 28 35 157 939 99 1,282 Total $ 175,177 $ 1,053,771 $ 923,544 $ 676,667 $ 203,888 $ 443,774 $ 442,544 $ 3,919,365 Current Period Gross Write-offs Agricultural $ — $ — $ 1 $ — $ — $ — $ — $ 1 Commercial and industrial — — — 105 171 44 — 320 CRE - Construction and development — — — — — — — — CRE - Farmland — — — — — — — — CRE - Multifamily — — — — — — — — CRE - Other — — — — — 18 — 18 RRE - One-to-four-family first liens — — — — — — — — RRE - One-to-four-family junior liens — — — — — — — — Consumer — 142 — — 4 2 — 148 Total Current Period Gross Write-offs $ — $ 142 $ 1 $ 105 $ 175 $ 64 $ — $ 487 The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2022. As of December 31, 2022, there were no 'loss' rated credits. Term Loans by Origination Year Revolving Loans December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 Prior Total Agricultural Pass $ 20,279 $ 12,511 $ 5,398 $ 2,883 $ 939 $ 1,063 $ 65,395 $ 108,468 Special mention / watch 143 1,012 115 36 — 604 1,655 3,565 Substandard 48 646 366 4 7 302 1,914 3,287 Doubtful — — — — — — — — Total $ 20,470 $ 14,169 $ 5,879 $ 2,923 $ 946 $ 1,969 $ 68,964 $ 115,320 Commercial and industrial Pass $ 262,500 $ 232,263 $ 151,567 $ 48,199 $ 27,680 $ 115,877 $ 163,205 $ 1,001,291 Special mention / watch 3,975 3,574 5,465 592 3,299 1,864 12,299 31,068 Substandard 556 166 1,172 756 556 18,585 1,012 22,803 Doubtful — — — — — — — — Total $ 267,031 $ 236,003 $ 158,204 $ 49,547 $ 31,535 $ 136,326 $ 176,516 $ 1,055,162 CRE - Construction and development Pass $ 144,597 $ 73,832 $ 19,324 $ 989 $ 1,058 $ 549 $ 28,069 $ 268,418 Special mention / watch 1,787 499 — — — — — 2,286 Substandard 281 — — — — 6 — 287 Doubtful — — — — — — — — Total $ 146,665 $ 74,331 $ 19,324 $ 989 $ 1,058 $ 555 $ 28,069 $ 270,991 CRE - Farmland Pass $ 55,251 $ 52,802 $ 28,744 $ 7,266 $ 8,406 $ 12,895 $ 1,946 $ 167,310 Special mention / watch 3,058 2,229 1,470 — 225 21 1,693 8,696 Substandard 148 1,974 1,192 1,136 1,459 1,998 — 7,907 Doubtful — — — — — — — — Total $ 58,457 $ 57,005 $ 31,406 $ 8,402 $ 10,090 $ 14,914 $ 3,639 $ 183,913 CRE - Multifamily Pass $ 31,018 $ 93,907 $ 84,573 $ 17,137 $ 2,549 $ 5,161 $ 49 $ 234,394 Special mention / watch 1,000 — 1,567 — 5,931 1,178 — 9,676 Substandard — 7,725 334 — — — — 8,059 Doubtful — — — — — — — — Total $ 32,018 $ 101,632 $ 86,474 $ 17,137 $ 8,480 $ 6,339 $ 49 $ 252,129 CRE - Other Pass $ 322,753 $ 314,376 $ 296,368 $ 79,408 $ 31,041 $ 81,708 $ 51,064 $ 1,176,718 Special mention / watch 8,858 3,399 13,245 10,365 1,137 8,122 2,518 47,644 Substandard 752 589 19,702 13,294 10,197 4,089 — 48,623 Doubtful — — — — — — — — Total $ 332,363 $ 318,364 $ 329,315 $ 103,067 $ 42,375 $ 93,919 $ 53,582 $ 1,272,985 RRE - One- to four- family first liens Pass / Performing $ 139,289 $ 103,534 $ 63,627 $ 23,831 $ 21,868 $ 77,967 $ 11,438 $ 441,554 Special mention / watch 1,074 611 672 1,920 150 702 — 5,129 Substandard / Nonperforming 175 438 174 175 674 2,891 — 4,527 Doubtful — — — — — — — — Total $ 140,538 $ 104,583 $ 64,473 $ 25,926 $ 22,692 $ 81,560 $ 11,438 $ 451,210 RRE - One- to four- family junior liens Performing $ 37,296 $ 22,908 $ 8,906 $ 3,058 $ 3,757 $ 6,330 $ 79,798 $ 162,053 Nonperforming — 23 31 179 756 76 100 1,165 Total $ 37,296 $ 22,931 $ 8,937 $ 3,237 $ 4,513 $ 6,406 $ 79,898 $ 163,218 Consumer Performing $ 32,584 $ 18,979 $ 7,966 $ 3,489 $ 1,646 $ 6,641 $ 4,255 $ 75,560 Nonperforming — 2 16 9 4 5 — 36 Total $ 32,584 $ 18,981 $ 7,982 $ 3,498 $ 1,650 $ 6,646 $ 4,255 $ 75,596 Total by Credit Quality Indicator Category Pass $ 975,687 $ 883,225 $ 649,601 $ 179,713 $ 93,541 $ 295,220 $ 321,166 $ 3,398,153 Special mention / watch 19,895 11,324 22,534 12,913 10,742 12,491 18,165 108,064 Substandard 1,960 11,538 22,940 15,365 12,893 27,871 2,926 95,493 Doubtful — — — — — — — — Performing 69,880 41,887 16,872 6,547 5,403 12,971 84,053 237,613 Nonperforming — 25 47 188 760 81 100 1,201 Total $ 1,067,422 $ 947,999 $ 711,994 $ 214,726 $ 123,339 $ 348,634 $ 426,410 $ 3,840,524 Allowance for Credit Losses At March 31, 2023, the economic forecast used by the Company showed the following: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) Year-to-year change in national retail sales - increases over the next four forecasted quarters; (3) Year-to-year change in CRE Index - increase in the first forecasted quarter and declines in the second through fourth forecasted quarters; (4) Year-to-year change in U.S. GDP - increases over the next four forecasted quarters; (5) Year-to-year change in National Home Price Index – declines over the next four forecasted quarters; and (6) Rental Vacancy - increases over the next four forecasted quarters. In addition, management utilized qualitative factors to adjust the calculated ACL as appropriate. Qualitative factors are based on management’s judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. The increase in the ACL between March 31, 2023 and December 31, 2022 is primarily driven by reserves taken to support loan growth. Net loan charge-offs were $0.3 million for the three-months ended March 31, 2023 as compared to net loan charge-offs of $2.2 million for the three-months ended March 31, 2022. We have made a policy election to report interest receivable as a separate line on the balance sheet. Accrued interest receivable, which is recorded within 'Other Assets', totaled $16.0 million at March 31, 2023 and $15.3 million at December 31, 2022 and is excluded from the estimate of credit losses. The changes in the allowance for credit losses by portfolio segment were as follows: For the Three Months Ended March 31, 2023 and 2022 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total For the Three Months Ended March 31, 2023 Beginning balance $ 923 $ 22,855 $ 20,123 $ 4,678 $ 621 $ 49,200 Charge-offs (1) (320) (18) — (148) (487) Recoveries 26 75 5 4 44 154 Credit loss expense (benefit) (1) (435) (265) 1,723 (137) 47 933 Ending balance $ 513 $ 22,345 $ 21,833 $ 4,545 $ 564 $ 49,800 For the Three Months Ended March 31, 2022 Beginning balance $ 667 $ 17,294 $ 26,120 $ 4,010 $ 609 $ 48,700 Charge-offs — (233) (2,184) (30) (184) (2,631) Recoveries 7 225 117 16 44 409 Credit loss expense (benefit) (1) (294) (11) 4 (88) 111 (278) Ending balance $ 380 $ 17,275 $ 24,057 $ 3,908 $ 580 $ 46,200 (1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.0 million and $0.3 million related to off-balance sheet credit exposures for the three months ended March 31, 2023 and March 31, 2022, respectively. The composition of allowance for credit losses by portfolio segment based on evaluation method were as follows: As of March 31, 2023 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total Loans held for investment, net of unearned income Individually evaluated for impairment $ 1,726 $ 1,443 $ 12,482 $ 1,632 $ — $ 17,283 Collectively evaluated for impairment 104,915 1,079,071 2,036,489 609,230 72,377 3,902,082 Total $ 106,641 $ 1,080,514 $ 2,048,971 $ 610,862 $ 72,377 $ 3,919,365 Allowance for credit losses: Individually evaluated for impairment $ — $ 234 $ 1,664 $ 180 $ — $ 2,078 Collectively evaluated for impairment 513 22,111 20,169 4,365 564 47,722 Total $ 513 $ 22,345 $ 21,833 $ 4,545 $ 564 $ 49,800 As of December 31, 2022 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total Loans held for investment, net of unearned income Individually evaluated for impairment $ 2,531 $ 2,184 $ 15,768 $ 1,650 $ — $ 22,133 Collectively evaluated for impairment 112,789 1,052,978 1,964,250 612,778 75,596 3,818,391 Total $ 115,320 $ 1,055,162 $ 1,980,018 $ 614,428 $ 75,596 $ 3,840,524 Allowance for credit losses: Individually evaluated for impairment $ 500 $ 600 $ 705 $ 180 $ — $ 1,985 Collectively evaluated for impairment 423 22,255 19,418 4,498 621 47,215 Total $ 923 $ 22,855 $ 20,123 $ 4,678 $ 621 $ 49,200 The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: As of March 31, 2023 (in thousands) Primary Type of Collateral Real Estate Equipment Other Total ACL Allocation Agricultural $ 1,513 $ 213 $ — $ 1,726 $ — Commercial and industrial 716 198 529 1,443 234 Commercial real estate: Construction and development — — — — — Farmland 4,298 — — 4,298 — Multifamily — — — — — Commercial real estate-other 7,985 — 199 8,184 1,664 Residential real estate: One- to four- family first liens 911 — — 911 — One- to four- family junior liens — — 721 721 180 Consumer — — — — — Total $ 15,423 $ 411 $ 1,449 $ 17,283 $ 2,078 As of December 31, 2022 (in thousands) Primary Type of Collateral Real Estate Equipment Other Total ACL Allocation Agricultural $ 68 $ 2,463 $ — $ 2,531 $ 500 Commercial and industrial 856 736 592 2,184 600 Commercial real estate: Construction and development — — — — — Farmland 4,515 — — 4,515 — Multifamily — — — — — Commercial real estate-other 11,006 — 247 11,253 705 Residential real estate: One- to four- family first liens 929 — — 929 — One- to four- family junior liens — — 721 721 180 Consumer — — — — — Total $ 17,374 $ 3,199 $ 1,560 $ 22,133 $ 1,985 Loan Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company may modify loans to borrowers who are experiencing financial difficulty. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, term extension, an other-than-insignificant payment delay, interest rate reduction, or combination thereof. The following table presents the amortized cost basis of loans as of March 31, 2023 that were modified during the three months ended March 31, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification. As of March 31, 2023 Combination: (dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Term Extension & Interest Rate Reduction Principal Forgiveness & Term Extension Principal Forgiveness, Term Extension, & Interest Rate Reduction Total Class of Financing Receivable Agricultural $ — $ 16 $ 1,502 $ — $ — $ — $ — 1.42 % Commercial and industrial — — 50 — 120 307 — 0.04 % CRE - Other — — — — — — 20 — % Total $ — $ 16 $ 1,552 $ — $ 120 $ 307 $ 20 The Company has no additional commitment to lend amounts to the borrowers included in the previous table as of March 31, 2023. For the three months ended March 31, 2023, the Company had no modified loans to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification. The following table presents the performance as of March 31, 2023 of loans that were modified while the borrower was experiencing financial difficulty at the time of modification in the last 12 months: As of March 31, 2023 (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Agricultural $ 1,518 $ — $ — $ — $ 1,518 Commercial and industrial 477 — — — 477 CRE - Other — — — 20 20 Total $ 1,995 $ — $ — $ 20 $ 2,015 The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2023: March 31, 2023 (dollars in thousands) Principal Forgiveness Weighted Average Interest Rate Reduction Weighted Average Term Extension (Years) Agricultural $ — — % 2.37 Commercial and industrial 63 1.25 % 11.89 CRE - Other 18 7.00 % 2.47 Total $ 81 2.07 % 4.64 |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Balance Sheet Offsetting | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities and Balance Sheet Offsetting | Derivatives, Hedging Activities and Balance Sheet Offsetting The following table presents the total notional amounts and gross fair values of the Company’s derivatives as of the dates indicated. The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. The fair values of the Company's derivative instrument assets and liabilities are summarized as follows: As of March 31, 2023 As of December 31, 2022 Notional Amount Fair Value Notional Amount Fair Value (in thousands) Assets Liabilities Assets Liabilities Designated as hedging instruments: Fair value hedges: Interest rate swaps $ 23,819 $ 1,995 $ — $ 24,018 $ 2,556 $ — Cash flow hedges Interest rate swaps 50,000 161 23 — — — Total $ 73,819 $ 2,156 $ 23 $ 24,018 $ 2,556 $ — Not designated as hedging instruments: Interest rate swaps $ 307,450 $ 16,256 $ 16,257 $ 331,197 $ 21,084 $ 21,087 RPAs - protection purchased 24,812 — — 9,421 — — Interest rate lock commitments 3,696 101 — 1,372 7 — Interest rate forward loan sales contracts 3,950 — 22 1,400 8 — Total $ 339,908 $ 16,357 $ 16,279 $ 343,390 $ 21,099 $ 21,087 Derivatives Designated as Hedging Instruments The Company uses derivative instruments to hedge its exposure to economic risks, including interest rate, liquidity, and credit risk. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value or cash flow hedges. Fair Value Hedges - Derivatives are designated as fair value hedges to limit the Company's exposure to changes in the fair value of assets or liabilities due to movements in interest rates. The Company entered into pay-fixed receive-floating interest rate swaps to manage its exposure to changes in fair value in certain fixed-rate assets. 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 interest income. Cash Flow Hedges - Derivatives are designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movement in interest rates. In March 2023, the Company entered into pay-fixed receive-variable interest rate swaps with a cumulative notional amount of $50.0 million to hedge against adverse fluctuations in interest rates by reducing exposure to variability in cash flows relating to interest payments on the Company's variable rate debt. The interest rate swaps were designated as a cash flow hedge. The gain or loss on the derivative was recorded in accumulated other comprehensive income and subsequently reclassified into interest expense, as applicable, in the same period(s) during which the hedged transaction affects earnings. During 2023, the Company estimates that an additional $561 thousand of income will be reclassified into interest expense. The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023 and 2022 Amount of Gain (Loss) Recognized in AOCI on Derivative Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Three Months Ended March 31, Three Months Ended March 31, (in thousands) 2023 2022 2023 2022 Interest rate swaps $ 138 $ — Interest Expense $ — $ — The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the periods indicated: Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships For the Three Months Ended March 31, 2023 2022 (in thousands) Interest Income Other Income Interest Income Other Income Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ 159 $ — $ (104) $ — The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships in subtopic 815-20: Interest contracts: Hedged items 562 — (1,553) — Derivative designated as hedging instruments (402) — 942 — Income statement effect of cash flow hedging relationships in subtopic 815-20: Interest contracts: Amount reclassified from AOCI into income — — — — As of March 31, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset (in thousands) Loans $ 21,854 $ (1,996) Derivatives Not Designated as Hedging Instruments Interest Rate Swaps - The Company periodically enters into commercial loan interest rate swap agreements in order to provide commercial loan customers with the ability to convert from variable to fixed interest rates. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer, while simultaneously entering into an offsetting interest rate swap with an institutional counterparty. Credit Risk Participation Agreements -The Company enters into RPAs to manage the credit exposure on interest rate contracts associated with a syndicated loan. The Company may enter into protection purchased RPAs with institutional counterparties to decrease or increase its exposure to a borrower. Under the RPA, the Company will receive or make payment if a borrower defaults on the related interest rate contract. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. Interest Rate Forward Loan Sales Contracts & Interest Rate Lock Commitments - The Company enters into forward delivery contracts to sell residential mortgage loans at specific prices and dates in order to hedge the interest rate risk in its portfolio of mortgage loans held for sale and its residential mortgage interest rate lock commitments. The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the periods indicated: Location in the Consolidated Statements of Income For the Three Months Ended March 31, (in thousands) 2023 2022 Interest rate swaps Other income $ — $ (5) RPAs Other income 69 (1) Interest rate lock commitments Loan revenue 94 381 Interest rate forward loan sales contracts Loan revenue (30) (311) Total $ 133 $ 64 Offsetting of Derivatives The Company has entered into agreements with certain counterparty financial institutions, which include master netting agreements. However, the Company has elected to account for all derivatives with counterparty institutions on a gross basis. The Company manages the risk of default by its borrower counterparties through its normal loan underwriting and credit monitoring policies and procedures. The table below presents gross derivatives and the respective collateral received or pledged in the form of other financial instruments as of March 31, 2023 and December 31, 2022, which are generally marketable securities and/or cash. The collateral amounts in the table below are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of over-collateralization are not shown. Further, the net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. Gross Amounts Not Offset in the Balance Sheet (in thousands) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts presented in the Balance Sheet Financial Instruments Cash Collateral Received / Paid Net Assets /Liabilities As of March 31, 2023 Asset Derivatives $ 18,513 $ — $ 18,513 $ — $ 15,091 $ 3,422 Liability Derivatives 16,302 — 16,302 — 3,000 13,302 As of December 31, 2022 Asset Derivatives $ 23,655 $ — $ 23,655 $ — $ 18,858 $ 4,797 Liability Derivatives 21,087 — 21,087 — 3,460 17,627 Credit-risk-related Contingent Features |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible AssetsThe carrying amount of goodwill was $62.5 million at March 31, 2023 and December 31, 2022. The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets at the dates indicated: As of March 31, 2023 As of December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible $ 58,245 $ (37,401) $ 20,844 $ 58,245 $ (35,822) $ 22,423 Customer relationship intangible 5,265 (4,648) 617 5,265 (4,490) 775 Other 2,700 (2,638) 62 2,700 (2,623) 77 $ 66,210 $ (44,687) $ 21,523 $ 66,210 $ (42,935) $ 23,275 Indefinite-lived trade name intangible $ 7,040 $ 7,040 The following table provides the estimated future amortization expense for the remaining nine months ending December 31, 2023 and the succeeding annual periods: (in thousands) Core Deposit Intangible Customer Relationship Intangible Other Total 2023 $ 4,098 $ 360 $ 36 $ 4,494 2024 4,705 239 24 4,968 2025 3,751 18 2 3,771 2026 2,797 — — 2,797 2027 1,843 — — 1,843 Thereafter 3,650 — — 3,650 Total $ 20,844 $ 617 $ 62 $ 21,523 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
Other Assets [Abstract] | |
Other Assets | Other Assets The components of the Company's other assets as of March 31, 2023 and December 31, 2022 were as follows: (in thousands) March 31, 2023 December 31, 2022 Bank-owned life insurance $ 96,141 $ 95,539 Interest receivable 26,864 27,090 FHLB stock 10,086 19,248 Mortgage servicing rights 13,736 13,421 Operating lease right-of-use assets, net 2,536 2,492 Federal and state income taxes, current 1,630 2,366 Federal and state income taxes, deferred 36,039 39,071 Derivative assets 18,513 23,655 Other receivables/assets 14,040 13,635 $ 219,585 $ 236,517 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits The following table presents the composition of our deposits as of the dates indicated: (in thousands) March 31, 2023 December 31, 2022 Noninterest bearing deposits $ 989,469 $ 1,053,450 Interest checking deposits 1,476,948 1,624,278 Money market deposits 969,238 937,340 Savings deposits 631,811 664,169 Time deposits under $250 965,841 559,466 Time deposits of $250 or more 521,846 630,239 Total deposits $ 5,555,153 $ 5,468,942 The Company had $6.0 million and $4.3 million in reciprocal time deposits as of March 31, 2023 and December 31, 2022, respectively. Included in money market deposits at March 31, 2023 and December 31, 2022 were $39.3 million and $40.0 million, respectively, of reciprocal deposits. These reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to spread deposits that exceed the FDIC insurance coverage limits out to numerous institutions in order to provide insurance coverage for all participating deposits. In addition, the Company had $366.5 million as of March 31, 2023 and $126.8 million as of December 31, 2022 of brokered deposits. As of March 31, 2023 and December 31, 2022, the Company had public entity deposits that were collateralized by investment securities of $327.5 million and $387.8 million, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings The following table summarizes our short-term borrowings as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Weighted Average Rate Balance Weighted Average Rate Balance Securities sold under agreements to repurchase 1.25 % $ 137,481 1.32 % $ 156,373 Federal Home Loan Bank advances 5.05 6,500 4.48 235,500 Total 1.42 % $ 143,981 3.22 % $ 391,873 Securities Sold Under an Agreement to Repurchase - Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date. The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements. All securities sold under agreements to repurchase are recorded on the face of the balance sheet. Federal Home Loan Bank Advances - The Bank has a secured line of credit with the FHLBDM. Advances from the FHLBDM are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4. Loans Receivable and the Allowance for Credit Losses of the notes to the consolidated financial statements. Federal Funds Purchased - The Bank has unsecured federal funds lines totaling $155.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either March 31, 2023 or December 31, 2022. Other - At March 31, 2023 and December 31, 2022, the Company had no Federal Reserve Discount Window borrowings, while the financing capacity was $419.4 million as of March 31, 2023 and $105.6 million as of December 31, 2022. At March 31, 2023, the Company had no Bank Term Funding Program borrowings, while the financing capacity was $90.2 million as of March 31, 2023. As of March 31, 2023 and December 31, 2022, the Bank had municipal securities with a market value of $494.1 million and $115.2 million, respectively, pledged to the Federal Reserve Bank of Chicago to secure potential borrowings. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Junior Subordinated Notes Issued to Capital Trusts The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of the dates indicated: (in thousands) Face Value Book Value Interest Rate Rate Maturity Date Callable Date March 31, 2023 ATBancorp Statutory Trust I $ 7,732 $ 6,938 Three-month LIBOR + 1.68% 6.55 % 06/15/2036 06/15/2011 ATBancorp Statutory Trust II 12,372 10,985 Three-month LIBOR + 1.65% 6.52 % 09/15/2037 06/15/2012 Barron Investment Capital Trust I 2,062 1,839 Three-month LIBOR + 2.15% 7.17 % 09/23/2036 09/23/2011 Central Bancshares Capital Trust II 7,217 6,934 Three-month LIBOR + 3.50% 8.37 % 03/15/2038 03/15/2013 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 6.46 % 12/15/2037 12/15/2012 Total $ 44,847 $ 42,160 December 31, 2022 ATBancorp Statutory Trust I $ 7,732 $ 6,928 Three-month LIBOR + 1.68% 6.45 % 06/15/2036 06/15/2011 ATBancorp Statutory Trust II 12,372 10,969 Three-month LIBOR + 1.65% 6.42 % 09/15/2037 06/15/2012 Barron Investment Capital Trust I 2,062 1,832 Three-month LIBOR + 2.15% 6.88 % 09/23/2036 09/23/2011 Central Bancshares Capital Trust II 7,217 6,923 Three-month LIBOR + 3.50% 8.27 % 03/15/2038 03/15/2013 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 6.36 % 12/15/2037 12/15/2012 Total $ 44,847 $ 42,116 The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption of the junior subordinated notes. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the junior subordinated notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above. During any such deferral period the Company may not pay cash dividends on its stock and generally may not repurchase its stock. Subordinated Debentures On July 28, 2020, the Company completed the private placement offering of $65.0 million of its subordinated notes, of which $63.75 million have been exchanged for subordinated notes registered under the Securities Act of 1933. The 5.75% fixed-to-floating rate subordinated notes are due July 30, 2030. At March 31, 2023, 100% of the subordinated notes qualified as Tier 2 capital. Per applicable Federal Reserve rules and regulations, the amount of the subordinated notes qualifying as Tier 2 regulatory capital will be phased-out by 20% of the amount of the subordinated notes in each of the five years beginning on the fifth anniversary preceding the maturity date of the subordinated notes. Other Long-Term Debt Other long-term borrowings were as follows as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (in thousands) Weighted Average Rate Balance Weighted Average Rate Balance Finance lease payable 8.89 % $ 744 8.89 % $ 787 FHLB borrowings 2.91 17,288 2.91 17,301 Note payable to unaffiliated bank 6.22 13,750 5.67 15,000 Total 4.48 % $ 31,782 4.30 % $ 33,088 On June 7, 2022, the Company entered into an unsecured note payable with a correspondent bank with a maturity date of June 30, 2027. Payments of principal and interest are payable quarterly, and began on September 30, 2022. Interest is payable at the monthly reset term SOFR plus 1.55%. As a member of the FHLBDM, the Bank may borrow funds from the FHLB in amounts up to 45% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4. Loans Receivable and the Allowance for Credit Losses of the notes to the unaudited consolidated financial statements. At March 31, 2023, FHLB long-term borrowings included advances from the FHLBC, which were collateralized by investment securities. See Note 3. Debt Securities of the notes to the unaudited consolidated financial statements. As of March 31, 2023, FHLB borrowings were as follows: (in thousands) Weighted Average Rate Amount Due in 2023 2.79 % $ 11,000 Due in 2024 3.11 % 6,250 Total 2.91 % 17,250 Valuation adjustment from acquisition accounting 38 Total $ 17,288 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended March 31, (dollars in thousands, except per share amounts) 2023 2022 Basic Earnings Per Share: Net income $ 1,397 $ 13,895 Weighted average shares outstanding 15,649,651 15,683,136 Basic earnings per common share $ 0.09 $ 0.89 Diluted Earnings Per Share: Net income $ 1,397 $ 13,895 Weighted average shares outstanding, including all dilutive potential shares 15,691,168 15,717,960 Diluted earnings per common share $ 0.09 $ 0.88 |
Regulatory Capital Requirements
Regulatory Capital Requirements and Restrictions on Subsidiary Cash | 3 Months Ended |
Mar. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements and Restrictions on Subsidiary Cash | Regulatory Capital Requirements and Restrictions on Subsidiary Cash Regulatory Capital and Reserve Requirement - The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the 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 consolidated financial statements. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. As of March 31, 2023 and December 31, 2022, the Bank was not required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks, and therefore the total amount held in reserve for each of these periods was zero dollars. A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect as of March 31, 2023 and December 31, 2022, is presented below: Actual For Capital Adequacy Purposes With Capital Conservation Buffer (1) To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio At March 31, 2023 Consolidated: Total capital/risk weighted assets $654,151 12.31% $557,940 10.50% N/A N/A Tier 1 capital/risk weighted assets 540,980 10.18 451,666 8.50 N/A N/A Common equity tier 1 capital/risk weighted assets 498,820 9.39 371,960 7.00 N/A N/A Tier 1 leverage capital/average assets 540,980 8.30 260,813 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $653,184 12.31% $557,101 10.50% $530,573 10.00% Tier 1 capital/risk weighted assets 605,014 11.40 450,987 8.50 424,458 8.00 Common equity tier 1 capital/risk weighted assets 605,014 11.40 371,401 7.00 344,872 6.50 Tier 1 leverage capital/average assets 605,014 9.28 260,685 4.00 325,857 5.00 At December 31, 2022 Consolidated: Total capital/risk weighted assets $653,380 12.07% $568,452 10.50% N/A N/A Tier 1 capital/risk weighted assets 544,300 10.05 460,175 8.50 N/A N/A Common equity tier 1 capital/risk weighted assets 502,184 9.28 378,968 7.00 N/A N/A Tier 1 leverage capital/average assets 544,300 8.35 260,891 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $654,297 12.10% $567,684 10.50% $540,652 10.00% Tier 1 capital/risk weighted assets 610,217 11.29 459,554 8.50 432,522 8.00 Common equity tier 1 capital/risk weighted assets 610,217 11.29 378,456 7.00 351,424 6.50 Tier 1 leverage capital/average assets 610,217 9.36 260,776 4.00 325,970 5.00 (1) Includes a capital conservation buffer of 2.50%. Subordinated Notes - The Company completed a private placement of $65.0 million aggregate principal amount of 5.75% fixed-to-floating rate subordinated notes on July 28, 2020. The subordinated notes are intended to qualify as Tier 2 capital for regulatory purposes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Credit-related financial instruments - The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, commitments to sell loans, and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Bank’s commitments as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Commitments to extend credit $ 1,205,902 $ 1,190,607 Commitments to sell loans 2,553 612 Standby letters of credit 17,374 18,398 Total $ 1,225,829 $ 1,209,617 The Bank’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, crops, livestock, inventory, property and equipment, residential real estate and income-producing commercial properties. Commitments to sell loans are agreements to sell loans held for sale to third parties at an agreed upon price. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral, which may include accounts receivable, inventory, property, equipment and income-producing properties, that support those commitments, if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Bank would be required to fund the commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Bank would be entitled to seek recovery from the customer. Liability for Off-Balance Sheet Credit Losses - The Company records a liability for off-balance sheet credit losses through a charge to credit loss expense (or a reversal of credit loss expense) on the Company's consolidated statements of income and other liabilities on the Company's consolidated balance sheets. At March 31, 2023 and December 31, 2022, the liability for off-balance-sheet credit losses totaled $4.8 million. For the three-months ended March 31, 2023, no credit loss expense was recorded, while a credit loss expense of $0.3 million was recorded for the three-months ended March 31, 2022. Litigation - In the normal course of business, the Company and its subsidiaries have been named, from time to time, as defendants in various legal actions. Certain of the actual or threatened legal actions may include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company. Concentrations of credit risk - Substantially all of the Bank’s loans, commitments to extend credit and standby letters of credit have been granted to customers in the Bank’s market areas. Although the loan portfolio of the Bank is diversified, approximately 63% of the loans are real estate loans, excluding farmland, and approximately 7% are agriculturally related. The concentrations of credit by type of loan are set forth in Note 4. Loans Receivable and the Allowance for Credit Losses |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Fair Value Measurements | Fair Value of Financial Instruments and Fair Value Measurements 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. For additional information regarding the valuation methodologies used to measure the Company's assets recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, see Note 1. Nature of Business and Significant Accounting Policies and Note 20. Estimated Fair Value of Financial Instruments and Fair Value Measurements to the consolidated financial statements in the Company's 2022 Annual Report on Form 10-K, filed with the SEC on March 13, 2023. The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily available for sale debt securities, derivatives and mortgage servicing rights. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for collateral dependent individually analyzed loans and other real estate owned. Recurring Basis The following table summarizes assets and liabilities measured at fair value on a recurring basis as of the dates indicated, by level within the fair value hierarchy: Fair Value Measurement at March 31, 2023 Using (in thousands) Total Level 1 Level 2 Level 3 Assets: Available for sale debt securities: State and political subdivisions $ 184,581 $ — $ 184,581 $ — Mortgage-backed securities 5,679 — 5,679 — Collateralized loan obligations 54,074 — 54,074 — Collateralized mortgage obligations 144,666 — 144,666 — Corporate debt securities 565,074 — 565,074 — Derivative assets 18,513 — 18,412 101 Mortgage servicing rights 13,736 — 13,736 — Liabilities: Derivative liabilities $ 16,302 $ — $ 16,302 $ — Fair Value Measurement at December 31, 2022 Using (in thousands) Total Level 1 Level 2 Level 3 Assets: Debt securities available for sale: U.S. Government agencies and corporations $ 7,345 $ — $ 7,345 $ — State and political subdivisions 285,356 — 285,356 — Mortgage-backed securities 5,944 — 5,944 — Collateralized mortgage obligations 147,193 — 147,193 — Corporate debt securities 707,709 — 707,709 — Derivative assets 23,655 — 23,648 7 Mortgage servicing rights 13,421 — 13,421 — Liabilities: Derivative liabilities $ 21,087 $ — $ 21,087 $ — There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the three months ended March 31, 2023 or the year ended December 31, 2022. Changes in the fair value of available for sale debt securities are included in other comprehensive income. The following table presents the valuation technique, significant unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy as of the dates indicated: Fair Value at (dollars in thousands) March 31, 2023 December 31, 2022 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Interest rate lock commitments $ 101 $ 7 Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions Pull-through rate 71% - 100% 92% Nonrecurring Basis The following table presents assets measured at fair value on a nonrecurring basis as of the dates indicated: Fair Value Measurement at March 31, 2023 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent individually analyzed loans $ 3,666 $ — $ — $ 3,666 Fair Value Measurement at December 31, 2022 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent individually analyzed loans $ 3,159 $ — $ — $ 3,159 Foreclosed assets, net 103 — — 103 The following table presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy as of the dates indicated: Fair Value at (dollars in thousands) March 31, 2023 December 31, 2022 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent individually analyzed loans $ 3,666 $ 3,159 Fair value of collateral Valuation adjustments —% - 100% 13% Foreclosed assets, net $ — $ 103 Fair value of collateral Valuation adjustments N/A (1) (1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. Carrying Amount and Estimated Fair Value of Financial Instruments The carrying amount and estimated fair value of financial instruments at March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 69,218 $ 69,218 $ 69,218 $ — $ — Debt securities available for sale 954,074 954,074 — 954,074 — Debt securities held to maturity 1,117,709 938,535 — 938,535 — Loans held for sale 2,553 2,594 — 2,594 — Loans held for investment, net 3,869,565 3,767,718 — — 3,767,718 Interest receivable 26,864 26,864 — 26,864 — FHLB stock 10,086 10,086 — 10,086 — Derivative assets 18,513 18,513 — 18,412 101 Financial liabilities: Noninterest bearing deposits 989,469 989,469 989,469 — — Interest bearing deposits 4,565,684 4,548,622 3,077,997 1,470,625 — Short-term borrowings 143,981 143,981 143,981 — — Finance leases payable 744 744 — 744 — FHLB borrowings 17,288 17,111 — 17,111 — Junior subordinated notes issued to capital trusts 42,160 36,067 — 36,067 — Subordinated debentures 64,039 62,598 — 62,598 — Other long-term debt 13,750 13,750 — 13,750 — Derivative liabilities 16,302 16,302 — 16,302 — December 31, 2022 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 86,435 $ 86,435 $ 86,435 $ — $ — Debt securities available for sale 1,153,547 1,153,547 — 1,153,547 — Debt securities held to maturity 1,129,421 924,894 — 924,894 — Loans held for sale 612 622 — 622 — Loans held for investment, net 3,791,324 3,702,527 — — 3,702,527 Interest receivable 27,090 27,090 — 27,090 — FHLB stock 19,248 19,248 — 19,248 — Derivative assets 23,655 23,655 — 23,648 7 Financial liabilities: Noninterest bearing deposits 1,053,450 1,053,450 1,053,450 — — Interest bearing deposits 4,415,492 4,393,315 3,225,787 1,167,528 — Short-term borrowings 391,873 391,873 391,873 — — Finance leases payable 787 787 — 787 — FHLB borrowings 17,301 17,032 — 17,032 — Junior subordinated notes issued to capital trusts 42,116 39,023 — 39,023 — Subordinated debentures 64,006 64,004 — 64,004 — Other long-term debt 15,000 15,000 — 15,000 — Derivative liabilities 21,087 21,087 — 21,087 — |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company's lease commitments consist primarily of real estate property for banking offices and office space with terms extending through 2030. Substantially all of our leases are classified as operating leases, with the Company only holding one existing finance lease for a banking office location with a lease term through 2025. (in thousands) Classification March 31, 2023 December 31, 2022 Operating lease right-of-use assets Other assets $ 2,536 $ 2,492 Finance lease right-of-use asset Premises and equipment, net 326 350 Total right-of-use assets $ 2,862 $ 2,842 Operating lease liability Other liabilities $ 3,364 $ 3,359 Finance lease liability Long-term debt 744 787 Total lease liabilities $ 4,108 $ 4,146 Weighted-average remaining lease term: Operating leases 10.08 years 9.23 years Finance lease 3.42 years 3.67 years Weighted-average discount rate: Operating leases 4.33 % 4.23 % Finance lease 8.89 % 8.89 % The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Three Months Ended March 31, (in thousands) 2023 2022 Lease Costs Operating lease cost $ 292 $ 296 Variable lease cost 7 21 Interest on lease liabilities (1) 17 20 Amortization of right-of-use assets 24 24 Net lease cost $ 340 $ 361 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 605 $ 596 Operating cash flows from finance lease 17 20 Finance cash flows from finance lease 43 39 Supplemental non-cash information on lease liabilities: Right-of-use assets obtained in exchange for new operating lease liabilities 292 — (1) Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net. Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining nine-months ending December 31, 2023 and the succeeding annual periods were as follows: (in thousands) Finance Leases Operating Leases December 31, 2023 $ 184 $ 845 December 31, 2024 250 892 December 31, 2025 255 422 December 31, 2026 172 328 December 31, 2027 — 243 Thereafter — 1,708 Total undiscounted lease payment $ 861 $ 4,438 Amounts representing interest (117) (1,074) Lease liability $ 744 $ 3,364 |
Leases | Leases The Company's lease commitments consist primarily of real estate property for banking offices and office space with terms extending through 2030. Substantially all of our leases are classified as operating leases, with the Company only holding one existing finance lease for a banking office location with a lease term through 2025. (in thousands) Classification March 31, 2023 December 31, 2022 Operating lease right-of-use assets Other assets $ 2,536 $ 2,492 Finance lease right-of-use asset Premises and equipment, net 326 350 Total right-of-use assets $ 2,862 $ 2,842 Operating lease liability Other liabilities $ 3,364 $ 3,359 Finance lease liability Long-term debt 744 787 Total lease liabilities $ 4,108 $ 4,146 Weighted-average remaining lease term: Operating leases 10.08 years 9.23 years Finance lease 3.42 years 3.67 years Weighted-average discount rate: Operating leases 4.33 % 4.23 % Finance lease 8.89 % 8.89 % The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Three Months Ended March 31, (in thousands) 2023 2022 Lease Costs Operating lease cost $ 292 $ 296 Variable lease cost 7 21 Interest on lease liabilities (1) 17 20 Amortization of right-of-use assets 24 24 Net lease cost $ 340 $ 361 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 605 $ 596 Operating cash flows from finance lease 17 20 Finance cash flows from finance lease 43 39 Supplemental non-cash information on lease liabilities: Right-of-use assets obtained in exchange for new operating lease liabilities 292 — (1) Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net. Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining nine-months ending December 31, 2023 and the succeeding annual periods were as follows: (in thousands) Finance Leases Operating Leases December 31, 2023 $ 184 $ 845 December 31, 2024 250 892 December 31, 2025 255 422 December 31, 2026 172 328 December 31, 2027 — 243 Thereafter — 1,708 Total undiscounted lease payment $ 861 $ 4,438 Amounts representing interest (117) (1,074) Lease liability $ 744 $ 3,364 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated events that have occurred subsequent to March 31, 2023 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements. On April 27, 2023, the board of directors of the Company declared a cash dividend of $0.2425 per share payable on June 15, 2023 to shareholders of record as of the close of business on June 1, 2023. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three months ended March 31, 2023 may not be indicative of results for the year ending December 31, 2023, or for any other period. |
Segment Reporting | Segment Reporting The Company’s activities are considered to be one reportable segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking and trust and investment management services with operations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments. |
Effect of New Financial Accounting Standards | Effect of New Financial Accounting Standards Accounting Guidance Pending Adoption at March 31, 2023 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. Certain optional expedients and exceptions for contract modifications and hedging relationships were amended in ASU 2021-01, Reference Rate Reform (Topic 848): Scope Refinement , issued on January 7, 2021. In addition, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which time entities will no longer be permitted to apply the relief in Topic 848. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements. Accounting Guidance Adopted at March 31, 2023 On March 31, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. For creditors that have adopted the CECL accounting guidance within ASU 2016-13, the amendments eliminate the accounting guidance for TDRs within ASC 310-40, while also enhancing the disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. In addition, public business entities must also disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. The amendments are effective for fiscal years beginning after December 15, 2022 and should be applied prospectively, with an option to apply a modified retrospective transition approach for the recognition and measurement of TDRs. The adoption of ASU 2022-02 was applied prospectively and did not have a material impact on the Company's consolidated financial statements. |
Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments The Company uses derivative instruments to hedge its exposure to economic risks, including interest rate, liquidity, and credit risk. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value or cash flow hedges. Fair Value Hedges - Derivatives are designated as fair value hedges to limit the Company's exposure to changes in the fair value of assets or liabilities due to movements in interest rates. The Company entered into pay-fixed receive-floating interest rate swaps to manage its exposure to changes in fair value in certain fixed-rate assets. 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 interest income. Cash Flow Hedges - Derivatives are designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movement in interest rates. In March 2023, the Company entered into pay-fixed receive-variable interest rate swaps with a cumulative notional amount of $50.0 million to hedge against adverse fluctuations in interest rates by reducing exposure to variability in cash flows relating to interest payments on the Company's variable rate debt. The interest rate swaps were designated as a cash flow hedge. The gain or loss on the derivative was recorded in accumulated other comprehensive income and subsequently reclassified into interest expense, as applicable, in the same period(s) during which the hedged transaction affects earnings. During 2023, the Company estimates that an additional $561 thousand of income will be reclassified into interest expense. The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023 and 2022 Amount of Gain (Loss) Recognized in AOCI on Derivative Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Three Months Ended March 31, Three Months Ended March 31, (in thousands) 2023 2022 2023 2022 Interest rate swaps $ 138 $ — Interest Expense $ — $ — |
Fair Value Measurements | 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. For additional information regarding the valuation methodologies used to measure the Company's assets recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, see Note 1. Nature of Business and Significant Accounting Policies and Note 20. Estimated Fair Value of Financial Instruments and Fair Value Measurements to the consolidated financial statements in the Company's 2022 Annual Report on Form 10-K, filed with the SEC on March 13, 2023. The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily available for sale debt securities, derivatives and mortgage servicing rights. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for collateral dependent individually analyzed loans and other real estate owned. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. (in thousands) June 9, 2022 Merger consideration Cash consideration $ 46,672 Identifiable net assets acquired, at fair value Assets acquired Cash and due from banks $ 10,192 Interest earning deposits in banks 67,855 Debt securities 119,820 Loans held for investment 281,326 Premises and equipment 7,363 Core deposit intangible 16,500 Other assets 14,140 Total assets acquired 517,196 Liabilities assumed Deposits $ (463,638) Other liabilities (3,117) Total liabilities assumed (466,755) Identifiable net assets acquired, at fair value 50,441 Bargain Purchase Gain $ 3,769 |
Schedule of Business Acquisition Information | The following table provides a summary of these PCD loans at acquisition: (in thousands) June 9, 2022 Par value of PCD loans acquired $ 15,396 PCD ACL at acquisition (3,371) Non-credit discount on PCD loans (1,005) Purchase price of PCD loans $ 11,020 The following table summarizes the IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated: Three Months Ended March 31, (in thousands) 2023 2022 Noninterest Expense Compensation and employee benefits $ 70 $ — Equipment — 5 Legal and professional — 63 Data processing 65 38 Marketing — 7 Communications — 1 Other 1 14 Total acquisition-related expenses $ 136 $ 128 |
Debt Securities (Tables)
Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities for the periods indicated. As of March 31, 2023 (in thousands) Amortized Cost (1) Gross Gross Allowance for Credit Loss related to Debt Securities Fair Value Available for Sale State and political subdivisions $ 196,497 $ 24 $ 11,940 $ — $ 184,581 Mortgage-backed securities 5,851 5 177 — 5,679 Collateralized loan obligations 54,224 — 150 — 54,074 Collateralized mortgage obligations 168,135 — 23,469 — 144,666 Corporate debt securities 624,673 22 59,621 — 565,074 Total available for sale debt securities $ 1,049,380 $ 51 $ 95,357 $ — $ 954,074 Held to Maturity State and political subdivisions $ 538,182 $ — $ 71,250 $ — $ 466,932 Mortgage-backed securities 79,597 — 11,772 — 67,825 Collateralized mortgage obligations 499,930 — 96,152 — 403,778 Total held to maturity debt securities $ 1,117,709 $ — $ 179,174 $ — $ 938,535 (1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $10 thousand of unamortized losses in mortgage-backed securities and $11.4 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022. As of December 31, 2022 (in thousands) Amortized Gross Gross Allowance for Credit Loss related to Debt Securities Fair Value Available for Sale U.S. Government agencies and corporations $ 7,598 $ — $ 253 $ — $ 7,345 State and political subdivisions 303,573 27 18,244 — 285,356 Mortgage-backed securities 6,165 11 232 — 5,944 Collateralized mortgage obligations 172,568 — 25,375 — 147,193 Corporate debt securities 771,836 125 64,252 — 707,709 Total available for sale debt securities $ 1,261,740 $ 163 $ 108,356 $ — $ 1,153,547 Held to Maturity State and political subdivisions $ 538,746 $ — $ 88,349 $ — $ 450,397 Mortgage-backed securities 81,032 — 12,851 — 68,181 Collateralized mortgage obligations 509,643 — 103,327 — 406,316 Total held to maturity debt securities $ 1,129,421 $ — $ 204,527 $ — $ 924,894 |
Schedule of Debt Securities, Held-to-maturity | The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities for the periods indicated. As of March 31, 2023 (in thousands) Amortized Cost (1) Gross Gross Allowance for Credit Loss related to Debt Securities Fair Value Available for Sale State and political subdivisions $ 196,497 $ 24 $ 11,940 $ — $ 184,581 Mortgage-backed securities 5,851 5 177 — 5,679 Collateralized loan obligations 54,224 — 150 — 54,074 Collateralized mortgage obligations 168,135 — 23,469 — 144,666 Corporate debt securities 624,673 22 59,621 — 565,074 Total available for sale debt securities $ 1,049,380 $ 51 $ 95,357 $ — $ 954,074 Held to Maturity State and political subdivisions $ 538,182 $ — $ 71,250 $ — $ 466,932 Mortgage-backed securities 79,597 — 11,772 — 67,825 Collateralized mortgage obligations 499,930 — 96,152 — 403,778 Total held to maturity debt securities $ 1,117,709 $ — $ 179,174 $ — $ 938,535 (1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $10 thousand of unamortized losses in mortgage-backed securities and $11.4 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022. As of December 31, 2022 (in thousands) Amortized Gross Gross Allowance for Credit Loss related to Debt Securities Fair Value Available for Sale U.S. Government agencies and corporations $ 7,598 $ — $ 253 $ — $ 7,345 State and political subdivisions 303,573 27 18,244 — 285,356 Mortgage-backed securities 6,165 11 232 — 5,944 Collateralized mortgage obligations 172,568 — 25,375 — 147,193 Corporate debt securities 771,836 125 64,252 — 707,709 Total available for sale debt securities $ 1,261,740 $ 163 $ 108,356 $ — $ 1,153,547 Held to Maturity State and political subdivisions $ 538,746 $ — $ 88,349 $ — $ 450,397 Mortgage-backed securities 81,032 — 12,851 — 68,181 Collateralized mortgage obligations 509,643 — 103,327 — 406,316 Total held to maturity debt securities $ 1,129,421 $ — $ 204,527 $ — $ 924,894 |
Schedule of Debt Securities, Available-for-sale, in Unrealized Loss Position | The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023, aggregated by investment category and length of time in a continuous loss position: As of March 31, 2023 Number of Securities Less than 12 Months 12 Months or More Total Available for Sale Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) State and political subdivisions 187 $ 58,853 $ 2,606 $ 111,956 $ 9,334 $ 170,809 $ 11,940 Mortgage-backed securities 25 969 26 4,269 151 5,238 177 Collateralized loan obligations 2 9,708 150 — — 9,708 150 Collateralized mortgage obligations 20 37,129 2,313 107,537 21,156 144,666 23,469 Corporate debt securities 152 133,706 5,121 424,397 54,500 558,103 59,621 Total 386 $ 240,365 $ 10,216 $ 648,159 $ 85,141 $ 888,524 $ 95,357 The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded at December 31, 2022, aggregated by investment category and length of time in a continuous loss position: As of December 31, 2022 Available for Sale Number of Securities Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands, except number of securities) U.S. Government agencies and corporations 8 $ 7,345 $ 253 $ — $ — $ 7,345 $ 253 State and political subdivisions 380 248,339 14,553 20,631 3,691 268,970 18,244 Mortgage-backed securities 27 5,323 231 45 1 5,368 232 Collateralized mortgage obligations 20 75,041 7,121 72,152 18,254 147,193 25,375 Corporate debt securities 159 369,441 21,679 288,329 42,573 657,770 64,252 Total 594 $ 705,489 $ 43,837 $ 381,157 $ 64,519 $ 1,086,646 $ 108,356 |
Schedule of Proceeds and Realized Gains (Losses) | Proceeds and gross realized gains and losses on debt securities available for sale for the three months ended March 31, 2023 and 2022, were as follows: Three Months Ended (in thousands) March 31, 2023 March 31, 2022 Proceeds from sales of debt securities available for sale $ 218,667 $ — Gross realized gains from sales of debt securities available for sale — — Gross realized losses from sales of debt securities available for sale (13,170) — Net realized gain from sales of debt securities available for sale (1) $ (13,170) $ — (1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized gain from the call or maturity of debt securities of $0 for the three months ended March 31, 2023 and $40 thousand for the three months ended March 31, 2022. |
Schedule of Investments Classified by Contractual Maturity Date | The contractual maturity distribution of investment debt securities at March 31, 2023, is shown below. Expected maturities of MBS, CLO and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary. Available for Sale Held to Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 49,536 $ 49,128 $ 4,390 $ 4,375 Due after one year through five years 563,764 516,820 116,601 105,326 Due after five years through ten years 176,129 155,873 207,827 180,227 Due after ten years 31,741 27,834 209,364 177,004 $ 821,170 $ 749,655 $ 538,182 $ 466,932 Mortgage-backed securities 5,851 5,679 79,597 67,825 Collateralized loan obligations 54,224 54,074 — — Collateralized mortgage obligations 168,135 144,666 499,930 403,778 Total $ 1,049,380 $ 954,074 $ 1,117,709 $ 938,535 |
Loans Receivable and the Allo_2
Loans Receivable and the Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans by Lending Classification | The composition of loans by class of receivable was as follows: As of (in thousands) March 31, 2023 December 31, 2022 Agricultural $ 106,641 $ 115,320 Commercial and industrial 1,080,514 1,055,162 Commercial real estate: Construction & development 320,924 270,991 Farmland 182,528 183,913 Multifamily 255,065 252,129 Commercial real estate-other 1,290,454 1,272,985 Total commercial real estate 2,048,971 1,980,018 Residential real estate: One- to four- family first liens 448,459 451,210 One- to four- family junior liens 162,403 163,218 Total residential real estate 610,862 614,428 Consumer 72,377 75,596 Loans held for investment, net of unearned income 3,919,365 3,840,524 Allowance for credit losses (49,800) (49,200) Total loans held for investment, net $ 3,869,565 $ 3,791,324 |
Schedule of Loans Based on Delinquency Status | The following table presents the amortized cost basis of loans based on delinquency status: Age Analysis of Past-Due Financial Assets 90 Days or More Past Due And Accruing (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total March 31, 2023 Agricultural $ 105,506 $ 851 $ — $ 284 $ 106,641 $ — Commercial and industrial 1,078,687 627 378 822 1,080,514 — Commercial real estate: Construction and development 320,924 — — — 320,924 — Farmland 180,721 31 — 1,776 182,528 — Multifamily 255,065 — — — 255,065 — Commercial real estate-other 1,289,988 — 48 418 1,290,454 — Total commercial real estate 2,046,698 31 48 2,194 2,048,971 — Residential real estate: One- to four- family first liens 444,724 3,124 156 455 448,459 2 One- to four- family junior liens 161,357 120 30 896 162,403 — Total residential real estate 606,081 3,244 186 1,351 610,862 2 Consumer 72,235 125 10 7 72,377 — Total $ 3,909,207 $ 4,878 $ 622 $ 4,658 $ 3,919,365 $ 2 Age Analysis of Past-Due Financial Assets 90 Days or More Past Due And Accruing (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total December 31, 2022 Agricultural $ 114,922 $ 100 $ — $ 298 $ 115,320 $ — Commercial and industrial 1,052,406 922 111 1,723 1,055,162 — Commercial real estate: Construction and development 270,905 86 — — 270,991 — Farmland 182,115 729 — 1,069 183,913 — Multifamily 252,129 — — — 252,129 — Commercial real estate-other 1,266,874 5,574 45 492 1,272,985 — Total commercial real estate 1,972,023 6,389 45 1,561 1,980,018 — Residential real estate: One- to four- family first liens 446,066 3,177 954 1,013 451,210 565 One- to four- family junior liens 161,989 301 78 850 163,218 — Total residential real estate 608,055 3,478 1,032 1,863 614,428 565 Consumer 75,443 110 17 26 75,596 — Total $ 3,822,849 $ 10,999 $ 1,205 $ 5,471 $ 3,840,524 $ 565 |
Schedule of Amortized Cost Basis on Nonaccrual Status | The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan: Nonaccrual Nonaccrual with no Allowance for Credit Losses 90 Days or More Past Due And Accruing (in thousands) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Agricultural $ 307 $ 377 $ 224 $ 281 $ — $ — Commercial and industrial 2,192 2,728 483 1,049 — — Commercial real estate: Construction and development — — — — — — Farmland 1,931 2,278 1,776 1,997 — — Multifamily — — — — — — Commercial real estate-other 6,191 6,397 4,121 5,647 — — Total commercial real estate 8,122 8,675 5,897 7,644 — — Residential real estate: One- to four- family first liens 2,536 2,275 910 928 2 565 One- to four- family junior liens 1,258 1,165 — — — — Total residential real estate 3,794 3,440 910 928 2 565 Consumer 25 36 — — — — Total $ 14,440 $ 15,256 $ 7,514 $ 9,902 $ 2 $ 565 |
Schedule of Credit Quality Indicator | The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator, and vintage, in addition to the current period gross write-offs by class of receivable and vintage, based on the most recent analysis performed, as of March 31, 2023. As of March 31, 2023, there were no 'loss' rated credits. Term Loans by Origination Year Revolving Loans March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Total Agricultural Pass $ 7,088 $ 15,551 $ 11,339 $ 4,533 $ 1,598 $ 1,417 $ 56,139 $ 97,665 Special mention / watch 6 224 859 208 8 534 3,412 5,251 Substandard 1,918 114 193 258 3 294 945 3,725 Doubtful — — — — — — — — Total $ 9,012 $ 15,889 $ 12,391 $ 4,999 $ 1,609 $ 2,245 $ 60,496 $ 106,641 Commercial and industrial Pass $ 37,423 $ 253,594 $ 224,460 $ 142,132 $ 44,485 $ 134,002 $ 184,382 $ 1,020,478 Special mention / watch 465 1,788 1,544 4,770 418 4,988 14,638 28,611 Substandard 621 2,966 2,617 1,474 768 18,058 4,921 31,425 Doubtful — — — — — — — — Total $ 38,509 $ 258,348 $ 228,621 $ 148,376 $ 45,671 $ 157,048 $ 203,941 $ 1,080,514 CRE - Construction and development Pass $ 22,423 $ 167,846 $ 80,378 $ 20,349 $ 968 $ 1,534 $ 26,621 $ 320,119 Special mention / watch — 38 493 — — — — 531 Substandard — 270 — — — 4 — 274 Doubtful — — — — — — — — Total $ 22,423 $ 168,154 $ 80,871 $ 20,349 $ 968 $ 1,538 $ 26,621 $ 320,924 CRE - Farmland Pass $ 7,159 $ 53,083 $ 51,868 $ 26,650 $ 6,847 $ 19,184 $ 2,169 $ 166,960 Special mention / watch — 2,807 2,295 1,453 — 1,782 401 8,738 Substandard — 148 1,670 1,201 1,143 2,668 — 6,830 Doubtful — — — — — — — — Total $ 7,159 $ 56,038 $ 55,833 $ 29,304 $ 7,990 $ 23,634 $ 2,570 $ 182,528 CRE - Multifamily Pass $ 7,369 $ 31,621 $ 89,877 $ 84,000 $ 16,991 $ 7,644 $ 150 $ 237,652 Special mention / watch — 794 — 1,552 — 7,048 — 9,394 Substandard — — 7,687 332 — — — 8,019 Doubtful — — — — — — — — Total $ 7,369 $ 32,415 $ 97,564 $ 85,884 $ 16,991 $ 14,692 $ 150 $ 255,065 CRE - Other Pass $ 62,285 $ 323,167 $ 304,661 $ 276,595 $ 82,956 $ 112,999 $ 51,359 $ 1,214,022 Special mention / watch 1,228 1,556 2,106 17,769 4,344 3,390 4,200 34,593 Substandard — 631 1,342 15,342 13,106 11,418 — 41,839 Doubtful — — — — — — — — Total $ 63,513 $ 325,354 $ 308,109 $ 309,706 $ 100,406 $ 127,807 $ 55,559 $ 1,290,454 RRE - One- to four- family first liens Pass / Performing $ 14,958 $ 133,357 $ 101,064 $ 61,623 $ 22,345 $ 93,970 $ 10,811 $ 438,128 Special mention / watch — 702 465 726 1,973 1,091 — 4,957 Substandard / Nonperforming — 257 527 172 172 4,246 — 5,374 Doubtful — — — — — — — — Total $ 14,958 $ 134,316 $ 102,056 $ 62,521 $ 24,490 $ 99,307 $ 10,811 $ 448,459 Term Loans by Origination Year Revolving Loans March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Total RRE - One- to four- family junior liens Performing $ 5,366 $ 35,258 $ 21,775 $ 8,553 $ 2,712 $ 9,338 $ 78,144 $ 161,146 Nonperforming — 24 23 29 149 933 99 1,257 Total $ 5,366 $ 35,282 $ 21,798 $ 8,582 $ 2,861 $ 10,271 $ 78,243 $ 162,403 Consumer Performing $ 6,868 $ 27,975 $ 16,296 $ 6,940 $ 2,894 $ 7,226 $ 4,153 $ 72,352 Nonperforming — — 5 6 8 6 — 25 Total $ 6,868 $ 27,975 $ 16,301 $ 6,946 $ 2,902 $ 7,232 $ 4,153 $ 72,377 Total by Credit Quality Indicator Category Pass $ 158,705 $ 978,219 $ 863,647 $ 615,882 $ 176,190 $ 370,750 $ 331,631 $ 3,495,024 Special mention / watch 1,699 7,909 7,762 26,478 6,743 18,833 22,651 92,075 Substandard 2,539 4,386 14,036 18,779 15,192 36,688 5,866 97,486 Doubtful — — — — — — — — Performing 12,234 63,233 38,071 15,493 5,606 16,564 82,297 233,498 Nonperforming — 24 28 35 157 939 99 1,282 Total $ 175,177 $ 1,053,771 $ 923,544 $ 676,667 $ 203,888 $ 443,774 $ 442,544 $ 3,919,365 Current Period Gross Write-offs Agricultural $ — $ — $ 1 $ — $ — $ — $ — $ 1 Commercial and industrial — — — 105 171 44 — 320 CRE - Construction and development — — — — — — — — CRE - Farmland — — — — — — — — CRE - Multifamily — — — — — — — — CRE - Other — — — — — 18 — 18 RRE - One-to-four-family first liens — — — — — — — — RRE - One-to-four-family junior liens — — — — — — — — Consumer — 142 — — 4 2 — 148 Total Current Period Gross Write-offs $ — $ 142 $ 1 $ 105 $ 175 $ 64 $ — $ 487 The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2022. As of December 31, 2022, there were no 'loss' rated credits. Term Loans by Origination Year Revolving Loans December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 Prior Total Agricultural Pass $ 20,279 $ 12,511 $ 5,398 $ 2,883 $ 939 $ 1,063 $ 65,395 $ 108,468 Special mention / watch 143 1,012 115 36 — 604 1,655 3,565 Substandard 48 646 366 4 7 302 1,914 3,287 Doubtful — — — — — — — — Total $ 20,470 $ 14,169 $ 5,879 $ 2,923 $ 946 $ 1,969 $ 68,964 $ 115,320 Commercial and industrial Pass $ 262,500 $ 232,263 $ 151,567 $ 48,199 $ 27,680 $ 115,877 $ 163,205 $ 1,001,291 Special mention / watch 3,975 3,574 5,465 592 3,299 1,864 12,299 31,068 Substandard 556 166 1,172 756 556 18,585 1,012 22,803 Doubtful — — — — — — — — Total $ 267,031 $ 236,003 $ 158,204 $ 49,547 $ 31,535 $ 136,326 $ 176,516 $ 1,055,162 CRE - Construction and development Pass $ 144,597 $ 73,832 $ 19,324 $ 989 $ 1,058 $ 549 $ 28,069 $ 268,418 Special mention / watch 1,787 499 — — — — — 2,286 Substandard 281 — — — — 6 — 287 Doubtful — — — — — — — — Total $ 146,665 $ 74,331 $ 19,324 $ 989 $ 1,058 $ 555 $ 28,069 $ 270,991 CRE - Farmland Pass $ 55,251 $ 52,802 $ 28,744 $ 7,266 $ 8,406 $ 12,895 $ 1,946 $ 167,310 Special mention / watch 3,058 2,229 1,470 — 225 21 1,693 8,696 Substandard 148 1,974 1,192 1,136 1,459 1,998 — 7,907 Doubtful — — — — — — — — Total $ 58,457 $ 57,005 $ 31,406 $ 8,402 $ 10,090 $ 14,914 $ 3,639 $ 183,913 CRE - Multifamily Pass $ 31,018 $ 93,907 $ 84,573 $ 17,137 $ 2,549 $ 5,161 $ 49 $ 234,394 Special mention / watch 1,000 — 1,567 — 5,931 1,178 — 9,676 Substandard — 7,725 334 — — — — 8,059 Doubtful — — — — — — — — Total $ 32,018 $ 101,632 $ 86,474 $ 17,137 $ 8,480 $ 6,339 $ 49 $ 252,129 CRE - Other Pass $ 322,753 $ 314,376 $ 296,368 $ 79,408 $ 31,041 $ 81,708 $ 51,064 $ 1,176,718 Special mention / watch 8,858 3,399 13,245 10,365 1,137 8,122 2,518 47,644 Substandard 752 589 19,702 13,294 10,197 4,089 — 48,623 Doubtful — — — — — — — — Total $ 332,363 $ 318,364 $ 329,315 $ 103,067 $ 42,375 $ 93,919 $ 53,582 $ 1,272,985 RRE - One- to four- family first liens Pass / Performing $ 139,289 $ 103,534 $ 63,627 $ 23,831 $ 21,868 $ 77,967 $ 11,438 $ 441,554 Special mention / watch 1,074 611 672 1,920 150 702 — 5,129 Substandard / Nonperforming 175 438 174 175 674 2,891 — 4,527 Doubtful — — — — — — — — Total $ 140,538 $ 104,583 $ 64,473 $ 25,926 $ 22,692 $ 81,560 $ 11,438 $ 451,210 RRE - One- to four- family junior liens Performing $ 37,296 $ 22,908 $ 8,906 $ 3,058 $ 3,757 $ 6,330 $ 79,798 $ 162,053 Nonperforming — 23 31 179 756 76 100 1,165 Total $ 37,296 $ 22,931 $ 8,937 $ 3,237 $ 4,513 $ 6,406 $ 79,898 $ 163,218 Consumer Performing $ 32,584 $ 18,979 $ 7,966 $ 3,489 $ 1,646 $ 6,641 $ 4,255 $ 75,560 Nonperforming — 2 16 9 4 5 — 36 Total $ 32,584 $ 18,981 $ 7,982 $ 3,498 $ 1,650 $ 6,646 $ 4,255 $ 75,596 Total by Credit Quality Indicator Category Pass $ 975,687 $ 883,225 $ 649,601 $ 179,713 $ 93,541 $ 295,220 $ 321,166 $ 3,398,153 Special mention / watch 19,895 11,324 22,534 12,913 10,742 12,491 18,165 108,064 Substandard 1,960 11,538 22,940 15,365 12,893 27,871 2,926 95,493 Doubtful — — — — — — — — Performing 69,880 41,887 16,872 6,547 5,403 12,971 84,053 237,613 Nonperforming — 25 47 188 760 81 100 1,201 Total $ 1,067,422 $ 947,999 $ 711,994 $ 214,726 $ 123,339 $ 348,634 $ 426,410 $ 3,840,524 |
Schedule of Changes in Allowance for Credit Losses | The changes in the allowance for credit losses by portfolio segment were as follows: For the Three Months Ended March 31, 2023 and 2022 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total For the Three Months Ended March 31, 2023 Beginning balance $ 923 $ 22,855 $ 20,123 $ 4,678 $ 621 $ 49,200 Charge-offs (1) (320) (18) — (148) (487) Recoveries 26 75 5 4 44 154 Credit loss expense (benefit) (1) (435) (265) 1,723 (137) 47 933 Ending balance $ 513 $ 22,345 $ 21,833 $ 4,545 $ 564 $ 49,800 For the Three Months Ended March 31, 2022 Beginning balance $ 667 $ 17,294 $ 26,120 $ 4,010 $ 609 $ 48,700 Charge-offs — (233) (2,184) (30) (184) (2,631) Recoveries 7 225 117 16 44 409 Credit loss expense (benefit) (1) (294) (11) 4 (88) 111 (278) Ending balance $ 380 $ 17,275 $ 24,057 $ 3,908 $ 580 $ 46,200 (1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.0 million and $0.3 million related to off-balance sheet credit exposures for the three months ended March 31, 2023 and March 31, 2022, respectively. The composition of allowance for credit losses by portfolio segment based on evaluation method were as follows: As of March 31, 2023 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total Loans held for investment, net of unearned income Individually evaluated for impairment $ 1,726 $ 1,443 $ 12,482 $ 1,632 $ — $ 17,283 Collectively evaluated for impairment 104,915 1,079,071 2,036,489 609,230 72,377 3,902,082 Total $ 106,641 $ 1,080,514 $ 2,048,971 $ 610,862 $ 72,377 $ 3,919,365 Allowance for credit losses: Individually evaluated for impairment $ — $ 234 $ 1,664 $ 180 $ — $ 2,078 Collectively evaluated for impairment 513 22,111 20,169 4,365 564 47,722 Total $ 513 $ 22,345 $ 21,833 $ 4,545 $ 564 $ 49,800 As of December 31, 2022 (in thousands) Agricultural Commercial and Industrial Commercial Real Estate Residential Real Estate Consumer Total Loans held for investment, net of unearned income Individually evaluated for impairment $ 2,531 $ 2,184 $ 15,768 $ 1,650 $ — $ 22,133 Collectively evaluated for impairment 112,789 1,052,978 1,964,250 612,778 75,596 3,818,391 Total $ 115,320 $ 1,055,162 $ 1,980,018 $ 614,428 $ 75,596 $ 3,840,524 Allowance for credit losses: Individually evaluated for impairment $ 500 $ 600 $ 705 $ 180 $ — $ 1,985 Collectively evaluated for impairment 423 22,255 19,418 4,498 621 47,215 Total $ 923 $ 22,855 $ 20,123 $ 4,678 $ 621 $ 49,200 |
Schedule of Financing Receivable, Collateral Depend Loans | The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: As of March 31, 2023 (in thousands) Primary Type of Collateral Real Estate Equipment Other Total ACL Allocation Agricultural $ 1,513 $ 213 $ — $ 1,726 $ — Commercial and industrial 716 198 529 1,443 234 Commercial real estate: Construction and development — — — — — Farmland 4,298 — — 4,298 — Multifamily — — — — — Commercial real estate-other 7,985 — 199 8,184 1,664 Residential real estate: One- to four- family first liens 911 — — 911 — One- to four- family junior liens — — 721 721 180 Consumer — — — — — Total $ 15,423 $ 411 $ 1,449 $ 17,283 $ 2,078 As of December 31, 2022 (in thousands) Primary Type of Collateral Real Estate Equipment Other Total ACL Allocation Agricultural $ 68 $ 2,463 $ — $ 2,531 $ 500 Commercial and industrial 856 736 592 2,184 600 Commercial real estate: Construction and development — — — — — Farmland 4,515 — — 4,515 — Multifamily — — — — — Commercial real estate-other 11,006 — 247 11,253 705 Residential real estate: One- to four- family first liens 929 — — 929 — One- to four- family junior liens — — 721 721 180 Consumer — — — — — Total $ 17,374 $ 3,199 $ 1,560 $ 22,133 $ 1,985 |
Schedule of TDRs by Class of Financing Receivable | The following table presents the amortized cost basis of loans as of March 31, 2023 that were modified during the three months ended March 31, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification. As of March 31, 2023 Combination: (dollars in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Term Extension & Interest Rate Reduction Principal Forgiveness & Term Extension Principal Forgiveness, Term Extension, & Interest Rate Reduction Total Class of Financing Receivable Agricultural $ — $ 16 $ 1,502 $ — $ — $ — $ — 1.42 % Commercial and industrial — — 50 — 120 307 — 0.04 % CRE - Other — — — — — — 20 — % Total $ — $ 16 $ 1,552 $ — $ 120 $ 307 $ 20 The following table presents the performance as of March 31, 2023 of loans that were modified while the borrower was experiencing financial difficulty at the time of modification in the last 12 months: As of March 31, 2023 (in thousands) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Agricultural $ 1,518 $ — $ — $ — $ 1,518 Commercial and industrial 477 — — — 477 CRE - Other — — — 20 20 Total $ 1,995 $ — $ — $ 20 $ 2,015 The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2023: March 31, 2023 (dollars in thousands) Principal Forgiveness Weighted Average Interest Rate Reduction Weighted Average Term Extension (Years) Agricultural $ — — % 2.37 Commercial and industrial 63 1.25 % 11.89 CRE - Other 18 7.00 % 2.47 Total $ 81 2.07 % 4.64 |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Balance Sheet Offsetting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the total notional amounts and gross fair values of the Company’s derivatives as of the dates indicated. The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. The fair values of the Company's derivative instrument assets and liabilities are summarized as follows: As of March 31, 2023 As of December 31, 2022 Notional Amount Fair Value Notional Amount Fair Value (in thousands) Assets Liabilities Assets Liabilities Designated as hedging instruments: Fair value hedges: Interest rate swaps $ 23,819 $ 1,995 $ — $ 24,018 $ 2,556 $ — Cash flow hedges Interest rate swaps 50,000 161 23 — — — Total $ 73,819 $ 2,156 $ 23 $ 24,018 $ 2,556 $ — Not designated as hedging instruments: Interest rate swaps $ 307,450 $ 16,256 $ 16,257 $ 331,197 $ 21,084 $ 21,087 RPAs - protection purchased 24,812 — — 9,421 — — Interest rate lock commitments 3,696 101 — 1,372 7 — Interest rate forward loan sales contracts 3,950 — 22 1,400 8 — Total $ 339,908 $ 16,357 $ 16,279 $ 343,390 $ 21,099 $ 21,087 |
Schedule of Derivatives Instrument Impacts on Statements | The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the periods indicated: Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships For the Three Months Ended March 31, 2023 2022 (in thousands) Interest Income Other Income Interest Income Other Income Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded $ 159 $ — $ (104) $ — The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships in subtopic 815-20: Interest contracts: Hedged items 562 — (1,553) — Derivative designated as hedging instruments (402) — 942 — Income statement effect of cash flow hedging relationships in subtopic 815-20: Interest contracts: Amount reclassified from AOCI into income — — — — |
Schedule of Hedged Items In Fair Value Hedging Relationship | As of March 31, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset (in thousands) Loans $ 21,854 $ (1,996) |
Schedule of Derivatives Not Designated as Hedging Instruments | The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the periods indicated: Location in the Consolidated Statements of Income For the Three Months Ended March 31, (in thousands) 2023 2022 Interest rate swaps Other income $ — $ (5) RPAs Other income 69 (1) Interest rate lock commitments Loan revenue 94 381 Interest rate forward loan sales contracts Loan revenue (30) (311) Total $ 133 $ 64 |
Schedule of Offsetting Derivative Assets And Liabilities | The table below presents gross derivatives and the respective collateral received or pledged in the form of other financial instruments as of March 31, 2023 and December 31, 2022, which are generally marketable securities and/or cash. The collateral amounts in the table below are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of over-collateralization are not shown. Further, the net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. Gross Amounts Not Offset in the Balance Sheet (in thousands) Gross Amounts Recognized Gross Amounts Offset in the Balance Sheet Net Amounts presented in the Balance Sheet Financial Instruments Cash Collateral Received / Paid Net Assets /Liabilities As of March 31, 2023 Asset Derivatives $ 18,513 $ — $ 18,513 $ — $ 15,091 $ 3,422 Liability Derivatives 16,302 — 16,302 — 3,000 13,302 As of December 31, 2022 Asset Derivatives $ 23,655 $ — $ 23,655 $ — $ 18,858 $ 4,797 Liability Derivatives 21,087 — 21,087 — 3,460 17,627 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets at the dates indicated: As of March 31, 2023 As of December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible $ 58,245 $ (37,401) $ 20,844 $ 58,245 $ (35,822) $ 22,423 Customer relationship intangible 5,265 (4,648) 617 5,265 (4,490) 775 Other 2,700 (2,638) 62 2,700 (2,623) 77 $ 66,210 $ (44,687) $ 21,523 $ 66,210 $ (42,935) $ 23,275 Indefinite-lived trade name intangible $ 7,040 $ 7,040 |
Schedule of Indefinite-Lived Intangible Assets | The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets at the dates indicated: As of March 31, 2023 As of December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible $ 58,245 $ (37,401) $ 20,844 $ 58,245 $ (35,822) $ 22,423 Customer relationship intangible 5,265 (4,648) 617 5,265 (4,490) 775 Other 2,700 (2,638) 62 2,700 (2,623) 77 $ 66,210 $ (44,687) $ 21,523 $ 66,210 $ (42,935) $ 23,275 Indefinite-lived trade name intangible $ 7,040 $ 7,040 |
Schedule of Future Amortization Expense | The following table provides the estimated future amortization expense for the remaining nine months ending December 31, 2023 and the succeeding annual periods: (in thousands) Core Deposit Intangible Customer Relationship Intangible Other Total 2023 $ 4,098 $ 360 $ 36 $ 4,494 2024 4,705 239 24 4,968 2025 3,751 18 2 3,771 2026 2,797 — — 2,797 2027 1,843 — — 1,843 Thereafter 3,650 — — 3,650 Total $ 20,844 $ 617 $ 62 $ 21,523 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Assets | The components of the Company's other assets as of March 31, 2023 and December 31, 2022 were as follows: (in thousands) March 31, 2023 December 31, 2022 Bank-owned life insurance $ 96,141 $ 95,539 Interest receivable 26,864 27,090 FHLB stock 10,086 19,248 Mortgage servicing rights 13,736 13,421 Operating lease right-of-use assets, net 2,536 2,492 Federal and state income taxes, current 1,630 2,366 Federal and state income taxes, deferred 36,039 39,071 Derivative assets 18,513 23,655 Other receivables/assets 14,040 13,635 $ 219,585 $ 236,517 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | The following table presents the composition of our deposits as of the dates indicated: (in thousands) March 31, 2023 December 31, 2022 Noninterest bearing deposits $ 989,469 $ 1,053,450 Interest checking deposits 1,476,948 1,624,278 Money market deposits 969,238 937,340 Savings deposits 631,811 664,169 Time deposits under $250 965,841 559,466 Time deposits of $250 or more 521,846 630,239 Total deposits $ 5,555,153 $ 5,468,942 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
Schedule of Short-Term Borrowings | The following table summarizes our short-term borrowings as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Weighted Average Rate Balance Weighted Average Rate Balance Securities sold under agreements to repurchase 1.25 % $ 137,481 1.32 % $ 156,373 Federal Home Loan Bank advances 5.05 6,500 4.48 235,500 Total 1.42 % $ 143,981 3.22 % $ 391,873 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of the dates indicated: (in thousands) Face Value Book Value Interest Rate Rate Maturity Date Callable Date March 31, 2023 ATBancorp Statutory Trust I $ 7,732 $ 6,938 Three-month LIBOR + 1.68% 6.55 % 06/15/2036 06/15/2011 ATBancorp Statutory Trust II 12,372 10,985 Three-month LIBOR + 1.65% 6.52 % 09/15/2037 06/15/2012 Barron Investment Capital Trust I 2,062 1,839 Three-month LIBOR + 2.15% 7.17 % 09/23/2036 09/23/2011 Central Bancshares Capital Trust II 7,217 6,934 Three-month LIBOR + 3.50% 8.37 % 03/15/2038 03/15/2013 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 6.46 % 12/15/2037 12/15/2012 Total $ 44,847 $ 42,160 December 31, 2022 ATBancorp Statutory Trust I $ 7,732 $ 6,928 Three-month LIBOR + 1.68% 6.45 % 06/15/2036 06/15/2011 ATBancorp Statutory Trust II 12,372 10,969 Three-month LIBOR + 1.65% 6.42 % 09/15/2037 06/15/2012 Barron Investment Capital Trust I 2,062 1,832 Three-month LIBOR + 2.15% 6.88 % 09/23/2036 09/23/2011 Central Bancshares Capital Trust II 7,217 6,923 Three-month LIBOR + 3.50% 8.27 % 03/15/2038 03/15/2013 MidWestOne Statutory Trust II 15,464 15,464 Three-month LIBOR + 1.59% 6.36 % 12/15/2037 12/15/2012 Total $ 44,847 $ 42,116 Other long-term borrowings were as follows as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (in thousands) Weighted Average Rate Balance Weighted Average Rate Balance Finance lease payable 8.89 % $ 744 8.89 % $ 787 FHLB borrowings 2.91 17,288 2.91 17,301 Note payable to unaffiliated bank 6.22 13,750 5.67 15,000 Total 4.48 % $ 31,782 4.30 % $ 33,088 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | As of March 31, 2023, FHLB borrowings were as follows: (in thousands) Weighted Average Rate Amount Due in 2023 2.79 % $ 11,000 Due in 2024 3.11 % 6,250 Total 2.91 % 17,250 Valuation adjustment from acquisition accounting 38 Total $ 17,288 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents the computation of basic and diluted earnings per common share for the periods indicated: Three Months Ended March 31, (dollars in thousands, except per share amounts) 2023 2022 Basic Earnings Per Share: Net income $ 1,397 $ 13,895 Weighted average shares outstanding 15,649,651 15,683,136 Basic earnings per common share $ 0.09 $ 0.89 Diluted Earnings Per Share: Net income $ 1,397 $ 13,895 Weighted average shares outstanding, including all dilutive potential shares 15,691,168 15,717,960 Diluted earnings per common share $ 0.09 $ 0.88 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations | A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect as of March 31, 2023 and December 31, 2022, is presented below: Actual For Capital Adequacy Purposes With Capital Conservation Buffer (1) To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio At March 31, 2023 Consolidated: Total capital/risk weighted assets $654,151 12.31% $557,940 10.50% N/A N/A Tier 1 capital/risk weighted assets 540,980 10.18 451,666 8.50 N/A N/A Common equity tier 1 capital/risk weighted assets 498,820 9.39 371,960 7.00 N/A N/A Tier 1 leverage capital/average assets 540,980 8.30 260,813 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $653,184 12.31% $557,101 10.50% $530,573 10.00% Tier 1 capital/risk weighted assets 605,014 11.40 450,987 8.50 424,458 8.00 Common equity tier 1 capital/risk weighted assets 605,014 11.40 371,401 7.00 344,872 6.50 Tier 1 leverage capital/average assets 605,014 9.28 260,685 4.00 325,857 5.00 At December 31, 2022 Consolidated: Total capital/risk weighted assets $653,380 12.07% $568,452 10.50% N/A N/A Tier 1 capital/risk weighted assets 544,300 10.05 460,175 8.50 N/A N/A Common equity tier 1 capital/risk weighted assets 502,184 9.28 378,968 7.00 N/A N/A Tier 1 leverage capital/average assets 544,300 8.35 260,891 4.00 N/A N/A MidWest One Bank: Total capital/risk weighted assets $654,297 12.10% $567,684 10.50% $540,652 10.00% Tier 1 capital/risk weighted assets 610,217 11.29 459,554 8.50 432,522 8.00 Common equity tier 1 capital/risk weighted assets 610,217 11.29 378,456 7.00 351,424 6.50 Tier 1 leverage capital/average assets 610,217 9.36 260,776 4.00 325,970 5.00 (1) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Bank’s commitments as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Commitments to extend credit $ 1,205,902 $ 1,190,607 Commitments to sell loans 2,553 612 Standby letters of credit 17,374 18,398 Total $ 1,225,829 $ 1,209,617 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measured on Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis as of the dates indicated, by level within the fair value hierarchy: Fair Value Measurement at March 31, 2023 Using (in thousands) Total Level 1 Level 2 Level 3 Assets: Available for sale debt securities: State and political subdivisions $ 184,581 $ — $ 184,581 $ — Mortgage-backed securities 5,679 — 5,679 — Collateralized loan obligations 54,074 — 54,074 — Collateralized mortgage obligations 144,666 — 144,666 — Corporate debt securities 565,074 — 565,074 — Derivative assets 18,513 — 18,412 101 Mortgage servicing rights 13,736 — 13,736 — Liabilities: Derivative liabilities $ 16,302 $ — $ 16,302 $ — Fair Value Measurement at December 31, 2022 Using (in thousands) Total Level 1 Level 2 Level 3 Assets: Debt securities available for sale: U.S. Government agencies and corporations $ 7,345 $ — $ 7,345 $ — State and political subdivisions 285,356 — 285,356 — Mortgage-backed securities 5,944 — 5,944 — Collateralized mortgage obligations 147,193 — 147,193 — Corporate debt securities 707,709 — 707,709 — Derivative assets 23,655 — 23,648 7 Mortgage servicing rights 13,421 — 13,421 — Liabilities: Derivative liabilities $ 21,087 $ — $ 21,087 $ — |
Schedule of Valuation Techniques | The following table presents the valuation technique, significant unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy as of the dates indicated: Fair Value at (dollars in thousands) March 31, 2023 December 31, 2022 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Interest rate lock commitments $ 101 $ 7 Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions Pull-through rate 71% - 100% 92% The following table presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy as of the dates indicated: Fair Value at (dollars in thousands) March 31, 2023 December 31, 2022 Valuation Techniques(s) Unobservable Input Range of Inputs Weighted Average Collateral dependent individually analyzed loans $ 3,666 $ 3,159 Fair value of collateral Valuation adjustments —% - 100% 13% Foreclosed assets, net $ — $ 103 Fair value of collateral Valuation adjustments N/A (1) (1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period. |
Schedule of Fair Value Measured on Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis as of the dates indicated: Fair Value Measurement at March 31, 2023 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent individually analyzed loans $ 3,666 $ — $ — $ 3,666 Fair Value Measurement at December 31, 2022 Using (in thousands) Total Level 1 Level 2 Level 3 Collateral dependent individually analyzed loans $ 3,159 $ — $ — $ 3,159 Foreclosed assets, net 103 — — 103 |
Schedule of Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair value of financial instruments at March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 (in thousands) Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 69,218 $ 69,218 $ 69,218 $ — $ — Debt securities available for sale 954,074 954,074 — 954,074 — Debt securities held to maturity 1,117,709 938,535 — 938,535 — Loans held for sale 2,553 2,594 — 2,594 — Loans held for investment, net 3,869,565 3,767,718 — — 3,767,718 Interest receivable 26,864 26,864 — 26,864 — FHLB stock 10,086 10,086 — 10,086 — Derivative assets 18,513 18,513 — 18,412 101 Financial liabilities: Noninterest bearing deposits 989,469 989,469 989,469 — — Interest bearing deposits 4,565,684 4,548,622 3,077,997 1,470,625 — Short-term borrowings 143,981 143,981 143,981 — — Finance leases payable 744 744 — 744 — FHLB borrowings 17,288 17,111 — 17,111 — Junior subordinated notes issued to capital trusts 42,160 36,067 — 36,067 — Subordinated debentures 64,039 62,598 — 62,598 — Other long-term debt 13,750 13,750 — 13,750 — Derivative liabilities 16,302 16,302 — 16,302 — December 31, 2022 (in thousands) Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 86,435 $ 86,435 $ 86,435 $ — $ — Debt securities available for sale 1,153,547 1,153,547 — 1,153,547 — Debt securities held to maturity 1,129,421 924,894 — 924,894 — Loans held for sale 612 622 — 622 — Loans held for investment, net 3,791,324 3,702,527 — — 3,702,527 Interest receivable 27,090 27,090 — 27,090 — FHLB stock 19,248 19,248 — 19,248 — Derivative assets 23,655 23,655 — 23,648 7 Financial liabilities: Noninterest bearing deposits 1,053,450 1,053,450 1,053,450 — — Interest bearing deposits 4,415,492 4,393,315 3,225,787 1,167,528 — Short-term borrowings 391,873 391,873 391,873 — — Finance leases payable 787 787 — 787 — FHLB borrowings 17,301 17,032 — 17,032 — Junior subordinated notes issued to capital trusts 42,116 39,023 — 39,023 — Subordinated debentures 64,006 64,004 — 64,004 — Other long-term debt 15,000 15,000 — 15,000 — Derivative liabilities 21,087 21,087 — 21,087 — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | (in thousands) Classification March 31, 2023 December 31, 2022 Operating lease right-of-use assets Other assets $ 2,536 $ 2,492 Finance lease right-of-use asset Premises and equipment, net 326 350 Total right-of-use assets $ 2,862 $ 2,842 Operating lease liability Other liabilities $ 3,364 $ 3,359 Finance lease liability Long-term debt 744 787 Total lease liabilities $ 4,108 $ 4,146 Weighted-average remaining lease term: Operating leases 10.08 years 9.23 years Finance lease 3.42 years 3.67 years Weighted-average discount rate: Operating leases 4.33 % 4.23 % Finance lease 8.89 % 8.89 % |
Schedule of Lease Costs and Other Information | The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Three Months Ended March 31, (in thousands) 2023 2022 Lease Costs Operating lease cost $ 292 $ 296 Variable lease cost 7 21 Interest on lease liabilities (1) 17 20 Amortization of right-of-use assets 24 24 Net lease cost $ 340 $ 361 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 605 $ 596 Operating cash flows from finance lease 17 20 Finance cash flows from finance lease 43 39 Supplemental non-cash information on lease liabilities: Right-of-use assets obtained in exchange for new operating lease liabilities 292 — (1) Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net. |
Schedule of Finance Lease Liability Maturity | Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining nine-months ending December 31, 2023 and the succeeding annual periods were as follows: (in thousands) Finance Leases Operating Leases December 31, 2023 $ 184 $ 845 December 31, 2024 250 892 December 31, 2025 255 422 December 31, 2026 172 328 December 31, 2027 — 243 Thereafter — 1,708 Total undiscounted lease payment $ 861 $ 4,438 Amounts representing interest (117) (1,074) Lease liability $ 744 $ 3,364 |
Schedule of Operating Lease Liability Maturity | Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining nine-months ending December 31, 2023 and the succeeding annual periods were as follows: (in thousands) Finance Leases Operating Leases December 31, 2023 $ 184 $ 845 December 31, 2024 250 892 December 31, 2025 255 422 December 31, 2026 172 328 December 31, 2027 — 243 Thereafter — 1,708 Total undiscounted lease payment $ 861 $ 4,438 Amounts representing interest (117) (1,074) Lease liability $ 744 $ 3,364 |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |
Jun. 09, 2022 USD ($) | Mar. 31, 2023 segment | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of reportable segments | segment | 1 | |
IOFB | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash consideration | $ | $ 46,672 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - IOFB $ in Thousands | Jun. 09, 2022 USD ($) |
Business Acquisition [Line Items] | |
Interest acquired | 100% |
Cash consideration | $ 46,672 |
Loans acquired, net | 281,300 |
Purchase price of PCD loans | $ 11,020 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - IOFB $ in Thousands | Jun. 09, 2022 USD ($) |
Merger consideration | |
Cash consideration | $ 46,672 |
Assets acquired | |
Cash and due from banks | 10,192 |
Interest earning deposits in banks | 67,855 |
Debt securities | 119,820 |
Loans held for investment | 281,326 |
Premises and equipment | 7,363 |
Core deposit intangible | 16,500 |
Other assets | 14,140 |
Total assets acquired | 517,196 |
Liabilities assumed | |
Deposits | (463,638) |
Other liabilities | (3,117) |
Total liabilities assumed | (466,755) |
Identifiable net assets acquired, at fair value | 50,441 |
Bargain Purchase Gain | $ 3,769 |
Business Combinations - Summary
Business Combinations - Summary of PCD Loans at Acquisition (Details) - IOFB $ in Thousands | Jun. 09, 2022 USD ($) |
Business Acquisition [Line Items] | |
Par value of PCD loans acquired | $ 15,396 |
PCD ACL at acquisition | (3,371) |
Non-credit discount on PCD loans | (1,005) |
Purchase price of PCD loans | $ 11,020 |
Business Combinations - Acquisi
Business Combinations - Acquisition-Related Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Noninterest Expense | ||
Compensation and employee benefits | $ 19,607 | $ 18,664 |
Equipment | 2,171 | 1,901 |
Legal and professional | 1,736 | 2,353 |
Data processing | 1,363 | 1,231 |
Communications | 261 | 272 |
Other | 1,976 | 1,879 |
IOFB | ||
Noninterest Expense | ||
Compensation and employee benefits | 70 | 0 |
Equipment | 0 | 5 |
Legal and professional | 0 | 63 |
Data processing | 65 | 38 |
Marketing | 0 | 7 |
Communications | 0 | 1 |
Other | 1 | 14 |
Total acquisition-related expenses | $ 136 | $ 128 |
Debt Securities - Additional In
Debt Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2022 USD ($) | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Schedule of Available-for-sale Securities | |||
AFS transferred to held-to-maturity classifications, fair value | $ 1,250,000 | ||
Net unrealized after tax loss from transfer of AFS to held-to-maturity classification | $ 11,500 | $ 8,200 | |
Debt securities available for sale | 954,074 | $ 1,153,547 | |
Interest receivable | $ 26,864 | $ 27,090 | |
Securities in continuous unrealized loss position | security | 386 | 594 | |
Accumulated unrealized losses | $ 95,357 | $ 108,356 | |
Asset Pledged as Collateral without Right | |||
Schedule of Available-for-sale Securities | |||
Debt securities available for sale | 1,190,000 | 690,200 | |
Debt Securities Available For Sale Securities | |||
Schedule of Available-for-sale Securities | |||
Interest receivable | 6,800 | 7,600 | |
Debt, Held to Maturity Securities | |||
Schedule of Available-for-sale Securities | |||
Interest receivable | 3,600 | 3,700 | |
State and political subdivisions | |||
Schedule of Available-for-sale Securities | |||
Debt securities available for sale | $ 184,581 | $ 285,356 | |
Securities in continuous unrealized loss position | security | 187 | 380 | |
Accumulated unrealized losses | $ 11,940 | $ 18,244 | |
Mortgage-backed securities | |||
Schedule of Available-for-sale Securities | |||
Debt securities available for sale | $ 5,679 | $ 5,944 | |
Securities in continuous unrealized loss position | security | 25 | 27 | |
Accumulated unrealized losses | $ 177 | $ 232 | |
Collateralized mortgage obligations | |||
Schedule of Available-for-sale Securities | |||
Debt securities available for sale | $ 144,666 | $ 147,193 | |
Securities in continuous unrealized loss position | security | 20 | 20 | |
Accumulated unrealized losses | $ 23,469 | $ 25,375 | |
Mortgage backed securities and collateralized mortgage obligations | |||
Schedule of Available-for-sale Securities | |||
Accumulated unrealized losses | 23,600 | ||
Corporate debt securities | |||
Schedule of Available-for-sale Securities | |||
Debt securities available for sale | $ 565,074 | $ 707,709 | |
Securities in continuous unrealized loss position | security | 152 | 159 | |
Accumulated unrealized losses | $ 59,621 | $ 64,252 |
Debt Securities - Schedule of A
Debt Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Schedule of Available-for-sale Securities | |||
Amortized Cost | $ 1,049,380 | $ 1,261,740 | |
Gross Unrealized Gains | 51 | 163 | |
Gross Unrealized Losses | 95,357 | 108,356 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Debt securities available for sale | 954,074 | 1,153,547 | |
Schedule of Held-to-maturity Securities | |||
Amortized cost | 1,117,709 | 1,129,421 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 179,174 | 204,527 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Fair Value | 938,535 | 924,894 | |
Collateralized loan obligations | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 54,224 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 150 | ||
Allowance for Credit Loss related to Debt Securities | 0 | ||
Debt securities available for sale | 54,074 | ||
Schedule of Held-to-maturity Securities | |||
Amortized cost | 0 | ||
Fair Value | 0 | ||
U.S. Government agencies and corporations | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 7,598 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 253 | ||
Allowance for Credit Loss related to Debt Securities | 0 | ||
Debt securities available for sale | 7,345 | ||
State and political subdivisions | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 196,497 | 303,573 | |
Gross Unrealized Gains | 24 | 27 | |
Gross Unrealized Losses | 11,940 | 18,244 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Debt securities available for sale | 184,581 | 285,356 | |
Schedule of Held-to-maturity Securities | |||
Amortized cost | 538,182 | 538,746 | |
Gross Unrealized Gains | 0 | 0 | $ 200 |
Gross Unrealized Losses | 71,250 | 88,349 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Fair Value | 466,932 | 450,397 | |
Mortgage-backed securities | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 5,851 | 6,165 | |
Gross Unrealized Gains | 5 | 11 | |
Gross Unrealized Losses | 177 | 232 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Debt securities available for sale | 5,679 | 5,944 | |
Schedule of Held-to-maturity Securities | |||
Amortized cost | 79,597 | 81,032 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 11,772 | 12,851 | 10 |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Fair Value | 67,825 | 68,181 | |
Collateralized mortgage obligations | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 168,135 | 172,568 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 23,469 | 25,375 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Debt securities available for sale | 144,666 | 147,193 | |
Schedule of Held-to-maturity Securities | |||
Amortized cost | 499,930 | 509,643 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 96,152 | 103,327 | $ 11,400 |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Fair Value | 403,778 | 406,316 | |
Corporate debt securities | |||
Schedule of Available-for-sale Securities | |||
Amortized Cost | 624,673 | 771,836 | |
Gross Unrealized Gains | 22 | 125 | |
Gross Unrealized Losses | 59,621 | 64,252 | |
Allowance for Credit Loss related to Debt Securities | 0 | 0 | |
Debt securities available for sale | $ 565,074 | $ 707,709 |
Debt Securities - Available for
Debt Securities - Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 386 | 594 |
Less than 12 Months, Fair Value | $ 240,365 | $ 705,489 |
Less than 12 Months, Unrealized Losses | 10,216 | 43,837 |
12 Months or More, Fair Value | 648,159 | 381,157 |
12 Months or More, Unrealized Loss | 85,141 | 64,519 |
Fair Value | 888,524 | 1,086,646 |
Unrealized Losses | $ 95,357 | $ 108,356 |
Collateralized loan obligations | ||
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 2 | |
Less than 12 Months, Fair Value | $ 9,708 | |
Less than 12 Months, Unrealized Losses | 150 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Loss | 0 | |
Fair Value | 9,708 | |
Unrealized Losses | $ 150 | |
U.S. Government agencies and corporations | ||
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 8 | |
Less than 12 Months, Fair Value | $ 7,345 | |
Less than 12 Months, Unrealized Losses | 253 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Loss | 0 | |
Fair Value | 7,345 | |
Unrealized Losses | $ 253 | |
State and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 187 | 380 |
Less than 12 Months, Fair Value | $ 58,853 | $ 248,339 |
Less than 12 Months, Unrealized Losses | 2,606 | 14,553 |
12 Months or More, Fair Value | 111,956 | 20,631 |
12 Months or More, Unrealized Loss | 9,334 | 3,691 |
Fair Value | 170,809 | 268,970 |
Unrealized Losses | $ 11,940 | $ 18,244 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 25 | 27 |
Less than 12 Months, Fair Value | $ 969 | $ 5,323 |
Less than 12 Months, Unrealized Losses | 26 | 231 |
12 Months or More, Fair Value | 4,269 | 45 |
12 Months or More, Unrealized Loss | 151 | 1 |
Fair Value | 5,238 | 5,368 |
Unrealized Losses | $ 177 | $ 232 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 20 | 20 |
Less than 12 Months, Fair Value | $ 37,129 | $ 75,041 |
Less than 12 Months, Unrealized Losses | 2,313 | 7,121 |
12 Months or More, Fair Value | 107,537 | 72,152 |
12 Months or More, Unrealized Loss | 21,156 | 18,254 |
Fair Value | 144,666 | 147,193 |
Unrealized Losses | $ 23,469 | $ 25,375 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities | ||
Number of Securities | security | 152 | 159 |
Less than 12 Months, Fair Value | $ 133,706 | $ 369,441 |
Less than 12 Months, Unrealized Losses | 5,121 | 21,679 |
12 Months or More, Fair Value | 424,397 | 288,329 |
12 Months or More, Unrealized Loss | 54,500 | 42,573 |
Fair Value | 558,103 | 657,770 |
Unrealized Losses | $ 59,621 | $ 64,252 |
Debt Securities - Proceeds and
Debt Securities - Proceeds and Gross Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Securities [Abstract] | ||
Proceeds from sales of debt securities available for sale | $ 218,667 | $ 0 |
Gross realized gains from sales of debt securities available for sale | 0 | 0 |
Gross realized losses from sales of debt securities available for sale | (13,170) | 0 |
Net realized gain from sales of debt securities available for sale | (13,170) | 0 |
Net gains from call or maturity of debt securities | $ 0 | $ 40 |
Debt Securities - Investments C
Debt Securities - Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 49,536 | |
Due after one year through five years, Amortized Cost | 563,764 | |
Due after five years through ten years, Amortized Cost | 176,129 | |
Due after ten years, Amortized Cost | 31,741 | |
Total maturing securities, Amortized Cost | 821,170 | |
Amortized Cost | 1,049,380 | $ 1,261,740 |
Fair Value | ||
Due in one year or less, estimated fair value | 49,128 | |
Due after one year through five years, estimated fair value | 516,820 | |
Due after five years through ten years, estimated fair value | 155,873 | |
Due after ten years, estimated fair value | 27,834 | |
Total maturing securities, fair value | 749,655 | |
Debt securities available for sale at fair value | 954,074 | 1,153,547 |
Amortized Cost | ||
Due in one year or less, Amortized Cost | 4,390 | |
Due after one year through five years, Amortized Cost | 116,601 | |
Due after five years through ten years, Amortized Cost | 207,827 | |
Due after ten years, Amortized Cost | 209,364 | |
Total maturing securities, Amortized Cost | 538,182 | |
Held to maturity securities at Amortized Cost | 1,117,709 | 1,129,421 |
Fair Value | ||
Due in one year or less, estimated fair value | 4,375 | |
Due after one year through five years, estimated fair value | 105,326 | |
Due after five years through ten years, estimated fair value | 180,227 | |
Due after ten years, estimated fair value | 177,004 | |
Total maturing securities, fair value | 466,932 | |
Debt securities held to maturity | 938,535 | 924,894 |
Collateralized loan obligations | ||
Amortized Cost | ||
Amortized Cost | 54,224 | |
Fair Value | ||
Debt securities available for sale at fair value | 54,074 | |
Amortized Cost | ||
Held to maturity securities at Amortized Cost | 0 | |
Fair Value | ||
Debt securities held to maturity | 0 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 5,851 | 6,165 |
Fair Value | ||
Debt securities available for sale at fair value | 5,679 | 5,944 |
Amortized Cost | ||
Held to maturity securities at Amortized Cost | 79,597 | 81,032 |
Fair Value | ||
Debt securities held to maturity | 67,825 | 68,181 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Amortized Cost | 168,135 | 172,568 |
Fair Value | ||
Debt securities available for sale at fair value | 144,666 | 147,193 |
Amortized Cost | ||
Held to maturity securities at Amortized Cost | 499,930 | 509,643 |
Fair Value | ||
Debt securities held to maturity | $ 403,778 | $ 406,316 |
Loans Receivable and the Allo_3
Loans Receivable and the Allowance for Credit Losses - Composition of Loans by Lending Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | $ 3,919,365 | $ 3,840,524 | ||
Allowance for credit losses | (49,800) | (49,200) | $ (46,200) | $ (48,700) |
Total loans held for investment, net | 3,869,565 | 3,791,324 | ||
Asset Pledged as Collateral without Right | FHLB borrowings | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 1,240,000 | 1,010,000 | ||
Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 106,641 | 115,320 | ||
Allowance for credit losses | (513) | (923) | (380) | (667) |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 1,080,514 | 1,055,162 | ||
Allowance for credit losses | (22,345) | (22,855) | (17,275) | (17,294) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 2,048,971 | 1,980,018 | ||
Allowance for credit losses | (21,833) | (20,123) | (24,057) | (26,120) |
Commercial real estate | Construction & development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 320,924 | 270,991 | ||
Commercial real estate | Farmland | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 182,528 | 183,913 | ||
Commercial real estate | Multifamily | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 255,065 | 252,129 | ||
Commercial real estate | Commercial real estate-other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 1,290,454 | 1,272,985 | ||
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 610,862 | 614,428 | ||
Allowance for credit losses | (4,545) | (4,678) | (3,908) | (4,010) |
Residential real estate | One- to four- family first liens | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 448,459 | 451,210 | ||
Residential real estate | One- to four- family junior liens | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 162,403 | 163,218 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for investment, net of unearned income | 72,377 | 75,596 | ||
Allowance for credit losses | $ (564) | $ (621) | $ (580) | $ (609) |
Loans Receivable and the Allo_4
Loans Receivable and the Allowance for Credit Losses - Amortized Cost Basis Based on Delinquency Status (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | $ 3,919,365 | $ 3,840,524 |
90 Days or More Past Due And Accruing | 2 | 565 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 3,909,207 | 3,822,849 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 4,878 | 10,999 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 622 | 1,205 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 4,658 | 5,471 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 106,641 | 115,320 |
90 Days or More Past Due And Accruing | 0 | 0 |
Agricultural | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 105,506 | 114,922 |
Agricultural | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 851 | 100 |
Agricultural | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Agricultural | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 284 | 298 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 1,080,514 | 1,055,162 |
90 Days or More Past Due And Accruing | 0 | 0 |
Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 1,078,687 | 1,052,406 |
Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 627 | 922 |
Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 378 | 111 |
Commercial and industrial | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 822 | 1,723 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 2,048,971 | 1,980,018 |
90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 2,046,698 | 1,972,023 |
Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 31 | 6,389 |
Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 48 | 45 |
Commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 2,194 | 1,561 |
Commercial real estate | Construction & development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 320,924 | 270,991 |
90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate | Construction & development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 320,924 | 270,905 |
Commercial real estate | Construction & development | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 86 |
Commercial real estate | Construction & development | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Commercial real estate | Construction & development | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Commercial real estate | Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 182,528 | 183,913 |
90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate | Farmland | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 180,721 | 182,115 |
Commercial real estate | Farmland | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 31 | 729 |
Commercial real estate | Farmland | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Commercial real estate | Farmland | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 1,776 | 1,069 |
Commercial real estate | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 255,065 | 252,129 |
90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate | Multifamily | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 255,065 | 252,129 |
Commercial real estate | Multifamily | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Commercial real estate | Multifamily | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Commercial real estate | Multifamily | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 0 |
Commercial real estate | Commercial real estate-other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 1,290,454 | 1,272,985 |
90 Days or More Past Due And Accruing | 0 | 0 |
Commercial real estate | Commercial real estate-other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 1,289,988 | 1,266,874 |
Commercial real estate | Commercial real estate-other | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 0 | 5,574 |
Commercial real estate | Commercial real estate-other | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 48 | 45 |
Commercial real estate | Commercial real estate-other | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 418 | 492 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 610,862 | 614,428 |
90 Days or More Past Due And Accruing | 2 | 565 |
Residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 606,081 | 608,055 |
Residential real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 3,244 | 3,478 |
Residential real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 186 | 1,032 |
Residential real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 1,351 | 1,863 |
Residential real estate | One- to four- family first liens | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 448,459 | 451,210 |
90 Days or More Past Due And Accruing | 2 | 565 |
Residential real estate | One- to four- family first liens | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 444,724 | 446,066 |
Residential real estate | One- to four- family first liens | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 3,124 | 3,177 |
Residential real estate | One- to four- family first liens | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 156 | 954 |
Residential real estate | One- to four- family first liens | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 455 | 1,013 |
Residential real estate | One- to four- family junior liens | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 162,403 | 163,218 |
90 Days or More Past Due And Accruing | 0 | 0 |
Residential real estate | One- to four- family junior liens | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 161,357 | 161,989 |
Residential real estate | One- to four- family junior liens | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 120 | 301 |
Residential real estate | One- to four- family junior liens | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 30 | 78 |
Residential real estate | One- to four- family junior liens | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 896 | 850 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 72,377 | 75,596 |
90 Days or More Past Due And Accruing | 0 | 0 |
Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 72,235 | 75,443 |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 125 | 110 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | 10 | 17 |
Consumer | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of unearned income | $ 7 | $ 26 |
Loans Receivable and the Allo_5
Loans Receivable and the Allowance for Credit Losses - Nonaccrual Status and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | $ 14,440 | $ 15,256 | |
Nonaccrual with no Allowance for Credit Losses | 7,514 | 9,902 | |
90 Days or More Past Due And Accruing | 2 | 565 | |
Financing receivable, nonaccrual, interest income | 56 | $ 70 | |
Agricultural | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 307 | 377 | |
Nonaccrual with no Allowance for Credit Losses | 224 | 281 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 2,192 | 2,728 | |
Nonaccrual with no Allowance for Credit Losses | 483 | 1,049 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 8,122 | 8,675 | |
Nonaccrual with no Allowance for Credit Losses | 5,897 | 7,644 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Commercial real estate | Construction & development | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Nonaccrual with no Allowance for Credit Losses | 0 | 0 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Commercial real estate | Farmland | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 1,931 | 2,278 | |
Nonaccrual with no Allowance for Credit Losses | 1,776 | 1,997 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Commercial real estate | Multifamily | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Nonaccrual with no Allowance for Credit Losses | 0 | 0 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Commercial real estate | Commercial real estate-other | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 6,191 | 6,397 | |
Nonaccrual with no Allowance for Credit Losses | 4,121 | 5,647 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Residential real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 3,794 | 3,440 | |
Nonaccrual with no Allowance for Credit Losses | 910 | 928 | |
90 Days or More Past Due And Accruing | 2 | 565 | |
Residential real estate | One- to four- family first liens | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 2,536 | 2,275 | |
Nonaccrual with no Allowance for Credit Losses | 910 | 928 | |
90 Days or More Past Due And Accruing | 2 | 565 | |
Residential real estate | One- to four- family junior liens | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 1,258 | 1,165 | |
Nonaccrual with no Allowance for Credit Losses | 0 | 0 | |
90 Days or More Past Due And Accruing | 0 | 0 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual | 25 | 36 | |
Nonaccrual with no Allowance for Credit Losses | 0 | 0 | |
90 Days or More Past Due And Accruing | $ 0 | $ 0 |
Loans Receivable and the Allo_6
Loans Receivable and the Allowance for Credit Losses - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | $ 175,177 | $ 1,067,422 | |
2022 | 1,053,771 | 947,999 | |
2021 | 923,544 | 711,994 | |
2020 | 676,667 | 214,726 | |
2019 | 203,888 | 123,339 | |
Prior | 443,774 | 348,634 | |
Revolving Loans | 442,544 | 426,410 | |
Loans held for investment, net of unearned income | 3,919,365 | 3,840,524 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 142 | ||
2021 | 1 | ||
2020 | 105 | ||
2019 | 175 | ||
Prior | 64 | ||
Revolving Loans | 0 | ||
Total | 487 | $ 2,631 | |
Substandard / Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 12,234 | 69,880 | |
2022 | 63,233 | 41,887 | |
2021 | 38,071 | 16,872 | |
2020 | 15,493 | 6,547 | |
2019 | 5,606 | 5,403 | |
Prior | 16,564 | 12,971 | |
Revolving Loans | 82,297 | 84,053 | |
Loans held for investment, net of unearned income | 233,498 | 237,613 | |
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 24 | 25 | |
2021 | 28 | 47 | |
2020 | 35 | 188 | |
2019 | 157 | 760 | |
Prior | 939 | 81 | |
Revolving Loans | 99 | 100 | |
Loans held for investment, net of unearned income | 1,282 | 1,201 | |
Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 9,012 | 20,470 | |
2022 | 15,889 | 14,169 | |
2021 | 12,391 | 5,879 | |
2020 | 4,999 | 2,923 | |
2019 | 1,609 | 946 | |
Prior | 2,245 | 1,969 | |
Revolving Loans | 60,496 | 68,964 | |
Loans held for investment, net of unearned income | 106,641 | 115,320 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 1 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 1 | 0 | |
Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 38,509 | 267,031 | |
2022 | 258,348 | 236,003 | |
2021 | 228,621 | 158,204 | |
2020 | 148,376 | 49,547 | |
2019 | 45,671 | 31,535 | |
Prior | 157,048 | 136,326 | |
Revolving Loans | 203,941 | 176,516 | |
Loans held for investment, net of unearned income | 1,080,514 | 1,055,162 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 105 | ||
2019 | 171 | ||
Prior | 44 | ||
Revolving Loans | 0 | ||
Total | 320 | 233 | |
Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans held for investment, net of unearned income | 2,048,971 | 1,980,018 | |
Current Period Gross Write-offs | |||
Total | 18 | 2,184 | |
Commercial real estate | Construction & development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 22,423 | 146,665 | |
2022 | 168,154 | 74,331 | |
2021 | 80,871 | 19,324 | |
2020 | 20,349 | 989 | |
2019 | 968 | 1,058 | |
Prior | 1,538 | 555 | |
Revolving Loans | 26,621 | 28,069 | |
Loans held for investment, net of unearned income | 320,924 | 270,991 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | ||
Commercial real estate | Farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 7,159 | 58,457 | |
2022 | 56,038 | 57,005 | |
2021 | 55,833 | 31,406 | |
2020 | 29,304 | 8,402 | |
2019 | 7,990 | 10,090 | |
Prior | 23,634 | 14,914 | |
Revolving Loans | 2,570 | 3,639 | |
Loans held for investment, net of unearned income | 182,528 | 183,913 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | ||
Commercial real estate | Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 7,369 | 32,018 | |
2022 | 32,415 | 101,632 | |
2021 | 97,564 | 86,474 | |
2020 | 85,884 | 17,137 | |
2019 | 16,991 | 8,480 | |
Prior | 14,692 | 6,339 | |
Revolving Loans | 150 | 49 | |
Loans held for investment, net of unearned income | 255,065 | 252,129 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | ||
Commercial real estate | Commercial real estate-other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 63,513 | 332,363 | |
2022 | 325,354 | 318,364 | |
2021 | 308,109 | 329,315 | |
2020 | 309,706 | 103,067 | |
2019 | 100,406 | 42,375 | |
Prior | 127,807 | 93,919 | |
Revolving Loans | 55,559 | 53,582 | |
Loans held for investment, net of unearned income | 1,290,454 | 1,272,985 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 18 | ||
Revolving Loans | 0 | ||
Total | 18 | ||
Residential real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans held for investment, net of unearned income | 610,862 | 614,428 | |
Current Period Gross Write-offs | |||
Total | 0 | 30 | |
Residential real estate | One- to four- family first liens | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 14,958 | 140,538 | |
2022 | 134,316 | 104,583 | |
2021 | 102,056 | 64,473 | |
2020 | 62,521 | 25,926 | |
2019 | 24,490 | 22,692 | |
Prior | 99,307 | 81,560 | |
Revolving Loans | 10,811 | 11,438 | |
Loans held for investment, net of unearned income | 448,459 | 451,210 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | ||
Residential real estate | One- to four- family first liens | Substandard / Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 175 | ||
2022 | 438 | ||
2021 | 174 | ||
2020 | 175 | ||
2019 | 674 | ||
Prior | 2,891 | ||
Revolving Loans | 0 | ||
Loans held for investment, net of unearned income | 4,527 | ||
Residential real estate | One- to four- family first liens | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Loans held for investment, net of unearned income | 0 | ||
Residential real estate | One- to four- family junior liens | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 5,366 | 37,296 | |
2022 | 35,282 | 22,931 | |
2021 | 21,798 | 8,937 | |
2020 | 8,582 | 3,237 | |
2019 | 2,861 | 4,513 | |
Prior | 10,271 | 6,406 | |
Revolving Loans | 78,243 | 79,898 | |
Loans held for investment, net of unearned income | 162,403 | 163,218 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | ||
Residential real estate | One- to four- family junior liens | Substandard / Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 5,366 | 37,296 | |
2022 | 35,258 | 22,908 | |
2021 | 21,775 | 8,906 | |
2020 | 8,553 | 3,058 | |
2019 | 2,712 | 3,757 | |
Prior | 9,338 | 6,330 | |
Revolving Loans | 78,144 | 79,798 | |
Loans held for investment, net of unearned income | 161,146 | 162,053 | |
Residential real estate | One- to four- family junior liens | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 24 | 23 | |
2021 | 23 | 31 | |
2020 | 29 | 179 | |
2019 | 149 | 756 | |
Prior | 933 | 76 | |
Revolving Loans | 99 | 100 | |
Loans held for investment, net of unearned income | 1,257 | 1,165 | |
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 6,868 | 32,584 | |
2022 | 27,975 | 18,981 | |
2021 | 16,301 | 7,982 | |
2020 | 6,946 | 3,498 | |
2019 | 2,902 | 1,650 | |
Prior | 7,232 | 6,646 | |
Revolving Loans | 4,153 | 4,255 | |
Loans held for investment, net of unearned income | 72,377 | 75,596 | |
Current Period Gross Write-offs | |||
2023 | 0 | ||
2022 | 142 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 4 | ||
Prior | 2 | ||
Revolving Loans | 0 | ||
Total | 148 | $ 184 | |
Consumer | Substandard / Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 6,868 | 32,584 | |
2022 | 27,975 | 18,979 | |
2021 | 16,296 | 7,966 | |
2020 | 6,940 | 3,489 | |
2019 | 2,894 | 1,646 | |
Prior | 7,226 | 6,641 | |
Revolving Loans | 4,153 | 4,255 | |
Loans held for investment, net of unearned income | 72,352 | 75,560 | |
Consumer | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 2 | |
2021 | 5 | 16 | |
2020 | 6 | 9 | |
2019 | 8 | 4 | |
Prior | 6 | 5 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 25 | 36 | |
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 158,705 | 975,687 | |
2022 | 978,219 | 883,225 | |
2021 | 863,647 | 649,601 | |
2020 | 615,882 | 179,713 | |
2019 | 176,190 | 93,541 | |
Prior | 370,750 | 295,220 | |
Revolving Loans | 331,631 | 321,166 | |
Loans held for investment, net of unearned income | 3,495,024 | 3,398,153 | |
Pass | Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 7,088 | 20,279 | |
2022 | 15,551 | 12,511 | |
2021 | 11,339 | 5,398 | |
2020 | 4,533 | 2,883 | |
2019 | 1,598 | 939 | |
Prior | 1,417 | 1,063 | |
Revolving Loans | 56,139 | 65,395 | |
Loans held for investment, net of unearned income | 97,665 | 108,468 | |
Pass | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 37,423 | 262,500 | |
2022 | 253,594 | 232,263 | |
2021 | 224,460 | 151,567 | |
2020 | 142,132 | 48,199 | |
2019 | 44,485 | 27,680 | |
Prior | 134,002 | 115,877 | |
Revolving Loans | 184,382 | 163,205 | |
Loans held for investment, net of unearned income | 1,020,478 | 1,001,291 | |
Pass | Commercial real estate | Construction & development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 22,423 | 144,597 | |
2022 | 167,846 | 73,832 | |
2021 | 80,378 | 19,324 | |
2020 | 20,349 | 989 | |
2019 | 968 | 1,058 | |
Prior | 1,534 | 549 | |
Revolving Loans | 26,621 | 28,069 | |
Loans held for investment, net of unearned income | 320,119 | 268,418 | |
Pass | Commercial real estate | Farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 7,159 | 55,251 | |
2022 | 53,083 | 52,802 | |
2021 | 51,868 | 28,744 | |
2020 | 26,650 | 7,266 | |
2019 | 6,847 | 8,406 | |
Prior | 19,184 | 12,895 | |
Revolving Loans | 2,169 | 1,946 | |
Loans held for investment, net of unearned income | 166,960 | 167,310 | |
Pass | Commercial real estate | Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 7,369 | 31,018 | |
2022 | 31,621 | 93,907 | |
2021 | 89,877 | 84,573 | |
2020 | 84,000 | 17,137 | |
2019 | 16,991 | 2,549 | |
Prior | 7,644 | 5,161 | |
Revolving Loans | 150 | 49 | |
Loans held for investment, net of unearned income | 237,652 | 234,394 | |
Pass | Commercial real estate | Commercial real estate-other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 62,285 | 322,753 | |
2022 | 323,167 | 314,376 | |
2021 | 304,661 | 296,368 | |
2020 | 276,595 | 79,408 | |
2019 | 82,956 | 31,041 | |
Prior | 112,999 | 81,708 | |
Revolving Loans | 51,359 | 51,064 | |
Loans held for investment, net of unearned income | 1,214,022 | 1,176,718 | |
Pass | Residential real estate | One- to four- family first liens | Substandard / Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 14,958 | 139,289 | |
2022 | 133,357 | 103,534 | |
2021 | 101,064 | 63,627 | |
2020 | 61,623 | 23,831 | |
2019 | 22,345 | 21,868 | |
Prior | 93,970 | 77,967 | |
Revolving Loans | 10,811 | 11,438 | |
Loans held for investment, net of unearned income | 438,128 | 441,554 | |
Special mention / watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 1,699 | 19,895 | |
2022 | 7,909 | 11,324 | |
2021 | 7,762 | 22,534 | |
2020 | 26,478 | 12,913 | |
2019 | 6,743 | 10,742 | |
Prior | 18,833 | 12,491 | |
Revolving Loans | 22,651 | 18,165 | |
Loans held for investment, net of unearned income | 92,075 | 108,064 | |
Special mention / watch | Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 6 | 143 | |
2022 | 224 | 1,012 | |
2021 | 859 | 115 | |
2020 | 208 | 36 | |
2019 | 8 | 0 | |
Prior | 534 | 604 | |
Revolving Loans | 3,412 | 1,655 | |
Loans held for investment, net of unearned income | 5,251 | 3,565 | |
Special mention / watch | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 465 | 3,975 | |
2022 | 1,788 | 3,574 | |
2021 | 1,544 | 5,465 | |
2020 | 4,770 | 592 | |
2019 | 418 | 3,299 | |
Prior | 4,988 | 1,864 | |
Revolving Loans | 14,638 | 12,299 | |
Loans held for investment, net of unearned income | 28,611 | 31,068 | |
Special mention / watch | Commercial real estate | Construction & development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 1,787 | |
2022 | 38 | 499 | |
2021 | 493 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 531 | 2,286 | |
Special mention / watch | Commercial real estate | Farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 3,058 | |
2022 | 2,807 | 2,229 | |
2021 | 2,295 | 1,470 | |
2020 | 1,453 | 0 | |
2019 | 0 | 225 | |
Prior | 1,782 | 21 | |
Revolving Loans | 401 | 1,693 | |
Loans held for investment, net of unearned income | 8,738 | 8,696 | |
Special mention / watch | Commercial real estate | Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 1,000 | |
2022 | 794 | 0 | |
2021 | 0 | 1,567 | |
2020 | 1,552 | 0 | |
2019 | 0 | 5,931 | |
Prior | 7,048 | 1,178 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 9,394 | 9,676 | |
Special mention / watch | Commercial real estate | Commercial real estate-other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 1,228 | 8,858 | |
2022 | 1,556 | 3,399 | |
2021 | 2,106 | 13,245 | |
2020 | 17,769 | 10,365 | |
2019 | 4,344 | 1,137 | |
Prior | 3,390 | 8,122 | |
Revolving Loans | 4,200 | 2,518 | |
Loans held for investment, net of unearned income | 34,593 | 47,644 | |
Special mention / watch | Residential real estate | One- to four- family first liens | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 1,074 | |
2022 | 702 | 611 | |
2021 | 465 | 672 | |
2020 | 726 | 1,920 | |
2019 | 1,973 | 150 | |
Prior | 1,091 | 702 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 4,957 | 5,129 | |
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 2,539 | 1,960 | |
2022 | 4,386 | 11,538 | |
2021 | 14,036 | 22,940 | |
2020 | 18,779 | 15,365 | |
2019 | 15,192 | 12,893 | |
Prior | 36,688 | 27,871 | |
Revolving Loans | 5,866 | 2,926 | |
Loans held for investment, net of unearned income | 97,486 | 95,493 | |
Substandard | Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 1,918 | 48 | |
2022 | 114 | 646 | |
2021 | 193 | 366 | |
2020 | 258 | 4 | |
2019 | 3 | 7 | |
Prior | 294 | 302 | |
Revolving Loans | 945 | 1,914 | |
Loans held for investment, net of unearned income | 3,725 | 3,287 | |
Substandard | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 621 | 556 | |
2022 | 2,966 | 166 | |
2021 | 2,617 | 1,172 | |
2020 | 1,474 | 756 | |
2019 | 768 | 556 | |
Prior | 18,058 | 18,585 | |
Revolving Loans | 4,921 | 1,012 | |
Loans held for investment, net of unearned income | 31,425 | 22,803 | |
Substandard | Commercial real estate | Construction & development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 281 | |
2022 | 270 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 4 | 6 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 274 | 287 | |
Substandard | Commercial real estate | Farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 148 | |
2022 | 148 | 1,974 | |
2021 | 1,670 | 1,192 | |
2020 | 1,201 | 1,136 | |
2019 | 1,143 | 1,459 | |
Prior | 2,668 | 1,998 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 6,830 | 7,907 | |
Substandard | Commercial real estate | Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 7,725 | |
2021 | 7,687 | 334 | |
2020 | 332 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 8,019 | 8,059 | |
Substandard | Commercial real estate | Commercial real estate-other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 752 | |
2022 | 631 | 589 | |
2021 | 1,342 | 19,702 | |
2020 | 15,342 | 13,294 | |
2019 | 13,106 | 10,197 | |
Prior | 11,418 | 4,089 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 41,839 | 48,623 | |
Substandard | Residential real estate | One- to four- family first liens | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | ||
2022 | 257 | ||
2021 | 527 | ||
2020 | 172 | ||
2019 | 172 | ||
Prior | 4,246 | ||
Revolving Loans | 0 | ||
Loans held for investment, net of unearned income | 5,374 | ||
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | 0 | |
Doubtful | Agricultural | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | 0 | |
Doubtful | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | 0 | |
Doubtful | Commercial real estate | Construction & development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | 0 | |
Doubtful | Commercial real estate | Farmland | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | 0 | |
Doubtful | Commercial real estate | Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | 0 | |
Doubtful | Commercial real estate | Commercial real estate-other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
2019 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment, net of unearned income | 0 | $ 0 | |
Doubtful | Residential real estate | One- to four- family first liens | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Loans held for investment, net of unearned income | $ 0 |
Loans Receivable and the Allo_7
Loans Receivable and the Allowance for Credit Losses - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Net charge-offs | $ (300) | $ (2,200) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 49,200 | 48,700 | |
Charge-offs | (487) | (2,631) | |
Recoveries | 154 | 409 | |
Credit loss expense (benefit) | 933 | (278) | |
Ending balance | 49,800 | 46,200 | |
Credit loss expense, off balance sheet credit exposure | 0 | 300 | |
Loans receivable | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest receivable | 16,000 | $ 15,300 | |
Agricultural | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 923 | 667 | |
Charge-offs | (1) | 0 | |
Recoveries | 26 | 7 | |
Credit loss expense (benefit) | (435) | (294) | |
Ending balance | 513 | 380 | |
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 22,855 | 17,294 | |
Charge-offs | (320) | (233) | |
Recoveries | 75 | 225 | |
Credit loss expense (benefit) | (265) | (11) | |
Ending balance | 22,345 | 17,275 | |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 20,123 | 26,120 | |
Charge-offs | (18) | (2,184) | |
Recoveries | 5 | 117 | |
Credit loss expense (benefit) | 1,723 | 4 | |
Ending balance | 21,833 | 24,057 | |
Residential real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,678 | 4,010 | |
Charge-offs | 0 | (30) | |
Recoveries | 4 | 16 | |
Credit loss expense (benefit) | (137) | (88) | |
Ending balance | 4,545 | 3,908 | |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 621 | 609 | |
Charge-offs | (148) | (184) | |
Recoveries | 44 | 44 | |
Credit loss expense (benefit) | 47 | 111 | |
Ending balance | $ 564 | $ 580 |
Loans Receivable and the Allo_8
Loans Receivable and the Allowance for Credit Losses - Allowance for Loan Losses Based on Evaluation Method (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment | $ 17,283 | $ 22,133 | ||
Collectively evaluated for impairment | 3,902,082 | 3,818,391 | ||
Total | 3,919,365 | 3,840,524 | ||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 2,078 | 1,985 | ||
Collectively evaluated for impairment | 47,722 | 47,215 | ||
Total | 49,800 | 49,200 | $ 46,200 | $ 48,700 |
Agricultural | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment | 1,726 | 2,531 | ||
Collectively evaluated for impairment | 104,915 | 112,789 | ||
Total | 106,641 | 115,320 | ||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 0 | 500 | ||
Collectively evaluated for impairment | 513 | 423 | ||
Total | 513 | 923 | 380 | 667 |
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment | 1,443 | 2,184 | ||
Collectively evaluated for impairment | 1,079,071 | 1,052,978 | ||
Total | 1,080,514 | 1,055,162 | ||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 234 | 600 | ||
Collectively evaluated for impairment | 22,111 | 22,255 | ||
Total | 22,345 | 22,855 | 17,275 | 17,294 |
Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment | 12,482 | 15,768 | ||
Collectively evaluated for impairment | 2,036,489 | 1,964,250 | ||
Total | 2,048,971 | 1,980,018 | ||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 1,664 | 705 | ||
Collectively evaluated for impairment | 20,169 | 19,418 | ||
Total | 21,833 | 20,123 | 24,057 | 26,120 |
Residential real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment | 1,632 | 1,650 | ||
Collectively evaluated for impairment | 609,230 | 612,778 | ||
Total | 610,862 | 614,428 | ||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 180 | 180 | ||
Collectively evaluated for impairment | 4,365 | 4,498 | ||
Total | 4,545 | 4,678 | 3,908 | 4,010 |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 72,377 | 75,596 | ||
Total | 72,377 | 75,596 | ||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 564 | 621 | ||
Total | $ 564 | $ 621 | $ 580 | $ 609 |
Loans Receivable and the Allo_9
Loans Receivable and the Allowance for Credit Losses - Primary Type of Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | $ 3,869,565 | $ 3,791,324 | ||
ACL Allocation | 49,800 | 49,200 | $ 46,200 | $ 48,700 |
Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 15,423 | 17,374 | ||
Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 411 | 3,199 | ||
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 1,449 | 1,560 | ||
Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 17,283 | 22,133 | ||
ACL Allocation | 2,078 | 1,985 | ||
Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
ACL Allocation | 513 | 923 | 380 | 667 |
Agricultural | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 1,513 | 68 | ||
Agricultural | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 213 | 2,463 | ||
Agricultural | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Agricultural | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 1,726 | 2,531 | ||
ACL Allocation | 0 | 500 | ||
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
ACL Allocation | 22,345 | 22,855 | 17,275 | 17,294 |
Commercial and industrial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 716 | 856 | ||
Commercial and industrial | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 198 | 736 | ||
Commercial and industrial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 529 | 592 | ||
Commercial and industrial | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 1,443 | 2,184 | ||
ACL Allocation | 234 | 600 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
ACL Allocation | 21,833 | 20,123 | 24,057 | 26,120 |
Commercial real estate | Construction & development | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Construction & development | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Construction & development | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Construction & development | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
ACL Allocation | 0 | 0 | ||
Commercial real estate | Farmland | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 4,298 | 4,515 | ||
Commercial real estate | Farmland | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Farmland | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Farmland | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 4,298 | 4,515 | ||
ACL Allocation | 0 | 0 | ||
Commercial real estate | Multifamily | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Multifamily | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Multifamily | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Multifamily | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
ACL Allocation | 0 | 0 | ||
Commercial real estate | Commercial real estate-other | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 7,985 | 11,006 | ||
Commercial real estate | Commercial real estate-other | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Commercial real estate | Commercial real estate-other | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 199 | 247 | ||
Commercial real estate | Commercial real estate-other | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 8,184 | 11,253 | ||
ACL Allocation | 1,664 | 705 | ||
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
ACL Allocation | 4,545 | 4,678 | 3,908 | 4,010 |
Residential real estate | One- to four- family first liens | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 911 | 929 | ||
Residential real estate | One- to four- family first liens | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Residential real estate | One- to four- family first liens | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Residential real estate | One- to four- family first liens | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 911 | 929 | ||
ACL Allocation | 0 | 0 | ||
Residential real estate | One- to four- family junior liens | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Residential real estate | One- to four- family junior liens | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Residential real estate | One- to four- family junior liens | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 721 | 721 | ||
Residential real estate | One- to four- family junior liens | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 721 | 721 | ||
ACL Allocation | 180 | 180 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
ACL Allocation | 564 | 621 | $ 580 | $ 609 |
Consumer | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Consumer | Equipment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Consumer | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
Consumer | Collateral Pledged | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans held for investment, net | 0 | 0 | ||
ACL Allocation | $ 0 | $ 0 |
Loans Receivable and the All_10
Loans Receivable and the Allowance for Credit Losses - Trouble Debt (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | $ 81 |
Total Class of Financing Receivable | |
Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | $ 0 |
Total Class of Financing Receivable | 1.42% |
Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | $ 63 |
Total Class of Financing Receivable | 0.04% |
Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | $ 18 |
Total Class of Financing Receivable | 0% |
Principal Forgiveness | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | $ 0 |
Principal Forgiveness | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 16 |
Payment Delay | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 16 |
Payment Delay | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Payment Delay | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Term Extension | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 1,552 |
Term Extension | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 1,502 |
Term Extension | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 50 |
Term Extension | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Interest Rate Reduction | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Interest Rate Reduction | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Term Extension & Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 120 |
Term Extension & Interest Rate Reduction | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Term Extension & Interest Rate Reduction | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 120 |
Term Extension & Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness & Term Extension | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 307 |
Principal Forgiveness & Term Extension | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness & Term Extension | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 307 |
Principal Forgiveness & Term Extension | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness, Term Extension, & Interest Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 20 |
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Agricultural | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial and industrial | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | 0 |
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Principal Forgiveness | $ 20 |
Loans Receivable and the All_11
Loans Receivable and the Allowance for Credit Losses - Aging Analysis (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | $ 2,015 |
Agricultural | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 1,518 |
Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 477 |
Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 20 |
Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 1,995 |
Current | Agricultural | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 1,518 |
Current | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 477 |
Current | Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
30 - 59 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
30 - 59 Days Past Due | Agricultural | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
30 - 59 Days Past Due | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
30 - 59 Days Past Due | Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
60 - 89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
60 - 89 Days Past Due | Agricultural | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
60 - 89 Days Past Due | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
60 - 89 Days Past Due | Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
90 Days or More Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 20 |
90 Days or More Past Due | Agricultural | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
90 Days or More Past Due | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | 0 |
90 Days or More Past Due | Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Performance of loans modified in last twelve months | $ 20 |
Loans Receivable and the All_12
Loans Receivable and the Allowance for Credit Losses - Financial Effect of Loan Modification (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 81 |
Weighted Average Interest Rate Reduction | 2.07% |
Weighted Average Term Extension (Years) | 4 years 7 months 20 days |
Principal Forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 0 |
Agricultural | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 0 |
Weighted Average Interest Rate Reduction | 0% |
Weighted Average Term Extension (Years) | 2 years 4 months 13 days |
Agricultural | Principal Forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 0 |
Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 63 |
Weighted Average Interest Rate Reduction | 1.25% |
Weighted Average Term Extension (Years) | 11 years 10 months 20 days |
Commercial and industrial | Principal Forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 0 |
Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 18 |
Weighted Average Interest Rate Reduction | 7% |
Weighted Average Term Extension (Years) | 2 years 5 months 19 days |
Commercial real estate | Principal Forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Principal Forgiveness | $ 0 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Balance Sheet Offsetting - Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 18,513 | $ 23,655 |
Derivative liabilities, fair value | 16,302 | 21,087 |
Derivative instrument, estimated gain reclassified from AOCI into income | (561) | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 73,819 | 24,018 |
Derivative assets, fair value | 2,156 | 2,556 |
Derivative liabilities, fair value | 23 | 0 |
Designated as Hedging Instrument | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 23,819 | 24,018 |
Derivative assets, fair value | 1,995 | 2,556 |
Derivative liabilities, fair value | 0 | 0 |
Designated as Hedging Instrument | Interest rate swaps | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 50,000 | 0 |
Derivative assets, fair value | 161 | 0 |
Derivative liabilities, fair value | 23 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 339,908 | 343,390 |
Derivative assets, fair value | 16,357 | 21,099 |
Derivative liabilities, fair value | 16,279 | 21,087 |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 307,450 | 331,197 |
Derivative assets, fair value | 16,256 | 21,084 |
Derivative liabilities, fair value | 16,257 | 21,087 |
Not Designated as Hedging Instrument | RPAs | RPAs - protection purchased | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 24,812 | 9,421 |
Derivative assets, fair value | 0 | 0 |
Derivative liabilities, fair value | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 3,696 | 1,372 |
Derivative assets, fair value | 101 | 7 |
Derivative liabilities, fair value | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate forward loan sales contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 3,950 | 1,400 |
Derivative assets, fair value | 0 | 8 |
Derivative liabilities, fair value | $ 22 | $ 0 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Balance Sheet Offsetting - Effect of Cashflow Hedging on AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized net holding gains in cash flow hedging instruments arising during the period | $ 138 | $ 0 |
Interest rate swaps | Cash flow hedges | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized net holding gains in cash flow hedging instruments arising during the period | 138 | 0 |
Interest rate swaps | Cash flow hedges | Designated as Hedging Instrument | Interest Expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Location of Gain (Loss) Reclassified from AOCI into Income | $ 0 | $ 0 |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Impacts on Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income | $ 40,076 | $ 37,336 |
Designated as Hedging Instrument | Interest rate swaps | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income | 159 | (104) |
Other Income | 0 | 0 |
Designated as Hedging Instrument | Interest rate swaps | Interest Income | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 562 | (1,553) |
Derivative designated as hedging instruments | (402) | 942 |
Designated as Hedging Instrument | Interest rate swaps | Interest Income | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from AOCI into income | 0 | 0 |
Designated as Hedging Instrument | Interest rate swaps | Other income | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 0 | 0 |
Derivative designated as hedging instruments | 0 | 0 |
Designated as Hedging Instrument | Interest rate swaps | Other income | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount reclassified from AOCI into income | $ 0 | $ 0 |
Derivatives, Hedging Activiti_6
Derivatives, Hedging Activities and Balance Sheet Offsetting - Hedged Items in Fair Value Hedging Relationship (Details) - Interest rate swaps - Designated as Hedging Instrument - Fair value hedges: $ in Thousands | Mar. 31, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Carrying Amount of the Hedged Assets | $ 21,854 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | $ (1,996) |
Derivatives, Hedging Activiti_7
Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Other Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as hedging, gain (loss) | $ 133 | $ 64 |
Interest rate swaps | Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as hedging, gain (loss) | 0 | (5) |
RPAs | Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as hedging, gain (loss) | 69 | (1) |
Interest rate lock commitments | Loan revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as hedging, gain (loss) | 94 | 381 |
Interest rate forward loan sales contracts | Loan revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not designated as hedging, gain (loss) | $ (30) | $ (311) |
Derivatives, Hedging Activiti_8
Derivatives, Hedging Activities and Balance Sheet Offsetting - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Asset Derivatives | ||
Gross Amounts Recognized | $ 18,513 | $ 23,655 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts presented in the Balance Sheet | 18,513 | 23,655 |
Financial Instruments | 0 | 0 |
Cash Collateral Received / Paid | 15,091 | 18,858 |
Net Assets /Liabilities | 3,422 | 4,797 |
Liability Derivatives | ||
Gross Amounts Recognized | 16,302 | 21,087 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts presented in the Balance Sheet | 16,302 | 21,087 |
Financial Instruments | 0 | 0 |
Cash Collateral Received / Paid | 3,000 | 3,460 |
Net Assets /Liabilities | $ 13,302 | $ 17,627 |
Derivatives, Hedging Activiti_9
Derivatives, Hedging Activities and Balance Sheet Offsetting - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of derivatives in a net liability position, including accrued interest | $ 24 | |
Cash Collateral Received / Paid | $ 3,000 | $ 3,460 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill and Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 62,477 | $ 62,477 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66,210 | $ 66,210 |
Accumulated Amortization | (44,687) | (42,935) |
Net Carrying Amount | 21,523 | 23,275 |
Indefinite-lived trade name intangible | 7,040 | 7,040 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 58,245 | 58,245 |
Accumulated Amortization | (37,401) | (35,822) |
Net Carrying Amount | 20,844 | 22,423 |
Customer relationship intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,265 | 5,265 |
Accumulated Amortization | (4,648) | (4,490) |
Net Carrying Amount | 617 | 775 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,700 | 2,700 |
Accumulated Amortization | (2,638) | (2,623) |
Net Carrying Amount | $ 62 | $ 77 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
2023 | $ 4,494 | |
2024 | 4,968 | |
2025 | 3,771 | |
2026 | 2,797 | |
2027 | 1,843 | |
Thereafter | 3,650 | |
Net Carrying Amount | 21,523 | $ 23,275 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 4,098 | |
2024 | 4,705 | |
2025 | 3,751 | |
2026 | 2,797 | |
2027 | 1,843 | |
Thereafter | 3,650 | |
Net Carrying Amount | 20,844 | 22,423 |
Customer relationship intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 360 | |
2024 | 239 | |
2025 | 18 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Net Carrying Amount | 617 | 775 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 36 | |
2024 | 24 | |
2025 | 2 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Net Carrying Amount | $ 62 | $ 77 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Bank-owned life insurance | $ 96,141 | $ 95,539 |
Interest receivable | 26,864 | 27,090 |
FHLB stock | 10,086 | 19,248 |
Mortgage servicing rights | 13,736 | 13,421 |
Operating lease right-of-use assets, net | 2,536 | 2,492 |
Federal and state income taxes, current | 1,630 | 2,366 |
Federal and state income taxes, deferred | 36,039 | 39,071 |
Derivative assets | 18,513 | 23,655 |
Other receivables/assets | 14,040 | 13,635 |
Other assets | $ 219,585 | $ 236,517 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest bearing deposits | $ 989,469 | $ 1,053,450 |
Interest checking deposits | 1,476,948 | 1,624,278 |
Money market deposits | 969,238 | 937,340 |
Savings deposits | 631,811 | 664,169 |
Time deposits under $250 | 965,841 | 559,466 |
Time deposits of $250 or more | 521,846 | 630,239 |
Total deposits | 5,555,153 | 5,468,942 |
Domestic time deposit, brokered | 6,000 | 4,300 |
Domestic non-time deposit, brokered | 39,300 | 40,000 |
Brokered deposit | 366,500 | 126,800 |
Deposits of government entities | $ 327,500 | $ 387,800 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | |||
Weighted Average Rate | 1.42% | 3.22% | |
Short-term borrowings | $ 143,981,000 | $ 391,873,000 | |
Debt securities available for sale | 954,074,000 | 1,153,547,000 | |
Asset Pledged as Collateral without Right | |||
Short-term Debt [Line Items] | |||
Debt securities available for sale | $ 1,190,000,000 | $ 690,200,000 | |
Securities sold under agreements to repurchase | |||
Short-term Debt [Line Items] | |||
Weighted Average Rate | 1.25% | 1.32% | |
Short-term borrowings | $ 137,481,000 | $ 156,373,000 | |
Federal Home Loan Bank advances | |||
Short-term Debt [Line Items] | |||
Weighted Average Rate | 5.05% | 4.48% | |
Short-term borrowings | $ 6,500,000 | $ 235,500,000 | |
Federal funds purchased | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 0 | 0 | |
Unsecured line of credit, maximum borrowing capacity | 155,000,000 | ||
Federal Reserve Bank advances | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 0 | 0 | |
Unsecured line of credit, maximum borrowing capacity | 90,200,000 | ||
Financing capacity | 419,400,000 | 105,600,000 | |
Federal Reserve Bank advances | Asset Pledged as Collateral without Right | |||
Short-term Debt [Line Items] | |||
Debt securities available for sale | 494,100,000 | 115,200,000 | |
Unsecured line of credit | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 0 | $ 0 | |
Unsecured line of credit, maximum borrowing capacity | $ 25,000,000 | ||
Unused commitment fee percentage | 0.30% | ||
Unsecured line of credit | SOFR Rate | |||
Short-term Debt [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.55% |
Long-Term Debt - Junior Subordi
Long-Term Debt - Junior Subordinated Notes (Details) - Junior subordinated notes - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 44,847 | $ 44,847 |
Debt instrument, book value | $ 42,160 | 42,116 |
Stated maturity date | 5 years | |
ATBancorp Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 7,732 | 7,732 |
Debt instrument, book value | $ 6,938 | $ 6,928 |
Interest rate | 6.55% | 6.45% |
ATBancorp Statutory Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.68% | 1.68% |
ATBancorp Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 12,372 | $ 12,372 |
Debt instrument, book value | $ 10,985 | $ 10,969 |
Interest rate | 6.52% | 6.42% |
ATBancorp Statutory Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.65% | 1.65% |
Barron Investment Capital Trust I | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 2,062 | $ 2,062 |
Debt instrument, book value | $ 1,839 | $ 1,832 |
Interest rate | 7.17% | 6.88% |
Barron Investment Capital Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.15% | 2.15% |
Central Bancshares Capital Trust II | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 7,217 | $ 7,217 |
Debt instrument, book value | $ 6,934 | $ 6,923 |
Interest rate | 8.37% | 8.27% |
Central Bancshares Capital Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 3.50% | 3.50% |
MidWestOne Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 15,464 | $ 15,464 |
Debt instrument, book value | $ 15,464 | $ 15,464 |
Interest rate | 6.46% | 6.36% |
MidWestOne Statutory Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.59% | 1.59% |
Long-Term Debt - Subordinated D
Long-Term Debt - Subordinated Debentures (Details) - Subordinated debt - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 28, 2020 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Percentage of debentures categorized as tier 2 capital | 100% | |
Percentage of debentures, decrease to tier 2 treatment, per year | 20% | |
Decrease to tier 2 treatment, period of recognition | 5 years | |
5.75% Fixed to floating subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 63,750 | |
Interest rate | 5.75% | |
5.75% Fixed to floating subordinated notes | Private placement | ||
Debt Instrument [Line Items] | ||
Sale of equity | $ 65,000 |
Long-Term Debt - Other Long-Ter
Long-Term Debt - Other Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Weighted Average Rate | 4.48% | 4.30% |
Balance | $ 31,782 | $ 33,088 |
Finance lease payable | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 8.89% | 8.89% |
Balance | $ 744 | $ 787 |
FHLB borrowings | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 2.91% | 2.91% |
Balance | $ 17,288 | $ 17,301 |
Federal home loan, bank advances general debt obligations, disclosures maximum borrowing capacity as percentage of total assets | 45% | |
Note payable to unaffiliated bank | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 6.22% | 5.67% |
Balance | $ 13,750 | $ 15,000 |
Note payable to unaffiliated bank | SOFR Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.55% |
Long-Term Debt - Federal Home L
Long-Term Debt - Federal Home Loan Bank Advances (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Weighted Average Rate | |
Due in 2023 | 2.79% |
Due in 2024 | 3.11% |
Total | 2.91% |
Amount | |
Due in 2023 | $ 11,000 |
Due in 2024 | 6,250 |
Total | 17,250 |
Valuation adjustment from acquisition accounting | 38 |
Total | $ 17,288 |
Earnings per Share - Basic And
Earnings per Share - Basic And Diluted Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic Earnings Per Share: | ||
Net income | $ 1,397 | $ 13,895 |
Weighted average shares outstanding (in shares) | 15,649,651 | 15,683,136 |
Basic earnings per common share (in dollars per share) | $ 0.09 | $ 0.89 |
Diluted Earnings Per Share: | ||
Net income | $ 1,397 | $ 13,895 |
Weighted average shares outstanding, including all dilutive potential shares (in shares) | 15,691,168 | 15,717,960 |
Diluted earnings per common share (in dollars per share) | $ 0.09 | $ 0.88 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Details) | Jul. 28, 2020 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash reserve deposit required and made | $ 0 | $ 0 | |
Capital | $ 654,151,000 | $ 653,380,000 | |
Capital to risk weighted assets | 0.1231 | 0.1207 | |
Capital required for capital adequacy | $ 557,940,000 | $ 568,452,000 | |
Capital required for capital adequacy to risk weighted assets | 0.1050 | 0.1050 | |
Tier one risk based capital | $ 540,980,000 | $ 544,300,000 | |
Tier one risk based capital to risk weighted assets | 0.1018 | 0.1005 | |
Tier one risk based capital required for capital adequacy | $ 451,666,000 | $ 460,175,000 | |
Tier one risk based capital required for capital adequacy to risk weighted assets | 0.0850 | 0.0850 | |
Common equity tier one capital | $ 498,820,000 | $ 502,184,000 | |
Common equity tier one capital to risk weighted assets | 9.39% | 9.28% | |
Common equity tier one capital required for capital adequacy | $ 371,960,000 | $ 378,968,000 | |
Common equity tier one capital required for capital adequacy to risk weighted assets | 7% | 7% | |
Tier one leverage capital | $ 540,980,000 | $ 544,300,000 | |
Tier one leverage capital to average assets | 0.0830 | 0.0835 | |
Tier one leverage capital required for capital adequacy | $ 260,813,000 | $ 260,891,000 | |
Tier one leverage capital required for capital adequacy to average assets | 0.0400 | 0.0400 | |
Capital conservation buffer | 2.50% | 2.50% | |
5.75% Fixed to floating subordinated notes | Subordinated debt | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Interest rate | 5.75% | ||
5.75% Fixed to floating subordinated notes | Subordinated debt | Private placement | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Sale of equity | $ 65,000,000 | ||
MidWestOne Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital | $ 653,184,000 | $ 654,297,000 | |
Capital to risk weighted assets | 0.1231 | 0.1210 | |
Capital required for capital adequacy | $ 557,101,000 | $ 567,684,000 | |
Capital required for capital adequacy to risk weighted assets | 0.1050 | 0.1050 | |
Capital required to be well capitalized | $ 530,573,000 | $ 540,652,000 | |
Capital required to be well capitalized to risk weighted assets | 0.1000 | 0.1000 | |
Tier one risk based capital | $ 605,014,000 | $ 610,217,000 | |
Tier one risk based capital to risk weighted assets | 0.1140 | 0.1129 | |
Tier one risk based capital required for capital adequacy | $ 450,987,000 | $ 459,554,000 | |
Tier one risk based capital required for capital adequacy to risk weighted assets | 0.0850 | 0.0850 | |
Tier one risk based capital required to be well capitalized | $ 424,458,000 | $ 432,522,000 | |
Tier one risk based capital required to be well capitalized to risk weighted assets | 0.0800 | 0.0800 | |
Common equity tier one capital | $ 605,014,000 | $ 610,217,000 | |
Common equity tier one capital to risk weighted assets | 11.40% | 11.29% | |
Common equity tier one capital required for capital adequacy | $ 371,401,000 | $ 378,456,000 | |
Common equity tier one capital required for capital adequacy to risk weighted assets | 7% | 7% | |
Common equity tier one risk based capital required to be well capitalized | $ 344,872,000 | $ 351,424,000 | |
Common equity tier one risk based capital required to be well capitalized to risk weighted assets | 6.50% | 6.50% | |
Tier one leverage capital | $ 605,014,000 | $ 610,217,000 | |
Tier one leverage capital to average assets | 0.0928 | 0.0936 | |
Tier one leverage capital required for capital adequacy | $ 260,685,000 | $ 260,776,000 | |
Tier one leverage capital required for capital adequacy to average assets | 0.0400 | 0.0400 | |
Tier one leverage capital required to be well capitalized | $ 325,857,000 | $ 325,970,000 | |
Tier one leverage capital required to be well capitalized to average assets | 0.0500 | 0.0500 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
Total | $ 1,225,829 | $ 1,209,617 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Total | 2,553 | 612 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Total | 1,205,902 | 1,190,607 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Total | $ 17,374 | $ 18,398 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | |||
Off-balance sheet, credit loss, liability | $ 4.8 | $ 4.8 | |
Credit loss expense, off balance sheet credit loss expense (benefit) | $ 0 | $ 0.3 | |
Credit Concentration Risk | Loans Concentration | Commercial real estate | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 63% | ||
Credit Concentration Risk | Loans Concentration | Agricultural Related Loan Financing Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7% | ||
Credit Concentration Risk | Investment Securities | State and political subdivisions | IOWA | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14% | ||
Credit Concentration Risk | Investment Securities | State and political subdivisions | CALIFORNIA | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% | ||
Credit Concentration Risk | Investment Securities | State and political subdivisions | MINNESOTA | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | $ 954,074 | $ 1,153,547 |
Derivative assets | 18,513 | 23,655 |
Mortgage servicing rights | 13,736 | 13,421 |
Derivative liabilities | 16,302 | 21,087 |
Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 54,074 | |
U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 7,345 | |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 184,581 | 285,356 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 5,679 | 5,944 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 565,074 | 707,709 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 18,513 | 23,655 |
Mortgage servicing rights | 13,736 | 13,421 |
Derivative liabilities | 16,302 | 21,087 |
Recurring | Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 54,074 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 18,412 | 23,648 |
Mortgage servicing rights | 13,736 | 13,421 |
Derivative liabilities | 16,302 | 21,087 |
Recurring | Level 2 | Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 54,074 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 101 | 7 |
Mortgage servicing rights | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | |
Recurring | U.S. Government agencies and corporations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 7,345 | |
Recurring | U.S. Government agencies and corporations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | |
Recurring | U.S. Government agencies and corporations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 7,345 | |
Recurring | U.S. Government agencies and corporations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 184,581 | 285,356 |
Recurring | State and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | State and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 184,581 | 285,356 |
Recurring | State and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 5,679 | 5,944 |
Recurring | Mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | Mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 5,679 | 5,944 |
Recurring | Mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 144,666 | 147,193 |
Recurring | Collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | Collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 144,666 | 147,193 |
Recurring | Collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 565,074 | 707,709 |
Recurring | Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 0 | 0 |
Recurring | Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | 565,074 | 707,709 |
Recurring | Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available for sale | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Fair Value Measurements - Valuation Techniques (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, fair value | $ 18,513 | $ 23,655 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, fair value | 18,513 | 23,655 |
Level 3 | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, fair value | 101 | 7 |
Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, fair value | $ 101 | $ 7 |
Interest rate lock commitments | Minimum | Level 3 | Recurring | Pull-through rate | Valuation, Market Approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 0.71 | |
Interest rate lock commitments | Maximum | Level 3 | Recurring | Pull-through rate | Valuation, Market Approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 1 | |
Interest rate lock commitments | Weighted Average | Level 3 | Recurring | Pull-through rate | Valuation, Market Approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 0.92 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Fair Value Measurements - Measured on a Nonrecurring Basis (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreclosed assets, net | $ 0 | $ 103 |
Nonrecurring | Collateral dependent individually analyzed loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent individually analyzed loans | 3,666 | 3,159 |
Nonrecurring | Collateral dependent individually analyzed loans | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent individually analyzed loans | 0 | 0 |
Nonrecurring | Collateral dependent individually analyzed loans | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent individually analyzed loans | 0 | 0 |
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral dependent individually analyzed loans | $ 3,666 | 3,159 |
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Measurement input | 0 | |
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Measurement input | 1 | |
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Measurement input | 0.13 | |
Nonrecurring | Foreclosed assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreclosed assets, net | $ 0 | 103 |
Nonrecurring | Foreclosed assets, net | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreclosed assets, net | 0 | |
Nonrecurring | Foreclosed assets, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreclosed assets, net | 0 | |
Nonrecurring | Foreclosed assets, net | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreclosed assets, net | $ 103 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Debt securities available for sale | $ 954,074 | $ 1,153,547 |
Debt securities held to maturity | 1,117,709 | 1,129,421 |
Interest receivable | 26,864 | 27,090 |
FHLB stock | 10,086 | 19,248 |
Derivative assets | 18,513 | 23,655 |
Financial liabilities: | ||
Interest bearing deposits | 1,476,948 | 1,624,278 |
Short-term borrowings | 143,981 | 391,873 |
Finance leases payable | 744 | 787 |
Derivative liabilities | 16,302 | 21,087 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 69,218 | 86,435 |
Debt securities available for sale | 954,074 | 1,153,547 |
Debt securities held to maturity | 1,117,709 | 1,129,421 |
Loans held for sale | 2,553 | 612 |
Loans held for investment, net | 3,869,565 | 3,791,324 |
Interest receivable | 26,864 | 27,090 |
FHLB stock | 10,086 | |
Derivative assets | 18,513 | 23,655 |
Financial liabilities: | ||
Noninterest bearing deposits | 989,469 | 1,053,450 |
Interest bearing deposits | 4,565,684 | 4,415,492 |
Short-term borrowings | 143,981 | 391,873 |
Finance leases payable | 744 | 787 |
FHLB borrowings | 17,288 | 17,301 |
Junior subordinated notes issued to capital trusts | 42,160 | 42,116 |
Subordinated debentures | 64,039 | 64,006 |
Other long-term debt | 13,750 | 15,000 |
Derivative liabilities | 16,302 | 21,087 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 69,218 | 86,435 |
Debt securities available for sale | 954,074 | 1,153,547 |
Debt securities held to maturity | 938,535 | 924,894 |
Loans held for sale | 2,594 | 622 |
Loans held for investment, net | 3,767,718 | 3,702,527 |
Interest receivable | 26,864 | 27,090 |
FHLB stock | 10,086 | 19,248 |
Derivative assets | 18,513 | 23,655 |
Financial liabilities: | ||
Noninterest bearing deposits | 989,469 | 1,053,450 |
Interest bearing deposits | 4,548,622 | 4,393,315 |
Short-term borrowings | 143,981 | 391,873 |
Finance leases payable | 744 | 787 |
FHLB borrowings | 17,111 | 17,032 |
Junior subordinated notes issued to capital trusts | 36,067 | 39,023 |
Subordinated debentures | 62,598 | 64,004 |
Other long-term debt | 13,750 | 15,000 |
Derivative liabilities | 16,302 | 21,087 |
Level 1 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 69,218 | 86,435 |
Debt securities available for sale | 0 | 0 |
Debt securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Noninterest bearing deposits | 989,469 | 1,053,450 |
Interest bearing deposits | 3,077,997 | 3,225,787 |
Short-term borrowings | 143,981 | 391,873 |
Finance leases payable | 0 | 0 |
FHLB borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Subordinated debentures | 0 | 0 |
Other long-term debt | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities available for sale | 954,074 | 1,153,547 |
Debt securities held to maturity | 938,535 | 924,894 |
Loans held for sale | 2,594 | 622 |
Loans held for investment, net | 0 | 0 |
Interest receivable | 26,864 | 27,090 |
FHLB stock | 10,086 | 19,248 |
Derivative assets | 18,412 | 23,648 |
Financial liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
Interest bearing deposits | 1,470,625 | 1,167,528 |
Short-term borrowings | 0 | 0 |
Finance leases payable | 744 | 787 |
FHLB borrowings | 17,111 | 17,032 |
Junior subordinated notes issued to capital trusts | 36,067 | 39,023 |
Subordinated debentures | 62,598 | 64,004 |
Other long-term debt | 13,750 | 15,000 |
Derivative liabilities | 16,302 | 21,087 |
Level 3 | Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities available for sale | 0 | 0 |
Debt securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment, net | 3,767,718 | 3,702,527 |
Interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Derivative assets | 101 | 7 |
Financial liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
Interest bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Finance leases payable | 0 | 0 |
FHLB borrowings | 0 | 0 |
Junior subordinated notes issued to capital trusts | 0 | 0 |
Subordinated debentures | 0 | 0 |
Other long-term debt | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2023 USD ($) lease | Dec. 31, 2022 USD ($) |
Leases [Abstract] | ||
Number of leases | lease | 1 | |
Lease Right of Use Assets [Abstract] | ||
Operating lease right-of-use assets | $ 2,536 | $ 2,492 |
Finance lease right-of-use asset | 326 | 350 |
Total right-of-use assets | 2,862 | 2,842 |
Lease Liabilities [Abstract] | ||
Operating lease liability | 3,364 | 3,359 |
Finance lease liability | 744 | 787 |
Total lease liabilities | $ 4,108 | $ 4,146 |
Weighted-average remaining lease term: | ||
Operating leases | 10 years 29 days | 9 years 2 months 23 days |
Finance lease | 3 years 5 months 1 day | 3 years 8 months 1 day |
Weighted-average discount rate: | ||
Operating leases | 4.33% | 4.23% |
Finance lease | 8.89% | 8.89% |
Operating lease, right-of-use asset, statement of financial position [Extensible List] | Other assets | Other assets |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Premises and equipment, net | Premises and equipment, net |
Operating lease, liability, statement of financial position [Extensible List] | Other liabilities | Other liabilities |
Finance lease, liability, statement of financial position [Extensible List] | Long-term debt | Long-term debt |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 292 | $ 296 |
Variable lease cost | 7 | 21 |
Interest on lease liabilities | 17 | 20 |
Amortization of right-of-use assets | 24 | 24 |
Net lease cost | 340 | 361 |
Operating cash flows from operating leases | 605 | 596 |
Operating cash flows from finance lease | 17 | 20 |
Finance cash flows from finance lease | 43 | 39 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 292 | $ 0 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finance Leases | ||
December 31, 2023 | $ 184 | |
December 31, 2024 | 250 | |
December 31, 2025 | 255 | |
December 31, 2026 | 172 | |
December 31, 2027 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payment | 861 | |
Amounts representing interest | (117) | |
Finance lease liability | 744 | $ 787 |
Operating Leases | ||
December 31, 2023 | 845 | |
December 31, 2024 | 892 | |
December 31, 2025 | 422 | |
December 31, 2026 | 328 | |
December 31, 2027 | 243 | |
Thereafter | 1,708 | |
Total undiscounted lease payment | 4,438 | |
Amounts representing interest | (1,074) | |
Operating lease liability | $ 3,364 | $ 3,359 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
May 03, 2023 | Mar. 31, 2022 | Apr. 27, 2023 | |
Subsequent Event [Line Items] | |||
Repurchase of common stock (in shares) | 11,500 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Authorized shares under stock repurchase program | $ 15,000 | ||
Repurchase of common stock (in shares) | 0 | ||
Common Stock | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends payable (in dollars per share) | $ 0.2425 |