Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38280 | |
Entity Registrant Name | Stellar Bancorp, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 20-8339782 | |
Entity Address, Address Line One | 9 Greenway Plaza | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77046 | |
City Area Code | 713 | |
Local Phone Number | 210-7600 | |
Title of 12(b) Security | Common Stock, par value, $0.01 per share | |
Trading Symbol | STEL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,574,833 | |
Entity Central Index Key | 0001473844 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 110,341,000 | $ 121,004,000 |
Interest-bearing deposits at other financial institutions | 379,909,000 | 278,233,000 |
Total cash and cash equivalents | 490,250,000 | 399,237,000 |
Available for sale securities, at fair value | 1,630,971,000 | 1,395,680,000 |
Loans held for investment | 7,713,897,000 | 7,925,133,000 |
Less: allowance for credit losses on loans | (94,772,000) | (91,684,000) |
Loans, net | 7,619,125,000 | 7,833,449,000 |
Accrued interest receivable | 43,348,000 | 44,244,000 |
Premises and equipment, net | 113,984,000 | 118,683,000 |
Federal Home Loan Bank stock | 15,089,000 | 25,051,000 |
Bank-owned life insurance | 106,262,000 | 105,084,000 |
Goodwill | 497,318,000 | 497,318,000 |
Core deposit intangibles, net | 104,315,000 | 116,712,000 |
Other assets | 103,001,000 | 111,681,000 |
TOTAL ASSETS | 10,723,663,000 | 10,647,139,000 |
Deposits: | ||
Noninterest-bearing | 3,308,441,000 | 3,546,815,000 |
Interest-bearing | ||
Demand | 1,564,405,000 | 1,659,999,000 |
Money market and savings | 2,213,031,000 | 2,136,777,000 |
Certificates and other time | 1,639,426,000 | 1,529,876,000 |
Total interest-bearing deposits | 5,416,862,000 | 5,326,652,000 |
Total deposits | 8,725,303,000 | 8,873,467,000 |
Accrued interest payable | 12,327,000 | 11,288,000 |
Borrowed funds | 240,000,000 | 50,000,000 |
Subordinated debt | 109,964,000 | 109,765,000 |
Other liabilities | 70,274,000 | 81,601,000 |
Total liabilities | 9,157,868,000 | 9,126,121,000 |
COMMITMENTS AND CONTINGENCIES (See Note 13) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued or outstanding at June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.01 par value; 140,000,000 shares authorized; 53,564,116 shares issued and outstanding at June 30, 2024 and 53,291,079 shares issued and outstanding at December 31, 2023 | 536,000 | 533,000 |
Capital surplus | 1,238,477,000 | 1,232,627,000 |
Retained earnings | 447,948,000 | 405,945,000 |
Accumulated other comprehensive loss | (121,166,000) | (118,087,000) |
Total shareholders’ equity | 1,565,795,000 | 1,521,018,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 10,723,663,000 | $ 10,647,139,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, shares issued (in shares) | 53,564,116 | 53,291,079 |
Common stock, shares outstanding (in shares) | 53,564,116 | 53,291,079 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 135,885 | $ 133,931 | $ 270,570 | $ 259,660 |
Securities: | ||||
Taxable | 11,923 | 9,726 | 21,216 | 19,379 |
Tax-exempt | 816 | 436 | 1,634 | 1,698 |
Deposits in other financial institutions | 3,555 | 2,865 | 7,182 | 6,636 |
Total interest income | 152,179 | 146,958 | 300,602 | 287,373 |
INTEREST EXPENSE: | ||||
Demand, money market and savings deposits | 28,399 | 20,708 | 55,929 | 38,745 |
Certificates and other time deposits | 18,758 | 9,622 | 33,842 | 12,929 |
Borrowed funds | 1,700 | 6,535 | 3,474 | 7,852 |
Subordinated debt | 1,912 | 1,812 | 3,829 | 3,739 |
Total interest expense | 50,769 | 38,677 | 97,074 | 63,265 |
NET INTEREST INCOME | 101,410 | 108,281 | 203,528 | 224,108 |
(Reversal of) provision for credit losses | (1,935) | 1,915 | 2,163 | 5,581 |
Net interest income after provision for credit losses | 103,345 | 106,366 | 201,365 | 218,527 |
NONINTEREST INCOME: | ||||
Service charges on deposit accounts | 1,648 | 1,575 | 3,246 | 2,924 |
(Loss) gain on sale of assets | (64) | (6) | 449 | 192 |
Bank-owned life insurance income | 591 | 532 | 1,178 | 1,054 |
Debit card and ATM income | 543 | 1,821 | 1,070 | 3,519 |
Other | 2,698 | 1,561 | 5,769 | 5,292 |
Total noninterest income | 5,416 | 5,483 | 11,712 | 12,981 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 39,061 | 37,300 | 80,437 | 77,075 |
Net occupancy and equipment | 4,503 | 3,817 | 8,893 | 7,905 |
Depreciation | 1,948 | 1,841 | 3,912 | 3,677 |
Data processing and software amortization | 5,501 | 4,674 | 10,395 | 9,728 |
Professional fees | 1,620 | 1,564 | 4,282 | 3,091 |
Regulatory assessments and FDIC insurance | 2,299 | 2,755 | 4,153 | 4,049 |
Amortization of intangibles | 6,215 | 6,881 | 12,427 | 13,760 |
Communications | 847 | 689 | 1,784 | 1,390 |
Advertising | 891 | 907 | 1,656 | 1,746 |
Acquisition and merger-related expenses | 0 | 2,897 | 0 | 9,062 |
Other | 8,331 | 5,882 | 14,687 | 10,322 |
Total noninterest expense | 71,216 | 69,207 | 142,626 | 141,805 |
INCOME BEFORE INCOME TAXES | 37,545 | 42,642 | 70,451 | 89,703 |
Provision for income taxes | 7,792 | 7,467 | 14,551 | 17,380 |
NET INCOME | $ 29,753 | $ 35,175 | $ 55,900 | $ 72,323 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.56 | $ 0.66 | $ 1.05 | $ 1.36 |
Diluted (in dollars per share) | 0.56 | 0.66 | 1.04 | 1.36 |
DIVIDENDS PER SHARE (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 29,753 | $ 35,175 | $ 55,900 | $ 72,323 |
Unrealized gain (loss) on securities: | ||||
Change in unrealized holding gain (loss) on available for sale securities during the period | 11,418 | (23,717) | (3,912) | 14,249 |
Reclassification of gain realized on securities | 0 | 0 | 0 | (234) |
Total other comprehensive income (loss) | 11,418 | (23,717) | (3,912) | 14,015 |
Deferred tax (expense) benefit related to other comprehensive (income) loss | (2,395) | 4,994 | 833 | (2,758) |
Other comprehensive income (loss), net of tax | 9,023 | (18,723) | (3,079) | 11,257 |
Comprehensive (income ) loss | $ 38,776 | $ 16,452 | $ 52,821 | $ 83,580 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance (in shares) at Dec. 31, 2022 | 52,954,985 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,383,176,000 | $ 530,000 | $ 1,222,761,000 | $ 303,146,000 | $ (143,261,000) |
Net income | 72,323,000 | 72,323,000 | |||
Other comprehensive income (loss) | 11,257,000 | 11,257,000 | |||
Cash dividends declared | (13,850,000) | (13,850,000) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 347,749 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 351,000 | $ 3,000 | 348,000 | ||
Stock-based compensation expense | 5,423,000 | 5,423,000 | |||
Ending balance (in shares) at Jun. 30, 2023 | 53,302,734 | ||||
Ending balance at Jun. 30, 2023 | 1,458,680,000 | $ 533,000 | 1,228,532,000 | 361,619,000 | (132,004,000) |
Beginning balance (in shares) at Mar. 31, 2023 | 53,296,038 | ||||
Beginning balance at Mar. 31, 2023 | 1,446,216,000 | $ 533,000 | 1,225,596,000 | 333,368,000 | (113,281,000) |
Net income | 35,175,000 | 35,175,000 | |||
Other comprehensive income (loss) | (18,723,000) | (18,723,000) | |||
Cash dividends declared | (6,924,000) | (6,924,000) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 6,696 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 94,000 | 94,000 | |||
Stock-based compensation expense | 2,842,000 | 2,842,000 | |||
Ending balance (in shares) at Jun. 30, 2023 | 53,302,734 | ||||
Ending balance at Jun. 30, 2023 | 1,458,680,000 | $ 533,000 | 1,228,532,000 | 361,619,000 | (132,004,000) |
Beginning balance (in shares) at Dec. 31, 2023 | 53,291,079 | ||||
Beginning balance at Dec. 31, 2023 | 1,521,018,000 | $ 533,000 | 1,232,627,000 | 405,945,000 | (118,087,000) |
Net income | 55,900,000 | 55,900,000 | |||
Other comprehensive income (loss) | (3,079,000) | (3,079,000) | |||
Cash dividends declared | (13,897,000) | (13,897,000) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 273,037 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 223,000 | $ 3,000 | 220,000 | ||
Stock-based compensation expense | 5,630,000 | 5,630,000 | |||
Ending balance (in shares) at Jun. 30, 2024 | 53,564,116 | ||||
Ending balance at Jun. 30, 2024 | 1,565,795,000 | $ 536,000 | 1,238,477,000 | 447,948,000 | (121,166,000) |
Beginning balance (in shares) at Mar. 31, 2024 | 53,550,820 | ||||
Beginning balance at Mar. 31, 2024 | 1,530,698,000 | $ 536,000 | 1,235,221,000 | 425,130,000 | (130,189,000) |
Net income | 29,753,000 | 29,753,000 | |||
Other comprehensive income (loss) | 9,023,000 | 9,023,000 | |||
Cash dividends declared | (6,935,000) | (6,935,000) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 13,296 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 473,000 | 473,000 | |||
Stock-based compensation expense | 2,783,000 | 2,783,000 | |||
Ending balance (in shares) at Jun. 30, 2024 | 53,564,116 | ||||
Ending balance at Jun. 30, 2024 | $ 1,565,795,000 | $ 536,000 | $ 1,238,477,000 | $ 447,948,000 | $ (121,166,000) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Per share amount of cash dividends declared (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 55,900 | $ 72,323 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and intangibles amortization | 16,339 | 17,437 |
Net accretion on loans | (18,649) | (22,665) |
Net amortization of premium on securities | 4,606 | 1,564 |
Provision for credit losses | 2,163 | 5,581 |
Deferred income tax expense | 1,387 | 11,961 |
Stock-based compensation expense | 5,630 | 5,423 |
Net change in operating leases | 2,262 | 2,088 |
Bank-owned life insurance income | (1,178) | (1,054) |
Federal Home Loan Bank stock dividends | (493) | (400) |
Gain on sale of assets | (449) | (192) |
Excess tax benefit from stock based compensation | (183) | (47) |
Decrease in accrued interest receivable and other assets | 10,329 | 6,453 |
Decrease in accrued interest payable and other liabilities | (8,451) | (484) |
Net cash provided by operating activities | 69,213 | 97,988 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of available for sale securities | (323,235) | (33,287) |
Proceeds from maturities and principal paydowns of available for sale securities | 72,512 | 55,312 |
Proceeds from sales and calls of available for sale securities | 6,914 | 320,691 |
Net change in total loans | 226,533 | (291,730) |
Purchase of bank premises and equipment | (1,552) | (2,479) |
Proceeds from sale of bank premises, equipment and other real estate | 2,011 | 3,652 |
Net redemptions (purchases) of Federal Home Loan Bank stock | 10,455 | (9,020) |
Net cash (used in) provided by investing activities | (6,362) | 43,139 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net decrease in noninterest-bearing deposits | (238,374) | (516,633) |
Net increase in interest-bearing deposits | 90,210 | 15,389 |
Net change in borrowed funds | 190,000 | 306,000 |
Dividends paid to common shareholders | (13,897) | (13,850) |
Proceeds from the issuance of restricted stock and stock option exercises | 223 | 351 |
Net cash provided by (used in) financing activities | 28,162 | (208,743) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 91,013 | (67,616) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 399,237 | 371,705 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 490,250 | 304,089 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid | 5,700 | 0 |
Interest paid | 96,035 | 60,808 |
Cash paid for operating lease liabilities | 2,424 | 2,230 |
SUPPLEMENTAL NONCASH DISCLOSURE: | ||
Loans transferred to other real estate | 2,639 | 0 |
Branch assets transferred to assets held for sale | $ 0 | $ 3,819 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations —Stellar Bancorp, Inc. (“Stellar”) through its wholly-owned subsidiary, Stellar Bank (the “Bank” and together with Stellar, collectively referred to herein as “we,” “us,” “our” and the “Company”), provides a diversified range of commercial banking services primarily to small- to medium-sized businesses. Stellar derives substantially all of its revenues and income from the operation of the Bank. The Company is focused on delivering a wide variety of relationship-driven commercial banking products and community-oriented services tailored to meet the needs of small-to medium-sized businesses, professionals and individuals through its 54 banking centers with 37 banking centers in the Houston metropolitan statistical area (“MSA”), 16 banking centers in the Beaumont MSA and one banking center in Dallas, Texas. Basis of Presentation —The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between Stellar and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Reclassifications —Certain items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. Significant Accounting and Reporting Policies —The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Recent Accounting Standards Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Servicing Assets (In thousands) Balance as of December 31, 2022 $ 497,260 $ 143,525 $ 309 Amortization — (26,813) (70) Goodwill true-up 58 — — Decrease due to payoff of serviced loans — — (27) Balance as of December 31, 2023 497,318 116,712 212 Amortization — (12,397) (30) Decrease due to payoff of serviced loans — — (4) Balance as of June 30, 2024 $ 497,318 $ 104,315 $ 178 Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired recorded on the acquisition date of an entity. During the measurement period, the Company may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. Goodwill is subject to impairment testing, which must be conducted at least annually or upon the occurrence of a triggering event. Various factors, such as the Company’s results of operations, the trading price of the Company’s common stock relative to the book value per share, macroeconomic conditions and conditions in the banking sector, inform whether a triggering event for an interim goodwill impairment test has occurred. Goodwill is recorded and evaluated for impairment at its reporting unit, the Company. The Company’s policy is to test goodwill for impairment annually as of October 1st, or on an interim basis if an event triggering an impairment assessment is determined to have occurred. Testing of goodwill impairment comprises a two-step process. First, the Company performs a qualitative assessment to evaluate relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that an impairment has occurred, it proceeds to the quantitative impairment test, whereby it calculates the fair value of the reporting unit and compares it with its carrying amount, including goodwill. In its performance of impairment testing, the Company has the unconditional option to proceed directly to the quantitative impairment test, bypassing the qualitative assessment. If the carrying amount of the reporting unit exceeds the fair value, the amount by which the carrying amount exceeds fair value, up to the carrying value of goodwill, is recorded through earnings as an impairment charge. If the results of the qualitative assessment indicate that it is not more likely than not that an impairment has occurred, or if the quantitative impairment test results in a fair value of the reporting unit that is greater than the carrying amount, then no impairment charge is recorded. The estimated aggregate future amortization expense for core deposit intangible assets remaining as of June 30, 2024 is as follows (in thousands): Remaining 2024 $ 11,769 2025 21,528 2026 18,896 2027 16,272 Thereafter 35,850 Total $ 104,315 |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of securities available for sale were as follows: June 30, 2024 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 290,354 $ 261 $ (8,445) $ 282,170 Municipal securities 220,518 869 (26,778) 194,609 Agency mortgage-backed pass-through securities 473,300 61 (40,179) 433,182 Agency collateralized mortgage obligations 688,587 257 (66,999) 621,845 Corporate bonds and other 111,574 23 (12,432) 99,165 Total $ 1,784,333 $ 1,471 $ (154,833) $ 1,630,971 December 31, 2023 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 307,529 $ 90 $ (10,201) $ 297,418 Municipal securities 229,615 1,615 (27,171) 204,059 Agency mortgage-backed pass-through securities 424,664 370 (37,161) 387,873 Agency collateralized mortgage obligations 462,498 172 (64,553) 398,117 Corporate bonds and other 120,824 56 (12,667) 108,213 Total $ 1,545,130 $ 2,303 $ (151,753) $ 1,395,680 As of June 30, 2024, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality. This belief is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available for sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The amortized cost and fair value of investment securities at June 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair (In thousands) Due in one year or less $ 76,080 $ 74,852 Due after one year through five years 82,426 78,174 Due after five years through ten years 130,626 115,122 Due after ten years 333,314 307,796 Subtotal 622,446 575,944 Agency mortgage-backed pass-through securities and collateralized mortgage obligations 1,161,887 1,055,027 Total $ 1,784,333 $ 1,630,971 Securities with unrealized losses segregated by length of time in a continuous loss position were as follows: June 30, 2024 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 23,505 $ (233) $ 217,429 $ (8,212) $ 240,934 $ (8,445) Municipal securities 5,249 (111) 170,568 (26,667) 175,817 (26,778) Agency mortgage-backed pass-through securities 109,961 (1,868) 291,919 (38,311) 401,880 (40,179) Agency collateralized mortgage obligations 222,596 (2,072) 323,436 (64,927) 546,032 (66,999) Corporate bonds and other 7,022 (2,582) 80,027 (9,850) 87,049 (12,432) Total $ 368,333 $ (6,866) $ 1,083,379 $ (147,967) $ 1,451,712 $ (154,833) December 31, 2023 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 110,038 $ (2,208) $ 154,145 $ (7,993) $ 264,183 $ (10,201) Municipal securities 1,303 (14) 177,957 (27,157) 179,260 (27,171) Agency mortgage-backed pass-through securities 80,208 (1,444) 257,779 (35,717) 337,987 (37,161) Agency collateralized mortgage obligations 23,051 (621) 348,854 (63,932) 371,905 (64,553) Corporate bonds and other 11,279 (1,452) 85,285 (11,215) 96,564 (12,667) Total $ 225,879 $ (5,739) $ 1,024,020 $ (146,014) $ 1,249,899 $ (151,753) During the six months ended June 30, 2024, the Company had sales and calls of securities of $6.9 million. During the six months ended June 30, 2023, the Company had sales and calls of securities of $320.7 million and recorded gross gains of $234 thousand. At June 30, 2024 and December 31, 2023, the Company did not own securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of consolidated shareholders’ equity at such respective dates. The carrying value of pledged securities was $612.9 million at June 30, 2024 and $607.5 million at December 31, 2023. The majority of the securities in each case were pledged to collateralize public fund deposits. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas, and segregated by class of loan were as follows: June 30, 2024 December 31, 2023 (In thousands) Commercial and industrial $ 1,392,435 $ 1,409,002 Paycheck Protection Program (PPP) 3,629 5,100 Real estate: Commercial real estate (including multi-family residential) 4,029,671 4,071,807 Commercial real estate construction and land development 922,805 1,060,406 1-4 family residential (including home equity) 1,098,681 1,047,174 Residential construction 200,134 267,357 Consumer and other 66,542 64,287 Total loans 7,713,897 7,925,133 Allowance for credit losses on loans (94,772) (91,684) Loans, net $ 7,619,125 $ 7,833,449 Nonaccrual and Past Due Loans An aging analysis of past due loans, segregated by class of loans, is included below. June 30, 2024 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 6,271 $ — $ 6,271 $ 18,448 $ 1,367,716 $ 1,392,435 Paycheck Protection Program (PPP) 429 — 429 3 3,197 3,629 Real estate: Commercial real estate (including multi-family residential) 16,806 — 16,806 18,094 3,994,771 4,029,671 Commercial real estate construction and land development 14,276 — 14,276 1,641 906,888 922,805 1-4 family residential (including home equity) 2,660 — 2,660 12,454 1,083,567 1,098,681 Residential construction 1,193 — 1,193 155 198,786 200,134 Consumer and other 80 — 80 111 66,351 66,542 Total loans $ 41,715 $ — $ 41,715 $ 50,906 $ 7,621,276 $ 7,713,897 December 31, 2023 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 6,096 $ — $ 6,096 $ 5,048 $ 1,397,858 $ 1,409,002 Paycheck Protection Program (PPP) 375 — 375 — 4,725 5,100 Real estate: Commercial real estate (including multi-family residential) 9,600 — 9,600 16,699 4,045,508 4,071,807 Commercial real estate construction and land development 7,341 — 7,341 5,043 1,048,022 1,060,406 1-4 family residential (including home equity) 3,492 — 3,492 8,874 1,034,808 1,047,174 Residential construction 498 — 498 3,288 263,571 267,357 Consumer and other 64 — 64 239 63,984 64,287 Total loans $ 27,466 $ — $ 27,466 $ 39,191 $ 7,858,476 $ 7,925,133 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt. The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes including lending management monitoring, executive management and board committee oversight, and independent credit review. As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks certain risk ratings to be used as credit quality indicators including trends related to (1) the weighted-average risk grade of loans, (2) the level of classified loans, (3) the delinquency status of loans, (4) nonperforming loans and (5) the general economic conditions in our market. Individual bankers, under the oversight of credit administration, review updated financial information for all pass grade commercial loans to reassess the risk grade on at least an annual basis. When a loan reaches a set of internally designated criteria, including Substandard or higher, a special assets officer will be involved in the monitoring of the loan on an on-going basis. The following is a general description of the risk ratings used by the Company: Pass —Credits in this category contain an acceptable amount of risk. Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard —Loans classified as substandard have well-defined weaknesses on a continuing basis and are inadequately protected by the current net worth and paying capacity of the borrower, declining collateral values, or a continuing downturn in their industry which is reducing their profits to below zero and having a significantly negative impact on their cash flow. These loans so classified are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss —Loans classified as loss are to be charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. The following table presents risk ratings by category and the gross charge-offs by primary loan type and year of origination or renewal. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Revolving Loans Total Total 2024 2023 2022 2021 2020 Prior (In thousands) Commercial and industrial Pass $ 157,690 $ 262,432 $ 197,082 $ 141,074 $ 30,441 $ 28,347 $ 487,752 $ 45,801 $ 1,350,619 $ 1,377,118 Special Mention — 568 2,132 567 53 293 2,885 1,011 7,509 8,340 Substandard 485 2,628 3,937 685 468 11,791 2,508 11,760 34,262 23,496 Doubtful — 45 — — — — — — 45 48 Total commercial and industrial loans $ 158,175 $ 265,673 $ 203,151 $ 142,326 $ 30,962 $ 40,431 $ 493,145 $ 58,572 $ 1,392,435 $ 1,409,002 Current period gross charge-offs $ — $ 34 $ 162 $ 244 $ 144 $ 40 $ 50 $ 136 $ 810 Paycheck Protection Program (PPP) Pass $ — $ — $ — $ 2,052 $ 1,577 $ — $ — $ — $ 3,629 $ 5,100 Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ — $ — $ — $ 2,052 $ 1,577 $ — $ — $ — $ 3,629 $ 5,100 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate (including multi-family residential) Pass $ 235,570 $ 421,034 $ 1,349,553 $ 792,350 $ 376,727 $ 536,049 $ 121,215 $ 17,365 $ 3,849,863 $ 3,959,675 Special Mention 14,839 1,048 26,153 18,053 29,152 22,584 3,496 482 115,807 54,483 Substandard 1,011 10,961 7,297 24,347 8,798 9,903 1,684 — 64,001 57,649 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 251,420 $ 433,043 $ 1,383,003 $ 834,750 $ 414,677 $ 568,536 $ 126,395 $ 17,847 $ 4,029,671 $ 4,071,807 Current period gross charge-offs $ — $ — $ — $ 527 $ — $ — $ — $ — $ 527 Commercial real estate construction and land development Pass $ 131,783 $ 230,901 $ 346,680 $ 78,893 $ 13,594 $ 9,635 $ 70,381 $ 3,468 $ 885,335 $ 1,032,789 Special Mention 4,815 4,262 8,610 5,274 — 1,441 380 — 24,782 9,737 Substandard 3,742 4,422 1,319 2,510 71 79 135 410 12,688 17,880 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 140,340 $ 239,585 $ 356,609 $ 86,677 $ 13,665 $ 11,155 $ 70,896 $ 3,878 $ 922,805 $ 1,060,406 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — June 30, 2024 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans 2024 2023 2022 2021 2020 Prior Total Total (In thousands) 1-4 family residential (including Pass $ 74,729 $ 160,702 $ 287,884 $ 208,701 $ 107,466 $ 123,150 $ 86,186 $ 12,841 $ 1,061,659 $ 1,011,743 Special Mention 911 1,173 1,244 1,099 1,958 1,192 — 150 7,727 5,384 Substandard 1,581 3,459 1,390 4,594 1,276 7,186 8,191 1,618 29,295 30,047 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 77,221 $ 165,334 $ 290,518 $ 214,394 $ 110,700 $ 131,528 $ 94,377 $ 14,609 $ 1,098,681 $ 1,047,174 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential construction Pass $ 87,896 $ 90,527 $ 18,709 $ 349 $ 275 $ — $ 1,047 $ — $ 198,803 $ 264,069 Special Mention 460 661 — — — — — — 1,121 — Substandard — 210 — — — — — — 210 3,288 Doubtful — — — — — — — — — — Total residential construction $ 88,356 $ 91,398 $ 18,709 $ 349 $ 275 $ — $ 1,047 $ — $ 200,134 $ 267,357 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other Pass $ 27,293 $ 13,251 $ 6,350 $ 2,146 $ 770 $ 481 $ 15,273 $ 744 $ 66,308 $ 63,881 Special Mention — — 28 18 — — — — 46 67 Substandard — 1 105 22 — 3 2 55 188 339 Doubtful — — — — — — — — — — Total consumer and other $ 27,293 $ 13,252 $ 6,483 $ 2,186 $ 770 $ 484 $ 15,275 $ 799 $ 66,542 $ 64,287 Current period gross charge-offs $ — $ 9 $ — $ 4 $ — $ — $ — $ 92 $ 105 Total loans Pass $ 714,961 $ 1,178,847 $ 2,206,258 $ 1,225,565 $ 530,850 $ 697,662 $ 781,854 $ 80,219 $ 7,416,216 $ 7,714,375 Special Mention 21,025 7,712 38,167 25,011 31,163 25,510 6,761 1,643 156,992 78,011 Substandard 6,819 21,681 14,048 32,158 10,613 28,962 12,520 13,843 140,644 132,699 Doubtful — 45 — — — — — — 45 48 Total loans $ 742,805 $ 1,208,285 $ 2,258,473 $ 1,282,734 $ 572,626 $ 752,134 $ 801,135 $ 95,705 $ 7,713,897 $ 7,925,133 Current period gross charge-offs $ — $ 43 $ 162 $ 775 $ 144 $ 40 $ 50 $ 228 $ 1,442 The following table presents the activity in the allowance for credit losses on loans by portfolio type for the three and six months ended June 30, 2024 and 2023: Commercial and industrial Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (In thousands) Allowance for credit losses on loans: Three Months Ended Balance March 31, 2024 $ 37,451 $ — $ 36,611 $ 14,052 $ 5,055 $ 2,695 $ 421 $ 96,285 Provision for credit losses on loans 1,225 — (714) (1,541) 174 (732) 74 (1,514) Charge-offs (501) — — — — — (100) (601) Recoveries 601 — — — 1 — — 602 Net recoveries 100 — — — 1 — (100) 1 Balance June 30, 2024 $ 38,776 $ — $ 35,897 $ 12,511 $ 5,230 $ 1,963 $ 395 $ 94,772 Six Months Ended Balance December 31, 2023 $ 31,979 $ — $ 38,187 $ 13,627 $ 4,785 $ 2,623 $ 483 $ 91,684 Provision for credit losses on loans 6,892 — (1,763) (1,116) 439 (660) 9 3,801 Charge-offs (810) — (527) — — — (105) (1,442) Recoveries 715 — — — 6 — 8 729 Net charge-offs (95) — (527) — 6 — (97) (713) Balance June 30, 2024 $ 38,776 $ — $ 35,897 $ 12,511 $ 5,230 $ 1,963 $ 395 $ 94,772 Three Months Ended Balance March 31, 2023 $ 39,516 $ — $ 37,700 $ 13,579 $ 2,832 $ 2,089 $ 472 $ 96,188 Provision for credit losses on loans (814) — 1,263 921 1,946 991 (64) 4,243 Charge-offs (1,058) — — — (23) — (30) (1,111) Recoveries 861 — — — 2 — 12 875 Net charge-offs (197) — — — (21) — (18) (236) Balance June 30, 2023 $ 38,505 $ — $ 38,963 $ 14,500 $ 4,757 $ 3,080 $ 390 $ 100,195 Six Months Ended Balance December 31, 2022 $ 41,236 $ — $ 32,970 $ 14,121 $ 2,709 $ 1,796 $ 348 $ 93,180 Provision for credit losses on loans (2,316) — 5,979 379 2,062 1,284 55 7,443 Charge-offs (1,484) — — — (23) — (38) (1,545) Recoveries 1,069 — 14 — 9 — 25 1,117 Net charge-offs (415) — 14 — (14) — (13) (428) Balance June 30, 2023 $ 38,505 $ — $ 38,963 $ 14,500 $ 4,757 $ 3,080 $ 390 $ 100,195 Allowance for Credit Losses on Unfunded Commitments In addition to the allowance for credit losses on loans, the Company has established an allowance for credit losses on unfunded commitments, classified in other liabilities and adjusted as a provision for credit loss expense. The allowance represents estimates of expected credit losses over the contractual period in which there is exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on the commitments expected to fund. The estimate of commitments expected to fund is informed by historical analysis looking at utilization rates. The expected credit loss rates applied to the commitments expected to fund is informed by the general valuation allowance utilized for outstanding balances with the same underlying assumptions and drivers. The allowance for credit losses on unfunded commitments as of June 30, 2024 and December 31, 2023 was $9.7 million and $11.3 million, respectively. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The Company recorded a reversal of provision on unfunded commitments of $421 thousand during the three months ended June 30, 2024 compared to a reversal of provision on unfunded commitments of $2.3 million for the three months ended June 30, 2023 and a reversal of provision on unfunded commitments of $1.6 million for the six months ended June 30, 2024 compared to a $1.9 million reversal of provision on unfunded commitments for the six months ended June 30, 2023. Collateral Dependent Loans Collateral dependent loans are secured by real estate assets, accounts receivable, inventory and equipment. For a collateral dependent loan, the Company’s evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for credit losses on loans as a specific allocation. The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of June 30, 2024 and December 31, 2023: June 30, 2024 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ — $ — $ — Real estate: Commercial real estate (including multi-family residential) 5,955 — — 5,955 Commercial real estate construction and land development 1,179 — — 1,179 1-4 family residential (including home equity) 1,027 — — 1,027 Residential construction — — — — Consumer and other — — — — Total $ 8,161 $ — $ — $ 8,161 December 31, 2023 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ 70 $ — $ 70 Real estate: Commercial real estate (including multi-family residential) 5,548 — — 5,548 Commercial real estate construction and land development 437 — — 437 1-4 family residential (including home equity) 424 — — 424 Residential construction — — — — Consumer and other — — — — Total $ 6,409 $ 70 $ — $ 6,479 Nonaccrual Loans The following tables present additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of June 30, 2024 and December 31, 2023. June 30, 2024 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 1,027 $ 17,421 $ 18,448 Paycheck Protection Program (PPP) 3 — 3 Real estate: Commercial real estate (including multi-family residential) 13,842 4,252 18,094 Commercial real estate construction and land development 899 742 1,641 1-4 family residential (including home equity) 8,068 4,386 12,454 Residential construction 155 — 155 Consumer and other 28 83 111 Total loans $ 24,022 $ 26,884 50,906 December 31, 2023 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 1,616 $ 3,432 $ 5,048 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 11,844 4,855 16,699 Commercial real estate construction and land development 5,043 — 5,043 1-4 family residential (including home equity) 7,400 1,474 8,874 Residential construction 3,288 — 3,288 Consumer and other 54 185 239 Total loans $ 29,245 $ 9,946 $ 39,191 Loan Modifications Effective January 1, 2023, under ASU 2022-02, loan modifications are reported if concessions have been granted to borrowers that are experiencing financial difficulty. Information on these loan modifications originated after the effective date is presented according to the new accounting guidance. The percentage of loans modified comprised less than 1% of their respective classes of loan portfolios at June 30, 2024. The following tables present information regarding loans that were modified due to the borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ 103 $ — $ — $ — $ 407 $ 510 Real estate: Commercial real estate (including multi-family residential) — — — — 1,496 1,496 Commercial real estate construction and land development — — — — — — — 1-4 family residential (including home equity) — — — — — — — Residential construction — — — — — — Consumer and other — — — — — — — Total $ — $ 103 $ — $ — $ — $ 1,903 $ 2,006 Six Months Ended June 30, 2024 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ 1,163 $ 813 $ — $ — $ 875 $ 2,851 Real estate: Commercial real estate (including multi-family residential) — — 1,768 — — 1,496 3,264 Commercial real estate construction and land development — 2,068 — — — 2,269 4,337 1-4 family residential (including home equity) — — 1,797 — — 281 2,078 Residential construction — 55 — — — — 55 Consumer and other — — — — — — — Total $ — $ 3,286 $ 4,378 $ — $ — $ 4,921 $ 12,585 Three Months Ended June 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ — $ — $ — $ — $ 260 $ 260 Real estate: Commercial real estate (including multi-family residential) — — — — — 1,710 1,710 Commercial real estate construction and land development — 6,950 — — — — 6,950 1-4 family residential (including home equity) — — — — — — — Residential construction — — — — — — — Consumer and other — 96 — — — — 96 Total $ — $ 7,046 $ — $ — $ — $ 1,970 $ 9,016 Six Months Ended June 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ 92 $ 2,251 $ — $ — $ — $ 260 $ 2,603 Real estate: Commercial real estate (including multi-family residential) — — 790 — — 1,710 2,500 Commercial real estate construction and land development — 6,950 — — — — 6,950 1-4 family residential (including home equity) — 721 — — — — 721 Residential construction — — — — — — — Consumer and other — 96 — — — — 96 Total $ 92 $ 10,018 $ 790 $ — $ — $ 1,970 $ 12,870 The following table summarizes, by loan portfolio, the financial effect of the Company’s loan modifications for the periods indicated: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Weighted-Average Term Extension Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Interest Rate Reduction (months) (months) Commercial and industrial 6 0.0 % 12 0.0 % Real estate: Commercial real estate (including multi-family residential) — 0.0 % 12 0.0 % Commercial real estate construction and land development — 0.0 % 12 0.0 % 1-4 family residential (including home equity) — 0.0 % — 0.0 % Residential construction — 0.0 % — 0.0 % Consumer and other — 0.0 % 4 0.0 % Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Weighted-Average Term Extension Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Interest Rate Reduction (months) (months) Commercial and industrial 4 0.0 % 12 2.0 % Real estate: Commercial real estate (including multi-family residential) — 0.0 % 12 0.0 % Commercial real estate construction and land development 5 0.0 % 12 0.0 % 1-4 family residential (including home equity) — 0.0 % 12 0.0 % Residential construction 6 0.0 % — 0.0 % Consumer and other — 0.0 % 4 0.0 % The following table summarizes modified loans that had a payment default, determined as 90 or more days past due, within the past twelve months that were modified due to the borrowers experiencing financial difficulty during the periods indicated: Twelve Months Ended June 30, 2024 Twelve Months Ended June 30, 2023 Term Extension Payment Delay Interest Rate Reduction Term Extension Payment Delay Interest Rate Reduction (In thousands) Commercial and industrial $ 1,047 $ 814 $ — $ 670 $ — $ 92 Real estate: Commercial real estate (including multi-family residential) — — — — — — Commercial real estate construction and land development 1,703 — — — — — 1-4 family residential (including home equity) — — — 721 — — Residential construction — — — — — — Consumer and other — — — — — — $ 2,750 $ 814 $ — $ 1,391 $ — $ 92 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES At June 30, 2024, the Company had 32 operating leases consisting of branch locations, office facilities and equipment. The right-of-use asset is classified within premises and equipment and the lease liability is included in other liabilities on the balance sheet. The Company also owns certain office facilities which it leases to outside parties under operating lessor leases; however, such leases are not significant. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the six months ended June 30, 2024 and 2023. Supplemental lease information at the dates indicated was as follows: June 30, 2024 December 31, 2023 (Dollars in thousands) Balance Sheet: Operating lease right-of-use asset classified as premises and equipment $ 18,484 $ 20,746 Operating lease liability classified as other liabilities $ 18,964 $ 20,659 Weighted average lease term, in years 7.53 7.67 Weighted average discount rate 4.24 % 4.17 % Lease costs for the dates indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Income Statement: Operating lease cost $ 2,095 $ 1,579 $ 4,038 $ 3,393 Short-term lease cost 6 10 11 15 Total operating lease costs $ 2,101 $ 1,589 $ 4,049 $ 3,408 The following table summarizes the contractual maturity of the Company’s lease liabilities as of the dates indicated below: June 30, 2024 December 31, 2023 (In thousands) Lease payments due: Within one year $ 2,036 $ 4,428 After one but within two years 4,255 3,978 After two but within three years 3,748 3,430 After three but within four years 3,578 3,227 After four but within five years 3,414 3,047 After five years 6,845 6,605 Total lease payments 23,876 24,715 Less: discount on cash flows (4,912) (4,056) Total lease liability $ 18,964 $ 20,659 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value represents the estimated exchange price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price,” in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity. The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet were as follows: June 30, 2024 Carrying Estimated Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 490,250 $ 490,250 $ — $ — $ 490,250 Available for sale securities 1,630,971 — 1,630,971 — 1,630,971 Loans held for investment, net of allowance 7,619,125 — — 7,396,330 7,396,330 Accrued interest receivable 43,348 159 7,042 36,147 43,348 Financial liabilities Deposits $ 8,725,303 $ — $ 8,719,835 $ — $ 8,719,835 Accrued interest payable 12,327 — 12,327 — 12,327 Borrowed funds 240,000 — 240,000 — 240,000 Subordinated debt 109,964 — 108,402 — 108,402 December 31, 2023 Carrying Estimated Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 399,237 $ 399,237 $ — $ — $ 399,237 Available for sale securities 1,395,680 — 1,395,680 — 1,395,680 Loans held for investment, net of allowance 7,833,449 — — 7,627,962 7,627,962 Accrued interest receivable 44,244 118 6,716 37,410 44,244 Financial liabilities Deposits $ 8,873,467 $ — $ 8,866,645 $ — $ 8,866,645 Accrued interest payable 11,288 — 11,288 — 11,288 Borrowed funds 50,000 — 50,000 — 50,000 Subordinated debt 109,765 — 109,390 — 109,390 The following tables present fair values for assets and liabilities measured at fair value on a recurring basis. June 30, 2024 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 282,170 $ — $ 282,170 Municipal securities — 194,609 — 194,609 Agency mortgage-backed pass-through securities — 433,182 — 433,182 Agency collateralized mortgage obligations — 621,845 — 621,845 Corporate bonds and other — 99,165 — 99,165 Interest rate swaps — 6,926 — 6,926 Credit risk participation agreements — — 13 13 Total fair value of financial assets $ — $ 1,637,897 $ 13 $ 1,637,910 Financial liabilities Interest rate swaps $ — $ 6,926 $ — $ 6,926 Total fair value of financial liabilities $ — $ 6,926 $ — $ 6,926 December 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 297,418 $ — $ 297,418 Municipal securities — 204,059 — 204,059 Agency mortgage-backed pass-through securities — 387,873 — 387,873 Agency collateralized mortgage obligations — 398,117 — 398,117 Corporate bonds and other — 108,213 — 108,213 Interest rate swaps — 6,692 — 6,692 Credit risk participation agreements — — 20 20 Total fair value of financial assets $ — $ 1,402,372 $ 20 $ 1,402,392 Financial liabilities Interest rate swaps $ — $ 6,692 $ — $ 6,692 Total fair value of financial liabilities $ — $ 6,692 $ — $ 6,692 There were no transfers between levels during the six months ended June 30, 2024 or 2023. Certain assets, including purchase credit deteriorated and individually evaluated loans with allowances for credit losses and branch assets held for sale, are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as impairment. There were no liabilities measured at fair value on a nonrecurring basis at June 30, 2024 and December 31, 2023. Assets measured on a nonrecurring basis for the periods noted are summarized in the table below. June 30, 2024 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 17,415 Commercial real estate (including multi-family residential) — — 5,302 Commercial real estate construction and land development — — 2,094 1-4 family residential (including home equity) — — 6,287 Residential construction — — — Consumer and other — — 102 $ — $ — $ 31,200 December 31, 2023 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 10,084 Commercial real estate (including multi-family residential) — — 7,134 Commercial real estate construction and land development — — 6,654 1-4 family residential (including home equity) — — 3,892 Consumer and other — — 106 Branch assets held for sale (1) 2,033 — — $ 2,033 $ — $ 27,870 (1) Branch assets held for sale are banking centers that closed and were for sale. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2024 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | DEPOSITS Time deposits that met or exceeded the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250,000 at June 30, 2024 and December 31, 2023 were $531.3 million and $548.4 million, respectively. Scheduled maturities of time deposits as of June 30, 2024 were as follows (in thousands): 2024 $ 961,610 2025 541,579 2026 56,779 2027 42,710 Thereafter 36,748 Total $ 1,639,426 The Company had $741.3 million and $615.9 million of brokered deposits as of June 30, 2024 and December 31, 2023, respectively. There were no concentrations of deposits with any one depositor at June 30, 2024 and December 31, 2023. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company has outstanding interest rate swap contracts with certain customers and equal and offsetting interest rate swaps with other financial institutions entered into at the same time. These interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk. The objective of the transactions is to allow customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap transaction, the Company agreed to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agreed to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and do not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At June 30, 2024, management determined there was no such deterioration. At June 30, 2024 and December 31, 2023, the Company had nine and 15 interest rate swap agreements outstanding with borrowers and financial institutions, respectively. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in other noninterest income. Fair value amounts are included in other assets and other liabilities. At June 30, 2024 and December 31, 2023 the Company had three credit risk participation agreements with another financial institution that are associated with interest rate swaps related to loans for which the Company is the lead agent bank and the other financial institution provides credit protection to the Company should the borrower fail to perform under the terms of the interest rate swap agreements. The fair value of the agreements is determined based on the market value of the underlying interest rate swaps adjusted for credit spreads and recovery rates. Derivative instruments not designated as hedges outstanding as of the periods indicated below were as follows (dollars in thousands): June 30, 2024 Classification Notional Amounts Fair Value Fixed Rate Floating Rate Weighted Average Maturity (Years) Interest rate swaps: Financial institutions Other assets $ 66,889 $ 6,580 3.50% - 5.40% SOFR 1M + 2.50% - 3.00% 6.18 Financial institutions Other assets 4,849 346 4.99% U.S. Prime 3.46 Customers Other liabilities 4,849 (346) 4.99% U.S. Prime 3.46 Customers Other liabilities 66,889 (6,580) 3.50% - 5.40% SOFR 1M + 2.50% - 3.00% 6.18 Credit risk participation agreements: Financial institutions Other assets 20,348 13 3.50% - 5.40% SOFR 1M + 2.50% 6.82 December 31, 2023 Classification Notional Amounts Fair Value Fixed Rate Floating Rate Weighted Average Maturity (Years) Interest rate swaps: Financial institutions Other assets $ 104,930 $ 6,367 3.25% - 5.58% SOFR 1M + 2.50% - 3.00% 4.51 Financial institutions Other assets 4,911 295 4.99% U.S. Prime 3.96 Customers Other assets 4,875 30 6.25% SOFR 1M + 2.50% 4.04 Financial institutions Other liabilities 4,875 (30) 6.25% SOFR 1M + 2.50% 4.04 Customers Other liabilities 4,911 (295) 4.99% U.S. Prime 3.96 Customers Other liabilities 104,930 (6,367) 3.25% - 5.58% SOFR 1M + 2.50% - 3.00% 4.51 Credit risk participation agreements: Financial institutions Other assets $ 20,758 $ 20 3.50% - 5.40% SOFR 1M + 2.50% 7.33 |
BORROWINGS AND BORROWING CAPACI
BORROWINGS AND BORROWING CAPACITY | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND BORROWING CAPACITY | BORROWINGS AND BORROWING CAPACITY The Company has an available line of credit with the Federal Home Loan Bank (“FHLB”) of Dallas, which allows the Company to borrow on a collateralized basis. FHLB advances are used to manage liquidity as needed. The advances are secured by a blanket lien on certain loans. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. At June 30, 2024, the Company had a total borrowing capacity of $3.08 billion, of which $1.86 billion was available under this agreement and $1.23 billion was outstanding pursuant to FHLB advances and letters of credit. There were $240.0 million of FHLB short-term advances outstanding at June 30, 2024 at a weighted-average rate of 5.67%. At June 30, 2024, FHLB letters of credit pledged as collateral for public and other deposits of state and local government agencies totaled $986.0 million, which expire in the following periods (in thousands): 2024 $ 97,915 2025 328,300 2026 57,300 2027 402,500 Thereafter 100,000 Total $ 986,015 On December 13, 2022, Stellar entered into a loan agreement with another financial institution (the “Loan Agreement”) that provides for a $75.0 million revolving line of credit. At June 30, 2024, there were no outstanding borrowings on this line of credit and no draws were taken on this line of credit during the six months ended June 30, 2024. Draws can be made on the line of credit for a period of 24 months, which will end Decemb er 13, 2 024, after which no further draws are permitted and the outstanding balance will amortize over a period of 60 months. Interest accrues on outstanding borrowings at a per annum rate equal to the prime rate quoted by The Wall Street Journal and with a floor rate of 3.50% calculated in accordance with the terms of the revolving promissory note and payable quarterly through the first 24 months. The obligations of Stellar under the Loan Agreement are secured by a pledge of all the issued and outstanding shares of capital stock of the Bank. Covenants made under the Loan Agreement include, among other things, while there are obligations outstanding under Loan Agreement, the Company shall maintain a cash flow to debt service (as defined in the Loan Agreement) of not less than 1.25, the Bank’s Texas Ratio (as defined in the Loan Agreement) not to exceed 25.0% and the Bank shall maintain a Tier 1 Leverage Ratio (as defined under the Loan Agreement) of at least 7.0% and restrictions on the ability of Stellar and its subsidiaries to incur certain additional debt. As of June 30, 2024, the Company believes it was in compliance with all such debt covenants and had not been made aware of any noncompliance by the lender. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | SUBORDINATED DEBT Junior Subordinated Debentures In connection with the acquisitio n of F&M Bancshares, Inc. in 2015, Stellar assumed Farmers & Merchants Capital Trust II and Farmers & Merchants Capital Trust III. Each of the trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in Stellar's junior subordinated debentures. The preferred trust securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly owned by Stellar.. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon Stellar making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. Stellar has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by each trust to the extent not paid or made by such trust, provided such trust has funds available for such obligations. The trust preferred securities bear a floating rate of interest equal to 3-Month SOFR plus a spread adjustment. The junior subordinated debentures are included in Tier 1 capital under current regulatory guidelines and interpretations. Under the provisions of each issue of the debentures, Stellar has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. A summary of pertinent information related to Stellar’s junior subordinated debentures outstanding at June 30, 2024 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Junior Subordinated Debt Owed to Trusts Maturity Date (1) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3,609 July 7, 2035 $ 11,341 (1) All junior subordinated debentures were callable at June 30, 2024. Subordinated Notes In December 2017, the Bank issued $40.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the “Bank Notes”) due December 15, 2027. The Bank Notes bear a floating rate of interest equal to 3-Month SOFR plus a spread adjustment until the Bank Notes mature on December 15, 2027, or such earlier redemption date, payable quarterly in arrears. The Bank Notes are redeemable by the Bank, in whole or in part, upon the occurrence of certain specified tax events, capital events or investment company events. Any redemption will be at a redemption price equal to 100% of the principal amount of Bank Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Bank Notes are not subject to redemption at the option of the holders. The Bank Notes are eligible for Tier 2 capital treatment, however, during the last five years of the instrument, the amount eligible must be reduced by 20% of the original amount annually and that no amount of the instrument is eligible for inclusion in Tier 2 capital when the remaining maturity of the instrument is less than one year. As the Bank Notes are within five years of maturity, only 60% of the notes are eligible for Tier 2 capital treatment at June 30, 2024. In September 2019, Stellar issued $60.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the “Company Notes”) due October 1, 2029. The Company Notes bear a fixed interest rate of 4.70% per annum until (but excluding) October 1, 2024, payable semi-annually in arrears on April 1 and October 1, commencing on April 1, 2020. Thereafter, from October 1, 2024 through the maturity date, October 1, 2029, or earlier redemption date, the Company Notes will bear interest at a floating rate equal to 3-Month SOFR, plus 3.13%, for each quarterly interest period, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. Any redemption will be at a redemption price equal to 100% of the principal amount of Company Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Company Notes are not subject to redemption at the option of the holders. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The amount of the Company’s income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Income tax expense $ 7,792 $ 7,467 $ 14,551 $ 17,380 Effective income tax rate 20.8 % 17.5 % 20.7 % 19.4 % |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Under the 2022 Omnibus Incentive Plan (the “2022 Plan”) the Company is authorized to issue a maximum aggregate of 2,000,000 shares of common stock. All restricted stock and performance share awards outstanding at June 30, 2024 were issued under the 2022 Plan. At June 30, 2024, there were 786,851 shares reserved and available for issuance under the 2022 Plan. The Company accounts for stock based employee compensation plans using the fair value-based method of accounting. The Company recognized total stock based compensation expense of $2.8 million and $2.8 million for both of the three months ended June 30, 2024 and 2023 and $5.6 million and $5.4 million for the six months ended June 30, 2024 and 2023, respectively. Stock Options Stock options outstanding at June 30, 2024 were issued under equity compensation plans that are no longer active. No additional shares may be issued under these compensation plans. Stock option activity during the six months ended June 30, 2024 was as follows: Number of Weighted- Weighted- Aggregate (In thousands) (In years) (In thousands) Options outstanding, January 1, 2024 258 $ 18.56 2.09 $ 2,398 Options granted — — Options exercised (53) 15.05 Options forfeited (4) 14.11 Options outstanding, June 30, 2024 201 $ 19.57 1.96 $ 791 Options vested and exercisable, June 30, 2024 201 $ 19.57 1.96 $ 791 Restricted Stock Awards The fair value of the Company’s restricted stock awards is estimated based on the market value of the Company’s common stock at the date of grant, which is the closing price of the Company’s common stock on the day before the grant date. The shares of restricted stock granted generally vest over a period of two Shares of restricted stock are considered outstanding at the date of issuance as the grantee becomes the record owner of the restricted stock and has voting, dividend and other shareholder rights. The shares of restricted stock are non-transferable and subject to forfeiture until the restricted stock awards vest and any dividends with respect to the restricted stock awards are subject to the same restrictions, including the risk of forfeiture. Nonvested shares of restricted stock activity during the six months ended June 30, 2024 was as follows: Number of Weighted- (In thousands) Nonvested share awards outstanding, January 1, 2024 458 $ 29.38 Share awards granted 311 23.17 Share awards vested (85) 25.18 Unvested share awards forfeited or cancelled (45) 24.88 Nonvested share awards outstanding, June 30, 2024 639 $ 27.23 As of June 30, 2024, there was $11.6 million of unrecognized compensation expense related to restricted stock awards which is expected to be recognized over a weighted-average period of 1.87 years. Performance Share Awards ( “ PSAs ” ) PSAs are generally earned subject to certain performance goals being met after the two-year performance period and will be settled in shares of Company common stock following a one-year service period. There were 77,624 PSAs awarded during the six months ended June 30, 2024. The grant date fair value of the PSAs is based on the probable outcome of the applicable performance conditions and is calculated at target based on a combination of the closing market price of our common stock on the grant date and a Monte Carlo simulated fair value in accordance with accounting standards codification (“ASC” ) 718. At June 30, 2024, there was $3.6 million of unrecognized compensation expense related to the PSAs, which is expected to be recognized over a weighted-average period of 2.08 years. |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with accounting principles generally accepted in the United States are not included in the Company’s consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby and commercial letters of credit, which involve to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk are as follows: June 30, 2024 December 31, 2023 Fixed Variable Fixed Variable (In thousands) Commitments to extend credit $ 314,420 $ 1,323,829 $ 367,068 $ 1,425,946 Standby letters of credit 13,807 25,331 16,147 21,514 Total $ 328,227 $ 1,349,160 $ 383,215 $ 1,447,460 At June 30, 2024 and December 31, 2023, the Company had FHLB letters of credit in the amount of $986.0 million and $1.82 billion, respectively, pledged as collateral for public and other deposits of state and local government agencies. For more information on FHLB borrowings, see Note 9 – Borrowings and Borrowing Capacity. Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed do not necessarily represent future cash funding requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses. The amount and type of collateral, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Commitments to make loans are generally made for an approval period of 120 days or less. As of June 30, 2024, the fixed rate loan commitments had interest rates ranging from 2.10% to 13.50% with a weighted average maturity of 2.23 years and a weighted-average rate of 6.95%. Standby Letters of Credit Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has the rights to the underlying collateral. The credit risk to the Company in issuing letters of credit is substantially similar to that involved in extending loan facilities to its customers. The Company’s policy for obtaining collateral, and the nature of such collateral, is substantially similar to that involved in making commitments to extend credit. Litigation |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 6 Months Ended |
Jun. 30, 2024 | |
Regulatory Capital Matters [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can initiate actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Management believes as of June 30, 2024 and December 31, 2023, the Company and the Bank met all capital adequacy requirements to which they were then subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If less than well capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The Bank’s capital ratios as of June 30, 2024 exceed the minimum levels necessary to be considered “well-capitalized” under the prompt corrective action regulatory framework. The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of June 30, 2024 and December 31, 2023: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well-Capitalized Under Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) STELLAR BANCORP, INC. (Consolidated) June 30, 2024 Total Capital (to risk-weighted assets) $ 1,283,125 15.34 % $ 669,072 8.00 % $ 878,157 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 1,085,328 12.98 % 376,353 4.50 % 585,438 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 1,095,226 13.10 % 501,804 6.00 % 710,889 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 1,095,226 10.93 % 400,889 4.00 % 400,889 4.00 % N/A N/A December 31, 2023 Total Capital (to risk-weighted assets) $ 1,221,060 14.02 % $ 696,529 8.00 % $ 914,195 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 1,025,076 11.77 % 391,798 4.50 % 604,463 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 1,034,974 11.89 % 522,397 6.00 % 740,062 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 1,034,974 10.18 % 406,859 4.00 % 406,859 4.00 % N/A N/A STELLAR BANK June 30, 2024 Total Capital (to risk-weighted assets) $ 1,223,208 14.65 % $ 668,098 8.00 % $ 876,879 10.50 % $ 835,123 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 1,095,348 13.12 % 375,805 4.50 % 584,586 7.00 % 542,830 6.50 % Tier 1 Capital (to risk-weighted assets) 1,095,348 13.12 % 501,074 6.00 % 709,854 8.50 % 668,098 8.00 % Tier 1 Leverage (to average tangible assets) 1,095,348 10.94 % 400,435 4.00 % 400,435 4.00 % 500,543 5.00 % December 31, 2023 Total Capital (to risk-weighted assets) $ 1,186,710 13.65 % $ 695,746 8.00 % $ 913,167 10.50 % $ 869,683 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 1,060,624 12.20 % 391,357 4.50 % 608,778 7.00 % 565,294 6.50 % Tier 1 Capital (to risk-weighted assets) 1,060,624 12.20 % 521,810 6.00 % 739,231 8.50 % 695,746 8.00 % Tier 1 Leverage (to average tangible assets) 1,060,624 10.44 % 406,453 4.00 % 406,453 4.00 % 508,066 5.00 % Dividend Restrictions The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. In addition, the Company’s credit agreement with another financial institution also limits its ability to pay dividends. Under applicable banking regulations, the amount of dividends that may be paid by the Bank in any calendar year is limited to the current year’s net profits combined with the retained net profits of the preceding two years, subject to the capital requirements described above. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Diluted earnings per common share is computed using the weighted-average number of common shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Restricted shares and performance share awards are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amount Per Share Amount Per Share Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to shareholders $ 29,753 $ 35,175 $ 55,900 $ 72,323 Basic: Weighted average shares outstanding 53,572 $ 0.56 53,297 $ 0.66 53,457 $ 1.05 53,160 $ 1.36 Diluted: Add incremental shares for: Dilutive effect of stock option exercises and performance share units 36 78 49 101 Total 53,608 $ 0.56 53,375 $ 0.66 53,506 $ 1.04 53,261 $ 1.36 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 29,753 | $ 35,175 | $ 55,900 | $ 72,323 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentations | Basis of Presentation —The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between Stellar and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. |
Reclassifications | Reclassifications —Certain items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Servicing Assets (In thousands) Balance as of December 31, 2022 $ 497,260 $ 143,525 $ 309 Amortization — (26,813) (70) Goodwill true-up 58 — — Decrease due to payoff of serviced loans — — (27) Balance as of December 31, 2023 497,318 116,712 212 Amortization — (12,397) (30) Decrease due to payoff of serviced loans — — (4) Balance as of June 30, 2024 $ 497,318 $ 104,315 $ 178 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangible assets remaining as of June 30, 2024 is as follows (in thousands): Remaining 2024 $ 11,769 2025 21,528 2026 18,896 2027 16,272 Thereafter 35,850 Total $ 104,315 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of securities available for sale were as follows: June 30, 2024 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 290,354 $ 261 $ (8,445) $ 282,170 Municipal securities 220,518 869 (26,778) 194,609 Agency mortgage-backed pass-through securities 473,300 61 (40,179) 433,182 Agency collateralized mortgage obligations 688,587 257 (66,999) 621,845 Corporate bonds and other 111,574 23 (12,432) 99,165 Total $ 1,784,333 $ 1,471 $ (154,833) $ 1,630,971 December 31, 2023 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 307,529 $ 90 $ (10,201) $ 297,418 Municipal securities 229,615 1,615 (27,171) 204,059 Agency mortgage-backed pass-through securities 424,664 370 (37,161) 387,873 Agency collateralized mortgage obligations 462,498 172 (64,553) 398,117 Corporate bonds and other 120,824 56 (12,667) 108,213 Total $ 1,545,130 $ 2,303 $ (151,753) $ 1,395,680 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment securities at June 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair (In thousands) Due in one year or less $ 76,080 $ 74,852 Due after one year through five years 82,426 78,174 Due after five years through ten years 130,626 115,122 Due after ten years 333,314 307,796 Subtotal 622,446 575,944 Agency mortgage-backed pass-through securities and collateralized mortgage obligations 1,161,887 1,055,027 Total $ 1,784,333 $ 1,630,971 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Securities with unrealized losses segregated by length of time in a continuous loss position were as follows: June 30, 2024 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 23,505 $ (233) $ 217,429 $ (8,212) $ 240,934 $ (8,445) Municipal securities 5,249 (111) 170,568 (26,667) 175,817 (26,778) Agency mortgage-backed pass-through securities 109,961 (1,868) 291,919 (38,311) 401,880 (40,179) Agency collateralized mortgage obligations 222,596 (2,072) 323,436 (64,927) 546,032 (66,999) Corporate bonds and other 7,022 (2,582) 80,027 (9,850) 87,049 (12,432) Total $ 368,333 $ (6,866) $ 1,083,379 $ (147,967) $ 1,451,712 $ (154,833) December 31, 2023 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 110,038 $ (2,208) $ 154,145 $ (7,993) $ 264,183 $ (10,201) Municipal securities 1,303 (14) 177,957 (27,157) 179,260 (27,171) Agency mortgage-backed pass-through securities 80,208 (1,444) 257,779 (35,717) 337,987 (37,161) Agency collateralized mortgage obligations 23,051 (621) 348,854 (63,932) 371,905 (64,553) Corporate bonds and other 11,279 (1,452) 85,285 (11,215) 96,564 (12,667) Total $ 225,879 $ (5,739) $ 1,024,020 $ (146,014) $ 1,249,899 $ (151,753) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas, and segregated by class of loan were as follows: June 30, 2024 December 31, 2023 (In thousands) Commercial and industrial $ 1,392,435 $ 1,409,002 Paycheck Protection Program (PPP) 3,629 5,100 Real estate: Commercial real estate (including multi-family residential) 4,029,671 4,071,807 Commercial real estate construction and land development 922,805 1,060,406 1-4 family residential (including home equity) 1,098,681 1,047,174 Residential construction 200,134 267,357 Consumer and other 66,542 64,287 Total loans 7,713,897 7,925,133 Allowance for credit losses on loans (94,772) (91,684) Loans, net $ 7,619,125 $ 7,833,449 |
Schedule of Past Due Financing Receivables | An aging analysis of past due loans, segregated by class of loans, is included below. June 30, 2024 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 6,271 $ — $ 6,271 $ 18,448 $ 1,367,716 $ 1,392,435 Paycheck Protection Program (PPP) 429 — 429 3 3,197 3,629 Real estate: Commercial real estate (including multi-family residential) 16,806 — 16,806 18,094 3,994,771 4,029,671 Commercial real estate construction and land development 14,276 — 14,276 1,641 906,888 922,805 1-4 family residential (including home equity) 2,660 — 2,660 12,454 1,083,567 1,098,681 Residential construction 1,193 — 1,193 155 198,786 200,134 Consumer and other 80 — 80 111 66,351 66,542 Total loans $ 41,715 $ — $ 41,715 $ 50,906 $ 7,621,276 $ 7,713,897 December 31, 2023 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 6,096 $ — $ 6,096 $ 5,048 $ 1,397,858 $ 1,409,002 Paycheck Protection Program (PPP) 375 — 375 — 4,725 5,100 Real estate: Commercial real estate (including multi-family residential) 9,600 — 9,600 16,699 4,045,508 4,071,807 Commercial real estate construction and land development 7,341 — 7,341 5,043 1,048,022 1,060,406 1-4 family residential (including home equity) 3,492 — 3,492 8,874 1,034,808 1,047,174 Residential construction 498 — 498 3,288 263,571 267,357 Consumer and other 64 — 64 239 63,984 64,287 Total loans $ 27,466 $ — $ 27,466 $ 39,191 $ 7,858,476 $ 7,925,133 |
Schedule of Financing Receivable Credit Quality Indicators | The following table presents risk ratings by category and the gross charge-offs by primary loan type and year of origination or renewal. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Revolving Loans Total Total 2024 2023 2022 2021 2020 Prior (In thousands) Commercial and industrial Pass $ 157,690 $ 262,432 $ 197,082 $ 141,074 $ 30,441 $ 28,347 $ 487,752 $ 45,801 $ 1,350,619 $ 1,377,118 Special Mention — 568 2,132 567 53 293 2,885 1,011 7,509 8,340 Substandard 485 2,628 3,937 685 468 11,791 2,508 11,760 34,262 23,496 Doubtful — 45 — — — — — — 45 48 Total commercial and industrial loans $ 158,175 $ 265,673 $ 203,151 $ 142,326 $ 30,962 $ 40,431 $ 493,145 $ 58,572 $ 1,392,435 $ 1,409,002 Current period gross charge-offs $ — $ 34 $ 162 $ 244 $ 144 $ 40 $ 50 $ 136 $ 810 Paycheck Protection Program (PPP) Pass $ — $ — $ — $ 2,052 $ 1,577 $ — $ — $ — $ 3,629 $ 5,100 Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ — $ — $ — $ 2,052 $ 1,577 $ — $ — $ — $ 3,629 $ 5,100 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate (including multi-family residential) Pass $ 235,570 $ 421,034 $ 1,349,553 $ 792,350 $ 376,727 $ 536,049 $ 121,215 $ 17,365 $ 3,849,863 $ 3,959,675 Special Mention 14,839 1,048 26,153 18,053 29,152 22,584 3,496 482 115,807 54,483 Substandard 1,011 10,961 7,297 24,347 8,798 9,903 1,684 — 64,001 57,649 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 251,420 $ 433,043 $ 1,383,003 $ 834,750 $ 414,677 $ 568,536 $ 126,395 $ 17,847 $ 4,029,671 $ 4,071,807 Current period gross charge-offs $ — $ — $ — $ 527 $ — $ — $ — $ — $ 527 Commercial real estate construction and land development Pass $ 131,783 $ 230,901 $ 346,680 $ 78,893 $ 13,594 $ 9,635 $ 70,381 $ 3,468 $ 885,335 $ 1,032,789 Special Mention 4,815 4,262 8,610 5,274 — 1,441 380 — 24,782 9,737 Substandard 3,742 4,422 1,319 2,510 71 79 135 410 12,688 17,880 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 140,340 $ 239,585 $ 356,609 $ 86,677 $ 13,665 $ 11,155 $ 70,896 $ 3,878 $ 922,805 $ 1,060,406 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — June 30, 2024 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans 2024 2023 2022 2021 2020 Prior Total Total (In thousands) 1-4 family residential (including Pass $ 74,729 $ 160,702 $ 287,884 $ 208,701 $ 107,466 $ 123,150 $ 86,186 $ 12,841 $ 1,061,659 $ 1,011,743 Special Mention 911 1,173 1,244 1,099 1,958 1,192 — 150 7,727 5,384 Substandard 1,581 3,459 1,390 4,594 1,276 7,186 8,191 1,618 29,295 30,047 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 77,221 $ 165,334 $ 290,518 $ 214,394 $ 110,700 $ 131,528 $ 94,377 $ 14,609 $ 1,098,681 $ 1,047,174 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential construction Pass $ 87,896 $ 90,527 $ 18,709 $ 349 $ 275 $ — $ 1,047 $ — $ 198,803 $ 264,069 Special Mention 460 661 — — — — — — 1,121 — Substandard — 210 — — — — — — 210 3,288 Doubtful — — — — — — — — — — Total residential construction $ 88,356 $ 91,398 $ 18,709 $ 349 $ 275 $ — $ 1,047 $ — $ 200,134 $ 267,357 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other Pass $ 27,293 $ 13,251 $ 6,350 $ 2,146 $ 770 $ 481 $ 15,273 $ 744 $ 66,308 $ 63,881 Special Mention — — 28 18 — — — — 46 67 Substandard — 1 105 22 — 3 2 55 188 339 Doubtful — — — — — — — — — — Total consumer and other $ 27,293 $ 13,252 $ 6,483 $ 2,186 $ 770 $ 484 $ 15,275 $ 799 $ 66,542 $ 64,287 Current period gross charge-offs $ — $ 9 $ — $ 4 $ — $ — $ — $ 92 $ 105 Total loans Pass $ 714,961 $ 1,178,847 $ 2,206,258 $ 1,225,565 $ 530,850 $ 697,662 $ 781,854 $ 80,219 $ 7,416,216 $ 7,714,375 Special Mention 21,025 7,712 38,167 25,011 31,163 25,510 6,761 1,643 156,992 78,011 Substandard 6,819 21,681 14,048 32,158 10,613 28,962 12,520 13,843 140,644 132,699 Doubtful — 45 — — — — — — 45 48 Total loans $ 742,805 $ 1,208,285 $ 2,258,473 $ 1,282,734 $ 572,626 $ 752,134 $ 801,135 $ 95,705 $ 7,713,897 $ 7,925,133 Current period gross charge-offs $ — $ 43 $ 162 $ 775 $ 144 $ 40 $ 50 $ 228 $ 1,442 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for credit losses on loans by portfolio type for the three and six months ended June 30, 2024 and 2023: Commercial and industrial Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (In thousands) Allowance for credit losses on loans: Three Months Ended Balance March 31, 2024 $ 37,451 $ — $ 36,611 $ 14,052 $ 5,055 $ 2,695 $ 421 $ 96,285 Provision for credit losses on loans 1,225 — (714) (1,541) 174 (732) 74 (1,514) Charge-offs (501) — — — — — (100) (601) Recoveries 601 — — — 1 — — 602 Net recoveries 100 — — — 1 — (100) 1 Balance June 30, 2024 $ 38,776 $ — $ 35,897 $ 12,511 $ 5,230 $ 1,963 $ 395 $ 94,772 Six Months Ended Balance December 31, 2023 $ 31,979 $ — $ 38,187 $ 13,627 $ 4,785 $ 2,623 $ 483 $ 91,684 Provision for credit losses on loans 6,892 — (1,763) (1,116) 439 (660) 9 3,801 Charge-offs (810) — (527) — — — (105) (1,442) Recoveries 715 — — — 6 — 8 729 Net charge-offs (95) — (527) — 6 — (97) (713) Balance June 30, 2024 $ 38,776 $ — $ 35,897 $ 12,511 $ 5,230 $ 1,963 $ 395 $ 94,772 Three Months Ended Balance March 31, 2023 $ 39,516 $ — $ 37,700 $ 13,579 $ 2,832 $ 2,089 $ 472 $ 96,188 Provision for credit losses on loans (814) — 1,263 921 1,946 991 (64) 4,243 Charge-offs (1,058) — — — (23) — (30) (1,111) Recoveries 861 — — — 2 — 12 875 Net charge-offs (197) — — — (21) — (18) (236) Balance June 30, 2023 $ 38,505 $ — $ 38,963 $ 14,500 $ 4,757 $ 3,080 $ 390 $ 100,195 Six Months Ended Balance December 31, 2022 $ 41,236 $ — $ 32,970 $ 14,121 $ 2,709 $ 1,796 $ 348 $ 93,180 Provision for credit losses on loans (2,316) — 5,979 379 2,062 1,284 55 7,443 Charge-offs (1,484) — — — (23) — (38) (1,545) Recoveries 1,069 — 14 — 9 — 25 1,117 Net charge-offs (415) — 14 — (14) — (13) (428) Balance June 30, 2023 $ 38,505 $ — $ 38,963 $ 14,500 $ 4,757 $ 3,080 $ 390 $ 100,195 |
Schedule of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses | The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of June 30, 2024 and December 31, 2023: June 30, 2024 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ — $ — $ — Real estate: Commercial real estate (including multi-family residential) 5,955 — — 5,955 Commercial real estate construction and land development 1,179 — — 1,179 1-4 family residential (including home equity) 1,027 — — 1,027 Residential construction — — — — Consumer and other — — — — Total $ 8,161 $ — $ — $ 8,161 December 31, 2023 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ 70 $ — $ 70 Real estate: Commercial real estate (including multi-family residential) 5,548 — — 5,548 Commercial real estate construction and land development 437 — — 437 1-4 family residential (including home equity) 424 — — 424 Residential construction — — — — Consumer and other — — — — Total $ 6,409 $ 70 $ — $ 6,479 |
Schedule of Nonaccrual Loans | The following tables present additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of June 30, 2024 and December 31, 2023. June 30, 2024 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 1,027 $ 17,421 $ 18,448 Paycheck Protection Program (PPP) 3 — 3 Real estate: Commercial real estate (including multi-family residential) 13,842 4,252 18,094 Commercial real estate construction and land development 899 742 1,641 1-4 family residential (including home equity) 8,068 4,386 12,454 Residential construction 155 — 155 Consumer and other 28 83 111 Total loans $ 24,022 $ 26,884 50,906 December 31, 2023 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 1,616 $ 3,432 $ 5,048 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 11,844 4,855 16,699 Commercial real estate construction and land development 5,043 — 5,043 1-4 family residential (including home equity) 7,400 1,474 8,874 Residential construction 3,288 — 3,288 Consumer and other 54 185 239 Total loans $ 29,245 $ 9,946 $ 39,191 |
Schedule of Troubled Debt Restructurings on Financing Receivables | The following tables present information regarding loans that were modified due to the borrowers experiencing financial difficulty during the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ 103 $ — $ — $ — $ 407 $ 510 Real estate: Commercial real estate (including multi-family residential) — — — — 1,496 1,496 Commercial real estate construction and land development — — — — — — — 1-4 family residential (including home equity) — — — — — — — Residential construction — — — — — — Consumer and other — — — — — — — Total $ — $ 103 $ — $ — $ — $ 1,903 $ 2,006 Six Months Ended June 30, 2024 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ 1,163 $ 813 $ — $ — $ 875 $ 2,851 Real estate: Commercial real estate (including multi-family residential) — — 1,768 — — 1,496 3,264 Commercial real estate construction and land development — 2,068 — — — 2,269 4,337 1-4 family residential (including home equity) — — 1,797 — — 281 2,078 Residential construction — 55 — — — — 55 Consumer and other — — — — — — — Total $ — $ 3,286 $ 4,378 $ — $ — $ 4,921 $ 12,585 Three Months Ended June 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ — $ — $ — $ — $ 260 $ 260 Real estate: Commercial real estate (including multi-family residential) — — — — — 1,710 1,710 Commercial real estate construction and land development — 6,950 — — — — 6,950 1-4 family residential (including home equity) — — — — — — — Residential construction — — — — — — — Consumer and other — 96 — — — — 96 Total $ — $ 7,046 $ — $ — $ — $ 1,970 $ 9,016 Six Months Ended June 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal Forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ 92 $ 2,251 $ — $ — $ — $ 260 $ 2,603 Real estate: Commercial real estate (including multi-family residential) — — 790 — — 1,710 2,500 Commercial real estate construction and land development — 6,950 — — — — 6,950 1-4 family residential (including home equity) — 721 — — — — 721 Residential construction — — — — — — — Consumer and other — 96 — — — — 96 Total $ 92 $ 10,018 $ 790 $ — $ — $ 1,970 $ 12,870 The following table summarizes, by loan portfolio, the financial effect of the Company’s loan modifications for the periods indicated: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Weighted-Average Term Extension Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Interest Rate Reduction (months) (months) Commercial and industrial 6 0.0 % 12 0.0 % Real estate: Commercial real estate (including multi-family residential) — 0.0 % 12 0.0 % Commercial real estate construction and land development — 0.0 % 12 0.0 % 1-4 family residential (including home equity) — 0.0 % — 0.0 % Residential construction — 0.0 % — 0.0 % Consumer and other — 0.0 % 4 0.0 % Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Weighted-Average Term Extension Weighted-Average Interest Rate Reduction Weighted-Average Term Extension Weighted-Average Interest Rate Reduction (months) (months) Commercial and industrial 4 0.0 % 12 2.0 % Real estate: Commercial real estate (including multi-family residential) — 0.0 % 12 0.0 % Commercial real estate construction and land development 5 0.0 % 12 0.0 % 1-4 family residential (including home equity) — 0.0 % 12 0.0 % Residential construction 6 0.0 % — 0.0 % Consumer and other — 0.0 % 4 0.0 % The following table summarizes modified loans that had a payment default, determined as 90 or more days past due, within the past twelve months that were modified due to the borrowers experiencing financial difficulty during the periods indicated: Twelve Months Ended June 30, 2024 Twelve Months Ended June 30, 2023 Term Extension Payment Delay Interest Rate Reduction Term Extension Payment Delay Interest Rate Reduction (In thousands) Commercial and industrial $ 1,047 $ 814 $ — $ 670 $ — $ 92 Real estate: Commercial real estate (including multi-family residential) — — — — — — Commercial real estate construction and land development 1,703 — — — — — 1-4 family residential (including home equity) — — — 721 — — Residential construction — — — — — — Consumer and other — — — — — — $ 2,750 $ 814 $ — $ 1,391 $ — $ 92 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | Supplemental lease information at the dates indicated was as follows: June 30, 2024 December 31, 2023 (Dollars in thousands) Balance Sheet: Operating lease right-of-use asset classified as premises and equipment $ 18,484 $ 20,746 Operating lease liability classified as other liabilities $ 18,964 $ 20,659 Weighted average lease term, in years 7.53 7.67 Weighted average discount rate 4.24 % 4.17 % |
Schedule of Lease Costs | Lease costs for the dates indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Income Statement: Operating lease cost $ 2,095 $ 1,579 $ 4,038 $ 3,393 Short-term lease cost 6 10 11 15 Total operating lease costs $ 2,101 $ 1,589 $ 4,049 $ 3,408 |
Schedule of Maturity Analysis of Lease Liabilities | The following table summarizes the contractual maturity of the Company’s lease liabilities as of the dates indicated below: June 30, 2024 December 31, 2023 (In thousands) Lease payments due: Within one year $ 2,036 $ 4,428 After one but within two years 4,255 3,978 After two but within three years 3,748 3,430 After three but within four years 3,578 3,227 After four but within five years 3,414 3,047 After five years 6,845 6,605 Total lease payments 23,876 24,715 Less: discount on cash flows (4,912) (4,056) Total lease liability $ 18,964 $ 20,659 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet were as follows: June 30, 2024 Carrying Estimated Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 490,250 $ 490,250 $ — $ — $ 490,250 Available for sale securities 1,630,971 — 1,630,971 — 1,630,971 Loans held for investment, net of allowance 7,619,125 — — 7,396,330 7,396,330 Accrued interest receivable 43,348 159 7,042 36,147 43,348 Financial liabilities Deposits $ 8,725,303 $ — $ 8,719,835 $ — $ 8,719,835 Accrued interest payable 12,327 — 12,327 — 12,327 Borrowed funds 240,000 — 240,000 — 240,000 Subordinated debt 109,964 — 108,402 — 108,402 December 31, 2023 Carrying Estimated Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 399,237 $ 399,237 $ — $ — $ 399,237 Available for sale securities 1,395,680 — 1,395,680 — 1,395,680 Loans held for investment, net of allowance 7,833,449 — — 7,627,962 7,627,962 Accrued interest receivable 44,244 118 6,716 37,410 44,244 Financial liabilities Deposits $ 8,873,467 $ — $ 8,866,645 $ — $ 8,866,645 Accrued interest payable 11,288 — 11,288 — 11,288 Borrowed funds 50,000 — 50,000 — 50,000 Subordinated debt 109,765 — 109,390 — 109,390 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present fair values for assets and liabilities measured at fair value on a recurring basis. June 30, 2024 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 282,170 $ — $ 282,170 Municipal securities — 194,609 — 194,609 Agency mortgage-backed pass-through securities — 433,182 — 433,182 Agency collateralized mortgage obligations — 621,845 — 621,845 Corporate bonds and other — 99,165 — 99,165 Interest rate swaps — 6,926 — 6,926 Credit risk participation agreements — — 13 13 Total fair value of financial assets $ — $ 1,637,897 $ 13 $ 1,637,910 Financial liabilities Interest rate swaps $ — $ 6,926 $ — $ 6,926 Total fair value of financial liabilities $ — $ 6,926 $ — $ 6,926 December 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 297,418 $ — $ 297,418 Municipal securities — 204,059 — 204,059 Agency mortgage-backed pass-through securities — 387,873 — 387,873 Agency collateralized mortgage obligations — 398,117 — 398,117 Corporate bonds and other — 108,213 — 108,213 Interest rate swaps — 6,692 — 6,692 Credit risk participation agreements — — 20 20 Total fair value of financial assets $ — $ 1,402,372 $ 20 $ 1,402,392 Financial liabilities Interest rate swaps $ — $ 6,692 $ — $ 6,692 Total fair value of financial liabilities $ — $ 6,692 $ — $ 6,692 |
Schedule of Fair Value Measurements, Nonrecurring | Assets measured on a nonrecurring basis for the periods noted are summarized in the table below. June 30, 2024 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 17,415 Commercial real estate (including multi-family residential) — — 5,302 Commercial real estate construction and land development — — 2,094 1-4 family residential (including home equity) — — 6,287 Residential construction — — — Consumer and other — — 102 $ — $ — $ 31,200 December 31, 2023 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 10,084 Commercial real estate (including multi-family residential) — — 7,134 Commercial real estate construction and land development — — 6,654 1-4 family residential (including home equity) — — 3,892 Consumer and other — — 106 Branch assets held for sale (1) 2,033 — — $ 2,033 $ — $ 27,870 (1) Branch assets held for sale are banking centers that closed and were for sale. |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposit Liabilities [Abstract] | |
Schedule of Maturities of Time Deposits | Scheduled maturities of time deposits as of June 30, 2024 were as follows (in thousands): 2024 $ 961,610 2025 541,579 2026 56,779 2027 42,710 Thereafter 36,748 Total $ 1,639,426 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Not Designated as Hedging Instruments | Derivative instruments not designated as hedges outstanding as of the periods indicated below were as follows (dollars in thousands): June 30, 2024 Classification Notional Amounts Fair Value Fixed Rate Floating Rate Weighted Average Maturity (Years) Interest rate swaps: Financial institutions Other assets $ 66,889 $ 6,580 3.50% - 5.40% SOFR 1M + 2.50% - 3.00% 6.18 Financial institutions Other assets 4,849 346 4.99% U.S. Prime 3.46 Customers Other liabilities 4,849 (346) 4.99% U.S. Prime 3.46 Customers Other liabilities 66,889 (6,580) 3.50% - 5.40% SOFR 1M + 2.50% - 3.00% 6.18 Credit risk participation agreements: Financial institutions Other assets 20,348 13 3.50% - 5.40% SOFR 1M + 2.50% 6.82 December 31, 2023 Classification Notional Amounts Fair Value Fixed Rate Floating Rate Weighted Average Maturity (Years) Interest rate swaps: Financial institutions Other assets $ 104,930 $ 6,367 3.25% - 5.58% SOFR 1M + 2.50% - 3.00% 4.51 Financial institutions Other assets 4,911 295 4.99% U.S. Prime 3.96 Customers Other assets 4,875 30 6.25% SOFR 1M + 2.50% 4.04 Financial institutions Other liabilities 4,875 (30) 6.25% SOFR 1M + 2.50% 4.04 Customers Other liabilities 4,911 (295) 4.99% U.S. Prime 3.96 Customers Other liabilities 104,930 (6,367) 3.25% - 5.58% SOFR 1M + 2.50% - 3.00% 4.51 Credit risk participation agreements: Financial institutions Other assets $ 20,758 $ 20 3.50% - 5.40% SOFR 1M + 2.50% 7.33 |
BORROWINGS AND BORROWING CAPA_2
BORROWINGS AND BORROWING CAPACITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-Term Debt | totaled $986.0 million, which expire in the following periods (in thousands): 2024 $ 97,915 2025 328,300 2026 57,300 2027 402,500 Thereafter 100,000 Total $ 986,015 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing | A summary of pertinent information related to Stellar’s junior subordinated debentures outstanding at June 30, 2024 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Junior Subordinated Debt Owed to Trusts Maturity Date (1) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3,609 July 7, 2035 $ 11,341 (1) All junior subordinated debentures were callable at June 30, 2024. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The amount of the Company’s income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Income tax expense $ 7,792 $ 7,467 $ 14,551 $ 17,380 Effective income tax rate 20.8 % 17.5 % 20.7 % 19.4 % |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity during the six months ended June 30, 2024 was as follows: Number of Weighted- Weighted- Aggregate (In thousands) (In years) (In thousands) Options outstanding, January 1, 2024 258 $ 18.56 2.09 $ 2,398 Options granted — — Options exercised (53) 15.05 Options forfeited (4) 14.11 Options outstanding, June 30, 2024 201 $ 19.57 1.96 $ 791 Options vested and exercisable, June 30, 2024 201 $ 19.57 1.96 $ 791 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Nonvested shares of restricted stock activity during the six months ended June 30, 2024 was as follows: Number of Weighted- (In thousands) Nonvested share awards outstanding, January 1, 2024 458 $ 29.38 Share awards granted 311 23.17 Share awards vested (85) 25.18 Unvested share awards forfeited or cancelled (45) 24.88 Nonvested share awards outstanding, June 30, 2024 639 $ 27.23 |
OFF-BALANCE SHEET ARRANGEMENT_2
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | The contractual amounts of financial instruments with off-balance sheet risk are as follows: June 30, 2024 December 31, 2023 Fixed Variable Fixed Variable (In thousands) Commitments to extend credit $ 314,420 $ 1,323,829 $ 367,068 $ 1,425,946 Standby letters of credit 13,807 25,331 16,147 21,514 Total $ 328,227 $ 1,349,160 $ 383,215 $ 1,447,460 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Regulatory Capital Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of June 30, 2024 and December 31, 2023: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well-Capitalized Under Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) STELLAR BANCORP, INC. (Consolidated) June 30, 2024 Total Capital (to risk-weighted assets) $ 1,283,125 15.34 % $ 669,072 8.00 % $ 878,157 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 1,085,328 12.98 % 376,353 4.50 % 585,438 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 1,095,226 13.10 % 501,804 6.00 % 710,889 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 1,095,226 10.93 % 400,889 4.00 % 400,889 4.00 % N/A N/A December 31, 2023 Total Capital (to risk-weighted assets) $ 1,221,060 14.02 % $ 696,529 8.00 % $ 914,195 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 1,025,076 11.77 % 391,798 4.50 % 604,463 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 1,034,974 11.89 % 522,397 6.00 % 740,062 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 1,034,974 10.18 % 406,859 4.00 % 406,859 4.00 % N/A N/A STELLAR BANK June 30, 2024 Total Capital (to risk-weighted assets) $ 1,223,208 14.65 % $ 668,098 8.00 % $ 876,879 10.50 % $ 835,123 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 1,095,348 13.12 % 375,805 4.50 % 584,586 7.00 % 542,830 6.50 % Tier 1 Capital (to risk-weighted assets) 1,095,348 13.12 % 501,074 6.00 % 709,854 8.50 % 668,098 8.00 % Tier 1 Leverage (to average tangible assets) 1,095,348 10.94 % 400,435 4.00 % 400,435 4.00 % 500,543 5.00 % December 31, 2023 Total Capital (to risk-weighted assets) $ 1,186,710 13.65 % $ 695,746 8.00 % $ 913,167 10.50 % $ 869,683 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 1,060,624 12.20 % 391,357 4.50 % 608,778 7.00 % 565,294 6.50 % Tier 1 Capital (to risk-weighted assets) 1,060,624 12.20 % 521,810 6.00 % 739,231 8.50 % 695,746 8.00 % Tier 1 Leverage (to average tangible assets) 1,060,624 10.44 % 406,453 4.00 % 406,453 4.00 % 508,066 5.00 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Restricted shares and performance share awards are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amount Per Share Amount Per Share Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to shareholders $ 29,753 $ 35,175 $ 55,900 $ 72,323 Basic: Weighted average shares outstanding 53,572 $ 0.56 53,297 $ 0.66 53,457 $ 1.05 53,160 $ 1.36 Diluted: Add incremental shares for: Dilutive effect of stock option exercises and performance share units 36 78 49 101 Total 53,608 $ 0.56 53,375 $ 0.66 53,506 $ 1.04 53,261 $ 1.36 |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) | Jun. 30, 2024 office |
New Accounting Pronouncement Early Adoption [Line Items] | |
Number of offices in which entity operates | 54 |
Houston Metropolitan | |
New Accounting Pronouncement Early Adoption [Line Items] | |
Number of offices in which entity operates | 37 |
Beaumont | |
New Accounting Pronouncement Early Adoption [Line Items] | |
Number of offices in which entity operates | 16 |
Dallas | |
New Accounting Pronouncement Early Adoption [Line Items] | |
Number of offices in which entity operates | 1 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Goodwill | |||||
Balance, beginning | $ 497,318 | $ 497,260 | $ 497,260 | ||
Amortization | 0 | 0 | |||
Goodwill true-up | 58 | ||||
Balance, ending | $ 497,318 | 497,318 | 497,318 | ||
Intangible Assets | |||||
Balance, beginning | 116,712 | ||||
Decrease due to payoff of serviced loans | (6,215) | $ (6,881) | (12,427) | (13,760) | |
Balance, ending | 104,315 | 104,315 | 116,712 | ||
Core Deposit Intangibles | |||||
Intangible Assets | |||||
Balance, beginning | 116,712 | 143,525 | 143,525 | ||
Amortization | (12,397) | (26,813) | |||
Decrease due to payoff of serviced loans | 0 | 0 | |||
Balance, ending | 104,315 | 104,315 | 116,712 | ||
Servicing Assets | |||||
Intangible Assets | |||||
Balance, beginning | 212 | $ 309 | 309 | ||
Amortization | (30) | (70) | |||
Decrease due to payoff of serviced loans | (4) | (27) | |||
Balance, ending | $ 178 | $ 178 | $ 212 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2024 | $ 11,769 | |
2025 | 21,528 | |
2026 | 18,896 | |
2027 | 16,272 | |
Thereafter | 35,850 | |
Total | $ 104,315 | $ 116,712 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,784,333 | $ 1,545,130 |
Gross Unrealized Gains | 1,471 | 2,303 |
Gross Unrealized Losses | (154,833) | (151,753) |
Fair Value | 1,630,971 | 1,395,680 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 290,354 | 307,529 |
Gross Unrealized Gains | 261 | 90 |
Gross Unrealized Losses | (8,445) | (10,201) |
Fair Value | 282,170 | 297,418 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 220,518 | 229,615 |
Gross Unrealized Gains | 869 | 1,615 |
Gross Unrealized Losses | (26,778) | (27,171) |
Fair Value | 194,609 | 204,059 |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 473,300 | 424,664 |
Gross Unrealized Gains | 61 | 370 |
Gross Unrealized Losses | (40,179) | (37,161) |
Fair Value | 433,182 | 387,873 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 688,587 | 462,498 |
Gross Unrealized Gains | 257 | 172 |
Gross Unrealized Losses | (66,999) | (64,553) |
Fair Value | 621,845 | 398,117 |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 111,574 | 120,824 |
Gross Unrealized Gains | 23 | 56 |
Gross Unrealized Losses | (12,432) | (12,667) |
Fair Value | $ 99,165 | $ 108,213 |
SECURITIES - Amortized Cost a_2
SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 76,080 | |
Due after one year through five years | 82,426 | |
Due after five years through ten years | 130,626 | |
Due after ten years | 333,314 | |
Subtotal | 622,446 | |
Agency mortgage-backed pass-through securities and collateralized mortgage obligations | 1,161,887 | |
Amortized Cost | 1,784,333 | $ 1,545,130 |
Fair Value | ||
Due in one year or less | 74,852 | |
Due after one year through five years | 78,174 | |
Due after five years through ten years | 115,122 | |
Due after ten years | 307,796 | |
Subtotal | 575,944 | |
Agency mortgage-backed pass-through securities and collateralized mortgage obligations | 1,055,027 | |
Fair Value | $ 1,630,971 | $ 1,395,680 |
SECURITIES - Securities in a Co
SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | $ 368,333 | $ 225,879 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (6,866) | (5,739) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 1,083,379 | 1,024,020 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (147,967) | (146,014) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 1,451,712 | 1,249,899 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (154,833) | (151,753) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 23,505 | 110,038 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (233) | (2,208) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 217,429 | 154,145 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (8,212) | (7,993) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 240,934 | 264,183 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (8,445) | (10,201) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 5,249 | 1,303 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (111) | (14) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 170,568 | 177,957 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (26,667) | (27,157) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 175,817 | 179,260 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (26,778) | (27,171) |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 109,961 | 80,208 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1,868) | (1,444) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 291,919 | 257,779 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (38,311) | (35,717) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 401,880 | 337,987 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (40,179) | (37,161) |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 222,596 | 23,051 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2,072) | (621) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 323,436 | 348,854 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (64,927) | (63,932) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 546,032 | 371,905 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (66,999) | (64,553) |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 7,022 | 11,279 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2,582) | (1,452) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 80,027 | 85,285 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (9,850) | (11,215) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 87,049 | 96,564 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | $ (12,432) | $ (12,667) |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of available for sale securities | $ 6,900 | $ 320,700 | |
Realized gains | $ 234 | ||
Security owned and pledged as collateral, associated liabilities, fair value | $ 612,900 | $ 607,500 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | $ 7,713,897 | $ 7,925,133 | ||||
Allowance for credit losses on loans | (94,772) | $ (96,285) | (91,684) | $ (100,195) | $ (96,188) | $ (93,180) |
Loans, net | 7,619,125 | 7,833,449 | ||||
Commercial and industrial | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 1,392,435 | 1,409,002 | ||||
Allowance for credit losses on loans | (38,776) | (37,451) | (31,979) | (38,505) | (39,516) | (41,236) |
Paycheck Protection Program (PPP) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 3,629 | 5,100 | ||||
Allowance for credit losses on loans | 0 | 0 | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 4,029,671 | 4,071,807 | ||||
Allowance for credit losses on loans | (35,897) | (36,611) | (38,187) | (38,963) | (37,700) | (32,970) |
Real estate: | Commercial real estate construction and land development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 922,805 | 1,060,406 | ||||
Allowance for credit losses on loans | (12,511) | (14,052) | (13,627) | (14,500) | (13,579) | (14,121) |
Real estate: | 1-4 family residential (including home equity) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 1,098,681 | 1,047,174 | ||||
Allowance for credit losses on loans | (5,230) | (5,055) | (4,785) | (4,757) | (2,832) | (2,709) |
Real estate: | Residential construction | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 200,134 | 267,357 | ||||
Allowance for credit losses on loans | (1,963) | (2,695) | (2,623) | (3,080) | (2,089) | (1,796) |
Consumer and other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 66,542 | 64,287 | ||||
Allowance for credit losses on loans | $ (395) | $ (421) | $ (483) | $ (390) | $ (472) | $ (348) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 7,713,897 | $ 7,925,133 |
Nonaccrual Loans | 50,906 | 39,191 |
30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 41,715 | 27,466 |
90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 41,715 | 27,466 |
Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 7,621,276 | 7,858,476 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,392,435 | 1,409,002 |
Nonaccrual Loans | 18,448 | 5,048 |
Commercial and industrial | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 6,271 | 6,096 |
Commercial and industrial | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial and industrial | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 6,271 | 6,096 |
Commercial and industrial | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,367,716 | 1,397,858 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,629 | 5,100 |
Nonaccrual Loans | 3 | 0 |
Paycheck Protection Program (PPP) | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 429 | 375 |
Paycheck Protection Program (PPP) | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Paycheck Protection Program (PPP) | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 429 | 375 |
Paycheck Protection Program (PPP) | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,197 | 4,725 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,029,671 | 4,071,807 |
Nonaccrual Loans | 18,094 | 16,699 |
Real estate: | Commercial real estate (including multi-family residential) | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 16,806 | 9,600 |
Real estate: | Commercial real estate (including multi-family residential) | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 16,806 | 9,600 |
Real estate: | Commercial real estate (including multi-family residential) | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,994,771 | 4,045,508 |
Real estate: | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 922,805 | 1,060,406 |
Nonaccrual Loans | 1,641 | 5,043 |
Real estate: | Commercial real estate construction and land development | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 14,276 | 7,341 |
Real estate: | Commercial real estate construction and land development | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 14,276 | 7,341 |
Real estate: | Commercial real estate construction and land development | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 906,888 | 1,048,022 |
Real estate: | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,098,681 | 1,047,174 |
Nonaccrual Loans | 12,454 | 8,874 |
Real estate: | 1-4 family residential (including home equity) | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 2,660 | 3,492 |
Real estate: | 1-4 family residential (including home equity) | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 2,660 | 3,492 |
Real estate: | 1-4 family residential (including home equity) | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,083,567 | 1,034,808 |
Real estate: | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 200,134 | 267,357 |
Nonaccrual Loans | 155 | 3,288 |
Real estate: | Residential construction | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,193 | 498 |
Real estate: | Residential construction | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | Residential construction | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,193 | 498 |
Real estate: | Residential construction | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 198,786 | 263,571 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 66,542 | 64,287 |
Nonaccrual Loans | 111 | 239 |
Consumer and other | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 80 | 64 |
Consumer and other | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Consumer and other | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 80 | 64 |
Consumer and other | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 66,351 | $ 63,984 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Ratings by Category of Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | $ 742,805 | |
Origination Year, 2023 | 1,208,285 | |
Origination Year, 2022 | 2,258,473 | |
Origination Year, 2021 | 1,282,734 | |
Origination Year, 2020 | 572,626 | |
Origination Year, Prior | 752,134 | |
Revolving Loans | 801,135 | |
Revolving Loans Converted to Term Loans | 95,705 | |
Total loans | 7,713,897 | $ 7,925,133 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 43 | |
Origination Year, 2022 | 162 | |
Origination Year, 2021 | 775 | |
Origination Year, 2020 | 144 | |
Origination Year, Prior | 40 | |
Revolving Loans | 50 | |
Revolving Loans Converted to Term Loans | 228 | |
Current-period gross charge-offs, Total | 1,442 | |
Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 714,961 | |
Origination Year, 2023 | 1,178,847 | |
Origination Year, 2022 | 2,206,258 | |
Origination Year, 2021 | 1,225,565 | |
Origination Year, 2020 | 530,850 | |
Origination Year, Prior | 697,662 | |
Revolving Loans | 781,854 | |
Revolving Loans Converted to Term Loans | 80,219 | |
Total loans | 7,416,216 | 7,714,375 |
Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 21,025 | |
Origination Year, 2023 | 7,712 | |
Origination Year, 2022 | 38,167 | |
Origination Year, 2021 | 25,011 | |
Origination Year, 2020 | 31,163 | |
Origination Year, Prior | 25,510 | |
Revolving Loans | 6,761 | |
Revolving Loans Converted to Term Loans | 1,643 | |
Total loans | 156,992 | 78,011 |
Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 6,819 | |
Origination Year, 2023 | 21,681 | |
Origination Year, 2022 | 14,048 | |
Origination Year, 2021 | 32,158 | |
Origination Year, 2020 | 10,613 | |
Origination Year, Prior | 28,962 | |
Revolving Loans | 12,520 | |
Revolving Loans Converted to Term Loans | 13,843 | |
Total loans | 140,644 | 132,699 |
Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 45 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 45 | 48 |
Commercial and industrial | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 158,175 | |
Origination Year, 2023 | 265,673 | |
Origination Year, 2022 | 203,151 | |
Origination Year, 2021 | 142,326 | |
Origination Year, 2020 | 30,962 | |
Origination Year, Prior | 40,431 | |
Revolving Loans | 493,145 | |
Revolving Loans Converted to Term Loans | 58,572 | |
Total loans | 1,392,435 | 1,409,002 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 34 | |
Origination Year, 2022 | 162 | |
Origination Year, 2021 | 244 | |
Origination Year, 2020 | 144 | |
Origination Year, Prior | 40 | |
Revolving Loans | 50 | |
Revolving Loans Converted to Term Loans | 136 | |
Current-period gross charge-offs, Total | 810 | |
Commercial and industrial | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 157,690 | |
Origination Year, 2023 | 262,432 | |
Origination Year, 2022 | 197,082 | |
Origination Year, 2021 | 141,074 | |
Origination Year, 2020 | 30,441 | |
Origination Year, Prior | 28,347 | |
Revolving Loans | 487,752 | |
Revolving Loans Converted to Term Loans | 45,801 | |
Total loans | 1,350,619 | 1,377,118 |
Commercial and industrial | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 568 | |
Origination Year, 2022 | 2,132 | |
Origination Year, 2021 | 567 | |
Origination Year, 2020 | 53 | |
Origination Year, Prior | 293 | |
Revolving Loans | 2,885 | |
Revolving Loans Converted to Term Loans | 1,011 | |
Total loans | 7,509 | 8,340 |
Commercial and industrial | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 485 | |
Origination Year, 2023 | 2,628 | |
Origination Year, 2022 | 3,937 | |
Origination Year, 2021 | 685 | |
Origination Year, 2020 | 468 | |
Origination Year, Prior | 11,791 | |
Revolving Loans | 2,508 | |
Revolving Loans Converted to Term Loans | 11,760 | |
Total loans | 34,262 | 23,496 |
Commercial and industrial | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 45 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 45 | 48 |
Paycheck Protection Program (PPP) | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 2,052 | |
Origination Year, 2020 | 1,577 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 3,629 | 5,100 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Paycheck Protection Program (PPP) | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 2,052 | |
Origination Year, 2020 | 1,577 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 3,629 | 5,100 |
Paycheck Protection Program (PPP) | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Paycheck Protection Program (PPP) | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Paycheck Protection Program (PPP) | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 251,420 | |
Origination Year, 2023 | 433,043 | |
Origination Year, 2022 | 1,383,003 | |
Origination Year, 2021 | 834,750 | |
Origination Year, 2020 | 414,677 | |
Origination Year, Prior | 568,536 | |
Revolving Loans | 126,395 | |
Revolving Loans Converted to Term Loans | 17,847 | |
Total loans | 4,029,671 | 4,071,807 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 527 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 527 | |
Real estate: | Commercial real estate (including multi-family residential) | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 235,570 | |
Origination Year, 2023 | 421,034 | |
Origination Year, 2022 | 1,349,553 | |
Origination Year, 2021 | 792,350 | |
Origination Year, 2020 | 376,727 | |
Origination Year, Prior | 536,049 | |
Revolving Loans | 121,215 | |
Revolving Loans Converted to Term Loans | 17,365 | |
Total loans | 3,849,863 | 3,959,675 |
Real estate: | Commercial real estate (including multi-family residential) | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 14,839 | |
Origination Year, 2023 | 1,048 | |
Origination Year, 2022 | 26,153 | |
Origination Year, 2021 | 18,053 | |
Origination Year, 2020 | 29,152 | |
Origination Year, Prior | 22,584 | |
Revolving Loans | 3,496 | |
Revolving Loans Converted to Term Loans | 482 | |
Total loans | 115,807 | 54,483 |
Real estate: | Commercial real estate (including multi-family residential) | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 1,011 | |
Origination Year, 2023 | 10,961 | |
Origination Year, 2022 | 7,297 | |
Origination Year, 2021 | 24,347 | |
Origination Year, 2020 | 8,798 | |
Origination Year, Prior | 9,903 | |
Revolving Loans | 1,684 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 64,001 | 57,649 |
Real estate: | Commercial real estate (including multi-family residential) | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 140,340 | |
Origination Year, 2023 | 239,585 | |
Origination Year, 2022 | 356,609 | |
Origination Year, 2021 | 86,677 | |
Origination Year, 2020 | 13,665 | |
Origination Year, Prior | 11,155 | |
Revolving Loans | 70,896 | |
Revolving Loans Converted to Term Loans | 3,878 | |
Total loans | 922,805 | 1,060,406 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Real estate: | Commercial real estate construction and land development | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 131,783 | |
Origination Year, 2023 | 230,901 | |
Origination Year, 2022 | 346,680 | |
Origination Year, 2021 | 78,893 | |
Origination Year, 2020 | 13,594 | |
Origination Year, Prior | 9,635 | |
Revolving Loans | 70,381 | |
Revolving Loans Converted to Term Loans | 3,468 | |
Total loans | 885,335 | 1,032,789 |
Real estate: | Commercial real estate construction and land development | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 4,815 | |
Origination Year, 2023 | 4,262 | |
Origination Year, 2022 | 8,610 | |
Origination Year, 2021 | 5,274 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 1,441 | |
Revolving Loans | 380 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 24,782 | 9,737 |
Real estate: | Commercial real estate construction and land development | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 3,742 | |
Origination Year, 2023 | 4,422 | |
Origination Year, 2022 | 1,319 | |
Origination Year, 2021 | 2,510 | |
Origination Year, 2020 | 71 | |
Origination Year, Prior | 79 | |
Revolving Loans | 135 | |
Revolving Loans Converted to Term Loans | 410 | |
Total loans | 12,688 | 17,880 |
Real estate: | Commercial real estate construction and land development | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 77,221 | |
Origination Year, 2023 | 165,334 | |
Origination Year, 2022 | 290,518 | |
Origination Year, 2021 | 214,394 | |
Origination Year, 2020 | 110,700 | |
Origination Year, Prior | 131,528 | |
Revolving Loans | 94,377 | |
Revolving Loans Converted to Term Loans | 14,609 | |
Total loans | 1,098,681 | 1,047,174 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Real estate: | 1-4 family residential (including home equity) | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 74,729 | |
Origination Year, 2023 | 160,702 | |
Origination Year, 2022 | 287,884 | |
Origination Year, 2021 | 208,701 | |
Origination Year, 2020 | 107,466 | |
Origination Year, Prior | 123,150 | |
Revolving Loans | 86,186 | |
Revolving Loans Converted to Term Loans | 12,841 | |
Total loans | 1,061,659 | 1,011,743 |
Real estate: | 1-4 family residential (including home equity) | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 911 | |
Origination Year, 2023 | 1,173 | |
Origination Year, 2022 | 1,244 | |
Origination Year, 2021 | 1,099 | |
Origination Year, 2020 | 1,958 | |
Origination Year, Prior | 1,192 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 150 | |
Total loans | 7,727 | 5,384 |
Real estate: | 1-4 family residential (including home equity) | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 1,581 | |
Origination Year, 2023 | 3,459 | |
Origination Year, 2022 | 1,390 | |
Origination Year, 2021 | 4,594 | |
Origination Year, 2020 | 1,276 | |
Origination Year, Prior | 7,186 | |
Revolving Loans | 8,191 | |
Revolving Loans Converted to Term Loans | 1,618 | |
Total loans | 29,295 | 30,047 |
Real estate: | 1-4 family residential (including home equity) | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | Residential construction | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 88,356 | |
Origination Year, 2023 | 91,398 | |
Origination Year, 2022 | 18,709 | |
Origination Year, 2021 | 349 | |
Origination Year, 2020 | 275 | |
Origination Year, Prior | 0 | |
Revolving Loans | 1,047 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 200,134 | 267,357 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Real estate: | Residential construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 87,896 | |
Origination Year, 2023 | 90,527 | |
Origination Year, 2022 | 18,709 | |
Origination Year, 2021 | 349 | |
Origination Year, 2020 | 275 | |
Origination Year, Prior | 0 | |
Revolving Loans | 1,047 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 198,803 | 264,069 |
Real estate: | Residential construction | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 460 | |
Origination Year, 2023 | 661 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 1,121 | 0 |
Real estate: | Residential construction | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 210 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 210 | 3,288 |
Real estate: | Residential construction | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Consumer and other | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 27,293 | |
Origination Year, 2023 | 13,252 | |
Origination Year, 2022 | 6,483 | |
Origination Year, 2021 | 2,186 | |
Origination Year, 2020 | 770 | |
Origination Year, Prior | 484 | |
Revolving Loans | 15,275 | |
Revolving Loans Converted to Term Loans | 799 | |
Total loans | 66,542 | 64,287 |
Current period gross charge-offs | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 9 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 4 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 92 | |
Current-period gross charge-offs, Total | 105 | |
Consumer and other | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 27,293 | |
Origination Year, 2023 | 13,251 | |
Origination Year, 2022 | 6,350 | |
Origination Year, 2021 | 2,146 | |
Origination Year, 2020 | 770 | |
Origination Year, Prior | 481 | |
Revolving Loans | 15,273 | |
Revolving Loans Converted to Term Loans | 744 | |
Total loans | 66,308 | 63,881 |
Consumer and other | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 28 | |
Origination Year, 2021 | 18 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 46 | 67 |
Consumer and other | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 1 | |
Origination Year, 2022 | 105 | |
Origination Year, 2021 | 22 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 3 | |
Revolving Loans | 2 | |
Revolving Loans Converted to Term Loans | 55 | |
Total loans | 188 | 339 |
Consumer and other | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Origination Year, 2024 | 0 | |
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Less: allowance for credit losses on loans | $ 94,772,000 | $ 100,195,000 | $ 94,772,000 | $ 100,195,000 | $ 91,684,000 | $ 96,285,000 | $ 96,188,000 | $ 93,180,000 |
Provision (reversal) for credit losses on loans | (1,514,000) | 4,243,000 | 3,801,000 | 7,443,000 | ||||
Non accrual loans interest income | $ 0 | 0 | ||||||
Concessions granted, percent to loan portfolio (less than) | 1% | |||||||
Unfunded Loan Commitment | ||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Less: allowance for credit losses on loans | 9,700,000 | $ 9,700,000 | $ 11,300,000 | |||||
Provision (reversal) for credit losses on loans | $ (421,000) | $ (2,300,000) | $ 1,600,000 | $ (1,900,000) |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Allowance for credit losses on loans: | ||||
Balance, beginning of period | $ 96,285 | $ 96,188 | $ 91,684 | $ 93,180 |
Provision for credit losses on loans | (1,514) | 4,243 | 3,801 | 7,443 |
Charge-offs | (601) | (1,111) | (1,442) | (1,545) |
Recoveries | 602 | 875 | 729 | 1,117 |
Net (charge off) recoveries | 1 | (236) | (713) | (428) |
Balance, end of period | 94,772 | 100,195 | 94,772 | 100,195 |
Commercial and industrial | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 37,451 | 39,516 | 31,979 | 41,236 |
Provision for credit losses on loans | 1,225 | (814) | 6,892 | (2,316) |
Charge-offs | (501) | (1,058) | (810) | (1,484) |
Recoveries | 601 | 861 | 715 | 1,069 |
Net (charge off) recoveries | 100 | (197) | (95) | (415) |
Balance, end of period | 38,776 | 38,505 | 38,776 | 38,505 |
Paycheck Protection Program (PPP) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Provision for credit losses on loans | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge off) recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 36,611 | 37,700 | 38,187 | 32,970 |
Provision for credit losses on loans | (714) | 1,263 | (1,763) | 5,979 |
Charge-offs | 0 | 0 | (527) | 0 |
Recoveries | 0 | 0 | 0 | 14 |
Net (charge off) recoveries | 0 | 0 | (527) | 14 |
Balance, end of period | 35,897 | 38,963 | 35,897 | 38,963 |
Real estate: | Commercial real estate construction and land development | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 14,052 | 13,579 | 13,627 | 14,121 |
Provision for credit losses on loans | (1,541) | 921 | (1,116) | 379 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge off) recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 12,511 | 14,500 | 12,511 | 14,500 |
Real estate: | 1-4 family residential (including home equity) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 5,055 | 2,832 | 4,785 | 2,709 |
Provision for credit losses on loans | 174 | 1,946 | 439 | 2,062 |
Charge-offs | 0 | (23) | 0 | (23) |
Recoveries | 1 | 2 | 6 | 9 |
Net (charge off) recoveries | 1 | (21) | 6 | (14) |
Balance, end of period | 5,230 | 4,757 | 5,230 | 4,757 |
Real estate: | Residential construction | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 2,695 | 2,089 | 2,623 | 1,796 |
Provision for credit losses on loans | (732) | 991 | (660) | 1,284 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (charge off) recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 1,963 | 3,080 | 1,963 | 3,080 |
Consumer and other | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 421 | 472 | 483 | 348 |
Provision for credit losses on loans | 74 | (64) | 9 | 55 |
Charge-offs | (100) | (30) | (105) | (38) |
Recoveries | 0 | 12 | 8 | 25 |
Net (charge off) recoveries | (100) | (18) | (97) | (13) |
Balance, end of period | $ 395 | $ 390 | $ 395 | $ 390 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | $ 8,161 | $ 6,479 |
Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 8,161 | 6,409 |
Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 70 |
Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Commercial and industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 70 |
Commercial and industrial | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Commercial and industrial | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 70 |
Commercial and industrial | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 5,955 | 5,548 |
Real estate: | Commercial real estate (including multi-family residential) | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 5,955 | 5,548 |
Real estate: | Commercial real estate (including multi-family residential) | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 1,179 | 437 |
Real estate: | Commercial real estate construction and land development | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 1,179 | 437 |
Real estate: | Commercial real estate construction and land development | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 1,027 | 424 |
Real estate: | 1-4 family residential (including home equity) | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 1,027 | 424 |
Real estate: | 1-4 family residential (including home equity) | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | $ 24,022 | $ 29,245 |
Nonaccrual Loans with Related Allowance | 26,884 | 9,946 |
Total Nonaccrual Loans | 50,906 | 39,191 |
Commercial and industrial | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 1,027 | 1,616 |
Nonaccrual Loans with Related Allowance | 17,421 | 3,432 |
Total Nonaccrual Loans | 18,448 | 5,048 |
Paycheck Protection Program (PPP) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 3 | 0 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 3 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 13,842 | 11,844 |
Nonaccrual Loans with Related Allowance | 4,252 | 4,855 |
Total Nonaccrual Loans | 18,094 | 16,699 |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 899 | 5,043 |
Nonaccrual Loans with Related Allowance | 742 | 0 |
Total Nonaccrual Loans | 1,641 | 5,043 |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 8,068 | 7,400 |
Nonaccrual Loans with Related Allowance | 4,386 | 1,474 |
Total Nonaccrual Loans | 12,454 | 8,874 |
Real estate: | Residential construction | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 155 | 3,288 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 155 | 3,288 |
Consumer and other | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 28 | 54 |
Nonaccrual Loans with Related Allowance | 83 | 185 |
Total Nonaccrual Loans | $ 111 | $ 239 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | $ 2,006 | $ 9,016 | $ 12,585 | $ 12,870 |
Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 92 |
Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 103 | 7,046 | 3,286 | 10,018 |
Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 4,378 | 790 |
Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 1,903 | 1,970 | 4,921 | 1,970 |
Commercial and industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 510 | 260 | 2,851 | 2,603 |
Commercial and industrial | Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 92 |
Commercial and industrial | Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 103 | 0 | 1,163 | 2,251 |
Commercial and industrial | Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 813 | 0 |
Commercial and industrial | Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Commercial and industrial | Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Commercial and industrial | Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 407 | 260 | 875 | 260 |
Real estate: | Commercial real estate (including multi-family residential) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 1,496 | 1,710 | 3,264 | 2,500 |
Real estate: | Commercial real estate (including multi-family residential) | Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | |
Real estate: | Commercial real estate (including multi-family residential) | Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 1,768 | 790 |
Real estate: | Commercial real estate (including multi-family residential) | Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 1,496 | 1,710 | 1,496 | 1,710 |
Real estate: | Commercial real estate construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 6,950 | 4,337 | 6,950 |
Real estate: | Commercial real estate construction and land development | Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 6,950 | 2,068 | 6,950 |
Real estate: | Commercial real estate construction and land development | Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 2,269 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 2,078 | 721 |
Real estate: | 1-4 family residential (including home equity) | Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 721 |
Real estate: | 1-4 family residential (including home equity) | Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 1,797 | 0 |
Real estate: | 1-4 family residential (including home equity) | Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 281 | 0 |
Real estate: | Residential construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 55 | 0 |
Real estate: | Residential construction | Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Residential construction | Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 55 | 0 |
Real estate: | Residential construction | Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Residential construction | Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Residential construction | Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Real estate: | Residential construction | Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | |
Consumer and other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 96 | 0 | 96 |
Consumer and other | Interest Rate Reduction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Consumer and other | Term Extension | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 96 | 0 | 96 |
Consumer and other | Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Consumer and other | Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Consumer and other | Combination Term Extension and Principal Forgiveness | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | 0 | 0 | 0 | 0 |
Consumer and other | Combination Term Extension and Payment Delay | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Financing receivable, modified period | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Financial Effects of Loans Modified (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted-Average Term Extension | 6 months | 12 months | 4 months | 12 months |
Weighted-Average Interest Rate Reduction | 0% | 0% | 0% | 2% |
Real estate: | Commercial real estate (including multi-family residential) | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted-Average Term Extension | 12 months | 12 months | ||
Weighted-Average Interest Rate Reduction | 0% | 0% | 0% | 0% |
Real estate: | Commercial real estate construction and land development | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted-Average Term Extension | 12 months | 5 months | 12 months | |
Weighted-Average Interest Rate Reduction | 0% | 0% | 0% | 0% |
Real estate: | 1-4 family residential (including home equity) | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted-Average Term Extension | 12 months | |||
Weighted-Average Interest Rate Reduction | 0% | 0% | 0% | 0% |
Real estate: | Residential construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted-Average Term Extension | 6 months | |||
Weighted-Average Interest Rate Reduction | 0% | 0% | 0% | 0% |
Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted-Average Term Extension | 4 months | 4 months | ||
Weighted-Average Interest Rate Reduction | 0% | 0% | 0% | 0% |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loans with Payment Default, Modified (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | $ 2,750 | $ 1,391 |
Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 814 | 0 |
Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 92 |
Commercial and industrial | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 1,047 | 670 |
Commercial and industrial | Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 814 | 0 |
Commercial and industrial | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 92 |
Real estate: | Commercial real estate (including multi-family residential) | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 1,703 | 0 |
Real estate: | Commercial real estate construction and land development | Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 721 |
Real estate: | 1-4 family residential (including home equity) | Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Residential construction | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Residential construction | Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Real estate: | Residential construction | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Consumer and other | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Consumer and other | Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | 0 | 0 |
Consumer and other | Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost basis, subsequent default loans | $ 0 | $ 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 lease | |
Leases [Abstract] | |
Number of leased branch locations and office space along with equipment | 32 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet: | ||
Operating lease right-of-use asset classified as premises and equipment | $ 18,484 | $ 20,746 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Premises and equipment, net | Premises and equipment, net |
Operating lease liability classified as other liabilities | $ 18,964 | $ 20,659 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Weighted average lease term, in years | 7 years 6 months 10 days | 7 years 8 months 1 day |
Weighted average discount rate | 4.24% | 4.17% |
LEASES - Summary of Lease Costs
LEASES - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement: | ||||
Operating lease cost | $ 2,095 | $ 1,579 | $ 4,038 | $ 3,393 |
Short-term lease cost | 6 | 10 | 11 | 15 |
Total operating lease costs | $ 2,101 | $ 1,589 | $ 4,049 | $ 3,408 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Lease payments due: | ||
Within one year | $ 2,036 | $ 4,428 |
After one but within two years | 4,255 | 3,978 |
After two but within three years | 3,748 | 3,430 |
After three but within four years | 3,578 | 3,227 |
After four but within five years | 3,414 | 3,047 |
After five years | 6,845 | 6,605 |
Total lease payments | 23,876 | 24,715 |
Less: discount on cash flows | (4,912) | (4,056) |
Total lease liability | $ 18,964 | $ 20,659 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 1,630,971 | $ 1,395,680 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 490,250 | 399,237 |
Available for sale securities | 1,630,971 | 1,395,680 |
Loans held for investment, net of allowance | 7,619,125 | 7,833,449 |
Accrued interest receivable | 43,348 | 44,244 |
Deposits | 8,725,303 | 8,873,467 |
Accrued interest payable | 12,327 | 11,288 |
Borrowed funds | 240,000 | 50,000 |
Subordinated debt | 109,964 | 109,765 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 490,250 | 399,237 |
Available for sale securities | 1,630,971 | 1,395,680 |
Loans held for investment, net of allowance | 7,396,330 | 7,627,962 |
Accrued interest receivable | 43,348 | 44,244 |
Deposits | 8,719,835 | 8,866,645 |
Accrued interest payable | 12,327 | 11,288 |
Borrowed funds | 240,000 | 50,000 |
Subordinated debt | 108,402 | 109,390 |
Estimated Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 490,250 | 399,237 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 159 | 118 |
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 1,630,971 | 1,395,680 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 7,042 | 6,716 |
Deposits | 8,719,835 | 8,866,645 |
Accrued interest payable | 12,327 | 11,288 |
Borrowed funds | 240,000 | 50,000 |
Subordinated debt | 108,402 | 109,390 |
Estimated Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 7,396,330 | 7,627,962 |
Accrued interest receivable | 36,147 | 37,410 |
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | $ 0 | $ 0 |
FAIR VALUE - Fair Values for As
FAIR VALUE - Fair Values for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets | ||
Fair Value | $ 1,630,971 | $ 1,395,680 |
U.S. government and agency securities | ||
Financial assets | ||
Fair Value | 282,170 | 297,418 |
Municipal securities | ||
Financial assets | ||
Fair Value | 194,609 | 204,059 |
Agency mortgage-backed pass-through securities | ||
Financial assets | ||
Fair Value | 433,182 | 387,873 |
Agency collateralized mortgage obligations | ||
Financial assets | ||
Fair Value | 621,845 | 398,117 |
Corporate bonds and other | ||
Financial assets | ||
Fair Value | 99,165 | 108,213 |
Recurring Basis | ||
Financial assets | ||
Total fair value of financial assets | 1,637,910 | 1,402,392 |
Financial liabilities | ||
Total fair value of financial liabilities | 6,926 | 6,692 |
Recurring Basis | Interest rate swaps | ||
Financial liabilities | ||
Interest rate swaps | 6,926 | 6,692 |
Recurring Basis | Level 1 | ||
Financial assets | ||
Total fair value of financial assets | 0 | 0 |
Financial liabilities | ||
Total fair value of financial liabilities | 0 | 0 |
Recurring Basis | Level 1 | Interest rate swaps | ||
Financial liabilities | ||
Interest rate swaps | 0 | 0 |
Recurring Basis | Level 2 | ||
Financial assets | ||
Total fair value of financial assets | 1,637,897 | 1,402,372 |
Financial liabilities | ||
Total fair value of financial liabilities | 6,926 | 6,692 |
Recurring Basis | Level 2 | Interest rate swaps | ||
Financial liabilities | ||
Interest rate swaps | 6,926 | 6,692 |
Recurring Basis | Level 3 | ||
Financial assets | ||
Total fair value of financial assets | 13 | 20 |
Financial liabilities | ||
Total fair value of financial liabilities | 0 | 0 |
Recurring Basis | Level 3 | Interest rate swaps | ||
Financial liabilities | ||
Interest rate swaps | 0 | 0 |
Recurring Basis | U.S. government and agency securities | ||
Financial assets | ||
Fair Value | 282,170 | 297,418 |
Recurring Basis | U.S. government and agency securities | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | U.S. government and agency securities | Level 2 | ||
Financial assets | ||
Fair Value | 282,170 | 297,418 |
Recurring Basis | U.S. government and agency securities | Level 3 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Municipal securities | ||
Financial assets | ||
Fair Value | 194,609 | 204,059 |
Recurring Basis | Municipal securities | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Municipal securities | Level 2 | ||
Financial assets | ||
Fair Value | 194,609 | 204,059 |
Recurring Basis | Municipal securities | Level 3 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | ||
Financial assets | ||
Fair Value | 433,182 | 387,873 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 2 | ||
Financial assets | ||
Fair Value | 433,182 | 387,873 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 3 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | ||
Financial assets | ||
Fair Value | 621,845 | 398,117 |
Recurring Basis | Agency collateralized mortgage obligations | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | Level 2 | ||
Financial assets | ||
Fair Value | 621,845 | 398,117 |
Recurring Basis | Agency collateralized mortgage obligations | Level 3 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Corporate bonds and other | ||
Financial assets | ||
Fair Value | 99,165 | 108,213 |
Recurring Basis | Corporate bonds and other | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Corporate bonds and other | Level 2 | ||
Financial assets | ||
Fair Value | 99,165 | 108,213 |
Recurring Basis | Corporate bonds and other | Level 3 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Interest rate swaps | ||
Financial assets | ||
Fair Value | 6,926 | 6,692 |
Recurring Basis | Interest rate swaps | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Interest rate swaps | Level 2 | ||
Financial assets | ||
Fair Value | 6,926 | 6,692 |
Recurring Basis | Interest rate swaps | Level 3 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Credit risk participation agreements | ||
Financial assets | ||
Fair Value | 13 | 20 |
Recurring Basis | Credit risk participation agreements | Level 1 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Credit risk participation agreements | Level 2 | ||
Financial assets | ||
Fair Value | 0 | 0 |
Recurring Basis | Credit risk participation agreements | Level 3 | ||
Financial assets | ||
Fair Value | $ 13 | $ 20 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between levels | $ 0 | $ 0 | |
Liabilities measured at fair value | 6,926,000 | $ 6,692,000 | |
Nonrecurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities measured at fair value | $ 0 | $ 0 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Branch assets held for sale | $ 2,033 | |
Total fair value of financial assets | $ 0 | 2,033 |
Level 1 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 1 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 1 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 1 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 1 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Branch assets held for sale | 0 | |
Total fair value of financial assets | 0 | 0 |
Level 2 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 2 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 2 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 2 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 2 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Branch assets held for sale | 0 | |
Total fair value of financial assets | 31,200 | 27,870 |
Level 3 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 2,094 | 6,654 |
Level 3 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 6,287 | 3,892 |
Level 3 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 17,415 | 10,084 |
Level 3 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 5,302 | 7,134 |
Level 3 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 102 | $ 106 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Deposit Liabilities [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 531.3 | $ 548.4 |
Brokered deposits | $ 741.3 | $ 615.9 |
DEPOSITS - Time Deposits by Mat
DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deposit Liabilities [Abstract] | ||
2024 | $ 961,610 | |
2025 | 541,579 | |
2026 | 56,779 | |
2027 | 42,710 | |
Thereafter | 36,748 | |
Total | $ 1,639,426 | $ 1,529,876 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 interest_rate_swap creditAgreement | Dec. 31, 2023 interest_rate_swap creditAgreement | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of interest rate swap agreements outstanding | interest_rate_swap | 9 | 15 |
Number of credit risk participation agreements | creditAgreement | 3 | 3 |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Interest Rate Swap With Financial Institutions One | Other assets | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 66,889 | $ 104,930 |
Fair Value, Asset | $ 6,580 | $ 6,367 |
Weighted Average Maturity (Years) | 6 years 2 months 4 days | 4 years 6 months 3 days |
Interest Rate Swap With Financial Institutions One | Other assets | Minimum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fixed Rate | 3.50% | 3.25% |
Floating Rate | 2.50% | 2.50% |
Interest Rate Swap With Financial Institutions One | Other assets | Maximum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fixed Rate | 5.40% | 5.58% |
Floating Rate | 3% | 3% |
Interest Rate Swap With Financial Institutions One | Other liabilities | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 4,875 | |
Fair Value, Liability | $ (30) | |
Fixed Rate | 6.25% | |
Floating Rate | 2.50% | |
Weighted Average Maturity (Years) | 4 years 14 days | |
Interest Rate Swap With Financial Institutions Two | Other assets | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 4,849 | $ 4,911 |
Fair Value, Asset | $ 346 | $ 295 |
Fixed Rate | 4.99% | 4.99% |
Weighted Average Maturity (Years) | 3 years 5 months 15 days | 3 years 11 months 15 days |
Interest Rate Swaps With Customers | Other assets | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 4,875 | |
Fair Value, Asset | $ 30 | |
Fixed Rate | 6.25% | |
Floating Rate | 2.50% | |
Weighted Average Maturity (Years) | 4 years 14 days | |
Interest Rate Swaps With Customers | Other liabilities | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 4,849 | $ 4,911 |
Fair Value, Liability | $ (346) | $ (295) |
Fixed Rate | 4.99% | 4.99% |
Weighted Average Maturity (Years) | 3 years 5 months 15 days | 3 years 11 months 15 days |
Interest Rate Swap With Customers Two | Other liabilities | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 66,889 | $ 104,930 |
Fair Value, Liability | $ (6,580) | $ (6,367) |
Weighted Average Maturity (Years) | 6 years 2 months 4 days | 4 years 6 months 3 days |
Interest Rate Swap With Customers Two | Other liabilities | Minimum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fixed Rate | 3.50% | 3.25% |
Floating Rate | 2.50% | 2.50% |
Interest Rate Swap With Customers Two | Other liabilities | Maximum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fixed Rate | 5.40% | 5.58% |
Floating Rate | 3% | 3% |
Credit Risk Participation Agreement With Financial Institution | Other assets | ||
Derivative Instruments Gain Loss [Line Items] | ||
Notional Amounts | $ 20,348 | $ 20,758 |
Fair Value, Asset | $ 13 | $ 20 |
Floating Rate | 2.50% | 2.50% |
Weighted Average Maturity (Years) | 6 years 9 months 25 days | 7 years 3 months 29 days |
Credit Risk Participation Agreement With Financial Institution | Other assets | Minimum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fixed Rate | 3.50% | 3.50% |
Credit Risk Participation Agreement With Financial Institution | Other assets | Maximum | ||
Derivative Instruments Gain Loss [Line Items] | ||
Fixed Rate | 5.40% | 5.40% |
BORROWINGS AND BORROWING CAPA_3
BORROWINGS AND BORROWING CAPACITY (Details) - USD ($) | Dec. 13, 2022 | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | $ 986,000,000 | $ 1,820,000,000 | |
Frost Agreement | Line of Credit | Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | ||
Letters of credit, outstanding amount | 0 | ||
Period to draw | 24 months | ||
Long-Term Debt, Amortization Period | 60 months | ||
Interest payment period | 24 months | ||
Debt service ratio | 1.25 | ||
Texas ratio | 0.250 | ||
Leverage ratio | 0.070 | ||
Federal Home Loan Bank of Dallas | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 3,080,000,000 | ||
Remaining borrowing capacity | 1,860,000,000 | ||
Outstanding amount | 1,230,000,000 | ||
Letters of credit, outstanding amount | 986,000,000 | ||
Federal Home Loan Bank of Dallas | Federal Home Loan Bank Advances | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank, advances | $ 240,000,000 | ||
Weighted average interest rate | 5.67% | ||
Federal Home Loan Bank of Dallas | Weighted Average | Federal Home Loan Bank Advances | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank, advances, interest rate | 3.50% |
BORROWINGS AND BORROWING CAPA_4
BORROWINGS AND BORROWING CAPACITY - Scheduled Principal Maturities (Details) - Federal Home Loan Bank of Dallas $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 97,915 |
2025 | 328,300 |
2026 | 57,300 |
2027 | 402,500 |
Thereafter | 100,000 |
Total | $ 986,015 |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2017 | Jun. 30, 2024 | |
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | |||
Subordinated Borrowing [Line Items] | |||
Debt instrument, face amount | $ 60 | $ 40 | |
Redemption price | 100% | 100% | |
Stated percentage | 4.70% | ||
Basis spread on variable rate | 3.13% | ||
F&M Bancshares. Inc. | Junior Subordinated Debt | |||
Subordinated Borrowing [Line Items] | |||
Debentures, period over which company may defer interest payments | 5 years |
SUBORDINATED DEBT - Summary of
SUBORDINATED DEBT - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Subordinated Borrowing [Line Items] | |
Junior Subordinated Debenture Owed to Trust | $ 11,341 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | |
Subordinated Borrowing [Line Items] | |
Trust Preferred Securities Outstanding | 7,500 |
Junior Subordinated Debenture Owed to Trust | 7,732 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | |
Subordinated Borrowing [Line Items] | |
Trust Preferred Securities Outstanding | 3,500 |
Junior Subordinated Debenture Owed to Trust | $ 3,609 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 7,792,000 | $ 7,467,000 | $ 14,551,000 | $ 17,380,000 |
Effective income tax rate reconciliation (as a percent) | 20.80% | 17.50% | 20.70% | 19.40% |
Uncertain tax positions and interest or penalties | $ 0 | $ 0 | $ 0 | $ 0 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Oct. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 2,000,000 | ||||
Shares reserved for issuance (in shares) | 786,851 | 786,851 | |||
Share-based compensation expense | $ 2.8 | $ 2.8 | $ 5.6 | $ 5.4 | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | 11.6 | $ 11.6 | |||
Weighted average period over which unrecognized compensation | 1 year 10 months 13 days | ||||
Share awards granted (in shares) | 311,000 | ||||
Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Weighted average period over which unrecognized compensation | 2 years 29 days | ||||
Service period | 1 year | ||||
Share awards granted (in shares) | 77,624 | ||||
Unrecognized compensation expense | $ 3.6 | $ 3.6 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Plans Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Number of Options | ||
Options outstanding, beginning balance (in shares) | 258 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (53) | |
Options forfeited (in shares) | (4) | |
Options outstanding, ending balance (in shares) | 201 | 258 |
Number of options vested and exercisable (in shares) | 201 | |
Weighted- Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ 18.56 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 15.05 | |
Options forfeited (in dollars per share) | 14.11 | |
Options outstanding, ending balance (in dollars per share) | 19.57 | $ 18.56 |
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share) | $ 19.57 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Weighted Average Remaining Contractual Term, Options outstanding | 1 year 11 months 15 days | 2 years 1 month 2 days |
Weighted Average Remaining Contractual Term, Options vested and exercisable | 1 year 11 months 15 days | |
Aggregate Intrinsic Value, Options outstanding | $ 791 | $ 2,398 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 791 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares | |
Nonvested share awards outstanding, beginning balance (in shares) | shares | 458 |
Share awards granted (in shares) | shares | 311 |
Share awards vested (in shares) | shares | (85) |
Unvested share awards forfeited or cancelled (in shares) | shares | (45) |
Nonvested share awards outstanding, ending balance (in shares) | shares | 639 |
Weighted- Average Grant Date Fair Value | |
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ / shares | $ 29.38 |
Share awards granted (in dollars per share) | $ / shares | 23.17 |
Share awards vested (in dollars per share) | $ / shares | 25.18 |
Unvested share awards forfeited or cancelled (in dollars per share) | $ / shares | 24.88 |
Nonvested share awards outstanding, ending balance (in dollars per share) | $ / shares | $ 27.23 |
OFF-BALANCE SHEET ARRANGEMENT_3
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments With Off-balance Sheet Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 328,227 | $ 383,215 |
Variable Rate | 1,349,160 | 1,447,460 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 314,420 | 367,068 |
Variable Rate | 1,323,829 | 1,425,946 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 13,807 | 16,147 |
Variable Rate | $ 25,331 | $ 21,514 |
OFF-BALANCE SHEET ARRANGEMENT_4
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Letters of credit, outstanding amount | $ 986 | $ 1,820 |
Commitments to make loans, period | 120 days | |
Off-balance-sheet fixed rate loan commitments, weighted average maturity | 2 years 2 months 23 days | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 2.10% | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 13.50% | |
Weighted Average | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 6.95% |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Total Capital | ||
Capital | $ 1,283,125 | $ 1,221,060 |
Capital to Risk Weighted Assets | 0.1534 | 0.1402 |
Capital Required for Capital Adequacy | $ 669,072 | $ 696,529 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Plus Capital Conservation Buffer | $ 878,157 | $ 914,195 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 0.1050 | 0.1050 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 1,085,328 | $ 1,025,076 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1298 | 0.1177 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 376,353 | $ 391,798 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Plus Common Equity Tier 1 Risk Based Capital | $ 585,438 | $ 604,463 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0700 | 0.0700 |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Risk Based Capital | $ 1,095,226 | $ 1,034,974 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1310 | 0.1189 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 501,804 | $ 522,397 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Plus Tier 1 Risk Based Capital | $ 710,889 | $ 740,062 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 |
Tier 1 Leverage (to average tangible assets) | ||
Tier 1 Leverage Capital | $ 1,095,226 | $ 1,034,974 |
Tier 1 Leverage Capital to Average Assets | 0.1093 | 0.1018 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 400,889 | $ 406,859 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 |
Plus Tier 1 Leverage Capital | $ 400,889 | $ 406,859 |
Plus Tier 1 Leverage Capital to Average Assets | 0.0400 | 0.0400 |
Allegiance Bank | ||
Total Capital | ||
Capital | $ 1,223,208 | $ 1,186,710 |
Capital to Risk Weighted Assets | 0.1465 | 0.1365 |
Capital Required for Capital Adequacy | $ 668,098 | $ 695,746 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Plus Capital Conservation Buffer | $ 876,879 | $ 913,167 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 0.1050 | 0.1050 |
Capital Required to be Well Capitalized | $ 835,123 | $ 869,683 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.1000 | 0.1000 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 1,095,348 | $ 1,060,624 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1312 | 0.1220 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 375,805 | $ 391,357 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Plus Common Equity Tier 1 Risk Based Capital | $ 584,586 | $ 608,778 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0700 | 0.0700 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized | $ 542,830 | $ 565,294 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0650 | 0.0650 |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Risk Based Capital | $ 1,095,348 | $ 1,060,624 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1312 | 0.1220 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 501,074 | $ 521,810 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Plus Tier 1 Risk Based Capital | $ 709,854 | $ 739,231 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 668,098 | $ 695,746 |
Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 |
Tier 1 Leverage (to average tangible assets) | ||
Tier 1 Leverage Capital | $ 1,095,348 | $ 1,060,624 |
Tier 1 Leverage Capital to Average Assets | 0.1094 | 0.1044 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 400,435 | $ 406,453 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 |
Plus Tier 1 Leverage Capital | $ 400,435 | $ 406,453 |
Plus Tier 1 Leverage Capital to Average Assets | 0.0400 | 0.0400 |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 500,543 | $ 508,066 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 0.0500 | 0.0500 |
EARNINGS PER COMMON SHARE - Sum
EARNINGS PER COMMON SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to shareholders | $ 29,753 | $ 35,175 | $ 55,900 | $ 72,323 |
Basic: | ||||
Weighted average shares outstanding (in shares) | 53,572 | 53,297 | 53,457 | 53,160 |
Weighted average shares outstanding (in dollars per share) | $ 0.56 | $ 0.66 | $ 1.05 | $ 1.36 |
Add incremental shares for: | ||||
Dilutive effect of stock option exercises and performance share units (in shares) | 36 | 78 | 49 | 101 |
Total (in shares) | 53,608 | 53,375 | 53,506 | 53,261 |
Total (in dollars per share) | $ 0.56 | $ 0.66 | $ 1.04 | $ 1.36 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 101,166 | 30,074 |