Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 21,393,260 | |
Entity Central Index Key | 0001466026 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | MSBI | |
Security Exchange Name | NASDAQ | |
Depository Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series A | |
Trading Symbol | MSBIP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 123,719 | $ 134,212 |
Federal funds sold | 927 | 849 |
Cash and cash equivalents | 124,646 | 135,061 |
Investment securities available for sale, at fair value | 1,095,091 | 915,895 |
Equity securities, at fair value | 4,563 | 4,501 |
Loans | 5,851,994 | 6,131,079 |
Allowance for credit losses on loans | (92,183) | (68,502) |
Total loans, net | 5,759,811 | 6,062,577 |
Loans held for sale | 5,555 | 3,811 |
Premises and equipment, net | 83,040 | 82,814 |
Other real estate owned | 8,304 | 9,112 |
Nonmarketable equity securities | 49,001 | 43,421 |
Accrued interest receivable | 25,756 | 24,934 |
Loan servicing rights, at lower of cost or fair value | 18,902 | 20,253 |
Goodwill | 161,904 | 161,904 |
Other intangible assets, net | 14,003 | 16,108 |
Company-owned life insurance | 207,211 | 203,485 |
Other assets | 199,487 | 182,992 |
Total assets | 7,757,274 | 7,866,868 |
Deposits: | ||
Noninterest-bearing demand deposits | 1,108,521 | 1,145,395 |
Interest-bearing deposits | 5,009,502 | 5,164,134 |
Total deposits | 6,118,023 | 6,309,529 |
Short-term borrowings | 7,208 | 34,865 |
Federal Home Loan Bank advances and other borrowings | 600,000 | 476,000 |
Subordinated debt | 91,656 | 93,546 |
Trust preferred debentures | 50,921 | 50,616 |
Accrued interest payable and other liabilities | 103,694 | 110,459 |
Total liabilities | 6,971,502 | 7,075,015 |
Shareholders’ Equity: | ||
Preferred stock, $2.00 par value; 4,000,000 shares authorized; 115,000 Series A shares, $1,000 per share liquidation preference, issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 110,548 | 110,548 |
Common stock, $0.01 par value; 40,000,000 shares authorized; 21,377,215 and 21,551,402 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 214 | 216 |
Capital surplus | 432,569 | 435,463 |
Retained earnings | 325,022 | 322,379 |
Accumulated other comprehensive loss, net of tax | (82,581) | (76,753) |
Total shareholders’ equity | 785,772 | 791,853 |
Total liabilities and shareholders’ equity | $ 7,757,274 | $ 7,866,868 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 2 | $ 2 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 115,000 | 115,000 |
Preferred stock, shares outstanding (in shares) | 115,000 | 115,000 |
Preferred stock, liquidation price (in dollars per share) | $ 1,000 | $ 1,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 21,377,215 | 21,551,402 |
Common stock, shares outstanding (in shares) | 21,377,215 | 21,551,402 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME—(UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income: | ||||
Loans, including fees: Taxable | $ 88,252 | $ 91,350 | $ 177,247 | $ 178,809 |
Loans, including fees: Tax exempt | 384 | 427 | 774 | 852 |
Loans held for sale | 84 | 59 | 139 | 75 |
Investment securities: | ||||
Taxable | 12,483 | 6,899 | 22,662 | 12,269 |
Tax exempt | 254 | 305 | 672 | 799 |
Nonmarketable equity securities | 963 | 599 | 1,650 | 1,394 |
Federal funds sold and cash investments | 875 | 852 | 1,826 | 1,832 |
Total interest income | 103,295 | 100,491 | 204,970 | 196,030 |
Interest expense: | ||||
Deposits | 39,476 | 33,617 | 78,690 | 60,022 |
Short-term borrowings | 308 | 14 | 1,144 | 39 |
Federal Home Loan Bank advances and other borrowings | 5,836 | 5,396 | 8,872 | 11,402 |
Subordinated debt | 1,265 | 1,335 | 2,545 | 2,705 |
Trust preferred debentures | 1,358 | 1,289 | 2,747 | 2,518 |
Total interest expense | 48,243 | 41,651 | 93,998 | 76,686 |
Net interest income | 55,052 | 58,840 | 110,972 | 119,344 |
Provision for credit losses on loans | 17,000 | 5,879 | 31,000 | 9,014 |
Recapture of credit losses on unfunded commitments | (200) | 0 | (200) | 0 |
Total provision for credit losses | 16,800 | 5,879 | 30,800 | 9,014 |
Net interest income after provision for credit losses | 38,252 | 52,961 | 80,172 | 110,330 |
Noninterest income: | ||||
Wealth management revenue | 6,801 | 6,269 | 13,933 | 12,680 |
Service charges on deposit accounts | 3,121 | 2,677 | 6,237 | 5,245 |
Interchange revenue | 3,563 | 3,696 | 6,921 | 7,108 |
Residential mortgage banking revenue | 557 | 540 | 1,084 | 945 |
Income on company-owned life insurance | 1,925 | 891 | 3,726 | 1,767 |
Loss on sales of investment securities, net | (152) | (869) | (152) | (1,517) |
Other income | 1,841 | 5,549 | 7,094 | 8,304 |
Total noninterest income | 17,656 | 18,753 | 38,843 | 34,532 |
Noninterest expense: | ||||
Salaries and employee benefits | 22,872 | 22,857 | 46,974 | 47,100 |
Occupancy and equipment | 3,964 | 3,879 | 8,106 | 8,322 |
Data processing | 7,205 | 6,544 | 13,927 | 12,855 |
FDIC insurance | 1,219 | 1,196 | 2,493 | 2,525 |
Professional services | 2,243 | 1,663 | 4,498 | 3,423 |
Marketing | 741 | 670 | 1,478 | 1,373 |
Communications | 336 | 496 | 678 | 1,007 |
Loan expense | 1,250 | 1,420 | 2,481 | 2,238 |
Amortization of intangible assets | 1,016 | 1,208 | 2,105 | 2,499 |
Other expense | 6,633 | 2,961 | 9,606 | 6,034 |
Total noninterest expense | 47,479 | 42,894 | 92,346 | 87,376 |
Income before income taxes | 8,429 | 28,820 | 26,669 | 57,486 |
Income taxes | 1,679 | 7,245 | 6,034 | 14,139 |
Net income | 6,750 | 21,575 | 20,635 | 43,347 |
Preferred dividends | 2,228 | 2,228 | 4,456 | 4,456 |
Net income available to common shareholders | $ 4,522 | $ 19,347 | $ 16,179 | $ 38,891 |
Per common share data: | ||||
Basic earnings per common share (in dollars per share) | $ 0.20 | $ 0.86 | $ 0.73 | $ 1.72 |
Diluted earnings per common share (in dollars per share) | $ 0.20 | $ 0.86 | $ 0.73 | $ 1.72 |
Weighted average common shares outstanding (in shares) | 21,731,195 | 22,200,917 | 21,753,056 | 22,338,627 |
Weighted average diluted common shares outstanding (in shares) | 21,734,849 | 22,205,079 | 21,761,492 | 22,348,981 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME—(UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,750 | $ 21,575 | $ 20,635 | $ 43,347 |
Investment securities available for sale: | ||||
Unrealized losses that occurred during the period | (2,956) | (8,020) | (9,993) | (2,656) |
Reclassification adjustment for realized net losses on sales of investment securities included in net income | 152 | 869 | 152 | 1,517 |
Income tax effect | 757 | 1,930 | 2,657 | 308 |
Change in investment securities available for sale, net of tax | (2,047) | (5,221) | (7,184) | (831) |
Cash flow hedges: | ||||
Net unrealized derivative gains (losses) on cash flow hedges | 1,214 | (2,331) | 1,858 | (125) |
Income tax effect | (329) | 630 | (502) | 34 |
Change in cash flow hedges, net of tax | 885 | (1,701) | 1,356 | (91) |
Other comprehensive loss, net of tax | (1,162) | (6,922) | (5,828) | (922) |
Total comprehensive income | $ 5,588 | $ 14,653 | $ 14,807 | $ 42,425 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) - USD ($) $ in Thousands | Total | Preferred stock | Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive (loss) income |
Beginning Balance at Dec. 31, 2022 | $ 758,574 | $ 110,548 | $ 222 | $ 449,196 | $ 282,405 | $ (83,797) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 43,347 | 43,347 | ||||
Other comprehensive loss | (922) | (922) | ||||
Common dividends declared | (13,408) | (13,408) | ||||
Preferred dividends declared | (4,456) | (4,456) | ||||
Common stock repurchased | (8,967) | (4) | (8,963) | |||
Share-based compensation expense | 1,192 | 1,192 | ||||
Issuance of common stock under employee benefit plans | 1,461 | 1,461 | ||||
Ending Balance at Jun. 30, 2023 | 776,821 | 110,548 | 218 | 442,886 | 307,888 | (84,719) |
Beginning Balance at Mar. 31, 2023 | 775,643 | 110,548 | 221 | 447,471 | 295,200 | (77,797) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21,575 | 21,575 | ||||
Other comprehensive loss | (6,922) | (6,922) | ||||
Common dividends declared | (6,659) | (6,659) | ||||
Preferred dividends declared | (2,228) | (2,228) | ||||
Common stock repurchased | (6,166) | (3) | (6,163) | |||
Share-based compensation expense | 567 | 567 | ||||
Issuance of common stock under employee benefit plans | 1,011 | 1,011 | ||||
Ending Balance at Jun. 30, 2023 | 776,821 | 110,548 | 218 | 442,886 | 307,888 | (84,719) |
Beginning Balance at Dec. 31, 2023 | 791,853 | 110,548 | 216 | 435,463 | 322,379 | (76,753) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 20,635 | 20,635 | ||||
Other comprehensive loss | (5,828) | (5,828) | ||||
Common dividends declared | (13,536) | (13,536) | ||||
Preferred dividends declared | (4,456) | (4,456) | ||||
Common stock repurchased | (4,970) | (2) | (4,968) | |||
Share-based compensation expense | 1,406 | 1,406 | ||||
Issuance of common stock under employee benefit plans | 668 | 668 | ||||
Ending Balance at Jun. 30, 2024 | 785,772 | 110,548 | 214 | 432,569 | 325,022 | (82,581) |
Beginning Balance at Mar. 31, 2024 | 791,006 | 110,548 | 215 | 434,398 | 327,264 | (81,419) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,750 | 6,750 | ||||
Other comprehensive loss | (1,162) | (1,162) | ||||
Common dividends declared | (6,764) | (6,764) | ||||
Preferred dividends declared | (2,228) | (2,228) | ||||
Common stock repurchased | (3,026) | (1) | (3,025) | |||
Share-based compensation expense | 705 | 705 | ||||
Issuance of common stock under employee benefit plans | 491 | 491 | ||||
Ending Balance at Jun. 30, 2024 | $ 785,772 | $ 110,548 | $ 214 | $ 432,569 | $ 325,022 | $ (82,581) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common dividend declared, per share (in dollars per share) | $ 0.31 | $ 0.30 | $ 0.62 | $ 0.60 |
Preferred dividend declared, per share (in dollars per share) | $ 19.375 | $ 19.375 | $ 38.75 | $ 38.75 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS—(UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 20,635 | $ 43,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 30,800 | 9,014 |
Depreciation on premises and equipment | 2,478 | 2,419 |
Amortization of intangible assets | 2,105 | 2,499 |
Amortization of operating lease right-of-use asset | 803 | 844 |
Amortization of loan servicing rights | 1,351 | 172 |
Share-based compensation expense | 1,406 | 1,192 |
Increase in cash surrender value of life insurance | (3,726) | (1,767) |
Investment securities accretion, net | (2,340) | (808) |
Loss on sales of investment securities, net | 152 | 1,517 |
Gain on repurchase of subordinated debt | (167) | (676) |
Gain on sales of other real estate owned | (22) | (819) |
Impairment on other real estate owned | 730 | 0 |
Origination of loans held for sale | (32,361) | (27,259) |
Proceeds from sales of loans held for sale | 45,807 | 34,344 |
Gain on sale of loans held for sale | (892) | (1,144) |
Net change in operating assets and liabilities: | ||
Accrued interest receivable | (822) | (687) |
Other assets | (16,278) | (11,380) |
Accrued expenses and other liabilities | (4,676) | 9,995 |
Net cash provided by operating activities | 44,983 | 60,803 |
Cash flows from investing activities: | ||
Purchases of investment securities available for sale | (322,891) | (245,744) |
Proceeds from sales of investment securities available for sale | 45,825 | 99,960 |
Maturities and payments on investment securities available for sale | 91,216 | 29,455 |
Purchases of equity securities | (150) | (192) |
Proceeds from sales of equity securities | 0 | 5,148 |
Net decrease (increase) in loans | 257,249 | (76,502) |
Purchases of premises and equipment | (2,078) | (4,688) |
Purchases of nonmarketable equity securities | (114,232) | (66,572) |
Proceeds from redemptions of nonmarketable equity securities | 108,652 | 65,897 |
Proceeds from sales of other real estate owned | 301 | 7,346 |
Net cash provided by (used in) investing activities | 63,892 | (185,892) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (191,506) | 61,896 |
Net decrease in short-term borrowings | (27,657) | (20,528) |
Net increase in short-term FHLB borrowings | 179,000 | 10,000 |
Proceeds from long-term FHLB borrowings | 130,000 | 105,000 |
Payments made on long-term FHLB borrowings | (185,000) | 0 |
Payments made on subordinated debt | (1,833) | (5,845) |
Cash dividends paid on preferred stock | (4,456) | (4,456) |
Cash dividends paid on common stock | (13,536) | (13,408) |
Common stock repurchased | (4,970) | (8,967) |
Proceeds from issuance of common stock under employee benefit plans | 668 | 1,461 |
Net cash (used in) provided by financing activities | (119,290) | 125,153 |
Net (decrease) increase in cash and cash equivalents | (10,415) | 64 |
Cash and cash equivalents: | ||
Beginning of period | 135,061 | 160,631 |
End of period | 124,646 | 160,695 |
Supplemental disclosures of cash flow information: | ||
Interest paid on deposits and borrowed funds | 92,962 | 69,828 |
Income tax paid (net of refunds) | 21,020 | 11,024 |
Supplemental disclosures of noncash investing and financing activities: | ||
Transfer of loans to other real estate owned | 122 | 0 |
Right of use assets obtained in exchange for lease obligations | 1,539 | 1,348 |
Transfer of loan servicing rights held for sale to loan servicing rights, at lower of cost or market | 0 | 20,745 |
Pending settlements on securities purchased | $ 1,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
BUSINESS DESCRIPTION [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Midland States Bancorp, Inc. 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; 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 unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and guidance provided by the SEC for interim financial information. Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for completed financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. The consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Certain reclassifications of 2023 amounts have been made to conform to the 2024 presentation. All significant transactions and accounts between subsidiaries have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period. Accounting Guidance Adopted in 2024 FASB ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – In March 2023, the FASB issued ASU No. 2023-02, which allows for reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the type of program the tax credits are related to. The ASU is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance on January 1, 2024 on a prospective basis. The adoption of this accounting pronouncement did not have a material impact on the consolidated financial statements. Accounting Guidance Not Yet Adopted FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures - In December 2023, the FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity's chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis.The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will update the related disclosures upon adoption. FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. The pronouncement also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment Securities Available for Sale Investment securities available for sale at June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 (dollars in thousands) Amortized Gross Gross Fair Investment securities available for sale U.S. Treasury securities $ 2,995 $ — $ 1 $ 2,994 U.S. government sponsored entities and U.S. agency securities 52,440 131 1,740 50,831 Mortgage-backed securities - agency 790,311 882 87,017 704,176 Mortgage-backed securities - non-agency 89,379 596 3,793 86,182 State and municipal securities 73,063 160 7,072 66,151 Corporate securities 93,459 12 8,672 84,799 Other securities (1) 99,982 113 137 99,958 Total available for sale securities $ 1,201,629 $ 1,894 $ 108,432 $ 1,095,091 (1) The fair value of other securities includes student loan asset backed securities of $63.5 million and structured financial products of $36.5 million. December 31, 2023 (dollars in thousands) Amortized Gross Gross Fair Investment securities available for sale U.S. Treasury securities $ 1,097 $ — $ — $ 1,097 U.S. government sponsored entities and U.S. agency securities 74,161 176 1,765 72,572 Mortgage-backed securities - agency 650,119 2,325 77,944 574,500 Mortgage-backed securities - non-agency 87,019 414 3,904 83,529 State and municipal securities 62,952 258 5,750 57,460 Corporate securities 109,598 41 10,467 99,172 Other securities (1) 27,646 3 84 27,565 Total available for sale securities $ 1,012,592 $ 3,217 $ 99,914 $ 915,895 (1) The fair value of other securities includes structured financial products of $27.6 million. The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at June 30, 2024. 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 $ 4,031 $ 4,020 After one year through five years 72,993 70,366 After five years through ten years 150,875 138,034 After ten years 94,040 92,313 Mortgage-backed securities 879,690 790,358 Total available for sale securities $ 1,201,629 $ 1,095,091 Proceeds and gross realized gains and losses on sales of investment securities available for sale for the three and six months ended June 30, 2024 and 2023 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Investment securities available for sale Proceeds from sales $ 45,825 $ 15,467 $ 45,825 $ 99,960 Gross realized gains on sales 307 — 307 338 Gross realized losses on sales (459) (869) (459) (1,855) Unrealized losses and fair values for investment securities available for sale as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: June 30, 2024 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 $ 2,994 $ 1 $ — $ — $ 2,994 $ 1 U.S. government sponsored entities and U.S. agency securities 36,004 86 8,346 1,654 44,350 1,740 Mortgage-backed securities - agency 189,165 5,139 404,360 81,878 593,525 87,017 Mortgage-backed securities - non-agency 12,911 183 18,476 3,610 31,387 3,793 State and municipal securities 57,644 6,845 1,387 227 59,031 7,072 Corporate securities 26,780 2,554 55,007 6,118 81,787 8,672 Other securities 65,687 137 — — 65,687 137 Total available for sale securities $ 391,185 $ 14,945 $ 487,576 $ 93,487 $ 878,761 $ 108,432 December 31, 2023 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 $ 42,826 $ 87 $ 8,323 $ 1,678 $ 51,149 $ 1,765 Mortgage-backed securities - agency 130,106 7,386 348,476 70,558 478,582 77,944 Mortgage-backed securities - non-agency 8,852 353 19,418 3,551 28,270 3,904 State and municipal securities 51,497 5,750 — — 51,497 5,750 Corporate securities 4,688 53 84,662 10,414 89,350 10,467 Other securities 14,763 84 — — 14,763 84 Total available for sale securities $ 252,732 $ 13,713 $ 460,879 $ 86,201 $ 713,611 $ 99,914 At June 30, 2024, 296 investment securities available for sale had unrealized losses with aggregate depreciation of 10.98% from their amortized cost basis. For all of the above investment securities, the unrealized losses were generally due to changes in interest rates and other market conditions, and unrealized losses were considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. 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. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
LOANS | LOANS The following table presents total loans outstanding by portfolio class, as of June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Commercial: Commercial $ 829,888 $ 825,938 Commercial other 570,979 656,592 Commercial real estate: Commercial real estate non-owner occupied 1,621,102 1,622,668 Commercial real estate owner occupied 438,117 436,857 Multi-family 293,863 279,904 Farmland 68,423 67,416 Construction and land development 476,528 452,593 Total commercial loans 4,298,900 4,341,968 Residential real estate: Residential first lien 315,039 317,388 Other residential 63,354 63,195 Consumer: Consumer 94,763 107,743 Consumer other 651,279 827,435 Lease financing 428,659 473,350 Total loans $ 5,851,994 $ 6,131,079 Total loans include net deferred loan costs of $2.9 million and $3.8 million at June 30, 2024 and December 31, 2023, respectively, and unearned discounts of $59.6 million and $66.4 million within the lease financing portfolio at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, the Company had residential real estate loans held for sale totaling $5.6 million, compared to $3.8 million at December 31, 2023. The Company sold loans and leases with proceeds totaling $28.2 million and $45.8 million during the three and six months ended June 30, 2024 and $28.0 million and $34.3 million during the three and six months ended June 30, 2023, 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. 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 substantially the same terms, including collateralization and interest rates prevailing at the time. The new loans, other additions, repayments and other reductions for the three and six months ended June 30, 2024 and 2023, are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Beginning balance $ 20,726 $ 19,519 $ 20,990 $ 19,776 New loans and other additions 500 2,367 500 2,367 Repayments and other reductions (332) (317) (596) (574) Ending balance $ 20,894 $ 21,569 $ 20,894 $ 21,569 The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2024 and 2023: Commercial Loan Portfolio Other Loan Portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total Changes in allowance for credit losses on loans for the three months ended June 30, 2024: Balance, beginning of period $ 21,329 $ 21,367 $ 12,629 $ 5,655 $ 3,611 $ 13,466 $ 78,057 Provision for credit losses on loans 5,733 (1,253) 336 (475) 10,817 1,842 17,000 Charge-offs (2,968) (5) — — (199) (2,084) (5,256) Recoveries 153 2,088 1 13 63 64 2,382 Balance, end of period $ 24,247 $ 22,197 $ 12,966 $ 5,193 $ 14,292 $ 13,288 $ 92,183 Changes in allowance for credit losses on loans for the six months ended June 30, 2024: Balance, beginning of period $ 21,847 $ 20,229 $ 4,163 $ 5,553 $ 3,770 $ 12,940 $ 68,502 Provision for credit losses on loans 7,509 424 8,802 (393) 10,806 3,852 31,000 Charge-offs (5,378) (696) — (35) (434) (3,749) (10,292) Recoveries 269 2,240 1 68 150 245 2,973 Balance, end of period $ 24,247 $ 22,197 $ 12,966 $ 5,193 $ 14,292 $ 13,288 $ 92,183 Changes in allowance for credit losses on loans for the three months ended June 30, 2023: Balance, beginning of period $ 15,762 $ 28,216 $ 2,442 $ 4,350 $ 4,129 $ 7,168 $ 62,067 Provision for credit losses on loans 196 2,427 1,049 1,207 4 996 5,879 Charge-offs (1,071) (1,544) (334) (54) (260) (771) (4,034) Recoveries 403 326 32 48 80 149 1,038 Balance, end of period $ 15,290 $ 29,425 $ 3,189 $ 5,551 $ 3,953 $ 7,542 $ 64,950 Changes in allowance for credit losses on loans for the six months ended June 30, 2023: Balance, beginning of period $ 14,639 $ 29,290 $ 2,435 $ 4,301 $ 3,599 $ 6,787 $ 61,051 Provision for credit losses on loans 2,194 2,097 1,056 1,270 704 1,693 9,014 Charge-offs (2,040) (2,290) (334) (85) (523) (1,161) (6,433) Recoveries 497 328 32 65 173 223 1,318 Balance, end of period $ 15,290 $ 29,425 $ 3,189 $ 5,551 $ 3,953 $ 7,542 $ 64,950 The Company utilizes a combination of models which measure probability of default and loss given default 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 determines 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 rate, 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. 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 June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (dollars in thousands) Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Commercial: Commercial $ 6,329 $ — $ 6,329 $ 3,560 $ — $ 3,560 Commercial other 7,874 — 7,874 4,941 — 4,941 Commercial real estate: Commercial real estate non-owner occupied 13,061 7,648 20,709 1,614 14,098 15,712 Commercial real estate owner occupied 10,827 — 10,827 4,276 6,500 10,776 Multi-family 3,547 16,997 20,544 240 6,015 6,255 Farmland 1,301 — 1,301 1,148 — 1,148 Construction and land development 15,724 10,594 26,318 39 — 39 Total commercial loans 58,663 35,239 93,902 15,818 26,613 42,431 Residential real estate: Residential first lien 3,285 455 3,740 2,583 490 3,073 Other residential 609 — 609 635 — 635 Consumer: Consumer 77 — 77 134 — 134 Lease financing 12,115 15 12,130 9,097 36 9,133 Total loans $ 74,749 $ 35,709 $ 110,458 $ 28,267 $ 27,139 $ 55,406 There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2024 and 2023 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 $2.3 million and $3.6 million for the three and six months ended June 30, 2024 and $0.8 million and $1.6 million for the three and six months ended June 30, 2023, respectively. Collateral Dependent Financial Assets A collateral dependent financial asset is a loan that 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 amortized cost basis of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of June 30, 2024 and December 31, 2023: Type of Collateral (dollars in thousands) Real Estate Blanket Lien Equipment Total June 30, 2024 Commercial: Commercial $ — $ 3,622 $ — $ 3,622 Commercial other — — 765 765 Commercial real estate: Non-owner occupied 19,136 — — 19,136 Owner occupied 9,285 — — 9,285 Multi-family 20,453 — — 20,453 Construction and land development 26,278 — — 26,278 Lease financing — — 1,139 1,139 Total collateral dependent loans $ 75,152 $ 3,622 $ 1,904 $ 80,678 December 31, 2023 Commercial: Commercial $ — $ — $ 1,972 $ 1,972 Commercial other — — 1,232 1,232 Commercial real estate: Non-owner occupied 14,147 — — 14,147 Owner occupied 9,275 — — 9,275 Multi-family 5,143 — — 5,143 Total collateral dependent loans $ 28,565 $ — $ 3,204 $ 31,769 The aging status of the recorded investment in loans by portfolio as of June 30, 2024 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 days past due Past due Total Nonaccrual Current Total Commercial: Commercial $ 9,389 $ 564 $ — $ 9,953 $ 6,329 $ 813,606 $ 829,888 Commercial other 11,730 3,630 840 16,200 7,874 546,905 570,979 Commercial real estate: Commercial real estate non-owner occupied 65 — — 65 20,709 1,600,328 1,621,102 Commercial real estate owner occupied 7,635 264 — 7,899 10,827 419,391 438,117 Multi-family — — — — 20,544 273,319 293,863 Farmland — — — — 1,301 67,122 68,423 Construction and land development — — — — 26,318 450,210 476,528 Total commercial loans 28,819 4,458 840 34,117 93,902 4,170,881 4,298,900 Residential real estate: Residential first lien 423 — 510 933 3,740 310,366 315,039 Other residential 49 9 — 58 609 62,687 63,354 Consumer: Consumer 109 11 — 120 77 94,566 94,763 Consumer other 6,097 3,740 — 9,837 — 641,442 651,279 Lease financing 6,743 3,587 316 10,646 12,130 405,883 428,659 Total loans $ 42,240 $ 11,805 $ 1,666 $ 55,711 $ 110,458 $ 5,685,825 $ 5,851,994 The aging status of the recorded investment in loans by portfolio as of December 31, 2023 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual Current Total Commercial: Commercial $ 9,340 $ 504 $ — $ 9,844 $ 3,560 $ 812,534 $ 825,938 Commercial other 11,156 5,990 781 17,927 4,941 633,724 656,592 Commercial real estate: Commercial real estate non-owner occupied 384 — — 384 15,712 1,606,572 1,622,668 Commercial real estate owner occupied — — — — 10,776 426,081 436,857 Multi-family 14,506 8,140 — 22,646 6,255 251,003 279,904 Farmland — 120 — 120 1,148 66,148 67,416 Construction and land development 211 10,593 — 10,804 39 441,750 452,593 Total commercial loans 35,597 25,347 781 61,725 42,431 4,237,812 4,341,968 Residential real estate: Residential first lien 69 299 161 529 3,073 313,786 317,388 Other residential 100 50 — 150 635 62,410 63,195 Consumer: Consumer 62 20 — 82 134 107,527 107,743 Consumer other 7,225 4,561 3 11,789 — 815,646 827,435 Lease financing 7,622 1,826 — 9,448 9,133 454,769 473,350 Total loans $ 50,675 $ 32,103 $ 945 $ 83,723 $ 55,406 $ 5,991,950 $ 6,131,079 Loan Restructurings The Company may offer various types of concessions when a borrower is experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows including principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Commercial and industrial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Loans modified in a loan restructuring for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for loans that have been modified in a loan restructuring is measured based on the probability of default and loss given default model, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Company evaluates the loan for possible further loss. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. The following table represents, by loan portfolio segment, a summary of the loan restructuring for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars in thousands) Balance Count Balance Count Balance Count Balance Count Commercial: Commercial other $ 1,161 8 $ 500 3 $ 1,907 12 $ 600 5 Commercial real estate: Commercial real estate non-owner occupied 6,456 1 — — 6,456 1 — — Total commercial loans 7,617 9 500 3 8,363 13 600 5 Residential real estate: Residential first lien 66 1 — — 66 1 — — Other residential 81 2 — — 81 2 — — Consumer: Consumer 26 1 — — 26 1 — — Lease financing 1,416 6 — — 2,132 9 — — Total loan restructurings $ 9,206 19 $ 500 3 $ 10,668 26 $ 600 5 Balance Count Balance Count Balance Count Balance Count Interest Rate Reduction $ 480 2 $ — — $ 480 2 $ — — Term Extension 2,209 14 500 3 3,671 21 600 5 Forgiveness of Principal or Interest — — — — — — — — Other 6,517 3 — — 6,517 3 — — Total loan restructurings $ 9,206 19 $ 500 3 $ 10,668 26 $ 600 5 The Company has not committed to lend any additional amounts to the borrowers that have been granted a loan modification. 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 geographic regions. 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 June 30, 2024 and December 31, 2023: June 30, 2024 Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 65,586 $ 160,781 $ 70,501 $ 61,312 $ 30,738 $ 48,184 $ 361,666 $ 798,768 Special mention — — — — — 157 260 417 Substandard 1,349 3,080 12,974 420 301 1,589 4,661 24,374 Substandard – nonaccrual — 853 385 570 — 3,859 662 6,329 Doubtful — — — — — — — — Not graded — — — — — — — Subtotal 66,935 164,714 83,860 62,302 31,039 53,789 367,249 829,888 Commercial other Acceptable credit quality 50,149 107,601 160,250 78,838 41,032 40,630 81,279 559,779 Special mention 2 193 1,328 356 93 69 1,039 3,080 Substandard — 34 — — — — 212 246 Substandard – nonaccrual — 3,132 2,888 918 137 683 116 7,874 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 50,151 110,960 164,466 80,112 41,262 41,382 82,646 570,979 Commercial real estate Non-owner occupied Acceptable credit quality 271,768 179,078 526,050 281,470 86,463 171,819 8,107 1,524,755 Special mention — 4,367 — 179 447 185 — 5,178 Substandard 23,472 9,912 11,517 — 4,668 20,891 — 70,460 Substandard – nonaccrual — — — 91 860 19,758 — 20,709 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 295,240 193,357 537,567 281,740 92,438 212,653 8,107 1,621,102 Owner occupied Acceptable credit quality 22,055 38,924 97,801 105,249 46,926 88,723 792 400,470 Special mention — — — 126 — 535 2 663 Substandard — 5,666 7,635 264 — 12,592 — 26,157 Substandard – nonaccrual 108 98 8,570 — 22 1,725 304 10,827 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 22,163 44,688 114,006 105,639 46,948 103,575 1,098 438,117 Multi-family Acceptable credit quality 60,108 12,809 118,073 25,443 27,755 20,646 296 265,130 Special mention — — — — — — — — Substandard 8,140 — — — — 49 — 8,189 Substandard – nonaccrual 91 1,616 — 899 — 17,938 — 20,544 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 68,339 14,425 118,073 26,342 27,755 38,633 296 293,863 Farmland Acceptable credit quality 3,011 9,674 4,636 14,535 11,402 20,824 1,460 65,542 Special mention — — — 1,451 — — — 1,451 Substandard — — — 14 — 115 — 129 Substandard – nonaccrual — — — 116 — 1,137 48 1,301 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 3,011 9,674 4,636 16,116 11,402 22,076 1,508 68,423 Construction and land development Acceptable credit quality 23,239 71,328 232,968 68,230 — 1,478 28,510 425,753 Special mention — — 9,851 5,324 — 40 — 15,215 Substandard — — — 6,000 — — — 6,000 Substandard – nonaccrual — — 10,594 15,684 — 39 — 26,317 Doubtful — — — — — — — — Not graded 1,175 1,285 406 354 — 23 — 3,243 Subtotal 24,414 72,613 253,819 95,592 — 1,580 28,510 476,528 Total Acceptable credit quality 495,916 580,195 1,210,279 635,077 244,316 392,304 482,110 4,040,197 Special mention 2 4,560 11,179 7,436 540 986 1,301 26,004 Substandard 32,961 18,692 32,126 6,698 4,969 35,236 4,873 135,555 Substandard – nonaccrual 199 5,699 22,437 18,278 1,019 45,139 1,130 93,901 Doubtful — — — — — — — — Not graded 1,175 1,285 406 354 — 23 — 3,243 Total commercial loans $ 530,253 $ 610,431 $ 1,276,427 $ 667,843 $ 250,844 $ 473,688 $ 489,414 $ 4,298,900 December 31, 2023 Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 157,498 $ 96,295 $ 71,366 $ 36,680 $ 14,688 $ 42,827 $ 369,297 $ 788,651 Special mention 3,015 450 4 — 181 43 983 4,676 Substandard 4,485 13,651 420 342 253 4,961 4,940 29,052 Substandard – nonaccrual 1,238 — 1,321 25 79 360 536 3,559 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 166,236 110,396 73,111 37,047 15,201 48,191 375,756 825,938 Commercial other Acceptable credit quality 139,057 195,726 100,946 59,392 32,848 28,946 90,928 647,843 Special mention — 532 399 114 107 4 1,682 2,838 Substandard 37 220 — — — — 639 896 Substandard – nonaccrual 1,819 1,918 449 184 361 94 116 4,941 Doubtful — — — — — — — — Not graded 74 — — — — — — 74 Subtotal 140,987 198,396 101,794 59,690 33,316 29,044 93,365 656,592 Commercial real estate Non-owner occupied Acceptable credit quality 237,215 653,057 309,013 110,743 82,563 124,430 6,328 1,523,349 Special mention 4,480 — 181 457 — 274 — 5,392 Substandard 35,811 1,658 — — 17,835 22,911 — 78,215 Substandard – nonaccrual 5,573 — 154 999 7,597 1,389 — 15,712 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 283,079 654,715 309,348 112,199 107,995 149,004 6,328 1,622,668 Owner occupied Acceptable credit quality 32,972 100,893 113,264 48,415 23,671 77,854 1,803 398,872 Special mention 5,750 — 129 — 149 177 8 6,213 Substandard — 7,716 265 — 705 12,310 — 20,996 Substandard – nonaccrual 126 9,431 28 171 27 689 304 10,776 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 38,848 118,040 113,686 48,586 24,552 91,030 2,115 436,857 Multi-family Acceptable credit quality 4,483 170,519 25,835 28,137 10,185 11,538 254 250,951 Special mention — — — — — — — — Substandard 8,140 — — — — 14,558 — 22,698 Substandard – nonaccrual 1,700 — 899 — 104 3,552 — 6,255 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 14,323 170,519 26,734 28,137 10,289 29,648 254 279,904 Farmland Acceptable credit quality 10,104 4,735 13,405 12,255 3,723 18,636 1,439 64,297 Special mention — — 1,451 — — 96 — 1,547 Substandard — — 133 — 22 269 — 424 Substandard – nonaccrual — — — — — 1,100 48 1,148 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 10,104 4,735 14,989 12,255 3,745 20,101 1,487 67,416 Construction and land development Acceptable credit quality 65,538 233,660 88,047 — 677 916 29,385 418,223 Special mention — — — — — 40 — 40 Substandard — — 16,594 — — — 15,349 31,943 Substandard – nonaccrual — — — — — 39 — 39 Doubtful — — — — — — — — Not graded 1,535 432 356 — — 25 — 2,348 Subtotal 67,073 234,092 104,997 — 677 1,020 44,734 452,593 Total Acceptable credit quality 646,867 1,454,885 721,876 295,622 168,355 305,147 499,434 4,092,186 Special mention 13,245 982 2,164 571 437 634 2,673 20,706 Substandard 48,473 23,245 17,412 342 18,815 55,009 20,928 184,224 Substandard – nonaccrual 10,456 11,349 2,851 1,379 8,168 7,223 1,004 42,430 Doubtful — — — — — — — — Not graded 1,609 432 356 — — 25 — 2,422 Total commercial loans $ 720,650 $ 1,490,893 $ 744,659 $ 297,914 $ 195,775 $ 368,038 $ 524,039 $ 4,341,968 The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three and six months ended June 30, 2024: Term Loans by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Total For the three months ended June 30, 2024 Commercial Commercial $ — $ 475 $ — $ 750 $ — $ 14 $ — $ 1,239 Commercial Other — 579 937 127 3 83 — 1,729 Commercial Real Estate Non-owner occupied — — — — — 5 — 5 Total gross commercial charge-offs $ — $ 1,054 $ 937 $ 877 $ 3 $ 102 $ — $ 2,973 For the six months ended June 30, 2024 Commercial Commercial $ — $ 475 $ — $ 750 $ 10 $ 14 $ 103 $ 1,352 Commercial Other — 1,445 2,011 421 23 126 — 4,026 Commercial Real Estate Non-owner occupied — — — — 138 558 — 696 Total gross commercial charge-offs $ — $ 1,920 $ 2,011 $ 1,171 $ 171 $ 698 $ 103 $ 6,074 The Company evaluates the credit quality of its other loan portfolios, 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 and loans past due 90 days or more and still accruing interest 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 as of June 30, 2024 and December 31, 2023: June 30, 2024 Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans |
PREMISES, EQUIPMENT AND LEASES
PREMISES, EQUIPMENT AND LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, EQUIPMENT AND LEASES | PREMISES, EQUIPMENT AND LEASES A summary of premises, equipment and leases at June 30, 2024 and December 31, 2023 is as follows: June 30, December 31, (dollars in thousands) 2024 2023 Land $ 15,968 $ 15,968 Buildings and improvements 79,431 78,104 Furniture and equipment 35,766 35,797 Lease right-of-use assets 8,409 7,673 Total 139,574 137,542 Accumulated depreciation (56,534) (54,728) Premises and equipment, net $ 83,040 $ 82,814 Depreciation expense for the three and six months ended June 30, 2024 was $1.2 million and $2.5 million, respectively, and $1.2 million and $2.4 million for the three and six months ended June 30, 2023, respectively. The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 6 months to 14 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 in the remaining lease term if they are reasonably certain to be exercised. The Company had operating lease right-of-use assets of $8.4 million and $7.7 million as of June 30, 2024 and December 31, 2023, respectively, included in premises and equipment other liabilities Information related to operating leases for the three and six months ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Operating lease cost $ 481 $ 493 $ 957 $ 977 Operating cash flows from leases 577 590 1,149 1,180 Right-of-use assets obtained in exchange for lease obligations 1,317 218 1,539 1,348 Weighted average remaining lease term 7.37 years 8.0 years 7.37 years 8.0 years Weighted average discount rate 3.58 % 3.29 % 3.58 % 3.29 % The projected minimum rental payments under the terms of the leases as of June 30, 2024 were as follows: (dollars in thousands) Amount Year ending December 31: 2024 remaining $ 971 2025 1,652 2026 1,555 2027 1,413 2028 1,359 Thereafter 4,328 Total future minimum lease payments 11,278 Less imputed interest (1,427) Total operating lease liabilities $ 9,851 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS As part of the Company’s overall interest rate risk management, 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. The notional amount does not represent amounts exchanged by the parties, rather the amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities The Company issues interest rate lock commitments on originated fixed-rate 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 residential mortgage banking revenue in the consolidated statements of income. The following table summarizes 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 June 30, 2024 and December 31, 2023: Notional amount Fair value gain (loss) (dollars in thousands) June 30, December 31, June 30, December 31, Derivative instruments (included in other assets): Interest rate lock commitments $ 5,679 $ 2,405 $ 120 $ 62 Derivative instruments (included in other liabilities): Forward commitments to sell mortgage-backed securities 9,750 5,000 (13) (83) During the six months ended June 30, 2024, the Company recognized net gains of $0.1 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. There were no net gains or losses recognized during the three months ended June 30, 2024. During both the three and six months ended June 30, 2023, the Company recognized net gains of $0.1 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Cash Flow Hedges The Company periodically enters 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 underlying instruments related to these interest rate swap agreements include pools of commercial and commercial real estate loans, investment securities and borrowings. These hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms. The following table summarizes the Company's derivatives designated as hedges at June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 Notional Amount $ 425,000 $ 400,000 Fair value gain included in other assets 1,235 — Fair value loss included in other liabilities 7,820 8,443 Tax effected amount included in accumulated other comprehensive (loss) income (4,807) (6,164) Average remaining life in years 2.31 2.67 Weighted average pay rate 6.37 % 6.55 % Weighted average receive rate 5.40 % 5.41 % Interest Rate Swap Contracts Not Designated as Hedges 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 the customer derivative instruments and the offsetting counterparty derivative instruments were $6.7 million and $6.9 million at June 30, 2024 and December 31, 2023, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.4 million and $0.3 million at June 30, 2024 and December 31, 2023, respectively, which are included in other assets and other liabilities, as applicable, on the consolidated balance sheets. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2024 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The following table summarizes the classification of deposits as of June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 Noninterest-bearing demand $ 1,108,521 $ 1,145,395 Interest-bearing: Checking 2,343,533 2,511,840 Money market 1,143,668 1,135,629 Savings 538,462 559,267 Time 983,839 957,398 Total deposits $ 6,118,023 $ 6,309,529 |
FHLB ADVANCES AND OTHER BORROWI
FHLB ADVANCES AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2024 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
FHLB ADVANCES AND OTHER BORROWINGS | FHLB ADVANCES AND OTHER BORROWINGS The following table summarizes our FHLB advances and other borrowings as of June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 FHLB advances – fixed rate, fixed term at rates averaging 4.79% and 4.94% at June 30, 2024 and December 31, 2023 - maturing through April 2029 $ 150,000 $ 150,000 FHLB advances – putable fixed rate at rates averaging 3.34% and 3.07% at June 30, 2024 and December 31, 2023, respectively – maturing through May 2029 with call provisions through November 2024 130,000 160,000 FHLB advances – Short term fixed rate at rates of 5.41% and 5.45% at June 30, 2024 and December 31, 2023 – matured July 2024 320,000 166,000 Total FHLB advances and other borrowings $ 600,000 $ 476,000 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 approximately $2.94 billion and $2.98 billion at June 30, 2024 and December 31, 2023, respectively. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | SUBORDINATED DEBT The following table summarizes the Company’s subordinated debt at June 30, 2024 and December 31, 2023: Subordinated debt Fixed to Float (dollars in thousands) Issued September 2019 Issued September 2019 Total At June 30, 2024 Outstanding amount $ 64,750 $ 27,250 $ 92,000 Carrying amount 64,663 26,993 91,656 Current rate 5.00 % 5.50 % At December 31, 2023 Outstanding amount $ 66,750 $ 27,250 $ 94,000 Carrying amount 66,573 26,973 93,546 Current rate 5.00 % 5.50 % Maturity date 9/30/2029 9/30/2034 Optional redemption date 9/30/2024 9/30/2029 Fixed to variable conversion date 9/30/2024 9/30/2029 Variable rate 3-month SOFR plus 3.61% 3-month SOFR plus 4.05% Interest payment terms Semiannually Semiannually The value of subordinated debentures have been reduced by the debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date. All of the subordinated debentures above may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Earnings per common share is calculated utilizing the two-class method. Basic earnings per common share is 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 common share is 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. Presented below are the calculations for basic and diluted earnings per common share for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2024 2023 2024 2023 Net income $ 6,750 $ 21,575 $ 20,635 $ 43,347 Preferred dividends declared (2,228) (2,228) (4,456) (4,456) Net income available to common shareholders 4,522 19,347 16,179 38,891 Common shareholder dividends (6,661) (6,579) (13,327) (13,248) Unvested restricted stock award dividends (103) (80) (209) (160) Undistributed earnings to unvested restricted stock awards — (149) (40) (300) Undistributed earnings to common shareholders $ (2,242) $ 12,539 $ 2,603 $ 25,183 Basic Distributed earnings to common shareholders $ 6,661 $ 6,579 $ 13,327 $ 13,248 Undistributed (loss) earnings to common shareholders (2,242) 12,539 2,603 25,183 Total common shareholders earnings, basic $ 4,419 $ 19,118 $ 15,930 $ 38,431 Diluted Distributed earnings to common shareholders $ 6,661 $ 6,579 $ 13,327 $ 13,248 Undistributed (loss) earnings to common shareholders (2,242) 12,539 2,603 25,183 Total common shareholders earnings 4,419 19,118 15,930 38,431 Add back: Undistributed earnings reallocated from unvested restricted stock awards — — — — Total common shareholders earnings, diluted $ 4,419 $ 19,118 $ 15,930 $ 38,431 Weighted average common shares outstanding, basic 21,731,195 22,200,917 21,753,056 22,338,627 Dilutive effect of options 3,654 4,162 8,436 10,354 Weighted average common shares outstanding, diluted 21,734,849 22,205,079 21,761,492 22,348,981 Basic earnings per common share $ 0.20 $ 0.86 $ 0.73 $ 1.72 Diluted earnings per common share 0.20 0.86 0.73 1.72 Antidilutive stock options (1) 235,652 375,912 235,652 375,912 (1) The diluted earnings per common share computation excludes antidilutive stock options because the exercise prices of these stock options exceeded the average market prices of the Company's common shares for those respective periods. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS 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 period presented 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). Nonperforming loans. All of our nonaccrual loans are considered nonperforming and are reviewed individually for the amount of impairment, if any. We measure collateral dependent nonperforming loans based on the estimated fair value of such collateral. In cases where the Company has an agreed upon selling price for the collateral, the fair value is set at the selling price (Level 1). 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. Other Real Estate Owned. OREO 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. Fair value for OREO is based on an appraisal performed upon foreclosure. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. 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 (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 nonrecurring basis at June 30, 2024 and December 31, 2023, are summarized below: June 30, 2024 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 2,994 $ 2,994 $ — $ — U.S. government sponsored entities and U.S. agency securities 50,831 — 50,831 — Mortgage-backed securities - agency 704,176 — 704,176 — Mortgage-backed securities - non-agency 86,182 — 86,182 — State and municipal securities 66,151 — 66,151 — Corporate securities 84,799 — 84,799 — Other securities 99,958 — 99,958 — Equity securities 4,563 4,563 — — Loans held for sale 5,555 — 5,555 — Derivative assets 1,714 — 1,714 — Total $ 1,106,923 $ 7,557 $ 1,099,366 $ — Liabilities Derivative liabilities $ 8,192 $ — $ 8,192 $ — Total $ 8,192 $ — $ 8,192 $ — Assets measured at fair value on a non-recurring basis: Nonperforming loans $ 68,437 $ — $ 64,167 $ 4,270 Other real estate owned 8,304 — 8,304 — December 31, 2023 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 1,097 $ 1,097 $ — $ — U.S. government sponsored entities and U.S. agency securities 72,572 — 72,572 — Mortgage-backed securities - agency 574,500 — 574,500 — Mortgage-backed securities - non-agency 83,529 — 83,529 — State and municipal securities 57,460 — 57,460 — Corporate securities 99,172 — 99,172 — Equity securities 4,501 4,501 — — Loans held for sale 3,811 — 3,811 — Derivative assets 372 — 372 — Total $ 924,579 $ 5,598 $ 918,981 $ — Liabilities Derivative liabilities $ 8,836 $ — $ 8,836 $ — Total $ 8,836 $ — $ 8,836 $ — Assets measured at fair value on a non-recurring basis: Nonperforming loans $ 4,633 $ — $ 3,964 $ 669 Other real estate owned 9,112 — 9,112 — The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Nonperforming loans $ 3,647 $ 3,573 13,870 4,676 Other real estate owned 730 — 730 — Total losses on assets measured on a nonrecurring basis $ 4,377 $ 3,573 $ 14,600 $ 4,676 The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2024 and December 31, 2023: (dollars in thousands) Fair value Valuation Unobservable Range (weighted average) (1) June 30, 2024 Nonperforming loans $ 4,270 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 19.32% - 25.69% (22.72%) December 31, 2023 Nonperforming loans $ 669 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 24.38% - 100.00% (27.46%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. 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 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 as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (dollars in thousands) Aggregate Difference Contractual Aggregate Difference Contractual Residential loans held for sale $ 5,555 $ 251 $ 5,304 $ 3,811 $ 203 $ 3,608 The following table presents the amount of gains from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Residential loans held for sale $ (1) $ 50 17 149 The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 123,719 $ 123,719 $ 123,719 $ — $ — Federal funds sold 927 927 927 — — Loans 5,851,994 5,741,200 — — 5,741,200 Accrued interest receivable 25,756 25,756 — 25,756 — Liabilities Deposits $ 6,118,023 $ 6,098,416 $ — $ 6,098,416 $ — Short-term borrowings 7,208 7,208 — 7,208 — FHLB and other borrowings 600,000 598,416 — 598,416 — Subordinated debt 91,656 84,135 — 84,135 — Trust preferred debentures 50,921 53,848 — 53,848 — December 31, 2023 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 134,212 $ 134,212 $ 134,212 $ — $ — Federal funds sold 849 849 849 — — Loans 6,131,079 6,129,244 — — 6,129,244 Accrued interest receivable 24,934 24,934 — 24,934 — Liabilities Deposits $ 6,309,529 $ 6,294,979 $ — $ 6,294,979 $ — Short-term borrowings 34,865 34,865 25,000 9,865 — FHLB and other borrowings 476,000 475,240 — 475,240 — Subordinated debt 93,546 90,253 — 90,253 — Trust preferred debentures 50,616 51,626 — 51,626 — The methods utilized to measure fair value of financial instruments at June 30, 2024 and December 31, 2023 represent an approximation of exit price; however, an actual exit price may differ. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | COMMITMENTS, CONTINGENCIES AND CREDIT RISK 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. During the second quarter of 2024, the Company recorded an accrual related to various legal actions. No other 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 as of June 30, 2024 and December 31, 2023 were as follows: (dollars in thousands) June 30, 2024 December 31, 2023 Commitments to extend credit $ 756,302 $ 855,489 Financial guarantees – standby letters of credit 23,502 22,745 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 2024 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 three and six months ended June 30, 2024 and 2023. The liability for unresolved repurchase demands totaled $0.1 million at both June 30, 2024 and December 31, 2023. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of the Company. Management has determined that the Company has three reportable segments consisting of Banking, Wealth Management and Corporate. The Banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment financing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services. The Wealth Management segment consists of trust and fiduciary services, brokerage and retirement planning services. The Corporate segment includes the holding company financing and investment activities, administrative expenses, as well as the elimination of intercompany transactions. The Corporate segment also included our captive insurance business unit for the six months ended June 30, 2023. This business was dissolved as of December 31, 2023. Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2023 Form 10-K. Transactions between segments consist primarily of borrowed funds and servicing fees. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Banking segment. Selected business segment financial information for the three and six months ended June 30, 2024 and 2023 were as follows: (dollars in thousands) Banking Wealth Corporate Total Three Months Ended June 30, 2024 Net interest income (expense) $ 57,223 $ (12) $ (2,159) $ 55,052 Provision for credit losses 16,800 — — 16,800 Noninterest income 10,875 6,801 (20) 17,656 Noninterest expense 42,792 5,342 (655) 47,479 Income (loss) before income taxes (benefit) 8,506 1,447 (1,524) 8,429 Income taxes (benefit) 1,704 618 (643) 1,679 Net income (loss) $ 6,802 $ 829 $ (881) $ 6,750 Total assets $ 7,734,375 $ 34,940 $ (12,041) $ 7,757,274 Six Months Ended June 30, 2024 Net interest income (expense) $ 115,439 $ (20) $ (4,447) $ 110,972 Provision for credit losses 30,800 — — 30,800 Noninterest income 25,366 13,933 (456) 38,843 Noninterest expense 82,890 10,754 (1,298) 92,346 Income (loss) before income taxes (benefit) 27,115 3,159 (3,605) 26,669 Income taxes (benefit) 6,165 1,308 (1,439) 6,034 Net income (loss) $ 20,950 $ 1,851 $ (2,166) $ 20,635 Total assets $ 7,734,375 $ 34,940 $ (12,041) $ 7,757,274 Three Months Ended June 30, 2023 Net interest income (expense) $ 61,035 $ — $ (2,195) $ 58,840 Provision for credit losses 5,879 — — 5,879 Noninterest income 11,874 6,269 610 18,753 Noninterest expense 38,550 4,675 (331) 42,894 Income (loss) before income taxes (benefit) 28,480 1,594 (1,254) 28,820 Income taxes (benefit) 7,326 445 (526) 7,245 Net income (loss) $ 21,154 $ 1,149 $ (728) $ 21,575 Total assets $ 8,025,617 $ 30,249 $ (21,145) $ 8,034,721 Six Months Ended June 30, 2023 Net interest income (expense) $ 123,643 $ — $ (4,299) $ 119,344 Provision for credit losses 9,014 — — 9,014 Noninterest income 21,495 12,680 357 34,532 Noninterest expense 78,397 9,516 (537) 87,376 Income (loss) before income taxes (benefit) 57,727 3,164 (3,405) 57,486 Income taxes (benefit) 14,532 884 (1,277) 14,139 Net income (loss) $ 43,195 $ 2,280 $ (2,128) $ 43,347 Total assets $ 8,025,617 $ 30,249 $ (21,145) $ 8,034,721 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS 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 three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 5,853 $ 5,356 $ 12,120 $ 10,992 Investment advisory and brokerage fees 500 430 923 861 Other 448 483 890 827 Service charges on deposit accounts: Nonsufficient fund fees 1,836 1,741 3,658 3,439 Other 1,285 936 2,579 1,806 Interchange revenues 3,563 3,696 6,921 7,108 Other income: Merchant services revenue 357 398 701 756 Other 513 1,403 612 2,033 Noninterest income - out-of-scope of Topic 606 3,301 4,310 10,439 6,710 Total noninterest income $ 17,656 $ 18,753 $ 38,843 $ 34,532 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 Topic 606. 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 noninterest income streams considered in-scope by Topic 606 are discussed 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 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, gain on sales of other real estate owned and other noninterest related fees. 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 6,750 | $ 21,575 | $ 20,635 | $ 43,347 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
BUSINESS DESCRIPTION [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and guidance provided by the SEC for interim financial information. Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for completed financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. The consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Certain reclassifications of 2023 amounts have been made to conform to the 2024 presentation. All significant transactions and accounts between subsidiaries have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period. |
Accounting Guidance Adopted in 2024 | Accounting Guidance Adopted in 2024 FASB ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – In March 2023, the FASB issued ASU No. 2023-02, which allows for reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the type of program the tax credits are related to. The ASU is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance on January 1, 2024 on a prospective basis. The adoption of this accounting pronouncement did not have a material impact on the consolidated financial statements. Accounting Guidance Not Yet Adopted FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures - In December 2023, the FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity's chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis.The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will update the related disclosures upon adoption. FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. The pronouncement also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities Classified as Available for Sale | Investment securities available for sale at June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 (dollars in thousands) Amortized Gross Gross Fair Investment securities available for sale U.S. Treasury securities $ 2,995 $ — $ 1 $ 2,994 U.S. government sponsored entities and U.S. agency securities 52,440 131 1,740 50,831 Mortgage-backed securities - agency 790,311 882 87,017 704,176 Mortgage-backed securities - non-agency 89,379 596 3,793 86,182 State and municipal securities 73,063 160 7,072 66,151 Corporate securities 93,459 12 8,672 84,799 Other securities (1) 99,982 113 137 99,958 Total available for sale securities $ 1,201,629 $ 1,894 $ 108,432 $ 1,095,091 (1) The fair value of other securities includes student loan asset backed securities of $63.5 million and structured financial products of $36.5 million. December 31, 2023 (dollars in thousands) Amortized Gross Gross Fair Investment securities available for sale U.S. Treasury securities $ 1,097 $ — $ — $ 1,097 U.S. government sponsored entities and U.S. agency securities 74,161 176 1,765 72,572 Mortgage-backed securities - agency 650,119 2,325 77,944 574,500 Mortgage-backed securities - non-agency 87,019 414 3,904 83,529 State and municipal securities 62,952 258 5,750 57,460 Corporate securities 109,598 41 10,467 99,172 Other securities (1) 27,646 3 84 27,565 Total available for sale securities $ 1,012,592 $ 3,217 $ 99,914 $ 915,895 (1) The fair value of other securities includes structured financial products of $27.6 million. |
Schedule of Debt Securities, Available-for-sale | The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at June 30, 2024. 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 $ 4,031 $ 4,020 After one year through five years 72,993 70,366 After five years through ten years 150,875 138,034 After ten years 94,040 92,313 Mortgage-backed securities 879,690 790,358 Total available for sale securities $ 1,201,629 $ 1,095,091 Proceeds and gross realized gains and losses on sales of investment securities available for sale for the three and six months ended June 30, 2024 and 2023 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Investment securities available for sale Proceeds from sales $ 45,825 $ 15,467 $ 45,825 $ 99,960 Gross realized gains on sales 307 — 307 338 Gross realized losses on sales (459) (869) (459) (1,855) |
Schedule of Unrealized Losses and Fair Values for Investment Securities | Unrealized losses and fair values for investment securities available for sale as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: June 30, 2024 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 $ 2,994 $ 1 $ — $ — $ 2,994 $ 1 U.S. government sponsored entities and U.S. agency securities 36,004 86 8,346 1,654 44,350 1,740 Mortgage-backed securities - agency 189,165 5,139 404,360 81,878 593,525 87,017 Mortgage-backed securities - non-agency 12,911 183 18,476 3,610 31,387 3,793 State and municipal securities 57,644 6,845 1,387 227 59,031 7,072 Corporate securities 26,780 2,554 55,007 6,118 81,787 8,672 Other securities 65,687 137 — — 65,687 137 Total available for sale securities $ 391,185 $ 14,945 $ 487,576 $ 93,487 $ 878,761 $ 108,432 December 31, 2023 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 $ 42,826 $ 87 $ 8,323 $ 1,678 $ 51,149 $ 1,765 Mortgage-backed securities - agency 130,106 7,386 348,476 70,558 478,582 77,944 Mortgage-backed securities - non-agency 8,852 353 19,418 3,551 28,270 3,904 State and municipal securities 51,497 5,750 — — 51,497 5,750 Corporate securities 4,688 53 84,662 10,414 89,350 10,467 Other securities 14,763 84 — — 14,763 84 Total available for sale securities $ 252,732 $ 13,713 $ 460,879 $ 86,201 $ 713,611 $ 99,914 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loans | The following table presents total loans outstanding by portfolio class, as of June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Commercial: Commercial $ 829,888 $ 825,938 Commercial other 570,979 656,592 Commercial real estate: Commercial real estate non-owner occupied 1,621,102 1,622,668 Commercial real estate owner occupied 438,117 436,857 Multi-family 293,863 279,904 Farmland 68,423 67,416 Construction and land development 476,528 452,593 Total commercial loans 4,298,900 4,341,968 Residential real estate: Residential first lien 315,039 317,388 Other residential 63,354 63,195 Consumer: Consumer 94,763 107,743 Consumer other 651,279 827,435 Lease financing 428,659 473,350 Total loans $ 5,851,994 $ 6,131,079 |
Schedule of Changes in Financing Receivable Related Parties Roll Forward | The new loans, other additions, repayments and other reductions for the three and six months ended June 30, 2024 and 2023, are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Beginning balance $ 20,726 $ 19,519 $ 20,990 $ 19,776 New loans and other additions 500 2,367 500 2,367 Repayments and other reductions (332) (317) (596) (574) Ending balance $ 20,894 $ 21,569 $ 20,894 $ 21,569 |
Summary of Changes in Allowance for Loan Losses, by Loan Portfolio | The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2024 and 2023: Commercial Loan Portfolio Other Loan Portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total Changes in allowance for credit losses on loans for the three months ended June 30, 2024: Balance, beginning of period $ 21,329 $ 21,367 $ 12,629 $ 5,655 $ 3,611 $ 13,466 $ 78,057 Provision for credit losses on loans 5,733 (1,253) 336 (475) 10,817 1,842 17,000 Charge-offs (2,968) (5) — — (199) (2,084) (5,256) Recoveries 153 2,088 1 13 63 64 2,382 Balance, end of period $ 24,247 $ 22,197 $ 12,966 $ 5,193 $ 14,292 $ 13,288 $ 92,183 Changes in allowance for credit losses on loans for the six months ended June 30, 2024: Balance, beginning of period $ 21,847 $ 20,229 $ 4,163 $ 5,553 $ 3,770 $ 12,940 $ 68,502 Provision for credit losses on loans 7,509 424 8,802 (393) 10,806 3,852 31,000 Charge-offs (5,378) (696) — (35) (434) (3,749) (10,292) Recoveries 269 2,240 1 68 150 245 2,973 Balance, end of period $ 24,247 $ 22,197 $ 12,966 $ 5,193 $ 14,292 $ 13,288 $ 92,183 Changes in allowance for credit losses on loans for the three months ended June 30, 2023: Balance, beginning of period $ 15,762 $ 28,216 $ 2,442 $ 4,350 $ 4,129 $ 7,168 $ 62,067 Provision for credit losses on loans 196 2,427 1,049 1,207 4 996 5,879 Charge-offs (1,071) (1,544) (334) (54) (260) (771) (4,034) Recoveries 403 326 32 48 80 149 1,038 Balance, end of period $ 15,290 $ 29,425 $ 3,189 $ 5,551 $ 3,953 $ 7,542 $ 64,950 Changes in allowance for credit losses on loans for the six months ended June 30, 2023: Balance, beginning of period $ 14,639 $ 29,290 $ 2,435 $ 4,301 $ 3,599 $ 6,787 $ 61,051 Provision for credit losses on loans 2,194 2,097 1,056 1,270 704 1,693 9,014 Charge-offs (2,040) (2,290) (334) (85) (523) (1,161) (6,433) Recoveries 497 328 32 65 173 223 1,318 Balance, end of period $ 15,290 $ 29,425 $ 3,189 $ 5,551 $ 3,953 $ 7,542 $ 64,950 |
Schedule of 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 June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (dollars in thousands) Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Commercial: Commercial $ 6,329 $ — $ 6,329 $ 3,560 $ — $ 3,560 Commercial other 7,874 — 7,874 4,941 — 4,941 Commercial real estate: Commercial real estate non-owner occupied 13,061 7,648 20,709 1,614 14,098 15,712 Commercial real estate owner occupied 10,827 — 10,827 4,276 6,500 10,776 Multi-family 3,547 16,997 20,544 240 6,015 6,255 Farmland 1,301 — 1,301 1,148 — 1,148 Construction and land development 15,724 10,594 26,318 39 — 39 Total commercial loans 58,663 35,239 93,902 15,818 26,613 42,431 Residential real estate: Residential first lien 3,285 455 3,740 2,583 490 3,073 Other residential 609 — 609 635 — 635 Consumer: Consumer 77 — 77 134 — 134 Lease financing 12,115 15 12,130 9,097 36 9,133 Total loans $ 74,749 $ 35,709 $ 110,458 $ 28,267 $ 27,139 $ 55,406 The following table represents, by loan portfolio segment, a summary of the loan restructuring for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars in thousands) Balance Count Balance Count Balance Count Balance Count Commercial: Commercial other $ 1,161 8 $ 500 3 $ 1,907 12 $ 600 5 Commercial real estate: Commercial real estate non-owner occupied 6,456 1 — — 6,456 1 — — Total commercial loans 7,617 9 500 3 8,363 13 600 5 Residential real estate: Residential first lien 66 1 — — 66 1 — — Other residential 81 2 — — 81 2 — — Consumer: Consumer 26 1 — — 26 1 — — Lease financing 1,416 6 — — 2,132 9 — — Total loan restructurings $ 9,206 19 $ 500 3 $ 10,668 26 $ 600 5 Balance Count Balance Count Balance Count Balance Count Interest Rate Reduction $ 480 2 $ — — $ 480 2 $ — — Term Extension 2,209 14 500 3 3,671 21 600 5 Forgiveness of Principal or Interest — — — — — — — — Other 6,517 3 — — 6,517 3 — — Total loan restructurings $ 9,206 19 $ 500 3 $ 10,668 26 $ 600 5 |
Schedule of Collateral Dependent Loans | The table below presents the amortized cost basis of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of June 30, 2024 and December 31, 2023: Type of Collateral (dollars in thousands) Real Estate Blanket Lien Equipment Total June 30, 2024 Commercial: Commercial $ — $ 3,622 $ — $ 3,622 Commercial other — — 765 765 Commercial real estate: Non-owner occupied 19,136 — — 19,136 Owner occupied 9,285 — — 9,285 Multi-family 20,453 — — 20,453 Construction and land development 26,278 — — 26,278 Lease financing — — 1,139 1,139 Total collateral dependent loans $ 75,152 $ 3,622 $ 1,904 $ 80,678 December 31, 2023 Commercial: Commercial $ — $ — $ 1,972 $ 1,972 Commercial other — — 1,232 1,232 Commercial real estate: Non-owner occupied 14,147 — — 14,147 Owner occupied 9,275 — — 9,275 Multi-family 5,143 — — 5,143 Total collateral dependent loans $ 28,565 $ — $ 3,204 $ 31,769 |
Schedule 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 June 30, 2024 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 days past due Past due Total Nonaccrual Current Total Commercial: Commercial $ 9,389 $ 564 $ — $ 9,953 $ 6,329 $ 813,606 $ 829,888 Commercial other 11,730 3,630 840 16,200 7,874 546,905 570,979 Commercial real estate: Commercial real estate non-owner occupied 65 — — 65 20,709 1,600,328 1,621,102 Commercial real estate owner occupied 7,635 264 — 7,899 10,827 419,391 438,117 Multi-family — — — — 20,544 273,319 293,863 Farmland — — — — 1,301 67,122 68,423 Construction and land development — — — — 26,318 450,210 476,528 Total commercial loans 28,819 4,458 840 34,117 93,902 4,170,881 4,298,900 Residential real estate: Residential first lien 423 — 510 933 3,740 310,366 315,039 Other residential 49 9 — 58 609 62,687 63,354 Consumer: Consumer 109 11 — 120 77 94,566 94,763 Consumer other 6,097 3,740 — 9,837 — 641,442 651,279 Lease financing 6,743 3,587 316 10,646 12,130 405,883 428,659 Total loans $ 42,240 $ 11,805 $ 1,666 $ 55,711 $ 110,458 $ 5,685,825 $ 5,851,994 The aging status of the recorded investment in loans by portfolio as of December 31, 2023 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual Current Total Commercial: Commercial $ 9,340 $ 504 $ — $ 9,844 $ 3,560 $ 812,534 $ 825,938 Commercial other 11,156 5,990 781 17,927 4,941 633,724 656,592 Commercial real estate: Commercial real estate non-owner occupied 384 — — 384 15,712 1,606,572 1,622,668 Commercial real estate owner occupied — — — — 10,776 426,081 436,857 Multi-family 14,506 8,140 — 22,646 6,255 251,003 279,904 Farmland — 120 — 120 1,148 66,148 67,416 Construction and land development 211 10,593 — 10,804 39 441,750 452,593 Total commercial loans 35,597 25,347 781 61,725 42,431 4,237,812 4,341,968 Residential real estate: Residential first lien 69 299 161 529 3,073 313,786 317,388 Other residential 100 50 — 150 635 62,410 63,195 Consumer: Consumer 62 20 — 82 134 107,527 107,743 Consumer other 7,225 4,561 3 11,789 — 815,646 827,435 Lease financing 7,622 1,826 — 9,448 9,133 454,769 473,350 Total loans $ 50,675 $ 32,103 $ 945 $ 83,723 $ 55,406 $ 5,991,950 $ 6,131,079 |
Schedule of Loans Credit Equality Indicators | The following tables present the recorded investment of the commercial loan portfolio by risk category as of June 30, 2024 and December 31, 2023: June 30, 2024 Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 65,586 $ 160,781 $ 70,501 $ 61,312 $ 30,738 $ 48,184 $ 361,666 $ 798,768 Special mention — — — — — 157 260 417 Substandard 1,349 3,080 12,974 420 301 1,589 4,661 24,374 Substandard – nonaccrual — 853 385 570 — 3,859 662 6,329 Doubtful — — — — — — — — Not graded — — — — — — — Subtotal 66,935 164,714 83,860 62,302 31,039 53,789 367,249 829,888 Commercial other Acceptable credit quality 50,149 107,601 160,250 78,838 41,032 40,630 81,279 559,779 Special mention 2 193 1,328 356 93 69 1,039 3,080 Substandard — 34 — — — — 212 246 Substandard – nonaccrual — 3,132 2,888 918 137 683 116 7,874 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 50,151 110,960 164,466 80,112 41,262 41,382 82,646 570,979 Commercial real estate Non-owner occupied Acceptable credit quality 271,768 179,078 526,050 281,470 86,463 171,819 8,107 1,524,755 Special mention — 4,367 — 179 447 185 — 5,178 Substandard 23,472 9,912 11,517 — 4,668 20,891 — 70,460 Substandard – nonaccrual — — — 91 860 19,758 — 20,709 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 295,240 193,357 537,567 281,740 92,438 212,653 8,107 1,621,102 Owner occupied Acceptable credit quality 22,055 38,924 97,801 105,249 46,926 88,723 792 400,470 Special mention — — — 126 — 535 2 663 Substandard — 5,666 7,635 264 — 12,592 — 26,157 Substandard – nonaccrual 108 98 8,570 — 22 1,725 304 10,827 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 22,163 44,688 114,006 105,639 46,948 103,575 1,098 438,117 Multi-family Acceptable credit quality 60,108 12,809 118,073 25,443 27,755 20,646 296 265,130 Special mention — — — — — — — — Substandard 8,140 — — — — 49 — 8,189 Substandard – nonaccrual 91 1,616 — 899 — 17,938 — 20,544 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 68,339 14,425 118,073 26,342 27,755 38,633 296 293,863 Farmland Acceptable credit quality 3,011 9,674 4,636 14,535 11,402 20,824 1,460 65,542 Special mention — — — 1,451 — — — 1,451 Substandard — — — 14 — 115 — 129 Substandard – nonaccrual — — — 116 — 1,137 48 1,301 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 3,011 9,674 4,636 16,116 11,402 22,076 1,508 68,423 Construction and land development Acceptable credit quality 23,239 71,328 232,968 68,230 — 1,478 28,510 425,753 Special mention — — 9,851 5,324 — 40 — 15,215 Substandard — — — 6,000 — — — 6,000 Substandard – nonaccrual — — 10,594 15,684 — 39 — 26,317 Doubtful — — — — — — — — Not graded 1,175 1,285 406 354 — 23 — 3,243 Subtotal 24,414 72,613 253,819 95,592 — 1,580 28,510 476,528 Total Acceptable credit quality 495,916 580,195 1,210,279 635,077 244,316 392,304 482,110 4,040,197 Special mention 2 4,560 11,179 7,436 540 986 1,301 26,004 Substandard 32,961 18,692 32,126 6,698 4,969 35,236 4,873 135,555 Substandard – nonaccrual 199 5,699 22,437 18,278 1,019 45,139 1,130 93,901 Doubtful — — — — — — — — Not graded 1,175 1,285 406 354 — 23 — 3,243 Total commercial loans $ 530,253 $ 610,431 $ 1,276,427 $ 667,843 $ 250,844 $ 473,688 $ 489,414 $ 4,298,900 December 31, 2023 Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 157,498 $ 96,295 $ 71,366 $ 36,680 $ 14,688 $ 42,827 $ 369,297 $ 788,651 Special mention 3,015 450 4 — 181 43 983 4,676 Substandard 4,485 13,651 420 342 253 4,961 4,940 29,052 Substandard – nonaccrual 1,238 — 1,321 25 79 360 536 3,559 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 166,236 110,396 73,111 37,047 15,201 48,191 375,756 825,938 Commercial other Acceptable credit quality 139,057 195,726 100,946 59,392 32,848 28,946 90,928 647,843 Special mention — 532 399 114 107 4 1,682 2,838 Substandard 37 220 — — — — 639 896 Substandard – nonaccrual 1,819 1,918 449 184 361 94 116 4,941 Doubtful — — — — — — — — Not graded 74 — — — — — — 74 Subtotal 140,987 198,396 101,794 59,690 33,316 29,044 93,365 656,592 Commercial real estate Non-owner occupied Acceptable credit quality 237,215 653,057 309,013 110,743 82,563 124,430 6,328 1,523,349 Special mention 4,480 — 181 457 — 274 — 5,392 Substandard 35,811 1,658 — — 17,835 22,911 — 78,215 Substandard – nonaccrual 5,573 — 154 999 7,597 1,389 — 15,712 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 283,079 654,715 309,348 112,199 107,995 149,004 6,328 1,622,668 Owner occupied Acceptable credit quality 32,972 100,893 113,264 48,415 23,671 77,854 1,803 398,872 Special mention 5,750 — 129 — 149 177 8 6,213 Substandard — 7,716 265 — 705 12,310 — 20,996 Substandard – nonaccrual 126 9,431 28 171 27 689 304 10,776 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 38,848 118,040 113,686 48,586 24,552 91,030 2,115 436,857 Multi-family Acceptable credit quality 4,483 170,519 25,835 28,137 10,185 11,538 254 250,951 Special mention — — — — — — — — Substandard 8,140 — — — — 14,558 — 22,698 Substandard – nonaccrual 1,700 — 899 — 104 3,552 — 6,255 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 14,323 170,519 26,734 28,137 10,289 29,648 254 279,904 Farmland Acceptable credit quality 10,104 4,735 13,405 12,255 3,723 18,636 1,439 64,297 Special mention — — 1,451 — — 96 — 1,547 Substandard — — 133 — 22 269 — 424 Substandard – nonaccrual — — — — — 1,100 48 1,148 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 10,104 4,735 14,989 12,255 3,745 20,101 1,487 67,416 Construction and land development Acceptable credit quality 65,538 233,660 88,047 — 677 916 29,385 418,223 Special mention — — — — — 40 — 40 Substandard — — 16,594 — — — 15,349 31,943 Substandard – nonaccrual — — — — — 39 — 39 Doubtful — — — — — — — — Not graded 1,535 432 356 — — 25 — 2,348 Subtotal 67,073 234,092 104,997 — 677 1,020 44,734 452,593 Total Acceptable credit quality 646,867 1,454,885 721,876 295,622 168,355 305,147 499,434 4,092,186 Special mention 13,245 982 2,164 571 437 634 2,673 20,706 Substandard 48,473 23,245 17,412 342 18,815 55,009 20,928 184,224 Substandard – nonaccrual 10,456 11,349 2,851 1,379 8,168 7,223 1,004 42,430 Doubtful — — — — — — — — Not graded 1,609 432 356 — — 25 — 2,422 Total commercial loans $ 720,650 $ 1,490,893 $ 744,659 $ 297,914 $ 195,775 $ 368,038 $ 524,039 $ 4,341,968 The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three and six months ended June 30, 2024: Term Loans by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Total For the three months ended June 30, 2024 Commercial Commercial $ — $ 475 $ — $ 750 $ — $ 14 $ — $ 1,239 Commercial Other — 579 937 127 3 83 — 1,729 Commercial Real Estate Non-owner occupied — — — — — 5 — 5 Total gross commercial charge-offs $ — $ 1,054 $ 937 $ 877 $ 3 $ 102 $ — $ 2,973 For the six months ended June 30, 2024 Commercial Commercial $ — $ 475 $ — $ 750 $ 10 $ 14 $ 103 $ 1,352 Commercial Other — 1,445 2,011 421 23 126 — 4,026 Commercial Real Estate Non-owner occupied — — — — 138 558 — 696 Total gross commercial charge-offs $ — $ 1,920 $ 2,011 $ 1,171 $ 171 $ 698 $ 103 $ 6,074 The Company evaluates the credit quality of its other loan portfolios, 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 and loans past due 90 days or more and still accruing interest 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 as of June 30, 2024 and December 31, 2023: June 30, 2024 Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Total Residential real estate Residential first lien Performing $ 13,780 $ 42,466 $ 71,297 $ 36,259 $ 28,064 $ 118,874 $ 49 $ 310,789 Nonperforming — 142 196 523 458 2,931 — 4,250 Subtotal 13,780 42,608 71,493 36,782 28,522 121,805 49 315,039 Other residential Performing 1,337 2,400 984 297 355 2,330 55,042 62,745 Nonperforming — — — — — 165 444 609 Subtotal 1,337 2,400 984 297 355 2,495 55,486 63,354 Consumer Consumer Performing 6,512 25,468 19,629 27,238 4,597 10,259 983 94,686 Nonperforming — 11 41 4 — 19 2 77 Subtotal 6,512 25,479 19,670 27,242 4,597 10,278 985 94,763 Consumer other Performing 65 161,083 310,716 112,879 44,810 21,726 — 651,279 Nonperforming — — — — — — — — Subtotal 65 161,083 310,716 112,879 44,810 21,726 — 651,279 Leases financing Performing 49,451 113,989 131,766 57,489 36,968 26,550 — 416,213 Nonperforming — 2,360 5,623 3,289 434 740 — 12,446 Subtotal 49,451 116,349 137,389 60,778 37,402 27,290 — 428,659 Total Performing 71,145 345,406 534,392 234,162 114,794 179,739 56,074 1,535,712 Nonperforming — 2,513 5,860 3,816 892 3,855 446 17,382 Total other loans $ 71,145 $ 347,919 $ 540,252 $ 237,978 $ 115,686 $ 183,594 $ 56,520 $ 1,553,094 December 31, 2023 Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving loans Total Residential real estate Residential first lien Performing $ 42,550 $ 74,613 $ 37,009 $ 29,628 $ 19,647 $ 110,703 $ 4 $ 314,154 Nonperforming 179 50 335 — 139 2,531 — 3,234 Subtotal 42,729 74,663 37,344 29,628 19,786 113,234 4 317,388 Other residential Performing 3,245 1,113 377 409 836 2,009 54,571 62,560 Nonperforming — 9 — — — 178 448 635 Subtotal 3,245 1,122 377 409 836 2,187 55,019 63,195 Consumer Consumer Performing 30,748 24,190 31,946 6,116 2,313 10,794 1,502 107,609 Nonperforming 11 55 6 6 — 56 — 134 Subtotal 30,759 24,245 31,952 6,122 2,313 10,850 1,502 107,743 Consumer other Performing 190,018 392,184 149,791 63,461 23,991 7,987 — 827,432 Nonperforming — — — — — 3 — 3 Subtotal 190,018 392,184 149,791 63,461 23,991 7,990 — 827,435 Leases financing Performing 143,334 157,059 74,359 50,174 30,428 8,863 — 464,217 Nonperforming 1,485 5,043 1,482 317 612 194 — 9,133 Subtotal 144,819 162,102 75,841 50,491 31,040 9,057 — 473,350 Total Performing 409,895 649,159 293,482 149,788 77,215 140,356 56,077 1,775,972 Nonperforming 1,675 5,157 1,823 323 751 2,962 448 13,139 Total other loans $ 411,570 $ 654,316 $ 295,305 $ 150,111 $ 77,966 $ 143,318 $ 56,525 $ 1,789,111 The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three and six months ended June 30, 2024: Term Loans by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Total For the three months ended June 30, 2024 Residential real estate Residential first lien $ — $ — $ — $ — $ — $ — $ — $ — Other residential — — — — — — — — Consumer Consumer — 22 — 5 10 — 1 38 Consumer other 1 — — — — 160 — 161 Lease financing — 946 900 223 15 — — 2,084 Total gross other charge-offs $ 1 $ 968 $ 900 $ 228 $ 25 $ 160 $ 1 $ 2,283 For the six months ended June 30, 2024 Residential real estate Residential first lien $ — $ — $ 11 $ — $ — $ — $ — $ 11 Other residential — — 16 — — — 8 24 Consumer Consumer — 21 — 5 17 27 1 71 Consumer other 1 — — — — 362 — 363 Lease financing — 1,069 2,270 338 52 20 — 3,749 Total gross other charge-offs $ 1 $ 1,090 $ 2,297 $ 343 $ 69 $ 409 $ 9 $ 4,218 |
PREMISES, EQUIPMENT AND LEASES
PREMISES, EQUIPMENT AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises, equipment and leases at June 30, 2024 and December 31, 2023 is as follows: June 30, December 31, (dollars in thousands) 2024 2023 Land $ 15,968 $ 15,968 Buildings and improvements 79,431 78,104 Furniture and equipment 35,766 35,797 Lease right-of-use assets 8,409 7,673 Total 139,574 137,542 Accumulated depreciation (56,534) (54,728) Premises and equipment, net $ 83,040 $ 82,814 |
Summary of Information Related to Operating Leases | Information related to operating leases for the three and six months ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Operating lease cost $ 481 $ 493 $ 957 $ 977 Operating cash flows from leases 577 590 1,149 1,180 Right-of-use assets obtained in exchange for lease obligations 1,317 218 1,539 1,348 Weighted average remaining lease term 7.37 years 8.0 years 7.37 years 8.0 years Weighted average discount rate 3.58 % 3.29 % 3.58 % 3.29 % |
Summary of Projected Minimum Rental Payments | The projected minimum rental payments under the terms of the leases as of June 30, 2024 were as follows: (dollars in thousands) Amount Year ending December 31: 2024 remaining $ 971 2025 1,652 2026 1,555 2027 1,413 2028 1,359 Thereafter 4,328 Total future minimum lease payments 11,278 Less imputed interest (1,427) Total operating lease liabilities $ 9,851 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value and Notional Amounts | The following table summarizes 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 June 30, 2024 and December 31, 2023: Notional amount Fair value gain (loss) (dollars in thousands) June 30, December 31, June 30, December 31, Derivative instruments (included in other assets): Interest rate lock commitments $ 5,679 $ 2,405 $ 120 $ 62 Derivative instruments (included in other liabilities): Forward commitments to sell mortgage-backed securities 9,750 5,000 (13) (83) (dollars in thousands) June 30, 2024 December 31, 2023 Notional Amount $ 425,000 $ 400,000 Fair value gain included in other assets 1,235 — Fair value loss included in other liabilities 7,820 8,443 Tax effected amount included in accumulated other comprehensive (loss) income (4,807) (6,164) Average remaining life in years 2.31 2.67 Weighted average pay rate 6.37 % 6.55 % Weighted average receive rate 5.40 % 5.41 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposits [Abstract] | |
Schedule Summarizes the Classification of Deposits | The following table summarizes the classification of deposits as of June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 Noninterest-bearing demand $ 1,108,521 $ 1,145,395 Interest-bearing: Checking 2,343,533 2,511,840 Money market 1,143,668 1,135,629 Savings 538,462 559,267 Time 983,839 957,398 Total deposits $ 6,118,023 $ 6,309,529 |
FHLB ADVANCES AND OTHER BORRO_2
FHLB ADVANCES AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
Schedule of Federal Home Loan Bank (FHLB) Advances | The following table summarizes our FHLB advances and other borrowings as of June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, 2024 December 31, 2023 FHLB advances – fixed rate, fixed term at rates averaging 4.79% and 4.94% at June 30, 2024 and December 31, 2023 - maturing through April 2029 $ 150,000 $ 150,000 FHLB advances – putable fixed rate at rates averaging 3.34% and 3.07% at June 30, 2024 and December 31, 2023, respectively – maturing through May 2029 with call provisions through November 2024 130,000 160,000 FHLB advances – Short term fixed rate at rates of 5.41% and 5.45% at June 30, 2024 and December 31, 2023 – matured July 2024 320,000 166,000 Total FHLB advances and other borrowings $ 600,000 $ 476,000 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
Schedule of Summary of Company's Subordinated Debt | The following table summarizes the Company’s subordinated debt at June 30, 2024 and December 31, 2023: Subordinated debt Fixed to Float (dollars in thousands) Issued September 2019 Issued September 2019 Total At June 30, 2024 Outstanding amount $ 64,750 $ 27,250 $ 92,000 Carrying amount 64,663 26,993 91,656 Current rate 5.00 % 5.50 % At December 31, 2023 Outstanding amount $ 66,750 $ 27,250 $ 94,000 Carrying amount 66,573 26,973 93,546 Current rate 5.00 % 5.50 % Maturity date 9/30/2029 9/30/2034 Optional redemption date 9/30/2024 9/30/2029 Fixed to variable conversion date 9/30/2024 9/30/2029 Variable rate 3-month SOFR plus 3.61% 3-month SOFR plus 4.05% Interest payment terms Semiannually Semiannually |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2024 2023 2024 2023 Net income $ 6,750 $ 21,575 $ 20,635 $ 43,347 Preferred dividends declared (2,228) (2,228) (4,456) (4,456) Net income available to common shareholders 4,522 19,347 16,179 38,891 Common shareholder dividends (6,661) (6,579) (13,327) (13,248) Unvested restricted stock award dividends (103) (80) (209) (160) Undistributed earnings to unvested restricted stock awards — (149) (40) (300) Undistributed earnings to common shareholders $ (2,242) $ 12,539 $ 2,603 $ 25,183 Basic Distributed earnings to common shareholders $ 6,661 $ 6,579 $ 13,327 $ 13,248 Undistributed (loss) earnings to common shareholders (2,242) 12,539 2,603 25,183 Total common shareholders earnings, basic $ 4,419 $ 19,118 $ 15,930 $ 38,431 Diluted Distributed earnings to common shareholders $ 6,661 $ 6,579 $ 13,327 $ 13,248 Undistributed (loss) earnings to common shareholders (2,242) 12,539 2,603 25,183 Total common shareholders earnings 4,419 19,118 15,930 38,431 Add back: Undistributed earnings reallocated from unvested restricted stock awards — — — — Total common shareholders earnings, diluted $ 4,419 $ 19,118 $ 15,930 $ 38,431 Weighted average common shares outstanding, basic 21,731,195 22,200,917 21,753,056 22,338,627 Dilutive effect of options 3,654 4,162 8,436 10,354 Weighted average common shares outstanding, diluted 21,734,849 22,205,079 21,761,492 22,348,981 Basic earnings per common share $ 0.20 $ 0.86 $ 0.73 $ 1.72 Diluted earnings per common share 0.20 0.86 0.73 1.72 Antidilutive stock options (1) 235,652 375,912 235,652 375,912 (1) The diluted earnings per common share computation excludes antidilutive stock options because the exercise prices of these stock options exceeded the average market prices of the Company's common shares for those respective periods. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 nonrecurring basis at June 30, 2024 and December 31, 2023, are summarized below: June 30, 2024 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 2,994 $ 2,994 $ — $ — U.S. government sponsored entities and U.S. agency securities 50,831 — 50,831 — Mortgage-backed securities - agency 704,176 — 704,176 — Mortgage-backed securities - non-agency 86,182 — 86,182 — State and municipal securities 66,151 — 66,151 — Corporate securities 84,799 — 84,799 — Other securities 99,958 — 99,958 — Equity securities 4,563 4,563 — — Loans held for sale 5,555 — 5,555 — Derivative assets 1,714 — 1,714 — Total $ 1,106,923 $ 7,557 $ 1,099,366 $ — Liabilities Derivative liabilities $ 8,192 $ — $ 8,192 $ — Total $ 8,192 $ — $ 8,192 $ — Assets measured at fair value on a non-recurring basis: Nonperforming loans $ 68,437 $ — $ 64,167 $ 4,270 Other real estate owned 8,304 — 8,304 — December 31, 2023 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 1,097 $ 1,097 $ — $ — U.S. government sponsored entities and U.S. agency securities 72,572 — 72,572 — Mortgage-backed securities - agency 574,500 — 574,500 — Mortgage-backed securities - non-agency 83,529 — 83,529 — State and municipal securities 57,460 — 57,460 — Corporate securities 99,172 — 99,172 — Equity securities 4,501 4,501 — — Loans held for sale 3,811 — 3,811 — Derivative assets 372 — 372 — Total $ 924,579 $ 5,598 $ 918,981 $ — Liabilities Derivative liabilities $ 8,836 $ — $ 8,836 $ — Total $ 8,836 $ — $ 8,836 $ — Assets measured at fair value on a non-recurring basis: Nonperforming loans $ 4,633 $ — $ 3,964 $ 669 Other real estate owned 9,112 — 9,112 — |
Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis | The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Nonperforming loans $ 3,647 $ 3,573 13,870 4,676 Other real estate owned 730 — 730 — Total losses on assets measured on a nonrecurring basis $ 4,377 $ 3,573 $ 14,600 $ 4,676 |
Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) | The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2024 and December 31, 2023: (dollars in thousands) Fair value Valuation Unobservable Range (weighted average) (1) June 30, 2024 Nonperforming loans $ 4,270 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 19.32% - 25.69% (22.72%) December 31, 2023 Nonperforming loans $ 669 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 24.38% - 100.00% (27.46%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
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 as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (dollars in thousands) Aggregate Difference Contractual Aggregate Difference Contractual Residential loans held for sale $ 5,555 $ 251 $ 5,304 $ 3,811 $ 203 $ 3,608 The following table presents the amount of gains from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Residential loans held for sale $ (1) $ 50 17 149 |
Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments | The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 123,719 $ 123,719 $ 123,719 $ — $ — Federal funds sold 927 927 927 — — Loans 5,851,994 5,741,200 — — 5,741,200 Accrued interest receivable 25,756 25,756 — 25,756 — Liabilities Deposits $ 6,118,023 $ 6,098,416 $ — $ 6,098,416 $ — Short-term borrowings 7,208 7,208 — 7,208 — FHLB and other borrowings 600,000 598,416 — 598,416 — Subordinated debt 91,656 84,135 — 84,135 — Trust preferred debentures 50,921 53,848 — 53,848 — December 31, 2023 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 134,212 $ 134,212 $ 134,212 $ — $ — Federal funds sold 849 849 849 — — Loans 6,131,079 6,129,244 — — 6,129,244 Accrued interest receivable 24,934 24,934 — 24,934 — Liabilities Deposits $ 6,309,529 $ 6,294,979 $ — $ 6,294,979 $ — Short-term borrowings 34,865 34,865 25,000 9,865 — FHLB and other borrowings 476,000 475,240 — 475,240 — Subordinated debt 93,546 90,253 — 90,253 — Trust preferred debentures 50,616 51,626 — 51,626 — |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loan Commitments | The commitments are principally tied to variable rates. Loan commitments as of June 30, 2024 and December 31, 2023 were as follows: (dollars in thousands) June 30, 2024 December 31, 2023 Commitments to extend credit $ 756,302 $ 855,489 Financial guarantees – standby letters of credit 23,502 22,745 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | Selected business segment financial information for the three and six months ended June 30, 2024 and 2023 were as follows: (dollars in thousands) Banking Wealth Corporate Total Three Months Ended June 30, 2024 Net interest income (expense) $ 57,223 $ (12) $ (2,159) $ 55,052 Provision for credit losses 16,800 — — 16,800 Noninterest income 10,875 6,801 (20) 17,656 Noninterest expense 42,792 5,342 (655) 47,479 Income (loss) before income taxes (benefit) 8,506 1,447 (1,524) 8,429 Income taxes (benefit) 1,704 618 (643) 1,679 Net income (loss) $ 6,802 $ 829 $ (881) $ 6,750 Total assets $ 7,734,375 $ 34,940 $ (12,041) $ 7,757,274 Six Months Ended June 30, 2024 Net interest income (expense) $ 115,439 $ (20) $ (4,447) $ 110,972 Provision for credit losses 30,800 — — 30,800 Noninterest income 25,366 13,933 (456) 38,843 Noninterest expense 82,890 10,754 (1,298) 92,346 Income (loss) before income taxes (benefit) 27,115 3,159 (3,605) 26,669 Income taxes (benefit) 6,165 1,308 (1,439) 6,034 Net income (loss) $ 20,950 $ 1,851 $ (2,166) $ 20,635 Total assets $ 7,734,375 $ 34,940 $ (12,041) $ 7,757,274 Three Months Ended June 30, 2023 Net interest income (expense) $ 61,035 $ — $ (2,195) $ 58,840 Provision for credit losses 5,879 — — 5,879 Noninterest income 11,874 6,269 610 18,753 Noninterest expense 38,550 4,675 (331) 42,894 Income (loss) before income taxes (benefit) 28,480 1,594 (1,254) 28,820 Income taxes (benefit) 7,326 445 (526) 7,245 Net income (loss) $ 21,154 $ 1,149 $ (728) $ 21,575 Total assets $ 8,025,617 $ 30,249 $ (21,145) $ 8,034,721 Six Months Ended June 30, 2023 Net interest income (expense) $ 123,643 $ — $ (4,299) $ 119,344 Provision for credit losses 9,014 — — 9,014 Noninterest income 21,495 12,680 357 34,532 Noninterest expense 78,397 9,516 (537) 87,376 Income (loss) before income taxes (benefit) 57,727 3,164 (3,405) 57,486 Income taxes (benefit) 14,532 884 (1,277) 14,139 Net income (loss) $ 43,195 $ 2,280 $ (2,128) $ 43,347 Total assets $ 8,025,617 $ 30,249 $ (21,145) $ 8,034,721 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2024 2023 2024 2023 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 5,853 $ 5,356 $ 12,120 $ 10,992 Investment advisory and brokerage fees 500 430 923 861 Other 448 483 890 827 Service charges on deposit accounts: Nonsufficient fund fees 1,836 1,741 3,658 3,439 Other 1,285 936 2,579 1,806 Interchange revenues 3,563 3,696 6,921 7,108 Other income: Merchant services revenue 357 398 701 756 Other 513 1,403 612 2,033 Noninterest income - out-of-scope of Topic 606 3,301 4,310 10,439 6,710 Total noninterest income $ 17,656 $ 18,753 $ 38,843 $ 34,532 |
INVESTMENT SECURITIES - Classif
INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investment securities available for sale | ||
Total available for sale securities | $ 1,201,629 | $ 1,012,592 |
Gross unrealized gains | 1,894 | 3,217 |
Gross unrealized losses | 108,432 | 99,914 |
Fair value | 1,095,091 | 915,895 |
U.S. Treasury securities | ||
Investment securities available for sale | ||
Total available for sale securities | 2,995 | 1,097 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 1 | 0 |
Fair value | 2,994 | 1,097 |
U.S. government sponsored entities and U.S. agency securities | ||
Investment securities available for sale | ||
Total available for sale securities | 52,440 | 74,161 |
Gross unrealized gains | 131 | 176 |
Gross unrealized losses | 1,740 | 1,765 |
Fair value | 50,831 | 72,572 |
Mortgage-backed securities - agency | ||
Investment securities available for sale | ||
Total available for sale securities | 790,311 | 650,119 |
Gross unrealized gains | 882 | 2,325 |
Gross unrealized losses | 87,017 | 77,944 |
Fair value | 704,176 | 574,500 |
Mortgage-backed securities - non-agency | ||
Investment securities available for sale | ||
Total available for sale securities | 89,379 | 87,019 |
Gross unrealized gains | 596 | 414 |
Gross unrealized losses | 3,793 | 3,904 |
Fair value | 86,182 | 83,529 |
State and municipal securities | ||
Investment securities available for sale | ||
Total available for sale securities | 73,063 | 62,952 |
Gross unrealized gains | 160 | 258 |
Gross unrealized losses | 7,072 | 5,750 |
Fair value | 66,151 | 57,460 |
Corporate securities | ||
Investment securities available for sale | ||
Total available for sale securities | 93,459 | 109,598 |
Gross unrealized gains | 12 | 41 |
Gross unrealized losses | 8,672 | 10,467 |
Fair value | 84,799 | 99,172 |
Other securities | ||
Investment securities available for sale | ||
Total available for sale securities | 99,982 | 27,646 |
Gross unrealized gains | 113 | 3 |
Gross unrealized losses | 137 | 84 |
Fair value | 99,958 | 27,565 |
Other Securities, Studen Loan Asset Backed | ||
Investment securities available for sale | ||
Fair value | 63,500 | |
Other Securities, Structured Financial Products | ||
Investment securities available for sale | ||
Fair value | $ 36,500 | $ 27,600 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Amortized cost | |||||
Within one year | $ 4,031 | $ 4,031 | |||
After one year through five years | 72,993 | 72,993 | |||
After five years through ten years | 150,875 | 150,875 | |||
After ten years | 94,040 | 94,040 | |||
Mortgage-backed securities | 879,690 | 879,690 | |||
Total available for sale securities | 1,201,629 | 1,201,629 | $ 1,012,592 | ||
Fair value | |||||
Within one year | 4,020 | 4,020 | |||
After one year through five years | 70,366 | 70,366 | |||
After five years through ten years | 138,034 | 138,034 | |||
After ten years | 92,313 | 92,313 | |||
Mortgage-backed securities | 790,358 | 790,358 | |||
Total available for sale securities | 1,095,091 | 1,095,091 | $ 915,895 | ||
Proceeds from sales | 45,825 | $ 15,467 | 45,825 | $ 99,960 | |
Gross realized gains on sales | 307 | 0 | 307 | 338 | |
Gross realized losses on sales | $ (459) | $ (869) | $ (459) | $ (1,855) |
INVESTMENT SECURITIES - Allowan
INVESTMENT SECURITIES - Allowance for Credit Loss and Unrealized Losses and Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair value | ||
Less than 12 Months, Fair value | $ 391,185 | $ 252,732 |
Less than 12 Months, Unrealized loss | 14,945 | 13,713 |
12 Months or more, Fair value | 487,576 | 460,879 |
12 Months or more, Unrealized loss | 93,487 | 86,201 |
Total, Fair value | 878,761 | 713,611 |
Total, Unrealized loss | 108,432 | 99,914 |
U.S. Treasury securities | ||
Fair value | ||
Less than 12 Months, Fair value | 2,994 | |
Less than 12 Months, Unrealized loss | 1 | |
12 Months or more, Fair value | 0 | |
12 Months or more, Unrealized loss | 0 | |
Total, Fair value | 2,994 | |
Total, Unrealized loss | 1 | |
U.S. government sponsored entities and U.S. agency securities | ||
Fair value | ||
Less than 12 Months, Fair value | 36,004 | 42,826 |
Less than 12 Months, Unrealized loss | 86 | 87 |
12 Months or more, Fair value | 8,346 | 8,323 |
12 Months or more, Unrealized loss | 1,654 | 1,678 |
Total, Fair value | 44,350 | 51,149 |
Total, Unrealized loss | 1,740 | 1,765 |
Mortgage-backed securities - agency | ||
Fair value | ||
Less than 12 Months, Fair value | 189,165 | 130,106 |
Less than 12 Months, Unrealized loss | 5,139 | 7,386 |
12 Months or more, Fair value | 404,360 | 348,476 |
12 Months or more, Unrealized loss | 81,878 | 70,558 |
Total, Fair value | 593,525 | 478,582 |
Total, Unrealized loss | 87,017 | 77,944 |
Mortgage-backed securities - non-agency | ||
Fair value | ||
Less than 12 Months, Fair value | 12,911 | 8,852 |
Less than 12 Months, Unrealized loss | 183 | 353 |
12 Months or more, Fair value | 18,476 | 19,418 |
12 Months or more, Unrealized loss | 3,610 | 3,551 |
Total, Fair value | 31,387 | 28,270 |
Total, Unrealized loss | 3,793 | 3,904 |
State and municipal securities | ||
Fair value | ||
Less than 12 Months, Fair value | 57,644 | 51,497 |
Less than 12 Months, Unrealized loss | 6,845 | 5,750 |
12 Months or more, Fair value | 1,387 | 0 |
12 Months or more, Unrealized loss | 227 | 0 |
Total, Fair value | 59,031 | 51,497 |
Total, Unrealized loss | 7,072 | 5,750 |
Corporate securities | ||
Fair value | ||
Less than 12 Months, Fair value | 26,780 | 4,688 |
Less than 12 Months, Unrealized loss | 2,554 | 53 |
12 Months or more, Fair value | 55,007 | 84,662 |
12 Months or more, Unrealized loss | 6,118 | 10,414 |
Total, Fair value | 81,787 | 89,350 |
Total, Unrealized loss | 8,672 | 10,467 |
Other securities | ||
Fair value | ||
Less than 12 Months, Fair value | 65,687 | 14,763 |
Less than 12 Months, Unrealized loss | 137 | 84 |
12 Months or more, Fair value | 0 | 0 |
12 Months or more, Unrealized loss | 0 | 0 |
Total, Fair value | 65,687 | 14,763 |
Total, Unrealized loss | $ 137 | $ 84 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) | Jun. 30, 2024 security |
Investments, Debt and Equity Securities [Abstract] | |
Number of securities in unrealized loss position (in security) | 296 |
Aggregate depreciation percentage | 10.98% |
LOANS - Summary of Loans and Cr
LOANS - Summary of Loans and Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Summary of loans | |||||
Loans | $ 5,851,994 | $ 5,851,994 | $ 6,131,079 | ||
Net deferred loan fees | 2,900 | 2,900 | 3,800 | ||
Unearned income | 59,600 | 59,600 | 66,400 | ||
Loans held for sale | 5,555 | 5,555 | 3,811 | ||
Proceeds from sales of loans held for sale | 45,807 | $ 34,344 | |||
Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 4,298,900 | 4,298,900 | 4,341,968 | ||
Lease financing | |||||
Summary of loans | |||||
Loans | 428,659 | 428,659 | 473,350 | ||
Consumer Loans and Commercial Leases | |||||
Summary of loans | |||||
Proceeds from sales of loans held for sale | 28,200 | $ 28,000 | 45,800 | $ 34,300 | |
Commercial | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 829,888 | 829,888 | 825,938 | ||
Commercial other | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 570,979 | 570,979 | 656,592 | ||
Commercial real estate non-owner occupied | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 1,621,102 | 1,621,102 | 1,622,668 | ||
Commercial real estate owner occupied | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 438,117 | 438,117 | 436,857 | ||
Multi-family | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 293,863 | 293,863 | 279,904 | ||
Farmland | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 68,423 | 68,423 | 67,416 | ||
Construction and land development | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 476,528 | 476,528 | 452,593 | ||
Residential first lien | Residential Loan Portfolio | |||||
Summary of loans | |||||
Loans | 315,039 | 315,039 | 317,388 | ||
Other residential | Residential Loan Portfolio | |||||
Summary of loans | |||||
Loans | 63,354 | 63,354 | 63,195 | ||
Consumer | Consumer Loan Portfolio | |||||
Summary of loans | |||||
Loans | 94,763 | 94,763 | 107,743 | ||
Consumer other | Consumer Loan Portfolio | |||||
Summary of loans | |||||
Loans | $ 651,279 | $ 651,279 | $ 827,435 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Notes Receivable [Roll Forward] | ||||
Beginning balance | $ 20,726 | $ 19,519 | $ 20,990 | $ 19,776 |
New loans and other additions | 500 | 2,367 | 500 | 2,367 |
Repayments and other reductions | (332) | (317) | (596) | (574) |
Ending balance | $ 20,894 | $ 21,569 | $ 20,894 | $ 21,569 |
LOANS - Summary of Changes in t
LOANS - Summary of Changes in the ACL on Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | $ 78,057 | $ 62,067 | $ 68,502 | $ 61,051 |
Provision for credit losses on loans | 17,000 | 5,879 | 31,000 | 9,014 |
Charge-offs | (5,256) | (4,034) | (10,292) | (6,433) |
Recoveries | 2,382 | 1,038 | 2,973 | 1,318 |
Balance, end of period | 92,183 | 64,950 | 92,183 | 64,950 |
Commercial Loan Portfolio | ||||
Changes in allowance for credit losses on loans | ||||
Charge-offs | (2,973) | (6,074) | ||
Commercial Loan Portfolio | Commercial | ||||
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | 21,329 | 15,762 | 21,847 | 14,639 |
Provision for credit losses on loans | 5,733 | 196 | 7,509 | 2,194 |
Charge-offs | (2,968) | (1,071) | (5,378) | (2,040) |
Recoveries | 153 | 403 | 269 | 497 |
Balance, end of period | 24,247 | 15,290 | 24,247 | 15,290 |
Commercial Loan Portfolio | Commercial real estate | ||||
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | 21,367 | 28,216 | 20,229 | 29,290 |
Provision for credit losses on loans | (1,253) | 2,427 | 424 | 2,097 |
Charge-offs | (5) | (1,544) | (696) | (2,290) |
Recoveries | 2,088 | 326 | 2,240 | 328 |
Balance, end of period | 22,197 | 29,425 | 22,197 | 29,425 |
Commercial Loan Portfolio | Construction and land development | ||||
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | 12,629 | 2,442 | 4,163 | 2,435 |
Provision for credit losses on loans | 336 | 1,049 | 8,802 | 1,056 |
Charge-offs | 0 | (334) | 0 | (334) |
Recoveries | 1 | 32 | 1 | 32 |
Balance, end of period | 12,966 | 3,189 | 12,966 | 3,189 |
Residential Loan Portfolio | Residential real estate | ||||
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | 5,655 | 4,350 | 5,553 | 4,301 |
Provision for credit losses on loans | (475) | 1,207 | (393) | 1,270 |
Charge-offs | 0 | (54) | (35) | (85) |
Recoveries | 13 | 48 | 68 | 65 |
Balance, end of period | 5,193 | 5,551 | 5,193 | 5,551 |
Consumer Loan Portfolio | Consumer | ||||
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | 3,611 | 4,129 | 3,770 | 3,599 |
Provision for credit losses on loans | 10,817 | 4 | 10,806 | 704 |
Charge-offs | (199) | (260) | (434) | (523) |
Recoveries | 63 | 80 | 150 | 173 |
Balance, end of period | 14,292 | 3,953 | 14,292 | 3,953 |
Lease financing | ||||
Changes in allowance for credit losses on loans | ||||
Balance, beginning of period | 13,466 | 7,168 | 12,940 | 6,787 |
Provision for credit losses on loans | 1,842 | 996 | 3,852 | 1,693 |
Charge-offs | (2,084) | (771) | (3,749) | (1,161) |
Recoveries | 64 | 149 | 245 | 223 |
Balance, end of period | $ 13,288 | $ 7,542 | $ 13,288 | $ 7,542 |
LOANS - Risk Rating (Details)
LOANS - Risk Rating (Details) - Consumer loans and equipment finance loans and leases days past due | Jun. 30, 2024 |
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-accrual (Details)
LOANS - Non-accrual (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Impaired loans (excluding PCI loans) by portfolio | ||
Threshold amount for non accrual loans | $ 500 | |
Nonaccrual | ||
Nonaccrual with allowance | 74,749 | $ 28,267 |
Nonaccrual with no allowance | 35,709 | 27,139 |
Total nonaccrual | 110,458 | 55,406 |
Commercial Loan Portfolio | ||
Nonaccrual | ||
Nonaccrual with allowance | 58,663 | 15,818 |
Nonaccrual with no allowance | 35,239 | 26,613 |
Total nonaccrual | 93,902 | 42,431 |
Commercial Loan Portfolio | Commercial | ||
Nonaccrual | ||
Nonaccrual with allowance | 6,329 | 3,560 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 6,329 | 3,560 |
Commercial Loan Portfolio | Commercial other | ||
Nonaccrual | ||
Nonaccrual with allowance | 7,874 | 4,941 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 7,874 | 4,941 |
Commercial Loan Portfolio | Commercial real estate non-owner occupied | ||
Nonaccrual | ||
Nonaccrual with allowance | 13,061 | 1,614 |
Nonaccrual with no allowance | 7,648 | 14,098 |
Total nonaccrual | 20,709 | 15,712 |
Commercial Loan Portfolio | Commercial real estate owner occupied | ||
Nonaccrual | ||
Nonaccrual with allowance | 10,827 | 4,276 |
Nonaccrual with no allowance | 0 | 6,500 |
Total nonaccrual | 10,827 | 10,776 |
Commercial Loan Portfolio | Multi-family | ||
Nonaccrual | ||
Nonaccrual with allowance | 3,547 | 240 |
Nonaccrual with no allowance | 16,997 | 6,015 |
Total nonaccrual | 20,544 | 6,255 |
Commercial Loan Portfolio | Farmland | ||
Nonaccrual | ||
Nonaccrual with allowance | 1,301 | 1,148 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 1,301 | 1,148 |
Commercial Loan Portfolio | Construction and land development | ||
Nonaccrual | ||
Nonaccrual with allowance | 15,724 | 39 |
Nonaccrual with no allowance | 10,594 | 0 |
Total nonaccrual | 26,318 | 39 |
Residential Loan Portfolio | Residential first lien | ||
Nonaccrual | ||
Nonaccrual with allowance | 3,285 | 2,583 |
Nonaccrual with no allowance | 455 | 490 |
Total nonaccrual | 3,740 | 3,073 |
Residential Loan Portfolio | Other residential | ||
Nonaccrual | ||
Nonaccrual with allowance | 609 | 635 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 609 | 635 |
Consumer Loan Portfolio | Consumer | ||
Nonaccrual | ||
Nonaccrual with allowance | 77 | 134 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 77 | 134 |
Lease financing | ||
Nonaccrual | ||
Nonaccrual with allowance | 12,115 | 9,097 |
Nonaccrual with no allowance | 15 | 36 |
Total nonaccrual | $ 12,130 | $ 9,133 |
LOANS - Impaired Loans with Int
LOANS - Impaired Loans with Interest Recognized (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income : | ||||
Interest income recognized on nonaccrual loans | $ 0 | $ 0 | $ 0 | $ 0 |
Additional interest income that would have been recorded had they been current | $ 2,300,000 | $ 800,000 | $ 3,600,000 | $ 1,600,000 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Summary of loans | ||
Collateral dependent loans | $ 80,678 | $ 31,769 |
Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 75,152 | 28,565 |
Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 3,622 | 0 |
Equipment | ||
Summary of loans | ||
Collateral dependent loans | 1,904 | 3,204 |
Lease financing | ||
Summary of loans | ||
Collateral dependent loans | 1,139 | |
Lease financing | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Lease financing | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Lease financing | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 1,139 | |
Commercial | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 3,622 | 1,972 |
Commercial | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 3,622 | 0 |
Commercial | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 1,972 |
Commercial other | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 765 | 1,232 |
Commercial other | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial other | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial other | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 765 | 1,232 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 19,136 | 14,147 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 19,136 | 14,147 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 9,285 | 9,275 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 9,285 | 9,275 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 20,453 | 5,143 |
Multi-family | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 20,453 | 5,143 |
Multi-family | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | $ 0 |
Construction and land development | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 26,278 | |
Construction and land development | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 26,278 | |
Construction and land development | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | |
Construction and land development | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | $ 0 |
LOANS - Aging Status of Recorde
LOANS - Aging Status of Recorded Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Aging Status of recorded investment | ||
Loans | $ 5,851,994 | $ 6,131,079 |
Total nonaccrual | 110,458 | 55,406 |
Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 110,458 | 55,406 |
30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 42,240 | 50,675 |
60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 11,805 | 32,103 |
Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 1,666 | 945 |
Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 55,711 | 83,723 |
Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 5,685,825 | 5,991,950 |
Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 4,298,900 | 4,341,968 |
Total nonaccrual | 93,902 | 42,431 |
Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 93,902 | 42,431 |
Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 28,819 | 35,597 |
Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 4,458 | 25,347 |
Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 840 | 781 |
Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 34,117 | 61,725 |
Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 4,170,881 | 4,237,812 |
Lease financing | ||
Aging Status of recorded investment | ||
Loans | 428,659 | 473,350 |
Total nonaccrual | 12,130 | 9,133 |
Lease financing | Performing | ||
Aging Status of recorded investment | ||
Loans | 416,213 | 464,217 |
Lease financing | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 12,446 | 9,133 |
Total nonaccrual | 12,130 | 9,133 |
Lease financing | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 6,743 | 7,622 |
Lease financing | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 3,587 | 1,826 |
Lease financing | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 316 | 0 |
Lease financing | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 10,646 | 9,448 |
Lease financing | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 405,883 | 454,769 |
Commercial | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 829,888 | 825,938 |
Total nonaccrual | 6,329 | 3,560 |
Commercial | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 6,329 | 3,560 |
Commercial | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 9,389 | 9,340 |
Commercial | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 564 | 504 |
Commercial | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 9,953 | 9,844 |
Commercial | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 813,606 | 812,534 |
Commercial other | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 570,979 | 656,592 |
Total nonaccrual | 7,874 | 4,941 |
Commercial other | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 7,874 | 4,941 |
Commercial other | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 11,730 | 11,156 |
Commercial other | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 3,630 | 5,990 |
Commercial other | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 840 | 781 |
Commercial other | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 16,200 | 17,927 |
Commercial other | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 546,905 | 633,724 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 1,621,102 | 1,622,668 |
Total nonaccrual | 20,709 | 15,712 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 20,709 | 15,712 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 65 | 384 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 65 | 384 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 1,600,328 | 1,606,572 |
Commercial real estate owner occupied | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 438,117 | 436,857 |
Total nonaccrual | 10,827 | 10,776 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 10,827 | 10,776 |
Commercial real estate owner occupied | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 7,635 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 264 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 7,899 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 419,391 | 426,081 |
Multi-family | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 293,863 | 279,904 |
Total nonaccrual | 20,544 | 6,255 |
Multi-family | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 20,544 | 6,255 |
Multi-family | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 14,506 |
Multi-family | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 8,140 |
Multi-family | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 22,646 |
Multi-family | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 273,319 | 251,003 |
Farmland | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 68,423 | 67,416 |
Total nonaccrual | 1,301 | 1,148 |
Farmland | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 1,301 | 1,148 |
Farmland | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Farmland | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 120 |
Farmland | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Farmland | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 120 |
Farmland | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 67,122 | 66,148 |
Construction and land development | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 476,528 | 452,593 |
Total nonaccrual | 26,318 | 39 |
Construction and land development | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 26,318 | 39 |
Construction and land development | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 211 |
Construction and land development | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 10,593 |
Construction and land development | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Construction and land development | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 10,804 |
Construction and land development | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 450,210 | 441,750 |
Residential first lien | Residential Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 315,039 | 317,388 |
Total nonaccrual | 3,740 | 3,073 |
Residential first lien | Residential Loan Portfolio | Performing | ||
Aging Status of recorded investment | ||
Loans | 310,789 | 314,154 |
Residential first lien | Residential Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 4,250 | 3,234 |
Total nonaccrual | 3,740 | 3,073 |
Residential first lien | Residential Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 423 | 69 |
Residential first lien | Residential Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 299 |
Residential first lien | Residential Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 510 | 161 |
Residential first lien | Residential Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 933 | 529 |
Residential first lien | Residential Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 310,366 | 313,786 |
Other residential | Residential Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 63,354 | 63,195 |
Total nonaccrual | 609 | 635 |
Other residential | Residential Loan Portfolio | Performing | ||
Aging Status of recorded investment | ||
Loans | 62,745 | 62,560 |
Other residential | Residential Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 609 | 635 |
Total nonaccrual | 609 | 635 |
Other residential | Residential Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 49 | 100 |
Other residential | Residential Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 9 | 50 |
Other residential | Residential Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Other residential | Residential Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 58 | 150 |
Other residential | Residential Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 62,687 | 62,410 |
Consumer | Consumer Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 94,763 | 107,743 |
Total nonaccrual | 77 | 134 |
Consumer | Consumer Loan Portfolio | Performing | ||
Aging Status of recorded investment | ||
Loans | 94,686 | 107,609 |
Consumer | Consumer Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 77 | 134 |
Total nonaccrual | 77 | 134 |
Consumer | Consumer Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 109 | 62 |
Consumer | Consumer Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 11 | 20 |
Consumer | Consumer Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Consumer | Consumer Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 120 | 82 |
Consumer | Consumer Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 94,566 | 107,527 |
Consumer other | Consumer Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 651,279 | 827,435 |
Consumer other | Consumer Loan Portfolio | Performing | ||
Aging Status of recorded investment | ||
Loans | 651,279 | 827,432 |
Consumer other | Consumer Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 0 | 3 |
Total nonaccrual | 0 | 0 |
Consumer other | Consumer Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 6,097 | 7,225 |
Consumer other | Consumer Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 3,740 | 4,561 |
Consumer other | Consumer Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 3 |
Consumer other | Consumer Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 9,837 | 11,789 |
Consumer other | Consumer Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | $ 641,442 | $ 815,646 |
LOANS - Loan Restructuring (Det
LOANS - Loan Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan | Jun. 30, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan | |
Summary of loans | ||||
Balance | $ | $ 9,206 | $ 500 | $ 10,668 | $ 600 |
Count | loan | 19 | 3 | 26 | 5 |
Interest Rate Reduction | ||||
Summary of loans | ||||
Balance | $ | $ 480 | $ 0 | $ 480 | $ 0 |
Count | loan | 2 | 0 | 2 | 0 |
Term Extension | ||||
Summary of loans | ||||
Balance | $ | $ 2,209 | $ 500 | $ 3,671 | $ 600 |
Count | loan | 14 | 3 | 21 | 5 |
Forgiveness of Principal or Interest | ||||
Summary of loans | ||||
Balance | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Count | loan | 0 | 0 | 0 | 0 |
Other | ||||
Summary of loans | ||||
Balance | $ | $ 6,517 | $ 0 | $ 6,517 | $ 0 |
Count | loan | 3 | 0 | 3 | 0 |
Commercial Loan Portfolio | ||||
Summary of loans | ||||
Balance | $ | $ 7,617 | $ 500 | $ 8,363 | $ 600 |
Count | loan | 9 | 3 | 13 | 5 |
Commercial Loan Portfolio | Commercial other | ||||
Summary of loans | ||||
Balance | $ | $ 1,161 | $ 500 | $ 1,907 | $ 600 |
Count | loan | 8 | 3 | 12 | 5 |
Commercial Loan Portfolio | Commercial real estate non-owner occupied | ||||
Summary of loans | ||||
Balance | $ | $ 6,456 | $ 0 | $ 6,456 | $ 0 |
Count | loan | 1 | 0 | 1 | 0 |
Residential Loan Portfolio | Residential first lien | ||||
Summary of loans | ||||
Balance | $ | $ 66 | $ 0 | $ 66 | $ 0 |
Count | loan | 1 | 0 | 1 | 0 |
Residential Loan Portfolio | Other residential | ||||
Summary of loans | ||||
Balance | $ | $ 81 | $ 0 | $ 81 | $ 0 |
Count | loan | 2 | 0 | 2 | 0 |
Consumer Loan Portfolio | Consumer | ||||
Summary of loans | ||||
Balance | $ | $ 26 | $ 0 | $ 26 | $ 0 |
Count | loan | 1 | 0 | 1 | 0 |
Lease financing | ||||
Summary of loans | ||||
Balance | $ | $ 1,416 | $ 0 | $ 2,132 | $ 0 |
Count | loan | 6 | 0 | 9 | 0 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 region | |
Receivables [Abstract] | |
Number of main regions | 4 |
LOANS - Risk Category (Details)
LOANS - Risk Category (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Risk category | ||
Total | $ 5,851,994 | $ 6,131,079 |
Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 530,253 | 720,650 |
Originated in Fiscal Year before Latest Fiscal Year | 610,431 | 1,490,893 |
Originated Two Years before Latest Fiscal Year | 1,276,427 | 744,659 |
Originated Three Years before Latest Fiscal Year | 667,843 | 297,914 |
Originated Four Years before Latest Fiscal Year | 250,844 | 195,775 |
Prior | 473,688 | 368,038 |
Revolving loans | 489,414 | 524,039 |
Total | 4,298,900 | 4,341,968 |
Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 495,916 | 646,867 |
Originated in Fiscal Year before Latest Fiscal Year | 580,195 | 1,454,885 |
Originated Two Years before Latest Fiscal Year | 1,210,279 | 721,876 |
Originated Three Years before Latest Fiscal Year | 635,077 | 295,622 |
Originated Four Years before Latest Fiscal Year | 244,316 | 168,355 |
Prior | 392,304 | 305,147 |
Revolving loans | 482,110 | 499,434 |
Total | 4,040,197 | 4,092,186 |
Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 2 | 13,245 |
Originated in Fiscal Year before Latest Fiscal Year | 4,560 | 982 |
Originated Two Years before Latest Fiscal Year | 11,179 | 2,164 |
Originated Three Years before Latest Fiscal Year | 7,436 | 571 |
Originated Four Years before Latest Fiscal Year | 540 | 437 |
Prior | 986 | 634 |
Revolving loans | 1,301 | 2,673 |
Total | 26,004 | 20,706 |
Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 32,961 | 48,473 |
Originated in Fiscal Year before Latest Fiscal Year | 18,692 | 23,245 |
Originated Two Years before Latest Fiscal Year | 32,126 | 17,412 |
Originated Three Years before Latest Fiscal Year | 6,698 | 342 |
Originated Four Years before Latest Fiscal Year | 4,969 | 18,815 |
Prior | 35,236 | 55,009 |
Revolving loans | 4,873 | 20,928 |
Total | 135,555 | 184,224 |
Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 199 | 10,456 |
Originated in Fiscal Year before Latest Fiscal Year | 5,699 | 11,349 |
Originated Two Years before Latest Fiscal Year | 22,437 | 2,851 |
Originated Three Years before Latest Fiscal Year | 18,278 | 1,379 |
Originated Four Years before Latest Fiscal Year | 1,019 | 8,168 |
Prior | 45,139 | 7,223 |
Revolving loans | 1,130 | 1,004 |
Total | 93,901 | 42,430 |
Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 1,175 | 1,609 |
Originated in Fiscal Year before Latest Fiscal Year | 1,285 | 432 |
Originated Two Years before Latest Fiscal Year | 406 | 356 |
Originated Three Years before Latest Fiscal Year | 354 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 23 | 25 |
Revolving loans | 0 | 0 |
Total | 3,243 | 2,422 |
Lease financing | ||
Risk category | ||
Originated in Current Fiscal Year | 49,451 | 144,819 |
Originated in Fiscal Year before Latest Fiscal Year | 116,349 | 162,102 |
Originated Two Years before Latest Fiscal Year | 137,389 | 75,841 |
Originated Three Years before Latest Fiscal Year | 60,778 | 50,491 |
Originated Four Years before Latest Fiscal Year | 37,402 | 31,040 |
Prior | 27,290 | 9,057 |
Revolving loans | 0 | 0 |
Total | 428,659 | 473,350 |
Lease financing | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 49,451 | 143,334 |
Originated in Fiscal Year before Latest Fiscal Year | 113,989 | 157,059 |
Originated Two Years before Latest Fiscal Year | 131,766 | 74,359 |
Originated Three Years before Latest Fiscal Year | 57,489 | 50,174 |
Originated Four Years before Latest Fiscal Year | 36,968 | 30,428 |
Prior | 26,550 | 8,863 |
Revolving loans | 0 | 0 |
Total | 416,213 | 464,217 |
Lease financing | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 1,485 |
Originated in Fiscal Year before Latest Fiscal Year | 2,360 | 5,043 |
Originated Two Years before Latest Fiscal Year | 5,623 | 1,482 |
Originated Three Years before Latest Fiscal Year | 3,289 | 317 |
Originated Four Years before Latest Fiscal Year | 434 | 612 |
Prior | 740 | 194 |
Revolving loans | 0 | 0 |
Total | 12,446 | 9,133 |
Loan Portfolios, Excluding Commercial | ||
Risk category | ||
Originated in Current Fiscal Year | 71,145 | 411,570 |
Originated in Fiscal Year before Latest Fiscal Year | 347,919 | 654,316 |
Originated Two Years before Latest Fiscal Year | 540,252 | 295,305 |
Originated Three Years before Latest Fiscal Year | 237,978 | 150,111 |
Originated Four Years before Latest Fiscal Year | 115,686 | 77,966 |
Prior | 183,594 | 143,318 |
Revolving loans | 56,520 | 56,525 |
Total | 1,553,094 | 1,789,111 |
Loan Portfolios, Excluding Commercial | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 71,145 | 409,895 |
Originated in Fiscal Year before Latest Fiscal Year | 345,406 | 649,159 |
Originated Two Years before Latest Fiscal Year | 534,392 | 293,482 |
Originated Three Years before Latest Fiscal Year | 234,162 | 149,788 |
Originated Four Years before Latest Fiscal Year | 114,794 | 77,215 |
Prior | 179,739 | 140,356 |
Revolving loans | 56,074 | 56,077 |
Total | 1,535,712 | 1,775,972 |
Loan Portfolios, Excluding Commercial | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 1,675 |
Originated in Fiscal Year before Latest Fiscal Year | 2,513 | 5,157 |
Originated Two Years before Latest Fiscal Year | 5,860 | 1,823 |
Originated Three Years before Latest Fiscal Year | 3,816 | 323 |
Originated Four Years before Latest Fiscal Year | 892 | 751 |
Prior | 3,855 | 2,962 |
Revolving loans | 446 | 448 |
Total | 17,382 | 13,139 |
Commercial | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 66,935 | 166,236 |
Originated in Fiscal Year before Latest Fiscal Year | 164,714 | 110,396 |
Originated Two Years before Latest Fiscal Year | 83,860 | 73,111 |
Originated Three Years before Latest Fiscal Year | 62,302 | 37,047 |
Originated Four Years before Latest Fiscal Year | 31,039 | 15,201 |
Prior | 53,789 | 48,191 |
Revolving loans | 367,249 | 375,756 |
Total | 829,888 | 825,938 |
Commercial | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 65,586 | 157,498 |
Originated in Fiscal Year before Latest Fiscal Year | 160,781 | 96,295 |
Originated Two Years before Latest Fiscal Year | 70,501 | 71,366 |
Originated Three Years before Latest Fiscal Year | 61,312 | 36,680 |
Originated Four Years before Latest Fiscal Year | 30,738 | 14,688 |
Prior | 48,184 | 42,827 |
Revolving loans | 361,666 | 369,297 |
Total | 798,768 | 788,651 |
Commercial | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 3,015 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 450 |
Originated Two Years before Latest Fiscal Year | 0 | 4 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 181 |
Prior | 157 | 43 |
Revolving loans | 260 | 983 |
Total | 417 | 4,676 |
Commercial | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 1,349 | 4,485 |
Originated in Fiscal Year before Latest Fiscal Year | 3,080 | 13,651 |
Originated Two Years before Latest Fiscal Year | 12,974 | 420 |
Originated Three Years before Latest Fiscal Year | 420 | 342 |
Originated Four Years before Latest Fiscal Year | 301 | 253 |
Prior | 1,589 | 4,961 |
Revolving loans | 4,661 | 4,940 |
Total | 24,374 | 29,052 |
Commercial | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 1,238 |
Originated in Fiscal Year before Latest Fiscal Year | 853 | 0 |
Originated Two Years before Latest Fiscal Year | 385 | 1,321 |
Originated Three Years before Latest Fiscal Year | 570 | 25 |
Originated Four Years before Latest Fiscal Year | 0 | 79 |
Prior | 3,859 | 360 |
Revolving loans | 662 | 536 |
Total | 6,329 | 3,559 |
Commercial | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial other | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 50,151 | 140,987 |
Originated in Fiscal Year before Latest Fiscal Year | 110,960 | 198,396 |
Originated Two Years before Latest Fiscal Year | 164,466 | 101,794 |
Originated Three Years before Latest Fiscal Year | 80,112 | 59,690 |
Originated Four Years before Latest Fiscal Year | 41,262 | 33,316 |
Prior | 41,382 | 29,044 |
Revolving loans | 82,646 | 93,365 |
Total | 570,979 | 656,592 |
Commercial other | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 50,149 | 139,057 |
Originated in Fiscal Year before Latest Fiscal Year | 107,601 | 195,726 |
Originated Two Years before Latest Fiscal Year | 160,250 | 100,946 |
Originated Three Years before Latest Fiscal Year | 78,838 | 59,392 |
Originated Four Years before Latest Fiscal Year | 41,032 | 32,848 |
Prior | 40,630 | 28,946 |
Revolving loans | 81,279 | 90,928 |
Total | 559,779 | 647,843 |
Commercial other | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 2 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 193 | 532 |
Originated Two Years before Latest Fiscal Year | 1,328 | 399 |
Originated Three Years before Latest Fiscal Year | 356 | 114 |
Originated Four Years before Latest Fiscal Year | 93 | 107 |
Prior | 69 | 4 |
Revolving loans | 1,039 | 1,682 |
Total | 3,080 | 2,838 |
Commercial other | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 37 |
Originated in Fiscal Year before Latest Fiscal Year | 34 | 220 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 212 | 639 |
Total | 246 | 896 |
Commercial other | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 1,819 |
Originated in Fiscal Year before Latest Fiscal Year | 3,132 | 1,918 |
Originated Two Years before Latest Fiscal Year | 2,888 | 449 |
Originated Three Years before Latest Fiscal Year | 918 | 184 |
Originated Four Years before Latest Fiscal Year | 137 | 361 |
Prior | 683 | 94 |
Revolving loans | 116 | 116 |
Total | 7,874 | 4,941 |
Commercial other | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial other | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 74 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 74 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 295,240 | 283,079 |
Originated in Fiscal Year before Latest Fiscal Year | 193,357 | 654,715 |
Originated Two Years before Latest Fiscal Year | 537,567 | 309,348 |
Originated Three Years before Latest Fiscal Year | 281,740 | 112,199 |
Originated Four Years before Latest Fiscal Year | 92,438 | 107,995 |
Prior | 212,653 | 149,004 |
Revolving loans | 8,107 | 6,328 |
Total | 1,621,102 | 1,622,668 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 271,768 | 237,215 |
Originated in Fiscal Year before Latest Fiscal Year | 179,078 | 653,057 |
Originated Two Years before Latest Fiscal Year | 526,050 | 309,013 |
Originated Three Years before Latest Fiscal Year | 281,470 | 110,743 |
Originated Four Years before Latest Fiscal Year | 86,463 | 82,563 |
Prior | 171,819 | 124,430 |
Revolving loans | 8,107 | 6,328 |
Total | 1,524,755 | 1,523,349 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 4,480 |
Originated in Fiscal Year before Latest Fiscal Year | 4,367 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 181 |
Originated Three Years before Latest Fiscal Year | 179 | 457 |
Originated Four Years before Latest Fiscal Year | 447 | 0 |
Prior | 185 | 274 |
Revolving loans | 0 | 0 |
Total | 5,178 | 5,392 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 23,472 | 35,811 |
Originated in Fiscal Year before Latest Fiscal Year | 9,912 | 1,658 |
Originated Two Years before Latest Fiscal Year | 11,517 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 4,668 | 17,835 |
Prior | 20,891 | 22,911 |
Revolving loans | 0 | 0 |
Total | 70,460 | 78,215 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 5,573 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 154 |
Originated Three Years before Latest Fiscal Year | 91 | 999 |
Originated Four Years before Latest Fiscal Year | 860 | 7,597 |
Prior | 19,758 | 1,389 |
Revolving loans | 0 | 0 |
Total | 20,709 | 15,712 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 22,163 | 38,848 |
Originated in Fiscal Year before Latest Fiscal Year | 44,688 | 118,040 |
Originated Two Years before Latest Fiscal Year | 114,006 | 113,686 |
Originated Three Years before Latest Fiscal Year | 105,639 | 48,586 |
Originated Four Years before Latest Fiscal Year | 46,948 | 24,552 |
Prior | 103,575 | 91,030 |
Revolving loans | 1,098 | 2,115 |
Total | 438,117 | 436,857 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 22,055 | 32,972 |
Originated in Fiscal Year before Latest Fiscal Year | 38,924 | 100,893 |
Originated Two Years before Latest Fiscal Year | 97,801 | 113,264 |
Originated Three Years before Latest Fiscal Year | 105,249 | 48,415 |
Originated Four Years before Latest Fiscal Year | 46,926 | 23,671 |
Prior | 88,723 | 77,854 |
Revolving loans | 792 | 1,803 |
Total | 400,470 | 398,872 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 5,750 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 129 |
Originated Three Years before Latest Fiscal Year | 126 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 149 |
Prior | 535 | 177 |
Revolving loans | 2 | 8 |
Total | 663 | 6,213 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 5,666 | 7,716 |
Originated Two Years before Latest Fiscal Year | 7,635 | 265 |
Originated Three Years before Latest Fiscal Year | 264 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 705 |
Prior | 12,592 | 12,310 |
Revolving loans | 0 | 0 |
Total | 26,157 | 20,996 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 108 | 126 |
Originated in Fiscal Year before Latest Fiscal Year | 98 | 9,431 |
Originated Two Years before Latest Fiscal Year | 8,570 | 28 |
Originated Three Years before Latest Fiscal Year | 0 | 171 |
Originated Four Years before Latest Fiscal Year | 22 | 27 |
Prior | 1,725 | 689 |
Revolving loans | 304 | 304 |
Total | 10,827 | 10,776 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Multi-family | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 68,339 | 14,323 |
Originated in Fiscal Year before Latest Fiscal Year | 14,425 | 170,519 |
Originated Two Years before Latest Fiscal Year | 118,073 | 26,734 |
Originated Three Years before Latest Fiscal Year | 26,342 | 28,137 |
Originated Four Years before Latest Fiscal Year | 27,755 | 10,289 |
Prior | 38,633 | 29,648 |
Revolving loans | 296 | 254 |
Total | 293,863 | 279,904 |
Multi-family | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 60,108 | 4,483 |
Originated in Fiscal Year before Latest Fiscal Year | 12,809 | 170,519 |
Originated Two Years before Latest Fiscal Year | 118,073 | 25,835 |
Originated Three Years before Latest Fiscal Year | 25,443 | 28,137 |
Originated Four Years before Latest Fiscal Year | 27,755 | 10,185 |
Prior | 20,646 | 11,538 |
Revolving loans | 296 | 254 |
Total | 265,130 | 250,951 |
Multi-family | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 8,140 | 8,140 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 49 | 14,558 |
Revolving loans | 0 | 0 |
Total | 8,189 | 22,698 |
Multi-family | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 91 | 1,700 |
Originated in Fiscal Year before Latest Fiscal Year | 1,616 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 899 |
Originated Three Years before Latest Fiscal Year | 899 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 104 |
Prior | 17,938 | 3,552 |
Revolving loans | 0 | 0 |
Total | 20,544 | 6,255 |
Multi-family | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Farmland | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 3,011 | 10,104 |
Originated in Fiscal Year before Latest Fiscal Year | 9,674 | 4,735 |
Originated Two Years before Latest Fiscal Year | 4,636 | 14,989 |
Originated Three Years before Latest Fiscal Year | 16,116 | 12,255 |
Originated Four Years before Latest Fiscal Year | 11,402 | 3,745 |
Prior | 22,076 | 20,101 |
Revolving loans | 1,508 | 1,487 |
Total | 68,423 | 67,416 |
Farmland | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 3,011 | 10,104 |
Originated in Fiscal Year before Latest Fiscal Year | 9,674 | 4,735 |
Originated Two Years before Latest Fiscal Year | 4,636 | 13,405 |
Originated Three Years before Latest Fiscal Year | 14,535 | 12,255 |
Originated Four Years before Latest Fiscal Year | 11,402 | 3,723 |
Prior | 20,824 | 18,636 |
Revolving loans | 1,460 | 1,439 |
Total | 65,542 | 64,297 |
Farmland | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 1,451 |
Originated Three Years before Latest Fiscal Year | 1,451 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 96 |
Revolving loans | 0 | 0 |
Total | 1,451 | 1,547 |
Farmland | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 133 |
Originated Three Years before Latest Fiscal Year | 14 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 22 |
Prior | 115 | 269 |
Revolving loans | 0 | 0 |
Total | 129 | 424 |
Farmland | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 116 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 1,137 | 1,100 |
Revolving loans | 48 | 48 |
Total | 1,301 | 1,148 |
Farmland | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Farmland | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Construction and land development | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 24,414 | 67,073 |
Originated in Fiscal Year before Latest Fiscal Year | 72,613 | 234,092 |
Originated Two Years before Latest Fiscal Year | 253,819 | 104,997 |
Originated Three Years before Latest Fiscal Year | 95,592 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 677 |
Prior | 1,580 | 1,020 |
Revolving loans | 28,510 | 44,734 |
Total | 476,528 | 452,593 |
Construction and land development | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 23,239 | 65,538 |
Originated in Fiscal Year before Latest Fiscal Year | 71,328 | 233,660 |
Originated Two Years before Latest Fiscal Year | 232,968 | 88,047 |
Originated Three Years before Latest Fiscal Year | 68,230 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 677 |
Prior | 1,478 | 916 |
Revolving loans | 28,510 | 29,385 |
Total | 425,753 | 418,223 |
Construction and land development | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 9,851 | 0 |
Originated Three Years before Latest Fiscal Year | 5,324 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 40 | 40 |
Revolving loans | 0 | 0 |
Total | 15,215 | 40 |
Construction and land development | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 16,594 |
Originated Three Years before Latest Fiscal Year | 6,000 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 15,349 |
Total | 6,000 | 31,943 |
Construction and land development | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 10,594 | 0 |
Originated Three Years before Latest Fiscal Year | 15,684 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 39 | 39 |
Revolving loans | 0 | 0 |
Total | 26,317 | 39 |
Construction and land development | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Construction and land development | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 1,175 | 1,535 |
Originated in Fiscal Year before Latest Fiscal Year | 1,285 | 432 |
Originated Two Years before Latest Fiscal Year | 406 | 356 |
Originated Three Years before Latest Fiscal Year | 354 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 23 | 25 |
Revolving loans | 0 | 0 |
Total | 3,243 | 2,348 |
Residential first lien | Residential Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 13,780 | 42,729 |
Originated in Fiscal Year before Latest Fiscal Year | 42,608 | 74,663 |
Originated Two Years before Latest Fiscal Year | 71,493 | 37,344 |
Originated Three Years before Latest Fiscal Year | 36,782 | 29,628 |
Originated Four Years before Latest Fiscal Year | 28,522 | 19,786 |
Prior | 121,805 | 113,234 |
Revolving loans | 49 | 4 |
Total | 315,039 | 317,388 |
Residential first lien | Residential Loan Portfolio | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 13,780 | 42,550 |
Originated in Fiscal Year before Latest Fiscal Year | 42,466 | 74,613 |
Originated Two Years before Latest Fiscal Year | 71,297 | 37,009 |
Originated Three Years before Latest Fiscal Year | 36,259 | 29,628 |
Originated Four Years before Latest Fiscal Year | 28,064 | 19,647 |
Prior | 118,874 | 110,703 |
Revolving loans | 49 | 4 |
Total | 310,789 | 314,154 |
Residential first lien | Residential Loan Portfolio | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 179 |
Originated in Fiscal Year before Latest Fiscal Year | 142 | 50 |
Originated Two Years before Latest Fiscal Year | 196 | 335 |
Originated Three Years before Latest Fiscal Year | 523 | 0 |
Originated Four Years before Latest Fiscal Year | 458 | 139 |
Prior | 2,931 | 2,531 |
Revolving loans | 0 | 0 |
Total | 4,250 | 3,234 |
Other residential | Residential Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 1,337 | 3,245 |
Originated in Fiscal Year before Latest Fiscal Year | 2,400 | 1,122 |
Originated Two Years before Latest Fiscal Year | 984 | 377 |
Originated Three Years before Latest Fiscal Year | 297 | 409 |
Originated Four Years before Latest Fiscal Year | 355 | 836 |
Prior | 2,495 | 2,187 |
Revolving loans | 55,486 | 55,019 |
Total | 63,354 | 63,195 |
Other residential | Residential Loan Portfolio | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 1,337 | 3,245 |
Originated in Fiscal Year before Latest Fiscal Year | 2,400 | 1,113 |
Originated Two Years before Latest Fiscal Year | 984 | 377 |
Originated Three Years before Latest Fiscal Year | 297 | 409 |
Originated Four Years before Latest Fiscal Year | 355 | 836 |
Prior | 2,330 | 2,009 |
Revolving loans | 55,042 | 54,571 |
Total | 62,745 | 62,560 |
Other residential | Residential Loan Portfolio | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 9 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 165 | 178 |
Revolving loans | 444 | 448 |
Total | 609 | 635 |
Consumer | Consumer Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 6,512 | 30,759 |
Originated in Fiscal Year before Latest Fiscal Year | 25,479 | 24,245 |
Originated Two Years before Latest Fiscal Year | 19,670 | 31,952 |
Originated Three Years before Latest Fiscal Year | 27,242 | 6,122 |
Originated Four Years before Latest Fiscal Year | 4,597 | 2,313 |
Prior | 10,278 | 10,850 |
Revolving loans | 985 | 1,502 |
Total | 94,763 | 107,743 |
Consumer | Consumer Loan Portfolio | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 6,512 | 30,748 |
Originated in Fiscal Year before Latest Fiscal Year | 25,468 | 24,190 |
Originated Two Years before Latest Fiscal Year | 19,629 | 31,946 |
Originated Three Years before Latest Fiscal Year | 27,238 | 6,116 |
Originated Four Years before Latest Fiscal Year | 4,597 | 2,313 |
Prior | 10,259 | 10,794 |
Revolving loans | 983 | 1,502 |
Total | 94,686 | 107,609 |
Consumer | Consumer Loan Portfolio | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 11 |
Originated in Fiscal Year before Latest Fiscal Year | 11 | 55 |
Originated Two Years before Latest Fiscal Year | 41 | 6 |
Originated Three Years before Latest Fiscal Year | 4 | 6 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 19 | 56 |
Revolving loans | 2 | 0 |
Total | 77 | 134 |
Consumer other | Consumer Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 65 | 190,018 |
Originated in Fiscal Year before Latest Fiscal Year | 161,083 | 392,184 |
Originated Two Years before Latest Fiscal Year | 310,716 | 149,791 |
Originated Three Years before Latest Fiscal Year | 112,879 | 63,461 |
Originated Four Years before Latest Fiscal Year | 44,810 | 23,991 |
Prior | 21,726 | 7,990 |
Revolving loans | 0 | 0 |
Total | 651,279 | 827,435 |
Consumer other | Consumer Loan Portfolio | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 65 | 190,018 |
Originated in Fiscal Year before Latest Fiscal Year | 161,083 | 392,184 |
Originated Two Years before Latest Fiscal Year | 310,716 | 149,791 |
Originated Three Years before Latest Fiscal Year | 112,879 | 63,461 |
Originated Four Years before Latest Fiscal Year | 44,810 | 23,991 |
Prior | 21,726 | 7,987 |
Revolving loans | 0 | 0 |
Total | 651,279 | 827,432 |
Consumer other | Consumer Loan Portfolio | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 3 |
Revolving loans | 0 | 0 |
Total | $ 0 | $ 3 |
LOANS - Gross Writeoffs (Detail
LOANS - Gross Writeoffs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Risk category | ||||
Total | $ 5,256 | $ 4,034 | $ 10,292 | $ 6,433 |
Commercial Loan Portfolio | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 1,054 | 1,920 | ||
2022 | 937 | 2,011 | ||
2021 | 877 | 1,171 | ||
2020 | 3 | 171 | ||
Prior | 102 | 698 | ||
Revolving Loans | 0 | 103 | ||
Total | 2,973 | 6,074 | ||
Commercial Loan Portfolio | Commercial | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 475 | 475 | ||
2022 | 0 | 0 | ||
2021 | 750 | 750 | ||
2020 | 0 | 10 | ||
Prior | 14 | 14 | ||
Revolving Loans | 0 | 103 | ||
Total | 1,239 | 1,352 | ||
Commercial Loan Portfolio | Commercial other | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 579 | 1,445 | ||
2022 | 937 | 2,011 | ||
2021 | 127 | 421 | ||
2020 | 3 | 23 | ||
Prior | 83 | 126 | ||
Revolving Loans | 0 | 0 | ||
Total | 1,729 | 4,026 | ||
Commercial Loan Portfolio | Commercial real estate non-owner occupied | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 0 | 0 | ||
2022 | 0 | 0 | ||
2021 | 0 | 0 | ||
2020 | 0 | 138 | ||
Prior | 5 | 558 | ||
Revolving Loans | 0 | 0 | ||
Total | 5 | 696 | ||
Residential Loan Portfolio | Residential first lien | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 0 | 0 | ||
2022 | 0 | 11 | ||
2021 | 0 | 0 | ||
2020 | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 0 | ||
Total | 0 | 11 | ||
Residential Loan Portfolio | Other residential | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 0 | 0 | ||
2022 | 0 | 16 | ||
2021 | 0 | 0 | ||
2020 | 0 | 0 | ||
Prior | 0 | 0 | ||
Revolving Loans | 0 | 8 | ||
Total | 0 | 24 | ||
Consumer Loan Portfolio | Consumer | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 22 | 21 | ||
2022 | 0 | 0 | ||
2021 | 5 | 5 | ||
2020 | 10 | 17 | ||
Prior | 0 | 27 | ||
Revolving Loans | 1 | 1 | ||
Total | 38 | 71 | ||
Consumer Loan Portfolio | Consumer other | ||||
Risk category | ||||
2024 | 1 | 1 | ||
2023 | 0 | 0 | ||
2022 | 0 | 0 | ||
2021 | 0 | 0 | ||
2020 | 0 | 0 | ||
Prior | 160 | 362 | ||
Revolving Loans | 0 | 0 | ||
Total | 161 | 363 | ||
Lease financing | ||||
Risk category | ||||
2024 | 0 | 0 | ||
2023 | 946 | 1,069 | ||
2022 | 900 | 2,270 | ||
2021 | 223 | 338 | ||
2020 | 15 | 52 | ||
Prior | 0 | 20 | ||
Revolving Loans | 0 | 0 | ||
Total | 2,084 | $ 771 | 3,749 | $ 1,161 |
Loan Portfolios, Excluding Commercial | ||||
Risk category | ||||
2024 | 1 | 1 | ||
2023 | 968 | 1,090 | ||
2022 | 900 | 2,297 | ||
2021 | 228 | 343 | ||
2020 | 25 | 69 | ||
Prior | 160 | 409 | ||
Revolving Loans | 1 | 9 | ||
Total | $ 2,283 | $ 4,218 |
PREMISES, EQUIPMENT AND LEASE_2
PREMISES, EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Lease right-of-use assets | $ 8,409 | $ 7,673 |
Total | 139,574 | 137,542 |
Accumulated depreciation | (56,534) | (54,728) |
Premises and equipment, net | 83,040 | 82,814 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | 15,968 | 15,968 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | 79,431 | 78,104 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | $ 35,766 | $ 35,797 |
PREMISES, EQUIPMENT AND LEASE_3
PREMISES, EQUIPMENT AND LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation on premises and equipment | $ 1,200 | $ 1,200 | $ 2,478 | $ 2,419 | |
Renewal term of lease (in years) | 10 years | 10 years | |||
Operating lease right-of-use asset | $ 8,400 | $ 8,400 | $ 7,700 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Premises and equipment, net | Premises and equipment, net | Premises and equipment, net | ||
Operating lease liabilities | $ 9,851 | $ 9,851 | $ 9,300 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | ||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Remaining lease terms | 6 months | 6 months | |||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Remaining lease terms | 14 years | 14 years |
PREMISES, EQUIPMENT AND LEASE_4
PREMISES, EQUIPMENT AND LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Operating lease cost | $ 481 | $ 493 | $ 957 | $ 977 |
Operating cash flows from leases | 577 | 590 | 1,149 | 1,180 |
Right-of-use assets obtained in exchange for lease obligations | $ 1,317 | $ 218 | $ 1,539 | $ 1,348 |
Weighted average remaining lease term | 7 years 4 months 13 days | 8 years | 7 years 4 months 13 days | 8 years |
Weighted average discount rate | 3.58% | 3.29% | 3.58% | 3.29% |
PREMISES, EQUIPMENT AND LEASE_5
PREMISES, EQUIPMENT AND LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
2024 remaining | $ 971 | |
2025 | 1,652 | |
2026 | 1,555 | |
2027 | 1,413 | |
2028 | 1,359 | |
Thereafter | 4,328 | |
Total future minimum lease payments | 11,278 | |
Less imputed interest | (1,427) | |
Total operating lease liabilities | $ 9,851 | $ 9,300 |
DERIVATIVE INSTRUMENTS - Intere
DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Interest rate lock commitments | Other assets | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notional amount, asset | $ 5,679 | $ 2,405 |
Fair value gain (loss) | 120 | 62 |
Forward commitments to sell mortgage-backed securities | Other liabilities | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Fair value gain (loss) | (13) | (83) |
Notional amount, liability | $ 9,750 | $ 5,000 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Commercial FHA | ||||
Derivative disclosures | ||||
Net gains (losses) on derivative instruments | $ 0.1 | $ 0.1 | $ 0.1 | |
Interest rate swap contracts | ||||
Derivative disclosures | ||||
Notional amount of interest rate swaps | 6.7 | $ 6.9 | ||
Interest rate swap contracts | Other liabilities | ||||
Derivative disclosures | ||||
Fair value of offsetting counterparty derivative instruments | $ 0.4 | $ 0.3 |
DERIVATIVE INSTRUMENTS - Cash F
DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative disclosures | ||
Notional Amount | $ 425,000 | $ 400,000 |
Fair value gain included in other assets | 1,235 | 0 |
Fair value loss included in other liabilities | 7,820 | 8,443 |
Tax effected amount included in accumulated other comprehensive (loss) income | $ (4,807) | $ (6,164) |
Average remaining life in years | 2 years 3 months 21 days | 2 years 8 months 1 day |
Long | ||
Derivative disclosures | ||
Weighted average rate | 6.37% | 6.55% |
Short | ||
Derivative disclosures | ||
Weighted average rate | 5.40% | 5.41% |
DEPOSITS - Summary of Classific
DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Classification of deposits | ||
Noninterest-bearing demand | $ 1,108,521 | $ 1,145,395 |
Interest-bearing: | ||
Checking | 2,343,533 | 2,511,840 |
Money market | 1,143,668 | 1,135,629 |
Savings | 538,462 | 559,267 |
Time | 983,839 | 957,398 |
Total deposits | $ 6,118,023 | $ 6,309,529 |
FHLB ADVANCES AND OTHER BORRO_3
FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 600,000 | $ 476,000 |
FHLB advances, collateral for mortgage and home equity line of credit loans | 2,940,000 | 2,980,000 |
Midland States Bank | Fixed rate fixed term maturing April 2029 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 150,000 | $ 150,000 |
Interest rate | 4.79% | 4.94% |
Midland States Bank | Putable fixed rate maturing through May 2029 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 130,000 | $ 160,000 |
Interest rate | 3.34% | 3.07% |
Midland States Bank | Short term fixed rate matured July 2024 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 320,000 | $ 166,000 |
Interest rate | 5.41% | 5.45% |
SUBORDINATED DEBT - Subordinate
SUBORDINATED DEBT - Subordinated Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Subordinated Borrowing [Line Items] | ||
Outstanding amount | $ 92,000 | $ 94,000 |
Carrying amount | 91,656 | 93,546 |
5.00% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Outstanding amount | 64,750 | 66,750 |
Carrying amount | $ 64,663 | $ 66,573 |
Current rate | 5% | 5% |
Variable rate | 3.61% | |
5.50% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Outstanding amount | $ 27,250 | $ 27,250 |
Carrying amount | $ 26,993 | $ 26,973 |
Current rate | 5.50% | 5.50% |
Variable rate | 4.05% |
EARNINGS PER COMMON SHARE - Bas
EARNINGS PER COMMON SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income | $ 6,750 | $ 21,575 | $ 20,635 | $ 43,347 |
Preferred dividends declared | (2,228) | (2,228) | (4,456) | (4,456) |
Net income available to common shareholders | 4,522 | 19,347 | 16,179 | 38,891 |
Common shareholder dividends | (6,661) | (6,579) | (13,327) | (13,248) |
Unvested restricted stock award dividends | (103) | (80) | (209) | (160) |
Undistributed earnings to unvested restricted stock awards | 0 | (149) | (40) | (300) |
Undistributed earnings to common shareholders | (2,242) | 12,539 | 2,603 | 25,183 |
Basic | ||||
Distributed earnings to common shareholders | 6,661 | 6,579 | 13,327 | 13,248 |
Undistributed (loss) earnings to common shareholders | (2,242) | 12,539 | 2,603 | 25,183 |
Total common shareholders earnings, basic | 4,419 | 19,118 | 15,930 | 38,431 |
Diluted | ||||
Distributed earnings to common shareholders | 6,661 | 6,579 | 13,327 | 13,248 |
Undistributed (loss) earnings to common shareholders | (2,242) | 12,539 | 2,603 | 25,183 |
Total common shareholders earnings | 4,419 | 19,118 | 15,930 | 38,431 |
Add back: | ||||
Undistributed earnings reallocated from unvested restricted stock awards | 0 | 0 | 0 | 0 |
Total common shareholders earnings, diluted | $ 4,419 | $ 19,118 | $ 15,930 | $ 38,431 |
Weighted average common shares outstanding, basic (in shares) | 21,731,195 | 22,200,917 | 21,753,056 | 22,338,627 |
Dilutive effect of options (in shares) | 3,654 | 4,162 | 8,436 | 10,354 |
Weighted average common shares outstanding, diluted (in shares) | 21,734,849 | 22,205,079 | 21,761,492 | 22,348,981 |
Basic earnings per common share (in dollars per share) | $ 0.20 | $ 0.86 | $ 0.73 | $ 1.72 |
Diluted earnings per common share (in dollars per share) | $ 0.20 | $ 0.86 | $ 0.73 | $ 1.72 |
Stock option | ||||
Add back: | ||||
Antidilutive stock options (in shares) | 235,652 | 375,912 | 235,652 | 375,912 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Assets | |||||
Investment securities available for sale | $ 1,095,091 | $ 1,095,091 | $ 915,895 | ||
Equity securities | $ 4,563 | $ 4,563 | $ 4,501 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | Other assets | ||
U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | $ 2,994 | $ 2,994 | $ 1,097 | ||
U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 50,831 | 50,831 | 72,572 | ||
Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 86,182 | 86,182 | 83,529 | ||
State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 66,151 | 66,151 | 57,460 | ||
Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 84,799 | 84,799 | 99,172 | ||
Other securities | |||||
Assets | |||||
Investment securities available for sale | 99,958 | 99,958 | 27,565 | ||
Recurring member | |||||
Assets | |||||
Loans held for sale | 5,555 | 5,555 | 3,811 | ||
Derivative assets | 1,714 | 1,714 | 372 | ||
Total | 1,106,923 | 1,106,923 | 924,579 | ||
Liabilities | |||||
Derivative liabilities | 8,192 | 8,192 | 8,836 | ||
Total | 8,192 | 8,192 | 8,836 | ||
Recurring member | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 2,994 | 2,994 | 1,097 | ||
Recurring member | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 50,831 | 50,831 | 72,572 | ||
Recurring member | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 704,176 | 704,176 | 574,500 | ||
Recurring member | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 86,182 | 86,182 | 83,529 | ||
Recurring member | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 66,151 | 66,151 | 57,460 | ||
Recurring member | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 84,799 | 84,799 | 99,172 | ||
Recurring member | Other securities | |||||
Assets | |||||
Investment securities available for sale | 99,958 | 99,958 | |||
Recurring member | Equity securities | |||||
Assets | |||||
Equity securities | 4,563 | 4,563 | 4,501 | ||
Recurring member | Level 1 | |||||
Assets | |||||
Loans held for sale | 0 | 0 | 0 | ||
Derivative assets | 0 | 0 | 0 | ||
Total | 7,557 | 7,557 | 5,598 | ||
Liabilities | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Recurring member | Level 1 | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 2,994 | 2,994 | 1,097 | ||
Recurring member | Level 1 | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Other securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | |||
Recurring member | Level 1 | Equity securities | |||||
Assets | |||||
Equity securities | 4,563 | 4,563 | 4,501 | ||
Recurring member | Level 2 | |||||
Assets | |||||
Loans held for sale | 5,555 | 5,555 | 3,811 | ||
Derivative assets | 1,714 | 1,714 | 372 | ||
Total | 1,099,366 | 1,099,366 | 918,981 | ||
Liabilities | |||||
Derivative liabilities | 8,192 | 8,192 | 8,836 | ||
Total | 8,192 | 8,192 | 8,836 | ||
Recurring member | Level 2 | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 2 | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 50,831 | 50,831 | 72,572 | ||
Recurring member | Level 2 | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 704,176 | 704,176 | 574,500 | ||
Recurring member | Level 2 | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 86,182 | 86,182 | 83,529 | ||
Recurring member | Level 2 | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 66,151 | 66,151 | 57,460 | ||
Recurring member | Level 2 | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 84,799 | 84,799 | 99,172 | ||
Recurring member | Level 2 | Other securities | |||||
Assets | |||||
Investment securities available for sale | 99,958 | 99,958 | |||
Recurring member | Level 2 | Equity securities | |||||
Assets | |||||
Equity securities | 0 | 0 | 0 | ||
Recurring member | Level 3 | |||||
Assets | |||||
Loans held for sale | 0 | 0 | 0 | ||
Derivative assets | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Liabilities | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Recurring member | Level 3 | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Other securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | |||
Recurring member | Level 3 | Equity securities | |||||
Assets | |||||
Equity securities | 0 | 0 | 0 | ||
Non recurring member | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Nonperforming loans | 68,437 | 68,437 | 4,633 | ||
Other real estate owned | 8,304 | 8,304 | 9,112 | ||
Losses recognized on assets measured on non-recurring basis | |||||
Nonperforming loans | 3,647 | $ 3,573 | 13,870 | $ 4,676 | |
Other real estate owned | 730 | 0 | 730 | 0 | |
Total losses on assets measured on a nonrecurring basis | 4,377 | $ 3,573 | 14,600 | $ 4,676 | |
Non recurring member | Level 1 | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Nonperforming loans | 0 | 0 | 0 | ||
Other real estate owned | 0 | 0 | 0 | ||
Non recurring member | Level 2 | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Nonperforming loans | 64,167 | 64,167 | 3,964 | ||
Other real estate owned | 8,304 | 8,304 | 9,112 | ||
Non recurring member | Level 3 | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Nonperforming loans | 4,270 | 4,270 | 669 | ||
Other real estate owned | $ 0 | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - Non recurring member $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 68,437 | $ 4,633 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 4,270 | 669 |
Level 3 | Collateral based measurements | Nonperforming loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 4,270 | $ 669 |
Level 3 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Nonperforming loans | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount for type of property, age of appraisal and current status | 0.1932 | 0.2438 |
Level 3 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Nonperforming loans | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount for type of property, age of appraisal and current status | 0.2569 | 1 |
Level 3 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Nonperforming loans | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount for type of property, age of appraisal and current status | 0.2272 | 0.2746 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - Residential Loan Portfolio - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Aggregate fair value | $ 5,555 | $ 5,555 | $ 3,811 | ||
Difference | 251 | 251 | 203 | ||
Contractual principal | 5,304 | 5,304 | $ 3,608 | ||
Gains and losses from fair value changes | |||||
Residential loans held for sale | $ (1) | $ 50 | $ 17 | $ 149 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Accrued interest receivable | $ 25,756 | $ 24,934 |
Liabilities | ||
Trust preferred debentures | 50,921 | 50,616 |
Level 1 | ||
Assets | ||
Cash and due from banks | 123,719 | 134,212 |
Federal funds sold | 927 | 849 |
Loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 25,000 |
FHLB and other borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Trust preferred debentures | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans | 0 | 0 |
Accrued interest receivable | 25,756 | 24,934 |
Liabilities | ||
Deposits | 6,098,416 | 6,294,979 |
Short-term borrowings | 7,208 | 9,865 |
FHLB and other borrowings | 598,416 | 475,240 |
Subordinated debt | 84,135 | 90,253 |
Trust preferred debentures | 53,848 | 51,626 |
Level 3 | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans | 5,741,200 | 6,129,244 |
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 |
Carrying amount | ||
Assets | ||
Cash and due from banks | 123,719 | 134,212 |
Federal funds sold | 927 | 849 |
Loans | 5,851,994 | 6,131,079 |
Accrued interest receivable | 25,756 | 24,934 |
Liabilities | ||
Deposits | 6,118,023 | 6,309,529 |
Short-term borrowings | 7,208 | 34,865 |
FHLB and other borrowings | 600,000 | 476,000 |
Subordinated debt | 91,656 | 93,546 |
Trust preferred debentures | 50,921 | 50,616 |
Fair value | ||
Assets | ||
Cash and due from banks | 123,719 | 134,212 |
Federal funds sold | 927 | 849 |
Loans | 5,741,200 | 6,129,244 |
Accrued interest receivable | 25,756 | 24,934 |
Liabilities | ||
Deposits | 6,098,416 | 6,294,979 |
Short-term borrowings | 7,208 | 34,865 |
FHLB and other borrowings | 598,416 | 475,240 |
Subordinated debt | 84,135 | 90,253 |
Trust preferred debentures | $ 53,848 | $ 51,626 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | |||||
Anticipated material loss | $ 0 | $ 0 | |||
Losses as a result of make whole requests and loan repurchases | 0 | $ 0 | 0 | $ 0 | |
Liability for unresolved repurchase demands | 100,000 | 100,000 | $ 100,000 | ||
Commitments to extend credit | |||||
Loss Contingencies [Line Items] | |||||
Loan commitments | 756,302,000 | 756,302,000 | 855,489,000 | ||
Financial guarantees – standby letters of credit | |||||
Loss Contingencies [Line Items] | |||||
Loan commitments | $ 23,502,000 | $ 23,502,000 | $ 22,745,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Net interest income (expense) | $ 55,052 | $ 58,840 | $ 110,972 | $ 119,344 | |
Provision for credit losses | 16,800 | 5,879 | 30,800 | 9,014 | |
Noninterest income | 17,656 | 18,753 | 38,843 | 34,532 | |
Noninterest expense | 47,479 | 42,894 | 92,346 | 87,376 | |
Income before income taxes | 8,429 | 28,820 | 26,669 | 57,486 | |
Income taxes (benefit) | 1,679 | 7,245 | 6,034 | 14,139 | |
Net income | 6,750 | 21,575 | 20,635 | 43,347 | |
Total assets | 7,757,274 | 8,034,721 | 7,757,274 | 8,034,721 | $ 7,866,868 |
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | 57,223 | 61,035 | 115,439 | 123,643 | |
Provision for credit losses | 16,800 | 5,879 | 30,800 | 9,014 | |
Noninterest income | 10,875 | 11,874 | 25,366 | 21,495 | |
Noninterest expense | 42,792 | 38,550 | 82,890 | 78,397 | |
Income before income taxes | 8,506 | 28,480 | 27,115 | 57,727 | |
Income taxes (benefit) | 1,704 | 7,326 | 6,165 | 14,532 | |
Net income | 6,802 | 21,154 | 20,950 | 43,195 | |
Total assets | 7,734,375 | 8,025,617 | 7,734,375 | 8,025,617 | |
Wealth management | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | (12) | 0 | (20) | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | 6,801 | 6,269 | 13,933 | 12,680 | |
Noninterest expense | 5,342 | 4,675 | 10,754 | 9,516 | |
Income before income taxes | 1,447 | 1,594 | 3,159 | 3,164 | |
Income taxes (benefit) | 618 | 445 | 1,308 | 884 | |
Net income | 829 | 1,149 | 1,851 | 2,280 | |
Total assets | 34,940 | 30,249 | 34,940 | 30,249 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | (2,159) | (2,195) | (4,447) | (4,299) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | (20) | 610 | (456) | 357 | |
Noninterest expense | (655) | (331) | (1,298) | (537) | |
Income before income taxes | (1,524) | (1,254) | (3,605) | (3,405) | |
Income taxes (benefit) | (643) | (526) | (1,439) | (1,277) | |
Net income | (881) | (728) | (2,166) | (2,128) | |
Total assets | $ (12,041) | $ (21,145) | $ (12,041) | $ (21,145) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income - out-of-scope of Topic 606 | $ 3,301 | $ 4,310 | $ 10,439 | $ 6,710 |
Total noninterest income | 17,656 | 18,753 | 38,843 | 34,532 |
Trust management/administration fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,853 | 5,356 | 12,120 | 10,992 |
Investment advisory and brokerage fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 500 | 430 | 923 | 861 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 448 | 483 | 890 | 827 |
Nonsufficient fund fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,836 | 1,741 | 3,658 | 3,439 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,285 | 936 | 2,579 | 1,806 |
Interchange revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,563 | 3,696 | 6,921 | 7,108 |
Merchant services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 357 | 398 | 701 | 756 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 513 | $ 1,403 | $ 612 | $ 2,033 |