Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 15, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35272 | ||
Entity Registrant Name | MIDLAND STATES BANCORP, INC. | ||
Entity Incorporation, State or Country Code | IL | ||
Entity Tax Identification Number | 37-1233196 | ||
Entity Address, Address Line One | 1201 Network Centre Drive | ||
Entity Address, City or Town | Effingham | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 62401 | ||
City Area Code | 217 | ||
Local Phone Number | 342-7321 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | MSBI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 566,736,176 | ||
Entity Common Stock, Shares Outstanding (in shares) | 22,031,410 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held May 2, 2022, to be filed within 120 days after December 31, 2021, are incorporated by reference into Part III of this Form 10-K to the extent indicated in such part. | ||
Entity Central Index Key | 0001466026 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Crowe LLP |
Auditor Location | Indianapolis, Indiana |
Auditor Firm ID | 173 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 673,297 | $ 337,080 |
Federal funds sold | 7,074 | 4,560 |
Cash and cash equivalents | 680,371 | 341,640 |
Investment securities available for sale, at fair value (allowance for credit losses of $221 and $366 at December 31, 2021 and 2020, respectively) | 906,603 | 676,711 |
Equity securities, at fair value | 9,529 | 9,424 |
Loans | 5,224,801 | 5,103,331 |
Allowance for credit losses on loans | (51,062) | (60,443) |
Total loans, net | 5,173,739 | 5,042,888 |
Loans held for sale | 32,045 | 138,090 |
Premises and equipment, net | 70,792 | 74,124 |
Operating lease right-of-use assets | 8,428 | 9,177 |
Other real estate owned | 12,059 | 20,247 |
Nonmarketable equity securities | 36,341 | 56,596 |
Accrued interest receivable | 19,470 | 23,545 |
Loan servicing rights, at lower of cost or fair value | 28,865 | 40,154 |
Goodwill | 161,904 | 161,904 |
Other intangible assets, net | 24,374 | 28,382 |
Cash surrender value of life insurance policies | 148,378 | 146,004 |
Other assets | 130,907 | 99,654 |
Total assets | 7,443,805 | 6,868,540 |
Deposits: | ||
Noninterest-bearing | 2,245,701 | 1,469,579 |
Interest-bearing | 3,864,947 | 3,631,437 |
Total deposits | 6,110,648 | 5,101,016 |
Short-term borrowings | 76,803 | 68,957 |
FHLB advances and other borrowings | 310,171 | 779,171 |
Subordinated debt | 139,091 | 169,795 |
Trust preferred debentures | 49,374 | 48,814 |
Operating lease liabilities | 10,714 | 11,958 |
Other liabilities | 83,167 | 67,438 |
Total liabilities | 6,779,968 | 6,247,149 |
Shareholders’ Equity: | ||
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,050,537 and 22,325,471 shares issued and outstanding at December 31, 2021 and 2020, respectively | 221 | 223 |
Capital surplus | 445,907 | 453,410 |
Retained earnings | 212,472 | 156,327 |
Accumulated other comprehensive income | 5,237 | 11,431 |
Total shareholders’ equity | 663,837 | 621,391 |
Total liabilities and shareholders’ equity | $ 7,443,805 | $ 6,868,540 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 221 | $ 366 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 22,050,537 | 22,325,471 |
Common stock, shares outstanding (in shares) | 22,050,537 | 22,325,471 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans: | |||
Taxable | $ 213,922 | $ 217,459 | $ 218,416 |
Tax exempt | 2,470 | 3,110 | 3,593 |
Loans held for sale | 1,115 | 1,881 | 1,375 |
Investment securities: | |||
Taxable | 13,898 | 14,789 | 14,690 |
Tax exempt | 3,336 | 3,532 | 4,098 |
Nonmarketable equity securities | 2,348 | 2,638 | 2,395 |
Federal funds sold and cash investments | 728 | 1,479 | 4,951 |
Total interest income | 237,817 | 244,888 | 249,518 |
Interest expense: | |||
Deposits | 10,957 | 21,498 | 34,194 |
Short-term borrowings | 86 | 178 | 835 |
FHLB advances and other borrowings | 8,443 | 12,033 | 13,935 |
Subordinated debt | 8,705 | 9,730 | 7,404 |
Trust preferred debentures | 1,951 | 2,313 | 3,335 |
Total interest expense | 30,142 | 45,752 | 59,703 |
Net interest income | 207,675 | 199,136 | 189,815 |
Provision for credit losses: | |||
Provision for credit losses on loans | 3,950 | 43,149 | 16,985 |
Provision for credit losses on unfunded commitments | (412) | 846 | 0 |
Provision for other credit losses | (145) | 366 | 0 |
Total provision for credit losses | 3,393 | 44,361 | 16,985 |
Net interest income after provision for credit losses | 204,282 | 154,775 | 172,830 |
Noninterest income: | |||
Wealth management revenue | 26,811 | 22,802 | 21,832 |
Commercial FHA revenue | 1,414 | 6,007 | 15,309 |
Residential mortgage banking revenue | 5,526 | 9,812 | 2,928 |
Service charges on deposit accounts | 8,348 | 8,603 | 11,027 |
Interchange revenue | 14,500 | 12,266 | 11,992 |
Gain on sales of investment securities, net | 537 | 1,721 | 674 |
Impairment on commercial mortgage servicing rights | (7,532) | (12,337) | (2,139) |
Company-owned life insurance | 4,496 | 3,581 | 3,640 |
Other income | 15,799 | 8,794 | 10,019 |
Total noninterest income | 69,899 | 61,249 | 75,282 |
Noninterest expense: | |||
Salaries and employee benefits | 86,883 | 85,557 | 91,906 |
Occupancy and equipment | 14,866 | 17,552 | 18,811 |
Data processing | 24,595 | 22,643 | 21,390 |
Professional | 10,971 | 7,234 | 8,783 |
Marketing | 3,239 | 3,498 | 3,927 |
Communications | 3,002 | 4,052 | 3,693 |
Amortization of intangible assets | 5,855 | 6,504 | 7,090 |
Impairment related to facilities optimization | 0 | 12,847 | 3,577 |
FHLB advances prepayment fees | 8,536 | 4,872 | 0 |
Other expense | 17,122 | 19,251 | 16,464 |
Total noninterest expense | 175,069 | 184,010 | 175,641 |
Income before income taxes | 99,112 | 32,014 | 72,471 |
Income taxes | 17,795 | 9,477 | 16,687 |
Net income | 81,317 | 22,537 | 55,784 |
Preferred stock dividends and premium amortization | 0 | 0 | 46 |
Net income available to common shareholders | $ 81,317 | $ 22,537 | $ 55,738 |
Per common share data: | |||
Basic earnings per common share (in dollars per share) | $ 3.58 | $ 0.95 | $ 2.28 |
Diluted earnings per share (in dollars per share) | $ 3.57 | $ 0.95 | $ 2.26 |
Weighted average common shares outstanding (in shares) | 22,481,389 | 23,336,881 | 24,288,793 |
Weighted average diluted common shares outstanding (in shares) | 22,547,353 | 23,346,126 | 24,493,431 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 81,317 | $ 22,537 | $ 55,784 |
Investment securities available for sale: | |||
Unrealized gains (losses) that occurred during the period | (12,553) | 6,454 | 13,847 |
Provision for (recapture of) credit loss expense | (145) | 366 | 0 |
Reclassification adjustment for realized net gains on sales of investment securities included in net income | (537) | (1,721) | (674) |
Income tax effect | 3,640 | (1,402) | (3,623) |
Change in investment securities available for sale, net of tax | (9,595) | 3,697 | 9,550 |
Cash flow hedges: | |||
Net unrealized derivative gains on cash flow hedges | 6,851 | 403 | 0 |
Reclassification adjustment for realized net gains on cash flow hedges included in net income | (2,159) | 0 | 0 |
Income tax effect | (1,291) | (111) | 0 |
Change in cash flow hedges, net of tax | 3,401 | 292 | 0 |
Other comprehensive income (loss), net of tax | (6,194) | 3,989 | 9,550 |
Total comprehensive income | $ 75,123 | $ 26,526 | $ 65,334 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Adjustment | Adjusted Balance | Preferred stock | Preferred stockAdjusted Balance | Common stock | Common stockAdjusted Balance | Capital surplus | Capital surplusAdjusted Balance | Retained earnings | Retained earningsAdjusted Balance | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) incomeAdjusted Balance |
Beginning balance at Dec. 31, 2018 | $ 608,525 | $ 2,781 | $ 238 | $ 473,833 | $ 133,781 | $ (2,108) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 55,784 | 55,784 | |||||||||||
Other comprehensive income (loss) | 9,550 | 9,550 | |||||||||||
Acquisition of HomeStar Financial Group, Inc. | 10,339 | 4 | 10,335 | ||||||||||
Preferred dividends declared | (191) | (191) | |||||||||||
Preferred stock, premium amortization | 0 | (145) | 145 | ||||||||||
Redemption of Series H preferred stock | (2,636) | (2,636) | |||||||||||
Common dividends declared | (23,599) | (23,599) | |||||||||||
Common stock repurchased | (4,019) | (2) | (4,017) | ||||||||||
Share-based compensation expense | 2,364 | 2,364 | |||||||||||
Issuance of common stock under employee benefit plans | 5,794 | 4 | 5,790 | ||||||||||
Ending balance at Dec. 31, 2019 | 661,911 | $ (7,172) | $ 654,739 | 0 | $ 0 | 244 | $ 244 | 488,305 | $ 488,305 | 165,920 | $ 158,748 | 7,442 | $ 7,442 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 22,537 | 22,537 | |||||||||||
Other comprehensive income (loss) | 3,989 | 3,989 | |||||||||||
Preferred dividends declared | 0 | ||||||||||||
Common dividends declared | (24,958) | (24,958) | |||||||||||
Common stock repurchased | (39,615) | (23) | (39,592) | ||||||||||
Share-based compensation expense | 2,175 | 2,175 | |||||||||||
Issuance of common stock under employee benefit plans | 2,524 | 2 | 2,522 | ||||||||||
Ending balance at Dec. 31, 2020 | 621,391 | 0 | 223 | 453,410 | 156,327 | 11,431 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 81,317 | 81,317 | |||||||||||
Other comprehensive income (loss) | (6,194) | (6,194) | |||||||||||
Preferred dividends declared | 0 | ||||||||||||
Common dividends declared | (25,172) | (25,172) | |||||||||||
Common stock repurchased | (11,692) | (5) | (11,687) | ||||||||||
Share-based compensation expense | 1,938 | 1,938 | |||||||||||
Issuance of common stock under employee benefit plans | 2,249 | 3 | 2,246 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 663,837 | $ 0 | $ 221 | $ 445,907 | $ 212,472 | $ 5,237 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common dividend declared (in dollars per share) | $ 1.12 | $ 1.07 | $ 0.97 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 81,317 | $ 22,537 | $ 55,784 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 3,393 | 44,361 | 16,985 |
Depreciation on premises and equipment | 5,506 | 6,942 | 6,583 |
Amortization of intangible assets | 5,855 | 6,504 | 7,090 |
Amortization of operating lease right-of-use asset | 1,742 | 2,547 | 2,937 |
Amortization of loan servicing rights | 3,242 | 3,518 | 2,820 |
Share-based compensation expense | 1,938 | 2,175 | 2,364 |
Increase in cash surrender value of company-owned life insurance | (3,451) | (3,581) | (3,640) |
Gain on proceeds from bank-owned life insurance | (1,045) | 0 | 0 |
Investment securities amortization, net | 4,196 | 3,411 | 3,757 |
Gain on sales of investment securities, net | (537) | (1,721) | (674) |
Gain on termination of hedged interest rate swap | (2,159) | 0 | 0 |
Gain on sales of other real estate owned | (473) | (78) | (185) |
Impairment on other real estate owned | 454 | 1,390 | 16 |
Origination of loans held for sale | (504,801) | (786,203) | (504,973) |
Proceeds from sales of loans held for sale | 739,954 | 1,218,950 | 949,745 |
Gain on loans sold and held for sale | (4,952) | (14,071) | (15,082) |
Impairment on commercial mortgage servicing rights | 7,532 | 12,337 | 2,139 |
Impairment related to facilities optimization | 0 | 12,847 | 3,577 |
Net change in operating assets and liabilities: | |||
Accrued interest receivable | 4,075 | (7,199) | 1,399 |
Other assets | (31,974) | (30,269) | (5,191) |
Accrued expenses and other liabilities | 24,626 | 4,750 | 13,202 |
Net cash provided by operating activities | 334,438 | 499,147 | 538,653 |
Cash flows from investing activities: | |||
Purchases of investment securities available for sale | (469,789) | (266,514) | (200,231) |
Proceeds from sales of investment securities available for sale | 14,777 | 28,256 | 33,464 |
Maturities and payments on investment securities available for sale | 208,377 | 214,036 | 239,760 |
Purchases of equity securities | (260) | (3,345) | (82) |
Proceeds from sales of equity securities | 0 | 0 | 105 |
Net increase in loans | (258,401) | (1,279,913) | (505,501) |
Proceeds from sale of commercial FHA origination platform | 0 | 7,502 | 0 |
Purchases of premises and equipment | (2,718) | (2,589) | (5,538) |
Proceeds from sale of premises and equipment | 647 | 0 | 0 |
Purchases of nonmarketable equity securities | 0 | (12,091) | (14,263) |
Proceeds from sales of nonmarketable equity securities | 20,255 | 0 | 12,684 |
Proceeds from sales of mortgage servicing rights held for sale | 0 | 0 | 3,288 |
Proceeds from sales of other real estate owned | 9,210 | 2,225 | 1,647 |
Purchases of company-owned life insurance | (550) | 0 | 0 |
Proceeds from settlements of company-owned life insurance | 2,672 | 0 | 0 |
Net cash (paid) acquired in acquisitions | (2,715) | 0 | 69,879 |
Net cash used in investing activities | (478,495) | (1,312,433) | (364,788) |
Cash flows from financing activities: | |||
Net increase in deposits | 1,009,632 | 556,762 | 148,344 |
Net increase (decrease) in short-term borrowings | 7,846 | (13,072) | (42,206) |
Proceeds from FHLB borrowings | 500,000 | 729,000 | 360,000 |
Payments made on FHLB borrowings and other borrowings | (977,536) | (447,832) | (515,047) |
FHLB advances prepayment fees | 8,536 | 4,872 | 0 |
Proceeds from issuance of subordinated debt, net of issuance costs | 0 | 0 | 98,265 |
Payments made on subordinated debt | (31,075) | (7,443) | (19,543) |
Subordinated debt prepayment fees | 0 | 193 | 1,778 |
Cash dividends paid on preferred stock | 0 | 0 | (191) |
Redemption of preferred stock | 0 | (10) | (2,636) |
Cash dividends paid on common stock | (25,172) | (24,958) | (23,599) |
Common stock repurchased | (11,692) | (39,615) | (4,019) |
Proceeds from issuance of common stock under employee benefit plans | 2,249 | 2,524 | 5,794 |
Net cash provided by financing activities | 482,788 | 760,421 | 6,940 |
Net increase (decrease) in cash and cash equivalents | 338,731 | (52,865) | 180,805 |
Cash and cash equivalents: | |||
Beginning of period | 341,640 | 394,505 | 213,700 |
End of period | $ 680,371 | $ 341,640 | $ 394,505 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES Nature of Operations Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our wholly-owned banking subsidiary, Midland States Bank, has branches across Illinois and in Missouri, and provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management services, and insurance and financial planning services. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; commercial FHA mortgage loan servicing; residential mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for credit losses and income tax expense. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2020 and 2019 amounts have been made to conform to the 2021 presentation but do not have an effect on net income or shareholders’ equity. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying consolidated financial statements. Subsequent Events Management has evaluated subsequent events for recognition and disclosure through February 25, 2022, which is the date the financial statements were available to be issued. Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations . Under the acquisition method of accounting, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired company in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income. Cash and Cash Equivalents and Cash Flows For the presentation in the accompanying consolidated statement of cash flows, cash and cash equivalents are defined as cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one-day periods, but not longer than 30 days. The following table summarizes supplemental cash flow information: Years Ended December 31, (dollars in thousands) 2021 2020 2019 Supplemental disclosures of cash flow information: Cash payments for: Interest paid on deposits and borrowed funds $ 31,735 $ 47,712 $ 58,158 Income tax paid, net of refunds 7,759 2,977 479 Supplemental disclosures of noncash investing and financing activities: Transfer of loans to loans held for sale 123,117 542,060 419,215 Transfer of loans to other real estate owned 805 16,736 3,819 Transfer of premises and equipment, net to assets held for sale 23 11,344 4,350 Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights 705 — — Investment Securities The Company classifies its debt investment securities as available for sale or held to maturity at the time of purchase. Securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other debt securities are classified as available for sale. As of December 31, 2021, all investment securities were classified as available for sale. Investment securities available for sale are recorded at fair value with the unrealized gains and losses, net of the related tax effect, included in other comprehensive income. The related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. Available-for-sale debt securities in an unrealized loss position are evaluated, at least quarterly, for impairment related to credit losses. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, and the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recorded in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Purchase premiums are amortized over the estimated life or to the earliest call date and purchase discounts are accreted over the estimated life of the related investment security as an adjustment to yield using the effective interest method. Unamortized premiums, unaccreted discounts, and early payment premiums are recognized in interest income upon disposition of the related security. Interest and dividend income are recognized when earned. Realized gains and losses from the sale of investment securities available for sale are determined using the specific identification method and are included in noninterest income. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income. Equity Securities Investments in stock of a publicly traded company or in mutual funds are classified as equity securities. Equity securities are recorded at fair value with unrealized gains and losses recognized in net income. Nonmarketable Equity Securities Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”). The Bank is a member of the FHLB system as well as its regional FRB. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and FRB stock are both carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash dividends and stock dividends are reported as income. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as portfolio loans. Portfolio loans are carried at the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable on loans totaled $15.9 million and $19.9 million at December 31, 2021 and 2020, respectively, and was reported in accrued interest receivable on the consolidated balance sheets. Interest income on mortgage and commercial loans is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loans are charged-off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged off or at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cost-recovery or cash-basis method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Leases. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximately level rate of return on the unrecovered lease investment. Purchased Credit Deteriorated Loans. The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An allowance for credit losses on loans is determined using the same methodology as other loans held for investment. The initial allowance for credit losses on loans determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses on loans are recorded through provision expense for credit losses. Nonperforming Loans. A loan is considered nonperforming when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Nonperforming loans include loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and performing troubled debt restructured loans. Income from loans on nonaccrual status is recognized to the extent cash is received and when the principal balance is deemed collectible. Depending on a particular loan’s circumstances, we measure impairment based upon either the present value of expected future cash flows discounted at the effective interest rate, the observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the collateral. The impairment amount is charged-off to the allowance if deemed not collectible or is set up as a specific reserve. Allowance for Credit Losses on Loans The Company adopted the current expected credit loss model under Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) on January 1, 2020 using the modified retrospective approach. Results for the periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts are reported in accordance with the incurred loss model under previously applicable U.S. GAAP. The transition adjustment included an increase in the allowance for credit losses on loans of $12.8 million and an increase in the allowance on unfunded commitments of $0.3 million. The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectibility over the loans' contractual terms, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Management estimates the allowance balance using relevant information, from internal and external sources, relating to historical credit loss experience, current conditions, and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current loan-specific risk characteristics, environmental conditions or other relevant factors. Allowance for credit losses on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit loss expense related to loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged-off. While management utilizes its best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. In calculating the allowance for credit losses, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles may include internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. For modeling purposes, our loan pools include (i) commercial, (ii) commercial real estate, (iii) construction and land development, (iv) residential real estate, (v) consumer, and (vi) lease financing. We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary. The table below identifies the Company’s loan portfolio segments and classes. Segment Class Commercial Commercial Commercial Other Commercial Real Estate Commercial Real Estate Non-Owner Occupied Commercial Real Estate Owner Occupied Multi-Family Farmland Construction and Land Development Construction and Land Development Residential Real Estate Residential First Lien Other Residential Consumer Consumer Consumer Other Lease Financing Lease Financing For each loan pool, we measure expected credit losses over the life of each loan utilizing a combination of models which measure (i) probability of default (“PD”), which is the likelihood that loan will stop performing or default, (ii) loss given default (“LGD”), which is the expected loss rate for loans in default, (iii) assumed prepayment speed, which is the likelihood that a loan will prepay or pay-off prior to maturity, and (iv) exposure at default (“EAD”), which is the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the measurement date. For certain commercial loan portfolios, the PD is calculated using a transition matrix to determine the likelihood of a customer’s risk grade migrating from one specified range of risk grades to a different specified range. Expected credit losses are calculated as the product of PD (adjusted for prepayment), LGD and EAD. This methodology builds on default probabilities already incorporated into our risk grading process by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for current macroeconomic assumptions, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time we measure expected credit losses, we assess the relevancy of historical loss information and consider any necessary adjustments to address any differences in asset-specific characteristics. The measurement of expected credit losses is impacted by loan and borrower attributes and certain macroeconomic variables. Significant loan and borrower attributes utilized in our modeling processes include, among other things, (i) origination date, (ii) maturity date, (iii) payment type, (iv) collateral type and amount, (v) current risk grade, (vi) current unpaid balance and commitment utilization rate, (vii) payment status and delinquency history and (viii) expected recoveries of previously charged-off amounts. Significant macroeconomic variables utilized in our modeling processes include, among other things, (i) US and Illinois Disposable Income and Gross Domestic Product, (ii) selected market interest rates including U.S. Treasury rates and government bond rates, (iii) Consumer Price Index, (iv) commercial and residential property prices in Illinois and the US as a whole, and (v) Illinois Housing Starts and Retail Sales for the State of Illinois and US. The probability of default and prepayment assumptions were estimated by analyzing internally-sourced data related to historical performance of each loan pool. They are adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a reasonable and supportable forecast period. We have determined that we are reasonably able to forecast the macroeconomic variables used in our modeling processes with an acceptable degree of confidence for a total of two years with the last twelve months of the forecast period encompassing a reversion process whereby the forecasted macroeconomic variables are reverted to their historical mean utilizing a straight line basis. The macroeconomic variables utilized as inputs in our modeling processes were subjected to a variety of analysis procedures and were selected primarily based on statistical relevancy and correlation to our historical credit losses. By reverting these modeling inputs to their historical mean and considering loan and borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the twelve-month reversion period. The LGD is based on historical recovery averages for each loan pool, adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a two-year forecast period, with the final twelve months of the forecast period encompassing a reversion process, which management considers to be both reasonable and supportable. The same forecast and reversion periods are used for all macroeconomic variables in our models. Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor (“Q-Factor”) adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) actual and expected changes in economic and business conditions and developments that affect the collectibility of the loan pools, (iii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iv) changes in the experience, ability, and depth of our lending management and staff, (v) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (vi) changes in the quality of our credit review function, (vii) changes in the value of the underlying collateral for loans that are non-collateral dependent, (viii) the existence, growth, and effect of any concentrations of credit and (ix) other factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. Specific reserves reflect expected credit losses on loans identified for evaluation or individually considered nonperforming. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of nonaccrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include, nonaccrual loans with a balance greater than $500,000, accruing loans 90 days past due or greater with a balance greater than $100,000, specialty lending relationships and other loans as determined by management. Allowance for credit losses for consumer and residential loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis. The provision for credit losses on loans individually evaluated is recognized on the basis of the present value of expected future cash flows discounted at the effective interest rate, the fair value of collateral adjusted for estimated costs to sell, or the observable market price as of the relevant date. Allowance for credit losses on loans adjustments for estimated costs to sell are not appropriate when the repayment of the collateral-dependent loan is expected from the operation of the collateral. Loans Held for Sale Loans held for sale consist of residential and commercial FHA mortgage loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. The changes in the fair value of loans held for sale are reflected in commercial FHA revenue and residential mortgage banking revenue on the consolidated statements of income. Mortgage Repurchase Reserve The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to investors are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis. The Company’s agreements to sell residential mortgage loans usually require general representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently untrue or breached, could require the Company to indemnify or repurchase certain loans affected. The balance in the repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Company could incur from repurchasing a loan, as well as loss reimbursements, indemnification, and other “make whole” settlement resolutions. Refer to Note 22 in the consolidated financial statements for additional information on the mortgage repurchase reserve. Premises and Equipment Premises, furniture and equipment, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term. Estimated useful lives of premises and equipment range from 10 to 40 years and from 3 to 10 years, respectively. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. We periodically review the carrying value of our long-lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount. Operating Lease Right of Use Assets and Liabilities The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. The operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term, and the operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. Other Real Estate Owned Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings and is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to OREO is charged to the allowance for credit losses on loans. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income, and expense and decreases in valuations are included in other expense in the consolidated statements of income. Goodwill and Intangible Assets Goodwill resulting from a business combination is generally determined as the excess of the fair value of consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and det |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | A CQUISITIONS AND D ISPOSITIONS ATG Trust Company On June 1, 2021, the Company completed its acquisition of substantially all of the trust assets of ATG Trust, a trust company based in Chicago, Illinois, with approximately $399.7 million in assets under management. In aggregate, the Company acquired the assets of ATG Trust for $2.7 million in cash. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired at their estimated acquisition date fair values, while $0.4 million of transaction and integration costs associated with the acquisition were expensed during 2021 . A summary of the fair value of the assets acquired, liabilities assumed and resulting goodwill are included in the table below. (dollars in thousands) ATG Assets acquired: Intangible assets $ 1,847 Other assets 1,269 Total assets acquired 3,116 Liabilities assumed: Other liabilities 401 Net assets acquired and consideration paid $ 2,715 Intangible assets: Customer relationship intangible $ 1,847 Estimated useful life 6 years The identifiable assets acquired from ATG Trust included customer relationship intangibles are being amortized on a straight line basis as shown above. Commercial FHA Origination Platform On August 28, 2020, the Company announced that it had completed the sale of its commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm headquartered in New York. The Company received proceeds of $7.5 million for the sale of the commercial FHA origination platform, owned by our subsidiary, Love Funding. As part of the asset sale, goodwill of $10.9 million was derecognized and was not deductible for tax purposes, generating tax expense of $3.0 million. |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND DUE FROM BANKS | C ASH AND D UE F ROM B ANKS The Bank is required to maintain cash reserves based on the level of certain of its deposit accounts. This reserve requirement may be met by funds on deposit with the FRB and cash on hand. In response to the COVID pandemic, the Federal Reserve lowered the reserve requirement ratios to 0% effective March 26, 2020, and therefore, the Bank had no required reserve balance at December 31, 2021 and 2020. The Bank maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Bank has not experienced any losses in such accounts. The Bank believes it is not exposed to any significant credit risk from cash and cash equivalents. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | I NVESTMENT S ECURITIES Investment Securities Available for Sale Investment securities available for sale at December 31, 2021 and 2020 were as follows: 2021 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. Treasury securities $ 65,347 $ — $ 430 $ — $ 64,917 U.S. government sponsored entities and U.S. agency securities 34,569 79 831 — 33,817 Mortgage-backed securities - agency 444,484 2,687 6,901 — 440,270 Mortgage-backed securities - non-agency 29,037 50 381 — 28,706 State and municipal securities 137,904 5,561 366 — 143,099 Corporate securities 193,354 3,128 467 221 195,794 Total investment securities available for sale $ 904,695 $ 11,505 $ 9,376 $ 221 $ 906,603 2020 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 35,287 $ 377 $ 97 $ — $ 35,567 Mortgage-backed securities - agency 338,340 6,284 47 — 344,577 Mortgage-backed securities - non-agency 20,411 333 — — 20,744 State and municipal securities 122,488 7,311 5 29 129,765 Corporate securities 145,187 2,205 997 337 146,058 Total investment securities available for sale $ 661,713 $ 16,510 $ 1,146 $ 366 $ 676,711 Investment securities with a carrying amount of $371.0 million and $327.0 million were pledged for public deposits at December 31, 2021 and 2020, respectively. The following is a summary of the amortized cost and fair value of investment securities available for sale, by maturity, at December 31, 2021. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity. (dollars in thousands) Amortized Fair Investment securities available for sale Within one year $ 9,877 $ 9,976 After one year through five years 137,694 139,456 After five years through ten years 244,626 248,197 After ten years 38,977 39,998 Mortgage-backed securities 473,521 468,976 Total investment securities available for sale $ 904,695 $ 906,603 Proceeds from the sale of investment securities available for sale and the resulting gross realized gains and losses for the years ended December 31, 2021, 2020 and 2019 are summarized below: (dollars in thousands) 2021 2020 2019 Investment securities available for sale Proceeds from sales $ 14,777 $ 28,256 $ 33,464 Gross realized gains on sales 537 1,721 786 Gross realized losses on sales — — (190) The table below presents a rollforward by major security type for the year ended December 31, 2021 of the allowance for credit losses on investment securities available for sale held at period end: (dollars in thousands) State and municipal Corporate Total Changes in ACL on investment securities available for sale: For the year ended December 31, 2021 Balance, beginning of period $ 29 $ 337 $ 366 Current-period recapture of expected credit losses (29) (116) (145) Balance, end of period $ — $ 221 $ 221 For the year ended December 31, 2020 Balance, beginning of period $ — $ — $ — Current-period provision for expected credit losses 29 337 366 Balance, end of period $ 29 $ 337 $ 366 Unrealized losses and fair values for investment securities available for sale at December 31, 2021 and 2020, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: 2021 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. Treasury securities $ 64,917 $ 430 $ — $ — $ 64,917 $ 430 U.S. government sponsored entities and U.S. agency securities 17,487 263 9,432 568 26,919 831 Mortgage-backed securities - agency 317,372 6,633 9,051 268 326,423 6,901 Mortgage-backed securities - non-agency 24,095 381 — — 24,095 381 State and municipal securities 27,324 270 2,538 96 29,862 366 Corporate securities — — — — — — Total investment securities available for sale $ 451,195 $ 7,977 $ 21,021 $ 932 $ 472,216 $ 8,909 2020 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 9,903 $ 97 $ — $ — $ 9,903 $ 97 Mortgage-backed securities - agency 26,172 47 — — 26,172 47 Corporate securities 20,010 522 — — 20,010 522 Total investment securities available for sale $ 56,085 $ 666 $ — $ — $ 56,085 $ 666 For all of the above investment securities available for sale, the unrealized losses are principally related to fluctuations in the current interest rate environment, and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. At December 31, 2021, 113 investment securities available for sale had unrealized losses with aggregate depreciation of 1.85% from their amortized cost basis. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery. Equity Securities Equity securities are recorded at fair value and totaled $9.5 million and $9.4 million at December 31, 2021 and 2020, respectively. Proceeds and gross realized gains and losses on sales of equity securities as well as net unrealized gains and losses on equity securities for the years ended December 31, 2021, 2020 and 2019 are summarized below: (dollars in thousands) 2021 2020 2019 Equity securities Proceeds from sales $ — $ — $ 105 Gross realized gains on sales — — 78 Gross realized losses on sales — — — Net unrealized gains (losses) 361 577 93 Net unrealized gains and losses on equity securities were recorded in other income in the consolidated statements of income. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS | LOANS The following table presents total loans outstanding by portfolio class, at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Commercial: Commercial $ 770,670 $ 937,382 Commercial other 679,518 748,193 Commercial real estate: Commercial real estate non-owner occupied 1,105,333 871,451 Commercial real estate owner occupied 469,658 423,257 Multi-family 171,875 151,534 Farmland 69,962 79,731 Construction and land development 193,749 172,737 Total commercial loans 3,460,765 3,384,285 Residential real estate: Residential first lien 274,412 358,329 Other residential 63,739 84,551 Consumer: Consumer 106,008 80,642 Consumer other 896,597 785,460 Lease financing 423,280 410,064 Total loans, gross $ 5,224,801 $ 5,103,331 Total loans include net deferred loan costs of $4.6 million and $0.7 million at December 31, 2021 and 2020, respectively, and unearned discounts of $46.1 million and $46.5 million within the lease financing portfolio at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the Company had commercial real estate and residential real estate loans held for sale totaling $32.0 million and $138.1 million, respectively. During the years ended December 31, 2021 and 2020, the Company sold commercial real estate, residential real estate and consumer loans with proceeds totaling $740.0 million and $1.22 billion, respectively. Classifications of Loan Portfolio The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its allowance for credit losses on loans. Commercial —Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. PPP loans of $52.5 million and $184.4 million as of December 31, 2021 and 2020, respectively, and commercial FHA warehouse lines of $91.9 million and $273.3 million as of December 31, 2021 and 2020, respectively, and were included in this classification. Commercial real estate —Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans. Construction and land development —Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a real estate commercial loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans. Residential real estate —Loans secured by residential properties that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Consumer —Loans to consumers primarily for the purpose of home improvements or acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers. Lease financing —Our equipment leasing business provides financing leases to varying types of businesses, nationwide, for purchases of business equipment and software. The financing is secured by a first priority interest in the financed assets and generally requires monthly payments. Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate, consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio. We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time. The aggregate loans outstanding to the Company's directors, executive officers, principal shareholders and their affiliates totaled $13.9 million and $19.7 million at December 31, 2021 and 2020, respectively. The new loans, other additions, repayments and other reductions for the years ended December 31, 2021 and 2020, are summarized as follows: (dollars in thousands) 2021 2020 Beginning balance $ 19,693 $ 22,989 New loans and other additions 4,745 2,563 Repayments and other reductions (10,569) (5,859) Ending balance $ 13,869 $ 19,693 The following table presents, by loan portfolio, a summary of changes in the allowance for credit losses on loans for the years ended December 31, 2021, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Changes in allowance for credit losses on loans in 2021: Balance, beginning of period $ 19,851 $ 25,465 $ 1,433 $ 3,929 $ 2,338 $ 7,427 $ 60,443 Provision for credit losses on loans 648 1,031 (234) (1,085) 864 2,726 3,950 Charge-offs (6,465) (3,524) (448) (398) (1,158) (3,427) (15,420) Recoveries 341 21 221 249 514 743 2,089 Balance, end of period $ 14,375 $ 22,993 $ 972 $ 2,695 $ 2,558 $ 7,469 $ 51,062 Changes in allowance for credit losses on loans in 2020: Balance, beginning of period $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 Impact of adopting ASC 326 2,327 4,104 724 1,211 (594) 774 8,546 Impact of adopting ASC 326 - PCD loans 1,045 1,311 809 1,015 57 — 4,237 Provision for credit losses on loans 11,890 23,091 (121) (458) 1,212 7,535 43,149 Charge-offs (5,589) (13,637) (376) (522) (1,624) (3,706) (25,454) Recoveries 147 324 107 184 645 530 1,937 Balance, end of period $ 19,851 $ 25,465 $ 1,433 $ 3,929 $ 2,338 $ 7,427 $ 60,443 Changes in allowance for credit losses on loans in 2019: Balance, beginning of period $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Provision for credit losses on loans 3,852 7,939 (53) 1,392 1,767 2,088 16,985 Charge-offs (3,412) (3,339) (44) (1,076) (1,946) (2,251) (12,068) Recoveries 67 949 15 142 667 368 2,208 Balance, end of period $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 The Company utilizes a combination of models with measure probability of default and loss given default methodology in determining expected future credit losses. The probability of default is the risk that the borrower will be unable or unwilling to repay its debt in full or on time. The risk of default is derived by analyzing the obligor’s capacity to repay the debt in accordance with contractual terms. Probability of default is generally associated with financial characteristics such as inadequate cash flow to service debt, declining revenues or operating margins, high leverage, declining or marginal liquidity, and the inability to successfully implement a business plan. In addition to these quantifiable factors, the borrower’s willingness to repay also must be evaluated. The probability of default is forecasted, for most commercial and retail loans, using a regression model that determine the likelihood of default within the twelve month time horizon. The regression model uses forward-looking economic forecasts including variables such as gross domestic product, housing price index, and real disposable income to predict default rates. The forecasting method for the equipment financing portfolio assumes a rolling twelve month average of the through-the-cycle default mean, to predict default rates for the twelve month time horizon. The loss given default component is the percentage of defaulted loan balance that is ultimately charged off. As a method for estimating the allowance, a form of migration analysis is used that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. Multiplying one by the other gives the Company its loss rate, which is then applied to the loan portfolio balance to determine expected future losses. Within the model, the loss given default approach produces segmented loss given default estimates using a loss curve methodology, which is based on historical net losses from charge-off and recovery information. The main principle of a loss curve model is that the loss follows a steady timing schedule based on how long the defaulted loan has been on the books. The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look-back period includes January 2012 through the current period, on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data. Historical data is evaluated in multiple components of the expected credit loss, including the reasonable and supportable forecast and the post-reversion period of each loan segment. The historical experience is used to infer probability of default and loss given default in the reasonable and supportable forecast period. In the post-reversion period, long-term average loss rates are segmented by loan pool. Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible. The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of borrower and concentrations, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Within the probability of default segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios. The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix: Risk state Commercial loans Consumer loans and 1 0-5 0-14 2 6 15-29 3 7 30-59 4 8 60-89 Default 9+ and nonaccrual 90+ and nonaccrual Expected Credit Losses In calculating expected credit losses, the Company individually evaluates loans on nonaccrual status with a balance greater than $500,000, loans past due 90 days or more and still accruing interest, and loans that do not share risk characteristics with other loans in the pool. The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2021 and 2020: 2021 2020 Nonaccrual Nonaccrual Nonaccrual Nonaccrual with with no Total with with no Total (dollars in thousands) Allowance Allowance Nonaccrual Allowance Allowance Nonaccrual Commercial: Commercial $ 4,681 $ 2,275 $ 6,956 $ 3,498 $ — $ 3,498 Commercial Other 4,467 — 4,467 2,634 — 2,634 Commercial real estate: Commercial real estate non-owner occupied 1,914 9,912 11,826 5,509 3,823 9,332 Commercial real estate owner occupied 2,164 1,340 3,504 3,598 3,227 6,825 Multi-family 201 1,967 2,168 7,921 2,325 10,246 Farmland 155 — 155 — — — Construction and land development 83 — 83 2,131 693 2,824 Total commercial loans 13,665 15,494 29,159 25,291 10,068 35,359 Residential real estate: Residential first lien 3,116 832 3,948 8,534 1,071 9,605 Other residential 836 — 836 2,437 — 2,437 Consumer: Consumer 110 — 110 262 — 262 Lease financing 1,510 — 1,510 1,965 — 1,965 Total loans $ 19,237 $ 16,326 $ 35,563 $ 38,489 $ 11,139 $ 49,628 During the first quarter of 2020, as part of the adoption of CECL, $9.8 million of PCD loans were reclassified to nonaccrual loans. There was no interest income recognized on nonaccrual loans during the years ended December 31, 2021, 2020 and 2019 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $2.7 million, $3.3 million and $2.2 million during the years ended December 31, 2021, 2020 and 2019, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $0.1 million during each of the years ended December 31, 2021, 2020 and 2019. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent. The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2021 and 2020: Type of Collateral (dollars in thousands) Real Estate Blanket Lien Equipment Total December 31, 2021 Commercial: Commercial $ — $ 5,402 $ — $ 5,402 Commercial other — — 502 502 Commercial real estate: Commercial real estate non-owner occupied 11,604 — — 11,604 Commercial real estate owner occupied 1,336 — — 1,336 Multi-Family 1,969 — — 1,969 Total Collateral Dependent Loans $ 14,909 $ 5,402 $ 502 $ 20,813 December 31, 2020 Commercial real estate: Commercial real estate non-owner occupied 8,159 — — 8,159 Multi-Family 10,121 — — 10,121 Construction and land development 693 — — 693 Total Collateral Dependent Loans $ 18,973 $ — $ — $ 18,973 The aging status of the recorded investment in loans by portfolio as of December 31, 2021 was as follows: Accruing Loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual loans Current loans Total loans Commercial: Commercial $ 283 $ 1,082 $ — $ 1,365 $ 6,956 $ 762,349 $ 770,670 Commercial other 2,402 2,110 5 4,517 4,467 670,534 679,518 Commercial real estate: Commercial real estate non-owner occupied 585 243 — 828 11,826 1,092,679 1,105,333 Commercial real estate owner occupied 232 730 — 962 3,504 465,192 469,658 Multi-family — — — — 2,168 169,707 171,875 Farmland — 26 — 26 155 69,781 69,962 Construction and land development 195 195 — 390 83 193,276 193,749 Total commercial loans 3,697 4,386 5 8,088 29,159 3,423,518 3,460,765 Residential real estate: Residential first lien 113 285 — 398 3,948 270,066 274,412 Other residential 456 151 — 607 836 62,296 63,739 Consumer: Consumer 127 20 — 147 110 105,751 106,008 Consumer other 4,423 2,358 1 6,782 — 889,815 896,597 Lease financing 1,253 245 — 1,498 1,510 420,272 423,280 Total loans $ 10,069 $ 7,445 $ 6 $ 17,520 $ 35,563 $ 5,171,718 $ 5,224,801 The aging status of the recorded investment in loans by portfolio as of December 31, 2020 was as follows: Accruing Loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual Current Total Commercial: Commercial $ 389 $ 27 $ — $ 416 $ 3,498 $ 933,468 $ 937,382 Commercial other 4,007 3,901 896 8,804 2,634 736,755 748,193 Commercial real estate: Commercial real estate non-owner occupied 6,684 — — 6,684 9,332 855,435 871,451 Commercial real estate owner occupied 2,145 — — 2,145 6,825 414,287 423,257 Multi-family 61 — — 61 10,246 141,227 151,534 Farmland — — — — — 79,731 79,731 Construction and land development 863 — — 863 2,824 169,050 172,737 Total commercial loans 14,149 3,928 896 18,973 35,359 3,329,953 3,384,285 Residential real estate: Residential first lien 127 207 — 334 9,605 348,390 358,329 Other residential 240 135 — 375 2,437 81,739 84,551 Consumer: Consumer 325 57 — 382 262 79,998 80,642 Consumer other 4,334 2,874 — 7,208 — 778,252 785,460 Lease financing 4,539 545 645 5,729 1,965 402,370 410,064 Total loans $ 23,714 $ 7,746 $ 1,541 $ 33,001 $ 49,628 $ 5,020,702 $ 5,103,331 Troubled Debt Restructurings Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs are transferred to nonaccrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. The Coronavirus Aid, Relief, and Economic Security Act, as amended by Section 541 of the Consolidated Appropriations Act, provided all banks with the option to elect either or both of the following from March 1, 2020 until the earlier of January 1, 2022 or the date that is 60 days after the termination of the national emergency declared by President Trump on March 13, 2020: (i) to suspend the requirements under GAAP for loan modifications related to the COVID–19 pandemic that would otherwise be categorized as a TDR; and/or (ii) to suspend any determination of a loan modified as a result of the effects of the COVID–19 pandemic as being a TDR, including impairment for accounting purposes. If a bank elects, which the Bank has, a suspension noted above, the suspension (i) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and (ii) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID–19 pandemic. The outstanding balance of modifications made as a result of COVID, that were not considered TDRs, totaled $13.3 million and $209.1 million at December 31, 2021 and 2020, respectively. The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of December 31, 2021 and 2020: 2021 2020 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 833 $ 1,422 $ 2,255 $ 967 $ 558 $ 1,525 Commercial real estate 1,522 3,302 4,824 866 4,314 5,180 Construction and land development 37 — 37 39 909 948 Residential real estate 3,128 784 3,912 988 3,705 4,693 Consumer 98 — 98 41 — 41 Lease financing 1,394 241 1,635 — 38 38 Total loans $ 7,012 $ 5,749 $ 12,761 $ 2,901 $ 9,524 $ 12,425 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The allowance for credit losses on TDRs totaled $0.7 million and $0.8 million as of December 31, 2021 and 2020, respectively. The Company had no unfunded commitments in connection with TDRs at December 31, 2021 and 2020. The following table presents a summary of loans by portfolio that were restructured during the years ended December 31, 2021, 2020 and 2019. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the years ended December 31, 2021, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total For the year ended December 31, 2021: Troubled debt restructurings: Number of loans 16 3 1 10 6 9 45 Pre-modification outstanding balance $ 2,294 $ 1,639 $ 49 $ 551 $ 134 $ 1,635 $ 6,302 Post-modification outstanding balance 2,178 1,539 — 513 89 1,635 5,954 For the year ended December 31, 2020: Troubled debt restructurings: Number of loans 4 4 3 22 4 — 37 Pre-modification outstanding balance $ 989 $ 797 $ 1,010 $ 2,334 $ 34 $ — $ 5,164 Post-modification outstanding balance 967 383 900 2,172 33 — 4,455 For the year ended December 31, 2019: Troubled debt restructurings: Number of loans 1 3 2 25 5 1 37 Pre-modification outstanding balance $ 249 $ 1,924 $ 221 $ 1,422 $ 26 $ 55 $ 3,897 Post-modification outstanding balance 249 1,322 167 1,322 25 55 3,140 Credit Quality Monitoring The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. In addition our specialty finance division does nationwide bridge lending for FHA and HUD developments and originates loans for multifamily, assisted and senior living and multi-use properties. Our equipment leasing business provides financing to business customers across the country. The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities. The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly. The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company. Credit Quality Indicators The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. The Company considers all loans with Risk Grades 1 -6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered "watch credits" categorized as special mention and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 - 10 are considered problematic and require special care. Risk Grade 8 is categorized as substandard, 9 as substandard - nonaccrual and 10 as doubtful. Further, loans with Risk Grades of 7 - 10 are managed regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company's Special Assets Group. Loans not graded in the commercial loan portfolio are monitored by aging status and payment activity. The following tables present the recorded investment of the commercial loan portfolio by risk category as of December 31, 2021 and 2020: December 31, 2021 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 108,490 $ 78,071 $ 50,458 $ 20,045 $ 27,405 $ 35,856 $ 417,920 $ 738,245 Special mention 186 57 198 6,154 2 316 1,517 8,430 Substandard 380 372 1,934 1,868 64 4,322 8,099 17,039 Substandard – nonaccrual 52 — 612 177 242 169 5,704 6,956 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 109,108 78,500 53,202 28,244 27,713 40,663 433,240 770,670 Commercial other Acceptable credit quality 264,282 167,326 101,083 29,981 303 341 88,198 651,514 Special mention — 1,929 10,676 3,966 — — 3,252 19,823 Substandard 688 — 62 341 — — 2,623 3,714 Substandard – nonaccrual 10 158 3,894 384 — — 21 4,467 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 264,980 169,413 115,715 34,672 303 341 94,094 679,518 Commercial real estate Non-owner occupied Acceptable credit quality 441,483 154,379 134,507 20,524 55,207 182,465 5,258 993,823 Special mention 26 6,341 14,177 2,296 711 2,272 — 25,823 Substandard 6,196 817 8,825 20,572 14,857 22,344 250 73,861 Substandard – nonaccrual 169 992 6,206 — 195 4,264 — 11,826 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 447,874 162,529 163,715 43,392 70,970 211,345 5,508 1,105,333 Owner occupied Acceptable credit quality 141,084 69,415 47,187 35,974 30,583 98,442 1,886 424,571 Special mention 150 24 187 161 13,087 4,540 32 18,181 Substandard 4,192 1,127 10,810 205 297 6,466 305 23,402 Substandard – nonaccrual — 318 129 336 72 2,649 — 3,504 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 145,426 70,884 58,313 36,676 44,039 112,097 2,223 469,658 Multi-family Acceptable credit quality 88,329 20,080 1,973 25,450 1,414 18,642 2,241 158,129 Special mention — 451 — — — — — 451 Substandard 988 — — — — 10,139 — 11,127 Substandard – nonaccrual — — 123 — — 2,045 — 2,168 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 89,317 20,531 2,096 25,450 1,414 30,826 2,241 171,875 Farmland Acceptable credit quality 15,689 14,966 3,931 3,162 7,996 19,305 1,196 66,245 Special mention — 66 1,236 145 153 240 — 1,840 Substandard 371 76 166 211 — 898 — 1,722 Substandard – nonaccrual — — — 105 — — 50 155 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 16,060 15,108 5,333 3,623 8,149 20,443 1,246 69,962 Construction and land development Acceptable credit quality 65,053 65,274 19,269 10,029 2,511 3,841 19,452 185,429 Special mention — — 5,014 — — 221 — 5,235 Substandard — 1,336 — — — — — 1,336 Substandard – nonaccrual — — 43 — — 40 — 83 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Subtotal 66,518 66,647 24,326 10,029 2,511 4,266 19,452 193,749 Total Acceptable credit quality 1,124,410 569,511 358,408 145,165 125,419 358,892 536,151 3,217,956 Special mention 362 8,868 31,488 12,722 13,953 7,589 4,801 79,783 Substandard 12,815 3,728 21,797 23,197 15,218 44,169 11,277 132,201 Substandard – nonaccrual 231 1,468 11,007 1,002 509 9,167 5,775 29,159 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Total Commercial loans $ 1,139,283 $ 583,612 $ 422,700 $ 182,086 $ 155,099 $ 419,981 $ 558,004 $ 3,460,765 December 31, 2020 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 117,792 $ 107,915 $ 35,649 $ 34,753 $ 22,025 $ 51,593 $ 517,929 $ 887,656 Special mention 244 201 4,897 3,729 4,968 881 7,721 22,641 Substandard 544 1,953 1,259 104 248 4,861 14,618 23,587 Substandard – nonaccrual 2 31 640 936 154 458 1,277 3,498 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 118,582 110,100 42,445 39,522 27,395 57,793 541,545 937,382 Commercial other Acceptable credit quality 416,306 157,232 52,843 739 303 677 88,250 716,350 Special mention 1,871 10,691 3,810 31 79 — 5,315 21,797 Substandard 255 260 1,078 3 12 — 5,351 6,959 Substandard – nonaccrual — 1,984 641 — 4 — 5 2,634 Doubtful — — — — — — — — Not graded 453 — — — — — — 453 Subtotal 418,885 170,167 58,372 773 398 677 98,921 748,193 Commercial real estate Non-owner occupied Acceptable credit quality 168,788 109,602 63,435 91,763 97,293 156,958 5,248 693,087 Special mention 3,011 9,107 3,231 483 14,294 17,816 4,279 52,221 Substandard 7,469 16,306 13,813 23,169 16,897 38,907 250 116,811 Substandard – nonaccrual 125 325 101 — 3,438 5,343 — 9,332 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 179,393 135,340 80,580 115,415 131,922 219,024 9,777 871,451 Owner occupied Acceptable credit quality 68,688 55,502 38,471 55,526 63,105 91,986 4,066 377,344 Special mention 1,882 3,578 225 4,142 1,038 7,289 — 18,154 Substandard 4,078 468 1,023 760 5,861 8,430 314 20,934 Substandard – nonaccrual 373 200 170 241 — 5,441 400 6,825 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 75,021 59,748 39,889 60,669 70,004 113,146 4,780 423,257 Multi-family Acceptable credit quality 12,865 6,921 19,204 32,934 10,674 24,375 1,281 108,254 Special mention 465 — 8,442 — — 1,323 — 10,230 Substandard — 10,945 1,518 — 10,266 75 — 22,804 Substandard – nonaccrual — — — — 7,804 2,442 — 10,246 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 13,330 17,866 29,164 32,934 28,744 28,215 1,281 151,534 Farmland Acceptable credit quality 18,556 6,846 3,873 8,803 6,013 23,921 1,814 69,826 Special mention 274 1,387 180 38 298 784 — 2,961 Substandard 2,241 307 802 127 877 2,435 155 6,944 Substandard – nonaccrual — — — — — — — — Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 21,071 8,540 4,855 8,968 7,188 27,140 1,969 79,731 Construction and land development Acceptable credit quality 36,488 83,440 11,625 3,554 2,506 4,263 15,941 157,817 Special mention — — 454 — — — — 454 Substandard 1,386 8,875 — — — 914 — 11,175 Substandard – nonaccrual — 242 — — 152 2,430 — 2,824 Doubtful — — — — — — — — Not graded 467 — — — — — — 467 Subtotal 38,341 92,557 12,079 3,554 2,658 7,607 15,941 172,737 Total Acceptable credit quality 839,483 527,458 225,100 228,072 201,919 353,773 634,529 3,010,334 Special mention 7,747 24,964 21,239 8,423 20,677 28,093 17,315 128,458 Substandard 15,973 39,114 19,493 24,163 34,161 55,622 20,688 209,214 Substandard – nonaccrual 500 2,782 1,552 1,177 11,552 16,114 1,682 35,359 Doubtful — — — — — — — — Not graded 920 — — — — — — 920 Total Commercial loans $ 864,623 $ 594,318 $ 267,384 $ |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT, NET | P REMISES AND E QUIPMENT , N ET A summary of premises and equipment at December 31, 2021 and 2020 is as follows: (dollars in thousands) 2021 2020 Land $ 15,696 $ 16,158 Buildings and improvements 67,143 65,932 Furniture and equipment 33,545 33,202 Total 116,384 115,292 Accumulated depreciation (45,592) (41,168) Premises and equipment, net $ 70,792 $ 74,124 Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $5.5 million, $6.9 million, and $6.6 million, respectively. The Company closed 13 branches, or 20% of its branch network, and vacated approximately 23,000 square feet of corporate office space between September 3, 2020 and December 31, 2020, recording $12.7 million of asset impairment on existing banking facilities, including $2.4 million of asset impairment on right-of-use assets, and $0.8 million in other related charges, all of which was recognized in other expense in the consolidated statements of income In 2019, the Company closed one facility and consolidated two additional facilities as a result of the acquisition of HomeStar, as further discussed in Note 2 to the consolidated financial statements. In addition, the Company planned to consolidate three other existing facilities in other areas of its footprint, one of which closed in 2019 and the remaining two facilities closed in January of 2020. Consequently, during the year ended December 31, 2019, the Company recorded $3.2 million of asset impairment on banking facilities to be closed, which was recognized in other expense in the consolidated statements of income. Assets held for sale were $2.3 million and $4.2 million at December 31, 2021 and 2020, respectively, which are included in other assets in our consolidated balance sheets. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company had operating lease right-of-use assets of $8.4 million and $9.2 million as of December 31, 2021 and 2020, respectively, and operating lease liabilities of $10.7 million and $12.0 million at the same dates, respectively . As a result of the branch and corporate office reductions in 2020, discussed in Note 6, the Company recorded $2.4 million of asset impairment on existing right-of-use assets, which was recognized in other expense in the consolidated statements of income. The operating leases, primarily for banking offices and operating facilities, have remaining lease terms of 6 months to 11 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included if they are reasonably certain to be exercised. Information related to operating leases for the years ended December 31, 2021 and 2020 was as follows: (dollars in thousands) 2021 2020 Operating lease cost $ 2,080 $ 2,943 Operating cash flows related to leases 2,566 3,280 Right-of-use assets obtained in exchange for lease obligations 1,118 1,616 Right-of-use assets derecognized due to terminations or impairment (210) (4,467) Weighted average remaining lease term 7.58 years 8.10 years Weighted average discount rate 2.85 % 2.90 % Net rent expense under operating leases, included in occupancy and equipment expense, was $1.4 million , $2.3 million and $2.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. The projected minimum rental payments under the terms of the leases as of December 31, 2021 are as follows: (dollars in thousands) Amount Year ending December 31, 2022 $ 2,180 2023 2,094 2024 1,799 2025 894 2026 763 Thereafter 4,251 Total future minimum lease payments 11,981 Less imputed interest (1,267) Total operating lease liabilities $ 10,714 |
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING RIGHTS | L OAN S ERVICING R IGHTS A summary of loan servicing rights at December 31, 2021 and 2020 is as follows: 2021 2020 (dollars in thousands) Serviced Loans Carrying Value Serviced Loans Carrying Value Commercial FHA $ 2,650,531 $ 27,386 $ 3,499,258 $ 38,322 SBA 50,043 $ 774 49,223 $ 954 Residential (1) 302,618 $ 705 382,302 $ 878 Total $ 3,003,192 $ 28,865 $ 3,930,783 $ 40,154 (1) At December 31, 2020, residential mortgage servicing rights were classified as held for sale and carried at fair value less estimated costs to sell. These were reclassified to loan servicing rights effective December 31, 2021. Commercial FHA Mortgage Loan Servicing Changes in our commercial FHA loan servicing rights for the years ended December 31, 2021, 2020 and 2019 are summarized as follows: (dollars in thousands) 2021 2020 2019 Loan servicing rights: Balance, beginning of period $ 38,322 $ 57,637 $ 56,252 Originated servicing — 1,128 4,124 Amortization (2,965) (3,162) (2,739) Refinancing fee received from third party (439) — — Permanent impairment (7,532) (17,281) — Balance, end of period 27,386 38,322 57,637 Valuation allowances: Balance, beginning of period — 4,944 2,805 Additions — 12,337 2,698 Reductions — (17,281) (559) Balance, end of period — — 4,944 Loan servicing rights, net $ 27,386 $ 38,322 $ 52,693 Fair value: At beginning of period $ 38,322 $ 52,693 $ 53,447 At end of period $ 28,368 $ 38,322 $ 52,693 The fair value of commercial FHA loan servicing rights is determined using key assumptions, representing both general economic and other published information, including the assumed earnings rates related to escrow and replacement reserves, and the weighted average characteristics of the commercial portfolio, including the prepayment rate and discount rate. The prepayment rate considers many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies and geographic location. The discount rate is based on an average pre-tax internal rate of return utilized by market participants in pricing the servicing portfolio. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement. The weighted average prepayment rate was 8.24% and 8.18% at December 31, 2021 and 2020, respectively, while the weighted average discount rate was 11.87% and 11.48% for the same periods, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | G OODWILL AND O THER I NTANGIBLE A SSETS The carrying amount of goodwill by segment at December 31, 2021 and 2020 is summarized as follows: (dollars in thousands) 2021 2020 Banking $ 157,158 $ 157,158 Wealth management 4,746 4,746 Total goodwill $ 161,904 $ 161,904 The Company’s intangible assets consist of core deposit and customer relationship intangibles. Intangible assets are assessed for impairment at least annually or more frequently if events and circumstances exists that indicate that an intangible impairment test should be performed. The Company has not identified any events or changes in circumstances that would indicate a change in the recoverability of the carrying value of intangible assets and, therefore, no impairment was recognized during 2021, 2020 or 2019. The Company's intangible assets as of December 31, 2021 and 2020 are summarized as follows: 2021 2020 (dollars in thousands) Gross Accumulated Total Gross Accumulated Total Core deposit intangibles $ 57,012 $ (40,603) $ 16,409 $ 57,012 $ (36,005) $ 21,007 Customer relationship intangibles 15,918 (7,953) 7,965 14,071 (6,696) 7,375 Total intangible assets $ 72,930 $ (48,556) $ 24,374 $ 71,083 $ (42,701) $ 28,382 In conjunction with the acquisition of ATG Trust, the Company recorded $1.8 million of customer relationship intangibles, which are being amortized on a straight line basis over an estimated useful life of 6 years. Amortization of intangible assets was $5.9 million, $6.5 million and $7.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization expense for future years is as follows: (dollars in thousands) Amount Year ending December 31, 2022 $ 5,208 2023 4,433 2024 3,717 2025 2,966 2026 2,450 Thereafter 5,600 Total $ 24,374 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | D ERIVATIVE I NSTRUMENTS As part of the Company’s overall management of interest rate sensitivity, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities, cash flow hedges and interest rate swap contracts. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities The Company issues interest rate lock commitments on originated fixed-rate commercial and residential real estate loans to be sold. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets or other liabilities in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The following tables summarize the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at December 31, 2021 and 2020: Notional Amount Fair Value Gain (dollars in thousands) 2021 2020 2021 2020 Derivative Instruments (included in other assets): Interest rate lock commitments $ 66,216 $ 136,227 $ 410 $ 2,217 Forward commitments to sell mortgage-backed securities 60,427 218,126 — — Total $ 126,643 $ 354,353 $ 410 $ 2,217 Notional Amounts Fair Value Loss (dollars in thousands) 2021 2020 2021 2020 Derivative Instruments (included in other liabilities): Forward commitments to sell mortgage-backed securities $ 18,362 $ 33,240 $ 19 $ 309 During the years ended December 31, 2021, 2020 and 2019, the Company recognized net losses of $1.5 million, $1.4 million and $1.1 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Cash Flow Hedges In 2020, the Company entered into interest rate swap agreements, which qualify as cash flow hedges, to manage the risk of changes in future cash flows due to interest rate fluctuations. The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain FHLB advances at December 31, 2020: (dollars in thousands) 2020 Notional Amount $ 100,000 Average remaining life in years 5.3 Weighted average pay rate 0.57 % Weighted average receive rate 0.22 % During 2021, the Company terminated the above interest rate swap agreements in conjunction with the repayment of FHLB advances of $100.0 million. A net gain of $2.2 million was recognized in other income in the consolidated statements of income. In addition, the Company has entered into $140.0 million notional amount of future starting pay-fixed, receive-variable interest rate swaps on certain FHLB or other fixed-rate advances. These swaps are effective beginning in April 2023. The Company pays or receives the net interest amount quarterly based on the respective hedge agreement and includes the amount as part of FHLB advances interest expense on the consolidated statements of income. Quarterly, the effectiveness evaluation is based on the fluctuation of the interest the Company pays to the FHLB for the debt as compared to the three-month LIBOR interest received from the counterparty. At December 31, 2021, the $5.1 million fair value of the cash flow hedges was included in other assets in the consolidated balance sheets. The tax effected amount of $3.7 million was included in accumulated other comprehensive income. There were no amounts recorded in the consolidated statements of income for the year ended December 31, 2021, related to ineffectiveness. Interest Rate Swap Contracts The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting. The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $7.9 million and $8.5 million at December 31, 2021 and 2020, respectively. The fair value of the customer derivative |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The following table summarizes the classification of deposits at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Noninterest-bearing demand $ 2,245,701 $ 1,469,579 Interest-bearing: Checking 1,663,021 1,568,888 Money market 869,067 785,871 Savings 679,115 597,966 Time 653,744 678,712 Total deposits $ 6,110,648 $ 5,101,016 Included in time deposits are uninsured time certificates of $143.5 million and $88.3 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the scheduled maturities of time deposits were as follows: (dollars in thousands) Amount Year Ending December 31, 2022 $ 377,823 2023 134,092 2024 82,430 2025 19,778 2026 39,597 Thereafter 24 Total $ 653,744 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | S HORT -T ERM B ORROWINGS The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended December 31, 2021 and 2020: Repurchase Agreements (dollars in thousands) 2021 2020 Outstanding at period-end $ 76,803 $ 68,957 Average amount outstanding 68,986 60,306 Maximum amount outstanding at any month end 77,497 77,136 Weighted average interest rate: During period 0.12 % 0.30 % End of period 0.13 % 0.12 % Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction, which represents the amount of the Bank’s obligation. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Investment securities with a carrying amount of $78.3 million and $76.5 million at December 31, 2021 and 2020, respectively, were pledged for securities sold under agreements to repurchase. The Company had available lines of credit of $55.9 million and $54.4 million at December 31, 2021 and 2020, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $64.8 million and $68.1 million at December 31, 2021 and 2020, respectively. There were no outstanding borrowings at December 31, 2021 and 2020. At December 31, 2021, the Company had federal funds lines of credit totaling $45.0 million. These lines of credit were unused at December 31, 2021. |
FHLB ADVANCES AND OTHER BORROWI
FHLB ADVANCES AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
FHLB ADVANCES AND OTHER BORROWINGS | FHLB A DVANCES AND O THER B ORROWINGS The following table summarizes our FHLB advances and other borrowings at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Midland States Bancorp, Inc. Series G redeemable preferred stock – 171 and 171 shares at December 31, 2021 and 2020, respectively at $1,000 per share $ 171 $ 171 Midland States Bank FHLB advances – fixed rate, fixed term at rates averaging 0.24% at December 31, 2020 — 304,000 FHLB advances – putable fixed rate at rates averaging 1.48% and 2.01% at December 31, 2021 and 2020, respectively – maturing through February 2030 with call provisions through February 2022 210,000 475,000 FHLB advances - SOFR floater at rates averaging 1.67% at December 31, 2021 - maturing in October 2023 100,000 — Total FHLB advances and other borrowings $ 310,171 $ 779,171 The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling $2.10 billion and $1.86 billion at December 31, 2021 and 2020, respectively. Contractual payments over the next five years for FHLB advances and other borrowings were as follows: (dollars in thousands) Amount Year Ending December 31, 2022 $ — 2023 140,000 2024 70,000 2025 — 2026 — Thereafter 100,171 Total $ 310,171 |
SUBORDINATED DEBT
SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | S UBORDINATED D EBT The following table summarizes the Company’s subordinated debt at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Subordinated debt issued June 2015 – variable interest rate equivalent to three month LIBOR plus 4.35%, which was 4.59% at December 31, 2020 $ — $ 31,075 Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 – maturing June 18, 2025 546 545 Subordinated debt issued October 2017 - fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 – maturing October 15, 2027 39,626 39,561 Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 – maturing September 30, 2029 72,042 71,785 Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 – maturing September 30, 2034 26,877 26,829 Total subordinated debt $ 139,091 $ 169,795 In June 2015, the Company issued, through a private placement, $55.3 million aggregate principal amount of subordinated debentures. The transaction was structured in two tranches: (1) $40.3 million, maturing on June 18, 2025 with a redemption option on or after June 18, 2020, with a fixed rate of interest of 6.00% for the first five years, payable semiannually in arrears beginning December 18, 2015, and a floating rate of interest equivalent to the three-month LIBOR plus 435 basis points thereafter, payable quarterly beginning on September 18, 2020; and (2) $15.0 million, maturing on June 18, 2025, with a fixed rate of interest of 6.50%, payable semiannually in arrears beginning December 18, 2015. The value of the subordinated debentures was reduced by $0.9 million of debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date of the subordinated debentures. Of the $40.3 million subordinated debentures the Company repurchased $2.0 million during the fourth quarter of 2019, $7.3 million during the first quarter of 2020 and the remaining $31.1 million during the second quarter of 2021. The Company recognized losses of $1.4 million in the fourth quarter of 2019 and $0.2 million in the first quarter of 2020, which included the premium paid for the repurchase and the remaining unamortized debt issuance costs on such repurchases. No gain or loss was recognized on the 2021 repurchase. The Company also repurchased $14.5 million of the $15.0 million subordinated debentures during the fourth quarter of 2019 and recognized a loss of $0.4 million which included the premium paid for the repurchase and the remaining unamortized debt issuance costs on such repurchases. These losses were recognized in other noninterest expense in the consolidated statements of income. On October 13, 2017, the Company issued, through a private placement, $40.0 million aggregate principal amount of subordinated debentures with a maturity date of October 15, 2027. The subordinated debentures bear a fixed rate of interest of 6.25% for the first five years, payable semiannually in arrears beginning April 15, 2018, and a floating rate of interest equal to the three-month LIBOR plus 422.9 basis points thereafter, payable quarterly in arrears beginning January 15, 2023. The subordinated debentures will be redeemable by the Company, in whole or in part, on or after October 15, 2022, and are not subject to redemption at the option of the holders. The value of the subordinated debentures was reduced by $0.6 million of debt issuance costs, which are being amortized on a straight line basis through the maturity of the subordinated debentures. On September 20, 2019, the Company issued, through a private placement, $100.0 million aggregate principal amount of subordinated debentures. The transaction was structured in two tranches: (1) $72.8 million , maturing on September 30, 2029 with a redemption option on or after September 30, 2024, with a fixed rate of interest of 5.00% for the first five years, payable semiannually in arrears beginning March 30, 2020, and a floating rate of interest equivalent to the three-month Secured Overnight Financing Rate (“SOFR”) plus 361.0 basis points thereafter, payable quarterly in arrears beginning on December 30, 2024; and (2) $27.3 million , maturing on September 30, 2034 with a redemption option on or after September 30, 2029, with a fixed rate of interest of 5.50% for the first ten years, payable semiannually in arrears beginning March 30, 2020, and a floating rate of interest equivalent to the three-month SOFR plus 404.5 basis points thereafter, payable quarterly in arrears beginning on December 30, 2029. The value of the subordinated debentures was reduced by $1.6 million of debt issuance costs , which are being amortized on a straight line basis through the redemption option of the subordinated debentures. All of the subordinated debentures mentioned above may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
TRUST PREFERRED DEBENTURES
TRUST PREFERRED DEBENTURES | 12 Months Ended |
Dec. 31, 2021 | |
TRUST PREFERRED DEBENTURES | |
TRUST PREFERRED DEBENTURES | T RUST P REFERRED D EBENTURES The following table summarizes the Company’s trust preferred debentures at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 2.87% and 2.96% at December 31, 2021 and 2020, respectively – $10,310 maturing April 23, 2034 $ 10,279 $ 10,276 Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 2.98% and 3.06%, at December 31, 2021 and 2020, respectively – $3,093 maturing January 23, 2034 2,363 2,314 Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 1.95% and 1.97% at December 31, 2021 and 2020, respectively – $20,619 maturing December 31, 2036 14,647 14,442 Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 1.65% and 1.70% at December 31, 2021 and 2020, respectively – $20,619 maturing September 6, 2037 13,830 13,621 Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 2.87% and 2.88% at December 31, 2021 and 2020, respectively - $10,310 maturing June 17, 2034 8,255 8,161 Total trust preferred debentures $ 49,374 $ 48,814 On March 26, 2004, the Company formed Midland States Preferred Securities Trust (“Midland Trust”), a statutory trust under the Delaware Statutory Trust Act. Midland Trust issued a pool of $10.0 million of floating rate cumulative trust preferred securities with a liquidation amount of $1,000 per security. The Company issued $10.3 million of subordinated debentures to the Midland Trust in exchange for ownership of all the common securities of the Midland Trust. The Company is not considered the primary beneficiary of the Midland Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized debt issuance costs, are shown as a liability. The Company’s investment in the common stock of the trust was $0.3 million and is included in other assets. In conjunction with the acquisition of Grant Park Bancshares, Inc. (“Grant Park”) on June 5, 2013, the Company assumed $3.1 million of subordinated debentures that were recorded at a fair value of $1.8 million at the time of acquisition. On December 19, 2003, Grant Park Statutory Trust I (“Grant Park Trust”) issued 3,000 shares of preferred securities with a liquidation amount of $1,000 per security. Grant Park issued $3.1 million of subordinated debentures to the Grant Park Trust in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of the Grant Park Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability. The Company’s investment in the common stock of the trust was $0.1 million and is included in other assets. In conjunction with the acquisition of Love Savings Holding Company (“LSHC”) on December 31, 2014, the Company assumed $41.2 million of subordinated debentures that were recorded at a fair value of $26.1 million at the time of acquisition. On November 30, 2006, Love Savings/Heartland Capital Trust III (“LSHC Trust III”) issued 20,000 shares of capital securities with a liquidation amount of $1,000 per security. LSHC issued $20.6 million of subordinated debentures to LSHC Trust III in exchange for ownership of all the common securities of the trust. On June 6, 2007, Love Savings/Heartland Capital Trust IV (“LSHC Trust IV”) issued 20,000 shares of capital securities with a liquidation amount of $1,000 per security. LSHC issued $20.6 million of subordinated debentures to LSHC Trust IV in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of LSHC Trust III or LSHC Trust IV; therefore, the trusts are not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability. The Company’s investment in the common stock of the trusts was $1.2 million and is included in other assets. In conjunction with the acquisition of Centrue on June 9, 2017, the Company assumed $10.3 million of subordinated debentures that were recorded at a fair value of $7.6 million at the time of acquisition. In April 2004, Centrue Statutory Trust II (“Centrue Trust II”) issued 10,000 shares of trust preferred securities with a liquidation amount of $1,000 per preferred security. Centrue issued $10.3 million of subordinated debentures to Centrue Trust II in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of Centrue Trust II; therefore, the trust is not consolidated in the Company’s consolidated financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability, and the Company’s investment in the common stock of Centrue Trust II of $0.3 million is included in other assets. For all of the debentures mentioned above, interest is payable quarterly. The debentures and the common securities issued by each of the trusts are redeemable in whole or in part on dates each quarter at the redemption price plus interest accrued to the redemption date, as specified in the trust indenture document. The debentures are also redeemable in whole or in part from time to time upon the occurrence of “special events” defined within the indenture document. Subject to certain exceptions and limitations, the Company may, from time to time, defer subordinated debenture interest payments, which would result in a deferral of distribution payments on the related trust preferred securities, and, with certain exceptions, prevent the Company from declaring or paying cash distributions on common stock or debt securities that rank pari passu or junior to the subordinated debentures. All of the subordinated debentures mentioned above may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | I NCOME T AXES The components of income taxes for the years ended December 31, 2021, 2020 and 2019 were as follows: (dollars in thousands) 2021 2020 2019 Federal: Current $ 10,044 $ 10,924 $ 2,318 Deferred 7,926 (3,852) 8,287 State: Current 144 1,271 1,761 Deferred (319) 1,134 4,321 Total income tax expense $ 17,795 $ 9,477 $ 16,687 The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2021, 2020 and 2019 as follows: (dollars in thousands) 2021 2020 2019 Expected income taxes $ 20,814 $ 6,723 $ 15,218 Less income tax effect of: Tax-exempt income, net (2,499) (2,398) (2,568) State tax, net of federal benefit 5,465 1,900 4,805 State tax settlement, net of federal expense (5,614) — — Equity-based compensation benefit (93) 239 (484) Non-deductible transaction costs — — 110 Disposition of nondeductible goodwill — 2,287 — Valuation allowance 47 10 62 Other (325) 716 (456) Actual income tax expense $ 17,795 $ 9,477 $ 16,687 On June 29, 2021, the Company announced the settlement of a prior tax issue related to the treatment of gains recognized on FDIC-assisted transactions that resulted in a $6.8 million tax benefit that was recognized in 2021. The tax expense associated with the disposition of nondeductible goodwill is related to Love Funding Corporation's asset disposition discussed in Note 2. Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2021 and 2020 include the following amounts of deferred tax assets and liabilities: (dollars in thousands) 2021 2020 Assets: Allowance for credit losses on loans $ 14,042 $ 16,622 Deferred compensation 2,177 2,152 Loans 1,835 2,772 Tax credits 1,067 1,047 Net operating losses 10,113 11,231 Fair value adjustment on investments 879 1,067 Premises and equipment — 433 Operating lease liabilities 2,946 3,289 Other, net 3,519 3,861 Deferred tax assets 36,578 42,474 Valuation allowance (118) (71) Deferred tax assets, net of valuation allowance 36,460 42,403 Liabilities: Premises and equipment 472 — Unrealized gain on securities 569 4,169 Mortgage servicing rights 5,958 8,315 Fair value adjustment on trust preferred debentures 4,264 4,417 Deferred loan costs, net of fees 3,444 3,632 Intangible assets 5,651 6,921 Software development costs 1,446 1,522 Leased equipment 22,297 17,910 Operating lease right-of-use assets 2,318 2,524 Other, net 3,619 1,315 Deferred tax liabilities 50,038 50,725 Deferred tax liabilities, net $ (13,578) $ (8,322) At December 31, 2021 and 2020, the accumulation of the prior year’s earnings representing tax bad debt deductions was approximately $3.1 million for both years. If these tax bad debt reserves were charged for losses other than bad debt losses, the Company would be required to recognize taxable income in the amount of the charge. It is not expected that such tax-restricted retained earnings will be used in a manner that would create federal income tax liabilities. The Company had $43.0 million of federal net operating loss carryforwards expiring 2022 through 2035, $14.0 million of Illinois post-apportioned net operating loss carryforwards expiring in 2026 and 2027, and $43.0 million of Missouri pre-apportioned net operating loss carryforwards expiring 2022 through 2035, at December 31, 2021. The utilization of the federal and Missouri net operating losses are subject to the limitations of Internal Revenue Code Section 382. The utilization of the Illinois net operating loss is limited to $100,000 per year for years 2021 through 2023 and the carryforward period will toll in years the Company could have utilized more than $100,000 of net operating loss. The Company has state tax credit carryforwards of $1.3 million with a five year carryforward period, expiring between 2022 and 2026. Any amounts that are expected to expire before being fully utilized have been accounted for through a valuation allowance as discussed below. We had no unrecognized tax benefits as of December 31, 2021 and 2020, and did not recognize any increase of unrecognized benefits during 2021 relative to any tax positions taken during the year. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in other income or expense; no such accruals existed as of December 31, 2021 and 2020. Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. All available evidence, both positive and negative, should be considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. At December 31, 2021, the Company concluded, based on all available evidence, a valuation allowance was needed for the Company’s deferred tax asset related to capital loss carry forwards. An addition was made to the $0.1 million valuation allowance from December 31, 2020 in the amount of $0.05 million, resulting in a valuation allowance of $0.1 million at December 31, 2021 for the estimated capital losses that will not be able to be utilized in the future. For the Company's remaining deferred tax assets, based on our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences. The Company is subject to U.S. federal income tax as well as income tax of various states. Years that remain open for potential review by the Internal Revenue Service are 2018 through 2020 and by state taxing authorities are 2017 through 2020. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | R ETIREMENT P LANS Profit Sharing Plan We sponsor the Midland States Bank 401(k) Profit Sharing Plan, which provides retirement benefits to substantially all of our employees. There were no employer discretionary profit sharing contributions made to the 401(k) plan in 2021, 2020 and 2019. The 401(k) component of the plan allows participants to defer a portion of their compensation ranging from 1% to 100%. Such deferrals accumulate on a tax deferred basis until the participant withdraws the funds. The Company matches 50% of participant contributions up to 6% of their compensation. Total expense recorded for the Company match was $1.2 million, $1.7 million and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Deferred Compensation Arrangements Certain executive officers participate in a nonqualified deferred compensation arrangement. Beginning in May 2020, the plan is fully funded in a trust controlled by the Company with the gains and losses recognized in other noninterest income. The trust asset is reflected in the Company's equity securities with the offsetting deferred compensation liability reflected in other liabilities. The expense associated with the gains and losses, which are due to the employee upon distribution, is recognized in salaries and employee benefits. The following table summarizes the activity in the asset and liability balances of the executive officer nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Beginning balance, trust asset $ 3,657 $ — $ — Contributions 207 3,264 — Gain on trust assets 359 499 — Distributions (509) (106) — Ending balance, trust asset $ 3,714 $ 3,657 $ — Beginning balance, deferred compensation liability $ 3,657 $ 2,978 $ 2,383 Deferred compensation 207 350 751 Expense on deferred compensation liability 359 506 8 Distributions (509) (177) (164) Ending balance, deferred compensation liability $ 3,714 $ 3,657 $ 2,978 Certain directors also participate in a nonqualified deferred compensation arrangement. The deferred compensation liability is reflected in other liabilities with the associated expense recognized in other noninterest expense. The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Beginning balance, deferred compensation liability $ 4,560 $ 5,007 $ 4,135 Deferred compensation 606 586 679 Expense on deferred compensation liability 251 270 236 Distributions (45) (1,303) (43) Ending balance, deferred compensation liability $ 5,372 $ 4,560 $ 5,007 Defined Benefit Pension Plan The Bank participated in the Pentegra Defined Benefit Plan for Financial Institutions, a non-contributory defined benefit pension plan for certain former employees of Heartland Bank who met prescribed eligibility requirements. The multiple-employer plan operates as a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the amounts contributed by the participating institutions are maintained in the aggregate. The plan was funded based on an annual valuation performed by the plan administrator. For Heartland Bank participants, benefits under the plan were frozen July 1, 2004. The funded status of the plan (allocated market value of assets divided by funding target associated with Heartland Bank participants) was 141.37% as of July 1, 2021, the latest actuarial valuation date. The minimum required contribution for 2021 and 2020 was $0.1 million and $0.2 million, respectively. Effective October 1, 2021, the Bank withdrew from the multiple-employer plan by transferring assets and liabilities to a qualified successor plan under actuarial assumptions and methodology determined appropriate by Pentegra. Assets of $16.6 million were transferred to the successor plan on November 30, 2021. Transferred liability excludes the previously allocated orphan liability. For minimum funding purposes, this single-employer plan operates under Internal Revenue Code Sections 430 and 436. The successor plan would remain above 100% funded if valued as of July 1, 2021, and the minimum required contribution for 2022 is expected to be zero. Previously, costs for administration, shortfalls in funds to maintain the frozen level of benefit coverage and differences of actuarial assumptions related to the frozen benefits were expensed as incurred. As a result, there is no recognized accrued or prepaid pension cost as of December 31, 2021. Initial application of ASC 715 to the successor plan will result in a transition asset or obligation equal to the plan’s funded status. For future periods, the net periodic benefit cost will vary from contributions made during the year. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | S HARE -B ASED C OMPENSATION Previously, the Company granted equity awards under the Midland States Bancorp, Inc. Second Amended and Restated 2010 Long-Term Incentive Plan (“2010 Incentive Plan”). Following approval of our 2019 Incentive Plan, no additional awards may be granted from our 2010 Incentive Plan; however, any previously granted award will remain subject to the terms of the 2010 Incentive Plan for so long as they remain outstanding. Total compensation cost that has been charged against income under the plans was $1.9 million, $2.2 million and $2.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock The Company granted 128,049 and 94,998 shares of restricted stock awards in 2021 and 2020, respectively. These awards have a vesting period of four years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of grant. A summary of the activity for restricted stock awards and restricted stock unit awards for the year follows: Number Weighted Nonvested, beginning of year 233,010 $ 22.64 Granted 128,049 25.67 Vested (77,319) 24.60 Forfeited (21,922) 21.66 Nonvested, end of year 261,818 $ 23.62 As of December 31, 2021, there was $5.6 million of total unrecognized compensation cost related to the nonvested shares granted under the plans. The cost is expected to be recognized over a weighted average period of 3.0 years. The weighted average grant date fair value for restricted stock awards was $25.67, $14.85 and $27.67 during the years ended December 31, 2021, 2020 and 2019, respectively. Stock Options The Company did not grant stock options in any of the years ended December 31, 2021, 2020 and 2019. All stock options outstanding are related to grants from prior years. The summary of our stock option activity during the years ended December 31, 2021 and 2020 is as follows: 2021 2020 Shares Weighted Weighted Shares Weighted Weighted Option outstanding, beginning of year 467,489 $ 21.40 623,122 $ 20.83 Options granted — — — — Options exercised (116,147) 19.16 (39,500) 17.90 Options forfeited — — (3,268) 28.89 Options expired (26,548) 27.07 (112,865) 19.26 Options outstanding, end of year 324,794 21.74 3.1 years 467,489 21.40 4.1 years Options exercisable 324,794 21.74 3.1 years 463,590 21.31 4.1 years Options vested and expected to vest 324,794 21.74 3.1 years 467,060 21.39 4.1 years The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2021 was $1.3 million. The total intrinsic value and cash received from options exercised under share-based payment arrangements was $0.8 million and $2.2 million, respectively, for the year ended December 31, 2021, $0.2 million and $0.7 million, respectively, for the year ended December 31, 2020, and $3.6 million and $5.9 million, respectively, for the year ended December 31, 2019. The following table summarizes information about the Company’s nonvested stock option activity for 2021: Shares Weighted Nonvested, beginning of year 3,899 $ 4.33 Granted — — Vested (3,899) 4.33 Forfeited — — Nonvested, end of year — — |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | E ARNINGS P ER S HARE Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the years ended December 31, 2021, 2020 and 2019 excluded antidilutive stock options of 65,033, 364,272 and 91,097, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective years. Presented below are the calculations for basic and diluted earnings per common share for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands, except share and per share data) 2021 2020 2019 Net income $ 81,317 $ 22,537 $ 55,784 Preferred dividends declared — — (191) Preferred stock, premium amortization — — 145 Net income available to common shareholders 81,317 22,537 55,738 Common shareholder dividends (24,912) (24,699) (23,389) Unvested restricted stock award dividends (260) (259) (210) Undistributed earnings to unvested restricted stock awards (564) — (267) Undistributed earnings to common shareholders $ 55,581 $ (2,421) $ 31,872 Basic Distributed earnings to common shareholders $ 24,912 $ 24,699 $ 23,389 Undistributed earnings to common shareholders 55,581 (2,421) 31,872 Total common shareholders earnings, basic $ 80,493 $ 22,278 $ 55,261 Diluted Distributed earnings to common shareholders $ 24,912 $ 24,699 $ 23,389 Undistributed earnings to common shareholders 55,581 (2,421) 31,872 Total common shareholders earnings 80,493 22,278 55,261 Add back: Undistributed earnings reallocated from unvested restricted stock awards 2 — 2 Total common shareholders earnings, diluted $ 80,495 $ 22,278 $ 55,263 Weighted average common shares outstanding, basic 22,481,389 23,336,881 24,288,793 Options 65,964 9,245 204,638 Weighted average common shares outstanding, diluted 22,547,353 23,346,126 24,493,431 Basic earnings per common share $ 3.58 $ 0.95 $ 2.28 Diluted earnings per common share 3.57 0.95 2.26 |
CAPITAL REQUIREMENTS
CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Capital Requirements [Abstract] | |
CAPITAL REQUIREMENTS | C APITAL R EQUIREMENTS The Company’s primary source of cash is dividends received from the Bank. The Bank is restricted by Illinois law and regulations of the Illinois Department of Financial and Professional Regulation and the FDIC as to the maximum amount of dividends the Bank can pay to us. As a practical matter, the Bank restricts dividends to a lesser amount because of the need to maintain an adequate capital structure. We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for “prompt corrective action”, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting policies. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Common Equity Tier 1 capital to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations). Beginning on January 1, 2016, a capital conservation buffer became effective for banking organizations. The capital conservation buffer, which consists of Common Equity Tier 1 capital, is not a minimum capital requirement; however, the capital conservation buffer is designed to establish a capital range above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. In order to not be subject to required restrictions on dividends, share repurchases and discretionary bonus payments, banking organizations must maintain minimum ratios of (i) Common Equity Tier 1 capital to risk-weighted assets of at least 4.5% plus the 2.5% capital conservation buffer, (ii) Tier 1 capital to risk-weighted assets of at least 6.0% plus the 2.5% capital conservation buffer, (iii) Total capital to risk-weighted assets of at least 8.0% plus the 2.5% capital conservation buffer, and (iv) Tier 1 capital to adjusted average consolidated assets of at least 4.0%. In December 2018, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC published an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period. At December 31, 2021, the Company and the Bank exceeded the regulatory minimums to which they were subject and exceeded the regulatory definition of well-capitalized. At December 31, 2021 and 2020, the Company’s and the Bank’s actual and required capital ratios were as follows: Actual Fully Phased-In Required to be (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Total risk-based capital ratio Midland States Bancorp, Inc. $ 732,177 12.19 % $ 630,482 10.50 % N/A N/A Midland States Bank 672,500 11.21 629,911 10.50 $ 599,915 10.00% Tier 1 risk-based capital ratio Midland States Bancorp, Inc. 550,195 9.16 510,390 8.50 N/A N/A Midland States Bank 629,389 10.49 509,928 8.50 479,932 8.00 Common equity tier 1 risk-based capital ratio Midland States Bancorp, Inc. 485,244 8.08 420,321 7.00 N/A N/A Midland States Bank 629,389 10.49 419,940 7.00 389,945 6.50 Tier 1 leverage ratio Midland States Bancorp, Inc. 550,195 7.75 283,941 4.00 N/A N/A Midland States Bank 629,389 8.89 283,324 4.00 354,156 5.00 December 31, 2020 Total risk-based capital ratio Midland States Bancorp, Inc. $ 710,417 13.24 % $ 563,610 10.50 % N/A N/A Midland States Bank 631,585 11.77 563,420 10.50 $ 536,591 10.00% Tier 1 risk-based capital ratio Midland States Bancorp, Inc. 494,043 9.20 456,256 8.50 N/A N/A Midland States Bank 578,681 10.78 456,102 8.50 429,273 8.00 Common equity tier 1 risk-based capital ratio Midland States Bancorp, Inc. 429,092 7.99 375,740 7.00 N/A N/A Midland States Bank 578,681 10.78 375,614 7.00 348,784 6.50 Tier 1 leverage ratio Midland States Bancorp, Inc. 494,043 7.50 263,651 4.00 N/A N/A Midland States Bank 578,681 8.78 263,537 4.00 329,421 5.00 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | F AIR V ALUE OF F INANCIAL I NSTRUMENTS Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: • Level 1: Unadjusted quoted prices for identical assets or liabilities traded in active markets. • Level 2: Significant other observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that 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. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment securities. The fair value of investment securities available for sale are determined by quoted market prices, if available (Level 1). For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. There were no transfers between Levels 1, 2 or 3 during the years ended December 31, 2021 or 2020 for assets measured at fair value on a recurring basis. The fair value of equity securities is determined using quoted prices or market prices for similar securities (Level 2). Loans held for sale. The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2). Derivative instruments. The fair value of derivative instruments are determined based on derivative valuation models using observable market data as of the measurement date (Level 2). Loan servicing rights. In accordance with GAAP , the Company records impairment charges on loan servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are estimated based on current market conditions (Level 3). Mortgage servicing rights held for sale. The fair value of mortgage servicing rights held for sale is determined by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors which are estimated based on current market conditions, less costs to sell (Level 3). Nonperforming loans. Nonperforming loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and restructured loans are considered nonperforming and are reviewed individually for the amount of impairment, if any. Most of our loans are collateral dependent and, accordingly, we measure nonperforming loans based on the estimated fair value of such collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral (Level 2). When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable (Level 3). The nonperforming loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, cash flows discounted at the effective loan rate, and management’s judgment. Assets held for sale. Assets held for sale represent the fair value of the banking facilities that are expected to be sold. The fair value of the assets held for sale was based on estimated market prices from independently prepared current appraisals (Level 2). Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and non-recurring basis at December 31, 2021 and 2020, are summarized below: 2021 (dollars in thousands) Total Quoted prices Significant Significant Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 64,917 $ 64,917 $ — $ — U.S. government sponsored entities and U.S. agency securities 33,817 — 33,817 — Mortgage-backed securities - agency 440,270 — 440,270 — Mortgage-backed securities - non-agency 28,706 — 28,706 — State and municipal securities 143,099 — 143,099 — Corporate securities 195,794 — 194,859 935 Equity securities 9,529 9,529 — — Loans held for sale 32,045 — 32,045 — Interest rate lock commitments 410 — 410 — Interest rate swap contracts 5,473 — 5,473 — Total $ 954,060 $ 74,446 $ 878,679 $ 935 Liabilities Forward commitments to sell mortgage-backed securities $ 19 $ — $ 19 $ — Interest rate swap contracts 378 — 378 — Total $ 397 $ — $ 397 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 28,865 $ — $ — $ 28,865 Nonperforming loans 36,542 24,358 6,129 6,055 Other real estate owned 12,059 — 12,059 — Assets held for sale 2,284 — 2,284 — 2020 (dollars in thousands) Total Quoted prices Significant Significant Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. government sponsored entities and U.S. agency securities $ 35,567 $ — $ 35,567 $ — Mortgage-backed securities - agency 344,577 — 344,577 — Mortgage-backed securities - non-agency 20,744 — 20,744 — State and municipal securities 129,765 — 129,765 — Corporate securities 146,058 — 145,099 959 Equity securities 9,424 9,424 — — Loans held for sale 138,090 — 138,090 — Interest rate lock commitments 2,217 — 2,217 — Interest rate swap contracts 1,206 — 1,206 — Total $ 827,648 $ 9,424 $ 817,265 $ 959 Liabilities Forward commitments to sell mortgage-backed securities $ 309 $ — $ 309 $ — Interest rate swap contracts 803 — 803 — Total $ 1,112 $ — $ 1,112 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 28,865 $ — $ — $ 39,276 Mortgage servicing rights held for sale 878 — — 878 Nonperforming loans 13,333 — 12,054 1,279 Other real estate owned 20,247 — 20,247 — Assets held for sale 4,157 — 4,157 — The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2021 and 2020: Corporate Securities (dollars in thousands) 2021 2020 Balance, beginning of period $ 959 $ 955 Total realized in earnings (1) 14 8 Total unrealized in other comprehensive income (2) (24) 4 Net settlements (principal and interest) (14) (8) Balance, end of period $ 935 $ 959 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. (2) Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period. The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2021 and 2020: (dollars in thousands) Fair value Valuation technique Unobservable Range (weighted average) (1) December 31, 2021 Corporate securities $ 935 Consensus pricing Net market price 0.0 % — 7.0% (4.5)% December 31, 2020 Corporate securities $ 959 Consensus pricing Net market price (2.0) % — 4.9% (2.0)% (1) Unobservable inputs were weighted by the relative fair value of the instruments. The significant unobservable inputs used in the fair value measurement of the Company's corporate securities is net market price. The corporate securities are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. Significant changes in any of the inputs in isolation would result in a significant change in the fair value measurement. Generally, net market price increases when market interest rates decline and declines when market interest rates increase. The following table presents (gains) losses recognized on assets measured on a non-recurring basis for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Loan servicing rights $ 7,532 $ 12,337 $ 2,139 Mortgage servicing rights held for sale 222 1,692 (490) Nonperforming loans 14,468 24,611 10,259 Other real estate owned 454 1,390 16 Assets held for sale — 10,404 3,577 Total loss on assets measured on a nonrecurring basis $ 22,676 $ 50,434 $ 15,501 The following table presents quantitative information about significant unobservable inputs used in the fair value measurements of Level 3 assets measured on a non-recurring basis at December 31, 2021 and 2020: (dollars in thousands) Fair Value Valuation Unobservable Range (weighted average) December 31, 2021 Loan servicing rights: Commercial MSR $ 28,368 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.24)% Discount rate 10.00% - 27.00% (11.87)% SBA servicing rights $ 898 Discounted cash flow Prepayment speed 12.27% - 14.14% (13.88)% Discount rate 10.00% - 12.00% (11.00)% Residential MSR $ 705 Discounted cash flow Prepayment speed 11.94% - 27.48% (14.94)% Discount rate 9.00% - 11.50% (10.25)% December 31, 2020 Loan servicing rights: Commercial MSR $ 38,322 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.18)% Discount rate 10.00% - 27.00% (11.48)% SBA servicing rights $ 954 Discounted cash flow Prepayment speed 12.01% — 12.52% (12.25)% Discount rate No range (11.00)% MSR held for sale $ 878 Discounted cash flow Prepayment speed 14.40% — 26.28% (20.34)% Discount rate 9.00% — 11.50% (10.13)% ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements. The Company has elected the fair value option for newly originated residential and commercial loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected at December 31, 2021 and 2020: 2021 2020 (dollars in thousands) Aggregate Difference Contractual Aggregate Difference Contractual Commercial loans held for sale $ 19,230 $ — $ 19,230 $ 126,123 $ 67 $ 126,056 Residential loans held for sale 12,815 584 12,231 11,967 743 11,224 Total loans held for sale $ 32,045 $ 584 $ 31,461 $ 138,090 $ 810 $ 137,280 The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Commercial loans held for sale $ (67) $ (139) $ (389) Residential loans held for sale (148) 318 7 Total loans held for sale $ (215) $ 179 $ (382) The carrying values and estimated fair value of financial instruments not carried at fair value at December 31, 2021 and 2020 were as follows: 2021 (dollars in thousands) Carrying Fair Value Quoted prices Significant Significant Assets Cash and due from banks $ 673,297 $ 673,297 $ 673,297 $ — $ — Federal funds sold 7,074 7,074 7,074 — — Loans, net 5,173,739 5,221,886 — — 5,221,886 Accrued interest receivable 19,470 19,470 — 19,470 — Liabilities Deposits $ 6,110,648 $ 6,109,077 $ — $ 6,109,077 $ — Short-term borrowings 76,803 76,803 — 76,803 — FHLB and other borrowings 310,171 317,464 — 317,464 — Subordinated debt 139,091 148,386 — 148,386 — Trust preferred debentures 49,374 57,827 — 57,827 — Accrued interest payable 2,848 2,848 — 2,848 — 2020 (dollars in thousands) Carrying Fair Value Quoted prices Significant Significant Assets Cash and due from banks $ 337,080 $ 337,080 $ 337,080 $ — $ — Federal funds sold 4,560 4,560 4,560 — — Loans, net 5,042,888 5,006,223 — — 5,006,223 Accrued interest receivable 23,545 23,545 — 23,545 — Liabilities Deposits $ 5,101,016 $ 5,108,360 $ — $ 5,108,360 $ — Short-term borrowings 68,957 68,957 — 68,957 — FHLB and other borrowings 779,171 807,493 — 807,493 — Subordinated debt 169,795 176,504 — 176,504 — Trust preferred debentures 48,814 50,165 — 50,165 — Accrued interest payable 4,441 4,441 — 4,441 — In accordance with our adoption of ASU 2016-1 in 2020, the methods utilized to measure the fair value of financial instruments at December 31, 2021 and 2020 represent an approximation of exit price; however, an actual exit price may differ. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | C OMMITMENTS , C ONTINGENCIES AND C REDIT R ISK results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, loan servicing rights, deferred tax assets, or counter-party risk derivatives. In the normal course of business, there are outstanding various contingent liabilities, such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims. We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments at December 31, 2021 and 2020 were as follows: (dollars in thousands) 2021 2020 Commitments to extend credit $ 994,709 $ 894,212 Financial guarantees – standby letters of credit 14,325 15,889 The Company establishes a mortgage repurchase liability to reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on the volume of loans sold in 2021 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. There were no losses as a result of make-whole requests and loan repurchases for the years ended December 31, 2021, 2020 and 2019. The liability for unresolved repurchase demands totaled $0.2 million at December 31, 2021 and 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | S EGMENT I NFORMATION Selected business segment financial information as of and for the years ended December 31, 2021, 2020 and 2019 were as follows: (dollars in thousands) Banking Wealth Other Total December 31, 2021 Net interest income (expense) $ 218,309 $ — $ (10,634) $ 207,675 Provision for credit losses on loans 3,393 — — 3,393 Noninterest income 42,249 26,876 774 69,899 Noninterest expense 158,803 17,372 (1,106) 175,069 Income (loss) before income taxes (benefit) 98,362 9,504 (8,754) 99,112 Income taxes (benefit) 17,218 2,679 (2,102) 17,795 Net income (loss) $ 81,144 $ 6,825 $ (6,652) $ 81,317 Total assets $ 7,460,114 $ 28,883 $ (45,192) $ 7,443,805 December 31, 2020 Net interest income (expense) $ 211,120 $ — $ (11,984) $ 199,136 Provision for credit losses on loans 44,361 — — 44,361 Noninterest income 38,706 22,802 (259) 61,249 Noninterest expense 170,025 14,938 (953) 184,010 Income (loss) before income taxes (benefit) 35,440 7,864 (11,290) 32,014 Income taxes (benefit) 10,020 2,194 (2,737) 9,477 Net income (loss) $ 25,420 $ 5,670 $ (8,553) $ 22,537 Total assets $ 6,983,254 $ 29,069 $ (143,783) $ 6,868,540 December 31, 2019 Net interest income (expense) $ 201,534 $ — $ (11,719) $ 189,815 Provision for credit losses on loans 16,985 — — 16,985 Noninterest income 53,683 21,832 (233) 75,282 Noninterest expense 160,364 14,850 427 175,641 Income (loss) before income taxes (benefit) 77,868 6,982 (12,379) 72,471 Income taxes (benefit) 18,195 1,850 (3,358) 16,687 Net income (loss) $ 59,673 $ 5,132 $ (9,021) $ 55,784 Total assets $ 6,085,441 $ 27,521 $ (25,945) $ 6,087,017 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | R EVENUE F ROM C ONTRACTS WITH C USTOMERS The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2021, 2020 and 2019. (dollars in thousands) 2021 2020 2019 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 20,954 $ 16,953 $ 16,114 Investment advisory fees 1,282 2,009 2,171 Investment brokerage fees 2,050 1,465 1,165 Other 2,525 2,375 2,382 Service charges on deposit accounts: Nonsufficient fund fees 5,339 5,589 7,721 Other 3,009 3,014 3,306 Interchange revenues 14,500 12,266 11,992 Other income: Merchant services revenue 1,511 1,381 1,506 Other 3,850 3,161 3,475 Noninterest income - out-of-scope of Topic 606 14,879 13,036 25,450 Total noninterest income $ 69,899 $ 61,249 $ 75,282 Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed in below. Wealth Management Revenue. Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time, and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity. Service Charges on Deposit Accounts. Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account. Interchange Revenue. Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed. Other Noninterest Income. The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, other noninterest related fees, and gain on sales of other real estate owned. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction. |
PARENT COMPANY ONLY FINANCIAL I
PARENT COMPANY ONLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIAL INFORMATION | P ARENT C OMPANY O NLY F INANCIAL I NFORMATION The following tables present condensed financial information for Midland States Bancorp, Inc. at December 31, 2021 and 2020, and for the years ended December 31, 2021, 2020 and 2019: Condensed Balance Sheets (dollars in thousands) December 31, 2021 2020 Assets: Cash $ 37,876 $ 58,904 Investment in common stock of subsidiaries 809,143 772,758 Other assets 8,094 11,317 Total assets $ 855,113 $ 842,979 Liabilities: Subordinated debt $ 139,091 $ 169,795 Trust preferred debentures 49,374 48,814 Other borrowings 171 171 Other liabilities 2,640 2,808 Total liabilities 191,276 221,588 Shareholders’ equity 663,837 621,391 Total liabilities and shareholders’ equity $ 855,113 $ 842,979 Condensed Statements of Income (dollars in thousands) Years ended December 31, 2021 2020 2019 Dividends from subsidiaries $ 45,350 $ 89,890 $ 43,900 Other income 932 — — Interest expense 10,668 12,054 11,798 Other expense 984 1,309 2,753 Income before income tax benefit and equity in undistributed income (loss) of subsidiaries 34,630 76,527 29,349 Income tax benefit 2,105 2,749 3,371 Income before equity in undistributed income (loss) of subsidiaries 36,735 79,276 32,720 Equity in undistributed income (loss) of subsidiaries 44,582 (56,739) 23,064 Net income $ 81,317 $ 22,537 $ 55,784 Condensed Statements of Cash Flows (dollars in thousands) Years ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 81,317 $ 22,537 $ 55,784 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (income) loss of subsidiaries (44,582) 56,739 (23,064) Share-based compensation expense 1,938 2,175 2,364 Change in other assets 3,223 (6,382) (2,604) Change in other liabilities 763 471 1,528 Net cash provided by operating activities 42,659 75,540 34,008 Cash flows from investing activities: Net cash paid in acquisition — — (1,021) Net cash received in dissolution of subsidiary 2,003 — — Net cash provided by (used in) investing activities 2,003 — (1,021) Cash flows from financing activities: Proceeds from issuance of subordinated debt, net of issuance costs — — 98,265 Payments made on subordinated debt (31,075) (7,443) (19,543) Subordinated debt prepayment fees — 193 1,778 Payments made on other borrowings — — (56,475) Common stock repurchased (11,692) (39,615) (4,019) Redemption of Series G preferred stock — (10) — Redemption of Series H preferred stock — — (2,636) Cash dividends paid on common stock (25,172) (24,958) (23,599) Cash dividends paid on preferred stock — — (191) Proceeds from issuance of common stock under employee benefit plans 2,249 2,524 5,794 Net cash used in by financing activities (65,690) (69,309) (626) Net (decrease) increase in cash (21,028) 6,231 32,361 Cash: Beginning of period 58,904 52,673 20,312 End of period $ 37,876 $ 58,904 $ 52,673 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | S UBSEQUENT E VENTS |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2020 and 2019 amounts have been made to conform to the 2021 presentation but do not have an effect on net income or shareholders’ equity. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying consolidated financial statements. |
Subsequent Events | Subsequent Events Management has evaluated subsequent events for recognition and disclosure through February 25, 2022, which is the date the financial statements were available to be issued. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations . Under the acquisition method of accounting, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired company in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income. |
Cash and Cash Equivalents and Cash Flows | Cash and Cash Equivalents and Cash Flows For the presentation in the accompanying consolidated statement of cash flows, cash and cash equivalents are defined as cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one-day periods, but not longer than 30 days. The following table summarizes supplemental cash flow information: Years Ended December 31, (dollars in thousands) 2021 2020 2019 Supplemental disclosures of cash flow information: Cash payments for: Interest paid on deposits and borrowed funds $ 31,735 $ 47,712 $ 58,158 Income tax paid, net of refunds 7,759 2,977 479 Supplemental disclosures of noncash investing and financing activities: Transfer of loans to loans held for sale 123,117 542,060 419,215 Transfer of loans to other real estate owned 805 16,736 3,819 Transfer of premises and equipment, net to assets held for sale 23 11,344 4,350 Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights 705 — — |
Investment Securities | Investment Securities The Company classifies its debt investment securities as available for sale or held to maturity at the time of purchase. Securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other debt securities are classified as available for sale. As of December 31, 2021, all investment securities were classified as available for sale. Investment securities available for sale are recorded at fair value with the unrealized gains and losses, net of the related tax effect, included in other comprehensive income. The related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. Available-for-sale debt securities in an unrealized loss position are evaluated, at least quarterly, for impairment related to credit losses. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, and the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recorded in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Purchase premiums are amortized over the estimated life or to the earliest call date and purchase discounts are accreted over the estimated life of the related investment security as an adjustment to yield using the effective interest method. Unamortized premiums, unaccreted discounts, and early payment premiums are recognized in interest income upon disposition of the related security. Interest and dividend income are recognized when earned. Realized gains and losses from the sale of investment securities available for sale are determined using the specific identification method and are included in noninterest income. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income. |
Equity Securities | Equity Securities Investments in stock of a publicly traded company or in mutual funds are classified as equity securities. Equity securities are recorded at fair value with unrealized gains and losses recognized in net income. |
Nonmarketable Equity Securities | Nonmarketable Equity Securities Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”). The Bank is a member of the FHLB system as well as its regional FRB. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and FRB stock are both carried at cost, classified as a restricted security, and |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as portfolio loans. Portfolio loans are carried at the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable on loans totaled $15.9 million and $19.9 million at December 31, 2021 and 2020, respectively, and was reported in accrued interest receivable on the consolidated balance sheets. Interest income on mortgage and commercial loans is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loans are charged-off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged off or at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cost-recovery or cash-basis method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Leases. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximately level rate of return on the unrecovered lease investment. Purchased Credit Deteriorated Loans. The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An allowance for credit losses on loans is determined using the same methodology as other loans held for investment. The initial allowance for credit losses on loans determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses on loans are recorded through provision expense for credit losses. Nonperforming Loans. A loan is considered nonperforming when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Nonperforming loans include loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and performing troubled debt restructured loans. Income from loans on nonaccrual status is recognized to the extent cash is received and when the principal balance is deemed collectible. Depending on a particular loan’s circumstances, we measure impairment based upon either the present value of expected future cash flows discounted at the effective interest rate, the observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the collateral. The impairment amount is charged-off to the allowance if deemed not collectible or is set up as a specific reserve. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans The Company adopted the current expected credit loss model under Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) on January 1, 2020 using the modified retrospective approach. Results for the periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts are reported in accordance with the incurred loss model under previously applicable U.S. GAAP. The transition adjustment included an increase in the allowance for credit losses on loans of $12.8 million and an increase in the allowance on unfunded commitments of $0.3 million. The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectibility over the loans' contractual terms, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Management estimates the allowance balance using relevant information, from internal and external sources, relating to historical credit loss experience, current conditions, and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current loan-specific risk characteristics, environmental conditions or other relevant factors. Allowance for credit losses on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit loss expense related to loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged-off. While management utilizes its best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. In calculating the allowance for credit losses, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles may include internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. For modeling purposes, our loan pools include (i) commercial, (ii) commercial real estate, (iii) construction and land development, (iv) residential real estate, (v) consumer, and (vi) lease financing. We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary. The table below identifies the Company’s loan portfolio segments and classes. Segment Class Commercial Commercial Commercial Other Commercial Real Estate Commercial Real Estate Non-Owner Occupied Commercial Real Estate Owner Occupied Multi-Family Farmland Construction and Land Development Construction and Land Development Residential Real Estate Residential First Lien Other Residential Consumer Consumer Consumer Other Lease Financing Lease Financing For each loan pool, we measure expected credit losses over the life of each loan utilizing a combination of models which measure (i) probability of default (“PD”), which is the likelihood that loan will stop performing or default, (ii) loss given default (“LGD”), which is the expected loss rate for loans in default, (iii) assumed prepayment speed, which is the likelihood that a loan will prepay or pay-off prior to maturity, and (iv) exposure at default (“EAD”), which is the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the measurement date. For certain commercial loan portfolios, the PD is calculated using a transition matrix to determine the likelihood of a customer’s risk grade migrating from one specified range of risk grades to a different specified range. Expected credit losses are calculated as the product of PD (adjusted for prepayment), LGD and EAD. This methodology builds on default probabilities already incorporated into our risk grading process by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for current macroeconomic assumptions, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time we measure expected credit losses, we assess the relevancy of historical loss information and consider any necessary adjustments to address any differences in asset-specific characteristics. The measurement of expected credit losses is impacted by loan and borrower attributes and certain macroeconomic variables. Significant loan and borrower attributes utilized in our modeling processes include, among other things, (i) origination date, (ii) maturity date, (iii) payment type, (iv) collateral type and amount, (v) current risk grade, (vi) current unpaid balance and commitment utilization rate, (vii) payment status and delinquency history and (viii) expected recoveries of previously charged-off amounts. Significant macroeconomic variables utilized in our modeling processes include, among other things, (i) US and Illinois Disposable Income and Gross Domestic Product, (ii) selected market interest rates including U.S. Treasury rates and government bond rates, (iii) Consumer Price Index, (iv) commercial and residential property prices in Illinois and the US as a whole, and (v) Illinois Housing Starts and Retail Sales for the State of Illinois and US. The probability of default and prepayment assumptions were estimated by analyzing internally-sourced data related to historical performance of each loan pool. They are adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a reasonable and supportable forecast period. We have determined that we are reasonably able to forecast the macroeconomic variables used in our modeling processes with an acceptable degree of confidence for a total of two years with the last twelve months of the forecast period encompassing a reversion process whereby the forecasted macroeconomic variables are reverted to their historical mean utilizing a straight line basis. The macroeconomic variables utilized as inputs in our modeling processes were subjected to a variety of analysis procedures and were selected primarily based on statistical relevancy and correlation to our historical credit losses. By reverting these modeling inputs to their historical mean and considering loan and borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the twelve-month reversion period. The LGD is based on historical recovery averages for each loan pool, adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a two-year forecast period, with the final twelve months of the forecast period encompassing a reversion process, which management considers to be both reasonable and supportable. The same forecast and reversion periods are used for all macroeconomic variables in our models. Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor (“Q-Factor”) adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) actual and expected changes in economic and business conditions and developments that affect the collectibility of the loan pools, (iii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iv) changes in the experience, ability, and depth of our lending management and staff, (v) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (vi) changes in the quality of our credit review function, (vii) changes in the value of the underlying collateral for loans that are non-collateral dependent, (viii) the existence, growth, and effect of any concentrations of credit and (ix) other factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. Specific reserves reflect expected credit losses on loans identified for evaluation or individually considered nonperforming. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of nonaccrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include, nonaccrual loans with a balance greater than $500,000, accruing loans 90 days past due or greater with a balance greater than $100,000, specialty lending relationships and other loans as determined by management. Allowance for credit losses for consumer and residential loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis. The provision for credit losses on loans individually evaluated is recognized on the basis of the present value of expected future cash flows discounted at the effective interest rate, the fair value of collateral adjusted for estimated costs to sell, or the observable market price as of the relevant date. Allowance for credit losses on loans adjustments for estimated costs to sell are not appropriate when the repayment of the collateral-dependent loan is expected from the operation of the collateral. |
Loans Held for Sale | Loans Held for Sale Loans held for sale consist of residential and commercial FHA mortgage loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. The changes in the fair value of loans held for sale are reflected in commercial FHA revenue and residential mortgage banking revenue on the consolidated statements of income. |
Mortgage Repurchase Reserve | Mortgage Repurchase Reserve The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to investors are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis. The Company’s agreements to sell residential mortgage loans usually require general representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently untrue or breached, could require the Company to indemnify or repurchase certain loans affected. The balance in the repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Company could incur from repurchasing a loan, as well as loss reimbursements, indemnification, and other “make whole” settlement resolutions. Refer to Note 22 in the consolidated financial statements for additional information on the mortgage repurchase reserve. |
Premises and Equipment | Premises and Equipment Premises, furniture and equipment, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term. Estimated useful lives of premises and equipment range from 10 to 40 years and from 3 to 10 years, respectively. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. We periodically review the carrying value of our long-lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount. |
Operating Lease Right of Use Assets and Liabilities | Operating Lease Right of Use Assets and Liabilities The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract. The operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term, and the operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings and is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to OREO is charged to the allowance for credit losses on loans. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income, and expense and decreases in valuations are included in other expense in the consolidated statements of income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill resulting from a business combination is generally determined as the excess of the fair value of consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Other intangible assets, which consist of core deposit and acquired customer relationship intangible assets, are typically amortized over a period ranging from 1 to 20 years using an accelerated method of amortization. On a periodic basis, we evaluate events and circumstances that may indicate a change in the recoverability of the carrying value. |
Loan Servicing Rights | Loan Servicing Rights When loans are sold with servicing retained, a servicing rights asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. As the Company has not elected to subsequently measure servicing assets under the fair value measurement method, the Company follows the amortization method. Loan servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. Loan servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value. Loan servicing rights do not trade in an active market with readily observable prices. The fair value of loan servicing rights and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of distinct portfolios of government-insured residential and commercial mortgages, conventional residential mortgages and Small Business Administration (“SBA”) loans. The Company periodically evaluates its loan servicing rights asset for impairment. Impairment is assessed based on the fair value of net servicing cash flows at each reporting date using estimated prepayment speeds of the underlying loans serviced and stratifications based on the risk characteristics of the underlying loans. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are determined based on current market conditions. To the extent the amortized cost of the mortgage servicing rights exceeds the estimated fair value by stratification, the Company records an impairment expense and reduces the carrying value of the loan servicing rights. We recognize revenue from servicing commercial FHA mortgages, residential mortgages and SBA loans as earned based on the specific contractual terms. This revenue, along with amortization of and changes in impairment on servicing rights, is reported in commercial FHA revenue, residential mortgage banking revenue and other noninterest income, respectively, in the consolidated statements of income. |
Cash Surrender Value of Life Insurance Policies | Cash Surrender Value of Life Insurance Policies We have purchased life insurance policies on the lives of certain officers and key employees and are the owner and beneficiary of the policies. These policies provide an efficient form of funding for long-term retirement and other employee benefits costs. These policies are recorded as cash surrender value of life insurance policies in the consolidated balance sheets at each policy’s respective cash surrender value, adjusted for other charges or other amounts due that are probable at settlement, with changes in value recorded in noninterest income in the consolidated statements of income. |
Derivative Financial Instruments | Derivative Financial Instruments All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. On the date the derivative contract is entered into, the derivative is designated as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability “cash flow” hedge. Changes in the fair value of a derivative that is highly effective as—and that is designated and qualifies as—a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Hedge accounting is prospectively discontinued when (a) it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is no longer designated as a hedge instrument because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were in accumulated other comprehensive income will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the consolidated balance sheet, with subsequent changes in its fair value recognized in current-period earnings. The Company also enters into interest rate lock commitments, which are agreements to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. Interest rate lock commitments for mortgage loans that will be held for sale are carried at fair value on the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue. The Company also has forward loan sales commitments related to its interest rate lock commitments and its loans held for sale. Forward loan sales commitments that meet the definition of a derivative are recorded at fair value in the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue. |
Allowance for Credit Losses on Unfunded Commitments | Allowance for Credit Losses on Unfunded Commitments In the ordinary course of business, the Company has entered into credit-related financial instruments consisting of commitments to extend credit, commercial letters of credit and standby letters of credit. The notional amount of these commitments is not reflected in the consolidated financial statements until they are funded. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is adjusted as a provision for credit loss expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. The allowance for credit losses on unfunded commitments totaled $1.9 million and $2.4 million at December 31, 2021 and 2020, respectively. |
Income Taxes | Income Taxes We file consolidated federal and state income tax returns, with each organization computing its taxes on a separate return basis. The provision for income taxes is based on income as reported in the consolidated financial statements. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. The deferred tax assets and liabilities are computed based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. |
Share-Based Compensation Plans | Share-Based Compensation Plans Compensation cost for share-based payment awards is based on the fair value of the award at the date of grant. The fair value of stock options is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of restricted stock is determined based on the Company’s current market price on the date of grant. Compensation cost is recognized in the consolidated financial statements on a straight-line basis over the requisite service period, which is generally defined as the vesting period. Additionally, the Company accounts for forfeitures as they occur. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as net income plus transactions and other occurrences that are the result of non-owner changes in equity. Non-owner equity changes include unrealized gains and losses on available for sale securities and changes in the fair value of cash flow hedges. These are components of comprehensive income and do not have an impact on the Company’s net income. |
Earnings per Share | Earnings per Share Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. |
Accounting Guidance Adopted in 2021 and Issued But Not Yet Adopted | Accounting Guidance Adopted in 2021 FASB ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes – In December 2019, the Financial Accounting Standard Board ("FASB") issued ASU No. 2019-12 which removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. The amendments in this update became effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2019-12 on January 1, 2021 did not have a material impact on the Company's consolidated financial statements. FASB ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323 and Topic 815 (a Consensus of the Emerging Issues Task Force) – In January 2020, the FASB issued ASU No. 2020-01 which clarifies the interactions ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The Company uses the equity method of accounting for investments in limited partnerships and has concluded this is the correct method of accounting for these investments. The amendments in this update became effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The amendments are to be applied prospectively and did not have a material impact on the consolidated financial statements. Accounting Guidance Issued But Not Yet Adopted FASB ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting – In March 2020, the FASB issued ASU No. 2020-04 which provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The Company has been monitoring its volume of commercial loans tied to LIBOR. In 2021, the Company began prioritizing SOFR as the preferred alternative reference rate with plans to cease booking LIBOR based commitments after the end of 2021. Loans with a maturity after June 2023 are being reviewed and monitored to ensure there is appropriate fallback language in place when LIBOR is no longer published. Loans with a maturity date before that time should naturally mature and be re-underwritten with the alternative index rate. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which addresses questions about whether Topic 848 can be applied to derivative instruments that do not reference a rate that is expected to be discontinued but that use an interest rate for margining, discounting, or contract price alignment that is expected to be modified as a result of reference rate reform, commonly referred to as the "discounting transition". The amendments clarify that certain optional expedients and exceptions in Topic 848 do apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are effective immediately. The Company believes the adoption of this guidance on activities subsequent to December 31, 2021 through December 31, 2022 will not have a material impact on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of supplemental cash flows | The following table summarizes supplemental cash flow information: Years Ended December 31, (dollars in thousands) 2021 2020 2019 Supplemental disclosures of cash flow information: Cash payments for: Interest paid on deposits and borrowed funds $ 31,735 $ 47,712 $ 58,158 Income tax paid, net of refunds 7,759 2,977 479 Supplemental disclosures of noncash investing and financing activities: Transfer of loans to loans held for sale 123,117 542,060 419,215 Transfer of loans to other real estate owned 805 16,736 3,819 Transfer of premises and equipment, net to assets held for sale 23 11,344 4,350 Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights 705 — — |
Summary of loans | The table below identifies the Company’s loan portfolio segments and classes. Segment Class Commercial Commercial Commercial Other Commercial Real Estate Commercial Real Estate Non-Owner Occupied Commercial Real Estate Owner Occupied Multi-Family Farmland Construction and Land Development Construction and Land Development Residential Real Estate Residential First Lien Other Residential Consumer Consumer Consumer Other Lease Financing Lease Financing The following table presents total loans outstanding by portfolio class, at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Commercial: Commercial $ 770,670 $ 937,382 Commercial other 679,518 748,193 Commercial real estate: Commercial real estate non-owner occupied 1,105,333 871,451 Commercial real estate owner occupied 469,658 423,257 Multi-family 171,875 151,534 Farmland 69,962 79,731 Construction and land development 193,749 172,737 Total commercial loans 3,460,765 3,384,285 Residential real estate: Residential first lien 274,412 358,329 Other residential 63,739 84,551 Consumer: Consumer 106,008 80,642 Consumer other 896,597 785,460 Lease financing 423,280 410,064 Total loans, gross $ 5,224,801 $ 5,103,331 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of allocation of consideration | A summary of the fair value of the assets acquired, liabilities assumed and resulting goodwill are included in the table below. (dollars in thousands) ATG Assets acquired: Intangible assets $ 1,847 Other assets 1,269 Total assets acquired 3,116 Liabilities assumed: Other liabilities 401 Net assets acquired and consideration paid $ 2,715 Intangible assets: Customer relationship intangible $ 1,847 Estimated useful life 6 years |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities classified as available for sale | Investment securities available for sale at December 31, 2021 and 2020 were as follows: 2021 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. Treasury securities $ 65,347 $ — $ 430 $ — $ 64,917 U.S. government sponsored entities and U.S. agency securities 34,569 79 831 — 33,817 Mortgage-backed securities - agency 444,484 2,687 6,901 — 440,270 Mortgage-backed securities - non-agency 29,037 50 381 — 28,706 State and municipal securities 137,904 5,561 366 — 143,099 Corporate securities 193,354 3,128 467 221 195,794 Total investment securities available for sale $ 904,695 $ 11,505 $ 9,376 $ 221 $ 906,603 2020 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 35,287 $ 377 $ 97 $ — $ 35,567 Mortgage-backed securities - agency 338,340 6,284 47 — 344,577 Mortgage-backed securities - non-agency 20,411 333 — — 20,744 State and municipal securities 122,488 7,311 5 29 129,765 Corporate securities 145,187 2,205 997 337 146,058 Total investment securities available for sale $ 661,713 $ 16,510 $ 1,146 $ 366 $ 676,711 |
Schedule of debt securities | The following is a summary of the amortized cost and fair value of investment securities available for sale, by maturity, at December 31, 2021. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity. (dollars in thousands) Amortized Fair Investment securities available for sale Within one year $ 9,877 $ 9,976 After one year through five years 137,694 139,456 After five years through ten years 244,626 248,197 After ten years 38,977 39,998 Mortgage-backed securities 473,521 468,976 Total investment securities available for sale $ 904,695 $ 906,603 Proceeds from the sale of investment securities available for sale and the resulting gross realized gains and losses for the years ended December 31, 2021, 2020 and 2019 are summarized below: (dollars in thousands) 2021 2020 2019 Investment securities available for sale Proceeds from sales $ 14,777 $ 28,256 $ 33,464 Gross realized gains on sales 537 1,721 786 Gross realized losses on sales — — (190) |
Schedule of major security type | The table below presents a rollforward by major security type for the year ended December 31, 2021 of the allowance for credit losses on investment securities available for sale held at period end: (dollars in thousands) State and municipal Corporate Total Changes in ACL on investment securities available for sale: For the year ended December 31, 2021 Balance, beginning of period $ 29 $ 337 $ 366 Current-period recapture of expected credit losses (29) (116) (145) Balance, end of period $ — $ 221 $ 221 For the year ended December 31, 2020 Balance, beginning of period $ — $ — $ — Current-period provision for expected credit losses 29 337 366 Balance, end of period $ 29 $ 337 $ 366 |
Schedule of unrealized losses and fair values for investment securities | Unrealized losses and fair values for investment securities available for sale at December 31, 2021 and 2020, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: 2021 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. Treasury securities $ 64,917 $ 430 $ — $ — $ 64,917 $ 430 U.S. government sponsored entities and U.S. agency securities 17,487 263 9,432 568 26,919 831 Mortgage-backed securities - agency 317,372 6,633 9,051 268 326,423 6,901 Mortgage-backed securities - non-agency 24,095 381 — — 24,095 381 State and municipal securities 27,324 270 2,538 96 29,862 366 Corporate securities — — — — — — Total investment securities available for sale $ 451,195 $ 7,977 $ 21,021 $ 932 $ 472,216 $ 8,909 2020 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 9,903 $ 97 $ — $ — $ 9,903 $ 97 Mortgage-backed securities - agency 26,172 47 — — 26,172 47 Corporate securities 20,010 522 — — 20,010 522 Total investment securities available for sale $ 56,085 $ 666 $ — $ — $ 56,085 $ 666 |
Schedule of proceeds from the sale of available-for-sale investment securities and equity securities, the resulting gross realized gains (losses) and net unrealized gains (losses) | Proceeds and gross realized gains and losses on sales of equity securities as well as net unrealized gains and losses on equity securities for the years ended December 31, 2021, 2020 and 2019 are summarized below: (dollars in thousands) 2021 2020 2019 Equity securities Proceeds from sales $ — $ — $ 105 Gross realized gains on sales — — 78 Gross realized losses on sales — — — Net unrealized gains (losses) 361 577 93 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Summary of loans | The table below identifies the Company’s loan portfolio segments and classes. Segment Class Commercial Commercial Commercial Other Commercial Real Estate Commercial Real Estate Non-Owner Occupied Commercial Real Estate Owner Occupied Multi-Family Farmland Construction and Land Development Construction and Land Development Residential Real Estate Residential First Lien Other Residential Consumer Consumer Consumer Other Lease Financing Lease Financing The following table presents total loans outstanding by portfolio class, at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Commercial: Commercial $ 770,670 $ 937,382 Commercial other 679,518 748,193 Commercial real estate: Commercial real estate non-owner occupied 1,105,333 871,451 Commercial real estate owner occupied 469,658 423,257 Multi-family 171,875 151,534 Farmland 69,962 79,731 Construction and land development 193,749 172,737 Total commercial loans 3,460,765 3,384,285 Residential real estate: Residential first lien 274,412 358,329 Other residential 63,739 84,551 Consumer: Consumer 106,008 80,642 Consumer other 896,597 785,460 Lease financing 423,280 410,064 Total loans, gross $ 5,224,801 $ 5,103,331 |
Schedule of Changes in Related Parties Receivables | The new loans, other additions, repayments and other reductions for the years ended December 31, 2021 and 2020, are summarized as follows: (dollars in thousands) 2021 2020 Beginning balance $ 19,693 $ 22,989 New loans and other additions 4,745 2,563 Repayments and other reductions (10,569) (5,859) Ending balance $ 13,869 $ 19,693 |
Summary of changes in allowance for loan losses, by loan portfolio | The following table presents, by loan portfolio, a summary of changes in the allowance for credit losses on loans for the years ended December 31, 2021, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Changes in allowance for credit losses on loans in 2021: Balance, beginning of period $ 19,851 $ 25,465 $ 1,433 $ 3,929 $ 2,338 $ 7,427 $ 60,443 Provision for credit losses on loans 648 1,031 (234) (1,085) 864 2,726 3,950 Charge-offs (6,465) (3,524) (448) (398) (1,158) (3,427) (15,420) Recoveries 341 21 221 249 514 743 2,089 Balance, end of period $ 14,375 $ 22,993 $ 972 $ 2,695 $ 2,558 $ 7,469 $ 51,062 Changes in allowance for credit losses on loans in 2020: Balance, beginning of period $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 Impact of adopting ASC 326 2,327 4,104 724 1,211 (594) 774 8,546 Impact of adopting ASC 326 - PCD loans 1,045 1,311 809 1,015 57 — 4,237 Provision for credit losses on loans 11,890 23,091 (121) (458) 1,212 7,535 43,149 Charge-offs (5,589) (13,637) (376) (522) (1,624) (3,706) (25,454) Recoveries 147 324 107 184 645 530 1,937 Balance, end of period $ 19,851 $ 25,465 $ 1,433 $ 3,929 $ 2,338 $ 7,427 $ 60,443 Changes in allowance for credit losses on loans in 2019: Balance, beginning of period $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Provision for credit losses on loans 3,852 7,939 (53) 1,392 1,767 2,088 16,985 Charge-offs (3,412) (3,339) (44) (1,076) (1,946) (2,251) (12,068) Recoveries 67 949 15 142 667 368 2,208 Balance, end of period $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 |
Schedule of transitioning risk states for each asset pool within the expected credit loss model | The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix: Risk state Commercial loans Consumer loans and 1 0-5 0-14 2 6 15-29 3 7 30-59 4 8 60-89 Default 9+ and nonaccrual 90+ and nonaccrual |
Schedule of Amortized Cost Basis of Individually Evaluated Loans on Nonaccrual Status | The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2021 and 2020: 2021 2020 Nonaccrual Nonaccrual Nonaccrual Nonaccrual with with no Total with with no Total (dollars in thousands) Allowance Allowance Nonaccrual Allowance Allowance Nonaccrual Commercial: Commercial $ 4,681 $ 2,275 $ 6,956 $ 3,498 $ — $ 3,498 Commercial Other 4,467 — 4,467 2,634 — 2,634 Commercial real estate: Commercial real estate non-owner occupied 1,914 9,912 11,826 5,509 3,823 9,332 Commercial real estate owner occupied 2,164 1,340 3,504 3,598 3,227 6,825 Multi-family 201 1,967 2,168 7,921 2,325 10,246 Farmland 155 — 155 — — — Construction and land development 83 — 83 2,131 693 2,824 Total commercial loans 13,665 15,494 29,159 25,291 10,068 35,359 Residential real estate: Residential first lien 3,116 832 3,948 8,534 1,071 9,605 Other residential 836 — 836 2,437 — 2,437 Consumer: Consumer 110 — 110 262 — 262 Lease financing 1,510 — 1,510 1,965 — 1,965 Total loans $ 19,237 $ 16,326 $ 35,563 $ 38,489 $ 11,139 $ 49,628 |
Schedule of collateral dependent loans | The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2021 and 2020: Type of Collateral (dollars in thousands) Real Estate Blanket Lien Equipment Total December 31, 2021 Commercial: Commercial $ — $ 5,402 $ — $ 5,402 Commercial other — — 502 502 Commercial real estate: Commercial real estate non-owner occupied 11,604 — — 11,604 Commercial real estate owner occupied 1,336 — — 1,336 Multi-Family 1,969 — — 1,969 Total Collateral Dependent Loans $ 14,909 $ 5,402 $ 502 $ 20,813 December 31, 2020 Commercial real estate: Commercial real estate non-owner occupied 8,159 — — 8,159 Multi-Family 10,121 — — 10,121 Construction and land development 693 — — 693 Total Collateral Dependent Loans $ 18,973 $ — $ — $ 18,973 |
Summary of aging status of recorded investments in loans by portfolio (excluding PCI loans) | The aging status of the recorded investment in loans by portfolio as of December 31, 2021 was as follows: Accruing Loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual loans Current loans Total loans Commercial: Commercial $ 283 $ 1,082 $ — $ 1,365 $ 6,956 $ 762,349 $ 770,670 Commercial other 2,402 2,110 5 4,517 4,467 670,534 679,518 Commercial real estate: Commercial real estate non-owner occupied 585 243 — 828 11,826 1,092,679 1,105,333 Commercial real estate owner occupied 232 730 — 962 3,504 465,192 469,658 Multi-family — — — — 2,168 169,707 171,875 Farmland — 26 — 26 155 69,781 69,962 Construction and land development 195 195 — 390 83 193,276 193,749 Total commercial loans 3,697 4,386 5 8,088 29,159 3,423,518 3,460,765 Residential real estate: Residential first lien 113 285 — 398 3,948 270,066 274,412 Other residential 456 151 — 607 836 62,296 63,739 Consumer: Consumer 127 20 — 147 110 105,751 106,008 Consumer other 4,423 2,358 1 6,782 — 889,815 896,597 Lease financing 1,253 245 — 1,498 1,510 420,272 423,280 Total loans $ 10,069 $ 7,445 $ 6 $ 17,520 $ 35,563 $ 5,171,718 $ 5,224,801 The aging status of the recorded investment in loans by portfolio as of December 31, 2020 was as follows: Accruing Loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual Current Total Commercial: Commercial $ 389 $ 27 $ — $ 416 $ 3,498 $ 933,468 $ 937,382 Commercial other 4,007 3,901 896 8,804 2,634 736,755 748,193 Commercial real estate: Commercial real estate non-owner occupied 6,684 — — 6,684 9,332 855,435 871,451 Commercial real estate owner occupied 2,145 — — 2,145 6,825 414,287 423,257 Multi-family 61 — — 61 10,246 141,227 151,534 Farmland — — — — — 79,731 79,731 Construction and land development 863 — — 863 2,824 169,050 172,737 Total commercial loans 14,149 3,928 896 18,973 35,359 3,329,953 3,384,285 Residential real estate: Residential first lien 127 207 — 334 9,605 348,390 358,329 Other residential 240 135 — 375 2,437 81,739 84,551 Consumer: Consumer 325 57 — 382 262 79,998 80,642 Consumer other 4,334 2,874 — 7,208 — 778,252 785,460 Lease financing 4,539 545 645 5,729 1,965 402,370 410,064 Total loans $ 23,714 $ 7,746 $ 1,541 $ 33,001 $ 49,628 $ 5,020,702 $ 5,103,331 |
Summary of TDRs loans | The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of December 31, 2021 and 2020: 2021 2020 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 833 $ 1,422 $ 2,255 $ 967 $ 558 $ 1,525 Commercial real estate 1,522 3,302 4,824 866 4,314 5,180 Construction and land development 37 — 37 39 909 948 Residential real estate 3,128 784 3,912 988 3,705 4,693 Consumer 98 — 98 41 — 41 Lease financing 1,394 241 1,635 — 38 38 Total loans $ 7,012 $ 5,749 $ 12,761 $ 2,901 $ 9,524 $ 12,425 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The following table presents a summary of loans by portfolio that were restructured during the years ended December 31, 2021, 2020 and 2019. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the years ended December 31, 2021, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total For the year ended December 31, 2021: Troubled debt restructurings: Number of loans 16 3 1 10 6 9 45 Pre-modification outstanding balance $ 2,294 $ 1,639 $ 49 $ 551 $ 134 $ 1,635 $ 6,302 Post-modification outstanding balance 2,178 1,539 — 513 89 1,635 5,954 For the year ended December 31, 2020: Troubled debt restructurings: Number of loans 4 4 3 22 4 — 37 Pre-modification outstanding balance $ 989 $ 797 $ 1,010 $ 2,334 $ 34 $ — $ 5,164 Post-modification outstanding balance 967 383 900 2,172 33 — 4,455 For the year ended December 31, 2019: Troubled debt restructurings: Number of loans 1 3 2 25 5 1 37 Pre-modification outstanding balance $ 249 $ 1,924 $ 221 $ 1,422 $ 26 $ 55 $ 3,897 Post-modification outstanding balance 249 1,322 167 1,322 25 55 3,140 |
Summary of recorded investment (excluding PCI loans) by risk category | The following tables present the recorded investment of the commercial loan portfolio by risk category as of December 31, 2021 and 2020: December 31, 2021 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 108,490 $ 78,071 $ 50,458 $ 20,045 $ 27,405 $ 35,856 $ 417,920 $ 738,245 Special mention 186 57 198 6,154 2 316 1,517 8,430 Substandard 380 372 1,934 1,868 64 4,322 8,099 17,039 Substandard – nonaccrual 52 — 612 177 242 169 5,704 6,956 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 109,108 78,500 53,202 28,244 27,713 40,663 433,240 770,670 Commercial other Acceptable credit quality 264,282 167,326 101,083 29,981 303 341 88,198 651,514 Special mention — 1,929 10,676 3,966 — — 3,252 19,823 Substandard 688 — 62 341 — — 2,623 3,714 Substandard – nonaccrual 10 158 3,894 384 — — 21 4,467 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 264,980 169,413 115,715 34,672 303 341 94,094 679,518 Commercial real estate Non-owner occupied Acceptable credit quality 441,483 154,379 134,507 20,524 55,207 182,465 5,258 993,823 Special mention 26 6,341 14,177 2,296 711 2,272 — 25,823 Substandard 6,196 817 8,825 20,572 14,857 22,344 250 73,861 Substandard – nonaccrual 169 992 6,206 — 195 4,264 — 11,826 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 447,874 162,529 163,715 43,392 70,970 211,345 5,508 1,105,333 Owner occupied Acceptable credit quality 141,084 69,415 47,187 35,974 30,583 98,442 1,886 424,571 Special mention 150 24 187 161 13,087 4,540 32 18,181 Substandard 4,192 1,127 10,810 205 297 6,466 305 23,402 Substandard – nonaccrual — 318 129 336 72 2,649 — 3,504 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 145,426 70,884 58,313 36,676 44,039 112,097 2,223 469,658 Multi-family Acceptable credit quality 88,329 20,080 1,973 25,450 1,414 18,642 2,241 158,129 Special mention — 451 — — — — — 451 Substandard 988 — — — — 10,139 — 11,127 Substandard – nonaccrual — — 123 — — 2,045 — 2,168 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 89,317 20,531 2,096 25,450 1,414 30,826 2,241 171,875 Farmland Acceptable credit quality 15,689 14,966 3,931 3,162 7,996 19,305 1,196 66,245 Special mention — 66 1,236 145 153 240 — 1,840 Substandard 371 76 166 211 — 898 — 1,722 Substandard – nonaccrual — — — 105 — — 50 155 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 16,060 15,108 5,333 3,623 8,149 20,443 1,246 69,962 Construction and land development Acceptable credit quality 65,053 65,274 19,269 10,029 2,511 3,841 19,452 185,429 Special mention — — 5,014 — — 221 — 5,235 Substandard — 1,336 — — — — — 1,336 Substandard – nonaccrual — — 43 — — 40 — 83 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Subtotal 66,518 66,647 24,326 10,029 2,511 4,266 19,452 193,749 Total Acceptable credit quality 1,124,410 569,511 358,408 145,165 125,419 358,892 536,151 3,217,956 Special mention 362 8,868 31,488 12,722 13,953 7,589 4,801 79,783 Substandard 12,815 3,728 21,797 23,197 15,218 44,169 11,277 132,201 Substandard – nonaccrual 231 1,468 11,007 1,002 509 9,167 5,775 29,159 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Total Commercial loans $ 1,139,283 $ 583,612 $ 422,700 $ 182,086 $ 155,099 $ 419,981 $ 558,004 $ 3,460,765 December 31, 2020 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 117,792 $ 107,915 $ 35,649 $ 34,753 $ 22,025 $ 51,593 $ 517,929 $ 887,656 Special mention 244 201 4,897 3,729 4,968 881 7,721 22,641 Substandard 544 1,953 1,259 104 248 4,861 14,618 23,587 Substandard – nonaccrual 2 31 640 936 154 458 1,277 3,498 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 118,582 110,100 42,445 39,522 27,395 57,793 541,545 937,382 Commercial other Acceptable credit quality 416,306 157,232 52,843 739 303 677 88,250 716,350 Special mention 1,871 10,691 3,810 31 79 — 5,315 21,797 Substandard 255 260 1,078 3 12 — 5,351 6,959 Substandard – nonaccrual — 1,984 641 — 4 — 5 2,634 Doubtful — — — — — — — — Not graded 453 — — — — — — 453 Subtotal 418,885 170,167 58,372 773 398 677 98,921 748,193 Commercial real estate Non-owner occupied Acceptable credit quality 168,788 109,602 63,435 91,763 97,293 156,958 5,248 693,087 Special mention 3,011 9,107 3,231 483 14,294 17,816 4,279 52,221 Substandard 7,469 16,306 13,813 23,169 16,897 38,907 250 116,811 Substandard – nonaccrual 125 325 101 — 3,438 5,343 — 9,332 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 179,393 135,340 80,580 115,415 131,922 219,024 9,777 871,451 Owner occupied Acceptable credit quality 68,688 55,502 38,471 55,526 63,105 91,986 4,066 377,344 Special mention 1,882 3,578 225 4,142 1,038 7,289 — 18,154 Substandard 4,078 468 1,023 760 5,861 8,430 314 20,934 Substandard – nonaccrual 373 200 170 241 — 5,441 400 6,825 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 75,021 59,748 39,889 60,669 70,004 113,146 4,780 423,257 Multi-family Acceptable credit quality 12,865 6,921 19,204 32,934 10,674 24,375 1,281 108,254 Special mention 465 — 8,442 — — 1,323 — 10,230 Substandard — 10,945 1,518 — 10,266 75 — 22,804 Substandard – nonaccrual — — — — 7,804 2,442 — 10,246 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 13,330 17,866 29,164 32,934 28,744 28,215 1,281 151,534 Farmland Acceptable credit quality 18,556 6,846 3,873 8,803 6,013 23,921 1,814 69,826 Special mention 274 1,387 180 38 298 784 — 2,961 Substandard 2,241 307 802 127 877 2,435 155 6,944 Substandard – nonaccrual — — — — — — — — Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 21,071 8,540 4,855 8,968 7,188 27,140 1,969 79,731 Construction and land development Acceptable credit quality 36,488 83,440 11,625 3,554 2,506 4,263 15,941 157,817 Special mention — — 454 — — — — 454 Substandard 1,386 8,875 — — — 914 — 11,175 Substandard – nonaccrual — 242 — — 152 2,430 — 2,824 Doubtful — — — — — — — — Not graded 467 — — — — — — 467 Subtotal 38,341 92,557 12,079 3,554 2,658 7,607 15,941 172,737 Total Acceptable credit quality 839,483 527,458 225,100 228,072 201,919 353,773 634,529 3,010,334 Special mention 7,747 24,964 21,239 8,423 20,677 28,093 17,315 128,458 Substandard 15,973 39,114 19,493 24,163 34,161 55,622 20,688 209,214 Substandard – nonaccrual 500 2,782 1,552 1,177 11,552 16,114 1,682 35,359 Doubtful — — — — — — — — Not graded 920 — — — — — — 920 Total Commercial loans $ 864,623 $ 594,318 $ 267,384 $ 261,835 $ 268,309 $ 453,602 $ 674,214 $ 3,384,285 The Company evaluates the credit quality of its other loan portfolio, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming at December 31, 2021 and 2020: December 31, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Total Residential real estate Residential first lien Performing $ 38,508 $ 31,920 $ 24,311 $ 30,842 $ 48,276 $ 93,462 $ 888 $ 268,207 Nonperforming — 108 173 780 764 4,380 — 6,205 Subtotal 38,508 32,028 24,484 31,622 49,040 97,842 888 274,412 Other residential Performing 888 679 1,520 1,950 1,211 1,559 54,225 62,032 Nonperforming — — 10 16 128 100 1,453 1,707 Subtotal 888 679 1,530 1,966 1,339 1,659 55,678 63,739 Consumer Consumer Performing 65,915 14,955 7,874 8,728 3,025 2,582 2,721 105,800 Nonperforming 89 5 3 14 24 71 2 208 Subtotal 66,004 14,960 7,877 8,742 3,049 2,653 2,723 106,008 Consumer other Performing 474,385 323,437 63,463 12,635 3,888 5,447 13,341 896,596 Nonperforming — — — — — — 1 1 Subtotal 474,385 323,437 63,463 12,635 3,888 5,447 13,342 896,597 Leases financing Performing 154,803 124,575 86,402 43,536 9,077 1,983 — 420,376 Nonperforming — 757 1,001 1,012 95 39 — 2,904 Subtotal 154,803 125,332 87,403 44,548 9,172 2,022 — 423,280 Total Performing 734,499 495,566 183,570 97,691 65,477 105,033 71,175 1,753,011 Nonperforming 89 870 1,187 1,822 1,011 4,590 1,456 11,025 Total other loans $ 734,588 $ 496,436 $ 184,757 $ 99,513 $ 66,488 $ 109,623 $ 72,631 $ 1,764,036 December 31, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving loans Total Residential real estate Residential first lien Performing $ 32,322 $ 27,071 $ 49,039 $ 99,658 $ 81,525 $ 58,107 $ 405 $ 348,127 Nonperforming — 196 1,074 933 1,030 6,969 — 10,202 Subtotal 32,322 27,267 50,113 100,591 82,555 65,076 405 358,329 Other residential Performing 975 2,430 3,281 2,091 1,348 1,825 69,773 81,723 Nonperforming — 13 21 146 7 165 2,476 2,828 Subtotal 975 2,443 3,302 2,237 1,355 1,990 72,249 84,551 Consumer Consumer Performing 28,449 14,084 16,692 8,737 5,067 3,834 3,476 80,339 Nonperforming 31 6 57 81 64 63 1 303 Subtotal 28,480 14,090 16,749 8,818 5,131 3,897 3,477 80,642 Consumer other Performing 614,764 117,054 21,394 6,514 6,096 2,480 17,158 785,460 Nonperforming — — — — — — — — Subtotal 614,764 117,054 21,394 6,514 6,096 2,480 17,158 785,460 Leases financing Performing 177,068 125,611 70,059 21,047 12,410 1,259 — 407,454 Nonperforming 468 192 1,080 600 207 63 — 2,610 Subtotal 177,536 125,803 71,139 21,647 12,617 1,322 — 410,064 Total Performing 853,578 286,250 160,465 138,047 106,446 67,505 90,812 1,703,103 Nonperforming 499 407 2,232 1,760 1,308 7,260 2,477 15,943 Total other loans $ 854,077 $ 286,657 $ 162,697 $ 139,807 $ 107,754 $ 74,765 $ 93,289 $ 1,719,046 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of premises and equipment | A summary of premises and equipment at December 31, 2021 and 2020 is as follows: (dollars in thousands) 2021 2020 Land $ 15,696 $ 16,158 Buildings and improvements 67,143 65,932 Furniture and equipment 33,545 33,202 Total 116,384 115,292 Accumulated depreciation (45,592) (41,168) Premises and equipment, net $ 70,792 $ 74,124 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of information related to operating leases | Information related to operating leases for the years ended December 31, 2021 and 2020 was as follows: (dollars in thousands) 2021 2020 Operating lease cost $ 2,080 $ 2,943 Operating cash flows related to leases 2,566 3,280 Right-of-use assets obtained in exchange for lease obligations 1,118 1,616 Right-of-use assets derecognized due to terminations or impairment (210) (4,467) Weighted average remaining lease term 7.58 years 8.10 years Weighted average discount rate 2.85 % 2.90 % |
Summary of projected minimum rental payments | The projected minimum rental payments under the terms of the leases as of December 31, 2021 are as follows: (dollars in thousands) Amount Year ending December 31, 2022 $ 2,180 2023 2,094 2024 1,799 2025 894 2026 763 Thereafter 4,251 Total future minimum lease payments 11,981 Less imputed interest (1,267) Total operating lease liabilities $ 10,714 |
LOAN SERVICING RIGHTS (Tables)
LOAN SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of other mortgage notes serviced and changes in our mortgage servicing rights | A summary of loan servicing rights at December 31, 2021 and 2020 is as follows: 2021 2020 (dollars in thousands) Serviced Loans Carrying Value Serviced Loans Carrying Value Commercial FHA $ 2,650,531 $ 27,386 $ 3,499,258 $ 38,322 SBA 50,043 $ 774 49,223 $ 954 Residential (1) 302,618 $ 705 382,302 $ 878 Total $ 3,003,192 $ 28,865 $ 3,930,783 $ 40,154 (1) At December 31, 2020, residential mortgage servicing rights were classified as held for sale and carried at fair value less estimated costs to sell. These were reclassified to loan servicing rights effective December 31, 2021. Changes in our commercial FHA loan servicing rights for the years ended December 31, 2021, 2020 and 2019 are summarized as follows: (dollars in thousands) 2021 2020 2019 Loan servicing rights: Balance, beginning of period $ 38,322 $ 57,637 $ 56,252 Originated servicing — 1,128 4,124 Amortization (2,965) (3,162) (2,739) Refinancing fee received from third party (439) — — Permanent impairment (7,532) (17,281) — Balance, end of period 27,386 38,322 57,637 Valuation allowances: Balance, beginning of period — 4,944 2,805 Additions — 12,337 2,698 Reductions — (17,281) (559) Balance, end of period — — 4,944 Loan servicing rights, net $ 27,386 $ 38,322 $ 52,693 Fair value: At beginning of period $ 38,322 $ 52,693 $ 53,447 At end of period $ 28,368 $ 38,322 $ 52,693 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The carrying amount of goodwill by segment at December 31, 2021 and 2020 is summarized as follows: (dollars in thousands) 2021 2020 Banking $ 157,158 $ 157,158 Wealth management 4,746 4,746 Total goodwill $ 161,904 $ 161,904 The Company’s intangible assets consist of core deposit and customer relationship intangibles. Intangible assets are assessed for impairment at least annually or more frequently if events and circumstances exists that indicate that an intangible impairment test should be performed. The Company has not identified any events or changes in circumstances that would indicate a change in the recoverability of the carrying value of intangible assets and, therefore, no impairment was recognized during 2021, 2020 or 2019. The Company's intangible assets as of December 31, 2021 and 2020 are summarized as follows: 2021 2020 (dollars in thousands) Gross Accumulated Total Gross Accumulated Total Core deposit intangibles $ 57,012 $ (40,603) $ 16,409 $ 57,012 $ (36,005) $ 21,007 Customer relationship intangibles 15,918 (7,953) 7,965 14,071 (6,696) 7,375 Total intangible assets $ 72,930 $ (48,556) $ 24,374 $ 71,083 $ (42,701) $ 28,382 |
Schedule of estimated future amortization expense of intangible assets | Estimated amortization expense for future years is as follows: (dollars in thousands) Amount Year ending December 31, 2022 $ 5,208 2023 4,433 2024 3,717 2025 2,966 2026 2,450 Thereafter 5,600 Total $ 24,374 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments, fair value and notional amounts | The following tables summarize the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at December 31, 2021 and 2020: Notional Amount Fair Value Gain (dollars in thousands) 2021 2020 2021 2020 Derivative Instruments (included in other assets): Interest rate lock commitments $ 66,216 $ 136,227 $ 410 $ 2,217 Forward commitments to sell mortgage-backed securities 60,427 218,126 — — Total $ 126,643 $ 354,353 $ 410 $ 2,217 Notional Amounts Fair Value Loss (dollars in thousands) 2021 2020 2021 2020 Derivative Instruments (included in other liabilities): Forward commitments to sell mortgage-backed securities $ 18,362 $ 33,240 $ 19 $ 309 (dollars in thousands) 2020 Notional Amount $ 100,000 Average remaining life in years 5.3 Weighted average pay rate 0.57 % Weighted average receive rate 0.22 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Schedule summarizes the classification of deposits | The following table summarizes the classification of deposits at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Noninterest-bearing demand $ 2,245,701 $ 1,469,579 Interest-bearing: Checking 1,663,021 1,568,888 Money market 869,067 785,871 Savings 679,115 597,966 Time 653,744 678,712 Total deposits $ 6,110,648 $ 5,101,016 |
Schedule of maturities of time deposits | As of December 31, 2021, the scheduled maturities of time deposits were as follows: (dollars in thousands) Amount Year Ending December 31, 2022 $ 377,823 2023 134,092 2024 82,430 2025 19,778 2026 39,597 Thereafter 24 Total $ 653,744 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of short term borrowings | The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended December 31, 2021 and 2020: Repurchase Agreements (dollars in thousands) 2021 2020 Outstanding at period-end $ 76,803 $ 68,957 Average amount outstanding 68,986 60,306 Maximum amount outstanding at any month end 77,497 77,136 Weighted average interest rate: During period 0.12 % 0.30 % End of period 0.13 % 0.12 % |
FHLB ADVANCES AND OTHER BORRO_2
FHLB ADVANCES AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
Schedule of federal home loan bank (FHLB) advances | The following table summarizes our FHLB advances and other borrowings at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Midland States Bancorp, Inc. Series G redeemable preferred stock – 171 and 171 shares at December 31, 2021 and 2020, respectively at $1,000 per share $ 171 $ 171 Midland States Bank FHLB advances – fixed rate, fixed term at rates averaging 0.24% at December 31, 2020 — 304,000 FHLB advances – putable fixed rate at rates averaging 1.48% and 2.01% at December 31, 2021 and 2020, respectively – maturing through February 2030 with call provisions through February 2022 210,000 475,000 FHLB advances - SOFR floater at rates averaging 1.67% at December 31, 2021 - maturing in October 2023 100,000 — Total FHLB advances and other borrowings $ 310,171 $ 779,171 |
Schedule of payments over the next five years | Contractual payments over the next five years for FHLB advances and other borrowings were as follows: (dollars in thousands) Amount Year Ending December 31, 2022 $ — 2023 140,000 2024 70,000 2025 — 2026 — Thereafter 100,171 Total $ 310,171 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Schedule of summary of company's subordinated debt | The following table summarizes the Company’s subordinated debt at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Subordinated debt issued June 2015 – variable interest rate equivalent to three month LIBOR plus 4.35%, which was 4.59% at December 31, 2020 $ — $ 31,075 Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 – maturing June 18, 2025 546 545 Subordinated debt issued October 2017 - fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 – maturing October 15, 2027 39,626 39,561 Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 – maturing September 30, 2029 72,042 71,785 Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 – maturing September 30, 2034 26,877 26,829 Total subordinated debt $ 139,091 $ 169,795 |
TRUST PREFERRED DEBENTURES (Tab
TRUST PREFERRED DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TRUST PREFERRED DEBENTURES | |
Summary of trust preferred debentures | The following table summarizes the Company’s trust preferred debentures at December 31, 2021 and 2020: (dollars in thousands) 2021 2020 Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 2.87% and 2.96% at December 31, 2021 and 2020, respectively – $10,310 maturing April 23, 2034 $ 10,279 $ 10,276 Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 2.98% and 3.06%, at December 31, 2021 and 2020, respectively – $3,093 maturing January 23, 2034 2,363 2,314 Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 1.95% and 1.97% at December 31, 2021 and 2020, respectively – $20,619 maturing December 31, 2036 14,647 14,442 Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 1.65% and 1.70% at December 31, 2021 and 2020, respectively – $20,619 maturing September 6, 2037 13,830 13,621 Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 2.87% and 2.88% at December 31, 2021 and 2020, respectively - $10,310 maturing June 17, 2034 8,255 8,161 Total trust preferred debentures $ 49,374 $ 48,814 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income taxes | The components of income taxes for the years ended December 31, 2021, 2020 and 2019 were as follows: (dollars in thousands) 2021 2020 2019 Federal: Current $ 10,044 $ 10,924 $ 2,318 Deferred 7,926 (3,852) 8,287 State: Current 144 1,271 1,761 Deferred (319) 1,134 4,321 Total income tax expense $ 17,795 $ 9,477 $ 16,687 |
Schedule of reconciliation of income tax expense | The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2021, 2020 and 2019 as follows: (dollars in thousands) 2021 2020 2019 Expected income taxes $ 20,814 $ 6,723 $ 15,218 Less income tax effect of: Tax-exempt income, net (2,499) (2,398) (2,568) State tax, net of federal benefit 5,465 1,900 4,805 State tax settlement, net of federal expense (5,614) — — Equity-based compensation benefit (93) 239 (484) Non-deductible transaction costs — — 110 Disposition of nondeductible goodwill — 2,287 — Valuation allowance 47 10 62 Other (325) 716 (456) Actual income tax expense $ 17,795 $ 9,477 $ 16,687 |
Schedule of deferred tax assets, net | Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2021 and 2020 include the following amounts of deferred tax assets and liabilities: (dollars in thousands) 2021 2020 Assets: Allowance for credit losses on loans $ 14,042 $ 16,622 Deferred compensation 2,177 2,152 Loans 1,835 2,772 Tax credits 1,067 1,047 Net operating losses 10,113 11,231 Fair value adjustment on investments 879 1,067 Premises and equipment — 433 Operating lease liabilities 2,946 3,289 Other, net 3,519 3,861 Deferred tax assets 36,578 42,474 Valuation allowance (118) (71) Deferred tax assets, net of valuation allowance 36,460 42,403 Liabilities: Premises and equipment 472 — Unrealized gain on securities 569 4,169 Mortgage servicing rights 5,958 8,315 Fair value adjustment on trust preferred debentures 4,264 4,417 Deferred loan costs, net of fees 3,444 3,632 Intangible assets 5,651 6,921 Software development costs 1,446 1,522 Leased equipment 22,297 17,910 Operating lease right-of-use assets 2,318 2,524 Other, net 3,619 1,315 Deferred tax liabilities 50,038 50,725 Deferred tax liabilities, net $ (13,578) $ (8,322) |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of deferred compensation arrangement | The following table summarizes the activity in the asset and liability balances of the executive officer nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Beginning balance, trust asset $ 3,657 $ — $ — Contributions 207 3,264 — Gain on trust assets 359 499 — Distributions (509) (106) — Ending balance, trust asset $ 3,714 $ 3,657 $ — Beginning balance, deferred compensation liability $ 3,657 $ 2,978 $ 2,383 Deferred compensation 207 350 751 Expense on deferred compensation liability 359 506 8 Distributions (509) (177) (164) Ending balance, deferred compensation liability $ 3,714 $ 3,657 $ 2,978 Certain directors also participate in a nonqualified deferred compensation arrangement. The deferred compensation liability is reflected in other liabilities with the associated expense recognized in other noninterest expense. The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Beginning balance, deferred compensation liability $ 4,560 $ 5,007 $ 4,135 Deferred compensation 606 586 679 Expense on deferred compensation liability 251 270 236 Distributions (45) (1,303) (43) Ending balance, deferred compensation liability $ 5,372 $ 4,560 $ 5,007 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the activity for restricted stock awards | A summary of the activity for restricted stock awards and restricted stock unit awards for the year follows: Number Weighted Nonvested, beginning of year 233,010 $ 22.64 Granted 128,049 25.67 Vested (77,319) 24.60 Forfeited (21,922) 21.66 Nonvested, end of year 261,818 $ 23.62 |
Summary of our stock option plan and changes made | The summary of our stock option activity during the years ended December 31, 2021 and 2020 is as follows: 2021 2020 Shares Weighted Weighted Shares Weighted Weighted Option outstanding, beginning of year 467,489 $ 21.40 623,122 $ 20.83 Options granted — — — — Options exercised (116,147) 19.16 (39,500) 17.90 Options forfeited — — (3,268) 28.89 Options expired (26,548) 27.07 (112,865) 19.26 Options outstanding, end of year 324,794 21.74 3.1 years 467,489 21.40 4.1 years Options exercisable 324,794 21.74 3.1 years 463,590 21.31 4.1 years Options vested and expected to vest 324,794 21.74 3.1 years 467,060 21.39 4.1 years |
Summary of information about the Company's nonvested stock option activity | The following table summarizes information about the Company’s nonvested stock option activity for 2021: Shares Weighted Nonvested, beginning of year 3,899 $ 4.33 Granted — — Vested (3,899) 4.33 Forfeited — — Nonvested, end of year — — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | Presented below are the calculations for basic and diluted earnings per common share for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands, except share and per share data) 2021 2020 2019 Net income $ 81,317 $ 22,537 $ 55,784 Preferred dividends declared — — (191) Preferred stock, premium amortization — — 145 Net income available to common shareholders 81,317 22,537 55,738 Common shareholder dividends (24,912) (24,699) (23,389) Unvested restricted stock award dividends (260) (259) (210) Undistributed earnings to unvested restricted stock awards (564) — (267) Undistributed earnings to common shareholders $ 55,581 $ (2,421) $ 31,872 Basic Distributed earnings to common shareholders $ 24,912 $ 24,699 $ 23,389 Undistributed earnings to common shareholders 55,581 (2,421) 31,872 Total common shareholders earnings, basic $ 80,493 $ 22,278 $ 55,261 Diluted Distributed earnings to common shareholders $ 24,912 $ 24,699 $ 23,389 Undistributed earnings to common shareholders 55,581 (2,421) 31,872 Total common shareholders earnings 80,493 22,278 55,261 Add back: Undistributed earnings reallocated from unvested restricted stock awards 2 — 2 Total common shareholders earnings, diluted $ 80,495 $ 22,278 $ 55,263 Weighted average common shares outstanding, basic 22,481,389 23,336,881 24,288,793 Options 65,964 9,245 204,638 Weighted average common shares outstanding, diluted 22,547,353 23,346,126 24,493,431 Basic earnings per common share $ 3.58 $ 0.95 $ 2.28 Diluted earnings per common share 3.57 0.95 2.26 |
CAPITAL REQUIREMENTS (Tables)
CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capital Requirements [Abstract] | |
Schedule of actual and required capital amounts and ratios | At December 31, 2021 and 2020, the Company’s and the Bank’s actual and required capital ratios were as follows: Actual Fully Phased-In Required to be (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Total risk-based capital ratio Midland States Bancorp, Inc. $ 732,177 12.19 % $ 630,482 10.50 % N/A N/A Midland States Bank 672,500 11.21 629,911 10.50 $ 599,915 10.00% Tier 1 risk-based capital ratio Midland States Bancorp, Inc. 550,195 9.16 510,390 8.50 N/A N/A Midland States Bank 629,389 10.49 509,928 8.50 479,932 8.00 Common equity tier 1 risk-based capital ratio Midland States Bancorp, Inc. 485,244 8.08 420,321 7.00 N/A N/A Midland States Bank 629,389 10.49 419,940 7.00 389,945 6.50 Tier 1 leverage ratio Midland States Bancorp, Inc. 550,195 7.75 283,941 4.00 N/A N/A Midland States Bank 629,389 8.89 283,324 4.00 354,156 5.00 December 31, 2020 Total risk-based capital ratio Midland States Bancorp, Inc. $ 710,417 13.24 % $ 563,610 10.50 % N/A N/A Midland States Bank 631,585 11.77 563,420 10.50 $ 536,591 10.00% Tier 1 risk-based capital ratio Midland States Bancorp, Inc. 494,043 9.20 456,256 8.50 N/A N/A Midland States Bank 578,681 10.78 456,102 8.50 429,273 8.00 Common equity tier 1 risk-based capital ratio Midland States Bancorp, Inc. 429,092 7.99 375,740 7.00 N/A N/A Midland States Bank 578,681 10.78 375,614 7.00 348,784 6.50 Tier 1 leverage ratio Midland States Bancorp, Inc. 494,043 7.50 263,651 4.00 N/A N/A Midland States Bank 578,681 8.78 263,537 4.00 329,421 5.00 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured and recorded at fair value | Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and non-recurring basis at December 31, 2021 and 2020, are summarized below: 2021 (dollars in thousands) Total Quoted prices Significant Significant Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 64,917 $ 64,917 $ — $ — U.S. government sponsored entities and U.S. agency securities 33,817 — 33,817 — Mortgage-backed securities - agency 440,270 — 440,270 — Mortgage-backed securities - non-agency 28,706 — 28,706 — State and municipal securities 143,099 — 143,099 — Corporate securities 195,794 — 194,859 935 Equity securities 9,529 9,529 — — Loans held for sale 32,045 — 32,045 — Interest rate lock commitments 410 — 410 — Interest rate swap contracts 5,473 — 5,473 — Total $ 954,060 $ 74,446 $ 878,679 $ 935 Liabilities Forward commitments to sell mortgage-backed securities $ 19 $ — $ 19 $ — Interest rate swap contracts 378 — 378 — Total $ 397 $ — $ 397 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 28,865 $ — $ — $ 28,865 Nonperforming loans 36,542 24,358 6,129 6,055 Other real estate owned 12,059 — 12,059 — Assets held for sale 2,284 — 2,284 — 2020 (dollars in thousands) Total Quoted prices Significant Significant Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. government sponsored entities and U.S. agency securities $ 35,567 $ — $ 35,567 $ — Mortgage-backed securities - agency 344,577 — 344,577 — Mortgage-backed securities - non-agency 20,744 — 20,744 — State and municipal securities 129,765 — 129,765 — Corporate securities 146,058 — 145,099 959 Equity securities 9,424 9,424 — — Loans held for sale 138,090 — 138,090 — Interest rate lock commitments 2,217 — 2,217 — Interest rate swap contracts 1,206 — 1,206 — Total $ 827,648 $ 9,424 $ 817,265 $ 959 Liabilities Forward commitments to sell mortgage-backed securities $ 309 $ — $ 309 $ — Interest rate swap contracts 803 — 803 — Total $ 1,112 $ — $ 1,112 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 28,865 $ — $ — $ 39,276 Mortgage servicing rights held for sale 878 — — 878 Nonperforming loans 13,333 — 12,054 1,279 Other real estate owned 20,247 — 20,247 — Assets held for sale 4,157 — 4,157 — |
Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2021 and 2020: Corporate Securities (dollars in thousands) 2021 2020 Balance, beginning of period $ 959 $ 955 Total realized in earnings (1) 14 8 Total unrealized in other comprehensive income (2) (24) 4 Net settlements (principal and interest) (14) (8) Balance, end of period $ 935 $ 959 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. (2) Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period. |
Fair value, assets measured on recurring basis | The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2021 and 2020: (dollars in thousands) Fair value Valuation technique Unobservable Range (weighted average) (1) December 31, 2021 Corporate securities $ 935 Consensus pricing Net market price 0.0 % — 7.0% (4.5)% December 31, 2020 Corporate securities $ 959 Consensus pricing Net market price (2.0) % — 4.9% (2.0)% (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule of (gains) losses recognized on assets measured on a non-recurring basis | The following table presents (gains) losses recognized on assets measured on a non-recurring basis for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Loan servicing rights $ 7,532 $ 12,337 $ 2,139 Mortgage servicing rights held for sale 222 1,692 (490) Nonperforming loans 14,468 24,611 10,259 Other real estate owned 454 1,390 16 Assets held for sale — 10,404 3,577 Total loss on assets measured on a nonrecurring basis $ 22,676 $ 50,434 $ 15,501 |
Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) | The following table presents quantitative information about significant unobservable inputs used in the fair value measurements of Level 3 assets measured on a non-recurring basis at December 31, 2021 and 2020: (dollars in thousands) Fair Value Valuation Unobservable Range (weighted average) December 31, 2021 Loan servicing rights: Commercial MSR $ 28,368 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.24)% Discount rate 10.00% - 27.00% (11.87)% SBA servicing rights $ 898 Discounted cash flow Prepayment speed 12.27% - 14.14% (13.88)% Discount rate 10.00% - 12.00% (11.00)% Residential MSR $ 705 Discounted cash flow Prepayment speed 11.94% - 27.48% (14.94)% Discount rate 9.00% - 11.50% (10.25)% December 31, 2020 Loan servicing rights: Commercial MSR $ 38,322 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.18)% Discount rate 10.00% - 27.00% (11.48)% SBA servicing rights $ 954 Discounted cash flow Prepayment speed 12.01% — 12.52% (12.25)% Discount rate No range (11.00)% MSR held for sale $ 878 Discounted cash flow Prepayment speed 14.40% — 26.28% (20.34)% Discount rate 9.00% — 11.50% (10.13)% |
Schedule of the fair value option for newly originated residential and commercial loans held for sale | The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected at December 31, 2021 and 2020: 2021 2020 (dollars in thousands) Aggregate Difference Contractual Aggregate Difference Contractual Commercial loans held for sale $ 19,230 $ — $ 19,230 $ 126,123 $ 67 $ 126,056 Residential loans held for sale 12,815 584 12,231 11,967 743 11,224 Total loans held for sale $ 32,045 $ 584 $ 31,461 $ 138,090 $ 810 $ 137,280 The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2021, 2020 and 2019: (dollars in thousands) 2021 2020 2019 Commercial loans held for sale $ (67) $ (139) $ (389) Residential loans held for sale (148) 318 7 Total loans held for sale $ (215) $ 179 $ (382) |
Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments | The carrying values and estimated fair value of financial instruments not carried at fair value at December 31, 2021 and 2020 were as follows: 2021 (dollars in thousands) Carrying Fair Value Quoted prices Significant Significant Assets Cash and due from banks $ 673,297 $ 673,297 $ 673,297 $ — $ — Federal funds sold 7,074 7,074 7,074 — — Loans, net 5,173,739 5,221,886 — — 5,221,886 Accrued interest receivable 19,470 19,470 — 19,470 — Liabilities Deposits $ 6,110,648 $ 6,109,077 $ — $ 6,109,077 $ — Short-term borrowings 76,803 76,803 — 76,803 — FHLB and other borrowings 310,171 317,464 — 317,464 — Subordinated debt 139,091 148,386 — 148,386 — Trust preferred debentures 49,374 57,827 — 57,827 — Accrued interest payable 2,848 2,848 — 2,848 — 2020 (dollars in thousands) Carrying Fair Value Quoted prices Significant Significant Assets Cash and due from banks $ 337,080 $ 337,080 $ 337,080 $ — $ — Federal funds sold 4,560 4,560 4,560 — — Loans, net 5,042,888 5,006,223 — — 5,006,223 Accrued interest receivable 23,545 23,545 — 23,545 — Liabilities Deposits $ 5,101,016 $ 5,108,360 $ — $ 5,108,360 $ — Short-term borrowings 68,957 68,957 — 68,957 — FHLB and other borrowings 779,171 807,493 — 807,493 — Subordinated debt 169,795 176,504 — 176,504 — Trust preferred debentures 48,814 50,165 — 50,165 — Accrued interest payable 4,441 4,441 — 4,441 — |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of loan commitments | Loan commitments at December 31, 2021 and 2020 were as follows: (dollars in thousands) 2021 2020 Commitments to extend credit $ 994,709 $ 894,212 Financial guarantees – standby letters of credit 14,325 15,889 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Selected business segment financial information as of and for the years ended December 31, 2021, 2020 and 2019 were as follows: (dollars in thousands) Banking Wealth Other Total December 31, 2021 Net interest income (expense) $ 218,309 $ — $ (10,634) $ 207,675 Provision for credit losses on loans 3,393 — — 3,393 Noninterest income 42,249 26,876 774 69,899 Noninterest expense 158,803 17,372 (1,106) 175,069 Income (loss) before income taxes (benefit) 98,362 9,504 (8,754) 99,112 Income taxes (benefit) 17,218 2,679 (2,102) 17,795 Net income (loss) $ 81,144 $ 6,825 $ (6,652) $ 81,317 Total assets $ 7,460,114 $ 28,883 $ (45,192) $ 7,443,805 December 31, 2020 Net interest income (expense) $ 211,120 $ — $ (11,984) $ 199,136 Provision for credit losses on loans 44,361 — — 44,361 Noninterest income 38,706 22,802 (259) 61,249 Noninterest expense 170,025 14,938 (953) 184,010 Income (loss) before income taxes (benefit) 35,440 7,864 (11,290) 32,014 Income taxes (benefit) 10,020 2,194 (2,737) 9,477 Net income (loss) $ 25,420 $ 5,670 $ (8,553) $ 22,537 Total assets $ 6,983,254 $ 29,069 $ (143,783) $ 6,868,540 December 31, 2019 Net interest income (expense) $ 201,534 $ — $ (11,719) $ 189,815 Provision for credit losses on loans 16,985 — — 16,985 Noninterest income 53,683 21,832 (233) 75,282 Noninterest expense 160,364 14,850 427 175,641 Income (loss) before income taxes (benefit) 77,868 6,982 (12,379) 72,471 Income taxes (benefit) 18,195 1,850 (3,358) 16,687 Net income (loss) $ 59,673 $ 5,132 $ (9,021) $ 55,784 Total assets $ 6,085,441 $ 27,521 $ (25,945) $ 6,087,017 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of noninterest income, segregated by revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2021, 2020 and 2019. (dollars in thousands) 2021 2020 2019 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 20,954 $ 16,953 $ 16,114 Investment advisory fees 1,282 2,009 2,171 Investment brokerage fees 2,050 1,465 1,165 Other 2,525 2,375 2,382 Service charges on deposit accounts: Nonsufficient fund fees 5,339 5,589 7,721 Other 3,009 3,014 3,306 Interchange revenues 14,500 12,266 11,992 Other income: Merchant services revenue 1,511 1,381 1,506 Other 3,850 3,161 3,475 Noninterest income - out-of-scope of Topic 606 14,879 13,036 25,450 Total noninterest income $ 69,899 $ 61,249 $ 75,282 |
PARENT COMPANY ONLY FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | Condensed Balance Sheets (dollars in thousands) December 31, 2021 2020 Assets: Cash $ 37,876 $ 58,904 Investment in common stock of subsidiaries 809,143 772,758 Other assets 8,094 11,317 Total assets $ 855,113 $ 842,979 Liabilities: Subordinated debt $ 139,091 $ 169,795 Trust preferred debentures 49,374 48,814 Other borrowings 171 171 Other liabilities 2,640 2,808 Total liabilities 191,276 221,588 Shareholders’ equity 663,837 621,391 Total liabilities and shareholders’ equity $ 855,113 $ 842,979 |
Schedule of condensed statement of income | Condensed Statements of Income (dollars in thousands) Years ended December 31, 2021 2020 2019 Dividends from subsidiaries $ 45,350 $ 89,890 $ 43,900 Other income 932 — — Interest expense 10,668 12,054 11,798 Other expense 984 1,309 2,753 Income before income tax benefit and equity in undistributed income (loss) of subsidiaries 34,630 76,527 29,349 Income tax benefit 2,105 2,749 3,371 Income before equity in undistributed income (loss) of subsidiaries 36,735 79,276 32,720 Equity in undistributed income (loss) of subsidiaries 44,582 (56,739) 23,064 Net income $ 81,317 $ 22,537 $ 55,784 |
Schedule of condensed cash flows | Condensed Statements of Cash Flows (dollars in thousands) Years ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 81,317 $ 22,537 $ 55,784 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (income) loss of subsidiaries (44,582) 56,739 (23,064) Share-based compensation expense 1,938 2,175 2,364 Change in other assets 3,223 (6,382) (2,604) Change in other liabilities 763 471 1,528 Net cash provided by operating activities 42,659 75,540 34,008 Cash flows from investing activities: Net cash paid in acquisition — — (1,021) Net cash received in dissolution of subsidiary 2,003 — — Net cash provided by (used in) investing activities 2,003 — (1,021) Cash flows from financing activities: Proceeds from issuance of subordinated debt, net of issuance costs — — 98,265 Payments made on subordinated debt (31,075) (7,443) (19,543) Subordinated debt prepayment fees — 193 1,778 Payments made on other borrowings — — (56,475) Common stock repurchased (11,692) (39,615) (4,019) Redemption of Series G preferred stock — (10) — Redemption of Series H preferred stock — — (2,636) Cash dividends paid on common stock (25,172) (24,958) (23,599) Cash dividends paid on preferred stock — — (191) Proceeds from issuance of common stock under employee benefit plans 2,249 2,524 5,794 Net cash used in by financing activities (65,690) (69,309) (626) Net (decrease) increase in cash (21,028) 6,231 32,361 Cash: Beginning of period 58,904 52,673 20,312 End of period $ 37,876 $ 58,904 $ 52,673 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental disclosures of cash flow information: | |||
Interest paid on deposits and borrowed funds | $ 31,735 | $ 47,712 | $ 58,158 |
Income tax paid, net of refunds | 7,759 | 2,977 | 479 |
Supplemental disclosures of noncash investing and financing activities: | |||
Transfer of loans to loans held for sale | 123,117 | 542,060 | 419,215 |
Transfer of loans to other real estate owned | 805 | 16,736 | 3,819 |
Transfer of premises and equipment, net to assets held for sale | 23 | 11,344 | 4,350 |
Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights | $ 705 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued interest receivable | $ 15,900,000 | $ 19,900,000 | |
Increase in allowance for credit losses | $ 12,800,000 | ||
Increase in liabilities for unfunded commitment | $ 300,000 | ||
Threshold amount for non accrual loans | 500,000 | ||
Threshold amount for accruing loans past due more than 90 days | 100,000 | ||
Liabilities for unfunded commitments | $ 1,900,000 | $ 2,400,000 | |
Minimum | |||
Percentage cost of related equipment to unguaranteed residual values | 3.00% | ||
Other intangible assets amortized over a period | 1 year | ||
Maximum | |||
Percentage cost of related equipment to unguaranteed residual values | 15.00% | ||
Other intangible assets amortized over a period | 20 years | ||
Premises | Minimum | |||
Estimated useful lives | 10 years | ||
Premises | Maximum | |||
Estimated useful lives | 40 years | ||
Furniture and equipment | Minimum | |||
Estimated useful lives | 3 years | ||
Furniture and equipment | Maximum | |||
Estimated useful lives | 10 years |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Narrative (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Aug. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition | |||||
Proceeds from sale of commercial FHA origination platform | $ 0 | $ 7,502 | $ 0 | ||
Income taxes | 17,795 | $ 9,477 | $ 16,687 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Commercial FHA Origination Platform | |||||
Business Acquisition | |||||
Proceeds from sale of commercial FHA origination platform | $ 7,500 | ||||
Goodwill derecognized | 10,900 | ||||
Income taxes | $ 3,000 | ||||
ATG Trust | |||||
Business Acquisition | |||||
Fair value of assets acquired | $ 399,700 | ||||
Total consideration | $ 2,700 | ||||
Transaction and integration costs | $ 400 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Allocation of Consideration (Details) - ATG Trust $ in Thousands | Jul. 17, 2019USD ($) |
Assets acquired: | |
Intangible assets | $ 1,847 |
Other assets | 1,269 |
Total assets acquired | 3,116 |
Liabilities assumed: | |
Other liabilities | 401 |
Net assets acquired and consideration paid | $ 2,715 |
Intangible assets: | |
Estimated useful life | 6 years |
Customer relationship intangibles | |
Intangible assets: | |
Total intangible assets | $ 1,847 |
Estimated useful life | 6 years |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) | Dec. 31, 2021USD ($) |
Cash and Cash Equivalents [Abstract] | |
Required cash reserve | $ 0 |
INVESTMENT SECURITIES - Classif
INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment securities available for sale | |||
Amortized Cost | $ 904,695 | $ 661,713 | |
Gross unrealized gains | 11,505 | 16,510 | |
Gross unrealized losses | 9,376 | 1,146 | |
Allowance for credit losses | 221 | 366 | $ 0 |
Fair value | 906,603 | 676,711 | |
U.S. Treasury securities | |||
Investment securities available for sale | |||
Amortized Cost | 65,347 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 430 | ||
Allowance for credit losses | 0 | ||
Fair value | 64,917 | ||
U.S. government sponsored entities and U.S. agency securities | |||
Investment securities available for sale | |||
Amortized Cost | 34,569 | 35,287 | |
Gross unrealized gains | 79 | 377 | |
Gross unrealized losses | 831 | 97 | |
Allowance for credit losses | 0 | 0 | |
Fair value | 33,817 | 35,567 | |
Mortgage-backed securities - agency | |||
Investment securities available for sale | |||
Amortized Cost | 444,484 | 338,340 | |
Gross unrealized gains | 2,687 | 6,284 | |
Gross unrealized losses | 6,901 | 47 | |
Allowance for credit losses | 0 | 0 | |
Fair value | 440,270 | 344,577 | |
Mortgage-backed securities - non-agency | |||
Investment securities available for sale | |||
Amortized Cost | 29,037 | 20,411 | |
Gross unrealized gains | 50 | 333 | |
Gross unrealized losses | 381 | 0 | |
Allowance for credit losses | 0 | 0 | |
Fair value | 28,706 | 20,744 | |
State and municipal securities | |||
Investment securities available for sale | |||
Amortized Cost | 137,904 | 122,488 | |
Gross unrealized gains | 5,561 | 7,311 | |
Gross unrealized losses | 366 | 5 | |
Allowance for credit losses | 0 | 29 | 0 |
Fair value | 143,099 | 129,765 | |
Corporate securities | |||
Investment securities available for sale | |||
Amortized Cost | 193,354 | 145,187 | |
Gross unrealized gains | 3,128 | 2,205 | |
Gross unrealized losses | 467 | 997 | |
Allowance for credit losses | 221 | 337 | $ 0 |
Fair value | $ 195,794 | $ 146,058 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) $ in Thousands | Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($) |
Marketable Securities [Line Items] | ||
Number of investment securities available for sale | security | 113 | |
Aggregate depreciation | 1.85% | |
Equity securities | $ 9,529 | $ 9,424 |
Investment Securities | ||
Marketable Securities [Line Items] | ||
Amounts pledged for public deposits | $ 371,000 | $ 327,000 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized cost and fair value (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Amortized cost | |
Within one year | $ 9,877 |
After one year through five years | 137,694 |
After five years through ten years | 244,626 |
After ten years | 38,977 |
Mortgage-backed securities | 473,521 |
Total investment securities available for sale | 904,695 |
Fair value | |
Within one year | 9,976 |
After one year through five years | 139,456 |
After five years through ten years | 248,197 |
After ten years | 39,998 |
Mortgage-backed securities | 468,976 |
Total investment securities available for sale | $ 906,603 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment securities available for sale | |||
Proceeds from sales | $ 14,777 | $ 28,256 | $ 33,464 |
Gross realized gains on sales | 537 | 1,721 | 786 |
Gross realized losses on sales | 0 | 0 | (190) |
Equity securities | |||
Proceeds from sales | 0 | 0 | 105 |
Gross realized gains on sales | 0 | 0 | 78 |
Gross realized losses on sales | 0 | 0 | 0 |
Net unrealized gains (losses) | $ 361 | $ 577 | $ 93 |
INVESTMENT SECURITIES - Allowan
INVESTMENT SECURITIES - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in ACL on investment securities available for sale: | |||
Allowance for credit losses | $ 221 | $ 366 | $ 0 |
Balance, beginning of period | (145) | 366 | |
Mortgage-backed securities - non-agency | |||
Changes in ACL on investment securities available for sale: | |||
Allowance for credit losses | 0 | 0 | |
State and municipal securities | |||
Changes in ACL on investment securities available for sale: | |||
Allowance for credit losses | 0 | 29 | 0 |
Balance, beginning of period | (29) | 29 | |
Corporate securities | |||
Changes in ACL on investment securities available for sale: | |||
Allowance for credit losses | 221 | 337 | $ 0 |
Balance, beginning of period | $ (116) | $ 337 |
INVESTMENT SECURITIES - Continu
INVESTMENT SECURITIES - Continuous unrealized loss position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 Months, Fair value | $ 451,195 | $ 56,085 |
Less than 12 Months, Unrealized loss | 7,977 | 666 |
12 Months or more, Fair value | 21,021 | 0 |
12 Months or more, Unrealized loss | 932 | 0 |
Total, Fair value | 472,216 | 56,085 |
Total, Unrealized loss | 8,909 | 666 |
U.S. Treasury securities | ||
Fair Value | ||
Less than 12 Months, Fair value | 64,917 | |
Less than 12 Months, Unrealized loss | 430 | |
12 Months or more, Fair value | 0 | |
12 Months or more, Unrealized loss | 0 | |
Total, Fair value | 64,917 | |
Total, Unrealized loss | 430 | |
U.S. government sponsored entities and U.S. agency securities | ||
Fair Value | ||
Less than 12 Months, Fair value | 17,487 | 9,903 |
Less than 12 Months, Unrealized loss | 263 | 97 |
12 Months or more, Fair value | 9,432 | 0 |
12 Months or more, Unrealized loss | 568 | 0 |
Total, Fair value | 26,919 | 9,903 |
Total, Unrealized loss | 831 | 97 |
Mortgage-backed securities - agency | ||
Fair Value | ||
Less than 12 Months, Fair value | 317,372 | 26,172 |
Less than 12 Months, Unrealized loss | 6,633 | 47 |
12 Months or more, Fair value | 9,051 | 0 |
12 Months or more, Unrealized loss | 268 | 0 |
Total, Fair value | 326,423 | 26,172 |
Total, Unrealized loss | 6,901 | 47 |
Mortgage-backed securities - non-agency | ||
Fair Value | ||
Less than 12 Months, Fair value | 24,095 | |
Less than 12 Months, Unrealized loss | 381 | |
12 Months or more, Fair value | 0 | |
12 Months or more, Unrealized loss | 0 | |
Total, Fair value | 24,095 | |
Total, Unrealized loss | 381 | |
State and municipal securities | ||
Fair Value | ||
Less than 12 Months, Fair value | 27,324 | |
Less than 12 Months, Unrealized loss | 270 | |
12 Months or more, Fair value | 2,538 | |
12 Months or more, Unrealized loss | 96 | |
Total, Fair value | 29,862 | |
Total, Unrealized loss | 366 | |
Corporate securities | ||
Fair Value | ||
Less than 12 Months, Fair value | 0 | 20,010 |
Less than 12 Months, Unrealized loss | 0 | 522 |
12 Months or more, Fair value | 0 | 0 |
12 Months or more, Unrealized loss | 0 | 0 |
Total, Fair value | 0 | 20,010 |
Total, Unrealized loss | $ 0 | $ 522 |
LOANS - Summary of loans (Detai
LOANS - Summary of loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of loans | |||
Loans | $ 5,224,801 | $ 5,103,331 | |
Loans, additional information | |||
Net deferred loan fees | 4,600 | 700 | |
Unearned income | 46,100 | 46,500 | |
Loans held for sale | 32,045 | 138,090 | |
Proceeds from sales of loans held for sale | 739,954 | 1,218,950 | $ 949,745 |
Commercial Portfolio | |||
Summary of loans | |||
Loans | 3,460,765 | 3,384,285 | |
Commercial Portfolio | Commercial | |||
Summary of loans | |||
Loans | 770,670 | 937,382 | |
Commercial Portfolio | Commercial other | |||
Summary of loans | |||
Loans | 679,518 | 748,193 | |
Commercial Portfolio | Commercial real estate non-owner occupied | |||
Summary of loans | |||
Loans | 1,105,333 | 871,451 | |
Commercial Portfolio | Commercial real estate owner occupied | |||
Summary of loans | |||
Loans | 469,658 | 423,257 | |
Commercial Portfolio | Multi-family | |||
Summary of loans | |||
Loans | 171,875 | 151,534 | |
Commercial Portfolio | Farmland | |||
Summary of loans | |||
Loans | 69,962 | 79,731 | |
Commercial Portfolio | Construction and land development | |||
Summary of loans | |||
Loans | 193,749 | 172,737 | |
Residential Portfolio | Residential first lien | |||
Summary of loans | |||
Loans | 274,412 | 358,329 | |
Residential Portfolio | Other residential | |||
Summary of loans | |||
Loans | 63,739 | 84,551 | |
Consumer Portfolio | Consumer | |||
Summary of loans | |||
Loans | 106,008 | 80,642 | |
Consumer Portfolio | Consumer other | |||
Summary of loans | |||
Loans | 896,597 | 785,460 | |
Finance Leases Portfolio | |||
Summary of loans | |||
Loans | 423,280 | 410,064 | |
Commercial Real Estate, Residential Real Estate And Consumer Loans | |||
Loans, additional information | |||
Proceeds from sales of loans held for sale | $ 740,000 | $ 1,220,000 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)region | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Summary of loans | ||||
Loans | $ 5,224,801,000 | $ 5,103,331,000 | ||
Threshold amount for non accrual loans | 500,000 | |||
Amount of financing receivable reclassified to non-accrual | $ 9,800,000 | |||
Interest income recognized on nonaccrual loans | 0 | 0 | $ 0 | |
Additional interest income that would have been recorded had they been current | 2,700,000 | 3,300,000 | 2,200,000 | |
Recognized interest income on loans modified under troubled debt restructurings | $ 100,000 | 100,000 | 100,000 | |
Number of main regions | region | 4 | |||
Allowance for loan losses on TDRs | $ 700,000 | 800,000 | ||
Unfunded commitments in connection with TDRs | 0 | 0 | ||
Commercial Portfolio | ||||
Summary of loans | ||||
Loans | 3,460,765,000 | 3,384,285,000 | ||
COVID-19 | ||||
Summary of loans | ||||
Outstanding balance of modifications made, not considered TDRs | 13,300,000 | 209,100,000 | ||
PPP Loans | Commercial Portfolio | ||||
Summary of loans | ||||
Loans | 52,500,000 | 184,400,000 | ||
Commercial FHA Warehouse Lines | Commercial Portfolio | ||||
Summary of loans | ||||
Loans | 91,900,000 | 273,300,000 | ||
Directors, executive officers, principal shareholders and affiliates | ||||
Summary of loans | ||||
Loans outstanding from related parties | $ 13,869,000 | $ 19,693,000 | $ 22,989,000 |
LOANS - Loans to Directors, Exe
LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, executive officers, principal shareholders and affiliates - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of loans | ||
Beginning balance | $ 19,693 | $ 22,989 |
New loans and other additions | 4,745 | 2,563 |
Repayments and other reductions | (10,569) | (5,859) |
Ending balance | $ 13,869 | $ 19,693 |
LOANS - Summary of changes in t
LOANS - Summary of changes in the ACL on loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of impaired loans | |||
Beginning balance | $ 60,443 | $ 28,028 | $ 20,903 |
Provision for credit losses on loans | 3,950 | 43,149 | 16,985 |
Charge-offs | (15,420) | (25,454) | (12,068) |
Recoveries | 2,089 | 1,937 | 2,208 |
Ending balance | 51,062 | 60,443 | 28,028 |
PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 4,237 | ||
Ending balance | 4,237 | ||
ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | 8,546 | ||
Ending balance | 8,546 | ||
Commercial Portfolio | Commercial | |||
Summary of impaired loans | |||
Beginning balance | 19,851 | 10,031 | 9,524 |
Provision for credit losses on loans | 648 | 11,890 | 3,852 |
Charge-offs | (6,465) | (5,589) | (3,412) |
Recoveries | 341 | 147 | 67 |
Ending balance | 14,375 | 19,851 | 10,031 |
Commercial Portfolio | Commercial | PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 1,045 | ||
Ending balance | 1,045 | ||
Commercial Portfolio | Commercial | ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | 2,327 | ||
Ending balance | 2,327 | ||
Commercial Portfolio | Commercial Real Estate | |||
Summary of impaired loans | |||
Beginning balance | 25,465 | 10,272 | 4,723 |
Provision for credit losses on loans | 1,031 | 23,091 | 7,939 |
Charge-offs | (3,524) | (13,637) | (3,339) |
Recoveries | 21 | 324 | 949 |
Ending balance | 22,993 | 25,465 | 10,272 |
Commercial Portfolio | Commercial Real Estate | PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 1,311 | ||
Ending balance | 1,311 | ||
Commercial Portfolio | Commercial Real Estate | ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | 4,104 | ||
Ending balance | 4,104 | ||
Commercial Portfolio | Construction and land development | |||
Summary of impaired loans | |||
Beginning balance | 1,433 | 290 | 372 |
Provision for credit losses on loans | (234) | (121) | (53) |
Charge-offs | (448) | (376) | (44) |
Recoveries | 221 | 107 | 15 |
Ending balance | 972 | 1,433 | 290 |
Commercial Portfolio | Construction and land development | PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 809 | ||
Ending balance | 809 | ||
Commercial Portfolio | Construction and land development | ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | 724 | ||
Ending balance | 724 | ||
Residential Portfolio | Residential Real Estate Loans | |||
Summary of impaired loans | |||
Beginning balance | 3,929 | 2,499 | 2,041 |
Provision for credit losses on loans | (1,085) | (458) | 1,392 |
Charge-offs | (398) | (522) | (1,076) |
Recoveries | 249 | 184 | 142 |
Ending balance | 2,695 | 3,929 | 2,499 |
Residential Portfolio | Residential Real Estate Loans | PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 1,015 | ||
Ending balance | 1,015 | ||
Residential Portfolio | Residential Real Estate Loans | ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | 1,211 | ||
Ending balance | 1,211 | ||
Consumer Portfolio | Consumer | |||
Summary of impaired loans | |||
Beginning balance | 2,338 | 2,642 | 2,154 |
Provision for credit losses on loans | 864 | 1,212 | 1,767 |
Charge-offs | (1,158) | (1,624) | (1,946) |
Recoveries | 514 | 645 | 667 |
Ending balance | 2,558 | 2,338 | 2,642 |
Consumer Portfolio | Consumer | PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 57 | ||
Ending balance | 57 | ||
Consumer Portfolio | Consumer | ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | (594) | ||
Ending balance | (594) | ||
Finance Leases Portfolio | |||
Summary of impaired loans | |||
Beginning balance | 7,427 | 2,294 | 2,089 |
Provision for credit losses on loans | 2,726 | 7,535 | 2,088 |
Charge-offs | (3,427) | (3,706) | (2,251) |
Recoveries | 743 | 530 | 368 |
Ending balance | $ 7,469 | 7,427 | 2,294 |
Finance Leases Portfolio | PCI Loans | |||
Summary of impaired loans | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Finance Leases Portfolio | ASU No. 2016-13 | |||
Summary of impaired loans | |||
Beginning balance | $ 774 | ||
Ending balance | $ 774 |
LOANS - Risk rating (Details)
LOANS - Risk rating (Details) - Consumer Loans And Equipment Finance Loans And Leases | Dec. 31, 2021 |
Credit Risk State One | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 0 days |
Credit Risk State One | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 14 days |
Credit Risk State Two | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 15 days |
Credit Risk State Two | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 29 days |
Credit Risk State Three | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 30 days |
Credit Risk State Three | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 59 days |
Credit Risk State Four | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 60 days |
Credit Risk State Four | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 89 days |
Credit Risk State Default | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 90 days |
LOANS - Non-accrural (Details)
LOANS - Non-accrural (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of loans | ||
Nonaccrural with Allowance | $ 19,237 | $ 38,489 |
Nonaccrural with no Allowance | 16,326 | 11,139 |
Total Nonaccrual | 35,563 | 49,628 |
Commercial Portfolio | ||
Summary of loans | ||
Nonaccrural with Allowance | 13,665 | 25,291 |
Nonaccrural with no Allowance | 15,494 | 10,068 |
Total Nonaccrual | 29,159 | 35,359 |
Commercial Portfolio | Commercial | ||
Summary of loans | ||
Nonaccrural with Allowance | 4,681 | 3,498 |
Nonaccrural with no Allowance | 2,275 | 0 |
Total Nonaccrual | 6,956 | 3,498 |
Commercial Portfolio | Commercial other | ||
Summary of loans | ||
Nonaccrural with Allowance | 4,467 | 2,634 |
Nonaccrural with no Allowance | 0 | 0 |
Total Nonaccrual | 4,467 | 2,634 |
Commercial Portfolio | Commercial real estate non-owner occupied | ||
Summary of loans | ||
Nonaccrural with Allowance | 1,914 | 5,509 |
Nonaccrural with no Allowance | 9,912 | 3,823 |
Total Nonaccrual | 11,826 | 9,332 |
Commercial Portfolio | Commercial real estate owner occupied | ||
Summary of loans | ||
Nonaccrural with Allowance | 2,164 | 3,598 |
Nonaccrural with no Allowance | 1,340 | 3,227 |
Total Nonaccrual | 3,504 | 6,825 |
Commercial Portfolio | Multi-family | ||
Summary of loans | ||
Nonaccrural with Allowance | 201 | 7,921 |
Nonaccrural with no Allowance | 1,967 | 2,325 |
Total Nonaccrual | 2,168 | 10,246 |
Commercial Portfolio | Farmland | ||
Summary of loans | ||
Nonaccrural with Allowance | 155 | 0 |
Nonaccrural with no Allowance | 0 | 0 |
Total Nonaccrual | 155 | 0 |
Commercial Portfolio | Construction and land development | ||
Summary of loans | ||
Nonaccrural with Allowance | 83 | 2,131 |
Nonaccrural with no Allowance | 0 | 693 |
Total Nonaccrual | 83 | 2,824 |
Residential Portfolio | Residential first lien | ||
Summary of loans | ||
Nonaccrural with Allowance | 3,116 | 8,534 |
Nonaccrural with no Allowance | 832 | 1,071 |
Total Nonaccrual | 3,948 | 9,605 |
Residential Portfolio | Other residential | ||
Summary of loans | ||
Nonaccrural with Allowance | 836 | 2,437 |
Nonaccrural with no Allowance | 0 | 0 |
Total Nonaccrual | 836 | 2,437 |
Consumer Portfolio | Consumer | ||
Summary of loans | ||
Nonaccrural with Allowance | 110 | 262 |
Nonaccrural with no Allowance | 0 | 0 |
Total Nonaccrual | 110 | 262 |
Finance Leases Portfolio | ||
Summary of loans | ||
Nonaccrural with Allowance | 1,510 | 1,965 |
Nonaccrural with no Allowance | 0 | 0 |
Total Nonaccrual | $ 1,510 | $ 1,965 |
LOANS - Collateral dependent lo
LOANS - Collateral dependent loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of loans | ||
Collateral dependent loans | $ 20,813 | $ 18,973 |
Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 14,909 | 18,973 |
Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 5,402 | 0 |
Equipment | ||
Summary of loans | ||
Collateral dependent loans | 502 | 0 |
Commercial Portfolio | Commercial | ||
Summary of loans | ||
Collateral dependent loans | 5,402 | |
Commercial Portfolio | Commercial | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Commercial | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 5,402 | |
Commercial Portfolio | Commercial | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Commercial other | ||
Summary of loans | ||
Collateral dependent loans | 502 | |
Commercial Portfolio | Commercial other | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Commercial other | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Commercial other | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 502 | |
Commercial Portfolio | Commercial real estate non-owner occupied | ||
Summary of loans | ||
Collateral dependent loans | 11,604 | 8,159 |
Commercial Portfolio | Commercial real estate non-owner occupied | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 11,604 | 8,159 |
Commercial Portfolio | Commercial real estate non-owner occupied | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial Portfolio | Commercial real estate non-owner occupied | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial Portfolio | Commercial real estate owner occupied | ||
Summary of loans | ||
Collateral dependent loans | 1,336 | |
Commercial Portfolio | Commercial real estate owner occupied | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 1,336 | |
Commercial Portfolio | Commercial real estate owner occupied | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Commercial real estate owner occupied | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Multi-family | ||
Summary of loans | ||
Collateral dependent loans | 1,969 | 10,121 |
Commercial Portfolio | Multi-family | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 1,969 | 10,121 |
Commercial Portfolio | Multi-family | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial Portfolio | Multi-family | Equipment | ||
Summary of loans | ||
Collateral dependent loans | $ 0 | 0 |
Commercial Portfolio | Construction and land development | ||
Summary of loans | ||
Collateral dependent loans | 693 | |
Commercial Portfolio | Construction and land development | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 693 | |
Commercial Portfolio | Construction and land development | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Commercial Portfolio | Construction and land development | Equipment | ||
Summary of loans | ||
Collateral dependent loans | $ 0 |
LOANS - Aging Status of recorde
LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Aging Status of Recorded Investment | ||
Nonaccrual loans | $ 35,563 | $ 49,628 |
Total | 5,224,801 | 5,103,331 |
Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 35,563 | 49,628 |
30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 10,069 | 23,714 |
60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 7,445 | 7,746 |
Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 6 | 1,541 |
Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 17,520 | 33,001 |
Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 5,171,718 | 5,020,702 |
Commercial Portfolio | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 29,159 | 35,359 |
Total | 3,460,765 | 3,384,285 |
Commercial Portfolio | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 29,159 | 35,359 |
Commercial Portfolio | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 3,697 | 14,149 |
Commercial Portfolio | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 4,386 | 3,928 |
Commercial Portfolio | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 5 | 896 |
Commercial Portfolio | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 8,088 | 18,973 |
Commercial Portfolio | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 3,423,518 | 3,329,953 |
Commercial Portfolio | Commercial | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 6,956 | 3,498 |
Total | 770,670 | 937,382 |
Commercial Portfolio | Commercial | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 6,956 | 3,498 |
Commercial Portfolio | Commercial | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 283 | 389 |
Commercial Portfolio | Commercial | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 1,082 | 27 |
Commercial Portfolio | Commercial | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Commercial | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 1,365 | 416 |
Commercial Portfolio | Commercial | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 762,349 | 933,468 |
Commercial Portfolio | Commercial other | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 4,467 | 2,634 |
Total | 679,518 | 748,193 |
Commercial Portfolio | Commercial other | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 4,467 | 2,634 |
Commercial Portfolio | Commercial other | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 2,402 | 4,007 |
Commercial Portfolio | Commercial other | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 2,110 | 3,901 |
Commercial Portfolio | Commercial other | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 5 | 896 |
Commercial Portfolio | Commercial other | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 4,517 | 8,804 |
Commercial Portfolio | Commercial other | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 670,534 | 736,755 |
Commercial Portfolio | Commercial real estate non-owner occupied | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 11,826 | 9,332 |
Total | 1,105,333 | 871,451 |
Commercial Portfolio | Commercial real estate non-owner occupied | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 11,826 | 9,332 |
Commercial Portfolio | Commercial real estate non-owner occupied | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 585 | 6,684 |
Commercial Portfolio | Commercial real estate non-owner occupied | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 243 | 0 |
Commercial Portfolio | Commercial real estate non-owner occupied | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Commercial real estate non-owner occupied | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 828 | 6,684 |
Commercial Portfolio | Commercial real estate non-owner occupied | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 1,092,679 | 855,435 |
Commercial Portfolio | Commercial real estate owner occupied | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 3,504 | 6,825 |
Total | 469,658 | 423,257 |
Commercial Portfolio | Commercial real estate owner occupied | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 3,504 | 6,825 |
Commercial Portfolio | Commercial real estate owner occupied | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 232 | 2,145 |
Commercial Portfolio | Commercial real estate owner occupied | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 730 | 0 |
Commercial Portfolio | Commercial real estate owner occupied | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Commercial real estate owner occupied | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 962 | 2,145 |
Commercial Portfolio | Commercial real estate owner occupied | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 465,192 | 414,287 |
Commercial Portfolio | Multi-family | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 2,168 | 10,246 |
Total | 171,875 | 151,534 |
Commercial Portfolio | Multi-family | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 2,168 | 10,246 |
Commercial Portfolio | Multi-family | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 61 |
Commercial Portfolio | Multi-family | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Multi-family | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Multi-family | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 61 |
Commercial Portfolio | Multi-family | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 169,707 | 141,227 |
Commercial Portfolio | Farmland | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 155 | 0 |
Total | 69,962 | 79,731 |
Commercial Portfolio | Farmland | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 155 | 0 |
Commercial Portfolio | Farmland | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Farmland | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 26 | 0 |
Commercial Portfolio | Farmland | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Farmland | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 26 | 0 |
Commercial Portfolio | Farmland | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 69,781 | 79,731 |
Commercial Portfolio | Construction and land development | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 83 | 2,824 |
Total | 193,749 | 172,737 |
Commercial Portfolio | Construction and land development | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 83 | 2,824 |
Commercial Portfolio | Construction and land development | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 195 | 863 |
Commercial Portfolio | Construction and land development | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 195 | 0 |
Commercial Portfolio | Construction and land development | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Commercial Portfolio | Construction and land development | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 390 | 863 |
Commercial Portfolio | Construction and land development | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 193,276 | 169,050 |
Residential Portfolio | Residential first lien | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 3,948 | 9,605 |
Total | 274,412 | 358,329 |
Residential Portfolio | Residential first lien | Performing | ||
Aging Status of Recorded Investment | ||
Total | 268,207 | 348,127 |
Residential Portfolio | Residential first lien | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 3,948 | 9,605 |
Total | 6,205 | 10,202 |
Residential Portfolio | Residential first lien | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 113 | 127 |
Residential Portfolio | Residential first lien | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 285 | 207 |
Residential Portfolio | Residential first lien | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Residential Portfolio | Residential first lien | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 398 | 334 |
Residential Portfolio | Residential first lien | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 270,066 | 348,390 |
Residential Portfolio | Other residential | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 836 | 2,437 |
Total | 63,739 | 84,551 |
Residential Portfolio | Other residential | Performing | ||
Aging Status of Recorded Investment | ||
Total | 62,032 | 81,723 |
Residential Portfolio | Other residential | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 836 | 2,437 |
Total | 1,707 | 2,828 |
Residential Portfolio | Other residential | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 456 | 240 |
Residential Portfolio | Other residential | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 151 | 135 |
Residential Portfolio | Other residential | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Residential Portfolio | Other residential | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 607 | 375 |
Residential Portfolio | Other residential | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 62,296 | 81,739 |
Consumer Portfolio | Consumer | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 110 | 262 |
Total | 106,008 | 80,642 |
Consumer Portfolio | Consumer | Performing | ||
Aging Status of Recorded Investment | ||
Total | 105,800 | 80,339 |
Consumer Portfolio | Consumer | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 110 | 262 |
Total | 208 | 303 |
Consumer Portfolio | Consumer | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 127 | 325 |
Consumer Portfolio | Consumer | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 20 | 57 |
Consumer Portfolio | Consumer | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 0 |
Consumer Portfolio | Consumer | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 147 | 382 |
Consumer Portfolio | Consumer | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 105,751 | 79,998 |
Consumer Portfolio | Consumer other | ||
Aging Status of Recorded Investment | ||
Total | 896,597 | 785,460 |
Consumer Portfolio | Consumer other | Performing | ||
Aging Status of Recorded Investment | ||
Total | 896,596 | 785,460 |
Consumer Portfolio | Consumer other | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 0 | 0 |
Total | 1 | 0 |
Consumer Portfolio | Consumer other | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 4,423 | 4,334 |
Consumer Portfolio | Consumer other | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 2,358 | 2,874 |
Consumer Portfolio | Consumer other | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 1 | 0 |
Consumer Portfolio | Consumer other | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 6,782 | 7,208 |
Consumer Portfolio | Consumer other | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 889,815 | 778,252 |
Finance Leases Portfolio | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 1,510 | 1,965 |
Total | 423,280 | 410,064 |
Finance Leases Portfolio | Performing | ||
Aging Status of Recorded Investment | ||
Total | 420,376 | 407,454 |
Finance Leases Portfolio | Nonperforming | ||
Aging Status of Recorded Investment | ||
Nonaccrual loans | 1,510 | 1,965 |
Total | 2,904 | 2,610 |
Finance Leases Portfolio | 30-59 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 1,253 | 4,539 |
Finance Leases Portfolio | 60-89 days past due | Performing | ||
Aging Status of Recorded Investment | ||
Total | 245 | 545 |
Finance Leases Portfolio | Past due 90 days or more | Performing | ||
Aging Status of Recorded Investment | ||
Total | 0 | 645 |
Finance Leases Portfolio | Total past due loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | 1,498 | 5,729 |
Finance Leases Portfolio | Current loans | Performing | ||
Aging Status of Recorded Investment | ||
Total | $ 420,272 | $ 402,370 |
LOANS - TDRs by portfolio (Deta
LOANS - TDRs by portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | $ 7,012 | $ 2,901 |
Non-accrual | 5,749 | 9,524 |
Total | 12,761 | 12,425 |
Commercial Portfolio | Commercial | ||
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | 833 | 967 |
Non-accrual | 1,422 | 558 |
Total | 2,255 | 1,525 |
Commercial Portfolio | Commercial Real Estate | ||
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | 1,522 | 866 |
Non-accrual | 3,302 | 4,314 |
Total | 4,824 | 5,180 |
Commercial Portfolio | Construction and land development | ||
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | 37 | 39 |
Non-accrual | 0 | 909 |
Total | 37 | 948 |
Residential Portfolio | Residential Real Estate Loans | ||
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | 3,128 | 988 |
Non-accrual | 784 | 3,705 |
Total | 3,912 | 4,693 |
Consumer Portfolio | Consumer | ||
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | 98 | 41 |
Non-accrual | 0 | 0 |
Total | 98 | 41 |
Finance Leases Portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
Accruing | 1,394 | 0 |
Non-accrual | 241 | 38 |
Total | $ 1,635 | $ 38 |
LOANS - TDRs by portfolio - res
LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Troubled debt restructurings: | |||
Number of loans | loan | 45 | 37 | 37 |
Pre-modification outstanding balance | $ 6,302 | $ 5,164 | $ 3,897 |
Post-modification outstanding balance | $ 5,954 | $ 4,455 | $ 3,140 |
Commercial Portfolio | Commercial | |||
Troubled debt restructurings: | |||
Number of loans | loan | 16 | 4 | 1 |
Pre-modification outstanding balance | $ 2,294 | $ 989 | $ 249 |
Post-modification outstanding balance | $ 2,178 | $ 967 | $ 249 |
Commercial Portfolio | Commercial Real Estate | |||
Troubled debt restructurings: | |||
Number of loans | loan | 3 | 4 | 3 |
Pre-modification outstanding balance | $ 1,639 | $ 797 | $ 1,924 |
Post-modification outstanding balance | $ 1,539 | $ 383 | $ 1,322 |
Commercial Portfolio | Construction and land development | |||
Troubled debt restructurings: | |||
Number of loans | loan | 1 | 3 | 2 |
Pre-modification outstanding balance | $ 49 | $ 1,010 | $ 221 |
Post-modification outstanding balance | $ 0 | $ 900 | $ 167 |
Residential Portfolio | Residential Real Estate Loans | |||
Troubled debt restructurings: | |||
Number of loans | loan | 10 | 22 | 25 |
Pre-modification outstanding balance | $ 551 | $ 2,334 | $ 1,422 |
Post-modification outstanding balance | $ 513 | $ 2,172 | $ 1,322 |
Consumer Portfolio | Consumer | |||
Troubled debt restructurings: | |||
Number of loans | loan | 6 | 4 | 5 |
Pre-modification outstanding balance | $ 134 | $ 34 | $ 26 |
Post-modification outstanding balance | $ 89 | $ 33 | $ 25 |
Finance Leases Portfolio | |||
Troubled debt restructurings: | |||
Number of loans | loan | 9 | 0 | 1 |
Pre-modification outstanding balance | $ 1,635 | $ 0 | $ 55 |
Post-modification outstanding balance | $ 1,635 | $ 0 | $ 55 |
LOANS - Risk category (Details)
LOANS - Risk category (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Risk category | ||
Total | $ 5,224,801 | $ 5,103,331 |
Commercial Portfolio | ||
Risk category | ||
2021 | 1,139,283 | 864,623 |
2020 | 583,612 | 594,318 |
2019 | 422,700 | 267,384 |
2018 | 182,086 | 261,835 |
2017 | 155,099 | 268,309 |
Prior | 419,981 | 453,602 |
Revolving Loans | 558,004 | 674,214 |
Total | 3,460,765 | 3,384,285 |
Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
2021 | 1,124,410 | 839,483 |
2020 | 569,511 | 527,458 |
2019 | 358,408 | 225,100 |
2018 | 145,165 | 228,072 |
2017 | 125,419 | 201,919 |
Prior | 358,892 | 353,773 |
Revolving Loans | 536,151 | 634,529 |
Total | 3,217,956 | 3,010,334 |
Commercial Portfolio | Special mention | ||
Risk category | ||
2021 | 362 | 7,747 |
2020 | 8,868 | 24,964 |
2019 | 31,488 | 21,239 |
2018 | 12,722 | 8,423 |
2017 | 13,953 | 20,677 |
Prior | 7,589 | 28,093 |
Revolving Loans | 4,801 | 17,315 |
Total | 79,783 | 128,458 |
Commercial Portfolio | Substandard | ||
Risk category | ||
2021 | 12,815 | 15,973 |
2020 | 3,728 | 39,114 |
2019 | 21,797 | 19,493 |
2018 | 23,197 | 24,163 |
2017 | 15,218 | 34,161 |
Prior | 44,169 | 55,622 |
Revolving Loans | 11,277 | 20,688 |
Total | 132,201 | 209,214 |
Commercial Portfolio | Substandard – nonaccrual | ||
Risk category | ||
2021 | 231 | 500 |
2020 | 1,468 | 2,782 |
2019 | 11,007 | 1,552 |
2018 | 1,002 | 1,177 |
2017 | 509 | 11,552 |
Prior | 9,167 | 16,114 |
Revolving Loans | 5,775 | 1,682 |
Total | 29,159 | 35,359 |
Commercial Portfolio | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Not graded | ||
Risk category | ||
2021 | 1,465 | 920 |
2020 | 37 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 164 | 0 |
Revolving Loans | 0 | 0 |
Total | 1,666 | 920 |
Commercial Portfolio | Commercial | ||
Risk category | ||
2021 | 109,108 | 118,582 |
2020 | 78,500 | 110,100 |
2019 | 53,202 | 42,445 |
2018 | 28,244 | 39,522 |
2017 | 27,713 | 27,395 |
Prior | 40,663 | 57,793 |
Revolving Loans | 433,240 | 541,545 |
Total | 770,670 | 937,382 |
Commercial Portfolio | Commercial | Acceptable credit quality | ||
Risk category | ||
2021 | 108,490 | 117,792 |
2020 | 78,071 | 107,915 |
2019 | 50,458 | 35,649 |
2018 | 20,045 | 34,753 |
2017 | 27,405 | 22,025 |
Prior | 35,856 | 51,593 |
Revolving Loans | 417,920 | 517,929 |
Total | 738,245 | 887,656 |
Commercial Portfolio | Commercial | Special mention | ||
Risk category | ||
2021 | 186 | 244 |
2020 | 57 | 201 |
2019 | 198 | 4,897 |
2018 | 6,154 | 3,729 |
2017 | 2 | 4,968 |
Prior | 316 | 881 |
Revolving Loans | 1,517 | 7,721 |
Total | 8,430 | 22,641 |
Commercial Portfolio | Commercial | Substandard | ||
Risk category | ||
2021 | 380 | 544 |
2020 | 372 | 1,953 |
2019 | 1,934 | 1,259 |
2018 | 1,868 | 104 |
2017 | 64 | 248 |
Prior | 4,322 | 4,861 |
Revolving Loans | 8,099 | 14,618 |
Total | 17,039 | 23,587 |
Commercial Portfolio | Commercial | Substandard – nonaccrual | ||
Risk category | ||
2021 | 52 | 2 |
2020 | 0 | 31 |
2019 | 612 | 640 |
2018 | 177 | 936 |
2017 | 242 | 154 |
Prior | 169 | 458 |
Revolving Loans | 5,704 | 1,277 |
Total | 6,956 | 3,498 |
Commercial Portfolio | Commercial | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Commercial | Not graded | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Commercial other | ||
Risk category | ||
2021 | 264,980 | 418,885 |
2020 | 169,413 | 170,167 |
2019 | 115,715 | 58,372 |
2018 | 34,672 | 773 |
2017 | 303 | 398 |
Prior | 341 | 677 |
Revolving Loans | 94,094 | 98,921 |
Total | 679,518 | 748,193 |
Commercial Portfolio | Commercial other | Acceptable credit quality | ||
Risk category | ||
2021 | 264,282 | 416,306 |
2020 | 167,326 | 157,232 |
2019 | 101,083 | 52,843 |
2018 | 29,981 | 739 |
2017 | 303 | 303 |
Prior | 341 | 677 |
Revolving Loans | 88,198 | 88,250 |
Total | 651,514 | 716,350 |
Commercial Portfolio | Commercial other | Special mention | ||
Risk category | ||
2021 | 0 | 1,871 |
2020 | 1,929 | 10,691 |
2019 | 10,676 | 3,810 |
2018 | 3,966 | 31 |
2017 | 0 | 79 |
Prior | 0 | 0 |
Revolving Loans | 3,252 | 5,315 |
Total | 19,823 | 21,797 |
Commercial Portfolio | Commercial other | Substandard | ||
Risk category | ||
2021 | 688 | 255 |
2020 | 0 | 260 |
2019 | 62 | 1,078 |
2018 | 341 | 3 |
2017 | 0 | 12 |
Prior | 0 | 0 |
Revolving Loans | 2,623 | 5,351 |
Total | 3,714 | 6,959 |
Commercial Portfolio | Commercial other | Substandard – nonaccrual | ||
Risk category | ||
2021 | 10 | 0 |
2020 | 158 | 1,984 |
2019 | 3,894 | 641 |
2018 | 384 | 0 |
2017 | 0 | 4 |
Prior | 0 | 0 |
Revolving Loans | 21 | 5 |
Total | 4,467 | 2,634 |
Commercial Portfolio | Commercial other | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Commercial other | Not graded | ||
Risk category | ||
2021 | 0 | 453 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 453 |
Commercial Portfolio | Commercial real estate non-owner occupied | ||
Risk category | ||
2021 | 447,874 | 179,393 |
2020 | 162,529 | 135,340 |
2019 | 163,715 | 80,580 |
2018 | 43,392 | 115,415 |
2017 | 70,970 | 131,922 |
Prior | 211,345 | 219,024 |
Revolving Loans | 5,508 | 9,777 |
Total | 1,105,333 | 871,451 |
Commercial Portfolio | Commercial real estate non-owner occupied | Acceptable credit quality | ||
Risk category | ||
2021 | 441,483 | 168,788 |
2020 | 154,379 | 109,602 |
2019 | 134,507 | 63,435 |
2018 | 20,524 | 91,763 |
2017 | 55,207 | 97,293 |
Prior | 182,465 | 156,958 |
Revolving Loans | 5,258 | 5,248 |
Total | 993,823 | 693,087 |
Commercial Portfolio | Commercial real estate non-owner occupied | Special mention | ||
Risk category | ||
2021 | 26 | 3,011 |
2020 | 6,341 | 9,107 |
2019 | 14,177 | 3,231 |
2018 | 2,296 | 483 |
2017 | 711 | 14,294 |
Prior | 2,272 | 17,816 |
Revolving Loans | 0 | 4,279 |
Total | 25,823 | 52,221 |
Commercial Portfolio | Commercial real estate non-owner occupied | Substandard | ||
Risk category | ||
2021 | 6,196 | 7,469 |
2020 | 817 | 16,306 |
2019 | 8,825 | 13,813 |
2018 | 20,572 | 23,169 |
2017 | 14,857 | 16,897 |
Prior | 22,344 | 38,907 |
Revolving Loans | 250 | 250 |
Total | 73,861 | 116,811 |
Commercial Portfolio | Commercial real estate non-owner occupied | Substandard – nonaccrual | ||
Risk category | ||
2021 | 169 | 125 |
2020 | 992 | 325 |
2019 | 6,206 | 101 |
2018 | 0 | 0 |
2017 | 195 | 3,438 |
Prior | 4,264 | 5,343 |
Revolving Loans | 0 | 0 |
Total | 11,826 | 9,332 |
Commercial Portfolio | Commercial real estate non-owner occupied | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Commercial real estate non-owner occupied | Not graded | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Commercial real estate owner occupied | ||
Risk category | ||
2021 | 145,426 | 75,021 |
2020 | 70,884 | 59,748 |
2019 | 58,313 | 39,889 |
2018 | 36,676 | 60,669 |
2017 | 44,039 | 70,004 |
Prior | 112,097 | 113,146 |
Revolving Loans | 2,223 | 4,780 |
Total | 469,658 | 423,257 |
Commercial Portfolio | Commercial real estate owner occupied | Acceptable credit quality | ||
Risk category | ||
2021 | 141,084 | 68,688 |
2020 | 69,415 | 55,502 |
2019 | 47,187 | 38,471 |
2018 | 35,974 | 55,526 |
2017 | 30,583 | 63,105 |
Prior | 98,442 | 91,986 |
Revolving Loans | 1,886 | 4,066 |
Total | 424,571 | 377,344 |
Commercial Portfolio | Commercial real estate owner occupied | Special mention | ||
Risk category | ||
2021 | 150 | 1,882 |
2020 | 24 | 3,578 |
2019 | 187 | 225 |
2018 | 161 | 4,142 |
2017 | 13,087 | 1,038 |
Prior | 4,540 | 7,289 |
Revolving Loans | 32 | 0 |
Total | 18,181 | 18,154 |
Commercial Portfolio | Commercial real estate owner occupied | Substandard | ||
Risk category | ||
2021 | 4,192 | 4,078 |
2020 | 1,127 | 468 |
2019 | 10,810 | 1,023 |
2018 | 205 | 760 |
2017 | 297 | 5,861 |
Prior | 6,466 | 8,430 |
Revolving Loans | 305 | 314 |
Total | 23,402 | 20,934 |
Commercial Portfolio | Commercial real estate owner occupied | Substandard – nonaccrual | ||
Risk category | ||
2021 | 0 | 373 |
2020 | 318 | 200 |
2019 | 129 | 170 |
2018 | 336 | 241 |
2017 | 72 | 0 |
Prior | 2,649 | 5,441 |
Revolving Loans | 0 | 400 |
Total | 3,504 | 6,825 |
Commercial Portfolio | Commercial real estate owner occupied | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Commercial real estate owner occupied | Not graded | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Multi-family | ||
Risk category | ||
2021 | 89,317 | 13,330 |
2020 | 20,531 | 17,866 |
2019 | 2,096 | 29,164 |
2018 | 25,450 | 32,934 |
2017 | 1,414 | 28,744 |
Prior | 30,826 | 28,215 |
Revolving Loans | 2,241 | 1,281 |
Total | 171,875 | 151,534 |
Commercial Portfolio | Multi-family | Acceptable credit quality | ||
Risk category | ||
2021 | 88,329 | 12,865 |
2020 | 20,080 | 6,921 |
2019 | 1,973 | 19,204 |
2018 | 25,450 | 32,934 |
2017 | 1,414 | 10,674 |
Prior | 18,642 | 24,375 |
Revolving Loans | 2,241 | 1,281 |
Total | 158,129 | 108,254 |
Commercial Portfolio | Multi-family | Special mention | ||
Risk category | ||
2021 | 0 | 465 |
2020 | 451 | 0 |
2019 | 0 | 8,442 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 1,323 |
Revolving Loans | 0 | 0 |
Total | 451 | 10,230 |
Commercial Portfolio | Multi-family | Substandard | ||
Risk category | ||
2021 | 988 | 0 |
2020 | 0 | 10,945 |
2019 | 0 | 1,518 |
2018 | 0 | 0 |
2017 | 0 | 10,266 |
Prior | 10,139 | 75 |
Revolving Loans | 0 | 0 |
Total | 11,127 | 22,804 |
Commercial Portfolio | Multi-family | Substandard – nonaccrual | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 123 | 0 |
2018 | 0 | 0 |
2017 | 0 | 7,804 |
Prior | 2,045 | 2,442 |
Revolving Loans | 0 | 0 |
Total | 2,168 | 10,246 |
Commercial Portfolio | Multi-family | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Multi-family | Not graded | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Farmland | ||
Risk category | ||
2021 | 16,060 | 21,071 |
2020 | 15,108 | 8,540 |
2019 | 5,333 | 4,855 |
2018 | 3,623 | 8,968 |
2017 | 8,149 | 7,188 |
Prior | 20,443 | 27,140 |
Revolving Loans | 1,246 | 1,969 |
Total | 69,962 | 79,731 |
Commercial Portfolio | Farmland | Acceptable credit quality | ||
Risk category | ||
2021 | 15,689 | 18,556 |
2020 | 14,966 | 6,846 |
2019 | 3,931 | 3,873 |
2018 | 3,162 | 8,803 |
2017 | 7,996 | 6,013 |
Prior | 19,305 | 23,921 |
Revolving Loans | 1,196 | 1,814 |
Total | 66,245 | 69,826 |
Commercial Portfolio | Farmland | Special mention | ||
Risk category | ||
2021 | 0 | 274 |
2020 | 66 | 1,387 |
2019 | 1,236 | 180 |
2018 | 145 | 38 |
2017 | 153 | 298 |
Prior | 240 | 784 |
Revolving Loans | 0 | 0 |
Total | 1,840 | 2,961 |
Commercial Portfolio | Farmland | Substandard | ||
Risk category | ||
2021 | 371 | 2,241 |
2020 | 76 | 307 |
2019 | 166 | 802 |
2018 | 211 | 127 |
2017 | 0 | 877 |
Prior | 898 | 2,435 |
Revolving Loans | 0 | 155 |
Total | 1,722 | 6,944 |
Commercial Portfolio | Farmland | Substandard – nonaccrual | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 105 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 50 | 0 |
Total | 155 | 0 |
Commercial Portfolio | Farmland | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Farmland | Not graded | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Construction and land development | ||
Risk category | ||
2021 | 66,518 | 38,341 |
2020 | 66,647 | 92,557 |
2019 | 24,326 | 12,079 |
2018 | 10,029 | 3,554 |
2017 | 2,511 | 2,658 |
Prior | 4,266 | 7,607 |
Revolving Loans | 19,452 | 15,941 |
Total | 193,749 | 172,737 |
Commercial Portfolio | Construction and land development | Acceptable credit quality | ||
Risk category | ||
2021 | 65,053 | 36,488 |
2020 | 65,274 | 83,440 |
2019 | 19,269 | 11,625 |
2018 | 10,029 | 3,554 |
2017 | 2,511 | 2,506 |
Prior | 3,841 | 4,263 |
Revolving Loans | 19,452 | 15,941 |
Total | 185,429 | 157,817 |
Commercial Portfolio | Construction and land development | Special mention | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 5,014 | 454 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 221 | 0 |
Revolving Loans | 0 | 0 |
Total | 5,235 | 454 |
Commercial Portfolio | Construction and land development | Substandard | ||
Risk category | ||
2021 | 0 | 1,386 |
2020 | 1,336 | 8,875 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 914 |
Revolving Loans | 0 | 0 |
Total | 1,336 | 11,175 |
Commercial Portfolio | Construction and land development | Substandard – nonaccrual | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 242 |
2019 | 43 | 0 |
2018 | 0 | 0 |
2017 | 0 | 152 |
Prior | 40 | 2,430 |
Revolving Loans | 0 | 0 |
Total | 83 | 2,824 |
Commercial Portfolio | Construction and land development | Doubtful | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Commercial Portfolio | Construction and land development | Not graded | ||
Risk category | ||
2021 | 1,465 | 467 |
2020 | 37 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 164 | 0 |
Revolving Loans | 0 | 0 |
Total | 1,666 | 467 |
Residential Portfolio | Residential first lien | ||
Risk category | ||
2021 | 38,508 | 32,322 |
2020 | 32,028 | 27,267 |
2019 | 24,484 | 50,113 |
2018 | 31,622 | 100,591 |
2017 | 49,040 | 82,555 |
Prior | 97,842 | 65,076 |
Revolving Loans | 888 | 405 |
Total | 274,412 | 358,329 |
Residential Portfolio | Residential first lien | Performing | ||
Risk category | ||
2021 | 38,508 | 32,322 |
2020 | 31,920 | 27,071 |
2019 | 24,311 | 49,039 |
2018 | 30,842 | 99,658 |
2017 | 48,276 | 81,525 |
Prior | 93,462 | 58,107 |
Revolving Loans | 888 | 405 |
Total | 268,207 | 348,127 |
Residential Portfolio | Residential first lien | Nonperforming | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 108 | 196 |
2019 | 173 | 1,074 |
2018 | 780 | 933 |
2017 | 764 | 1,030 |
Prior | 4,380 | 6,969 |
Revolving Loans | 0 | 0 |
Total | 6,205 | 10,202 |
Residential Portfolio | Other residential | ||
Risk category | ||
2021 | 888 | 975 |
2020 | 679 | 2,443 |
2019 | 1,530 | 3,302 |
2018 | 1,966 | 2,237 |
2017 | 1,339 | 1,355 |
Prior | 1,659 | 1,990 |
Revolving Loans | 55,678 | 72,249 |
Total | 63,739 | 84,551 |
Residential Portfolio | Other residential | Performing | ||
Risk category | ||
2021 | 888 | 975 |
2020 | 679 | 2,430 |
2019 | 1,520 | 3,281 |
2018 | 1,950 | 2,091 |
2017 | 1,211 | 1,348 |
Prior | 1,559 | 1,825 |
Revolving Loans | 54,225 | 69,773 |
Total | 62,032 | 81,723 |
Residential Portfolio | Other residential | Nonperforming | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 13 |
2019 | 10 | 21 |
2018 | 16 | 146 |
2017 | 128 | 7 |
Prior | 100 | 165 |
Revolving Loans | 1,453 | 2,476 |
Total | 1,707 | 2,828 |
Consumer Portfolio | Consumer | ||
Risk category | ||
2021 | 66,004 | 28,480 |
2020 | 14,960 | 14,090 |
2019 | 7,877 | 16,749 |
2018 | 8,742 | 8,818 |
2017 | 3,049 | 5,131 |
Prior | 2,653 | 3,897 |
Revolving Loans | 2,723 | 3,477 |
Total | 106,008 | 80,642 |
Consumer Portfolio | Consumer | Performing | ||
Risk category | ||
2021 | 65,915 | 28,449 |
2020 | 14,955 | 14,084 |
2019 | 7,874 | 16,692 |
2018 | 8,728 | 8,737 |
2017 | 3,025 | 5,067 |
Prior | 2,582 | 3,834 |
Revolving Loans | 2,721 | 3,476 |
Total | 105,800 | 80,339 |
Consumer Portfolio | Consumer | Nonperforming | ||
Risk category | ||
2021 | 89 | 31 |
2020 | 5 | 6 |
2019 | 3 | 57 |
2018 | 14 | 81 |
2017 | 24 | 64 |
Prior | 71 | 63 |
Revolving Loans | 2 | 1 |
Total | 208 | 303 |
Consumer Portfolio | Consumer other | ||
Risk category | ||
2021 | 474,385 | 614,764 |
2020 | 323,437 | 117,054 |
2019 | 63,463 | 21,394 |
2018 | 12,635 | 6,514 |
2017 | 3,888 | 6,096 |
Prior | 5,447 | 2,480 |
Revolving Loans | 13,342 | 17,158 |
Total | 896,597 | 785,460 |
Consumer Portfolio | Consumer other | Performing | ||
Risk category | ||
2021 | 474,385 | 614,764 |
2020 | 323,437 | 117,054 |
2019 | 63,463 | 21,394 |
2018 | 12,635 | 6,514 |
2017 | 3,888 | 6,096 |
Prior | 5,447 | 2,480 |
Revolving Loans | 13,341 | 17,158 |
Total | 896,596 | 785,460 |
Consumer Portfolio | Consumer other | Nonperforming | ||
Risk category | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 1 | 0 |
Total | 1 | 0 |
Finance Leases Portfolio | ||
Risk category | ||
2021 | 154,803 | 177,536 |
2020 | 125,332 | 125,803 |
2019 | 87,403 | 71,139 |
2018 | 44,548 | 21,647 |
2017 | 9,172 | 12,617 |
Prior | 2,022 | 1,322 |
Revolving Loans | 0 | 0 |
Total | 423,280 | 410,064 |
Finance Leases Portfolio | Performing | ||
Risk category | ||
2021 | 154,803 | 177,068 |
2020 | 124,575 | 125,611 |
2019 | 86,402 | 70,059 |
2018 | 43,536 | 21,047 |
2017 | 9,077 | 12,410 |
Prior | 1,983 | 1,259 |
Revolving Loans | 0 | 0 |
Total | 420,376 | 407,454 |
Finance Leases Portfolio | Nonperforming | ||
Risk category | ||
2021 | 0 | 468 |
2020 | 757 | 192 |
2019 | 1,001 | 1,080 |
2018 | 1,012 | 600 |
2017 | 95 | 207 |
Prior | 39 | 63 |
Revolving Loans | 0 | 0 |
Total | 2,904 | 2,610 |
Loan Portfolios, Excluding Commercial | ||
Risk category | ||
2021 | 734,588 | 854,077 |
2020 | 496,436 | 286,657 |
2019 | 184,757 | 162,697 |
2018 | 99,513 | 139,807 |
2017 | 66,488 | 107,754 |
Prior | 109,623 | 74,765 |
Revolving Loans | 72,631 | 93,289 |
Total | 1,764,036 | 1,719,046 |
Loan Portfolios, Excluding Commercial | Performing | ||
Risk category | ||
2021 | 734,499 | 853,578 |
2020 | 495,566 | 286,250 |
2019 | 183,570 | 160,465 |
2018 | 97,691 | 138,047 |
2017 | 65,477 | 106,446 |
Prior | 105,033 | 67,505 |
Revolving Loans | 71,175 | 90,812 |
Total | 1,753,011 | 1,703,103 |
Loan Portfolios, Excluding Commercial | Nonperforming | ||
Risk category | ||
2021 | 89 | 499 |
2020 | 870 | 407 |
2019 | 1,187 | 2,232 |
2018 | 1,822 | 1,760 |
2017 | 1,011 | 1,308 |
Prior | 4,590 | 7,260 |
Revolving Loans | 1,456 | 2,477 |
Total | $ 11,025 | $ 15,943 |
PREMISES AND EQUIPMENT, NET - S
PREMISES AND EQUIPMENT, NET - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | $ 116,384 | $ 115,292 |
Accumulated depreciation | (45,592) | (41,168) |
Premises and equipment, net | 70,792 | 74,124 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | 15,696 | 16,158 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | 67,143 | 65,932 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | $ 33,545 | $ 33,202 |
PREMISES AND EQUIPMENT, NET - N
PREMISES AND EQUIPMENT, NET - Narrative (Details) ft² in Thousands, $ in Thousands | 4 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020USD ($)ft²branch | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)ft²branch | Dec. 31, 2019USD ($)facility | Mar. 31, 2020facility | Sep. 30, 2019facility | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation on premises and equipment | $ 5,506 | $ 6,942 | $ 6,583 | |||
Number of branches closed | branch | 13 | 13 | ||||
Percentage of branch network closed | 20.00% | 20.00% | ||||
Area of vacated office space | ft² | 23 | 23 | ||||
Impairment related to facilities optimization | $ 12,700 | 0 | $ 12,847 | $ 3,577 | ||
Number of banking facilities to be closed to Homestar | facility | 2 | 1 | ||||
Number of banking facilities to be consolidated to Homestar banking facilities | facility | 2 | |||||
Number of banking facilities to be consolidated to footprint | facility | 3 | |||||
Asset impairment | $ 3,200 | |||||
Assets held for sale | 4,200 | $ 2,300 | $ 4,200 | |||
Right-of-use Assets | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment related to facilities optimization | 2,400 | |||||
Other | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment related to facilities optimization | $ 800 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | |||
Operating lease right-of-use assets | $ 8,428 | $ 9,177 | |
Operating lease liabilities | $ 10,714 | 11,958 | |
Lease impairment | 2,400 | ||
Renewal term of lease | 10 years | ||
Net rent expense under operating leases | $ 1,400 | $ 2,300 | $ 2,800 |
Minimum | |||
LEASES | |||
Remaining lease terms | 6 months | ||
Maximum | |||
LEASES | |||
Remaining lease terms | 11 years |
LEASES - Information Related to
LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,080 | $ 2,943 |
Operating cash flows related to leases | 2,566 | 3,280 |
Right-of-use assets obtained in exchange for lease obligations | 1,118 | 1,616 |
Right-of-use assets derecognized due to terminations or impairment | $ (210) | $ (4,467) |
Weighted average remaining lease term | 7 years 6 months 29 days | 8 years 1 month 6 days |
Weighted average discount rate | 2.85% | 2.90% |
LEASES - Projected Minimum Rent
LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Lease Payments | ||
2022 | $ 2,180 | |
2023 | 2,094 | |
2024 | 1,799 | |
2025 | 894 | |
2026 | 763 | |
Thereafter | 4,251 | |
Total future minimum lease payments | 11,981 | |
Less imputed interest | (1,267) | |
Total operating lease liabilities | $ 10,714 | $ 11,958 |
LOAN SERVICING RIGHTS - Loan Se
LOAN SERVICING RIGHTS - Loan Servicing Rights and Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | $ 3,003,192 | $ 3,930,783 |
Carrying Value | 28,865 | 40,154 |
Commercial FHA Mortgage Loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | 2,650,531 | 3,499,258 |
Carrying Value | 27,386 | 38,322 |
SBA servicing rights | ||
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | 50,043 | 49,223 |
Carrying Value | 774 | 954 |
Residential mortgage loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | 302,618 | 382,302 |
Carrying Value | $ 705 | $ 878 |
LOAN SERVICING RIGHTS - Changes
LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA Mortgage Loans - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loan servicing rights: | ||||
Balance, beginning of period | $ 38,322 | $ 57,637 | $ 56,252 | |
Originated servicing | 0 | 1,128 | 4,124 | |
Amortization | (2,965) | (3,162) | (2,739) | |
Refinancing fee received from third party | (439) | 0 | 0 | |
Permanent impairment | (7,532) | (17,281) | 0 | |
Balance, end of period | 27,386 | 38,322 | 57,637 | |
Valuation allowances: | ||||
Balance, beginning of period | 0 | 4,944 | 2,805 | |
Additions | 0 | 12,337 | 2,698 | |
Reductions | 0 | (17,281) | (559) | |
Balance, end of period | 0 | 0 | 4,944 | |
Loan servicing rights, net | 27,386 | 38,322 | 52,693 | |
Fair value | $ 28,368 | $ 38,322 | $ 52,693 | $ 53,447 |
LOAN SERVICING RIGHTS - Narrati
LOAN SERVICING RIGHTS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | ||
Prepayment rate | 8.24% | 8.18% |
Discount rate | 11.87% | 11.48% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | Jul. 17, 2019 | Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-lived intangible assets | |||||
Goodwill | $ 161,904,000 | $ 161,904,000 | |||
Goodwill impairment loss | $ 0 | ||||
Impairment of intangible assets | 0 | $ 0 | |||
Amortization of intangible assets | $ 5,855,000 | $ 6,504,000 | $ 7,090,000 | ||
ATG Trust | |||||
Finite-lived intangible assets | |||||
Other intangible assets amortized over a period | 6 years | ||||
ATG Trust | Customer relationship intangibles | |||||
Finite-lived intangible assets | |||||
Total intangible assets | $ 1,847,000 | ||||
Other intangible assets amortized over a period | 6 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying amount of goodwill | ||
Goodwill | $ 161,904 | $ 161,904 |
Finite-lived intangible assets | ||
Gross Carrying Amount | 72,930 | 71,083 |
Accumulated Amortization | (48,556) | (42,701) |
Total | 24,374 | 28,382 |
Core deposit intangibles | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 57,012 | 57,012 |
Accumulated Amortization | (40,603) | (36,005) |
Total | 16,409 | 21,007 |
Customer relationship intangibles | ||
Finite-lived intangible assets | ||
Gross Carrying Amount | 15,918 | 14,071 |
Accumulated Amortization | (7,953) | (6,696) |
Total | 7,965 | 7,375 |
Banking | ||
Carrying amount of goodwill | ||
Goodwill | 157,158 | 157,158 |
Wealth management | ||
Carrying amount of goodwill | ||
Goodwill | $ 4,746 | $ 4,746 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 5,208 | |
2023 | 4,433 | |
2024 | 3,717 | |
2025 | 2,966 | |
2026 | 2,450 | |
Thereafter | 5,600 | |
Total | $ 24,374 | $ 28,382 |
DERIVATIVE INSTRUMENTS - Intere
DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notional Amount | $ 126,643 | $ 354,353 |
Fair Value Gain | 410 | 2,217 |
Interest rate lock commitments | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notional Amount | 66,216 | 136,227 |
Fair Value Gain | 410 | 2,217 |
Forward commitments to sell mortgage-backed securities | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notional Amount | 60,427 | 218,126 |
Notional amount, liability derivatives | 18,362 | 33,240 |
Fair Value Gain | 0 | 0 |
Fair value loss, liability derivatives | $ 19 | $ 309 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative disclosures | ||||
Gain on termination of hedged interest rate swap | $ 2,159 | $ 0 | $ 0 | |
Prepayment of FHLB advance | 977,536 | 447,832 | 515,047 | |
Notional Amount | 126,643 | 354,353 | ||
Stockholders' equity | 663,837 | 621,391 | 661,911 | $ 608,525 |
Fees and Commissions, Mortgage Banking and Servicing and Other, Commercial and Residential | ||||
Derivative disclosures | ||||
Gain on termination of hedged interest rate swap | 1,500 | 1,400 | $ 1,100 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Derivative disclosures | ||||
Stockholders' equity | 3,700 | |||
Other assets | Cash Flow Hedging | ||||
Derivative disclosures | ||||
Derivative liability | 5,100 | |||
Future Starting Receive Variable, Pay Fixed Interest Rate Swaps | Cash Flow Hedging | ||||
Derivative disclosures | ||||
Notional Amount | 140,000 | |||
Interest rate swap contracts | ||||
Derivative disclosures | ||||
Notional amount of interest rate swaps | 7,900 | 8,500 | ||
Interest rate swap contracts | Other liabilities | ||||
Derivative disclosures | ||||
Fair value of liability derivatives | 400 | 800 | ||
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedging | ||||
Derivative disclosures | ||||
Gain on termination of hedged interest rate swap | 2,200 | |||
Prepayment of FHLB advance | $ 100,000 | |||
Notional Amount | $ 100,000 | |||
Average remaining life in years | 5 years 3 months 18 days | |||
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedging | Long | ||||
Derivative disclosures | ||||
Weighted average rate | 0.57% | |||
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedging | Short | ||||
Derivative disclosures | ||||
Weighted average rate | 0.22% |
DERIVATIVE INSTRUMENTS - Cash F
DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 354,353 | $ 126,643 |
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 100,000 | |
Average remaining life in years | 5 years 3 months 18 days | |
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedging | Long | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Weighted average rate | 0.57% | |
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedging | Short | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Weighted average rate | 0.22% |
DEPOSITS - Summary of Classific
DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Classification of deposits | ||
Noninterest-bearing demand | $ 2,245,701 | $ 1,469,579 |
Interest-bearing: | ||
Checking | 1,663,021 | 1,568,888 |
Money market | 869,067 | 785,871 |
Savings | 679,115 | 597,966 |
Time | 653,744 | 678,712 |
Total deposits | $ 6,110,648 | $ 5,101,016 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Time deposits $250,000 or more | $ 143.5 | $ 88.3 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Schedule of maturities of time deposits | |
2022 | $ 377,823 |
2023 | 134,092 |
2024 | 82,430 |
2025 | 19,778 |
2026 | 39,597 |
Thereafter | 24 |
Total | $ 653,744 |
SHORT-TERM BORROWINGS - Summary
SHORT-TERM BORROWINGS - Summary of Short-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Outstanding at period-end | $ 76,803 | $ 68,957 |
Average amount outstanding | 68,986 | 60,306 |
Maximum amount outstanding at any month end | $ 77,497 | $ 77,136 |
Weighted average interest rate: | ||
During period | 0.12% | 0.30% |
End of period | 0.13% | 0.12% |
SHORT-TERM BORROWINGS - Narrati
SHORT-TERM BORROWINGS - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-Term Borrowings | ||
Investment securities pledged/collateralized for secured borrowings | $ 78,300,000 | $ 76,500,000 |
Line of credit | 0 | 0 |
Federal funds lines of credit | 45,000,000 | |
Commercial Real Estate Loans | ||
Short-Term Borrowings | ||
Loans pledged as collateral | 64,800,000 | 68,100,000 |
Federal Reserve Discount Window | ||
Short-Term Borrowings | ||
Line of credit | $ 55,900,000 | $ 54,400,000 |
FHLB ADVANCES AND OTHER BORRO_3
FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 310,171 | $ 779,171 |
Midland States Bancorp, Inc | Series G Preferred Stock | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Long term debt | $ 171 | $ 171 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
Preferred stock, shares issued (in shares) | 171 | 171 |
Preferred stock, par value (in USD per share) | $ 1,000 | $ 1,000 |
Midland States Bank | Fixed rate, fixed term maturing through May 2021 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 0 | $ 304,000 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
FHLB advances interest rate | 0.24% | |
Midland States Bank | Putable fixed rate maturing through August 2021 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 210,000 | $ 475,000 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
FHLB advances interest rate | 1.48% | 2.01% |
Midland States Bank | Secured Overnight Financing Rate (SOFR) Rate | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 100,000 | $ 0 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
FHLB advances interest rate | 1.67% |
FHLB ADVANCES AND OTHER BORRO_4
FHLB ADVANCES AND OTHER BORROWINGS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
FHLB ADVANCES AND OTHER BORROWINGS | ||
FHLB advances, collateral for mortgage and home equity line of credit loans | $ 2,100 | $ 1,860 |
FHLB ADVANCES AND OTHER BORRO_5
FHLB ADVANCES AND OTHER BORROWINGS - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2022 | $ 0 | |
2023 | 140,000 | |
2024 | 70,000 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 100,171 | |
Total | $ 310,171 | $ 779,171 |
SUBORDINATED DEBT - Schedule of
SUBORDINATED DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Subordinated Borrowing [Line Items] | ||||
Carrying amount | $ 139,091 | $ 169,795 | ||
6.00% Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Effective interest rate (as a percent) | 4.59% | |||
Fixed interest rate (as a percent) | 6.00% | |||
Face amount | $ 40,300 | $ 31,100 | ||
Carrying amount | $ 0 | $ 31,075 | ||
6.00% Subordinated Debt | LIBOR | ||||
Subordinated Borrowing [Line Items] | ||||
Variable interest rate (as a percent) | 4.35% | 4.35% | ||
6.50% Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate (as a percent) | 6.50% | 6.50% | ||
Face amount | $ 15,000 | $ 550 | ||
Carrying amount | $ 546 | $ 545 | ||
6.25% Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate (as a percent) | 6.25% | |||
Face amount | $ 40,000 | |||
Carrying amount | $ 39,626 | 39,561 | ||
6.25% Subordinated Debt | LIBOR | ||||
Subordinated Borrowing [Line Items] | ||||
Variable interest rate (as a percent) | 4.229% | |||
5.00% Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate (as a percent) | 5.00% | |||
Face amount | $ 72,750 | |||
Carrying amount | $ 72,042 | 71,785 | ||
5.00% Subordinated Debt | Three month SOFR | ||||
Subordinated Borrowing [Line Items] | ||||
Variable interest rate (as a percent) | 3.61% | |||
5.50% Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate (as a percent) | 5.50% | |||
Face amount | $ 27,250 | |||
Carrying amount | $ 26,877 | $ 26,829 | ||
5.50% Subordinated Debt | Three month SOFR | ||||
Subordinated Borrowing [Line Items] | ||||
Variable interest rate (as a percent) | 4.045% |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) $ in Thousands | Sep. 20, 2019USD ($)tranche | Jun. 30, 2015USD ($)tranche | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020 | Jun. 30, 2021USD ($) | Oct. 13, 2017USD ($) |
Subordinated Borrowing [Line Items] | ||||||||
Number of tranches | tranche | 2 | 2 | ||||||
Subordinate debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Debt issuance costs | $ 1,600 | $ 900 | $ 600 | |||||
6.00% Subordinated Debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | $ 40,300 | $ 31,100 | ||||||
Fixed interest rate (as a percent) | 6.00% | |||||||
Duration with fixed interest rate | 5 years | |||||||
Repurchase of debt | $ 7,300 | $ 2,000 | ||||||
Loss on repurchase of debt issuance | $ 200 | 1,400 | ||||||
6.00% Subordinated Debt | LIBOR | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Variable interest rate (as a percent) | 4.35% | 4.35% | ||||||
6.50% Subordinated Debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | $ 15,000 | $ 550 | ||||||
Fixed interest rate (as a percent) | 6.50% | 6.50% | ||||||
6.25% Subordinated Debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | $ 40,000 | |||||||
Fixed interest rate (as a percent) | 6.25% | |||||||
Duration with fixed interest rate | 5 years | |||||||
6.25% Subordinated Debt | LIBOR | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Variable interest rate (as a percent) | 4.229% | |||||||
5.00% Subordinated Debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | $ 72,750 | |||||||
Fixed interest rate (as a percent) | 5.00% | |||||||
Duration with fixed interest rate | 5 years | |||||||
5.00% Subordinated Debt | Three month SOFR | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Variable interest rate (as a percent) | 3.61% | |||||||
5.50% Subordinated Debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | $ 27,250 | |||||||
Fixed interest rate (as a percent) | 5.50% | |||||||
Duration with fixed interest rate | 10 years | |||||||
5.50% Subordinated Debt | Three month SOFR | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Variable interest rate (as a percent) | 4.045% | |||||||
Subordinated Debt40325 Maturing June182025 | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | 40,300 | |||||||
Subordinated Debt15000 Maturing June182025 | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | 15,000 | |||||||
Repurchase of debt | 14,500 | |||||||
Loss on repurchase of debt issuance | $ 400 | |||||||
Private Placement | Subordinate debt | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Face amount | $ 100,000 | $ 55,300 | $ 40,000 |
TRUST PREFERRED DEBENTURES - Su
TRUST PREFERRED DEBENTURES - Summary of Trust Preferred Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2014 | Jun. 05, 2013 | Jun. 06, 2007 | Nov. 30, 2006 | Apr. 30, 2004 | Mar. 26, 2004 | Dec. 19, 2003 | |
TRUST PREFERRED DEBENTURES | |||||||||
Trust preferred debentures | $ 49,374 | $ 48,814 | |||||||
Grant Park Trust | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Book value of subordinated debentures | $ 3,100 | ||||||||
LSHC Trust III | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Book value of subordinated debentures | $ 41,200 | ||||||||
Trust preferred debentures maturing April 23, 2034 | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Trust preferred debentures | $ 10,279 | $ 10,276 | |||||||
Trust preferred debentures maturing April 23, 2034 | Midland Trust | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Interest rate (as a percent) | 2.87% | 2.96% | |||||||
Face amount | $ 10,300 | ||||||||
Trust preferred debentures maturing April 23, 2034 | LIBOR | Midland Trust | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Variable interest rate (as a percent) | 2.75% | ||||||||
Trust preferred debentures maturing January 23, 2034 | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Trust preferred debentures | $ 2,363 | $ 2,314 | |||||||
Trust preferred debentures maturing January 23, 2034 | Grant Park Trust | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Interest rate (as a percent) | 2.98% | 3.06% | |||||||
Face amount | $ 3,093 | $ 3,100 | |||||||
Trust preferred debentures maturing January 23, 2034 | LIBOR | Grant Park Trust | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Variable interest rate (as a percent) | 2.85% | ||||||||
Trust preferred debentures maturing December 31, 2036 | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Trust preferred debentures | $ 14,647 | $ 14,442 | |||||||
Trust preferred debentures maturing December 31, 2036 | LSHC Trust III | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Interest rate (as a percent) | 1.95% | 1.97% | |||||||
Face amount | $ 20,600 | 20,619 | |||||||
Trust preferred debentures maturing December 31, 2036 | LIBOR | LSHC Trust III | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Variable interest rate (as a percent) | 1.75% | ||||||||
Trust preferred debentures maturing September 6, 2037 | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Trust preferred debentures | $ 13,830 | $ 13,621 | |||||||
Trust preferred debentures maturing September 6, 2037 | LSHC Trust IV | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Interest rate (as a percent) | 1.65% | 1.70% | |||||||
Face amount | $ 20,600 | 20,619 | |||||||
Trust preferred debentures maturing September 6, 2037 | LIBOR | LSHC Trust IV | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Variable interest rate (as a percent) | 1.47% | ||||||||
Trust Preferred Debentures Maturing June 17, 2034 | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Trust preferred debentures | $ 8,255 | $ 8,161 | |||||||
Trust Preferred Debentures Maturing June 17, 2034 | Centrue Bank | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Interest rate (as a percent) | 2.87% | 2.88% | |||||||
Face amount | $ 10,310 | ||||||||
Trust Preferred Debentures Maturing June 17, 2034 | LIBOR | Centrue Bank | |||||||||
TRUST PREFERRED DEBENTURES | |||||||||
Variable interest rate (as a percent) | 2.65% |
TRUST PREFERRED DEBENTURES - Na
TRUST PREFERRED DEBENTURES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 09, 2017 | Dec. 31, 2014 | Jun. 05, 2013 | Jun. 06, 2007 | Nov. 30, 2006 | Apr. 30, 2004 | Mar. 26, 2004 | Dec. 19, 2003 |
Centrue | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Liquidation amount per security (in USD per share) | $ 1,000 | |||||||
Book value of subordinated debentures | $ 10,300 | |||||||
Fair value of subordinated debentures | 7,600 | |||||||
Number of preferred securities issued (in shares) | 10,000 | |||||||
Midland Trust | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Pool issued | $ 10,000 | |||||||
Liquidation amount per security (in USD per share) | $ 1,000 | |||||||
Midland Trust | Other assets | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Investment in common stock | $ 300 | |||||||
Midland Trust | Trust preferred debentures maturing April 23, 2034 | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Face amount | $ 10,300 | |||||||
Midland Trust | Trust preferred debentures maturing April 23, 2034 | Centrue | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Book value of subordinated debentures | $ 10,310 | |||||||
Grant Park Trust | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Liquidation amount per security (in USD per share) | $ 1,000 | |||||||
Book value of subordinated debentures | $ 3,100 | |||||||
Fair value of subordinated debentures | $ 1,800 | |||||||
Number of preferred securities issued (in shares) | 3,000 | |||||||
Grant Park Trust | Other assets | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Investment in common stock | $ 100 | |||||||
Grant Park Trust | Trust preferred debentures maturing January 23, 2034 | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Face amount | $ 3,093 | $ 3,100 | ||||||
LSHC Trust III | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Liquidation amount per security (in USD per share) | $ 1,000 | |||||||
Book value of subordinated debentures | $ 41,200 | |||||||
Fair value of subordinated debentures | $ 26,100 | |||||||
Number of preferred securities issued (in shares) | 20,000 | |||||||
LSHC Trust III | Trust preferred debentures maturing December 31, 2036 | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Face amount | $ 20,600 | 20,619 | ||||||
LSHC Trust IV | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Liquidation amount per security (in USD per share) | $ 1,000 | |||||||
Number of preferred securities issued (in shares) | 20,000 | |||||||
LSHC Trust IV | Other assets | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Investment in common stock | $ 1,200 | |||||||
LSHC Trust IV | Trust preferred debentures maturing September 6, 2037 | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Face amount | $ 20,600 | 20,619 | ||||||
Centrue Bank | Other assets | ||||||||
TRUST PREFERRED DEBENTURES | ||||||||
Investment in common stock | $ 300 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal: | |||
Current | $ 10,044 | $ 10,924 | $ 2,318 |
Deferred | 7,926 | (3,852) | 8,287 |
State: | |||
Current | 144 | 1,271 | 1,761 |
Deferred | (319) | 1,134 | 4,321 |
Actual income tax expense | $ 17,795 | $ 9,477 | $ 16,687 |
INCOME TAXES - Statutory federa
INCOME TAXES - Statutory federal rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Expected income taxes | $ 20,814 | $ 6,723 | $ 15,218 |
Less income tax effect of: | |||
Tax exempt interest, net | (2,499) | (2,398) | (2,568) |
State tax, net of federal benefit | 5,465 | 1,900 | 4,805 |
State tax settlement, net of federal expense | (5,614) | 0 | 0 |
Equity-based compensation benefit | (93) | 239 | (484) |
Non-deductible transaction costs | 0 | 0 | 110 |
Disposition of nondeductible goodwill | 0 | 2,287 | 0 |
Valuation allowance | 47 | 10 | 62 |
Other | (325) | 716 | (456) |
Actual income tax expense | $ 17,795 | $ 9,477 | $ 16,687 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Settlement of prior tax issue | $ 6,800,000 | |
Accumulation of prior year's earnings representing tax bad debt deductions | 3,100,000 | $ 3,100,000 |
Operating Loss Carryforwards | 10,113,000 | 11,231,000 |
Unrecognized tax benefits | 0 | 0 |
Interest or penalties relative to unrecognized tax benefits | 0 | 0 |
Valuation allowance | 118,000 | $ 71,000 |
Addition to valuation allowance | 50,000 | |
Federal | ||
Operating Loss Carryforwards | 43,000,000 | |
State | ||
Tax credit carryforward | 1,300,000 | |
State | Illinois | ||
Post-apportioned operating loss carryforward | 14,000,000 | |
State | Missouri | ||
Pre-apportioned operating loss carryforward | $ 43,000,000 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Allowance for credit losses on loans | $ 14,042 | $ 16,622 |
Deferred compensation | 2,177 | 2,152 |
Loans | 1,835 | 2,772 |
Tax credits | 1,067 | 1,047 |
Net operating losses | 10,113 | 11,231 |
Fair value adjustment on investments | 879 | 1,067 |
Premises and equipment | 0 | 433 |
Operating lease liabilities | 2,946 | 3,289 |
Other, net | 3,519 | 3,861 |
Deferred tax assets | 36,578 | 42,474 |
Valuation allowance | (118) | (71) |
Deferred tax assets, net of valuation allowance | 36,460 | 42,403 |
Liabilities: | ||
Premises and equipment | 472 | 0 |
Unrealized gain on securities | 569 | 4,169 |
Mortgage servicing rights | 5,958 | 8,315 |
Fair value adjustment on trust preferred debentures | 4,264 | 4,417 |
Deferred loan costs, net of fees | 3,444 | 3,632 |
Intangible assets | 5,651 | 6,921 |
Software development costs | 1,446 | 1,522 |
Leased equipment | 22,297 | 17,910 |
Operating lease right-of-use assets | 2,318 | 2,524 |
Other, net | 3,619 | 1,315 |
Deferred tax liabilities | 50,038 | 50,725 |
Deferred tax liabilities, net | $ (13,578) | $ (8,322) |
RETIREMENT PLANS - Narrative (D
RETIREMENT PLANS - Narrative (Details) - USD ($) | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2021 |
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer's contribution, discretionary amount | $ 0 | $ 0 | $ 0 | ||
Employer's matching contribution, percentage | 50.00% | ||||
Employer's matching contribution, percentage of employee compensation | 6.00% | ||||
Total expense recorded | $ 1,200,000 | 1,700,000 | $ 1,700,000 | ||
Minimum | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employee's contribution, percentage of gross pay | 1.00% | ||||
Maximum | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employee's contribution, percentage of gross pay | 100.00% | ||||
Pension Plan | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Funded status of the plan (market value of assets divided by funding target) | 141.37% | ||||
Defined benefit plan, minimum required contribution, administrative expense | $ 100,000 | $ 200,000 | |||
Assets transferred | $ 16,600,000 |
RETIREMENT PLANS - Plan Assets
RETIREMENT PLANS - Plan Assets and Liabilities (Details) - Deferred compensation arrangement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance, trust asset | $ 3,657 | $ 0 | $ 0 |
Contributions | 207 | 3,264 | 0 |
Gain on trust assets | 359 | 499 | 0 |
Distributions | (509) | (106) | 0 |
Ending balance, trust asset | 3,714 | 3,657 | 0 |
Defined Benefit Plan, Deferred Compensation Liability [Roll Forward] | |||
Beginning balance, deferred compensation liability | 3,657 | 2,978 | 2,383 |
Deferred compensation | 207 | 350 | 751 |
Expense on deferred compensation liability | 359 | 506 | 8 |
Distributions | (509) | (177) | (164) |
Ending balance, deferred compensation liability | 3,714 | 3,657 | 2,978 |
Deferred Compensation Arrangement with Individual, Recorded Liability [Roll Forward] | |||
Beginning balance, deferred compensation liability | 4,560 | 5,007 | 4,135 |
Deferred compensation | 606 | 586 | 679 |
Expense on deferred compensation liability | 251 | 270 | 236 |
Distributions | (45) | (1,303) | (43) |
Ending balance, deferred compensation liability | $ 5,372 | $ 4,560 | $ 5,007 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 03, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation (in years) | 3 years | |||
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost that has been charged against income | $ 1,900 | $ 2,200 | $ 2,000 | |
Granted during the year (in shares) | 128,049 | 94,998 | ||
Vesting period (in years) | 4 years | |||
Total unrecognized compensation | $ 5,600 | |||
Weighted average grant date fair value for restricted stock awards | $ 25.67 | $ 14.85 | $ 27.67 | |
Stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 0 | 0 | |
Aggregate intrinsic value of options outstanding | $ 1,300 | |||
Aggregate intrinsic value of options exercisable | 1,300 | |||
Total intrinsic value from options exercised | 800 | $ 200 | $ 3,600 | |
Cash received from options exercised | $ 2,200 | $ 700 | $ 5,900 | |
2019 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1,000,000 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted stock awards (Details) - Restricted stock and restricted stock unit awards | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number outstanding | |
Nonvested, beginning of year (in shares) | shares | 233,010 |
Granted during the year (in shares) | shares | 128,049 |
Vested during the year (in shares) | shares | (77,319) |
Forfeited during the year (in shares) | shares | (21,922) |
Nonvested, end of year (in shares) | shares | 261,818 |
Weighted average grant due fair value | |
Nonvested at December 31, 2018 (in dollars per shares) | $ / shares | $ 22.64 |
Granted during the year (in dollars per shares) | $ / shares | 25.67 |
Vested during the year (in dollars per shares) | $ / shares | 24.60 |
Forfeited during the year (in dollars per shares) | $ / shares | 21.66 |
Nonvested at December 31, 2019 (in dollars per shares) | $ / shares | $ 23.62 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock option plan (Detail) - Stock option - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares | |||
Options outstanding, beginning of year (in shares) | 467,489 | 623,122 | |
Options granted (in shares) | 0 | 0 | 0 |
Options exercised (in shares) | (116,147) | (39,500) | |
Options forfeited (in shares) | 0 | (3,268) | |
Options expired (in shares) | (26,548) | (112,865) | |
Options outstanding, end of year (in shares) | 324,794 | 467,489 | 623,122 |
Options exercisable (in shares) | 324,794 | 463,590 | |
Options vested and expected to vest (in shares) | 324,794 | 467,060 | |
Weighted average exercise price | |||
Options outstanding, beginning of year (in dollars per share) | $ 21.40 | $ 20.83 | |
Options granted (in dollars per share) | 0 | 0 | |
Options exercised (in dollars per share) | 19.16 | 17.90 | |
Options forfeited (in dollars per share) | 0 | 28.89 | |
Options expired (in dollars per share) | 27.07 | 19.26 | |
Options outstanding, end of year (in dollars per share) | 21.74 | 21.40 | $ 20.83 |
Options exercisable (in dollars per share) | 21.74 | 21.31 | |
Options vested and expected to vest (in dollars per share) | $ 21.74 | $ 21.39 | |
Options outstanding, end of year (in years) | 3 years 1 month 6 days | 4 years 1 month 6 days | |
Options exercisable (in years) | 3 years 1 month 6 days | 4 years 1 month 6 days | |
Options vested and expected to vest (in years) | 3 years 1 month 6 days | 4 years 1 month 6 days |
SHARE-BASED COMPENSATION - Nonv
SHARE-BASED COMPENSATION - Nonvested stock option (Details) - Stock option - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Nonvested at December 31, 2019 (in shares) | 3,899 | ||
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | (3,899) | ||
Forfeited (in shares) | 0 | ||
Nonvested at December 31, 2020 (in shares) | 0 | 3,899 | |
Weighted average grant date fair value | |||
Nonvested at December 31, 2019 (in dollars per shares) | $ 4.33 | ||
Granted (in dollars per shares) | 0 | ||
Vested (in dollars per shares) | 4.33 | ||
Forfeited (in dollars per shares) | 0 | ||
Nonvested at December 31, 2020 (in dollars per shares) | $ 0 | $ 4.33 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 65,033 | 364,272 | 91,097 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 81,317 | $ 22,537 | $ 55,784 |
Preferred dividends declared | 0 | 0 | (191) |
Preferred stock, premium amortization | 0 | 0 | 145 |
Net income available to common shareholders | 81,317 | 22,537 | 55,738 |
Common shareholder dividends | (24,912) | (24,699) | (23,389) |
Unvested restricted stock award dividends | (260) | (259) | (210) |
Undistributed earnings to unvested restricted stock awards | (564) | 0 | (267) |
Undistributed earnings to common shareholders | 55,581 | (2,421) | 31,872 |
Basic | |||
Distributed earnings to common shareholders | 24,912 | 24,699 | 23,389 |
Undistributed earnings to common shareholders | 55,581 | (2,421) | 31,872 |
Total common shareholders earnings, basic | 80,493 | 22,278 | 55,261 |
Diluted | |||
Distributed earnings to common shareholders | 24,912 | 24,699 | 23,389 |
Undistributed earnings to common shareholders | 55,581 | (2,421) | 31,872 |
Total common shareholders earnings, diluted | 80,493 | 22,278 | 55,261 |
Add back: | |||
Undistributed earnings reallocated from unvested restricted stock awards | 2 | 0 | 2 |
Total common shareholders earnings, diluted | $ 80,495 | $ 22,278 | $ 55,263 |
Weighted average common shares outstanding, basic (in shares) | 22,481,389 | 23,336,881 | 24,288,793 |
Options (in shares) | 65,964 | 9,245 | 204,638 |
Weighted average common shares outstanding, diluted (in shares) | 22,547,353 | 23,346,126 | 24,493,431 |
Basic earnings per common share (in dollars per share) | $ 3.58 | $ 0.95 | $ 2.28 |
Diluted earnings per common share (in dollars per share) | $ 3.57 | $ 0.95 | $ 2.26 |
CAPITAL REQUIREMENTS - Narrativ
CAPITAL REQUIREMENTS - Narrative (Details) | Jan. 01, 2016 | Dec. 31, 2021 | Dec. 31, 2020 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio | 8.50% | 7.00% | |
Minimum capital conservation buffer percentage | 2.50% | ||
Tier 1 capital to risk-weighted assets | 0.0700 | 0.0850 | |
Captial to risk-weighted assets | 0.1050 | 0.1050 | |
Tier 1 capital to adjusted average consolidated assets | 0.0400 | 0.0400 | |
Minimum | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio | 4.50% | ||
Tier 1 capital to risk-weighted assets | 0.060 | ||
Captial to risk-weighted assets | 0.080 | ||
Tier 1 capital to adjusted average consolidated assets | 0.040 |
CAPITAL REQUIREMENTS - Actual a
CAPITAL REQUIREMENTS - Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Capital requirements and restrictions on dividends | ||
Total Capital (to Risk Weighted Assets): Actual Amount | $ 732,177 | $ 710,417 |
Total Capital (to Risk Weighted Assets): Actual Ratio | 0.1219 | 0.1324 |
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount | $ 630,482 | $ 563,610 |
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio | 0.1050 | 0.1050 |
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount | $ 550,195 | $ 429,092 |
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio | 9.16% | 7.99% |
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount | $ 510,390 | $ 375,740 |
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio | 8.50% | 7.00% |
Tier I Capital (to Risk Weighted Assets): Actual Amount | $ 485,244 | $ 494,043 |
Tier I Capital (to Risk Weighted Assets): Actual Ratio | 0.0808 | 0.0920 |
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount | $ 420,321 | $ 456,256 |
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio | 0.0700 | 0.0850 |
Tier I Capital (to Average Assets): Actual Amount | $ 550,195 | $ 494,043 |
Tier I Capital (to Average Assets): Actual Ratio | 0.0775 | 0.0750 |
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount | $ 283,941 | $ 263,651 |
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio | 0.0400 | 0.0400 |
Midland States Bank | ||
Capital requirements and restrictions on dividends | ||
Total Capital (to Risk Weighted Assets): Actual Amount | $ 672,500 | $ 631,585 |
Total Capital (to Risk Weighted Assets): Actual Ratio | 0.1121 | 0.1177 |
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount | $ 629,911 | $ 563,420 |
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio | 0.1050 | 0.1050 |
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount | $ 599,915 | $ 536,591 |
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio | 0.1000 | 0.1000 |
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount | $ 629,389 | $ 578,681 |
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio | 10.49% | 10.78% |
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount | $ 509,928 | $ 375,614 |
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio | 8.50% | 7.00% |
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount | $ 479,932 | $ 348,784 |
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio | 8.00% | 6.50% |
Tier I Capital (to Risk Weighted Assets): Actual Amount | $ 629,389 | $ 578,681 |
Tier I Capital (to Risk Weighted Assets): Actual Ratio | 0.1049 | 0.1078 |
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount | $ 419,940 | $ 456,102 |
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio | 0.0700 | 0.0850 |
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount | $ 389,945 | $ 429,273 |
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio | 0.0650 | 0.0800 |
Tier I Capital (to Average Assets): Actual Amount | $ 629,389 | $ 578,681 |
Tier I Capital (to Average Assets): Actual Ratio | 0.0889 | 0.0878 |
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount | $ 283,324 | $ 263,537 |
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio | 0.0400 | 0.0400 |
Tier I Capital (to Average Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount | $ 354,156 | $ 329,421 |
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio | 0.0500 | 0.0500 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets and liabilities measured at fair value on a recurring basis: | |||
Transfer of assets between level 1 to 2 | $ 0 | $ 0 | |
Transfer of assets between level 2 to 1 | 0 | 0 | |
Transfer of assets into level 3 | 0 | 0 | |
Transfer of assets out of level 3 | 0 | 0 | |
Assets | |||
Investment securities available for sale: | 906,603,000 | 676,711,000 | |
Equity securities | 9,529,000 | 9,424,000 | |
Loans held for sale | 32,045,000 | 138,090,000 | |
Losses recognized on assets measured on non-recurring basis | |||
Loan servicing rights | 7,532,000 | 12,337,000 | $ 2,139,000 |
Mortgage servicing rights held for sale | 222,000 | 1,692,000 | (490,000) |
Nonperforming loans | 14,468,000 | 24,611,000 | 10,259,000 |
Other real estate owned | 454,000 | 1,390,000 | 16,000 |
Assets held for sale | 0 | 10,404,000 | 3,577,000 |
Total loss on assets measured on a nonrecurring basis | 22,676,000 | 50,434,000 | $ 15,501,000 |
U.S. Treasury securities | |||
Assets | |||
Investment securities available for sale: | 64,917,000 | ||
U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale: | 33,817,000 | 35,567,000 | |
Mortgage-backed securities - non-agency | |||
Assets | |||
Investment securities available for sale: | 28,706,000 | 20,744,000 | |
State and municipal securities | |||
Assets | |||
Investment securities available for sale: | 143,099,000 | 129,765,000 | |
Corporate securities | |||
Assets | |||
Investment securities available for sale: | 195,794,000 | 146,058,000 | |
Recurring member | |||
Assets | |||
Investment securities available for sale: | 9,424,000 | ||
Equity securities | 9,529,000 | 138,090,000 | |
Loans held for sale | 32,045,000 | ||
Total | 954,060,000 | 827,648,000 | |
Liabilities | |||
Forward commitments to sell mortgage-backed securities | 19,000 | 309,000 | |
Interest rate swap contracts | 378,000 | 803,000 | |
Total | 397,000 | 1,112,000 | |
Recurring member | U.S. Treasury securities | |||
Assets | |||
Investment securities available for sale: | 64,917,000 | ||
Recurring member | U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale: | 33,817,000 | 35,567,000 | |
Recurring member | Mortgage-backed securities - agency | |||
Assets | |||
Investment securities available for sale: | 440,270,000 | 344,577,000 | |
Recurring member | Mortgage-backed securities - non-agency | |||
Assets | |||
Investment securities available for sale: | 28,706,000 | 20,744,000 | |
Recurring member | State and municipal securities | |||
Assets | |||
Investment securities available for sale: | 143,099,000 | 129,765,000 | |
Recurring member | Corporate securities | |||
Assets | |||
Investment securities available for sale: | 195,794,000 | 146,058,000 | |
Recurring member | Interest rate lock commitments | |||
Assets | |||
Loans held for sale | 2,217,000 | ||
Derivative assets | 410,000 | ||
Recurring member | Interest rate swap contracts | |||
Assets | |||
Derivative assets | 5,473,000 | 1,206,000 | |
Recurring member | Level 1 | |||
Assets | |||
Investment securities available for sale: | 9,424,000 | ||
Equity securities | 9,529,000 | 0 | |
Loans held for sale | 0 | ||
Total | 74,446,000 | 9,424,000 | |
Liabilities | |||
Forward commitments to sell mortgage-backed securities | 0 | 0 | |
Interest rate swap contracts | 0 | 0 | |
Total | 0 | 0 | |
Recurring member | Level 1 | U.S. Treasury securities | |||
Assets | |||
Investment securities available for sale: | 64,917,000 | ||
Recurring member | Level 1 | U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 1 | Mortgage-backed securities - agency | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 1 | Mortgage-backed securities - non-agency | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 1 | State and municipal securities | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 1 | Corporate securities | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 1 | Interest rate lock commitments | |||
Assets | |||
Loans held for sale | 0 | ||
Derivative assets | 0 | ||
Recurring member | Level 1 | Interest rate swap contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Recurring member | Level 2 | |||
Assets | |||
Investment securities available for sale: | 0 | ||
Equity securities | 0 | 138,090,000 | |
Loans held for sale | 32,045,000 | ||
Total | 878,679,000 | 817,265,000 | |
Liabilities | |||
Forward commitments to sell mortgage-backed securities | 19,000 | 309,000 | |
Interest rate swap contracts | 378,000 | 803,000 | |
Total | 397,000 | 1,112,000 | |
Recurring member | Level 2 | U.S. Treasury securities | |||
Assets | |||
Investment securities available for sale: | 0 | ||
Recurring member | Level 2 | U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale: | 33,817,000 | 35,567,000 | |
Recurring member | Level 2 | Mortgage-backed securities - agency | |||
Assets | |||
Investment securities available for sale: | 440,270,000 | 344,577,000 | |
Recurring member | Level 2 | Mortgage-backed securities - non-agency | |||
Assets | |||
Investment securities available for sale: | 28,706,000 | 20,744,000 | |
Recurring member | Level 2 | State and municipal securities | |||
Assets | |||
Investment securities available for sale: | 143,099,000 | 129,765,000 | |
Recurring member | Level 2 | Corporate securities | |||
Assets | |||
Investment securities available for sale: | 194,859,000 | 145,099,000 | |
Recurring member | Level 2 | Interest rate lock commitments | |||
Assets | |||
Loans held for sale | 2,217,000 | ||
Derivative assets | 410,000 | ||
Recurring member | Level 2 | Interest rate swap contracts | |||
Assets | |||
Derivative assets | 5,473,000 | 1,206,000 | |
Recurring member | Level 3 | |||
Assets | |||
Investment securities available for sale: | 0 | ||
Equity securities | 0 | 0 | |
Loans held for sale | 0 | ||
Total | 935,000 | 959,000 | |
Liabilities | |||
Forward commitments to sell mortgage-backed securities | 0 | 0 | |
Interest rate swap contracts | 0 | 0 | |
Total | 0 | 0 | |
Recurring member | Level 3 | U.S. Treasury securities | |||
Assets | |||
Investment securities available for sale: | 0 | ||
Recurring member | Level 3 | U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 3 | Mortgage-backed securities - agency | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 3 | Mortgage-backed securities - non-agency | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 3 | State and municipal securities | |||
Assets | |||
Investment securities available for sale: | 0 | 0 | |
Recurring member | Level 3 | Corporate securities | |||
Assets | |||
Investment securities available for sale: | 935,000 | 959,000 | |
Recurring member | Level 3 | Interest rate lock commitments | |||
Assets | |||
Loans held for sale | 0 | ||
Derivative assets | 0 | ||
Recurring member | Level 3 | Interest rate swap contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Non recurring member | |||
Assets measured at fair value on a non-recurring basis: | |||
Loan servicing rights | 28,865,000 | 28,865,000 | |
Mortgage servicing rights held for sale | 878,000 | ||
Nonperforming loans | 36,542,000 | 13,333,000 | |
Other real estate owned | 12,059,000 | 20,247,000 | |
Assets held for sale | 2,284,000 | 4,157,000 | |
Non recurring member | Level 1 | |||
Assets measured at fair value on a non-recurring basis: | |||
Loan servicing rights | 0 | 0 | |
Mortgage servicing rights held for sale | 0 | ||
Nonperforming loans | 24,358,000 | 0 | |
Other real estate owned | 0 | 0 | |
Assets held for sale | 0 | 0 | |
Non recurring member | Level 2 | |||
Assets measured at fair value on a non-recurring basis: | |||
Loan servicing rights | 0 | 0 | |
Mortgage servicing rights held for sale | 0 | ||
Nonperforming loans | 6,129,000 | 12,054,000 | |
Other real estate owned | 12,059,000 | 20,247,000 | |
Assets held for sale | 2,284,000 | 4,157,000 | |
Non recurring member | Level 3 | |||
Assets measured at fair value on a non-recurring basis: | |||
Loan servicing rights | 28,865,000 | 39,276,000 | |
Mortgage servicing rights held for sale | 878,000 | ||
Nonperforming loans | 6,055,000 | 1,279,000 | |
Other real estate owned | 0 | 0 | |
Assets held for sale | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - Corporate securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | $ 959 | $ 955 |
Total realized in earnings | 14 | 8 |
Total unrealized in other comprehensive income | (24) | 4 |
Net settlements (principal and interest) | (14) | (8) |
Balance, end of period | $ 935 | $ 959 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale: | $ 906,603 | $ 676,711 |
Recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale: | 9,424 | |
Non recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 28,865 | 28,865 |
Level 3 | Recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale: | 0 | |
Level 3 | Recurring member | Net market price | Corporate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale: | $ 935 | $ 959 |
Valuation technique | Valuation Technique, Consensus Pricing Model [Member] | Valuation Technique, Consensus Pricing Model [Member] |
Level 3 | Non recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | $ 28,865 | $ 39,276 |
Level 3 | Non recurring member | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique for servicing asset | Discounted cash flow | Discounted cash flow |
Level 3 | Non recurring member | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique for servicing asset | Discounted cash flow | Discounted cash flow |
Level 3 | Non recurring member | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique for servicing asset | Discounted cash flow | Discounted cash flow |
Level 3 | Non recurring member | Discounted cash flow | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | $ 28,368 | $ 38,322 |
Level 3 | Non recurring member | Discounted cash flow | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 898 | 954 |
Level 3 | Non recurring member | Discounted cash flow | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | $ 705 | $ 878 |
Minimum | Level 3 | Net market price | Corporate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | (0.020) |
Minimum | Level 3 | Non recurring member | Prepayment speed | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 8 | 8 |
Minimum | Level 3 | Non recurring member | Prepayment speed | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 12.27 | 12.01 |
Minimum | Level 3 | Non recurring member | Prepayment speed | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 11.94 | 14.40 |
Minimum | Level 3 | Non recurring member | Discount rate | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 10 | 10 |
Minimum | Level 3 | Non recurring member | Discount rate | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 10 | |
Minimum | Level 3 | Non recurring member | Discount rate | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 9 | 9 |
Maximum | Level 3 | Net market price | Corporate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.070 | 0.049 |
Maximum | Level 3 | Non recurring member | Prepayment speed | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 18 | 18 |
Maximum | Level 3 | Non recurring member | Prepayment speed | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 14.14 | 12.52 |
Maximum | Level 3 | Non recurring member | Prepayment speed | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 27.48 | 26.28 |
Maximum | Level 3 | Non recurring member | Discount rate | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 27 | 27 |
Maximum | Level 3 | Non recurring member | Discount rate | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 12 | |
Maximum | Level 3 | Non recurring member | Discount rate | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 11.50 | 11.50 |
Weighted average | Level 3 | Net market price | Corporate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.045 | 0.020 |
Weighted average | Level 3 | Non recurring member | Prepayment speed | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.0824 | 8.18 |
Weighted average | Level 3 | Non recurring member | Prepayment speed | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 13.88 | 12.25 |
Weighted average | Level 3 | Non recurring member | Prepayment speed | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 14.94 | 20.34 |
Weighted average | Level 3 | Non recurring member | Discount rate | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1187 | 11.48 |
Weighted average | Level 3 | Non recurring member | Discount rate | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 11 | 11 |
Weighted average | Level 3 | Non recurring member | Discount rate | Residential MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 10.25 | 10.13 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | $ 32,045 | $ 138,090 | |
Difference | 584 | 810 | |
Contractual principal | 31,461 | 137,280 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | (215) | 179 | $ (382) |
Commercial Portfolio | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | 19,230 | 126,123 | |
Difference | 0 | 67 | |
Contractual principal | 19,230 | 126,056 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | (67) | (139) | (389) |
Residential Portfolio | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | 12,815 | 11,967 | |
Difference | 584 | 743 | |
Contractual principal | 12,231 | 11,224 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | $ (148) | $ 318 | $ 7 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Accrued interest receivable | $ 19,470 | $ 23,545 |
Liabilities | ||
Trust preferred debentures | 49,374 | 48,814 |
Level 1 | ||
Assets | ||
Cash and due from banks | 673,297 | 337,080 |
Federal funds sold | 7,074 | 4,560 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
FHLB and other borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Trust preferred debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 19,470 | 23,545 |
Liabilities | ||
Deposits | 6,109,077 | 5,108,360 |
Short-term borrowings | 76,803 | 68,957 |
FHLB and other borrowings | 317,464 | 807,493 |
Subordinated debt | 148,386 | 176,504 |
Trust preferred debentures | 57,827 | 50,165 |
Accrued interest payable | 2,848 | 4,441 |
Level 3 | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans, net | 5,221,886 | 5,006,223 |
Accrued interest receivable | 0 | 0 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
FHLB and other borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Trust preferred debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Assets | ||
Cash and due from banks | 673,297 | 337,080 |
Federal funds sold | 7,074 | 4,560 |
Loans, net | 5,173,739 | 5,042,888 |
Accrued interest receivable | 19,470 | 23,545 |
Liabilities | ||
Deposits | 6,110,648 | 5,101,016 |
Short-term borrowings | 76,803 | 68,957 |
FHLB and other borrowings | 310,171 | 779,171 |
Subordinated debt | 139,091 | 169,795 |
Trust preferred debentures | 49,374 | 48,814 |
Accrued interest payable | 2,848 | 4,441 |
Fair Value | ||
Assets | ||
Cash and due from banks | 673,297 | 337,080 |
Federal funds sold | 7,074 | 4,560 |
Loans, net | 5,221,886 | 5,006,223 |
Accrued interest receivable | 19,470 | 23,545 |
Liabilities | ||
Deposits | 6,109,077 | 5,108,360 |
Short-term borrowings | 76,803 | 68,957 |
FHLB and other borrowings | 317,464 | 807,493 |
Subordinated debt | 148,386 | 176,504 |
Trust preferred debentures | 57,827 | 50,165 |
Accrued interest payable | $ 2,848 | $ 4,441 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Anticipated material loss | $ 0 | ||
Losses as a result of make whole requests and loan repurchases | 0 | $ 0 | $ 0 |
Liability for unresolved repurchase demands | 200,000 | 200,000 | |
Commitments to extend credit | |||
Loan commitments | 994,709,000 | 894,212,000 | |
Financial guarantees – standby letters of credit | |||
Loan commitments | $ 14,325,000 | $ 15,889,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 207,675 | $ 199,136 | $ 189,815 |
Provision for credit losses | 3,393 | 44,361 | 16,985 |
Noninterest income | 69,899 | 61,249 | 75,282 |
Noninterest expense | 175,069 | 184,010 | 175,641 |
Income before income taxes | 99,112 | 32,014 | 72,471 |
Income taxes (benefit) | 17,795 | 9,477 | 16,687 |
Net income (loss) | 81,317 | 22,537 | 55,784 |
Total assets | 7,443,805 | 6,868,540 | 6,087,017 |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 218,309 | 211,120 | 201,534 |
Provision for credit losses | 3,393 | 44,361 | 16,985 |
Noninterest income | 42,249 | 38,706 | 53,683 |
Noninterest expense | 158,803 | 170,025 | 160,364 |
Income before income taxes | 98,362 | 35,440 | 77,868 |
Income taxes (benefit) | 17,218 | 10,020 | 18,195 |
Net income (loss) | 81,144 | 25,420 | 59,673 |
Total assets | 7,460,114 | 6,983,254 | 6,085,441 |
Wealth management | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 |
Noninterest income | 26,876 | 22,802 | 21,832 |
Noninterest expense | 17,372 | 14,938 | 14,850 |
Income before income taxes | 9,504 | 7,864 | 6,982 |
Income taxes (benefit) | 2,679 | 2,194 | 1,850 |
Net income (loss) | 6,825 | 5,670 | 5,132 |
Total assets | 28,883 | 29,069 | 27,521 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (10,634) | (11,984) | (11,719) |
Provision for credit losses | 0 | 0 | 0 |
Noninterest income | 774 | (259) | (233) |
Noninterest expense | (1,106) | (953) | 427 |
Income before income taxes | (8,754) | (11,290) | (12,379) |
Income taxes (benefit) | (2,102) | (2,737) | (3,358) |
Net income (loss) | (6,652) | (8,553) | (9,021) |
Total assets | $ (45,192) | $ (143,783) | $ (25,945) |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Noninterest income - out-of-scope of Topic 606 | $ 14,879 | $ 13,036 | |
Total noninterest income | 69,899 | 61,249 | $ 75,282 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - out-of-scope of Topic 606 | 25,450 | ||
Total noninterest income | 75,282 | ||
Trust management/administration fees | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 20,954 | 16,953 | |
Trust management/administration fees | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 16,114 | ||
Investment advisory fees | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 1,282 | 2,009 | |
Investment advisory fees | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 2,171 | ||
Investment brokerage fees | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 2,050 | 1,465 | |
Investment brokerage fees | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 1,165 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 2,525 | 2,375 | |
Other | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 2,382 | ||
Nonsufficient fund fees | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 5,339 | 5,589 | |
Nonsufficient fund fees | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 7,721 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 3,009 | 3,014 | |
Other | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 3,306 | ||
Interchange revenues | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 14,500 | 12,266 | |
Interchange revenues | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 11,992 | ||
Merchant services revenue | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 1,511 | 1,381 | |
Merchant services revenue | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | 1,506 | ||
Other | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | $ 3,850 | $ 3,161 | |
Other | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Noninterest income - in-scope of Topic 606 | $ 3,475 |
PARENT COMPANY ONLY FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Other assets | $ 130,907 | $ 99,654 | ||
Total assets | 7,443,805 | 6,868,540 | $ 6,087,017 | |
Liabilities: | ||||
Subordinated debt | 139,091 | 169,795 | ||
Trust preferred debentures | 49,374 | 48,814 | ||
Other liabilities | 83,167 | 67,438 | ||
Total liabilities | 6,779,968 | 6,247,149 | ||
Stockholders' equity | 663,837 | 621,391 | $ 661,911 | $ 608,525 |
Total liabilities and shareholders’ equity | 7,443,805 | 6,868,540 | ||
Midland States Bancorp, Inc | ||||
Assets | ||||
Cash | 37,876 | 58,904 | ||
Investment in common stock of subsidiaries | 809,143 | 772,758 | ||
Other assets | 8,094 | 11,317 | ||
Total assets | 855,113 | 842,979 | ||
Liabilities: | ||||
Subordinated debt | 139,091 | 169,795 | ||
Trust preferred debentures | 49,374 | 48,814 | ||
Other borrowings | 171 | 171 | ||
Other liabilities | 2,640 | 2,808 | ||
Total liabilities | 191,276 | 221,588 | ||
Stockholders' equity | 663,837 | 621,391 | ||
Total liabilities and shareholders’ equity | $ 855,113 | $ 842,979 |
PARENT COMPANY ONLY FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statements of Income | |||
Interest expense | $ 30,142 | $ 45,752 | $ 59,703 |
Income before income taxes | 99,112 | 32,014 | 72,471 |
Income tax benefit | (17,795) | (9,477) | (16,687) |
Net income | 81,317 | 22,537 | 55,784 |
Midland States Bancorp, Inc | |||
Condensed Statements of Income | |||
Dividends from subsidiaries | 45,350 | 89,890 | 43,900 |
Other income | 932 | 0 | 0 |
Interest expense | 10,668 | 12,054 | 11,798 |
Other expense | 984 | 1,309 | 2,753 |
Income before income taxes | 34,630 | 76,527 | 29,349 |
Income tax benefit | 2,105 | 2,749 | 3,371 |
Income before equity in undistributed income (loss) of subsidiaries | 36,735 | 79,276 | 32,720 |
Equity in undistributed income (loss) of subsidiaries | 44,582 | (56,739) | 23,064 |
Net income | $ 81,317 | $ 22,537 | $ 55,784 |
PARENT COMPANY ONLY FINANCIAL_5
PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 81,317 | $ 22,537 | $ 55,784 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation expense | 1,938 | 2,175 | 2,364 |
Change in other assets | (31,974) | (30,269) | (5,191) |
Change in other liabilities | 24,626 | 4,750 | 13,202 |
Net cash provided by operating activities | 334,438 | 499,147 | 538,653 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (478,495) | (1,312,433) | (364,788) |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated debt, net of issuance costs | 0 | 0 | 98,265 |
Payments made on subordinated debt | (31,075) | (7,443) | (19,543) |
Subordinated debt prepayment fees | 0 | 193 | 1,778 |
Common stock repurchased | (11,692) | (39,615) | (4,019) |
Redemption of preferred stock | 0 | (10) | (2,636) |
Cash dividends paid on common stock | (25,172) | (24,958) | (23,599) |
Cash dividends paid on preferred stock | 0 | 0 | (191) |
Proceeds from issuance of common stock under employee benefit plans | 2,249 | 2,524 | 5,794 |
Net cash provided by financing activities | 482,788 | 760,421 | 6,940 |
Net increase (decrease) in cash and cash equivalents | 338,731 | (52,865) | 180,805 |
Cash and cash equivalents: | |||
Beginning of period | 341,640 | ||
End of period | 680,371 | 341,640 | |
Midland States Bancorp, Inc | |||
Cash flows from operating activities: | |||
Net income | 81,317 | 22,537 | 55,784 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed (income) loss of subsidiaries | (44,582) | 56,739 | (23,064) |
Share-based compensation expense | 1,938 | 2,175 | 2,364 |
Change in other assets | 3,223 | (6,382) | (2,604) |
Change in other liabilities | 763 | 471 | 1,528 |
Net cash provided by operating activities | 42,659 | 75,540 | 34,008 |
Cash flows from investing activities: | |||
Net cash paid in acquisition | 0 | 0 | (1,021) |
Net cash received in dissolution of subsidiary | 2,003 | 0 | 0 |
Net cash used in investing activities | 2,003 | 0 | (1,021) |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated debt, net of issuance costs | 0 | 0 | 98,265 |
Payments made on subordinated debt | (31,075) | (7,443) | (19,543) |
Payments made on other borrowings | 0 | 0 | (56,475) |
Common stock repurchased | (11,692) | (39,615) | (4,019) |
Cash dividends paid on common stock | (25,172) | (24,958) | (23,599) |
Cash dividends paid on preferred stock | 0 | 0 | (191) |
Proceeds from issuance of common stock under employee benefit plans | 2,249 | 2,524 | 5,794 |
Net cash provided by financing activities | (65,690) | (69,309) | (626) |
Net increase (decrease) in cash and cash equivalents | (21,028) | 6,231 | 32,361 |
Cash and cash equivalents: | |||
Beginning of period | 58,904 | 52,673 | 20,312 |
End of period | 37,876 | 58,904 | 52,673 |
Midland States Bancorp, Inc | Series G Preferred Stock | |||
Cash flows from financing activities: | |||
Redemption of preferred stock | 0 | (10) | 0 |
Midland States Bancorp, Inc | Series H preferred stock | |||
Cash flows from financing activities: | |||
Redemption of preferred stock | $ 0 | $ 0 | $ (2,636) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - FNBC - Subsequent Event $ in Millions | Jan. 25, 2022USD ($) |
Deposits | |
Subsequent Event [Line Items] | |
Fair value of assets acquired | $ 86 |
Loans | |
Subsequent Event [Line Items] | |
Fair value of assets acquired | $ 26 |