Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | MIDLAND STATES BANCORP, INC. | |
Entity Central Index Key | 0001466026 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Entity File Number | 001-35272 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Entity Incorporation, State or Country Code | IL | |
Entity Tax Identification Number | 37-1233196 | |
Entity Address, Postal Zip Code | 62401 | |
Entity Address, Address Line One | 1201 Network Centre Drive | |
Entity Address, City or Town | Effingham | |
Entity Address, Country | IL | |
Local Phone Number | 342-7321 | |
City Area Code | 217 | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | MSBI | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 23,203,015 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 445,097 | $ 392,694 |
Federal funds sold | 4,299 | 1,811 |
Cash and cash equivalents | 449,396 | 394,505 |
Investment securities available for sale, at fair value (allowance for credit losses of $75 at March 31, 2020) | 656,254 | 649,433 |
Equity securities, at fair value | 5,640 | 5,621 |
Loans | 4,376,204 | 4,401,410 |
Allowance for credit losses on loans | (38,545) | (28,028) |
Total loans, net | 4,337,659 | 4,373,382 |
Loans held for sale | 113,852 | 16,431 |
Premises and equipment, net | 90,118 | 91,055 |
Operating lease right-of-use asset | 14,078 | 14,224 |
Other real estate owned | 7,892 | 6,745 |
Nonmarketable equity securities | 46,068 | 44,505 |
Accrued interest receivable | 16,532 | 16,346 |
Loan servicing rights, at lower of cost or fair value | 44,566 | 53,824 |
Mortgage servicing rights held for sale | 1,460 | 1,972 |
Goodwill | 172,796 | 171,758 |
Other intangible assets, net | 33,124 | 34,886 |
Cash surrender value of life insurance policies | 143,323 | 142,423 |
Accrued income taxes receivable | 7,130 | 6,362 |
Other assets | 68,342 | 63,545 |
Total assets | 6,208,230 | 6,087,017 |
Deposits: | ||
Noninterest-bearing | 1,052,726 | 1,019,472 |
Interest-bearing | 3,597,914 | 3,524,782 |
Total deposits | 4,650,640 | 4,544,254 |
Short-term borrowings | 43,578 | 82,029 |
FHLB advances and other borrowings | 593,089 | 493,311 |
Subordinated debt | 169,505 | 176,653 |
Trust preferred debentures | 48,420 | 48,288 |
Accrued interest payable | 7,078 | 6,400 |
Deferred tax liabilities, net | 9,911 | 11,278 |
Operating lease liabilities | 15,048 | 15,369 |
Other liabilities | 39,801 | 47,524 |
Total liabilities | 5,577,070 | 5,425,106 |
Shareholders' Equity: | ||
Common stock, $0.01 par value; 40,000,000 shares authorized; 23,381,496 and 24,420,345 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 234 | 244 |
Capital surplus | 468,750 | 488,305 |
Retained earnings | 153,722 | 165,920 |
Accumulated other comprehensive income | 8,454 | 7,442 |
Total shareholders' equity | 631,160 | 661,911 |
Total liabilities and shareholders' equity | $ 6,208,230 | $ 6,087,017 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Investment securities, available-for-sale, allowance for credit loss | $ 75 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 23,381,496 | 24,420,345 |
Common stock, shares outstanding | 23,381,496 | 24,420,345 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Loans: | ||
Taxable | $ 53,539 | $ 51,882 |
Tax exempt | 836 | 974 |
Loans held for sale | 191 | 299 |
Investment securities: | ||
Taxable | 4,094 | 3,683 |
Tax exempt | 987 | 1,066 |
Nonmarketable equity securities | 605 | 621 |
Federal funds sold and cash investments | 1,062 | 907 |
Total interest income | 61,314 | 59,432 |
Interest expense: | ||
Deposits | 8,362 | 7,363 |
Short-term borrowings | 101 | 237 |
FHLB advances and other borrowings | 2,967 | 3,847 |
Subordinated debt | 2,509 | 1,514 |
Trust preferred debentures | 724 | 870 |
Total interest expense | 14,663 | 13,831 |
Net interest income | 46,651 | 45,601 |
Provision for credit losses on loans | 10,569 | 3,243 |
Net interest income after provision for credit losses on loans | 36,082 | 42,358 |
Noninterest income: | ||
Wealth management revenue | 5,677 | 4,953 |
Commercial FHA revenue | 1,267 | 3,295 |
Residential mortgage banking revenue | 1,755 | 834 |
Service charges on deposit accounts | 2,656 | 2,520 |
Interchange revenue | 2,833 | 2,680 |
Gain on sales of other real estate owned | 15 | 66 |
Impairment on commercial mortgage servicing rights | (8,468) | (25) |
Other income | 2,863 | 2,752 |
Total noninterest income | 8,598 | 17,075 |
Noninterest expense: | ||
Salaries and employee benefits | 21,063 | 22,039 |
Occupancy and equipment | 4,869 | 4,853 |
Data processing | 5,334 | 4,724 |
FDIC insurance | 1 | 435 |
Professional | 1,855 | 2,073 |
Marketing | 981 | 1,234 |
Communications | 1,290 | 817 |
Loan expense | 516 | 360 |
Other real estate owned | 711 | 93 |
Amortization of intangible assets | 1,762 | 1,810 |
Loss on mortgage servicing rights held for sale | 496 | |
Other expense | 3,797 | 2,659 |
Total noninterest expense | 42,675 | 41,097 |
Income before income taxes | 2,005 | 18,336 |
Income taxes | 456 | 4,354 |
Net income | 1,549 | 13,982 |
Preferred stock dividends and premium amortization | 34 | |
Net income available to common shareholders | $ 1,549 | $ 13,948 |
Per common share data: | ||
Basic earnings per common share | $ 0.06 | $ 0.58 |
Diluted earnings per common share | $ 0.06 | $ 0.57 |
Weighted average common shares outstanding | 24,433,975 | 23,998,119 |
Weighted average diluted common shares outstanding | 24,538,002 | 24,204,661 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,549 | $ 13,982 |
Investment securities available for sale: | ||
Unrealized gains that occurred during the period | 1,321 | 7,708 |
Provision for credit loss expense | 75 | |
Income tax effect | (384) | (2,120) |
Change in investment securities available for sale, net of tax | 1,012 | 5,588 |
Other comprehensive income, net of tax | 1,012 | 5,588 |
Total comprehensive income | $ 2,561 | $ 19,570 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred stock | Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive (loss) | Total |
Beginning Balance at Dec. 31, 2018 | $ 2,781 | $ 238 | $ 473,833 | $ 133,781 | $ (2,108) | $ 608,525 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,982 | 13,982 | ||||
Other comprehensive income | 5,588 | 5,588 | ||||
Common dividends declared | (5,823) | (5,823) | ||||
Preferred dividends declared | (82) | (82) | ||||
Preferred stock, premium amortization | (48) | 48 | 48 | |||
Share-based compensation expense | 846 | 846 | ||||
Issuance of common stock under employee benefit plans | 1,132 | 1,132 | ||||
Ending Balance at Mar. 31, 2019 | $ 2,733 | 238 | 475,811 | 141,906 | 3,480 | 624,168 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principles | (7,172) | (7,172) | ||||
Adjusted balances | 244 | 488,305 | 158,748 | 7,442 | 654,739 | |
Beginning Balance at Dec. 31, 2019 | 244 | 488,305 | 165,920 | 7,442 | 661,911 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,549 | 1,549 | ||||
Other comprehensive income | 1,012 | 1,012 | ||||
Common dividends declared | (6,575) | (6,575) | ||||
Common stock repurchased | (10) | (20,552) | (20,562) | |||
Share-based compensation expense | 602 | 602 | ||||
Issuance of common stock under employee benefit plans | 395 | 395 | ||||
Ending Balance at Mar. 31, 2020 | $ 234 | $ 468,750 | $ 153,722 | $ 8,454 | $ 631,160 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||
Common dividend declared, per share | $ 0.2675 | $ 0.2425 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 1,549 | $ 13,982 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 11,579 | 3,243 |
Depreciation on premises and equipment | 1,677 | 1,601 |
Amortization of intangible assets | 1,762 | 1,810 |
Amortization of operating lease right-of-use asset | 670 | 708 |
Share-based compensation expense | 602 | 846 |
Increase in cash surrender value of life insurance | (900) | (903) |
Investment securities amortization, net | 702 | 964 |
Gain on sales of other real estate owned | (15) | (66) |
Impairment of other real estate owned | 605 | 16 |
Origination of loans held for sale | (69,332) | (84,231) |
Proceeds from sales of loans held for sale | 73,114 | 99,323 |
Gain on loans sold and held for sale | (2,178) | (3,121) |
Loss on disposals of premises and equipment | 9 | 7 |
Amortization of loan servicing rights | 790 | 678 |
Impairment of loan servicing rights | 8,468 | 25 |
Impairment of assets held for sale | 642 | |
Net change in other operating assets and liabilities: | ||
Accrued interest receivable | (186) | (109) |
Accrued interest payable | 678 | 1,399 |
Accrued income taxes receivable | (768) | 3,739 |
Operating lease liabilities | (943) | (741) |
Other assets | (4,912) | (1,920) |
Other liabilities | (8,062) | (7,252) |
Net cash provided by operating activities | 15,551 | 29,998 |
Investment securities available for sale: | ||
Purchases | (50,442) | (15,565) |
Sales | 0 | 0 |
Maturities and payments | 44,242 | 27,023 |
Equity securities: | ||
Purchases | (23) | (16) |
Net (increase) decrease in loans | (85,972) | 44,390 |
Purchases of premises and equipment | (765) | (1,282) |
Proceeds from sales of mortgage servicing rights held for sale | 3,288 | |
Purchases of nonmarketable equity securities | (1,563) | (7,971) |
Sales of nonmarketable equity securities | 4,434 | |
Proceeds from sales of other real estate owned | 120 | 1,164 |
Net cash (used in) provided by investing activities | (94,403) | 55,465 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 106,386 | (37,882) |
Net (decrease) increase in short-term borrowings | (38,451) | (8,403) |
Proceeds from FHLB borrowings | 100,000 | 195,000 |
Payments made on FHLB borrowings | (200) | (165,196) |
Payments made on other borrowings | (1,429) | |
Payments made on subordinated debt | (7,250) | |
Cash dividends paid on preferred stock | (82) | |
Cash dividends paid on common stock | (6,575) | (5,823) |
Common stock repurchased | (20,562) | |
Proceeds from issuance of common stock under employee benefit plans | 395 | 1,132 |
Net cash provided by (used in) financing activities | 133,743 | (22,683) |
Net increase (decrease) in cash and cash equivalents | 54,891 | 62,780 |
Cash and cash equivalents: | ||
Beginning of period | 394,505 | 213,700 |
End of period | 449,396 | 276,480 |
Cash payments for: | ||
Interest paid on deposits and borrowed funds | 13,985 | 12,432 |
Income tax paid (net of refunds) | 898 | $ 337 |
Supplemental disclosures of noncash investing and financing activities: | ||
Transfer of investment securities held to maturity to investment securities available for sale | 99,688 | |
Transfer of loans to other real estate owned | $ 1,813 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS DESCRIPTION | |
BUSINESS DESCRIPTION | Note 1 – Business Description Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Its wholly owned banking subsidiary, Midland States Bank (the “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, and insurance and financial planning services. In addition, multifamily and healthcare facility Federal Housing Administration (“FHA”) financing is provided through Love Funding Corporation (“Love Funding”), our non-bank subsidiary. On July 17, 2019, we completed the acquisition of HomeStar Financial Group, Inc. (“HomeStar”) and its banking subsidiary, HomeStar Bank and Financial Services (“HomeStar Bank”), as more fully described in Note 3 to the consolidated financial statements. Through the acquisition of HomeStar, we expanded our commercial and retail banking presence in northern Illinois. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company are unaudited and 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, 2019, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2020. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2019 Annual Report on Form 10-K. Since December 31, 2019, the Company has adopted ASU No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” . See “Accounting Guidance Adopted in 2020” for additional information. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the Coronavirus Disease 2019 (“COVID-19”) pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020, which provides a variety of provisions, including, among other things, a small business lending program to originate paycheck protection loans, temporary relief for community bank leverage ratio, and temporary relief for community banks related to troubled debt restructurings. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the financial condition and results of operations for the interim periods presented herein, have been included. Certain reclassifications of 2019 amounts have been made to conform to the 2020 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying unaudited balance sheets. Accounting Guidance Adopted in 2020 FASB ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after December 31, 2019, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $7.2 million as of January 1, 2020 for the cumulative effect of adopting ASC 326. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”), previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $4.2 million of allowance for credit losses (“ACL”) on loans. The noncredit discount of The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Impact of Under Pre-ASC 326 ASC 326 (dollars in thousands) ASC 326 Adoption Adoption Assets: Loans Commercial $ 1,056,986 $ 1,055,185 $ 1,801 Commercial real estate 1,528,119 1,526,504 1,615 Construction and land development 209,551 208,733 818 Residential real estate 570,882 568,291 2,591 Consumer 710,646 710,116 530 Lease Financing 332,581 332,581 — Allowance for credit losses on loans (40,811) (28,028) (12,783) Liabilities: Allowance for credit losses on unfunded commitments (1,507) (1,244) (263) Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, and deferred loan fees and costs. Accrued interest receivable totaled million at March 31, 2020 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the effective yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loans are charged off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximately level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Purchased Credit Deteriorated Loans The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL on loans is determined using the same methodology as other loans held for investment. The initial ACL on loans determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACL on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL on loans are recorded through provision expense. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the loan balance is confirmed to no longer be collectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, changes in unemployment rates, property values or relevant factors. The Company considers the following when estimating credit losses: 1) available information relevant to assessing the collectability of cash flows including internal information, external information or a combination of both relating to past events, current conditions and reasonable and supportable forecasts; 2) relevant qualitative and quantitative factors relating to the environment in which the Bank operates and factors specific to the borrower; 3) off-balance-sheet credit exposures; and 4) credit enhancements. ACL on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics which may include any one or a combination of the following: internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. The ACL for a specific portfolio segment is computed by multiplying the loss rate by the amortized cost balance of the segment. As appropriate, newer credit products or portfolios with limited historical loss may use applicable external data for determining the ACL until experience justifies that sufficient product maturity supports the estimate of expected credit losses. Specific reserves reflect impairment on loans identified for evaluation or individually considered nonperforming, including troubled debt restructurings and receivables where the Company has determined foreclosure is probable. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of nonaccrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans and leases where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include, nonaccrual loans with an effective balance greater than $500,000, accruing loans 90 days past due or greater with an effective balance greater than $100,000, specialty lending relationships and other loans as determined by management. ACL for consumer and residential loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis. The provision for credit losses on loans on individually evaluated loans is recognized on the basis of the present value of expected future cash flows discounted at the effective interest rate, the fair value of collateral adjusted for estimated costs to sell, or the observable market price as of the relevant date. The table below identifies the Company’s loan portfolio segments and classes. Segment Class Commercial Commercial Commercial Real Estate Commercial Real Estate Non-Owner Occupied Construction and Land Development Construction and Land Development Residential Real Estate Residential First Lien Consumer Consumer Lease Financing Lease Financing The principal risks to each segment of loans are as follows: Commercial Commercial real estate Construction and land development – Residential real estate Consumer Lease financing Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. The Company applies the collateral-dependent practical expedient, to calculate the ACL on loans for an individually evaluated collateral-dependent loan by measuring the fair value of collateral at the reporting date, regardless of whether foreclosure is probable. Fair value of collateral is adjusted for costs to sell when repayment or satisfaction of the loan depends on the sale of the collateral. ACL on loans adjustments for estimated costs to sell are not appropriate when the repayment of the collateral-dependent loan is expected from the operation of the collateral. Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Troubled Debt Restructurings (“TDR”) A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. The ACL on loans on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on OBS credit exposures is adjusted as a provision for credit loss expense included in other expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. Allowance for Credit Losses on Available-For-Sale Securities For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recorded in other comprehensive income. Changes in the ACL are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2020 | |
ACQUISITIONS | |
ACQUISITIONS | Note 3 – Acquisitions HomeStar Financial Group, Inc. Management’s valuation of the tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid for the allocation is reflected in the table below. Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. During the first quarter of 2020, the Company updated its valuation of deferred tax assets and other liabilities, which required a measurement period adjustment of $1.0 million to increase goodwill. (dollars in thousands) HomeStar Assets acquired: Cash and cash equivalents $ 70,900 Investment securities available for sale 54,963 Equity securities 2,153 Loans 211,070 Loans held for sale 3,562 Premises and equipment 4,049 Operating lease right-of-use asset 5,177 Other real estate owned 1,092 Nonmarketable equity securities 454 Accrued interest receivable 1,185 Loan servicing rights 1,089 Mortgage servicing rights held for sale 1,701 Intangible assets 4,600 Deferred tax assets, net 2,732 Other assets 1,541 Total assets acquired 366,268 Liabilities assumed: Deposits 321,740 FHLB advances and other borrowings 31,369 Accrued interest payable 115 Operating lease liabilities 6,232 Other liabilities 3,575 Total liabilities assumed 363,031 Net assets acquired 3,237 Goodwill 8,123 Total consideration paid $ 11,360 Intangible assets: Core deposit intangible $ 4,300 Customer relationship intangible 300 Total intangible assets $ 4,600 Estimated useful lives: Core deposit intangible 12 years Customer relationship intangible 6 years Goodwill arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of HomeStar into the Company. The goodwill is assigned as part of the Company’s banking reporting unit. The portion of the consideration paid allocated to goodwill will not be deductible for tax purposes. The identifiable assets acquired from HomeStar included core deposit intangibles and customer relationship intangibles, which are being amortized on an accelerated basis as shown above. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | Note 4 – Investment Securities Investment Securities Available for Sale Investment securities as of March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Allowance Gross Gross for credit Amortized unrealized unrealized losses on Fair (dollars in thousands) cost gains losses investments value Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 46,428 $ 929 $ — $ — $ 47,357 Mortgage-backed securities - agency 317,332 9,417 49 — 326,700 Mortgage-backed securities - non-agency 28,121 — 840 — 27,281 State and municipal securities 112,500 3,897 284 19 116,094 Corporate securities 140,287 1,168 2,577 56 138,822 Total available for sale securities $ 644,668 $ 15,411 $ 3,750 $ 75 $ 656,254 December 31, 2019 Allowance Gross Gross for credit Amortized unrealized unrealized losses on Fair (dollars in thousands) cost gains losses investments value Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 59,600 $ 442 $ 22 N/A $ 60,020 Mortgage-backed securities - agency 321,840 3,368 234 N/A 324,974 Mortgage-backed securities - non-agency 17,198 3 53 N/A 17,148 State and municipal securities 119,371 5,195 11 N/A 124,555 Corporate securities 121,159 2,131 554 N/A 122,736 Total available for sale securities $ 639,168 $ 11,139 $ 874 N/A $ 649,433 March 31, 2020 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss Investment securities available for sale Mortgage-backed securities - agency $ 10,175 $ 42 $ 1,255 $ 7 $ 11,430 $ 49 Mortgage-backed securities - non-agency 25,849 840 — — 25,849 840 Corporate securities 41,499 1,287 — — 41,499 1,287 Total available for sale securities $ 77,523 $ 2,169 $ 1,255 $ 7 $ 78,778 $ 2,176 December 31, 2019 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 7,200 $ 22 $ — $ — $ 7,200 $ 22 Mortgage-backed securities - agency 75,336 170 7,170 64 82,506 234 Mortgage-backed securities - non-agency 11,059 53 — — 11,059 53 State and municipal securities 1,813 11 — — 1,813 11 Corporate securities 20,269 481 3,915 73 24,184 554 Total available for sale securities $ 115,677 $ 737 $ 11,085 $ 137 $ 126,762 $ 874 For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and other market conditions, and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. At March 31, 2020, 74 investment securities available for sale had unrealized losses with aggregate depreciation of 2.81% from their amortized cost basis. The unrealized losses related principally to the fluctuations in the current rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery. The table below presents a rollforward by major security type for the three months ended March 31, 2020 of the ACL on investment securities available for sale held at period end: State and municipal Corporate (dollars in thousands) securities securities Balances, January 1, 2020 $ — $ — Impact of adopting ASC 326 — — Additions for securities for which no previous expected credit losses were recognized 19 56 Balances, March 31, 2020 $ 19 $ 56 The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at March 31, 2020. 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. Amortized Fair (dollars in thousands) cost value Investment securities available for sale Within one year $ 33,584 $ 33,801 After one year through five years 78,025 79,387 After five years through ten years 169,041 169,579 After ten years 18,565 19,506 Mortgage-backed securities 345,453 353,981 Total available for sale securities $ 644,668 $ 656,254 There were no sales of investment securities available for sale for the three months ended March 31, 2020 and 2019. Equity Securities Equity securities are recorded at fair value and totaled $5.6 million at March 31, 2020 and December 31, 2019. There were no sales of equity securities for the three months ended March 31, 2020 and 2019. During the three months ended March 31, 2020, the Company recognized unrealized losses of $1,000 , while unrealized gains of $67,000 were recognized during the three months ended March 31, 2019. Net unrealized gains and losses on equity securities are recorded in other income in the consolidated statements of income. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2020 | |
LOANS | |
LOANS | Note 5 – Loans March 31, December 31, (dollars in thousands) 2020 2019 Commercial: Commercial $ 649,403 $ 628,056 Commercial Other 443,376 427,129 Commercial real estate: Commercial real estate non-owner occupied 809,628 825,874 Commercial real estate owner occupied 471,360 464,601 Multi-family 142,770 146,795 Farmland 83,522 89,234 Construction and land development 208,361 208,733 Total commercial loans 2,808,420 2,790,422 Residential real estate: Residential first lien 441,495 456,107 Other residential 106,519 112,184 Consumer: Consumer 85,162 100,732 Consumer Other 588,242 609,384 Lease financing 346,366 332,581 Total loans, gross $ 4,376,204 $ 4,401,410 At March 31, 2020, the Company had commercial, residential and consumer loans held for sale totaling $113.9 million compared to $16.4 million at December 31, 2019. During the first quarter of 2020, the Company had committed to a plan to sell certain loans and transferred $99.7 million of consumer loans to loans held for sale with no gain or loss recognized upon the transfer. The sale is expected to be completed in May 2020. During the three months ended March 31, 2020 and 2019, the Company sold commercial and residential real estate loans with proceeds totaling $73.1 million and $99.3 million, respectively. The aggregate loans outstanding to the Company’s directors, executive officers, principal shareholders and their affiliates totaled $21.7 million and $23.0 million at March 31, 2020 and December 31, 2019, respectively. During the three months ended March 31, 2020, there were $80,000 of new loans and other additions, while repayments and other reductions totaled $1.3 million. The following table represents, by loan portfolio segment, a summary of changes in the ACL on loans for the three months ended March 31, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Changes in allowance for credit losses on loans for the three months ended March 31, 2020: Balance, beginning of period $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 Impact of adopting ASC 326 2,327 4,104 724 1,211 (594) 774 8,546 Provision for credit losses on loans 1,730 5,755 (549) 257 256 3,120 10,569 Initial PCD Allowance 1,045 1,311 809 1,015 57 — 4,237 Charge-offs (3,398) (7,873) (12) (388) (598) (948) (13,217) Recoveries 5 14 59 44 191 69 382 Balance, end of period $ 11,740 $ 13,583 $ 1,321 $ 4,638 $ 1,954 $ 5,309 $ 38,545 Changes in allowance for credit losses on loans for the three months ended March 31, 2019: Balance, beginning of period $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Provision for credit losses on loans 118 1,945 63 514 329 274 3,243 Charge-offs (112) (58) (44) (153) (556) (459) (1,382) Recoveries 15 7 7 22 210 66 327 Balance, end of period $ 9,545 $ 6,617 $ 398 $ 2,424 $ 2,137 $ 1,970 $ 23,091 The following table represents, by loan portfolio segment, details regarding the balance in the allowance for loan loss and the recorded investment in loans as of December 31, 2019 by impairment evaluation method: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Allowance for credit losses on loans: Loans individually evaluated for impairment $ 3,563 $ 5,968 $ — $ 290 $ — $ 156 $ 9,977 Loans collectively evaluated for impairment 69 100 14 444 39 122 788 Non-impaired loans collectively evaluated for impairment 6,380 3,643 272 1,269 2,500 2,016 16,080 Loans acquired with deteriorated credit quality (1) 19 561 4 496 103 — 1,183 Total allowance for credit losses on loans $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 5,767 $ 22,698 $ 1,245 $ 5,329 $ — $ 697 $ 35,736 Impaired loans collectively evaluated for impairment 511 764 104 3,695 376 896 6,346 Non-impaired loans collectively evaluated for impairment 1,045,829 1,482,935 201,707 546,630 708,528 330,988 4,316,617 Loans acquired with deteriorated credit quality (1) 3,078 20,107 5,677 12,637 1,212 — 42,711 Total recorded investment (loan balance) $ 1,055,185 $ 1,526,504 $ 208,733 $ 568,291 $ 710,116 $ 332,581 $ 4,401,410 (1) Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows. As a method for estimating the allowance, it is a form of migration analysis that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. The LGD component is the percentage of defaulted loan balance that is ultimately charged off. 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. 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. For the initial implementation, the Company’s CECL estimate applies a 12-month forecast that incorporates macroeconomic trends (i.e., unemployment, real estate prices, etc.), political environment, and historical loss experience. Management also took into consideration forecast assumptions used in budgeting, capital planning and stress testing. These considerations influenced the selection of a 12-month period, combined with a 12-month reversion period, for a 24-month period before historic loss experience is applied to the expected loss estimate, consistently for every loan pool. 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, geographic location, effective interest rate, vintage, industry of borrower and concentrations, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Within the PD 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 leasing company 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: Consumer Loans and Commercial Loans Equipment Finance Loans and Leases Risk State Risk Rating Days Past Due 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 March 31, 2020 December 31, 2019 Nonaccrual Nonaccrual with no Allowance with no Allowance (dollars in thousands) Nonaccrual for Credit Loss Nonaccrual for Credit Loss Commercial: Commercial $ 1,948 $ — $ 1,492 $ 119 Commercial Other 2,504 371 4,351 1,519 Commercial real estate: Commercial real estate non-owner occupied 9,639 4,489 10,915 4,572 Commercial real estate owner occupied 11,672 6,613 4,396 2,648 Multi-family 10,557 2,392 6,231 1,430 Farmland — — 200 150 Construction and land development 4,954 693 1,304 1,245 Total commercial loans 41,274 14,558 28,889 11,683 Residential real estate: Residential first lien 8,414 789 6,140 2,416 Other residential 2,289 — 1,656 912 Consumer: Consumer 480 — 341 7 Consumer Other — — — — Lease financing 1,775 — 1,375 116 Total loans $ 54,232 $ 15,347 $ 38,401 $ 15,134 During the first quarter of 2019, as part of the adoption of CECL, $9.8 million of PCD loans were reclassified to nonaccrual loans. These PCD loans are predominantly well secured and in the process of collection. There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2020 and 2019 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $890,000 and $653,000 for the three months ended March 31, 2020 and 2019, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $20,000 and $32,000 for the three months ended March 31, 2020 and 2019, respectively. Collateral Dependent Financial Assets (dollars in thousands) March 31, 2020 Commercial Commercial Other $ 371 Commercial Real Estate Non-Owner Occupied 8,874 Owner Occupied 7,264 Multi-Family 10,338 Construction and Land Development 2,941 Residential Real Estate Residential First Lien 110 Total Collateral Dependent Loans $ 29,898 The aging status of the recorded investment in loans by portfolio as of March 31, 2020 is as follows: Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Total (dollars in thousands) Past Due Past Due or More Past Due Current Total Commercial: Commercial $ 214 $ 498 $ — $ 712 $ 646,743 $ 647,455 Commercial Other 7,367 3,474 147 10,988 429,884 440,872 Commercial real estate: Commercial real estate non-owner occupied 7,754 176 — 7,930 792,059 799,989 Commercial real estate owner occupied 149 93 — 242 459,446 459,688 Multi-family — — — — 132,213 132,213 Farmland 108 — — 108 83,414 83,522 Construction and land development 2,410 156 8 2,574 200,833 203,407 Total commercial loans 18,002 4,397 155 22,554 2,744,592 2,767,146 Residential real estate: Residential first lien 1,151 — 248 1,399 431,682 433,081 Other residential 888 — — 888 103,342 104,230 Consumer: Consumer 357 75 — 432 84,250 84,682 Consumer Other 4,913 4,063 — 8,976 579,266 588,242 Lease financing 5,601 945 376 6,922 337,669 344,591 Total loans $ 30,912 $ 9,480 $ 779 $ 41,171 $ 4,280,801 $ 4,321,972 Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Total (dollars in thousands) Past Due Past Due or More Past Due Current Total Commercial $ 5,910 $ 3,086 $ — $ 8,996 $ 1,037,268 $ 1,046,264 Commercial real estate 2,895 399 — 3,294 1,481,361 1,484,655 Construction and land development 1,539 72 — 1,611 200,141 201,752 Residential real estate 588 1,561 145 2,294 545,564 547,858 Consumer 6,701 4,154 — 10,855 697,708 708,563 Lease financing 1,783 1,188 218 3,189 328,017 331,206 Total loans (excluding PCI) $ 19,416 $ 10,460 $ 363 $ 30,239 $ 4,290,059 $ 4,320,298 Troubled Debt Restructurings Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs that continue to accrue interest and are greater than $50,000 are individually evaluated for impairment on a quarterly basis, and transferred to nonaccrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. The CARES Act provides all banks with the option to elect either or both of the following from March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the termination of the national emergency: (i) to suspend the requirements under GAAP for loan modifications related to the COVID–19 pandemic that would otherwise be categorized as a TDR; and/or (ii) to suspend any determination of a loan modified as a result of the effects of the COVID–19 pandemic as being a TDR, including impairment for accounting purposes. If a bank elects a suspension noted above, the suspension (i) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and (ii) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID–19 pandemic. The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (3) (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 60 $ 1,181 $ 1,241 $ 435 $ 369 $ 804 Commercial real estate 1,692 6,032 7,724 1,720 9,834 11,554 Construction and land development 43 163 206 45 167 212 Residential real estate 1,328 2,414 3,742 1,083 1,993 3,076 Consumer 32 — 32 35 — 35 Lease financing — 52 52 — 55 55 Total loans $ 3,155 $ 9,842 $ 12,997 $ 3,318 $ 12,418 $ 15,736 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. (3) TDRs as of December 31, 2019 exclude PCI loans. The ACL on TDRs totaled $760,000 and $2.0 million as of March 31, 2020 and December 31, 2019, respectively. The Company had no unfunded commitments in connection with TDRs at March 31, 2020 and December 31, 2019. The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2020 and 2019 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2020 Troubled debt restructurings: Number of loans — — — 6 — — 6 Pre-modification outstanding balance $ — $ — $ — $ 675 $ — $ — $ 675 Post-modification outstanding balance — — — 670 — — 670 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — For the three months ended March 31, 2019: Troubled debt restructurings: Number of loans — 3 1 7 1 — 12 Pre-modification outstanding balance $ — $ 1,924 $ 62 $ 224 $ 15 $ — $ 2,225 Post-modification outstanding balance — 1,838 17 222 15 — 2,092 Troubled debt restructurings that subsequently defaulted Number of loans — — 1 — — — 1 Recorded balance $ — $ — $ 43 $ — $ — $ — $ 43 Credit Quality Monitoring The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. 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, which includes commercial, commercial real estate and construction and land development loans. 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 of 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 and monitored 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 March 31, 2020 and December 31, 2019: Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial Commercial Acceptable credit quality $ 36,244 $ 118,192 $ 50,709 $ 79,205 $ 39,003 $ 64,281 $ 226,404 $ 614,038 Special mention 945 379 3,643 34 431 4,314 7,795 17,541 Substandard — 823 692 849 89 4,633 8,790 15,876 Substandard – nonaccrual — — 66 38 433 514 897 1,948 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 37,189 119,394 55,110 80,126 39,956 73,742 243,886 649,403 Commercial Other Acceptable credit quality 63,535 197,784 69,918 1,046 537 1,253 96,875 430,948 Special mention 152 1,188 825 5 15 — 2,050 4,235 Substandard 76 58 572 30 46 5 4,772 5,559 Substandard – nonaccrual — 1,229 836 — 49 12 378 2,504 Doubtful — — — — — — — — Not graded 61 — — — — — 69 130 Subtotal 63,824 200,259 72,151 1,081 647 1,270 104,144 443,376 Commercial Real Estate Non-Owner Occupied Acceptable credit quality 21,416 124,691 84,571 125,985 147,992 252,159 9,777 766,591 Special mention — 4,479 110 271 27 10,647 — 15,534 Substandard 906 — 282 5,204 474 10,707 250 17,823 Substandard – nonaccrual — 456 111 — 3,495 5,577 — 9,639 Doubtful — — — — — — — — Not graded — 41 — — — — — 41 Subtotal 22,322 129,667 85,074 131,460 151,988 279,090 10,027 809,628 Owner Occupied Acceptable credit quality 27,644 59,290 37,062 65,814 77,379 150,209 4,084 421,482 Special mention — 1,723 253 380 3,037 8,538 — 13,931 Substandard — 368 796 169 2,630 19,708 604 24,275 Substandard – nonaccrual — 264 170 249 33 9,962 994 11,672 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 27,644 61,645 38,281 66,612 83,079 188,417 5,682 471,360 Multi-Family Acceptable credit quality 795 15,248 21,586 32,871 22,933 32,045 1,101 126,579 Special mention — — — — — 1,348 — 1,348 Substandard — 198 — — 4,008 80 — 4,286 Substandard – nonaccrual — — — — 8,029 2,528 — 10,557 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 795 15,446 21,586 32,871 34,970 36,001 1,101 142,770 Farmland Acceptable credit quality 1,702 11,046 8,414 11,405 8,071 36,196 2,358 79,192 Special mention — 465 193 — 18 280 105 1,061 Substandard — 52 602 323 — 2,146 146 3,269 Substandard – nonaccrual — — — — — — — — Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 1,702 11,563 9,209 11,728 8,089 38,622 2,609 83,522 Construction and Land Development Acceptable credit quality 2,604 102,813 29,700 25,183 5,151 9,022 19,590 194,063 Special mention — — — 2,410 — 1,447 — 3,857 Substandard — 153 225 — — 919 — 1,297 Substandard – nonaccrual — — — — 150 4,804 — 4,954 Doubtful — — — — — — — — Not graded 4,190 — — — — — 4,190 Subtotal 2,604 107,156 29,925 27,593 5,301 16,192 19,590 208,361 Total Acceptable credit quality 153,940 629,064 301,960 341,509 301,066 545,165 360,189 2,632,893 Special mention 1,097 8,234 5,024 3,100 3,528 26,574 9,950 57,507 Substandard 982 1,652 3,169 6,575 7,247 38,198 14,562 72,385 Substandard – nonaccrual — 1,949 1,183 287 12,189 23,397 2,269 41,274 Doubtful — — — — — — — — Not graded 61 4,231 — — — — 69 4,361 Total Commercial Loans $ 156,080 $ 645,130 $ 311,336 $ 351,471 $ 324,030 $ 633,334 $ 387,039 $ 2,808,420 December 31, 2019 Commercial Construction Real and Land (dollars in thousands) Commercial Estate Development Total Acceptable credit quality $ 1,005,442 $ 1,398,400 $ 194,992 $ 2,598,834 Special mention 17,435 18,450 2,420 38,305 Substandard 23,387 67,805 1,250 92,442 Substandard – nonaccrual 5,843 21,742 1,304 28,889 Doubtful — — — — Not graded — — 3,090 3,090 Total (excluding PCI) $ 1,052,107 $ 1,506,397 $ 203,056 $ 2,761,560 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, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of March 31, 2020 and December 31, 2019: Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Residential Real Estate Residential First Lien Performing $ 2,041 $ 29,994 $ 68,525 $ 149,262 $ 107,088 $ 74,763 $ 371 $ 432,044 Nonperforming — 110 572 920 698 7,151 — 9,451 Subtotal 2,041 30,104 69,097 150,182 107,786 81,914 371 441,495 Other Residential Performing 242 3,235 4,495 2,999 1,872 2,746 88,102 103,691 Nonperforming — 15 24 158 8 199 2,424 2,828 Subtotal 242 3,250 4,519 3,157 1,880 2,945 90,526 106,519 Consumer Consumer Performing 2,970 19,553 23,622 14,689 11,131 9,753 2,932 84,650 Nonperforming — 29 81 120 101 178 3 512 Subtotal 2,970 19,582 23,703 14,809 11,232 9,931 2,935 85,162 Consumer Other Performing 146,912 337,739 53,885 12,215 14,943 2,249 20,299 588,242 Nonperforming — — — — — — — — Subtotal 146,912 337,739 53,885 12,215 14,943 2,249 20,299 588,242 Leases Financing Performing 44,905 147,056 89,465 32,284 24,106 6,399 — 344,215 Nonperforming — 62 865 563 533 128 — 2,151 Subtotal 44,905 147,118 90,330 32,847 24,639 6,527 — 346,366 Total Performing 197,070 537,577 239,992 211,449 159,140 |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2020 | |
PREMISES AND EQUIPMENT, NET | |
PREMISES AND EQUIPMENT, NET | Note 6 – Premises and Equipment, Net A summary of premises and equipment as of March 31, 2020 and December 31, 2019 is as follows: March 31, December 31, (dollars in thousands) 2020 2019 Land $ 19,123 $ 19,123 Buildings and improvements 77,028 77,296 Furniture and equipment 32,658 31,846 Total 128,809 128,265 Accumulated depreciation (38,691) (37,210) Premises and equipment, net $ 90,118 $ 91,055 Depreciation expense of $1.7 million and $1.6 million was recorded for the three months ended March 31, 2020 and 2019, respectively. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
LEASES | Note 7 – Leases options to extend Three Months Ended (dollars in thousands) 2020 2019 Operating lease cost $ 781 $ 708 Operating cash flows from leases 945 741 Right-of-use assets obtained in exchange for lease obligations 511 10,677 Weighted average remaining lease term 7.83 years 6.00 years Weighted average discount rate 2.97 % 3.12 % (dollars in thousands) Amount Year ending December 31: 2020 remaining $ 2,060 2021 2,966 2022 2,808 2023 2,209 2024 1,356 Thereafter 5,588 Total future minimum lease payments 16,987 Less imputed interest (1,939) Total operating lease liabilities $ 15,048 |
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2020 | |
LOAN SERVICING RIGHTS | |
LOAN SERVICING RIGHTS | Note 8 – Loan Servicing Rights Commercial FHA Mortgage Loan Servicing The Company serviced commercial FHA mortgage loans for others with unpaid principal balances of $4.01 billion and $4.08 billion at March 31, 2020 and December 31, 2019, respectively. Changes in our commercial FHA loan servicing rights for the three months ended March 31, 2020 and 2019 are summarized as follows: Three Months Ended March 31, (dollars in thousands) 2020 2019 Loan servicing rights: Balance, beginning of period $ 57,637 $ 56,252 Originated servicing — 213 Amortization (728) (678) Balance, end of period 56,909 55,787 Valuation allowances: Balance, beginning of period 4,944 2,805 Additions 8,468 25 Reductions — — Balance, end of period 13,412 2,830 Loan servicing rights, net $ 43,497 $ 52,957 Fair value: At beginning of period $ 52,693 $ 53,447 At end of period $ 43,497 $ 52,957 The Company recorded impairment on commercial FHA loan servicing rights of $8.5 million and $25,000 for the three months ended March 31, 2020 and 2019, respectively. The impairment recognized in the current quarter was primarily the result of a reduction in the assumed earnings rates related to escrow and replacement reserves. The fair value of commercial FHA loan servicing rights is determined using key assumptions, representing both general economic and other published information, including the assumed earnings rates related to escrow and replacement reserves, and the weighted average characteristics of the commercial portfolio, including the prepayment rate and discount rate. The prepayment rate considers many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies and geographic location. The discount rate is based on an average pre-tax internal rate of return utilized by market participants in pricing the servicing portfolio. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement. The weighted average prepayment rate was 8.38% and 8.20% at March 31, 2020 and December 31, 2019, respectively, while the weighted average discount rate was 11.43% and 11.02% for the same periods, respectively. United States Small Business Administration (“SBA”) Loan Servicing Residential Mortgage Loan Servicing million, respectively, are reflected in mortgage servicing rights held for sale in the consolidated balance sheet. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | Note 9 – Goodwill and Intangible Assets At March 31, 2020 and December 31, 2019, goodwill totaled $172.8 million and $171.8 million. The following table summarizes the carrying amount of goodwill by segment at March 31, 2020 and December 31, 2019. March 31, December 31, (dollars in thousands) 2020 2019 Banking $ 157,158 $ 156,120 Commercial FHA origination and servicing 10,892 10,892 Wealth management 4,746 4,746 Total goodwill $ 172,796 $ 171,758 The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, are summarized as follows: March 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 57,012 $ (32,131) $ 24,881 $ 57,012 $ (30,674) $ 26,338 Customer relationship intangibles 14,071 (5,828) 8,243 14,071 (5,523) 8,548 Total intangible assets $ 71,083 $ (37,959) $ 33,124 $ 71,083 $ (36,197) $ 34,886 Amortization of intangible assets was $1.8 million for both the three months ended March 31, 2020 and 2019. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | Note 10 – Derivative Instruments As part of the Company’s overall management of interest rate sensitivity, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities and interest rate swap contracts. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities The Company issues interest rate lock commitments on originated fixed-rate commercial and residential real estate loans to be sold. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets or other liabilities in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The following 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 March 31, 2020 and December 31, 2019: Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, (dollars in thousands) 2020 2019 2020 2019 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 239,119 $ 222,654 $ 4,305 $ 3,350 Forward commitments to sell mortgage-backed securities 197,756 221,052 — — Total $ 436,875 $ 443,706 $ 4,305 $ 3,350 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, (dollars in thousands) 2020 2019 2020 2019 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 28,266 $ — $ 329 $ — During the three months ended March 31, 2020 and 2019, the Company recognized net gains of $626,000 and $1.3 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Interest Rate Swap Contracts The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. The 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 $8.8 million and $9.0 million at March 31, 2020 and December 31, 2019, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $888,000 and $306,000 at March 31, 2020 and December 31, 2019, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2020 | |
DEPOSITS | |
DEPOSITS | Note 11 – Deposits The following table summarizes the classification of deposits as of March 31, 2020 and December 31, 2019: March 31, December 31, (dollars in thousands) 2020 2019 Noninterest-bearing demand $ 1,052,726 $ 1,019,472 Interest-bearing: Checking 1,425,022 1,342,788 Money market 849,642 787,662 Savings 534,457 522,456 Time 788,793 871,876 Total deposits $ 4,650,640 $ 4,544,254 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 3 Months Ended |
Mar. 31, 2020 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | Note 12 – Short-Term Borrowings The following table presents the distribution of short-term borrowings and related weighted average interest rates as of March 31, 2020 and December 31, 2019: Repurchase Agreements March 31, December 31, (dollars in thousands) 2020 2019 Outstanding at period-end $ 43,578 $ 82,029 Average amount outstanding 55,616 121,168 Maximum amount outstanding at any month end 52,013 138,907 Weighted average interest rate: During period 0.73 % 0.69 % End of period 0.20 % 0.67 % Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction, which represents the amount of the Bank’s obligation. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Investment securities with a carrying amount of $46.6 million and $87.4 million at March 31, 2020 and December 31, 2019, respectively, were pledged for securities sold under agreements to repurchase. The Company had available lines of credit of $17.7 million and $21.6 million at March 31, 2020 and December 31, 2019, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $19.9 million and $24.3 million at March 31, 2020 and December 31, 2019, respectively. There were no outstanding borrowings at March 31, 2020 and December 31, 2019. At March 31, 2020, the Company had available federal funds lines of credit totaling $20.0 million. These lines of credit were unused at March 31, 2020. |
FHLB ADVANCES AND OTHER BORROWI
FHLB ADVANCES AND OTHER BORROWINGS | 3 Months Ended |
Mar. 31, 2020 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
FHLB ADVANCES AND OTHER BORROWINGS | Note 13 – FHLB Advances and Other Borrowings The following table summarizes our Federal Home Loan Bank (“FHLB”) advances and other borrowings as of March 31, 2020 and December 31, 2019: March 31, December 31, (dollars in thousands) 2020 2019 Midland States Bancorp, Inc. Series G redeemable preferred stock - 181 shares at $1,000 per share $ 181 $ 181 Midland States Bank FHLB advances – fixed rate, fixed term of $27.8 million and $28.0 million, at rates averaging 2.56% at March 31, 2020 and December 31, 2019 – maturing through June 2023, and putable fixed rate of $565.0 million and $465.0 million, at rates averaging 2.02% and 2.34% at March 31, 2020 and December 31, 2019, respectively – maturing through February 2030 with call provisions through August 2021 592,908 493,130 Total FHLB advances and other borrowings $ 593,089 $ 493,311 |
SUBORDINATED DEBT
SUBORDINATED DEBT | 3 Months Ended |
Mar. 31, 2020 | |
SUBORDINATED DEBT | |
SUBORDINATED DEBT | Note 14 – Subordinated Debt March 31, December 31, (dollars in thousands) 2020 2019 Subordinated debt issued June 2015 – fixed interest rate of 6.00% through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, $31,075 and $38,325 at March 31, 2020 and December 31, 2019, respectively - maturing June 18, 2025 $ 31,057 $ 38,273 Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025 545 544 Subordinated debt issued October 2017 – fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 - maturing October 15, 2027 39,513 39,496 Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 - maturing September 30, 2029 71,596 71,549 Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 - maturing September 30, 2034 26,794 26,791 Total subordinated debt $ 169,505 $ 176,653 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | Note 15 – Earnings Per Share Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the three months ended March 31, 2020 and 2019 excluded antidilutive stock options of 89,603 and 97,628, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective periods. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (dollars in thousands, except per share data) 2020 2019 Net income $ 1,549 $ 13,982 Preferred dividends declared — (82) Preferred stock, premium amortization — 48 Net income available to common shareholders 1,549 13,948 Common shareholder dividends (6,510) (5,776) Unvested restricted stock award dividends (65) (47) Undistributed earnings to unvested restricted stock awards — (65) Undistributed (loss) earnings to common shareholders $ (5,026) $ 8,060 Basic Distributed earnings to common shareholders $ 6,510 $ 5,776 Undistributed (loss) earnings to common shareholders (5,026) 8,060 Total common shareholders earnings, basic $ 1,484 $ 13,836 Diluted Distributed earnings to common shareholders $ 6,510 $ 5,776 Undistributed (loss) earnings to common shareholders (5,026) 8,060 Total common shareholders earnings 1,484 13,836 Add back: Undistributed earnings reallocated from unvested restricted stock awards — — Total common shareholders earnings, diluted $ 1,484 $ 13,836 Weighted average common shares outstanding, basic 24,433,975 23,998,119 Options and warrants 104,027 206,542 Weighted average common shares outstanding, diluted 24,538,002 24,204,661 Basic earnings per common share $ 0.06 $ 0.58 Diluted earnings per common share 0.06 0.57 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | Note 16 – 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. 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 as of March 31, 2020 and December 31, 2019, are summarized below: March 31, 2020 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. government sponsored entities and U.S. agency securities $ 47,357 $ — $ 47,357 $ — Mortgage-backed securities - agency 326,700 — 326,700 — Mortgage-backed securities - non-agency 27,281 — 27,281 — State and municipal securities 116,094 — 116,094 — Corporate securities 138,822 — 137,897 925 Equity securities 5,640 — 5,640 — Loans held for sale 113,852 — 113,852 — Interest rate lock commitments 4,305 — 4,305 — Interest rate swap contracts 888 — 888 — Total $ 780,939 $ — $ 780,014 $ 925 Liabilities Interest rate swap contracts $ 888 $ — $ 888 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 44,566 $ — $ — $ 44,566 Mortgage servicing rights held for sale 1,460 — — 1,460 Nonperforming loans 15,972 — 15,450 522 Other real estate owned 909 — 909 — Assets held for sale 3,790 — 3,790 — December 31, 2019 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. government sponsored entities and U.S. agency securities $ 60,020 $ — $ 60,020 $ — Mortgage-backed securities - agency 324,974 — 324,974 — Mortgage-backed securities - non-agency 17,148 — 17,148 — State and municipal securities 124,555 — 124,555 — Corporate securities 122,736 — 121,781 955 Equity securities 5,621 — 5,621 — Loans held for sale 16,431 — 16,431 — Interest rate lock commitments 3,350 — 3,350 — Interest rate swap contracts 306 — 306 — Total $ 675,141 $ — $ 674,186 $ 955 Liabilities Interest rate swap contracts $ 306 $ — $ 306 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 53,824 $ — $ — $ 53,824 Mortgage servicing rights held for sale 1,972 — — 1,972 Nonperforming loans 14,693 — 12,518 2,175 Assets held for sale 3,974 — 3,974 — The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (dollars in thousands) 2020 2019 Balance, beginning of period $ 955 $ 1,923 Total realized in earnings (1) 2 22 Total unrealized in other comprehensive income (2) (30) 7 Net settlements (principal and interest) (2) (22) Balance, end of period $ 925 $ 1,930 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. (2) Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period. The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019: Valuation Unobservable (dollars in thousands) Fair Value technique input / assumptions Range (weighted average) (1) March 31, 2020 Corporate securities $ 925 Consensus pricing Net market price -1.5% - 2.0% (1.0%) December 31, 2019 Corporate securities $ 955 Consensus pricing Net market price -2.0% - 2.5% (1.5%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. Three Months Ended March 31, (dollars in thousands) 2020 2019 Loan servicing rights $ 8,468 $ 25 Mortgage servicing rights held for sale 496 — Nonperforming loans 12,919 981 Other real estate owned 605 16 Assets held for sale 146 — Total losses on assets measured on a nonrecurring basis $ 22,634 $ 1,022 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 March 31, 2020 and December 31, 2019: Valuation Unobservable (dollars in thousands) Fair Value technique input / assumptions Range (weighted average) (1) March 31, 2020 Loan servicing rights: Commercial MSR $ 43,497 Discounted cash flow Prepayment speed 8.00% - 22.50% (8.38%) Discount rate 10.00% - 27.00% (11.43%) SBA servicing rights $ 1,069 Discounted cash flow Prepayment speed 8.31% - 9.21% (8.60%) Discount rate No range (11.70%) MSR held for sale $ 1,460 Discounted cash flow Prepayment speed 14.04% - 26.28% (16.92%) Discount rate 9.00% - 11.50% (10.13%) Other: Nonperforming loans $ 522 Fair value of collateral Discount for type of property, No range (4.50%) age of appraisal and current status December 31, 2019 Loan servicing rights: Commercial MSR $ 52,693 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.20%) Discount rate 10.00% - 14.00% (11.02%) SBA servicing rights $ 1,131 Discounted cash flow Prepayment speed 8.31% - 9.21% (8.60%) Discount rate No range (11.70%) MSR held for sale $ 1,972 Discounted cash flow Prepayment speed 8.64% - 26.28% (12.42%) Discount rate 9.50% - 12.50% (10.75%) Other: Nonperforming loans $ 2,175 Fair value of collateral Discount for type of property, 4.32% - 8.00% (5.22%) age of appraisal and current status (1) Unobservable inputs were weighted by the relative fair value of the instruments. Loan Servicing Rights. In accordance with GAAP , the Company must record 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 loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are estimated based on current market conditions. The determination of fair value of servicing rights relies upon Level 3 inputs. Nonperforming loans. Nonperforming loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and restructured loans are considered and are reviewed individually for the amount of impairment, if any. Most of our loans are collateral dependent and, accordingly, we measure loans based on the estimated fair value of such collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral; such valuation inputs result in a nonrecurring fair value measurement that is categorized as a Level 2 measurement. 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 and the fair value measurement is categorized as a Level 3 measurement. The 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. ASC Topic 825, Financial Instruments The Company has elected the fair value option for newly originated commercial and 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 March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Commercial loans held for sale $ 1,706 $ 48 $ 1,658 $ 8,236 $ 206 $ 8,030 Residential loans held for sale 12,458 667 11,791 8,195 446 7,749 Consumer loans held for sale 99,688 — 99,688 — — — Total loans held for sale $ 113,852 $ 715 $ 113,137 $ 16,431 $ 652 $ 15,779 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (dollars in thousands) 2020 2019 Commercial loans held for sale $ (158) $ (328) Residential loans held for sale 255 (57) Total loans held for sale $ 97 $ (385) The carrying values and estimated fair value of certain financial instruments not carried at fair value at March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 445,097 $ 445,097 $ 445,097 $ — $ — Federal funds sold 4,299 4,299 4,299 — — Nonmarketable equity securities 46,068 46,068 — 46,068 — Loans, net 4,337,659 4,387,244 — — 4,387,244 Accrued interest receivable 16,532 16,532 — 16,532 — Liabilities Deposits $ 4,650,640 $ 4,661,375 $ — $ 4,661,375 $ — Short-term borrowings 43,578 43,578 — 43,578 — FHLB and other borrowings 593,089 631,450 — 631,450 — Subordinated debt 169,505 160,344 — 160,344 — Trust preferred debentures 48,420 42,391 — 42,391 — Accrued interest payable 7,078 7,078 — 7,078 — December 31, 2019 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 392,694 $ 392,694 $ 392,694 $ — $ — Federal funds sold 1,811 1,811 1,811 — — Nonmarketable equity securities 44,505 44,505 — 44,505 — Loans, net 4,373,382 4,385,768 — — 4,385,768 Accrued interest receivable 16,346 16,346 — 16,346 — Liabilities Deposits $ 4,544,254 $ 4,548,327 $ — $ 4,548,327 $ — Short-term borrowings 82,029 82,029 — 82,029 — FHLB and other borrowings 493,311 506,832 — 506,832 — Subordinated debt 176,653 182,189 — 182,189 — Trust preferred debentures 48,288 53,811 — 53,811 — Accrued interest payable 6,400 6,400 — 6,400 — |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | Note 17 – 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. No material losses are anticipated as a result of these actions or claims. We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of March 31, 2020 and December 31, 2019 were as follows: March 31, December 31, (dollars in thousands) 2020 2019 Commitments to extend credit $ 728,472 $ 725,506 Financial guarantees – standby letters of credit 55,676 106,678 The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense included in other expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. At March 31, 2020, the ACL for off-balance sheet credit exposures was 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 2020 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 months ended March 31, 2020 and 2019. The liability for unresolved repurchase demands totaled $289,000 at March 31, 2020 and December 31, 2019. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | Note 18 – Segment Information Our business segments are defined as Banking, Wealth Management, Commercial FHA Origination and Servicing, and Other. The reportable business segments are consistent with the internal reporting and evaluation of the principle lines of business of the Company. 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 leasing; 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 commercial FHA origination and servicing segment provides for the origination and servicing of government sponsored mortgages for multifamily and healthcare facilities. The other segment includes the operating results of the parent company, our captive insurance business unit, and the elimination of intercompany transactions. Selected business segment financial information as of and for the three months ended March 31, 2020 and 2019 were as follows: Commercial FHA Wealth Origination and (dollars in thousands) Banking Management Servicing Other Total Three Months Ended March 31, 2020 Net interest income (expense) $ 49,927 $ — $ (64) $ (3,212) $ 46,651 Provision for credit losses on loans 10,569 — — — 10,569 Noninterest income 10,213 5,677 (7,232) (60) 8,598 Noninterest expense 37,074 3,613 2,094 (106) 42,675 Income (loss) before income taxes (benefit) 12,497 2,064 (9,390) (3,166) 2,005 Income taxes (benefit) 3,909 205 (2,629) (1,029) 456 Net income (loss) $ 8,588 $ 1,859 $ (6,761) $ (2,137) $ 1,549 Total assets $ 6,132,963 $ 21,875 $ 81,394 $ (28,002) $ 6,208,230 Three Months Ended March 31, 2019 Net interest income (expense) $ 48,518 $ — $ (176) $ (2,741) $ 45,601 Provision for credit losses on loans 3,243 — — — 3,243 Noninterest income 8,940 4,953 3,238 (56) 17,075 Noninterest expense 35,371 3,247 2,811 (332) 41,097 Income (loss) before income taxes (benefit) 18,844 1,706 251 (2,465) 18,336 Income taxes (benefit) 4,975 140 71 (832) 4,354 Net income (loss) $ 13,869 $ 1,566 $ 180 $ (1,633) $ 13,982 Total assets $ 5,582,494 $ 19,039 $ 94,797 $ (54,550) $ 5,641,780 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 1 Note 19 – Related Party Transactions |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | Note 20 – 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. Three Months Ended March 31, (dollars in thousands) 2020 2019 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 4,209 $ 3,617 Investment advisory fees 529 529 Investment brokerage fees 395 219 Other 544 588 Service charges on deposit accounts: Nonsufficient fund fees 1,866 1,754 Other 790 766 Interchange revenues 2,833 2,680 Other income: Merchant services revenue 351 375 Other 938 818 Noninterest income - out-of-scope of Topic 606 (3,857) 5,729 Total noninterest income $ 8,598 $ 17,075 Wealth Management Revenue Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity. Service Charges on Deposit Accounts Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account. Interchange Revenue Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed. Other Noninterest Income The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, 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. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company are unaudited and 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, 2019, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2020. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2019 Annual Report on Form 10-K. Since December 31, 2019, the Company has adopted ASU No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” . See “Accounting Guidance Adopted in 2020” for additional information. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the Coronavirus Disease 2019 (“COVID-19”) pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020, which provides a variety of provisions, including, among other things, a small business lending program to originate paycheck protection loans, temporary relief for community bank leverage ratio, and temporary relief for community banks related to troubled debt restructurings. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the financial condition and results of operations for the interim periods presented herein, have been included. Certain reclassifications of 2019 amounts have been made to conform to the 2020 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying unaudited balance sheets. |
Accounting Guidance Adopted in 2020 | Accounting Guidance Adopted in 2020 FASB ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after December 31, 2019, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $7.2 million as of January 1, 2020 for the cumulative effect of adopting ASC 326. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”), previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $4.2 million of allowance for credit losses (“ACL”) on loans. The noncredit discount of The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Impact of Under Pre-ASC 326 ASC 326 (dollars in thousands) ASC 326 Adoption Adoption Assets: Loans Commercial $ 1,056,986 $ 1,055,185 $ 1,801 Commercial real estate 1,528,119 1,526,504 1,615 Construction and land development 209,551 208,733 818 Residential real estate 570,882 568,291 2,591 Consumer 710,646 710,116 530 Lease Financing 332,581 332,581 — Allowance for credit losses on loans (40,811) (28,028) (12,783) Liabilities: Allowance for credit losses on unfunded commitments (1,507) (1,244) (263) Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, and deferred loan fees and costs. Accrued interest receivable totaled million at March 31, 2020 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the effective yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loans are charged off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximately level rate of return on the unrecovered lease investment. Lease income is recognized on the interest method. Purchased Credit Deteriorated Loans The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL on loans is determined using the same methodology as other loans held for investment. The initial ACL on loans determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACL on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL on loans are recorded through provision expense. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the loan balance is confirmed to no longer be collectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, changes in unemployment rates, property values or relevant factors. The Company considers the following when estimating credit losses: 1) available information relevant to assessing the collectability of cash flows including internal information, external information or a combination of both relating to past events, current conditions and reasonable and supportable forecasts; 2) relevant qualitative and quantitative factors relating to the environment in which the Bank operates and factors specific to the borrower; 3) off-balance-sheet credit exposures; and 4) credit enhancements. ACL on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics which may include any one or a combination of the following: internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. The ACL for a specific portfolio segment is computed by multiplying the loss rate by the amortized cost balance of the segment. As appropriate, newer credit products or portfolios with limited historical loss may use applicable external data for determining the ACL until experience justifies that sufficient product maturity supports the estimate of expected credit losses. Specific reserves reflect impairment on loans identified for evaluation or individually considered nonperforming, including troubled debt restructurings and receivables where the Company has determined foreclosure is probable. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of nonaccrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans and leases where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include, nonaccrual loans with an effective balance greater than $500,000, accruing loans 90 days past due or greater with an effective balance greater than $100,000, specialty lending relationships and other loans as determined by management. ACL for consumer and residential loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis. The provision for credit losses on loans on individually evaluated loans is recognized on the basis of the present value of expected future cash flows discounted at the effective interest rate, the fair value of collateral adjusted for estimated costs to sell, or the observable market price as of the relevant date. The table below identifies the Company’s loan portfolio segments and classes. Segment Class Commercial Commercial Commercial Real Estate Commercial Real Estate Non-Owner Occupied Construction and Land Development Construction and Land Development Residential Real Estate Residential First Lien Consumer Consumer Lease Financing Lease Financing The principal risks to each segment of loans are as follows: Commercial Commercial real estate Construction and land development – Residential real estate Consumer Lease financing Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. The Company applies the collateral-dependent practical expedient, to calculate the ACL on loans for an individually evaluated collateral-dependent loan by measuring the fair value of collateral at the reporting date, regardless of whether foreclosure is probable. Fair value of collateral is adjusted for costs to sell when repayment or satisfaction of the loan depends on the sale of the collateral. ACL on loans adjustments for estimated costs to sell are not appropriate when the repayment of the collateral-dependent loan is expected from the operation of the collateral. Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Troubled Debt Restructurings (“TDR”) A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. The ACL on loans on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on OBS credit exposures is adjusted as a provision for credit loss expense included in other expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. Allowance for Credit Losses on Available-For-Sale Securities For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recorded in other comprehensive income. Changes in the ACL are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule illustrates the impact of ASC 326 | January 1, 2020 As Reported Impact of Under Pre-ASC 326 ASC 326 (dollars in thousands) ASC 326 Adoption Adoption Assets: Loans Commercial $ 1,056,986 $ 1,055,185 $ 1,801 Commercial real estate 1,528,119 1,526,504 1,615 Construction and land development 209,551 208,733 818 Residential real estate 570,882 568,291 2,591 Consumer 710,646 710,116 530 Lease Financing 332,581 332,581 — Allowance for credit losses on loans (40,811) (28,028) (12,783) Liabilities: Allowance for credit losses on unfunded commitments (1,507) (1,244) (263) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ACQUISITIONS | |
Schedule of allocation of consideration | (dollars in thousands) HomeStar Assets acquired: Cash and cash equivalents $ 70,900 Investment securities available for sale 54,963 Equity securities 2,153 Loans 211,070 Loans held for sale 3,562 Premises and equipment 4,049 Operating lease right-of-use asset 5,177 Other real estate owned 1,092 Nonmarketable equity securities 454 Accrued interest receivable 1,185 Loan servicing rights 1,089 Mortgage servicing rights held for sale 1,701 Intangible assets 4,600 Deferred tax assets, net 2,732 Other assets 1,541 Total assets acquired 366,268 Liabilities assumed: Deposits 321,740 FHLB advances and other borrowings 31,369 Accrued interest payable 115 Operating lease liabilities 6,232 Other liabilities 3,575 Total liabilities assumed 363,031 Net assets acquired 3,237 Goodwill 8,123 Total consideration paid $ 11,360 Intangible assets: Core deposit intangible $ 4,300 Customer relationship intangible 300 Total intangible assets $ 4,600 Estimated useful lives: Core deposit intangible 12 years Customer relationship intangible 6 years |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
INVESTMENT SECURITIES | |
Schedule of investment securities classified as available for sale | March 31, 2020 Allowance Gross Gross for credit Amortized unrealized unrealized losses on Fair (dollars in thousands) cost gains losses investments value Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 46,428 $ 929 $ — $ — $ 47,357 Mortgage-backed securities - agency 317,332 9,417 49 — 326,700 Mortgage-backed securities - non-agency 28,121 — 840 — 27,281 State and municipal securities 112,500 3,897 284 19 116,094 Corporate securities 140,287 1,168 2,577 56 138,822 Total available for sale securities $ 644,668 $ 15,411 $ 3,750 $ 75 $ 656,254 December 31, 2019 Allowance Gross Gross for credit Amortized unrealized unrealized losses on Fair (dollars in thousands) cost gains losses investments value Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 59,600 $ 442 $ 22 N/A $ 60,020 Mortgage-backed securities - agency 321,840 3,368 234 N/A 324,974 Mortgage-backed securities - non-agency 17,198 3 53 N/A 17,148 State and municipal securities 119,371 5,195 11 N/A 124,555 Corporate securities 121,159 2,131 554 N/A 122,736 Total available for sale securities $ 639,168 $ 11,139 $ 874 N/A $ 649,433 |
Schedule of unrealized losses and fair values for investment securities | March 31, 2020 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss Investment securities available for sale Mortgage-backed securities - agency $ 10,175 $ 42 $ 1,255 $ 7 $ 11,430 $ 49 Mortgage-backed securities - non-agency 25,849 840 — — 25,849 840 Corporate securities 41,499 1,287 — — 41,499 1,287 Total available for sale securities $ 77,523 $ 2,169 $ 1,255 $ 7 $ 78,778 $ 2,176 December 31, 2019 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value loss value loss value loss Investment securities available for sale U.S. government sponsored entities and U.S. agency securities $ 7,200 $ 22 $ — $ — $ 7,200 $ 22 Mortgage-backed securities - agency 75,336 170 7,170 64 82,506 234 Mortgage-backed securities - non-agency 11,059 53 — — 11,059 53 State and municipal securities 1,813 11 — — 1,813 11 Corporate securities 20,269 481 3,915 73 24,184 554 Total available for sale securities $ 115,677 $ 737 $ 11,085 $ 137 $ 126,762 $ 874 |
Schedule of major security type | State and municipal Corporate (dollars in thousands) securities securities Balances, January 1, 2020 $ — $ — Impact of adopting ASC 326 — — Additions for securities for which no previous expected credit losses were recognized 19 56 Balances, March 31, 2020 $ 19 $ 56 |
Contractual maturity of amortized cost and fair value | Amortized Fair (dollars in thousands) cost value Investment securities available for sale Within one year $ 33,584 $ 33,801 After one year through five years 78,025 79,387 After five years through ten years 169,041 169,579 After ten years 18,565 19,506 Mortgage-backed securities 345,453 353,981 Total available for sale securities $ 644,668 $ 656,254 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LOANS | |
Summary of loans | March 31, December 31, (dollars in thousands) 2020 2019 Commercial: Commercial $ 649,403 $ 628,056 Commercial Other 443,376 427,129 Commercial real estate: Commercial real estate non-owner occupied 809,628 825,874 Commercial real estate owner occupied 471,360 464,601 Multi-family 142,770 146,795 Farmland 83,522 89,234 Construction and land development 208,361 208,733 Total commercial loans 2,808,420 2,790,422 Residential real estate: Residential first lien 441,495 456,107 Other residential 106,519 112,184 Consumer: Consumer 85,162 100,732 Consumer Other 588,242 609,384 Lease financing 346,366 332,581 Total loans, gross $ 4,376,204 $ 4,401,410 |
Summary of changes in allowance for loan losses, by loan portfolio | Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Changes in allowance for credit losses on loans for the three months ended March 31, 2020: Balance, beginning of period $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 Impact of adopting ASC 326 2,327 4,104 724 1,211 (594) 774 8,546 Provision for credit losses on loans 1,730 5,755 (549) 257 256 3,120 10,569 Initial PCD Allowance 1,045 1,311 809 1,015 57 — 4,237 Charge-offs (3,398) (7,873) (12) (388) (598) (948) (13,217) Recoveries 5 14 59 44 191 69 382 Balance, end of period $ 11,740 $ 13,583 $ 1,321 $ 4,638 $ 1,954 $ 5,309 $ 38,545 Changes in allowance for credit losses on loans for the three months ended March 31, 2019: Balance, beginning of period $ 9,524 $ 4,723 $ 372 $ 2,041 $ 2,154 $ 2,089 $ 20,903 Provision for credit losses on loans 118 1,945 63 514 329 274 3,243 Charge-offs (112) (58) (44) (153) (556) (459) (1,382) Recoveries 15 7 7 22 210 66 327 Balance, end of period $ 9,545 $ 6,617 $ 398 $ 2,424 $ 2,137 $ 1,970 $ 23,091 The following table represents, by loan portfolio segment, details regarding the balance in the allowance for loan loss and the recorded investment in loans as of December 31, 2019 by impairment evaluation method: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total Allowance for credit losses on loans: Loans individually evaluated for impairment $ 3,563 $ 5,968 $ — $ 290 $ — $ 156 $ 9,977 Loans collectively evaluated for impairment 69 100 14 444 39 122 788 Non-impaired loans collectively evaluated for impairment 6,380 3,643 272 1,269 2,500 2,016 16,080 Loans acquired with deteriorated credit quality (1) 19 561 4 496 103 — 1,183 Total allowance for credit losses on loans $ 10,031 $ 10,272 $ 290 $ 2,499 $ 2,642 $ 2,294 $ 28,028 Recorded investment (loan balance): Impaired loans individually evaluated for impairment $ 5,767 $ 22,698 $ 1,245 $ 5,329 $ — $ 697 $ 35,736 Impaired loans collectively evaluated for impairment 511 764 104 3,695 376 896 6,346 Non-impaired loans collectively evaluated for impairment 1,045,829 1,482,935 201,707 546,630 708,528 330,988 4,316,617 Loans acquired with deteriorated credit quality (1) 3,078 20,107 5,677 12,637 1,212 — 42,711 Total recorded investment (loan balance) $ 1,055,185 $ 1,526,504 $ 208,733 $ 568,291 $ 710,116 $ 332,581 $ 4,401,410 (1) Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date and the risk of credit loss was recognized at that date based on estimates of expected cash flows. |
Schedule of transitioning risk states for each asset pool within the expected credit loss model | Consumer Loans and Commercial Loans Equipment Finance Loans and Leases Risk State Risk Rating Days Past Due 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 | March 31, 2020 December 31, 2019 Nonaccrual Nonaccrual with no Allowance with no Allowance (dollars in thousands) Nonaccrual for Credit Loss Nonaccrual for Credit Loss Commercial: Commercial $ 1,948 $ — $ 1,492 $ 119 Commercial Other 2,504 371 4,351 1,519 Commercial real estate: Commercial real estate non-owner occupied 9,639 4,489 10,915 4,572 Commercial real estate owner occupied 11,672 6,613 4,396 2,648 Multi-family 10,557 2,392 6,231 1,430 Farmland — — 200 150 Construction and land development 4,954 693 1,304 1,245 Total commercial loans 41,274 14,558 28,889 11,683 Residential real estate: Residential first lien 8,414 789 6,140 2,416 Other residential 2,289 — 1,656 912 Consumer: Consumer 480 — 341 7 Consumer Other — — — — Lease financing 1,775 — 1,375 116 Total loans $ 54,232 $ 15,347 $ 38,401 $ 15,134 |
Schedule of collateral dependent loans | (dollars in thousands) March 31, 2020 Commercial Commercial Other $ 371 Commercial Real Estate Non-Owner Occupied 8,874 Owner Occupied 7,264 Multi-Family 10,338 Construction and Land Development 2,941 Residential Real Estate Residential First Lien 110 Total Collateral Dependent Loans $ 29,898 |
Summary of aging status of recorded investments in loans by portfolio (excluding PCI loans) | The aging status of the recorded investment in loans by portfolio as of March 31, 2020 is as follows: Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Total (dollars in thousands) Past Due Past Due or More Past Due Current Total Commercial: Commercial $ 214 $ 498 $ — $ 712 $ 646,743 $ 647,455 Commercial Other 7,367 3,474 147 10,988 429,884 440,872 Commercial real estate: Commercial real estate non-owner occupied 7,754 176 — 7,930 792,059 799,989 Commercial real estate owner occupied 149 93 — 242 459,446 459,688 Multi-family — — — — 132,213 132,213 Farmland 108 — — 108 83,414 83,522 Construction and land development 2,410 156 8 2,574 200,833 203,407 Total commercial loans 18,002 4,397 155 22,554 2,744,592 2,767,146 Residential real estate: Residential first lien 1,151 — 248 1,399 431,682 433,081 Other residential 888 — — 888 103,342 104,230 Consumer: Consumer 357 75 — 432 84,250 84,682 Consumer Other 4,913 4,063 — 8,976 579,266 588,242 Lease financing 5,601 945 376 6,922 337,669 344,591 Total loans $ 30,912 $ 9,480 $ 779 $ 41,171 $ 4,280,801 $ 4,321,972 Accruing Loans 30-59 60-89 Past Due Days Days 90 Days Total (dollars in thousands) Past Due Past Due or More Past Due Current Total Commercial $ 5,910 $ 3,086 $ — $ 8,996 $ 1,037,268 $ 1,046,264 Commercial real estate 2,895 399 — 3,294 1,481,361 1,484,655 Construction and land development 1,539 72 — 1,611 200,141 201,752 Residential real estate 588 1,561 145 2,294 545,564 547,858 Consumer 6,701 4,154 — 10,855 697,708 708,563 Lease financing 1,783 1,188 218 3,189 328,017 331,206 Total loans (excluding PCI) $ 19,416 $ 10,460 $ 363 $ 30,239 $ 4,290,059 $ 4,320,298 |
Summary of TDRs loans | March 31, 2020 December 31, 2019 (3) (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 60 $ 1,181 $ 1,241 $ 435 $ 369 $ 804 Commercial real estate 1,692 6,032 7,724 1,720 9,834 11,554 Construction and land development 43 163 206 45 167 212 Residential real estate 1,328 2,414 3,742 1,083 1,993 3,076 Consumer 32 — 32 35 — 35 Lease financing — 52 52 — 55 55 Total loans $ 3,155 $ 9,842 $ 12,997 $ 3,318 $ 12,418 $ 15,736 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. (3) TDRs as of December 31, 2019 exclude PCI loans. The ACL on TDRs totaled $760,000 and $2.0 million as of March 31, 2020 and December 31, 2019, respectively. The Company had no unfunded commitments in connection with TDRs at March 31, 2020 and December 31, 2019. The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2020 and 2019 and the loans by portfolio that were modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019: Commercial Loan Portfolio Other Loan Portfolio Commercial Construction Residential Real and Land Real Lease (dollars in thousands) Commercial Estate Development Estate Consumer Financing Total For the three months ended March 31, 2020 Troubled debt restructurings: Number of loans — — — 6 — — 6 Pre-modification outstanding balance $ — $ — $ — $ 675 $ — $ — $ 675 Post-modification outstanding balance — — — 670 — — 670 Troubled debt restructurings that subsequently defaulted Number of loans — — — — — — — Recorded balance $ — $ — $ — $ — $ — $ — $ — For the three months ended March 31, 2019: Troubled debt restructurings: Number of loans — 3 1 7 1 — 12 Pre-modification outstanding balance $ — $ 1,924 $ 62 $ 224 $ 15 $ — $ 2,225 Post-modification outstanding balance — 1,838 17 222 15 — 2,092 Troubled debt restructurings that subsequently defaulted Number of loans — — 1 — — — 1 Recorded balance $ — $ — $ 43 $ — $ — $ — $ 43 |
Schedule of loans credit quality indicators | Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial Commercial Acceptable credit quality $ 36,244 $ 118,192 $ 50,709 $ 79,205 $ 39,003 $ 64,281 $ 226,404 $ 614,038 Special mention 945 379 3,643 34 431 4,314 7,795 17,541 Substandard — 823 692 849 89 4,633 8,790 15,876 Substandard – nonaccrual — — 66 38 433 514 897 1,948 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 37,189 119,394 55,110 80,126 39,956 73,742 243,886 649,403 Commercial Other Acceptable credit quality 63,535 197,784 69,918 1,046 537 1,253 96,875 430,948 Special mention 152 1,188 825 5 15 — 2,050 4,235 Substandard 76 58 572 30 46 5 4,772 5,559 Substandard – nonaccrual — 1,229 836 — 49 12 378 2,504 Doubtful — — — — — — — — Not graded 61 — — — — — 69 130 Subtotal 63,824 200,259 72,151 1,081 647 1,270 104,144 443,376 Commercial Real Estate Non-Owner Occupied Acceptable credit quality 21,416 124,691 84,571 125,985 147,992 252,159 9,777 766,591 Special mention — 4,479 110 271 27 10,647 — 15,534 Substandard 906 — 282 5,204 474 10,707 250 17,823 Substandard – nonaccrual — 456 111 — 3,495 5,577 — 9,639 Doubtful — — — — — — — — Not graded — 41 — — — — — 41 Subtotal 22,322 129,667 85,074 131,460 151,988 279,090 10,027 809,628 Owner Occupied Acceptable credit quality 27,644 59,290 37,062 65,814 77,379 150,209 4,084 421,482 Special mention — 1,723 253 380 3,037 8,538 — 13,931 Substandard — 368 796 169 2,630 19,708 604 24,275 Substandard – nonaccrual — 264 170 249 33 9,962 994 11,672 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 27,644 61,645 38,281 66,612 83,079 188,417 5,682 471,360 Multi-Family Acceptable credit quality 795 15,248 21,586 32,871 22,933 32,045 1,101 126,579 Special mention — — — — — 1,348 — 1,348 Substandard — 198 — — 4,008 80 — 4,286 Substandard – nonaccrual — — — — 8,029 2,528 — 10,557 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 795 15,446 21,586 32,871 34,970 36,001 1,101 142,770 Farmland Acceptable credit quality 1,702 11,046 8,414 11,405 8,071 36,196 2,358 79,192 Special mention — 465 193 — 18 280 105 1,061 Substandard — 52 602 323 — 2,146 146 3,269 Substandard – nonaccrual — — — — — — — — Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 1,702 11,563 9,209 11,728 8,089 38,622 2,609 83,522 Construction and Land Development Acceptable credit quality 2,604 102,813 29,700 25,183 5,151 9,022 19,590 194,063 Special mention — — — 2,410 — 1,447 — 3,857 Substandard — 153 225 — — 919 — 1,297 Substandard – nonaccrual — — — — 150 4,804 — 4,954 Doubtful — — — — — — — — Not graded 4,190 — — — — — 4,190 Subtotal 2,604 107,156 29,925 27,593 5,301 16,192 19,590 208,361 Total Acceptable credit quality 153,940 629,064 301,960 341,509 301,066 545,165 360,189 2,632,893 Special mention 1,097 8,234 5,024 3,100 3,528 26,574 9,950 57,507 Substandard 982 1,652 3,169 6,575 7,247 38,198 14,562 72,385 Substandard – nonaccrual — 1,949 1,183 287 12,189 23,397 2,269 41,274 Doubtful — — — — — — — — Not graded 61 4,231 — — — — 69 4,361 Total Commercial Loans $ 156,080 $ 645,130 $ 311,336 $ 351,471 $ 324,030 $ 633,334 $ 387,039 $ 2,808,420 December 31, 2019 Commercial Construction Real and Land (dollars in thousands) Commercial Estate Development Total Acceptable credit quality $ 1,005,442 $ 1,398,400 $ 194,992 $ 2,598,834 Special mention 17,435 18,450 2,420 38,305 Substandard 23,387 67,805 1,250 92,442 Substandard – nonaccrual 5,843 21,742 1,304 28,889 Doubtful — — — — Not graded — — 3,090 3,090 Total (excluding PCI) $ 1,052,107 $ 1,506,397 $ 203,056 $ 2,761,560 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, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of March 31, 2020 and December 31, 2019: Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Residential Real Estate Residential First Lien Performing $ 2,041 $ 29,994 $ 68,525 $ 149,262 $ 107,088 $ 74,763 $ 371 $ 432,044 Nonperforming — 110 572 920 698 7,151 — 9,451 Subtotal 2,041 30,104 69,097 150,182 107,786 81,914 371 441,495 Other Residential Performing 242 3,235 4,495 2,999 1,872 2,746 88,102 103,691 Nonperforming — 15 24 158 8 199 2,424 2,828 Subtotal 242 3,250 4,519 3,157 1,880 2,945 90,526 106,519 Consumer Consumer Performing 2,970 19,553 23,622 14,689 11,131 9,753 2,932 84,650 Nonperforming — 29 81 120 101 178 3 512 Subtotal 2,970 19,582 23,703 14,809 11,232 9,931 2,935 85,162 Consumer Other Performing 146,912 337,739 53,885 12,215 14,943 2,249 20,299 588,242 Nonperforming — — — — — — — — Subtotal 146,912 337,739 53,885 12,215 14,943 2,249 20,299 588,242 Leases Financing Performing 44,905 147,056 89,465 32,284 24,106 6,399 — 344,215 Nonperforming — 62 865 563 533 128 — 2,151 Subtotal 44,905 147,118 90,330 32,847 24,639 6,527 — 346,366 Total Performing 197,070 537,577 239,992 211,449 159,140 95,910 111,704 1,552,842 Nonperforming — 216 1,542 1,761 1,340 7,656 2,427 14,942 Total Other Loans $ 197,070 $ 537,793 $ 241,534 $ 213,210 $ 160,480 $ 103,566 $ 114,131 $ 1,567,784 December 31, 2019 Residential Lease (dollars in thousands) Real Estate Consumer Financing Total Performing $ 546,630 $ 708,528 $ 330,988 $ 1,586,146 Nonperforming 9,024 376 1,593 10,993 Total (excluding PCI) $ 555,654 $ 708,904 $ 332,581 $ 1,597,139 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
PREMISES AND EQUIPMENT, NET | |
Summary of premises and equipment | March 31, December 31, (dollars in thousands) 2020 2019 Land $ 19,123 $ 19,123 Buildings and improvements 77,028 77,296 Furniture and equipment 32,658 31,846 Total 128,809 128,265 Accumulated depreciation (38,691) (37,210) Premises and equipment, net $ 90,118 $ 91,055 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Summary of information related to operating leases | Three Months Ended (dollars in thousands) 2020 2019 Operating lease cost $ 781 $ 708 Operating cash flows from leases 945 741 Right-of-use assets obtained in exchange for lease obligations 511 10,677 Weighted average remaining lease term 7.83 years 6.00 years Weighted average discount rate 2.97 % 3.12 % |
Summary of projected minimum rental payments | (dollars in thousands) Amount Year ending December 31: 2020 remaining $ 2,060 2021 2,966 2022 2,808 2023 2,209 2024 1,356 Thereafter 5,588 Total future minimum lease payments 16,987 Less imputed interest (1,939) Total operating lease liabilities $ 15,048 |
LOAN SERVICING RIGHTS (Tables)
LOAN SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LOAN SERVICING RIGHTS | |
Schedule of other mortgage notes serviced and changes in our mortgage servicing rights | Three Months Ended March 31, (dollars in thousands) 2020 2019 Loan servicing rights: Balance, beginning of period $ 57,637 $ 56,252 Originated servicing — 213 Amortization (728) (678) Balance, end of period 56,909 55,787 Valuation allowances: Balance, beginning of period 4,944 2,805 Additions 8,468 25 Reductions — — Balance, end of period 13,412 2,830 Loan servicing rights, net $ 43,497 $ 52,957 Fair value: At beginning of period $ 52,693 $ 53,447 At end of period $ 43,497 $ 52,957 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of intangible assets | March 31, December 31, (dollars in thousands) 2020 2019 Banking $ 157,158 $ 156,120 Commercial FHA origination and servicing 10,892 10,892 Wealth management 4,746 4,746 Total goodwill $ 172,796 $ 171,758 The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, are summarized as follows: March 31, 2020 December 31, 2019 Gross Gross Carrying Accumulated Carrying Accumulated (dollars in thousands) Amount Amortization Total Amount Amortization Total Core deposit intangibles $ 57,012 $ (32,131) $ 24,881 $ 57,012 $ (30,674) $ 26,338 Customer relationship intangibles 14,071 (5,828) 8,243 14,071 (5,523) 8,548 Total intangible assets $ 71,083 $ (37,959) $ 33,124 $ 71,083 $ (36,197) $ 34,886 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DERIVATIVE INSTRUMENTS | |
Schedule of derivative instruments, fair value and notional amounts | Notional Amount Fair Value Gain March 31, December 31, March 31, December 31, (dollars in thousands) 2020 2019 2020 2019 Derivative Instruments (included in Other Assets): Interest rate lock commitments $ 239,119 $ 222,654 $ 4,305 $ 3,350 Forward commitments to sell mortgage-backed securities 197,756 221,052 — — Total $ 436,875 $ 443,706 $ 4,305 $ 3,350 Notional Amount Fair Value Loss March 31, December 31, March 31, December 31, (dollars in thousands) 2020 2019 2020 2019 Derivative Instruments (included in Other Liabilities): Forward commitments to sell mortgage-backed securities $ 28,266 $ — $ 329 $ — |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
DEPOSITS | |
Schedule summarizes the classification of deposits | March 31, December 31, (dollars in thousands) 2020 2019 Noninterest-bearing demand $ 1,052,726 $ 1,019,472 Interest-bearing: Checking 1,425,022 1,342,788 Money market 849,642 787,662 Savings 534,457 522,456 Time 788,793 871,876 Total deposits $ 4,650,640 $ 4,544,254 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SHORT-TERM BORROWINGS | |
Schedule of short term borrowings | Repurchase Agreements March 31, December 31, (dollars in thousands) 2020 2019 Outstanding at period-end $ 43,578 $ 82,029 Average amount outstanding 55,616 121,168 Maximum amount outstanding at any month end 52,013 138,907 Weighted average interest rate: During period 0.73 % 0.69 % End of period 0.20 % 0.67 % |
FHLB ADVANCES AND OTHER BORRO_2
FHLB ADVANCES AND OTHER BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
Schedule of Federal Home Loan Bank (FHLB) advances | March 31, December 31, (dollars in thousands) 2020 2019 Midland States Bancorp, Inc. Series G redeemable preferred stock - 181 shares at $1,000 per share $ 181 $ 181 Midland States Bank FHLB advances – fixed rate, fixed term of $27.8 million and $28.0 million, at rates averaging 2.56% at March 31, 2020 and December 31, 2019 – maturing through June 2023, and putable fixed rate of $565.0 million and $465.0 million, at rates averaging 2.02% and 2.34% at March 31, 2020 and December 31, 2019, respectively – maturing through February 2030 with call provisions through August 2021 592,908 493,130 Total FHLB advances and other borrowings $ 593,089 $ 493,311 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SUBORDINATED DEBT | |
Schedule of summary of company's subordinated debt | March 31, December 31, (dollars in thousands) 2020 2019 Subordinated debt issued June 2015 – fixed interest rate of 6.00% through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, $31,075 and $38,325 at March 31, 2020 and December 31, 2019, respectively - maturing June 18, 2025 $ 31,057 $ 38,273 Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025 545 544 Subordinated debt issued October 2017 – fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 - maturing October 15, 2027 39,513 39,496 Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 - maturing September 30, 2029 71,596 71,549 Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 - maturing September 30, 2034 26,794 26,791 Total subordinated debt $ 169,505 $ 176,653 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per common share | Three Months Ended March 31, (dollars in thousands, except per share data) 2020 2019 Net income $ 1,549 $ 13,982 Preferred dividends declared — (82) Preferred stock, premium amortization — 48 Net income available to common shareholders 1,549 13,948 Common shareholder dividends (6,510) (5,776) Unvested restricted stock award dividends (65) (47) Undistributed earnings to unvested restricted stock awards — (65) Undistributed (loss) earnings to common shareholders $ (5,026) $ 8,060 Basic Distributed earnings to common shareholders $ 6,510 $ 5,776 Undistributed (loss) earnings to common shareholders (5,026) 8,060 Total common shareholders earnings, basic $ 1,484 $ 13,836 Diluted Distributed earnings to common shareholders $ 6,510 $ 5,776 Undistributed (loss) earnings to common shareholders (5,026) 8,060 Total common shareholders earnings 1,484 13,836 Add back: Undistributed earnings reallocated from unvested restricted stock awards — — Total common shareholders earnings, diluted $ 1,484 $ 13,836 Weighted average common shares outstanding, basic 24,433,975 23,998,119 Options and warrants 104,027 206,542 Weighted average common shares outstanding, diluted 24,538,002 24,204,661 Basic earnings per common share $ 0.06 $ 0.58 Diluted earnings per common share 0.06 0.57 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of assets and liabilities measured and recorded at fair value | March 31, 2020 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. government sponsored entities and U.S. agency securities $ 47,357 $ — $ 47,357 $ — Mortgage-backed securities - agency 326,700 — 326,700 — Mortgage-backed securities - non-agency 27,281 — 27,281 — State and municipal securities 116,094 — 116,094 — Corporate securities 138,822 — 137,897 925 Equity securities 5,640 — 5,640 — Loans held for sale 113,852 — 113,852 — Interest rate lock commitments 4,305 — 4,305 — Interest rate swap contracts 888 — 888 — Total $ 780,939 $ — $ 780,014 $ 925 Liabilities Interest rate swap contracts $ 888 $ — $ 888 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 44,566 $ — $ — $ 44,566 Mortgage servicing rights held for sale 1,460 — — 1,460 Nonperforming loans 15,972 — 15,450 522 Other real estate owned 909 — 909 — Assets held for sale 3,790 — 3,790 — December 31, 2019 Quoted prices in active Significant markets other Significant for identical observable unobservable assets inputs inputs (dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. government sponsored entities and U.S. agency securities $ 60,020 $ — $ 60,020 $ — Mortgage-backed securities - agency 324,974 — 324,974 — Mortgage-backed securities - non-agency 17,148 — 17,148 — State and municipal securities 124,555 — 124,555 — Corporate securities 122,736 — 121,781 955 Equity securities 5,621 — 5,621 — Loans held for sale 16,431 — 16,431 — Interest rate lock commitments 3,350 — 3,350 — Interest rate swap contracts 306 — 306 — Total $ 675,141 $ — $ 674,186 $ 955 Liabilities Interest rate swap contracts $ 306 $ — $ 306 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 53,824 $ — $ — $ 53,824 Mortgage servicing rights held for sale 1,972 — — 1,972 Nonperforming loans 14,693 — 12,518 2,175 Assets held for sale 3,974 — 3,974 — |
Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended March 31, (dollars in thousands) 2020 2019 Balance, beginning of period $ 955 $ 1,923 Total realized in earnings (1) 2 22 Total unrealized in other comprehensive income (2) (30) 7 Net settlements (principal and interest) (2) (22) Balance, end of period $ 925 $ 1,930 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. (2) Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period. |
Schedule presents quantitative information about significant unobservable inputs | Valuation Unobservable (dollars in thousands) Fair Value technique input / assumptions Range (weighted average) (1) March 31, 2020 Corporate securities $ 925 Consensus pricing Net market price -1.5% - 2.0% (1.0%) December 31, 2019 Corporate securities $ 955 Consensus pricing Net market price -2.0% - 2.5% (1.5%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3) | Valuation Unobservable (dollars in thousands) Fair Value technique input / assumptions Range (weighted average) (1) March 31, 2020 Loan servicing rights: Commercial MSR $ 43,497 Discounted cash flow Prepayment speed 8.00% - 22.50% (8.38%) Discount rate 10.00% - 27.00% (11.43%) SBA servicing rights $ 1,069 Discounted cash flow Prepayment speed 8.31% - 9.21% (8.60%) Discount rate No range (11.70%) MSR held for sale $ 1,460 Discounted cash flow Prepayment speed 14.04% - 26.28% (16.92%) Discount rate 9.00% - 11.50% (10.13%) Other: Nonperforming loans $ 522 Fair value of collateral Discount for type of property, No range (4.50%) age of appraisal and current status December 31, 2019 Loan servicing rights: Commercial MSR $ 52,693 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.20%) Discount rate 10.00% - 14.00% (11.02%) SBA servicing rights $ 1,131 Discounted cash flow Prepayment speed 8.31% - 9.21% (8.60%) Discount rate No range (11.70%) MSR held for sale $ 1,972 Discounted cash flow Prepayment speed 8.64% - 26.28% (12.42%) Discount rate 9.50% - 12.50% (10.75%) Other: Nonperforming loans $ 2,175 Fair value of collateral Discount for type of property, 4.32% - 8.00% (5.22%) age of appraisal and current status (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule of losses recognized on assets measured on a non-recurring basis | Three Months Ended March 31, (dollars in thousands) 2020 2019 Loan servicing rights $ 8,468 $ 25 Mortgage servicing rights held for sale 496 — Nonperforming loans 12,919 981 Other real estate owned 605 16 Assets held for sale 146 — Total losses on assets measured on a nonrecurring basis $ 22,634 $ 1,022 |
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 March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Aggregate Contractual Aggregate Contractual (dollars in thousands) fair value Difference principal fair value Difference principal Commercial loans held for sale $ 1,706 $ 48 $ 1,658 $ 8,236 $ 206 $ 8,030 Residential loans held for sale 12,458 667 11,791 8,195 446 7,749 Consumer loans held for sale 99,688 — 99,688 — — — Total loans held for sale $ 113,852 $ 715 $ 113,137 $ 16,431 $ 652 $ 15,779 The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, (dollars in thousands) 2020 2019 Commercial loans held for sale $ (158) $ (328) Residential loans held for sale 255 (57) Total loans held for sale $ 97 $ (385) |
Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments | March 31, 2020 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 445,097 $ 445,097 $ 445,097 $ — $ — Federal funds sold 4,299 4,299 4,299 — — Nonmarketable equity securities 46,068 46,068 — 46,068 — Loans, net 4,337,659 4,387,244 — — 4,387,244 Accrued interest receivable 16,532 16,532 — 16,532 — Liabilities Deposits $ 4,650,640 $ 4,661,375 $ — $ 4,661,375 $ — Short-term borrowings 43,578 43,578 — 43,578 — FHLB and other borrowings 593,089 631,450 — 631,450 — Subordinated debt 169,505 160,344 — 160,344 — Trust preferred debentures 48,420 42,391 — 42,391 — Accrued interest payable 7,078 7,078 — 7,078 — December 31, 2019 Quoted prices in active Significant markets other Significant for identical observable unobservable Carrying assets inputs inputs (dollars in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 392,694 $ 392,694 $ 392,694 $ — $ — Federal funds sold 1,811 1,811 1,811 — — Nonmarketable equity securities 44,505 44,505 — 44,505 — Loans, net 4,373,382 4,385,768 — — 4,385,768 Accrued interest receivable 16,346 16,346 — 16,346 — Liabilities Deposits $ 4,544,254 $ 4,548,327 $ — $ 4,548,327 $ — Short-term borrowings 82,029 82,029 — 82,029 — FHLB and other borrowings 493,311 506,832 — 506,832 — Subordinated debt 176,653 182,189 — 182,189 — Trust preferred debentures 48,288 53,811 — 53,811 — Accrued interest payable 6,400 6,400 — 6,400 — |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | |
Schedule of loan commitments | March 31, December 31, (dollars in thousands) 2020 2019 Commitments to extend credit $ 728,472 $ 725,506 Financial guarantees – standby letters of credit 55,676 106,678 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of segment financial information | Commercial FHA Wealth Origination and (dollars in thousands) Banking Management Servicing Other Total Three Months Ended March 31, 2020 Net interest income (expense) $ 49,927 $ — $ (64) $ (3,212) $ 46,651 Provision for credit losses on loans 10,569 — — — 10,569 Noninterest income 10,213 5,677 (7,232) (60) 8,598 Noninterest expense 37,074 3,613 2,094 (106) 42,675 Income (loss) before income taxes (benefit) 12,497 2,064 (9,390) (3,166) 2,005 Income taxes (benefit) 3,909 205 (2,629) (1,029) 456 Net income (loss) $ 8,588 $ 1,859 $ (6,761) $ (2,137) $ 1,549 Total assets $ 6,132,963 $ 21,875 $ 81,394 $ (28,002) $ 6,208,230 Three Months Ended March 31, 2019 Net interest income (expense) $ 48,518 $ — $ (176) $ (2,741) $ 45,601 Provision for credit losses on loans 3,243 — — — 3,243 Noninterest income 8,940 4,953 3,238 (56) 17,075 Noninterest expense 35,371 3,247 2,811 (332) 41,097 Income (loss) before income taxes (benefit) 18,844 1,706 251 (2,465) 18,336 Income taxes (benefit) 4,975 140 71 (832) 4,354 Net income (loss) $ 13,869 $ 1,566 $ 180 $ (1,633) $ 13,982 Total assets $ 5,582,494 $ 19,039 $ 94,797 $ (54,550) $ 5,641,780 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Summary of noninterest income, segregated by revenue | Three Months Ended March 31, (dollars in thousands) 2020 2019 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 4,209 $ 3,617 Investment advisory fees 529 529 Investment brokerage fees 395 219 Other 544 588 Service charges on deposit accounts: Nonsufficient fund fees 1,866 1,754 Other 790 766 Interchange revenues 2,833 2,680 Other income: Merchant services revenue 351 375 Other 938 818 Noninterest income - out-of-scope of Topic 606 (3,857) 5,729 Total noninterest income $ 8,598 $ 17,075 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Retained earnings | $ 153,722,000 | $ 165,920,000 | |||
Operating lease right-of-use asset | 14,078,000 | 14,224,000 | |||
Operating lease liabilities | 15,048,000 | 15,369,000 | |||
Loans | 4,376,204,000 | 4,401,410,000 | |||
Allowance for credit losses on loans | $ (40,811,000) | (38,545,000) | (28,028,000) | $ (23,091,000) | $ (20,903,000) |
Allowance for credit losses on unfunded commitments | (1,507,000) | (2,400,000) | |||
Interest receivable from loans. | 11,900,000 | ||||
Accrued interest receivable | 16,532,000 | 16,346,000 | |||
Threshold amount for non accrual loans | 500,000 | ||||
Threshold amount for accruing loans past due more than 90 days | 100,000 | ||||
Impact | |||||
Allowance for credit losses on loans | (12,783,000) | ||||
Allowance for credit losses on unfunded commitments | (263,000) | ||||
Previously Reported | |||||
Allowance for credit losses on loans | (28,028,000) | ||||
Allowance for credit losses on unfunded commitments | (1,244,000) | ||||
ASU 2016-13 | |||||
Allowance for credit losses on loans | (8,546,000) | ||||
ASU 2016-13 | Impact | |||||
Retained earnings | (7,200,000) | ||||
Commercial Portfolio | |||||
Loans | 2,808,420,000 | 2,790,422,000 | |||
Commercial Portfolio | Commercial | |||||
Loans | 1,056,986,000 | ||||
Commercial Portfolio | Commercial | Impact | |||||
Loans | 1,801,000 | ||||
Commercial Portfolio | Commercial | Previously Reported | |||||
Loans | 1,055,185,000 | ||||
Commercial Portfolio | Commercial real estate | |||||
Loans | 1,528,119,000 | ||||
Commercial Portfolio | Commercial real estate | Impact | |||||
Loans | 1,615,000 | ||||
Commercial Portfolio | Commercial real estate | Previously Reported | |||||
Loans | 1,526,504,000 | ||||
Commercial Portfolio | Constructions | |||||
Loans | 209,551,000 | ||||
Commercial Portfolio | Constructions | Impact | |||||
Loans | 818,000 | ||||
Commercial Portfolio | Constructions | Previously Reported | |||||
Loans | 208,733,000 | ||||
Construction And Land Development Segment Portfolio [Member] | |||||
Loans | 208,361,000 | 208,733,000 | |||
Residential real estate: | Residential real estate | |||||
Loans | 570,882,000 | ||||
Residential real estate: | Residential real estate | Impact | |||||
Loans | 2,591,000 | ||||
Residential real estate: | Residential real estate | Previously Reported | |||||
Loans | 568,291,000 | ||||
Other loan portfolio | |||||
Loans | 1,567,784,000 | ||||
Consumer | Consumer | |||||
Loans | 710,646,000 | ||||
Consumer | Consumer | Impact | |||||
Loans | 530,000 | ||||
Consumer | Consumer | Previously Reported | |||||
Loans | 710,116,000 | ||||
Lease financing | |||||
Loans | $ 346,366,000 | 332,581,000 | |||
Lease financing | Lease financing | |||||
Loans | 332,581,000 | ||||
Lease financing | Lease financing | Previously Reported | |||||
Loans | 332,581,000 | ||||
PCD (Previously PCI) loans | |||||
Allowance for credit losses on loans | $ (4,237,000) | ||||
PCD (Previously PCI) loans | ASU 2016-13 | |||||
Allowance for credit losses on loans | 4,200,000 | ||||
Noncredit discount | $ 2,900,000 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Thousands | Jul. 17, 2019USD ($)itemshares | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Liabilities assumed: | |||
Goodwill | $ 172,796 | $ 171,758 | |
HomeStar Bank | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Number of service banking centers acquired | item | 5 | ||
Total consideration | $ 11,400 | ||
Shares issued | shares | 404,968 | ||
Cash to pay outstanding trust preferred securities and subordinated debentures plus accrued interest | $ 1,000 | ||
Transaction and integration costs | $ 7,400 | ||
Goodwill increases | 1,000 | ||
Net loans | 211,070 | ||
Total deposits | 321,740 | ||
Assets acquired: | |||
Cash and cash equivalents | 70,900 | ||
Investment securities available for sale | 54,963 | ||
Equity securities | 2,153 | ||
Loans | 211,070 | ||
Loans held for sale | 3,562 | ||
Premises and equipment | 4,049 | ||
Operating lease right-of-use asset | 5,177 | ||
Other real estate owned | 1,092 | ||
Nonmarketable equity securities | 454 | ||
Accrued interest receivable | 1,185 | ||
Loan servicing rights | 1,089 | ||
Mortgage servicing rights held for sale | 1,701 | ||
Intangible assets | 4,600 | ||
Deferred tax assets, net | 2,732 | ||
Other assets | 1,541 | ||
Total assets acquired | 366,268 | ||
Liabilities assumed: | |||
Deposits | 321,740 | ||
FHLB advances and other borrowings | 31,369 | ||
Accrued interest payable | 115 | ||
Operating lease liabilities | 6,232 | ||
Other liabilities | 3,575 | ||
Total liabilities assumed | 363,031 | ||
Net assets acquired | 3,237 | ||
Goodwill | 8,123 | ||
Total consideration paid | 11,360 | ||
Intangible assets: | |||
Total intangible assets | 4,600 | ||
HomeStar Bank | Core deposits | |||
Intangible assets: | |||
Total intangible assets | $ 4,300 | ||
Estimated useful lives: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||
HomeStar Bank | Customer relationship | |||
Intangible assets: | |||
Total intangible assets | $ 300 | ||
Estimated useful lives: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years |
INVESTMENT SECURITIES - Classif
INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Investment securities available for sale | ||
Amortized cost | $ 644,668 | $ 639,168 |
Gross unrealized gains | 15,411 | 11,139 |
Gross unrealized losses | 3,750 | 874 |
Allowance for credit losses on investments | 75 | |
Fair value | 656,254 | 649,433 |
Equity securities recorded at fair value | 5,640 | 5,621 |
U.S. government sponsored entities and U.S. agency securities | ||
Investment securities available for sale | ||
Amortized cost | 46,428 | 59,600 |
Gross unrealized gains | 929 | 442 |
Gross unrealized losses | 22 | |
Fair value | 47,357 | 60,020 |
Agency mortgage-backed securities | ||
Investment securities available for sale | ||
Amortized cost | 317,332 | 321,840 |
Gross unrealized gains | 9,417 | 3,368 |
Gross unrealized losses | 49 | 234 |
Fair value | 326,700 | 324,974 |
Non-agency mortgage-backed securities | ||
Investment securities available for sale | ||
Amortized cost | 28,121 | 17,198 |
Gross unrealized gains | 3 | |
Gross unrealized losses | 840 | 53 |
Fair value | 27,281 | 17,148 |
State and municipal securities | ||
Investment securities available for sale | ||
Amortized cost | 112,500 | 119,371 |
Gross unrealized gains | 3,897 | 5,195 |
Gross unrealized losses | 284 | 11 |
Allowance for credit losses on investments | 19 | |
Fair value | 116,094 | 124,555 |
Corporate Securities | ||
Investment securities available for sale | ||
Amortized cost | 140,287 | 121,159 |
Gross unrealized gains | 1,168 | 2,131 |
Gross unrealized losses | 2,577 | 554 |
Allowance for credit losses on investments | 56 | |
Fair value | $ 138,822 | $ 122,736 |
INVESTMENT SECURITIES - Continu
INVESTMENT SECURITIES - Continuous unrealized loss position (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Securities available for sale: | ||
Less than 12 Months, Fair value | $ 77,523 | $ 115,677 |
Less than 12 Months, Unrealized loss | 2,169 | 737 |
12 Months or more, Fair value | 1,255 | 11,085 |
12 Months or more, Unrealized loss | 7 | 137 |
Total, Fair value | 78,778 | 126,762 |
Total, Unrealized loss | 2,176 | 874 |
Allowance for credit losses on investment securities available-for-sale | ||
Ending balance | $ 75 | |
Unrealized loss | ||
Investment securities available for sale unrealized losses | item | 74 | |
Aggregate depreciation | 0.0281% | |
U.S. government sponsored entities and U.S. agency securities | ||
Securities available for sale: | ||
Less than 12 Months, Fair value | 7,200 | |
Less than 12 Months, Unrealized loss | 22 | |
Total, Fair value | 7,200 | |
Total, Unrealized loss | 22 | |
Agency mortgage-backed securities | ||
Securities available for sale: | ||
Less than 12 Months, Fair value | $ 10,175 | 75,336 |
Less than 12 Months, Unrealized loss | 42 | 170 |
12 Months or more, Fair value | 1,255 | 7,170 |
12 Months or more, Unrealized loss | 7 | 64 |
Total, Fair value | 11,430 | 82,506 |
Total, Unrealized loss | 49 | 234 |
State and municipal securities | ||
Securities available for sale: | ||
Less than 12 Months, Fair value | 1,813 | |
Less than 12 Months, Unrealized loss | 11 | |
Total, Fair value | 1,813 | |
Total, Unrealized loss | 11 | |
Allowance for credit losses on investment securities available-for-sale | ||
Additions for securities for which no previous expected credit losses were recognized | 19 | |
Ending balance | 19 | |
Corporate Securities | ||
Securities available for sale: | ||
Less than 12 Months, Fair value | 41,499 | 20,269 |
Less than 12 Months, Unrealized loss | 1,287 | 481 |
12 Months or more, Fair value | 3,915 | |
12 Months or more, Unrealized loss | 73 | |
Total, Fair value | 41,499 | 24,184 |
Total, Unrealized loss | 1,287 | 554 |
Allowance for credit losses on investment securities available-for-sale | ||
Additions for securities for which no previous expected credit losses were recognized | 56 | |
Ending balance | 56 | |
Non-agency mortgage-backed securities | ||
Securities available for sale: | ||
Less than 12 Months, Fair value | 25,849 | 11,059 |
Less than 12 Months, Unrealized loss | 840 | 53 |
Total, Fair value | 25,849 | 11,059 |
Total, Unrealized loss | $ 840 | $ 53 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Amortized cost of investment securities available for sale, by contractual maturity | |||
Within one year | $ 33,584 | ||
After one year through five years | 78,025 | ||
After five years through ten years | 169,041 | ||
After ten years | 18,565 | ||
Total, single maturity date | 644,668 | ||
Fair Value of investment securities available for sale, by contractual maturity | |||
Within one year | 33,801 | ||
After one year through five years | 79,387 | ||
After five years through ten years | 169,579 | ||
After ten years | 19,506 | ||
Total, single maturity date | 656,254 | ||
Gross realized gains/losses | |||
Proceeds from sales | 0 | $ 0 | |
Equity securities recorded at fair value | 5,640 | $ 5,621 | |
Gross unrealized gains on sales | 67,000 | ||
Equity securities, unrealized losses | 1,000 | ||
Equity Securities | |||
Equity securities, at fair value | 5,640 | 5,621 | |
Sales of equity securities | 0 | $ 0 | |
Equity securities, unrealized losses | 1,000 | ||
Equity securities, unrealized gains | $ 67,000 | ||
Mortgage-backed securities | |||
Amortized cost of investment securities available for sale, by contractual maturity | |||
Total, single maturity date | 345,453 | ||
Fair Value of investment securities available for sale, by contractual maturity | |||
Total, single maturity date | $ 353,981 |
LOANS - Summary of loans and cr
LOANS - Summary of loans and credit losses (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Summary of loans | |||||
Loans | $ 4,376,204 | $ 4,401,410 | |||
Loans, additional information | |||||
Net deferred loan fees | 2,900 | 2,200 | |||
Unearned income | 40,100 | 39,600 | |||
Loans held for sale | 113,852 | 16,431 | |||
Proceeds from sales of loans held for sale | 73,114 | $ 99,323 | |||
Gain on loans sold and held for sale | 2,178 | 3,121 | |||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | $ 38,545 | 28,028 | 20,903 | ||
Provision for credit losses on loans | 10,569 | 3,243 | |||
Loan charge-offs | (13,217) | (1,382) | |||
Loan recoveries | 382 | 327 | |||
Ending balance | 38,545 | 23,091 | |||
Directors, executive officers, principal shareholders and affiliates | |||||
Loans to certain directors, executive officers, principal shareholders and their affiliates: | |||||
Loans outstanding to related parties | 21,700 | 23,000 | |||
New loans to related parties and other additions | 80 | ||||
Repayments from related parties and other reductions | 1,300 | ||||
Commercial Portfolio | |||||
Summary of loans | |||||
Loans | 2,808,420 | 2,790,422 | |||
Commercial Portfolio | Commercial | |||||
Summary of loans | |||||
Loans | $ 1,056,986 | ||||
Commercial Portfolio | Commercial real estate | |||||
Summary of loans | |||||
Loans | 1,528,119 | ||||
Commercial Portfolio | Constructions | |||||
Summary of loans | |||||
Loans | 209,551 | ||||
Construction And Land Development Segment Portfolio [Member] | |||||
Summary of loans | |||||
Loans | 208,361 | 208,733 | |||
Residential real estate: | Residential real estate | |||||
Summary of loans | |||||
Loans | 570,882 | ||||
Other loan portfolio | |||||
Summary of loans | |||||
Loans | 1,567,784 | ||||
Commercial and Residential Loan | |||||
Loans, additional information | |||||
Loans held for sale | 113,900 | 16,400 | |||
Proceeds from sales of loans held for sale | 73,100 | 99,300 | |||
Consumer | Consumer | |||||
Summary of loans | |||||
Loans | 710,646 | ||||
Lease financing | |||||
Summary of loans | |||||
Loans | 346,366 | 332,581 | |||
Lease financing | Lease financing | |||||
Summary of loans | |||||
Loans | $ 332,581 | ||||
ASU 2016-13 | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 8,546 | ||||
PCD (Previously PCI) loans | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 4,237 | ||||
Commercial | |||||
Summary of loans | |||||
Loans | 649,403 | 628,056 | |||
Commercial | Commercial Portfolio | |||||
Summary of loans | |||||
Loans | 649,403 | 1,055,185 | |||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 11,740 | 10,031 | 9,524 | ||
Provision for credit losses on loans | 1,730 | 118 | |||
Loan charge-offs | (3,398) | (112) | |||
Loan recoveries | 5 | 15 | |||
Ending balance | 11,740 | 9,545 | |||
Commercial | ASU 2016-13 | Commercial Portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 2,327 | ||||
Commercial | PCD (Previously PCI) loans | Commercial Portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 1,045 | ||||
Commercial real estate loans [Member] | Commercial Portfolio | |||||
Summary of loans | |||||
Loans | 1,526,504 | ||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 13,583 | 10,272 | 4,723 | ||
Provision for credit losses on loans | 5,755 | 1,945 | |||
Loan charge-offs | (7,873) | (58) | |||
Loan recoveries | 14 | 7 | |||
Ending balance | 13,583 | 6,617 | |||
Commercial real estate loans [Member] | ASU 2016-13 | Commercial Portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 4,104 | ||||
Commercial real estate loans [Member] | PCD (Previously PCI) loans | Commercial Portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 1,311 | ||||
Commercial Other | |||||
Summary of loans | |||||
Loans | 443,376 | 427,129 | |||
Commercial Other | Commercial Portfolio | |||||
Summary of loans | |||||
Loans | 443,376 | ||||
Construction and land development | Commercial Portfolio | |||||
Summary of loans | |||||
Loans | 208,733 | ||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 1,321 | 290 | 372 | ||
Provision for credit losses on loans | (549) | 63 | |||
Loan charge-offs | (12) | (44) | |||
Loan recoveries | 59 | 7 | |||
Ending balance | 1,321 | 398 | |||
Construction and land development | ASU 2016-13 | Commercial Portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 724 | ||||
Construction and land development | PCD (Previously PCI) loans | Commercial Portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 809 | ||||
Commercial real estate non-owner occupied | |||||
Summary of loans | |||||
Loans | 809,628 | 825,874 | |||
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | |||||
Summary of loans | |||||
Loans | 809,628 | ||||
Commercial real estate owner occupied | |||||
Summary of loans | |||||
Loans | 471,360 | 464,601 | |||
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | |||||
Summary of loans | |||||
Loans | 471,360 | ||||
Multi-family | |||||
Summary of loans | |||||
Loans | 142,770 | 146,795 | |||
Multi-family | Commercial Real Estate Portfolio Segment [Member] | |||||
Summary of loans | |||||
Loans | 142,770 | ||||
Farmland | |||||
Summary of loans | |||||
Loans | 83,522 | 89,234 | |||
Farmland | Commercial Real Estate Portfolio Segment [Member] | |||||
Summary of loans | |||||
Loans | 83,522 | ||||
Residential real estate | |||||
Summary of loans | |||||
Loans | 441,495 | 456,107 | |||
Residential real estate | Other loan portfolio | |||||
Summary of loans | |||||
Loans | 441,495 | 568,291 | |||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 4,638 | 2,499 | 2,041 | ||
Provision for credit losses on loans | 257 | 514 | |||
Loan charge-offs | (388) | (153) | |||
Loan recoveries | 44 | 22 | |||
Ending balance | 4,638 | 2,424 | |||
Residential real estate | ASU 2016-13 | Other loan portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 1,211 | ||||
Residential real estate | PCD (Previously PCI) loans | Other loan portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 1,015 | ||||
Other residential | |||||
Summary of loans | |||||
Loans | 106,519 | 112,184 | |||
Other residential | Other loan portfolio | |||||
Summary of loans | |||||
Loans | 106,519 | ||||
Consumer Loan [Member] | |||||
Summary of loans | |||||
Loans | 85,162 | 100,732 | |||
Loans, additional information | |||||
Loans held for sale | 99,700 | ||||
Gain on loans sold and held for sale | 0 | ||||
Consumer Loan [Member] | Other loan portfolio | |||||
Summary of loans | |||||
Loans | 85,162 | 710,116 | |||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 1,954 | 2,642 | 2,154 | ||
Provision for credit losses on loans | 256 | 329 | |||
Loan charge-offs | (598) | (556) | |||
Loan recoveries | 191 | 210 | |||
Ending balance | 1,954 | 2,137 | |||
Consumer Loan [Member] | ASU 2016-13 | Other loan portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | (594) | ||||
Consumer Loan [Member] | PCD (Previously PCI) loans | Other loan portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | 57 | ||||
Consumer Other | |||||
Summary of loans | |||||
Loans | 588,242 | 609,384 | |||
Consumer Other | Other loan portfolio | |||||
Summary of loans | |||||
Loans | 588,242 | ||||
Lease financing | Other loan portfolio | |||||
Summary of loans | |||||
Loans | 346,366 | $ 332,581 | |||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | $ 5,309 | 2,294 | 2,089 | ||
Provision for credit losses on loans | 3,120 | 274 | |||
Loan charge-offs | (948) | (459) | |||
Loan recoveries | 69 | 66 | |||
Ending balance | 5,309 | $ 1,970 | |||
Lease financing | ASU 2016-13 | Other loan portfolio | |||||
Changes in allowance for credit losses on loans: | |||||
Beginning balance | $ 774 |
LOANS - Allowance for loan loss
LOANS - Allowance for loan losses and recorded investment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for credit losses on loans: | |||||
Loans individually evaluated for impairment | $ 9,977 | ||||
Loans collectively evaluated for impairment | 788 | ||||
Non-impaired loans collectively evaluated for impairment | 16,080 | ||||
Loans acquired with deteriorated credit quality (1) | 1,183 | ||||
Total allowance for credit losses on loans | $ 38,545 | $ 40,811 | 28,028 | $ 23,091 | $ 20,903 |
Recorded investment (loan balance): | |||||
Impaired loans individually evaluated for impairment | 35,736 | ||||
Impaired loans collectively evaluated for impairment | 6,346 | ||||
Non-impaired loans collectively evaluated for impairment | 4,316,617 | ||||
Loans acquired with deteriorated credit quality (1) | 42,711 | ||||
Loans and Leases Receivable, Gross, Total | 4,376,204 | 4,401,410 | |||
Commercial | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 649,403 | 628,056 | |||
Residential real estate | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 441,495 | 456,107 | |||
Consumer Loan [Member] | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 85,162 | 100,732 | |||
Commercial Portfolio | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 2,808,420 | 2,790,422 | |||
Commercial Portfolio | Commercial | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,056,986 | ||||
Commercial Portfolio | Commercial real estate | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,528,119 | ||||
Commercial Portfolio | Constructions | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 209,551 | ||||
Commercial Portfolio | Commercial | |||||
Allowance for credit losses on loans: | |||||
Loans individually evaluated for impairment | 3,563 | ||||
Loans collectively evaluated for impairment | 69 | ||||
Non-impaired loans collectively evaluated for impairment | 6,380 | ||||
Loans acquired with deteriorated credit quality (1) | 19 | ||||
Total allowance for credit losses on loans | 11,740 | 10,031 | 9,545 | 9,524 | |
Recorded investment (loan balance): | |||||
Impaired loans individually evaluated for impairment | 5,767 | ||||
Impaired loans collectively evaluated for impairment | 511 | ||||
Non-impaired loans collectively evaluated for impairment | 1,045,829 | ||||
Loans acquired with deteriorated credit quality (1) | 3,078 | ||||
Loans and Leases Receivable, Gross, Total | 649,403 | 1,055,185 | |||
Commercial Portfolio | Commercial real estate loans [Member] | |||||
Allowance for credit losses on loans: | |||||
Loans individually evaluated for impairment | 5,968 | ||||
Loans collectively evaluated for impairment | 100 | ||||
Non-impaired loans collectively evaluated for impairment | 3,643 | ||||
Loans acquired with deteriorated credit quality (1) | 561 | ||||
Total allowance for credit losses on loans | 13,583 | 10,272 | 6,617 | 4,723 | |
Recorded investment (loan balance): | |||||
Impaired loans individually evaluated for impairment | 22,698 | ||||
Impaired loans collectively evaluated for impairment | 764 | ||||
Non-impaired loans collectively evaluated for impairment | 1,482,935 | ||||
Loans acquired with deteriorated credit quality (1) | 20,107 | ||||
Loans and Leases Receivable, Gross, Total | 1,526,504 | ||||
Commercial Portfolio | Construction and land development | |||||
Allowance for credit losses on loans: | |||||
Loans collectively evaluated for impairment | 14 | ||||
Non-impaired loans collectively evaluated for impairment | 272 | ||||
Loans acquired with deteriorated credit quality (1) | 4 | ||||
Total allowance for credit losses on loans | 1,321 | 290 | 398 | 372 | |
Recorded investment (loan balance): | |||||
Impaired loans individually evaluated for impairment | 1,245 | ||||
Impaired loans collectively evaluated for impairment | 104 | ||||
Non-impaired loans collectively evaluated for impairment | 201,707 | ||||
Loans acquired with deteriorated credit quality (1) | 5,677 | ||||
Loans and Leases Receivable, Gross, Total | 208,733 | ||||
Construction And Land Development Segment Portfolio [Member] | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 208,361 | 208,733 | |||
Residential real estate: | Residential real estate | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 570,882 | ||||
Other loan portfolio | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,567,784 | ||||
Other loan portfolio | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,552,842 | ||||
Other loan portfolio | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 14,942 | ||||
Other loan portfolio | Lease financing | |||||
Allowance for credit losses on loans: | |||||
Loans individually evaluated for impairment | 156 | ||||
Loans collectively evaluated for impairment | 122 | ||||
Non-impaired loans collectively evaluated for impairment | 2,016 | ||||
Total allowance for credit losses on loans | 5,309 | 2,294 | 1,970 | 2,089 | |
Recorded investment (loan balance): | |||||
Impaired loans individually evaluated for impairment | 697 | ||||
Impaired loans collectively evaluated for impairment | 896 | ||||
Non-impaired loans collectively evaluated for impairment | 330,988 | ||||
Loans and Leases Receivable, Gross, Total | 346,366 | 332,581 | |||
Other loan portfolio | Lease financing | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 344,215 | ||||
Other loan portfolio | Lease financing | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 2,151 | ||||
Other loan portfolio | Residential real estate | |||||
Allowance for credit losses on loans: | |||||
Loans individually evaluated for impairment | 290 | ||||
Loans collectively evaluated for impairment | 444 | ||||
Non-impaired loans collectively evaluated for impairment | 1,269 | ||||
Loans acquired with deteriorated credit quality (1) | 496 | ||||
Total allowance for credit losses on loans | 4,638 | 2,499 | 2,424 | 2,041 | |
Recorded investment (loan balance): | |||||
Impaired loans individually evaluated for impairment | 5,329 | ||||
Impaired loans collectively evaluated for impairment | 3,695 | ||||
Non-impaired loans collectively evaluated for impairment | 546,630 | ||||
Loans acquired with deteriorated credit quality (1) | 12,637 | ||||
Loans and Leases Receivable, Gross, Total | 441,495 | 568,291 | |||
Other loan portfolio | Residential real estate | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 432,044 | ||||
Other loan portfolio | Residential real estate | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 9,451 | ||||
Other loan portfolio | Consumer Loan [Member] | |||||
Allowance for credit losses on loans: | |||||
Loans collectively evaluated for impairment | 39 | ||||
Non-impaired loans collectively evaluated for impairment | 2,500 | ||||
Loans acquired with deteriorated credit quality (1) | 103 | ||||
Total allowance for credit losses on loans | 1,954 | 2,642 | $ 2,137 | $ 2,154 | |
Recorded investment (loan balance): | |||||
Impaired loans collectively evaluated for impairment | 376 | ||||
Non-impaired loans collectively evaluated for impairment | 708,528 | ||||
Loans acquired with deteriorated credit quality (1) | 1,212 | ||||
Loans and Leases Receivable, Gross, Total | 85,162 | 710,116 | |||
Other loan portfolio | Consumer Loan [Member] | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 84,650 | ||||
Other loan portfolio | Consumer Loan [Member] | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 512 | ||||
Consumer | Consumer | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 710,646 | ||||
Lease financing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | $ 346,366 | 332,581 | |||
Lease financing | Lease financing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | $ 332,581 | ||||
PCD (Previously PCI) loans | |||||
Allowance for credit losses on loans: | |||||
Total allowance for credit losses on loans | 4,237 | ||||
PCD (Previously PCI) loans | Commercial Portfolio | Commercial | |||||
Allowance for credit losses on loans: | |||||
Total allowance for credit losses on loans | 1,045 | ||||
PCD (Previously PCI) loans | Commercial Portfolio | Commercial real estate loans [Member] | |||||
Allowance for credit losses on loans: | |||||
Total allowance for credit losses on loans | 1,311 | ||||
PCD (Previously PCI) loans | Commercial Portfolio | Construction and land development | |||||
Allowance for credit losses on loans: | |||||
Total allowance for credit losses on loans | 809 | ||||
PCD (Previously PCI) loans | Other loan portfolio | Residential real estate | |||||
Allowance for credit losses on loans: | |||||
Total allowance for credit losses on loans | 1,015 | ||||
PCD (Previously PCI) loans | Other loan portfolio | Consumer Loan [Member] | |||||
Allowance for credit losses on loans: | |||||
Total allowance for credit losses on loans | 57 | ||||
Non-PCI loans | Commercial Portfolio | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 2,761,560 | ||||
Non-PCI loans | Commercial Portfolio | Commercial | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,052,107 | ||||
Non-PCI loans | Commercial Portfolio | Commercial real estate loans [Member] | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,506,397 | ||||
Non-PCI loans | Commercial Portfolio | Construction and land development | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 203,056 | ||||
Non-PCI loans | Other loan portfolio | Lease financing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 332,581 | ||||
Non-PCI loans | Other loan portfolio | Lease financing | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 330,988 | ||||
Non-PCI loans | Other loan portfolio | Lease financing | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 1,593 | ||||
Non-PCI loans | Other loan portfolio | Residential real estate | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 555,654 | ||||
Non-PCI loans | Other loan portfolio | Residential real estate | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 546,630 | ||||
Non-PCI loans | Other loan portfolio | Residential real estate | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 9,024 | ||||
Non-PCI loans | Other loan portfolio | Consumer Loan [Member] | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 708,904 | ||||
Non-PCI loans | Other loan portfolio | Consumer Loan [Member] | Performing | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | 708,528 | ||||
Non-PCI loans | Other loan portfolio | Consumer Loan [Member] | Nonperforming | |||||
Recorded investment (loan balance): | |||||
Loans and Leases Receivable, Gross, Total | $ 376 |
LOANS - Risk rating (Details)
LOANS - Risk rating (Details) | 3 Months Ended |
Mar. 31, 2020region | |
Risk category | |
Number of main regions | 4 |
Commercial Portfolio | Credit Risk State One [Member] | |
Risk category | |
Credit Risk Rating Number for Commercial Loan | 0-5 |
Commercial Portfolio | Credit Risk State Two [Member] | |
Risk category | |
Credit Risk Rating Number for Commercial Loan | 6 |
Commercial Portfolio | Credit Risk State Three [Member] | |
Risk category | |
Credit Risk Rating Number for Commercial Loan | 7 |
Commercial Portfolio | Credit Risk State Four [Member] | |
Risk category | |
Credit Risk Rating Number for Commercial Loan | 8 |
Commercial Portfolio | Credit Risk State Default [Member] | |
Risk category | |
Credit Risk Rating Number for Commercial Loan | 9+ and nonaccrual |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State One [Member] | Minimum | |
Risk category | |
Threshold period past due for loans | 0 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State One [Member] | Maximum | |
Risk category | |
Threshold period past due for loans | 14 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Two [Member] | Minimum | |
Risk category | |
Threshold period past due for loans | 15 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Two [Member] | Maximum | |
Risk category | |
Threshold period past due for loans | 29 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Three [Member] | Minimum | |
Risk category | |
Threshold period past due for loans | 30 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Three [Member] | Maximum | |
Risk category | |
Threshold period past due for loans | 59 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Four [Member] | Minimum | |
Risk category | |
Threshold period past due for loans | 60 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Four [Member] | Maximum | |
Risk category | |
Threshold period past due for loans | 89 days |
Consumer Loans and Equipment Finance Loans and Leases | Credit Risk State Default [Member] | Minimum | |
Risk category | |
Threshold period past due for loans | 90 days |
LOANS - Non-accrual (Details)
LOANS - Non-accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Nonaccrual | |||
Nonaccrual Loans | $ 54,232 | $ 38,401 | |
Nonaccrual Loans with no allowance for credit loss | 15,347 | 15,134 | |
Amount of financing receivable reclassified to non-accrual | $ 9,800 | ||
Commercial | |||
Nonaccrual | |||
Nonaccrual Loans | 1,948 | 1,492 | |
Nonaccrual Loans with no allowance for credit loss | 119 | ||
Commercial Other | |||
Nonaccrual | |||
Nonaccrual Loans | 2,504 | 4,351 | |
Nonaccrual Loans with no allowance for credit loss | 371 | 1,519 | |
Construction and land development | |||
Nonaccrual | |||
Nonaccrual Loans | 4,954 | 1,304 | |
Nonaccrual Loans with no allowance for credit loss | 693 | 1,245 | |
Commercial real estate non-owner occupied | |||
Nonaccrual | |||
Nonaccrual Loans | 9,639 | 10,915 | |
Nonaccrual Loans with no allowance for credit loss | 4,489 | 4,572 | |
Commercial real estate owner occupied | |||
Nonaccrual | |||
Nonaccrual Loans | 11,672 | 4,396 | |
Nonaccrual Loans with no allowance for credit loss | 6,613 | 2,648 | |
Multi-family | |||
Nonaccrual | |||
Nonaccrual Loans | 10,557 | 6,231 | |
Nonaccrual Loans with no allowance for credit loss | 2,392 | 1,430 | |
Farmland | |||
Nonaccrual | |||
Nonaccrual Loans | 200 | ||
Nonaccrual Loans with no allowance for credit loss | 150 | ||
Residential real estate | |||
Nonaccrual | |||
Nonaccrual Loans | 8,414 | 6,140 | |
Nonaccrual Loans with no allowance for credit loss | 789 | 2,416 | |
Other residential | |||
Nonaccrual | |||
Nonaccrual Loans | 2,289 | 1,656 | |
Nonaccrual Loans with no allowance for credit loss | 912 | ||
Consumer Loan [Member] | |||
Nonaccrual | |||
Nonaccrual Loans | 480 | 341 | |
Nonaccrual Loans with no allowance for credit loss | 7 | ||
Lease financing | |||
Nonaccrual | |||
Nonaccrual Loans | 1,775 | 1,375 | |
Nonaccrual Loans with no allowance for credit loss | 116 | ||
Commercial Portfolio | |||
Nonaccrual | |||
Nonaccrual Loans | 41,274 | 28,889 | |
Nonaccrual Loans with no allowance for credit loss | $ 14,558 | $ 11,683 |
LOANS - Impaired Loans with int
LOANS - Impaired Loans with interest recognized (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income : | ||
Interest income recognized on nonaccrual loans | $ 0 | $ 0 |
Additional interest income that would have been recorded had they been current | 890,000 | 653,000 |
Recognized interest income on loans modified under troubled debt restructurings | $ 20,000 | $ 32,000 |
LOANS - Collateral dependent lo
LOANS - Collateral dependent loans (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Summary of loans | |
Collateral dependent loans | $ 29,898 |
Commercial Other | Commercial | |
Summary of loans | |
Collateral dependent loans | 371 |
Commercial real estate non-owner occupied | Commercial real estate | |
Summary of loans | |
Collateral dependent loans | 8,874 |
Commercial real estate owner occupied | Commercial real estate | |
Summary of loans | |
Collateral dependent loans | 7,264 |
Multi-family | Commercial real estate | |
Summary of loans | |
Collateral dependent loans | 10,338 |
Construction and land development | Constructions | |
Summary of loans | |
Collateral dependent loans | 2,941 |
Residential real estate | Residential real estate | |
Summary of loans | |
Collateral dependent loans | $ 110 |
LOANS - Aging Status of recorde
LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Aging Status of recorded investment | |||
Past Due | $ 41,171 | ||
Nonaccrual Loans | 54,232 | $ 38,401 | |
Total | 4,321,972 | ||
Current | 4,280,801 | ||
Loans and Leases Receivable, Gross, Total | 4,376,204 | 4,401,410 | |
31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 30,912 | ||
60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 9,480 | ||
Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 779 | ||
Commercial Portfolio | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 41,274 | 28,889 | |
Loans and Leases Receivable, Gross, Total | 2,808,420 | 2,790,422 | |
Commercial Portfolio | Commercial | |||
Aging Status of recorded investment | |||
Past Due | 22,554 | ||
Total | 2,767,146 | ||
Current | 2,744,592 | ||
Loans and Leases Receivable, Gross, Total | $ 1,056,986 | ||
Commercial Portfolio | Commercial | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 18,002 | ||
Commercial Portfolio | Commercial | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 4,397 | ||
Commercial Portfolio | Commercial | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 155 | ||
Commercial Portfolio | Commercial real estate | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 1,528,119 | ||
Commercial Portfolio | Constructions | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 209,551 | ||
Construction And Land Development Segment Portfolio [Member] | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 208,361 | 208,733 | |
Residential real estate: | Residential real estate | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 570,882 | ||
Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 1,567,784 | ||
Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 14,942 | ||
Consumer | Consumer | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 710,646 | ||
Lease financing | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 346,366 | 332,581 | |
Lease financing | Lease financing | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | $ 332,581 | ||
Commercial | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 1,948 | 1,492 | |
Loans and Leases Receivable, Gross, Total | 649,403 | 628,056 | |
Commercial | Commercial | |||
Aging Status of recorded investment | |||
Past Due | 712 | ||
Total | 647,455 | ||
Current | 646,743 | ||
Commercial | Commercial | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 214 | ||
Commercial | Commercial | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 498 | ||
Commercial | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 649,403 | 1,055,185 | |
Commercial real estate loans [Member] | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 1,526,504 | ||
Commercial Other | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 2,504 | 4,351 | |
Loans and Leases Receivable, Gross, Total | 443,376 | 427,129 | |
Commercial Other | Commercial | |||
Aging Status of recorded investment | |||
Past Due | 10,988 | ||
Total | 440,872 | ||
Current | 429,884 | ||
Commercial Other | Commercial | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 7,367 | ||
Commercial Other | Commercial | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 3,474 | ||
Commercial Other | Commercial | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 147 | ||
Commercial Other | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 443,376 | ||
Construction and land development | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 4,954 | 1,304 | |
Construction and land development | Constructions | |||
Aging Status of recorded investment | |||
Past Due | 2,574 | ||
Total | 203,407 | ||
Current | 200,833 | ||
Construction and land development | Constructions | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 2,410 | ||
Construction and land development | Constructions | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 156 | ||
Construction and land development | Constructions | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 8 | ||
Construction and land development | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 208,733 | ||
Commercial real estate non-owner occupied | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 9,639 | 10,915 | |
Loans and Leases Receivable, Gross, Total | 809,628 | 825,874 | |
Commercial real estate non-owner occupied | Commercial real estate | |||
Aging Status of recorded investment | |||
Past Due | 7,930 | ||
Total | 799,989 | ||
Current | 792,059 | ||
Commercial real estate non-owner occupied | Commercial real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 7,754 | ||
Commercial real estate non-owner occupied | Commercial real estate | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 176 | ||
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 809,628 | ||
Commercial real estate owner occupied | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 11,672 | 4,396 | |
Loans and Leases Receivable, Gross, Total | 471,360 | 464,601 | |
Commercial real estate owner occupied | Commercial real estate | |||
Aging Status of recorded investment | |||
Past Due | 242 | ||
Total | 459,688 | ||
Current | 459,446 | ||
Commercial real estate owner occupied | Commercial real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 149 | ||
Commercial real estate owner occupied | Commercial real estate | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 93 | ||
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 471,360 | ||
Multi-family | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 10,557 | 6,231 | |
Loans and Leases Receivable, Gross, Total | 142,770 | 146,795 | |
Multi-family | Commercial real estate | |||
Aging Status of recorded investment | |||
Total | 132,213 | ||
Current | 132,213 | ||
Multi-family | Commercial Real Estate Portfolio Segment [Member] | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 142,770 | ||
Farmland | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 200 | ||
Loans and Leases Receivable, Gross, Total | 83,522 | 89,234 | |
Farmland | Commercial real estate | |||
Aging Status of recorded investment | |||
Past Due | 108 | ||
Total | 83,522 | ||
Current | 83,414 | ||
Farmland | Commercial real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 108 | ||
Farmland | Commercial Real Estate Portfolio Segment [Member] | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 83,522 | ||
Residential real estate | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 8,414 | 6,140 | |
Loans and Leases Receivable, Gross, Total | 441,495 | 456,107 | |
Residential real estate | Residential real estate | |||
Aging Status of recorded investment | |||
Past Due | 1,399 | ||
Total | 433,081 | ||
Current | 431,682 | ||
Residential real estate | Residential real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 1,151 | ||
Residential real estate | Residential real estate | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 248 | ||
Residential real estate | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 441,495 | 568,291 | |
Residential real estate | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 9,451 | ||
Other residential | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 2,289 | 1,656 | |
Loans and Leases Receivable, Gross, Total | 106,519 | 112,184 | |
Other residential | Residential real estate | |||
Aging Status of recorded investment | |||
Past Due | 888 | ||
Total | 104,230 | ||
Current | 103,342 | ||
Other residential | Residential real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 888 | ||
Other residential | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 106,519 | ||
Other residential | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 2,828 | ||
Consumer Loan [Member] | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 480 | 341 | |
Loans and Leases Receivable, Gross, Total | 85,162 | 100,732 | |
Consumer Loan [Member] | Consumer | |||
Aging Status of recorded investment | |||
Past Due | 432 | ||
Total | 84,682 | ||
Current | 84,250 | ||
Consumer Loan [Member] | Consumer | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 357 | ||
Consumer Loan [Member] | Consumer | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 75 | ||
Consumer Loan [Member] | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 85,162 | 710,116 | |
Consumer Loan [Member] | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 512 | ||
Consumer Other | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 588,242 | 609,384 | |
Consumer Other | Consumer | |||
Aging Status of recorded investment | |||
Past Due | 8,976 | ||
Total | 588,242 | ||
Current | 579,266 | ||
Consumer Other | Consumer | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 4,913 | ||
Consumer Other | Consumer | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 4,063 | ||
Consumer Other | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 588,242 | ||
Lease financing | |||
Aging Status of recorded investment | |||
Nonaccrual Loans | 1,775 | 1,375 | |
Lease financing | Lease financing | |||
Aging Status of recorded investment | |||
Past Due | 6,922 | ||
Total | 344,591 | ||
Current | 337,669 | ||
Lease financing | Lease financing | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 5,601 | ||
Lease financing | Lease financing | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 945 | ||
Lease financing | Lease financing | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 376 | ||
Lease financing | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 346,366 | 332,581 | |
Lease financing | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | $ 2,151 | ||
Non-PCI loans | |||
Aging Status of recorded investment | |||
Past Due | 30,239 | ||
Total | 4,320,298 | ||
Current | 4,290,059 | ||
Non-PCI loans | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 19,416 | ||
Non-PCI loans | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 10,460 | ||
Non-PCI loans | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 363 | ||
Non-PCI loans | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 2,761,560 | ||
Non-PCI loans | Commercial Portfolio | Commercial | |||
Aging Status of recorded investment | |||
Past Due | 8,996 | ||
Total | 1,046,264 | ||
Current | 1,037,268 | ||
Non-PCI loans | Commercial Portfolio | Commercial | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 5,910 | ||
Non-PCI loans | Commercial Portfolio | Commercial | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 3,086 | ||
Non-PCI loans | Commercial Portfolio | Commercial real estate | |||
Aging Status of recorded investment | |||
Past Due | 3,294 | ||
Total | 1,484,655 | ||
Current | 1,481,361 | ||
Non-PCI loans | Commercial Portfolio | Commercial real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 2,895 | ||
Non-PCI loans | Commercial Portfolio | Commercial real estate | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 399 | ||
Non-PCI loans | Commercial Portfolio | Constructions | |||
Aging Status of recorded investment | |||
Past Due | 1,611 | ||
Total | 201,752 | ||
Current | 200,141 | ||
Non-PCI loans | Commercial Portfolio | Constructions | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 1,539 | ||
Non-PCI loans | Commercial Portfolio | Constructions | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 72 | ||
Non-PCI loans | Other loan portfolio | Residential real estate | |||
Aging Status of recorded investment | |||
Past Due | 2,294 | ||
Total | 547,858 | ||
Current | 545,564 | ||
Non-PCI loans | Other loan portfolio | Residential real estate | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 588 | ||
Non-PCI loans | Other loan portfolio | Residential real estate | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 1,561 | ||
Non-PCI loans | Other loan portfolio | Residential real estate | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 145 | ||
Non-PCI loans | Other loan portfolio | Consumer | |||
Aging Status of recorded investment | |||
Past Due | 10,855 | ||
Total | 708,563 | ||
Current | 697,708 | ||
Non-PCI loans | Other loan portfolio | Consumer | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 6,701 | ||
Non-PCI loans | Other loan portfolio | Consumer | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 4,154 | ||
Non-PCI loans | Other loan portfolio | Lease financing | |||
Aging Status of recorded investment | |||
Past Due | 3,189 | ||
Total | 331,206 | ||
Current | 328,017 | ||
Non-PCI loans | Other loan portfolio | Lease financing | 31-59 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 1,783 | ||
Non-PCI loans | Other loan portfolio | Lease financing | 60-89 Days Past Due | |||
Aging Status of recorded investment | |||
Past Due | 1,188 | ||
Non-PCI loans | Other loan portfolio | Lease financing | Accruing Loans past Due 90 Days or More | |||
Aging Status of recorded investment | |||
Past Due | 218 | ||
Non-PCI loans | Commercial | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 1,052,107 | ||
Non-PCI loans | Commercial real estate loans [Member] | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 1,506,397 | ||
Non-PCI loans | Construction and land development | Commercial Portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 203,056 | ||
Non-PCI loans | Residential real estate | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 555,654 | ||
Non-PCI loans | Residential real estate | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 9,024 | ||
Non-PCI loans | Consumer Loan [Member] | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 708,904 | ||
Non-PCI loans | Consumer Loan [Member] | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 376 | ||
Non-PCI loans | Consumer Other | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 1,597,139 | ||
Non-PCI loans | Consumer Other | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 10,993 | ||
Non-PCI loans | Lease financing | Other loan portfolio | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | 332,581 | ||
Non-PCI loans | Lease financing | Other loan portfolio | Nonperforming | |||
Aging Status of recorded investment | |||
Loans and Leases Receivable, Gross, Total | $ 1,593 |
LOANS - TDRs by portfolio (Deta
LOANS - TDRs by portfolio (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Troubled debt restructuring | ||
Allowance for credit loss on troubled debt restructuring | $ 2,000,000 | |
Allowance for loan losses on TDRs | $ 760,000 | |
Unfunded commitments | 0 | 0 |
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 3,155,000 | 3,318,000 |
TDR's Nonaccrual | 9,842,000 | 12,418,000 |
Total | 12,997,000 | 15,736,000 |
Minimum | Performing | ||
Troubled debt restructuring | ||
TDRs, individually evaluated for impairment, threshold | 50,000 | |
Non-PCI loans | Commercial | Commercial Portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 60,000 | 435,000 |
TDR's Nonaccrual | 1,181,000 | 369,000 |
Total | 1,241,000 | 804,000 |
Non-PCI loans | Commercial real estate | Commercial Portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 1,692,000 | 1,720,000 |
TDR's Nonaccrual | 6,032,000 | 9,834,000 |
Total | 7,724,000 | 11,554,000 |
Non-PCI loans | Constructions | Commercial Portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 43,000 | 45,000 |
TDR's Nonaccrual | 163,000 | 167,000 |
Total | 206,000 | 212,000 |
Non-PCI loans | Residential real estate | Other loan portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 1,328,000 | 1,083,000 |
TDR's Nonaccrual | 2,414,000 | 1,993,000 |
Total | 3,742,000 | 3,076,000 |
Non-PCI loans | Consumer | Other loan portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 32,000 | 35,000 |
Total | 32,000 | 35,000 |
Non-PCI loans | Lease financing | Other loan portfolio | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Nonaccrual | 52,000 | 55,000 |
Total | $ 52,000 | $ 55,000 |
LOANS - TDRs by portfolio - res
LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan | |
Troubled debt restructurings: | ||
Number of loans | loan | 6 | 12 |
Pre-modification outstanding balance | $ 675 | $ 2,225 |
Post-modification outstanding balance | $ 670 | $ 2,092 |
Troubled debt restructurings that subsequently defaulted | ||
Number of loans | loan | 1 | |
Recorded balance | $ 43 | |
Commercial real estate | Commercial Portfolio | ||
Troubled debt restructurings: | ||
Number of loans | loan | 3 | |
Pre-modification outstanding balance | $ 1,924 | |
Post-modification outstanding balance | $ 1,838 | |
Constructions | Commercial Portfolio | ||
Troubled debt restructurings: | ||
Number of loans | loan | 1 | |
Pre-modification outstanding balance | $ 62 | |
Post-modification outstanding balance | $ 17 | |
Troubled debt restructurings that subsequently defaulted | ||
Number of loans | loan | 1 | |
Recorded balance | $ 43 | |
Residential real estate | Other loan portfolio | ||
Troubled debt restructurings: | ||
Number of loans | loan | 6 | 7 |
Pre-modification outstanding balance | $ 675 | $ 224 |
Post-modification outstanding balance | $ 670 | $ 222 |
Consumer | Other loan portfolio | ||
Troubled debt restructurings: | ||
Number of loans | loan | 1 | |
Pre-modification outstanding balance | $ 15 | |
Post-modification outstanding balance | $ 15 |
LOANS - Risk category (Details)
LOANS - Risk category (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Risk category | ||
Loans and Leases Receivable, Gross, Total | $ 4,376,204 | $ 4,401,410 |
Commercial Portfolio | ||
Risk category | ||
2020 | 156,080 | |
2019 | 645,130 | |
2018 | 311,336 | |
2017 | 351,471 | |
2016 | 324,030 | |
Prior | 633,334 | |
Revolving loans | 387,039 | |
Loans and Leases Receivable, Gross, Total | 2,808,420 | 2,790,422 |
Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
2020 | 153,940 | |
2019 | 629,064 | |
2018 | 301,960 | |
2017 | 341,509 | |
2016 | 301,066 | |
Prior | 545,165 | |
Revolving loans | 360,189 | |
Loans and Leases Receivable, Gross, Total | 2,632,893 | |
Commercial Portfolio | Special mention | ||
Risk category | ||
2020 | 1,097 | |
2019 | 8,234 | |
2018 | 5,024 | |
2017 | 3,100 | |
2016 | 3,528 | |
Prior | 26,574 | |
Revolving loans | 9,950 | |
Loans and Leases Receivable, Gross, Total | 57,507 | |
Commercial Portfolio | Substandard | ||
Risk category | ||
2020 | 982 | |
2019 | 1,652 | |
2018 | 3,169 | |
2017 | 6,575 | |
2016 | 7,247 | |
Prior | 38,198 | |
Revolving loans | 14,562 | |
Loans and Leases Receivable, Gross, Total | 72,385 | |
Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
2019 | 1,949 | |
2018 | 1,183 | |
2017 | 287 | |
2016 | 12,189 | |
Prior | 23,397 | |
Revolving loans | 2,269 | |
Loans and Leases Receivable, Gross, Total | 41,274 | |
Commercial Portfolio | Not graded | ||
Risk category | ||
2020 | 61 | |
2019 | 4,231 | |
Revolving loans | 69 | |
Loans and Leases Receivable, Gross, Total | 4,361 | |
Construction And Land Development Segment Portfolio [Member] | ||
Risk category | ||
2020 | 2,604 | |
2019 | 107,156 | |
2018 | 29,925 | |
2017 | 27,593 | |
2016 | 5,301 | |
Prior | 16,192 | |
Revolving loans | 19,590 | |
Loans and Leases Receivable, Gross, Total | 208,361 | 208,733 |
Construction And Land Development Segment Portfolio [Member] | Acceptable credit quality | ||
Risk category | ||
2020 | 2,604 | |
2019 | 102,813 | |
2018 | 29,700 | |
2017 | 25,183 | |
2016 | 5,151 | |
Prior | 9,022 | |
Revolving loans | 19,590 | |
Loans and Leases Receivable, Gross, Total | 194,063 | |
Construction And Land Development Segment Portfolio [Member] | Special mention | ||
Risk category | ||
2017 | 2,410 | |
Prior | 1,447 | |
Loans and Leases Receivable, Gross, Total | 3,857 | |
Construction And Land Development Segment Portfolio [Member] | Substandard | ||
Risk category | ||
2019 | 153 | |
2018 | 225 | |
Prior | 919 | |
Loans and Leases Receivable, Gross, Total | 1,297 | |
Construction And Land Development Segment Portfolio [Member] | Substandard - nonaccrual | ||
Risk category | ||
2016 | 150 | |
Prior | 4,804 | |
Loans and Leases Receivable, Gross, Total | 4,954 | |
Construction And Land Development Segment Portfolio [Member] | Not graded | ||
Risk category | ||
2019 | 4,190 | |
Loans and Leases Receivable, Gross, Total | 4,190 | |
Other loan portfolio | ||
Risk category | ||
2020 | 197,070 | |
2019 | 537,793 | |
2018 | 241,534 | |
2017 | 213,210 | |
2016 | 160,480 | |
Prior | 103,566 | |
Revolving loans | 114,131 | |
Loans and Leases Receivable, Gross, Total | 1,567,784 | |
Other loan portfolio | Performing | ||
Risk category | ||
2020 | 197,070 | |
2019 | 537,577 | |
2018 | 239,992 | |
2017 | 211,449 | |
2016 | 159,140 | |
Prior | 95,910 | |
Revolving loans | 111,704 | |
Loans and Leases Receivable, Gross, Total | 1,552,842 | |
Other loan portfolio | Nonperforming | ||
Risk category | ||
2019 | 216 | |
2018 | 1,542 | |
2017 | 1,761 | |
2016 | 1,340 | |
Prior | 7,656 | |
Revolving loans | 2,427 | |
Loans and Leases Receivable, Gross, Total | 14,942 | |
Lease financing | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 346,366 | 332,581 |
Non-PCI loans | Commercial Portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 2,761,560 | |
Non-PCI loans | Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 2,598,834 | |
Non-PCI loans | Commercial Portfolio | Special mention | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 38,305 | |
Non-PCI loans | Commercial Portfolio | Substandard | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 92,442 | |
Non-PCI loans | Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 28,889 | |
Non-PCI loans | Commercial Portfolio | Not graded | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 3,090 | |
Commercial | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 649,403 | 628,056 |
Commercial | Commercial Portfolio | ||
Risk category | ||
2020 | 37,189 | |
2019 | 119,394 | |
2018 | 55,110 | |
2017 | 80,126 | |
2016 | 39,956 | |
Prior | 73,742 | |
Revolving loans | 243,886 | |
Loans and Leases Receivable, Gross, Total | 649,403 | 1,055,185 |
Commercial | Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
2020 | 36,244 | |
2019 | 118,192 | |
2018 | 50,709 | |
2017 | 79,205 | |
2016 | 39,003 | |
Prior | 64,281 | |
Revolving loans | 226,404 | |
Loans and Leases Receivable, Gross, Total | 614,038 | |
Commercial | Commercial Portfolio | Special mention | ||
Risk category | ||
2020 | 945 | |
2019 | 379 | |
2018 | 3,643 | |
2017 | 34 | |
2016 | 431 | |
Prior | 4,314 | |
Revolving loans | 7,795 | |
Loans and Leases Receivable, Gross, Total | 17,541 | |
Commercial | Commercial Portfolio | Substandard | ||
Risk category | ||
2019 | 823 | |
2018 | 692 | |
2017 | 849 | |
2016 | 89 | |
Prior | 4,633 | |
Revolving loans | 8,790 | |
Loans and Leases Receivable, Gross, Total | 15,876 | |
Commercial | Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
2018 | 66 | |
2017 | 38 | |
2016 | 433 | |
Prior | 514 | |
Revolving loans | 897 | |
Loans and Leases Receivable, Gross, Total | 1,948 | |
Commercial | Non-PCI loans | Commercial Portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,052,107 | |
Commercial | Non-PCI loans | Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,005,442 | |
Commercial | Non-PCI loans | Commercial Portfolio | Special mention | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 17,435 | |
Commercial | Non-PCI loans | Commercial Portfolio | Substandard | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 23,387 | |
Commercial | Non-PCI loans | Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 5,843 | |
Commercial real estate loans [Member] | Commercial Portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,526,504 | |
Commercial real estate loans [Member] | Non-PCI loans | Commercial Portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,506,397 | |
Commercial real estate loans [Member] | Non-PCI loans | Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,398,400 | |
Commercial real estate loans [Member] | Non-PCI loans | Commercial Portfolio | Special mention | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 18,450 | |
Commercial real estate loans [Member] | Non-PCI loans | Commercial Portfolio | Substandard | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 67,805 | |
Commercial real estate loans [Member] | Non-PCI loans | Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 21,742 | |
Commercial Other | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 443,376 | 427,129 |
Commercial Other | Commercial Portfolio | ||
Risk category | ||
2020 | 63,824 | |
2019 | 200,259 | |
2018 | 72,151 | |
2017 | 1,081 | |
2016 | 647 | |
Prior | 1,270 | |
Revolving loans | 104,144 | |
Loans and Leases Receivable, Gross, Total | 443,376 | |
Commercial Other | Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
2020 | 63,535 | |
2019 | 197,784 | |
2018 | 69,918 | |
2017 | 1,046 | |
2016 | 537 | |
Prior | 1,253 | |
Revolving loans | 96,875 | |
Loans and Leases Receivable, Gross, Total | 430,948 | |
Commercial Other | Commercial Portfolio | Special mention | ||
Risk category | ||
2020 | 152 | |
2019 | 1,188 | |
2018 | 825 | |
2017 | 5 | |
2016 | 15 | |
Revolving loans | 2,050 | |
Loans and Leases Receivable, Gross, Total | 4,235 | |
Commercial Other | Commercial Portfolio | Substandard | ||
Risk category | ||
2020 | 76 | |
2019 | 58 | |
2018 | 572 | |
2017 | 30 | |
2016 | 46 | |
Prior | 5 | |
Revolving loans | 4,772 | |
Loans and Leases Receivable, Gross, Total | 5,559 | |
Commercial Other | Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
2019 | 1,229 | |
2018 | 836 | |
2016 | 49 | |
Prior | 12 | |
Revolving loans | 378 | |
Loans and Leases Receivable, Gross, Total | 2,504 | |
Commercial Other | Commercial Portfolio | Not graded | ||
Risk category | ||
2020 | 61 | |
Revolving loans | 69 | |
Loans and Leases Receivable, Gross, Total | 130 | |
Construction and land development | Commercial Portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 208,733 | |
Construction and land development | Non-PCI loans | Commercial Portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 203,056 | |
Construction and land development | Non-PCI loans | Commercial Portfolio | Acceptable credit quality | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 194,992 | |
Construction and land development | Non-PCI loans | Commercial Portfolio | Special mention | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 2,420 | |
Construction and land development | Non-PCI loans | Commercial Portfolio | Substandard | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,250 | |
Construction and land development | Non-PCI loans | Commercial Portfolio | Substandard - nonaccrual | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,304 | |
Construction and land development | Non-PCI loans | Commercial Portfolio | Not graded | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 3,090 | |
Commercial real estate non-owner occupied | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 809,628 | 825,874 |
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | ||
Risk category | ||
2020 | 22,322 | |
2019 | 129,667 | |
2018 | 85,074 | |
2017 | 131,460 | |
2016 | 151,988 | |
Prior | 279,090 | |
Revolving loans | 10,027 | |
Loans and Leases Receivable, Gross, Total | 809,628 | |
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | Acceptable credit quality | ||
Risk category | ||
2020 | 21,416 | |
2019 | 124,691 | |
2018 | 84,571 | |
2017 | 125,985 | |
2016 | 147,992 | |
Prior | 252,159 | |
Revolving loans | 9,777 | |
Loans and Leases Receivable, Gross, Total | 766,591 | |
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | Special mention | ||
Risk category | ||
2019 | 4,479 | |
2018 | 110 | |
2017 | 271 | |
2016 | 27 | |
Prior | 10,647 | |
Loans and Leases Receivable, Gross, Total | 15,534 | |
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | Substandard | ||
Risk category | ||
2020 | 906 | |
2018 | 282 | |
2017 | 5,204 | |
2016 | 474 | |
Prior | 10,707 | |
Revolving loans | 250 | |
Loans and Leases Receivable, Gross, Total | 17,823 | |
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | Substandard - nonaccrual | ||
Risk category | ||
2019 | 456 | |
2018 | 111 | |
2016 | 3,495 | |
Prior | 5,577 | |
Loans and Leases Receivable, Gross, Total | 9,639 | |
Commercial real estate non-owner occupied | Commercial Real Estate Portfolio Segment [Member] | Not graded | ||
Risk category | ||
2019 | 41 | |
Loans and Leases Receivable, Gross, Total | 41 | |
Commercial real estate owner occupied | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 471,360 | 464,601 |
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | ||
Risk category | ||
2020 | 27,644 | |
2019 | 61,645 | |
2018 | 38,281 | |
2017 | 66,612 | |
2016 | 83,079 | |
Prior | 188,417 | |
Revolving loans | 5,682 | |
Loans and Leases Receivable, Gross, Total | 471,360 | |
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | Acceptable credit quality | ||
Risk category | ||
2020 | 27,644 | |
2019 | 59,290 | |
2018 | 37,062 | |
2017 | 65,814 | |
2016 | 77,379 | |
Prior | 150,209 | |
Revolving loans | 4,084 | |
Loans and Leases Receivable, Gross, Total | 421,482 | |
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | Special mention | ||
Risk category | ||
2019 | 1,723 | |
2018 | 253 | |
2017 | 380 | |
2016 | 3,037 | |
Prior | 8,538 | |
Loans and Leases Receivable, Gross, Total | 13,931 | |
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | Substandard | ||
Risk category | ||
2019 | 368 | |
2018 | 796 | |
2017 | 169 | |
2016 | 2,630 | |
Prior | 19,708 | |
Revolving loans | 604 | |
Loans and Leases Receivable, Gross, Total | 24,275 | |
Commercial real estate owner occupied | Commercial Real Estate Portfolio Segment [Member] | Substandard - nonaccrual | ||
Risk category | ||
2019 | 264 | |
2018 | 170 | |
2017 | 249 | |
2016 | 33 | |
Prior | 9,962 | |
Revolving loans | 994 | |
Loans and Leases Receivable, Gross, Total | 11,672 | |
Multi-family | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 142,770 | 146,795 |
Multi-family | Commercial Real Estate Portfolio Segment [Member] | ||
Risk category | ||
2020 | 795 | |
2019 | 15,446 | |
2018 | 21,586 | |
2017 | 32,871 | |
2016 | 34,970 | |
Prior | 36,001 | |
Revolving loans | 1,101 | |
Loans and Leases Receivable, Gross, Total | 142,770 | |
Multi-family | Commercial Real Estate Portfolio Segment [Member] | Acceptable credit quality | ||
Risk category | ||
2020 | 795 | |
2019 | 15,248 | |
2018 | 21,586 | |
2017 | 32,871 | |
2016 | 22,933 | |
Prior | 32,045 | |
Revolving loans | 1,101 | |
Loans and Leases Receivable, Gross, Total | 126,579 | |
Multi-family | Commercial Real Estate Portfolio Segment [Member] | Special mention | ||
Risk category | ||
Prior | 1,348 | |
Loans and Leases Receivable, Gross, Total | 1,348 | |
Multi-family | Commercial Real Estate Portfolio Segment [Member] | Substandard | ||
Risk category | ||
2019 | 198 | |
2016 | 4,008 | |
Prior | 80 | |
Loans and Leases Receivable, Gross, Total | 4,286 | |
Multi-family | Commercial Real Estate Portfolio Segment [Member] | Substandard - nonaccrual | ||
Risk category | ||
2016 | 8,029 | |
Prior | 2,528 | |
Loans and Leases Receivable, Gross, Total | 10,557 | |
Farmland | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 83,522 | 89,234 |
Farmland | Commercial Real Estate Portfolio Segment [Member] | ||
Risk category | ||
2020 | 1,702 | |
2019 | 11,563 | |
2018 | 9,209 | |
2017 | 11,728 | |
2016 | 8,089 | |
Prior | 38,622 | |
Revolving loans | 2,609 | |
Loans and Leases Receivable, Gross, Total | 83,522 | |
Farmland | Commercial Real Estate Portfolio Segment [Member] | Acceptable credit quality | ||
Risk category | ||
2020 | 1,702 | |
2019 | 11,046 | |
2018 | 8,414 | |
2017 | 11,405 | |
2016 | 8,071 | |
Prior | 36,196 | |
Revolving loans | 2,358 | |
Loans and Leases Receivable, Gross, Total | 79,192 | |
Farmland | Commercial Real Estate Portfolio Segment [Member] | Special mention | ||
Risk category | ||
2019 | 465 | |
2018 | 193 | |
2016 | 18 | |
Prior | 280 | |
Revolving loans | 105 | |
Loans and Leases Receivable, Gross, Total | 1,061 | |
Farmland | Commercial Real Estate Portfolio Segment [Member] | Substandard | ||
Risk category | ||
2019 | 52 | |
2018 | 602 | |
2017 | 323 | |
Prior | 2,146 | |
Revolving loans | 146 | |
Loans and Leases Receivable, Gross, Total | 3,269 | |
Residential real estate | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 441,495 | 456,107 |
Residential real estate | Other loan portfolio | ||
Risk category | ||
2020 | 2,041 | |
2019 | 30,104 | |
2018 | 69,097 | |
2017 | 150,182 | |
2016 | 107,786 | |
Prior | 81,914 | |
Revolving loans | 371 | |
Loans and Leases Receivable, Gross, Total | 441,495 | 568,291 |
Residential real estate | Other loan portfolio | Performing | ||
Risk category | ||
2020 | 2,041 | |
2019 | 29,994 | |
2018 | 68,525 | |
2017 | 149,262 | |
2016 | 107,088 | |
Prior | 74,763 | |
Revolving loans | 371 | |
Loans and Leases Receivable, Gross, Total | 432,044 | |
Residential real estate | Other loan portfolio | Nonperforming | ||
Risk category | ||
2019 | 110 | |
2018 | 572 | |
2017 | 920 | |
2016 | 698 | |
Prior | 7,151 | |
Loans and Leases Receivable, Gross, Total | 9,451 | |
Residential real estate | Non-PCI loans | Other loan portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 555,654 | |
Residential real estate | Non-PCI loans | Other loan portfolio | Performing | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 546,630 | |
Residential real estate | Non-PCI loans | Other loan portfolio | Nonperforming | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 9,024 | |
Other residential | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 106,519 | 112,184 |
Other residential | Other loan portfolio | ||
Risk category | ||
2020 | 242 | |
2019 | 3,250 | |
2018 | 4,519 | |
2017 | 3,157 | |
2016 | 1,880 | |
Prior | 2,945 | |
Revolving loans | 90,526 | |
Loans and Leases Receivable, Gross, Total | 106,519 | |
Other residential | Other loan portfolio | Performing | ||
Risk category | ||
2020 | 242 | |
2019 | 3,235 | |
2018 | 4,495 | |
2017 | 2,999 | |
2016 | 1,872 | |
Prior | 2,746 | |
Revolving loans | 88,102 | |
Loans and Leases Receivable, Gross, Total | 103,691 | |
Other residential | Other loan portfolio | Nonperforming | ||
Risk category | ||
2019 | 15 | |
2018 | 24 | |
2017 | 158 | |
2016 | 8 | |
Prior | 199 | |
Revolving loans | 2,424 | |
Loans and Leases Receivable, Gross, Total | 2,828 | |
Consumer Loan [Member] | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 85,162 | 100,732 |
Consumer Loan [Member] | Other loan portfolio | ||
Risk category | ||
2020 | 2,970 | |
2019 | 19,582 | |
2018 | 23,703 | |
2017 | 14,809 | |
2016 | 11,232 | |
Prior | 9,931 | |
Revolving loans | 2,935 | |
Loans and Leases Receivable, Gross, Total | 85,162 | 710,116 |
Consumer Loan [Member] | Other loan portfolio | Performing | ||
Risk category | ||
2020 | 2,970 | |
2019 | 19,553 | |
2018 | 23,622 | |
2017 | 14,689 | |
2016 | 11,131 | |
Prior | 9,753 | |
Revolving loans | 2,932 | |
Loans and Leases Receivable, Gross, Total | 84,650 | |
Consumer Loan [Member] | Other loan portfolio | Nonperforming | ||
Risk category | ||
2019 | 29 | |
2018 | 81 | |
2017 | 120 | |
2016 | 101 | |
Prior | 178 | |
Revolving loans | 3 | |
Loans and Leases Receivable, Gross, Total | 512 | |
Consumer Loan [Member] | Non-PCI loans | Other loan portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 708,904 | |
Consumer Loan [Member] | Non-PCI loans | Other loan portfolio | Performing | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 708,528 | |
Consumer Loan [Member] | Non-PCI loans | Other loan portfolio | Nonperforming | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 376 | |
Consumer Other | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 588,242 | 609,384 |
Consumer Other | Other loan portfolio | ||
Risk category | ||
2020 | 146,912 | |
2019 | 337,739 | |
2018 | 53,885 | |
2017 | 12,215 | |
2016 | 14,943 | |
Prior | 2,249 | |
Revolving loans | 20,299 | |
Loans and Leases Receivable, Gross, Total | 588,242 | |
Consumer Other | Other loan portfolio | Performing | ||
Risk category | ||
2020 | 146,912 | |
2019 | 337,739 | |
2018 | 53,885 | |
2017 | 12,215 | |
2016 | 14,943 | |
Prior | 2,249 | |
Revolving loans | 20,299 | |
Loans and Leases Receivable, Gross, Total | 588,242 | |
Consumer Other | Non-PCI loans | Other loan portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,597,139 | |
Consumer Other | Non-PCI loans | Other loan portfolio | Performing | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 1,586,146 | |
Consumer Other | Non-PCI loans | Other loan portfolio | Nonperforming | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 10,993 | |
Lease financing | Other loan portfolio | ||
Risk category | ||
2020 | 44,905 | |
2019 | 147,118 | |
2018 | 90,330 | |
2017 | 32,847 | |
2016 | 24,639 | |
Prior | 6,527 | |
Loans and Leases Receivable, Gross, Total | 346,366 | 332,581 |
Lease financing | Other loan portfolio | Performing | ||
Risk category | ||
2020 | 44,905 | |
2019 | 147,056 | |
2018 | 89,465 | |
2017 | 32,284 | |
2016 | 24,106 | |
Prior | 6,399 | |
Loans and Leases Receivable, Gross, Total | 344,215 | |
Lease financing | Other loan portfolio | Nonperforming | ||
Risk category | ||
2019 | 62 | |
2018 | 865 | |
2017 | 563 | |
2016 | 533 | |
Prior | 128 | |
Loans and Leases Receivable, Gross, Total | $ 2,151 | |
Lease financing | Non-PCI loans | Other loan portfolio | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 332,581 | |
Lease financing | Non-PCI loans | Other loan portfolio | Performing | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | 330,988 | |
Lease financing | Non-PCI loans | Other loan portfolio | Nonperforming | ||
Risk category | ||
Loans and Leases Receivable, Gross, Total | $ 1,593 |
PREMISES AND EQUIPMENT, NET (De
PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment gross | $ 128,809 | $ 128,265 | |
Accumulated depreciation | (38,691) | (37,210) | |
Premises and equipment, net | 90,118 | 91,055 | |
Depreciation | 1,677 | $ 1,601 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment gross | 19,123 | 19,123 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment gross | 77,028 | 77,296 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment gross | $ 32,658 | $ 31,846 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
LEASES | |||
Options to extend the leases | true | ||
Renewal term of lease | 5 years | ||
Operating lease right-of-use asset | $ 14,078 | $ 14,224 | |
Operating lease liabilities | 15,048 | 15,369 | |
Operating lease cost | 781 | $ 708 | |
Operating cash flows related to leases | 945 | 741 | |
Right-of-use assets obtained in exchange for lease obligations | $ 511 | $ 10,677 | |
Weighted average remaining lease term | 7 years 9 months 29 days | 6 years | |
Weighted average discount rate | 2.97% | 3.12% | |
Projected minimum rental payments | |||
2020 remaining | $ 2,060 | ||
2021 | 2,966 | ||
2022 | 2,808 | ||
2023 | 2,209 | ||
2024 | 1,356 | ||
Thereafter | 5,588 | ||
Total future minimum lease payments | 16,987 | ||
Less imputed interest | (1,939) | ||
Total operating lease liabilities | $ 15,048 | $ 15,369 | |
Minimum | |||
LEASES | |||
Remaining lease terms | 3 months | ||
Maximum | |||
LEASES | |||
Remaining lease terms | 13 years |
LOAN SERVICING RIGHTS (Details)
LOAN SERVICING RIGHTS (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commercial FHA Mortgage Loans | ||
MORTGAGE SERVICING RIGHTS | ||
Principal balances of loans serviced for others | $ 4,010 | $ 4,080 |
Residential mortgage loans | ||
MORTGAGE SERVICING RIGHTS | ||
Principal balances of loans serviced for others | $ 365.5 | $ 381.6 |
LOAN SERVICING RIGHTS - Changes
LOAN SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage servicing rights: | ||||
Balance, beginning of period | $ 57,637 | $ 56,252 | $ 56,252 | |
Impairment of loan servicing rights | 8,468 | 25 | ||
Balance, end of period | 56,909 | 55,787 | 57,637 | |
Valuation allowances: | ||||
Balance, beginning of period | 4,944 | 2,805 | 2,805 | |
Additions | 8,468 | 25 | ||
Balance, end of period | 13,412 | 2,830 | 4,944 | |
Mortgage servicing rights, net | 43,497 | 52,957 | ||
Fair Value | 43,497 | 52,957 | $ 52,693 | $ 53,447 |
Loss on mortgage servicing rights held for sale | $ (496) | |||
Prepayment Rate | 8.38% | 8.20% | ||
Discount Rate | 11.43% | 11.02% | ||
Loan servicing rights | $ 44,566 | $ 53,824 | ||
Mortgage servicing rights held for sale | 1,460 | 1,972 | ||
Commercial FHA Mortgage Loans | ||||
Mortgage servicing rights: | ||||
Originated servicing | 213 | |||
Amortization | (728) | (678) | ||
Impairment of loan servicing rights | (8,500) | $ (25) | ||
Valuation allowances: | ||||
Mortgage Loans Serviced For Others | 4,010,000 | 4,080,000 | ||
Residential mortgage loans | ||||
Valuation allowances: | ||||
Mortgage Loans Serviced For Others | 365,500 | 381,600 | ||
Mortgage servicing rights held for sale | 1,500 | 2,000 | ||
SBA servicing rights | ||||
Valuation allowances: | ||||
Mortgage Loans Serviced For Others | 47,800 | 48,200 | ||
Loan servicing rights | $ 1,100 | $ 1,100 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | ||
Goodwill | $ 172,796 | $ 171,758 |
Banking | ||
Goodwill [Line Items] | ||
Goodwill | 157,158 | 156,120 |
Commercial FHA origination and servicing | ||
Goodwill [Line Items] | ||
Goodwill | 10,892 | 10,892 |
Wealth management | ||
Goodwill [Line Items] | ||
Goodwill | $ 4,746 | $ 4,746 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-lived intangible assets | |||
Gross Carrying Amount | $ 71,083 | $ 71,083 | |
Accumulated Amortization | (37,959) | (36,197) | |
Total | 33,124 | 34,886 | |
Amortization of intangible assets | 1,762 | $ 1,810 | |
Core deposits | |||
Finite-lived intangible assets | |||
Gross Carrying Amount | 57,012 | 57,012 | |
Accumulated Amortization | (32,131) | (30,674) | |
Total | 24,881 | 26,338 | |
Customer relationship | |||
Finite-lived intangible assets | |||
Gross Carrying Amount | 14,071 | 14,071 | |
Accumulated Amortization | (5,828) | (5,523) | |
Total | $ 8,243 | $ 8,548 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | |||
Notional amount, asset derivatives | $ 436,875,000 | $ 443,706,000 | |
Fair value of asset derivatives | 4,305,000 | 3,350,000 | |
Net gains (losses) recognized on derivative instruments | 626,000 | $ 1,300,000 | |
Interest rate lock commitments | |||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | |||
Notional amount, asset derivatives | 239,119,000 | 222,654,000 | |
Fair value of asset derivatives | 4,305,000 | 3,350,000 | |
Forward commitments to sell mortgage-backed securities | |||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | |||
Notional amount, asset derivatives | 197,756,000 | 221,052,000 | |
Notional amount, liability derivatives | 28,266,000 | ||
Fair value of liability derivatives | 329,000 | ||
Interest rate swap contracts | |||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | |||
Notional amount of interest rate swaps | 8,800,000 | 9,000,000 | |
Interest rate swap contracts | Other assets | |||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | |||
Fair value of asset derivatives | $ 888,000 | $ 306,000 |
DERIVATIVE INSTRUMENTS - Intere
DERIVATIVE INSTRUMENTS - Interest Rate Swap Agreements (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative disclosures | ||
Fair value of asset derivatives | $ 4,305,000 | $ 3,350,000 |
LIBOR | ||
Derivative disclosures | ||
Variable interest rate (as a percent) | 435.00% | |
Interest rate swap contracts | ||
Derivative disclosures | ||
Notional amount of interest rate swaps | $ 8,800,000 | 9,000,000 |
Interest rate swap contracts | Other assets | ||
Derivative disclosures | ||
Fair value of asset derivatives | $ 888,000 | $ 306,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Classification of deposits | ||
Noninterest-bearing demand | $ 1,052,726 | $ 1,019,472 |
Interest-bearing: | ||
Checking | 1,425,022 | 1,342,788 |
Money market | 849,642 | 787,662 |
Savings | 534,457 | 522,456 |
Time | 788,793 | 871,876 |
Total deposits | $ 4,650,640 | $ 4,544,254 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Outstanding at period-end | $ 43,578 | $ 82,029 |
Average amount outstanding | 55,616 | 121,168 |
Maximum amount outstanding at any month end | $ 52,013 | $ 138,907 |
Weighted average interest rate: | ||
During period | 0.73% | 0.69% |
End of period | 0.20% | 0.67% |
Short-Term Borrowings | ||
Investment securities pledged/collateralized for secured borrowings | $ 46,600 | $ 87,400 |
Line of credit | 0 | 0 |
Federal funds lines of credit | 20,000 | |
Commercial real estate | ||
Short-Term Borrowings | ||
Loans and Leases Receivable, Gross, Carrying Amount, Commercial | 19,900 | 24,300 |
Federal Reserve Discount Window | ||
Short-Term Borrowings | ||
Line of credit | $ 17,700 | $ 21,600 |
FHLB ADVANCES AND OTHER BORRO_3
FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 593,089 | $ 493,311 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
Line of Credit Facility, Maximum Borrowing Capacity | 20,000 | |
FHLB advances, collateral for mortgage and home equity line of credit loans | $ 1,950,000 | 1,940,000 |
LIBOR | ||
Federal Home Loan Bank Advances, Interest Rate Information | ||
Basis spread on variable rate | 435.00% | |
Series G Preferred Stock | ||
Federal Home Loan Bank Advances, Interest Rate Information | ||
Preferred stock, shares issued | 181 | |
Preferred stock, par value | $ 1,000 | |
Midland States Bancorp, Inc | Series G Preferred Stock | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Long term debt | $ 181 | 181 |
Midland States Bank | Fixed Rate Term Loan | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | 592,908 | 493,130 |
Midland States Bank | Fixed rate, fixed term maturing through June 2023 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 27,800 | $ 28,000 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
FHLB advances interest rate | 2.56% | 2.56% |
Midland States Bank | Putable fixed rate loan maturing through August 2021 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 565,000 | $ 465,000 |
Federal Home Loan Bank Advances, Interest Rate Information | ||
FHLB advances interest rate | 2.02% | 2.34% |
SUBORDINATED DEBT (Details)
SUBORDINATED DEBT (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Subordinated Borrowing [Line Items] | ||
Carrying amount | $ 169,505,000 | $ 176,653,000 |
Common stock | 234,000 | 244,000 |
Repayments of Subordinated Debt | $ 7,250,000 | |
LIBOR | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate (as a percent) | 435.00% | |
Subordinated Debt $38,325 Maturing June 18 2025 | ||
Subordinated Borrowing [Line Items] | ||
Fixed interest rate | 6.00% | |
Carrying amount | $ 31,057,000 | 38,273,000 |
Duration with fixed interest rate | 5 years | |
Face Amount | $ 31,075,000 | 38,325,000 |
Repurchase of debt | 7,300,000 | |
Losses from debt repurchase | $ (193,000) | |
Subordinated Debt $38,325 Maturing June 18 2025 | LIBOR | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate (as a percent) | 4.35% | |
Subordinated Debt $550 Maturing June 18 2025 | ||
Subordinated Borrowing [Line Items] | ||
Fixed interest rate | 6.50% | |
Carrying amount | $ 545,000 | 544,000 |
Face Amount | $ 550,000 | |
Subordinated debt $40,000 maturing October 15, 2027 | ||
Subordinated Borrowing [Line Items] | ||
Fixed interest rate | 6.25% | |
Carrying amount | $ 39,513,000 | 39,496,000 |
Face Amount | $ 40,000,000 | |
Subordinated debt $40,000 maturing October 15, 2027 | LIBOR | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate (as a percent) | 4.23% | |
Subordinate debt, $72,750 maturing September 30, 2029 | ||
Subordinated Borrowing [Line Items] | ||
Fixed interest rate | 5.00% | |
Carrying amount | $ 71,596,000 | 71,549,000 |
Face Amount | $ 72,750,000 | |
Subordinate debt, $72,750 maturing September 30, 2029 | Three month SOFR | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate (as a percent) | 3.61% | |
Subordinate debt, $27,250 maturing September 30, 2034 | ||
Subordinated Borrowing [Line Items] | ||
Fixed interest rate | 5.50% | |
Carrying amount | $ 26,794,000 | $ 26,791,000 |
Face Amount | $ 27,250,000 | |
Subordinate debt, $27,250 maturing September 30, 2034 | Three month SOFR | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate (as a percent) | 4.05% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 89,603 | 97,628 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 1,549 | $ 13,982 |
Preferred dividends declared | (82) | |
Preferred stock, premium amortization | 48 | |
Net income available to common shareholders | 1,549 | 13,948 |
Common shareholder dividends | (6,510) | (5,776) |
Unvested restricted stock award dividends | (65) | (47) |
Undistributed earnings to unvested restricted stock awards | (65) | |
Undistributed (loss) earnings to common shareholders | (5,026) | 8,060 |
Basic | ||
Distributed earnings to common shareholders | 6,510 | 5,776 |
Undistributed (loss) earnings to common shareholders | (5,026) | 8,060 |
Total common shareholders earnings, basic | 1,484 | 13,836 |
Diluted | ||
Distributed earnings to common shareholders | 6,510 | 5,776 |
Undistributed (loss) earnings to common shareholders | (5,026) | 8,060 |
Total common shareholders earnings | 1,484 | 13,836 |
Add back: | ||
Total common shareholders earnings, diluted | $ 1,484 | $ 13,836 |
Weighted average common shares outstanding, basic (In shares) | 24,433,975 | 23,998,119 |
Weighted average common shares outstanding, diluted (In shares) | 24,538,002 | 24,204,661 |
Basic earnings per common share (In dollars per share) | $ 0.06 | $ 0.58 |
Diluted earnings per common share (In dollars per share) | $ 0.06 | $ 0.57 |
Options and warrants | ||
Add back: | ||
Options | 104,027 | 206,542 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Assets | |||
Investment securities available for sale | $ 656,254 | $ 649,433 | |
Equity securities recorded at fair value | 5,640 | 5,621 | |
Loans held for sale | 113,852 | 16,431 | |
Assets measured at fair value on a non-recurring basis: | |||
Mortgage servicing rights held for sale | 1,460 | 1,972 | |
Losses recognized on assets measured on non-recurring basis | |||
Loans servicing rights | 8,468 | $ 25 | |
Loss on mortgage servicing rights held for sale | 496 | ||
Impairment of assets held for sale | 642 | ||
U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale | 47,357 | 60,020 | |
Agency mortgage-backed securities | |||
Assets | |||
Investment securities available for sale | 326,700 | 324,974 | |
Non-agency mortgage-backed securities | |||
Assets | |||
Investment securities available for sale | 27,281 | 17,148 | |
State and municipal securities | |||
Assets | |||
Investment securities available for sale | 116,094 | 124,555 | |
Corporate Securities | |||
Assets | |||
Investment securities available for sale | 138,822 | 122,736 | |
Recurring member | |||
Assets | |||
Loans held for sale | 113,852 | 16,431 | |
Total Assets | 780,939 | 675,141 | |
Recurring member | U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale | 47,357 | 60,020 | |
Recurring member | Agency mortgage-backed securities | |||
Assets | |||
Investment securities available for sale | 326,700 | 324,974 | |
Recurring member | Non-agency mortgage-backed securities | |||
Assets | |||
Investment securities available for sale | 27,281 | 17,148 | |
Recurring member | State and municipal securities | |||
Assets | |||
Investment securities available for sale | 116,094 | 124,555 | |
Recurring member | Corporate Securities | |||
Assets | |||
Investment securities available for sale | 138,822 | 122,736 | |
Recurring member | Corporate Securities | |||
Assets | |||
Equity securities recorded at fair value | 5,640 | 5,621 | |
Recurring member | Interest rate lock commitments | |||
Assets | |||
Derivative Assets | 4,305 | 3,350 | |
Recurring member | Interest rate swap contracts | |||
Assets | |||
Derivative Assets | 888 | 306 | |
Liabilities | |||
Derivative liability | 888 | 306 | |
Recurring member | Level 2 | |||
Assets | |||
Loans held for sale | 113,852 | 16,431 | |
Total Assets | 780,014 | 674,186 | |
Recurring member | Level 2 | U.S. government sponsored entities and U.S. agency securities | |||
Assets | |||
Investment securities available for sale | 47,357 | 60,020 | |
Recurring member | Level 2 | Agency mortgage-backed securities | |||
Assets | |||
Investment securities available for sale | 326,700 | 324,974 | |
Recurring member | Level 2 | Non-agency mortgage-backed securities | |||
Assets | |||
Investment securities available for sale | 27,281 | 17,148 | |
Recurring member | Level 2 | State and municipal securities | |||
Assets | |||
Investment securities available for sale | 116,094 | 124,555 | |
Recurring member | Level 2 | Corporate Securities | |||
Assets | |||
Investment securities available for sale | 137,897 | 121,781 | |
Recurring member | Level 2 | Corporate Securities | |||
Assets | |||
Equity securities recorded at fair value | 5,640 | 5,621 | |
Recurring member | Level 2 | Interest rate lock commitments | |||
Assets | |||
Derivative Assets | 4,305 | 3,350 | |
Recurring member | Level 2 | Interest rate swap contracts | |||
Assets | |||
Derivative Assets | 888 | 306 | |
Liabilities | |||
Derivative liability | 888 | 306 | |
Recurring member | Level 3 | |||
Assets | |||
Total Assets | 925 | 955 | |
Recurring member | Level 3 | Corporate Securities | |||
Assets | |||
Investment securities available for sale | 925 | 955 | |
Non recurring member | |||
Assets measured at fair value on a non-recurring basis: | |||
Loan servicing rights | 44,566 | 53,824 | |
Mortgage servicing rights held for sale | 1,460 | 1,972 | |
Nonperforming loans | 15,972 | 14,693 | |
Other real estate owned | 909 | ||
Assets held for sale | 3,790 | 3,974 | |
Losses recognized on assets measured on non-recurring basis | |||
Loans servicing rights | 8,468 | 25 | |
Loss on mortgage servicing rights held for sale | 496 | ||
Nonperforming loans | 12,919 | 981 | |
Other real estate owned | 605 | 16 | |
Impairment of assets held for sale | 146 | ||
Total loss on assets measured on a nonrecurring basis | 22,634 | $ 1,022 | |
Non recurring member | Level 2 | |||
Assets measured at fair value on a non-recurring basis: | |||
Nonperforming loans | 15,450 | 12,518 | |
Other real estate owned | 909 | ||
Assets held for sale | 3,790 | 3,974 | |
Non recurring member | Level 3 | |||
Assets measured at fair value on a non-recurring basis: | |||
Loan servicing rights | 44,566 | 53,824 | |
Mortgage servicing rights held for sale | 1,460 | 1,972 | |
Nonperforming loans | $ 522 | $ 2,175 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - Corporate Securities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of period | $ 955 | $ 1,923 |
Total realized in earnings | 2 | 22 |
Total unrealized in other comprehensive income | (30) | 7 |
Net settlements (principal and interest) | (2) | (22) |
Balance, end of period | $ 925 | $ 1,930 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 656,254 | $ 649,433 |
Non recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 44,566 | 53,824 |
Nonperforming loans | 15,972 | 14,693 |
Level 3 | Recurring member | Net market price | Corporate Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 925 | $ 955 |
Valuation technique for corporate securities | us-gaap:ValuationTechniqueConsensusPricingModelMember | us-gaap:ValuationTechniqueConsensusPricingModelMember |
Level 3 | Non recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | $ 44,566 | $ 53,824 |
Nonperforming loans | $ 522 | $ 2,175 |
Level 3 | Non recurring member | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique for servicing asset | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Level 3 | Non recurring member | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique for servicing asset | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Level 3 | Non recurring member | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Valuation technique for servicing asset | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Level 3 | Non recurring member | Discounted cash flow | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | $ 43,497 | $ 52,693 |
Level 3 | Non recurring member | Discounted cash flow | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 1,069 | 1,131 |
Level 3 | Non recurring member | Discounted cash flow | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 1,460 | 1,972 |
Level 3 | Non recurring member | Fair value of collateral | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Nonperforming loans | $ 522 | $ 2,175 |
Minimum | Level 3 | Recurring member | Net market price | Corporate Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for corporate securities | (1.5) | (2) |
Minimum | Level 3 | Non recurring member | Measurement Input Discount Rate For Type Of Property Age Of Appraisal And Current Status [Member] | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for nonperforming loans | 0.0432 | |
Minimum | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 8 | 8 |
Minimum | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 8.31 | 8.31 |
Minimum | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 14.04 | 8.64 |
Minimum | Level 3 | Non recurring member | Discounted cash flow | Discount rate | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 10 | 10 |
Minimum | Level 3 | Non recurring member | Discounted cash flow | Discount rate | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 9 | 9.50 |
Maximum | Level 3 | Recurring member | Net market price | Corporate Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for corporate securities | 2 | 2.5 |
Maximum | Level 3 | Non recurring member | Measurement Input Discount Rate For Type Of Property Age Of Appraisal And Current Status [Member] | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for nonperforming loans | 0.0800 | |
Maximum | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 22.50 | 18 |
Maximum | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 9.21 | 9.21 |
Maximum | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 26.28 | 26.28 |
Maximum | Level 3 | Non recurring member | Discounted cash flow | Discount rate | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 27 | 14 |
Maximum | Level 3 | Non recurring member | Discounted cash flow | Discount rate | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 11.50 | 12.50 |
Weighted average | Level 3 | Recurring member | Net market price | Corporate Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for corporate securities | (1) | (1.5) |
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | (8.38) | (8.20) |
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | (8.60) | (8.60) |
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | (16.92) | (12.42) |
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Discount rate | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | (11.43) | (11.02) |
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Discount rate | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | (11.70) | (11.70) |
Weighted average | Level 3 | Non recurring member | Discounted cash flow | Discount rate | MSR held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | (10.13) | (10.75) |
Weighted average | Level 3 | Non recurring member | Fair value of collateral | Measurement Input Discount Rate For Type Of Property Age Of Appraisal And Current Status [Member] | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for nonperforming loans | (4.50) | (5.22) |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | $ 113,852 | $ 16,431 | |
Difference | 715 | 652 | |
Contractual principal | 113,137 | 15,779 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | 97 | $ (385) | |
Commercial Portfolio | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | 1,706 | 8,236 | |
Difference | 48 | 206 | |
Contractual principal | 1,658 | 8,030 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | (158) | (328) | |
Residential real estate: | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | 12,458 | 8,195 | |
Difference | 667 | 446 | |
Contractual principal | 11,791 | $ 7,749 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | 255 | $ (57) | |
Consumer | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | 99,688 | ||
Contractual principal | $ 99,688 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Investment securities available for sale | $ 656,254 | $ 649,433 |
Equity securities recorded at fair value | 5,640 | 5,621 |
Loans held for sale | 113,852 | 16,431 |
Accrued interest receivable | 16,532 | 16,346 |
Liabilities | ||
Trust preferred debentures | 48,420 | 48,288 |
Accrued interest payable | 7,078 | 6,400 |
Level 1 | ||
Assets | ||
Cash and due from banks | 445,097 | 392,694 |
Federal funds sold | 4,299 | 1,811 |
Level 2 | ||
Assets | ||
Nonmarketable equity securities | 46,068 | 44,505 |
Accrued interest receivable | 16,532 | 16,346 |
Liabilities | ||
Deposits | 4,661,375 | 4,548,327 |
Short-term borrowings | 43,578 | 82,029 |
FHLB and other borrowings | 631,450 | 506,832 |
Subordinated debt | 160,344 | 182,189 |
Trust preferred debentures | 42,391 | 53,811 |
Accrued interest payable | 7,078 | 6,400 |
Level 3 | ||
Assets | ||
Loans, net | 4,387,244 | 4,385,768 |
Carrying value | ||
Assets | ||
Cash and due from banks | 445,097 | 392,694 |
Federal funds sold | 4,299 | 1,811 |
Nonmarketable equity securities | 46,068 | 44,505 |
Loans, net | 4,337,659 | 4,373,382 |
Accrued interest receivable | 16,532 | 16,346 |
Liabilities | ||
Deposits | 4,650,640 | 4,544,254 |
Short-term borrowings | 43,578 | 82,029 |
FHLB and other borrowings | 593,089 | 493,311 |
Subordinated debt | 169,505 | 176,653 |
Trust preferred debentures | 48,420 | 48,288 |
Accrued interest payable | 7,078 | 6,400 |
Fair value | ||
Assets | ||
Cash and due from banks | 445,097 | 392,694 |
Federal funds sold | 4,299 | 1,811 |
Nonmarketable equity securities | 46,068 | 44,505 |
Loans, net | 4,387,244 | 4,385,768 |
Accrued interest receivable | 16,532 | 16,346 |
Liabilities | ||
Deposits | 4,661,375 | 4,548,327 |
Short-term borrowings | 43,578 | 82,029 |
FHLB and other borrowings | 631,450 | 506,832 |
Subordinated debt | 160,344 | 182,189 |
Trust preferred debentures | 42,391 | 53,811 |
Accrued interest payable | 7,078 | 6,400 |
Corporate Securities | ||
Assets | ||
Investment securities available for sale | $ 138,822 | $ 122,736 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CREDIT RISK - Maturities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Anticipated material loss | $ 0 | ||
ACL for off-balance sheet credit exposures | 2,400,000 | $ 1,507,000 | |
Losses as a result of make whole requests and loan repurchases | 0 | $ 0 | |
Liability for unresolved repurchase demands | 289,000 | 289,000 | |
Commitments to extend credit | |||
Loan commitments | 728,472,000 | 725,506,000 | |
Financial guarantees - standby letters of credit | |||
Loan commitments | $ 55,676,000 | $ 106,678,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 46,651 | $ 45,601 | |
Provision for credit losses on loans | 10,569 | 3,243 | |
Noninterest income | 8,598 | 17,075 | |
Noninterest expense | 42,675 | 41,097 | |
Income (loss) before income taxes (benefit) | 2,005 | 18,336 | |
Income taxes (benefit) | 456 | 4,354 | |
Net income (loss) | 1,549 | 13,982 | |
Total assets | 6,208,230 | 5,641,780 | $ 6,087,017 |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 49,927 | 48,518 | |
Provision for credit losses on loans | 10,569 | 3,243 | |
Noninterest income | 10,213 | 8,940 | |
Noninterest expense | 37,074 | 35,371 | |
Income (loss) before income taxes (benefit) | 12,497 | 18,844 | |
Income taxes (benefit) | 3,909 | 4,975 | |
Net income (loss) | 8,588 | 13,869 | |
Total assets | 6,132,963 | 5,582,494 | |
Wealth management | |||
Segment Reporting Information [Line Items] | |||
Noninterest income | 5,677 | 4,953 | |
Noninterest expense | 3,613 | 3,247 | |
Income (loss) before income taxes (benefit) | 2,064 | 1,706 | |
Income taxes (benefit) | 205 | 140 | |
Net income (loss) | 1,859 | 1,566 | |
Total assets | 21,875 | 19,039 | |
Commercial FHA origination and servicing | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (64) | (176) | |
Noninterest income | (7,232) | 3,238 | |
Noninterest expense | 2,094 | 2,811 | |
Income (loss) before income taxes (benefit) | (9,390) | 251 | |
Income taxes (benefit) | (2,629) | 71 | |
Net income (loss) | (6,761) | 180 | |
Total assets | 81,394 | 94,797 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (3,212) | (2,741) | |
Noninterest income | (60) | (56) | |
Noninterest expense | (106) | (332) | |
Income (loss) before income taxes (benefit) | (3,166) | (2,465) | |
Income taxes (benefit) | (1,029) | (832) | |
Net income (loss) | (2,137) | (1,633) | |
Total assets | $ (28,002) | $ (54,550) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Chairman | ||
Related Party Transaction [Line Items] | ||
Payments to related party | $ 17,000 | $ 210,000 |
REVENUE FROM CONTRACT WITH CUST
REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Noninterest income - out-of-scope of Topic 606 | $ (3,857) | |
Total noninterest income | 8,598 | $ 17,075 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - out-of-scope of Topic 606 | 5,729 | |
Total noninterest income | 17,075 | |
Trust management/administration fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 4,209 | |
Trust management/administration fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 3,617 | |
Investment advisory fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 529 | |
Investment advisory fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 529 | |
Investment brokerage fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 395 | |
Investment brokerage fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 219 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 544 | |
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 588 | |
Nonsufficient fund fees | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 1,866 | |
Nonsufficient fund fees | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 1,754 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 790 | |
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 766 | |
Interchange revenues | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 2,833 | |
Interchange revenues | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 2,680 | |
Merchant services revenue | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 351 | |
Merchant services revenue | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | 375 | |
Other. | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | $ 938 | |
Other. | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest income - in-scope of Topic 606 | $ 818 |