Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38487 | |
Entity Registrant Name | Origin Bancorp, Inc. | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1192928 | |
Entity Address, Address Line One | 500 South Service Road East | |
Entity Address, City or Town | Ruston | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71270 | |
City Area Code | 318 | |
Local Phone Number | 255-2222 | |
Title of 12(b) Security | Common Stock, par value $5.00 per share | |
Trading Symbol | OBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 30,906,716 | |
Amendment Flag | false | |
Current Fiscal Year Focus | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity CIK | 0001516912 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 141,705 | $ 150,180 |
Interest-bearing deposits in banks | 163,573 | 208,792 |
Total cash and cash equivalents | 305,278 | 358,972 |
Securities: | ||
Available for sale | 1,290,839 | 1,641,484 |
Held to maturity, net allowance for credit losses of $890 and $899 at September 30, 2023, and December 31, 2022, respectively (fair value of $11,005 and $11,970 at September 30, 2023, and December 31, 2022, respectively) | 10,790 | 11,275 |
Securities carried at fair value through income | 6,772 | 6,368 |
Total securities | 1,308,401 | 1,659,127 |
Non-marketable equity securities held in other financial institutions | 63,842 | 67,378 |
Loans held for sale ($14,944 and $25,389 at fair value at September 30, 2023, and December 31, 2022, respectively) | 14,944 | 49,957 |
Loans, net of allowance for credit losses of $95,177 and $87,161 at September 30, 2023, and December 31, 2022, respectively | 7,472,886 | 7,002,861 |
Premises and equipment, net | 111,700 | 100,201 |
Mortgage servicing rights | 19,189 | 20,824 |
Cash surrender value of bank-owned life insurance | 39,688 | 39,040 |
Goodwill | 128,679 | 128,679 |
Other intangible assets, net | 42,460 | 49,829 |
Accrued interest receivable and other assets | 226,236 | 209,199 |
Total assets | 9,733,303 | 9,686,067 |
Liabilities and Stockholders’ Equity | ||
Noninterest-bearing deposits | 2,008,671 | 2,482,475 |
Interest-bearing deposits | 4,728,263 | 4,505,940 |
Time deposits | 1,637,554 | 787,287 |
Total deposits | 8,374,488 | 7,775,702 |
Federal Home Loan Bank (“FHLB”) advances, repurchase obligations and other borrowings | 12,213 | 639,230 |
Subordinated indebtedness, net | 196,825 | 201,765 |
Accrued expenses and other liabilities | 150,832 | 119,427 |
Total liabilities | 8,734,358 | 8,736,124 |
Stockholders’ equity: | ||
Common stock ($5.00 par value; 50,000,000 shares authorized; 30,906,716 and 30,746,600 shares issued at September 30, 2023, and December 31, 2022, respectively) | 154,534 | 153,733 |
Additional paid‑in capital | 525,434 | 520,669 |
Retained earnings | 491,706 | 435,416 |
Accumulated other comprehensive loss | (172,729) | (159,875) |
Total stockholders’ equity | 998,945 | 949,943 |
Total liabilities and stockholders’ equity | $ 9,733,303 | $ 9,686,067 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Held to maturity, allowance for credit losses | $ 890 | $ 899 |
Held to maturity, fair value | 11,005 | 11,970 |
Loans held for sale | 14,944 | 25,389 |
Allowance for credit losses | $ 95,177 | $ 87,161 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 30,906,716 | 30,746,600 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 121,204 | $ 79,803 | $ 343,142 | $ 186,972 |
Investment securities-taxable | 8,194 | 7,801 | 24,658 | 20,030 |
Investment securities-nontaxable | 1,281 | 2,151 | 3,974 | 5,044 |
Interest and dividend income on assets held in other financial institutions | 4,772 | 1,482 | 16,132 | 3,262 |
Total interest and dividend income | 135,451 | 91,237 | 387,906 | 215,308 |
Interest expense | ||||
Interest-bearing deposits | 55,599 | 7,734 | 136,686 | 13,689 |
FHLB advances and other borrowings | 3,207 | 2,717 | 17,038 | 5,203 |
Subordinated indebtedness | 2,515 | 2,263 | 7,614 | 5,887 |
Total interest expense | 61,321 | 12,714 | 161,338 | 24,779 |
Net interest income | 74,130 | 78,523 | 226,568 | 190,529 |
Provision for credit losses | 3,515 | 16,942 | 14,018 | 20,067 |
Net interest income after provision for credit losses | 70,615 | 61,581 | 212,550 | 170,462 |
Noninterest income | ||||
Mortgage banking revenue (loss) | 892 | (929) | 4,075 | 5,521 |
Other fee income | 944 | 1,162 | 2,856 | 2,398 |
Swap fee income | 366 | 25 | 1,081 | 165 |
(Loss) gain on sales of securities, net | (7,173) | 1,664 | (7,029) | 1,664 |
Limited partnership investment (loss) income | (425) | 112 | (128) | 31 |
Gain (loss) on sales and disposals of other assets, net | 45 | 70 | (3) | (209) |
Other income | 12,406 | 1,219 | 15,734 | 3,454 |
Total noninterest income | 18,119 | 13,723 | 50,139 | 43,845 |
Noninterest expense | ||||
Salaries and employee benefits | 34,624 | 31,834 | 102,888 | 85,632 |
Occupancy and equipment, net | 6,790 | 5,399 | 19,871 | 14,340 |
Data processing | 2,775 | 2,689 | 8,528 | 7,588 |
Intangible asset amortization | 2,264 | 1,872 | 7,369 | 2,934 |
Office and operations | 2,868 | 2,121 | 7,887 | 5,843 |
Professional services | 1,409 | 1,188 | 4,491 | 2,668 |
Loan-related expenses | 1,220 | 1,599 | 3,941 | 4,421 |
Advertising and marketing | 1,371 | 1,196 | 4,296 | 2,926 |
Electronic banking | 1,384 | 1,087 | 3,609 | 2,900 |
Franchise tax expense | 520 | 957 | 2,392 | 2,565 |
Regulatory assessments | 1,913 | 877 | 4,596 | 2,305 |
Communications | 390 | 279 | 1,181 | 812 |
Merger-related expense | 0 | 3,614 | 0 | 4,992 |
Other expenses | 1,135 | 1,529 | 3,261 | 3,239 |
Total noninterest expense | 58,663 | 56,241 | 174,310 | 143,165 |
Income before income tax expense | 30,071 | 19,063 | 88,379 | 71,142 |
Income tax expense | 5,758 | 2,820 | 18,004 | 12,905 |
Net income | $ 24,313 | $ 16,243 | $ 70,375 | $ 58,237 |
Basic earnings per common share (in dollars per share) | $ 0.79 | $ 0.57 | $ 2.29 | $ 2.31 |
Diluted earnings per common share (in dollars per share) | $ 0.79 | $ 0.57 | $ 2.28 | $ 2.30 |
Insurance commission and fee income | ||||
Noninterest income | ||||
Revenue from contracts with customers | $ 6,443 | $ 5,666 | $ 19,639 | $ 17,815 |
Service charges and fees | ||||
Noninterest income | ||||
Revenue from contracts with customers | $ 4,621 | $ 4,734 | $ 13,914 | $ 13,006 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,313 | $ 16,243 | $ 70,375 | $ 58,237 |
Securities available for sale and transferred securities: | ||||
Net unrealized holding gain (loss) arising during the period | (32,357) | (73,757) | (23,355) | (228,605) |
Reclassification adjustment for net (gain) loss included in net income | 7,173 | (1,664) | 7,029 | (1,664) |
Change in the net unrealized gain (loss) on available for sale investment securities, before tax | (25,184) | (75,421) | (16,326) | (230,269) |
Net gain realized as a yield adjustment in interest on transferred investment securities | (3) | (3) | (8) | (9) |
Change in the net unrealized gain (loss) on investment securities, before tax | (25,187) | (75,424) | (16,334) | (230,278) |
Income tax expense (benefit) related to net unrealized gain (loss) arising during the period | (5,289) | (15,839) | (3,430) | (48,359) |
Change in the net unrealized gain (loss) on investment securities, net of tax | (19,898) | (59,585) | (12,904) | (181,919) |
Cash flow hedges: | ||||
Net unrealized gain arising during the period | 167 | 438 | 1,078 | 1,167 |
Reclassification adjustment for net (gain) loss included in net income | (106) | 19 | (1,014) | (45) |
Change in the net unrealized gain on cash flow hedges, before tax | 61 | 419 | 64 | 1,212 |
Income tax expense related to net unrealized gain on cash flow hedges | 13 | 88 | 14 | 255 |
Change in net unrealized net gain on cash flow hedges, net of tax | 48 | 331 | 50 | 957 |
Other comprehensive income (loss), net of tax | (19,850) | (59,254) | (12,854) | (180,962) |
Comprehensive income (loss) | $ 4,463 | $ (43,011) | $ 57,521 | $ (122,725) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) |
Beginning balance (in shares) at Dec. 31, 2021 | 23,746,502 | ||||
Beginning balance at Dec. 31, 2021 | $ 730,211 | $ 118,733 | $ 242,114 | $ 363,635 | $ 5,729 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,683 | 20,683 | |||
Other comprehensive income (loss), net of tax | (71,619) | (71,619) | |||
Stock based compensation expense | 737 | 737 | |||
Exercise of stock options, net of shares withheld (in shares) | 2,246 | ||||
Exercise of stock options, net of shares withheld | (51) | $ 11 | (62) | ||
Dividends declared - common stock | (3,096) | (3,096) | |||
Ending balance (in shares) at Mar. 31, 2022 | 23,748,748 | ||||
Ending balance at Mar. 31, 2022 | 676,865 | $ 118,744 | 242,789 | 381,222 | (65,890) |
Beginning balance (in shares) at Dec. 31, 2021 | 23,746,502 | ||||
Beginning balance at Dec. 31, 2021 | 730,211 | $ 118,733 | 242,114 | 363,635 | 5,729 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 58,237 | ||||
Other comprehensive income (loss), net of tax | $ (180,962) | ||||
Exercise of stock options, net of shares withheld (in shares) | 60,687 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 30,661,734 | ||||
Ending balance at Sep. 30, 2022 | $ 907,024 | $ 153,309 | 518,376 | 410,572 | (175,233) |
Beginning balance (in shares) at Mar. 31, 2022 | 23,748,748 | ||||
Beginning balance at Mar. 31, 2022 | 676,865 | $ 118,744 | 242,789 | 381,222 | (65,890) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,311 | 21,311 | |||
Other comprehensive income (loss), net of tax | (50,089) | (50,089) | |||
Stock based compensation expense | 841 | 841 | |||
Exercise of stock options, net of shares withheld (in shares) | 20,000 | ||||
Exercise of stock options, net of shares withheld | 165 | $ 100 | 65 | ||
Stock based compensation shares vested and distributed, net of shares withheld (in shares) | 12,840 | ||||
Stock based compensation shares vested and distributed, net of shares withheld | 0 | $ 64 | (64) | ||
Shares issued under employee stock purchase program (in shares) | 26,089 | ||||
Shares issued under employee stock purchase program | 867 | $ 130 | 737 | ||
Dividends declared - common stock | (3,587) | (3,587) | |||
Ending balance (in shares) at Jun. 30, 2022 | 23,807,677 | ||||
Ending balance at Jun. 30, 2022 | 646,373 | $ 119,038 | 244,368 | 398,946 | (115,979) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 16,243 | 16,243 | |||
Other comprehensive income (loss), net of tax | (59,254) | (59,254) | |||
Stock based compensation expense | 970 | 970 | |||
Exercise of stock options, net of shares withheld (in shares) | 35,887 | ||||
Exercise of stock options, net of shares withheld | 965 | $ 180 | 785 | ||
Stock based compensation shares vested and distributed, net of shares withheld (in shares) | 23,260 | ||||
Stock based compensation shares vested and distributed, net of shares withheld | 0 | $ 116 | (116) | ||
Options assumed - BTH Merger | 13,687 | 13,687 | |||
Stock issuance - BTH Merger (in shares) | 6,794,910 | ||||
Stock issuance - BTH Merger | 292,657 | $ 33,975 | 258,682 | ||
Dividends declared - common stock | (4,617) | (4,617) | |||
Ending balance (in shares) at Sep. 30, 2022 | 30,661,734 | ||||
Ending balance at Sep. 30, 2022 | 907,024 | $ 153,309 | 518,376 | 410,572 | (175,233) |
Beginning balance (in shares) at Dec. 31, 2022 | 30,746,600 | ||||
Beginning balance at Dec. 31, 2022 | 949,943 | $ 153,733 | 520,669 | 435,416 | (159,875) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 24,302 | 24,302 | |||
Other comprehensive income (loss), net of tax | 21,394 | 21,394 | |||
Stock based compensation expense | 1,391 | 1,391 | |||
Exercise of stock options, net of shares withheld (in shares) | 24,503 | ||||
Exercise of stock options, net of shares withheld | 324 | $ 122 | 202 | ||
Stock based compensation shares vested and distributed, net of shares withheld (in shares) | 9,750 | ||||
Stock based compensation shares vested and distributed, net of shares withheld | (89) | $ 49 | (138) | ||
Dividends declared - common stock | (4,678) | (4,678) | |||
Ending balance (in shares) at Mar. 31, 2023 | 30,780,853 | ||||
Ending balance at Mar. 31, 2023 | 992,587 | $ 153,904 | 522,124 | 455,040 | (138,481) |
Beginning balance (in shares) at Dec. 31, 2022 | 30,746,600 | ||||
Beginning balance at Dec. 31, 2022 | 949,943 | $ 153,733 | 520,669 | 435,416 | (159,875) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 70,375 | ||||
Other comprehensive income (loss), net of tax | $ (12,854) | ||||
Exercise of stock options, net of shares withheld (in shares) | 55,897 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 30,906,716 | ||||
Ending balance at Sep. 30, 2023 | $ 998,945 | $ 154,534 | 525,434 | 491,706 | (172,729) |
Beginning balance (in shares) at Mar. 31, 2023 | 30,780,853 | ||||
Beginning balance at Mar. 31, 2023 | 992,587 | $ 153,904 | 522,124 | 455,040 | (138,481) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,760 | 21,760 | |||
Other comprehensive income (loss), net of tax | (14,398) | (14,398) | |||
Stock based compensation expense | 1,160 | 1,160 | |||
Exercise of stock options, net of shares withheld (in shares) | 15,492 | ||||
Exercise of stock options, net of shares withheld | 327 | $ 78 | 249 | ||
Stock based compensation shares vested and distributed, net of shares withheld (in shares) | 23,647 | ||||
Stock based compensation shares vested and distributed, net of shares withheld | 0 | $ 118 | (118) | ||
Shares issued under employee stock purchase program (in shares) | 46,213 | ||||
Shares issued under employee stock purchase program | 1,118 | $ 231 | 887 | ||
Dividends declared - common stock | (4,695) | (4,695) | |||
Ending balance (in shares) at Jun. 30, 2023 | 30,866,205 | ||||
Ending balance at Jun. 30, 2023 | 997,859 | $ 154,331 | 524,302 | 472,105 | (152,879) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 24,313 | 24,313 | |||
Other comprehensive income (loss), net of tax | (19,850) | (19,850) | |||
Stock based compensation expense | 1,335 | 1,335 | |||
Exercise of stock options, net of shares withheld (in shares) | 13,123 | ||||
Exercise of stock options, net of shares withheld | 217 | $ 66 | 151 | ||
Stock based compensation shares vested and distributed, net of shares withheld (in shares) | 27,388 | ||||
Stock based compensation shares vested and distributed, net of shares withheld | (217) | $ 137 | (354) | ||
Dividends declared - common stock | (4,712) | (4,712) | |||
Ending balance (in shares) at Sep. 30, 2023 | 30,906,716 | ||||
Ending balance at Sep. 30, 2023 | $ 998,945 | $ 154,534 | $ 525,434 | $ 491,706 | $ (172,729) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common stock dividends declared (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 70,375 | $ 58,237 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 14,018 | 20,067 |
Depreciation and amortization | 13,333 | 7,809 |
Net amortization on securities | 5,309 | 7,079 |
Accretion of net premium/discount on purchased loans | (2,067) | (1,187) |
Amortization of investments in tax credit funds | 1,368 | 951 |
Loss (gain) on sale of securities, net | 7,029 | (1,664) |
Deferred income tax expense | 14,499 | 11,356 |
Stock-based compensation expense | 3,886 | 2,548 |
Originations of mortgage loans held for sale | (148,866) | (224,093) |
Proceeds from mortgage loans held for sale | 127,574 | 222,638 |
Gain on mortgage loans held for sale, including origination of mortgage servicing rights | (3,036) | (6,403) |
Mortgage servicing rights valuation adjustment | 485 | (2,409) |
Net loss on disposals of premises and equipment and sale of other real estate owned | 2 | 3 |
Increase in the cash surrender value of life insurance | (648) | (533) |
Gain on equity securities without a readily determinable fair value | (10,097) | 0 |
Net losses on sales and write-downs of other real estate owned | 1 | 206 |
Net change in operating leases | (793) | 24 |
Increase in other assets | (8,718) | (7,535) |
Increase in other liabilities | 16,821 | 6,717 |
Net cash provided by operating activities | 100,475 | 93,811 |
Cash flows from investing activities: | ||
Cash acquired in business combination | 0 | 69,953 |
Purchases of securities available for sale | (751) | (557,151) |
Maturities and pay downs of securities available for sale | 107,679 | 118,189 |
Proceeds from sales and calls of securities available for sale | 214,302 | 484,421 |
Purchase of securities held to maturity | 0 | (7,000) |
Maturities, pay downs and calls of securities held to maturity | 486 | 17,750 |
Pay downs of securities carried at fair value | 285 | 275 |
Net redemption (purchases) of non-marketable equity securities held in other financial institutions | 15,025 | (2,664) |
Originations of mortgage warehouse loans | (5,048,595) | (7,638,507) |
Proceeds from pay-offs of mortgage warehouse loans | 5,047,169 | 7,846,760 |
Net increase in loans, excluding mortgage warehouse and loans held for sale | (449,804) | (609,608) |
Return of capital and other distributions from limited partnership investments | 1,591 | 6,657 |
Capital calls on limited partnership investments | (2,156) | (97) |
Purchase of low-income housing tax credit investments | (538) | 0 |
Purchases of premises and equipment | (17,514) | (5,636) |
Proceeds from sales of premises and equipment | 49 | 0 |
Net cash used in investing activities | (132,772) | (276,658) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 598,786 | (359,825) |
Repayments on long-term FHLB advances | (199) | (193) |
Proceeds from short-term FHLB advances | 5,890,000 | 5,960,000 |
Repayments on short-term FHLB advances | (6,440,000) | (5,810,000) |
Repurchase of subordinated debentures, net | (4,729) | 0 |
Net decrease in other short-term borrowings | (30,000) | 0 |
Net decrease in securities sold under agreements to repurchase | (22,250) | (2,151) |
Dividends paid | (13,912) | (11,263) |
Cash received from exercise of stock options | 907 | 1,131 |
Net cash used in financing activities | (21,397) | (222,301) |
Net decrease in cash and cash equivalents | (53,694) | (405,148) |
Cash and cash equivalents at beginning of period | 358,972 | 705,618 |
Cash and cash equivalents at end of period | 305,278 | 300,470 |
Interest paid | 151,130 | 21,123 |
Income taxes paid | 483 | 1,204 |
Significant non-cash transactions: | ||
Real estate acquired in settlement of loans | 3,243 | 665 |
Decrease in GNMA repurchase obligation | (24,569) | (17,134) |
Recognition of operating right-of-use assets | 16,225 | 14,009 |
Recognition of operating lease liabilities | 16,187 | 14,213 |
Total assets acquired in BTH merger | 0 | 1,840,340 |
Total liabilities assumed in BTH merger | 0 | 1,635,196 |
Common stock issued in BTH merger as consideration | $ 0 | $ 292,657 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 — Significant Accounting Policies Nature of Operations . Origin Bancorp, Inc. (“Company”) is a financial holding company headquartered in Ruston, Louisiana. The Company’s wholly-owned bank subsidiary, Origin Bank (“Bank”), was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 60 banking centers located in Dallas/Fort Worth, East Texas, Houston, North Louisiana and Mississippi. The Company principally operates in one business segment, community banking. Basis of Presentation . The consolidated financial statements in this quarterly report on Form 10-Q include the accounts of the Company and all other entities in which Origin Bancorp, Inc. has a controlling financial interest, including the Bank and Davison Insurance Agency, LLC, doing business as Lincoln Agency, LLC, Lincoln Agency Transportation Insurance, Pulley-White Insurance Agency, Reeves, Coon and Funderburg, Simoneaux & Wallace Agency and Thomas & Farr Agency. All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s accounting and financial reporting policies conform, in all material respects, to generally accepted accounting principles in the United States (“U.S. GAAP”) and to general practices within the financial services industry. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated financial statements in this quarterly report on Form 10-Q have not been audited by an independent registered public accounting firm, excluding the figures as of December 31, 2022, but in the opinion of management, reflect all adjustments (which are of a normal recurring nature) necessary for a fair presentation of the Company’s financial position and results of operations for the periods presented. These consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s annual report on Form 10-K (“2022 Form 10-K”) filed with the SEC. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year. Certain prior period amounts have been reclassified to conform to the current year financial statement presentations. These reclassifications did not impact previously reported net income or comprehensive income (loss). Use of Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information that affect the amounts reported in the financial statements and disclosures provided, including the accompanying notes, and actual results could differ. Material estimates that are particularly susceptible to change include the allowance for credit losses for loans, off-balance sheet commitments and available for sale securities; fair value measurements of assets and liabilities; and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the Company’s consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual results could differ from those estimates. Allowance for Credit Losses . Accounting Standards Update (“ASU”) No. 2022-02 eliminated the accounting guidance for troubled debt restructurings (“TDRs”) and enhanced disclosure requirements for certain loan modifications. The Company may provide modifications to borrowers experiencing financial difficulty in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, or term extensions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company may provide multiple types of concessions on one loan. The Company will evaluate whether the modification represents a new loan or a continuation of an existing loan. The Company assesses all loan modifications to determine whether they were made to borrowers experiencing financial difficulty. Reclassifications . Certain amounts previously reported have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior year net income or stockholders’ equity. Effect of Recently Adopted Accounting Standards ASU No. 2021-06, Presentation of Financial Statements (Topic 205), Financial Services —Depository and Lending (Topic 942), and Financial Services — Investment Companies (Topic 946) —Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants amends the Accounting Standards Codification (“ASC”) in order to codify to the new SEC releases 33-10786 and 33-10835 (the “Releases”). The Releases clearly define whether an acquired or disposed business subsidiary is significant; update, expand and eliminate certain disclosures; eliminate overlap with certain SEC and U.S. GAAP rules; and add a new subpart of Regulation S-K. The ASU is effective upon issuance; however, the SEC release on which the ASU is based is effective for registrants with the first fiscal year ending after December 15, 2021, while Guide 3 was rescinded effective January 1, 2023. Implementation of this ASU did not materially impact the Company’s financial statement disclosures. ASU No. 2021-08, Business Combinations (Topic 805) — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this Update affect accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Implementation of this ASU did not materially impact the Company’s financial statements or disclosures. ASU No. 2022-01, Derivatives and Hedging (Topic 815) — Fair Value Hedging - Portfolio Layer Method. The amendments in this Update clarify the accounting for and promote consistency in the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers. Additionally, this Update allows entities to elect to apply the portfolio layer method of hedge accounting in accordance with Topic 815. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Implementation of this ASU did not materially impact the Company’s financial statements or disclosures. ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326) — Troubled Debt Restructurings and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. For public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Implementation of this ASU did not materially impact the Company’s financial statements or disclosures. ASU No. 2022-06, Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848 — The amendments in this Update provide temporary relief during the transition period in complying with Update No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022 - 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. Because the relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective immediately. Implementation of this ASU did not materially impact the Company's financial statements or disclosures. Effect of Newly Issued But Not Yet Effective Accounting Standards ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method — The amendments in this Update allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. The amendments in this Update also eliminate certain low income housing tax credits (“LIHTC”)-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance apply only to tax equity investments accounted for using the proportional amortization method. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Implementation of this ASU is not expected to materially impact the Company's financial statements or disclosures. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 — Earnings Per Share Basic and diluted earnings per common share are calculated using the treasury method. Under the treasury method, basic earnings per share is calculated as net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under the Company’s stock and incentive compensation plans. Information regarding the Company’s basic and diluted earnings per common share is presented in the following table: (Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, Numerator: 2023 2022 2023 2022 Net income $ 24,313 $ 16,243 $ 70,375 $ 58,237 Denominator: Weighted average common shares outstanding 30,856,649 28,298,984 30,797,399 25,263,681 Dilutive effect of stock-based awards 87,211 182,635 105,823 103,126 Weighted average diluted common shares outstanding 30,943,860 28,481,619 30,903,222 25,366,807 Basic earnings per common share $ 0.79 $ 0.57 $ 2.29 $ 2.31 Diluted earnings per common share 0.79 0.57 2.28 2.30 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3 — Securities The following table is a summary of the amortized cost and estimated fair value, including the allowance for credit losses and gross unrealized gains and losses, of available for sale, held to maturity and securities carried at fair value through income for the dates indicated: (Dollars in thousands) September 30, 2023 Amortized Gross Gross Fair Allowance for Credit Losses Net Carrying Amount Available for sale: State and municipal securities $ 382,677 $ 148 $ (66,474) $ 316,351 $ — $ 316,351 Corporate bonds 84,221 — (9,931) 74,290 — 74,290 U.S. government and agency securities 111,812 3 (9,024) 102,791 — 102,791 Commercial mortgage-backed securities 104,745 — (14,725) 90,020 — 90,020 Residential mortgage-backed securities 588,373 — (87,625) 500,748 — 500,748 Commercial collateralized mortgage obligations 39,672 — (5,723) 33,949 — 33,949 Residential collateralized mortgage obligations 154,301 — (25,868) 128,433 — 128,433 Asset-backed securities 44,855 1 (599) 44,257 — 44,257 Total $ 1,510,656 $ 152 $ (219,969) $ 1,290,839 $ — $ 1,290,839 Held to maturity: State and municipal securities $ 11,680 $ — $ (675) $ 11,005 $ (890) $ 10,790 Securities carried at fair value through income: State and municipal securities (1) $ 6,815 $ — $ — $ 6,772 $ — $ 6,772 December 31, 2022 Available for sale: State and municipal securities $ 447,086 $ 996 $ (58,605) $ 389,477 $ — $ 389,477 Corporate bonds 89,449 — (7,191) 82,258 — 82,258 U.S. government and agency securities 264,755 4 (16,339) 248,420 — 248,420 Commercial mortgage-backed securities 105,536 — (13,593) 91,943 — 91,943 Residential mortgage-backed securities 649,765 — (77,462) 572,303 — 572,303 Commercial collateralized mortgage obligations 44,330 — (5,517) 38,813 — 38,813 Residential collateralized mortgage obligations 170,136 — (23,766) 146,370 — 146,370 Asset-backed securities 73,918 — (2,018) 71,900 — 71,900 Total $ 1,844,975 $ 1,000 $ (204,491) $ 1,641,484 $ — $ 1,641,484 Held to maturity: State and municipal securities $ 12,174 $ 278 $ (482) $ 11,970 $ (899) $ 11,275 Securities carried at fair value through income: State and municipal securities (1) $ 7,100 $ — $ — $ 6,368 $ — $ 6,368 ________________________ (1) Securities carried at fair value through income have no unrealized gains or losses at the consolidated balance sheet dates as all changes in value have been recognized in the consolidated statements of income. See Note 5 — Fair Value of Financial Instruments for more information. Securities with unrealized losses at September 30, 2023, and December 31, 2022, aggregated by investment category and those individual securities that have been in a continuous unrealized loss position for less than 12 months, and for 12 months or more, were as follows. Less than 12 Months 12 Months or More Total (Dollars in thousands) September 30, 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for sale: State and municipal securities $ 8,335 $ (493) $ 281,606 $ (65,981) $ 289,941 $ (66,474) Corporate bonds 5,624 (376) 67,667 (9,555) 73,291 (9,931) U.S. government and agency securities — — 102,465 (9,024) 102,465 (9,024) Commercial mortgage-backed securities — — 90,020 (14,725) 90,020 (14,725) Residential mortgage-backed securities 59 (8) 500,689 (87,617) 500,748 (87,625) Commercial collateralized mortgage obligations — — 33,949 (5,723) 33,949 (5,723) Residential collateralized mortgage obligations — — 128,433 (25,868) 128,433 (25,868) Asset-backed securities 5,222 (34) 36,626 (565) 41,848 (599) Total $ 19,240 $ (911) $ 1,241,455 $ (219,058) $ 1,260,695 $ (219,969) Held to maturity: State and municipal securities $ 5,105 $ (62) $ 5,900 $ (613) $ 11,005 $ (675) December 31, 2022 Available for sale: State and municipal securities $ 171,079 $ (14,947) $ 175,011 $ (43,658) $ 346,090 $ (58,605) Corporate bonds 69,618 (5,581) 11,640 (1,610) 81,258 (7,191) U.S. government and agency securities 152,471 (7,373) 95,576 (8,966) 248,047 (16,339) Commercial mortgage-backed securities 37,083 (3,416) 54,860 (10,177) 91,943 (13,593) Residential mortgage-backed securities 231,848 (20,465) 340,455 (56,997) 572,303 (77,462) Commercial collateralized mortgage obligations 21,999 (2,516) 16,814 (3,001) 38,813 (5,517) Residential collateralized mortgage obligations 48,749 (3,928) 97,621 (19,838) 146,370 (23,766) Asset-backed securities 62,047 (1,528) 9,853 (490) 71,900 (2,018) Total $ 794,894 $ (59,754) $ 801,830 $ (144,737) $ 1,596,724 $ (204,491) Held to maturity: State and municipal securities $ 6,518 $ (482) $ — $ — $ 6,518 $ (482) At September 30, 2023, the Company had 647 individual securities that were in an unrealized loss position. Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than the cost, and (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Management does not currently intend to sell any securities in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. 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. Accordingly, at September 30, 2023, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions. The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities. (Dollars in thousands) Municipal Securities Allowance for credit losses: 2023 Balance at January 1, 2023 $ 899 Credit loss expense (9) Balance at September 30, 2023 $ 890 Balance at January 1, 2022 $ 167 Credit loss expense 725 Balance at September 30, 2022 $ 892 Accrued interest of $6.4 million and $8.2 million was not included in the calculation of the allowance or the amortized cost basis of the debt securities at September 30, 2023 or 2022, respectively. There were no past due held-to-maturity securities or held-to-maturity securities in nonaccrual status at September 30, 2023, or December 31, 2022. Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below. Nine Months Ended September 30, (Dollars in thousands) 2023 2022 Proceeds from sales/calls $ 214,302 $ 484,421 Gross realized gains 596 3,766 Gross realized losses (7,625) (2,102) The following table presents the amortized cost and fair value of securities available for sale and held to maturity at September 30, 2023, grouped by contractual maturity. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities will differ from contractual maturities as a result of prepayments made on the underlying loans. (Dollars in thousands) Held to Maturity Available for Sale September 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ — $ — $ 64,008 $ 63,004 Due after one year through five years — — 96,426 87,840 Due after five years through ten years 5,167 5,105 197,466 169,927 Due after ten years 6,513 5,900 220,810 172,661 Commercial mortgage-backed securities — — 104,745 90,020 Residential mortgage-backed securities — — 588,373 500,748 Commercial collateralized mortgage obligations — — 39,672 33,949 Residential collateralized mortgage obligations — — 154,301 128,433 Asset-backed securities — — 44,855 44,257 Total $ 11,680 $ 11,005 $ 1,510,656 $ 1,290,839 The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements at the periods presented. (Dollars in thousands) September 30, 2023 December 31, 2022 Carrying value of securities pledged to secure public deposits $ 412,829 $ 769,691 Carrying value of securities pledged to repurchase agreements 5,530 6,797 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans | Note 4 — Loans Loans consist of the following: (Dollars in thousands) September 30, 2023 December 31, 2022 Loans held for sale $ 14,944 $ 49,957 LHFI: Loans secured by real estate: Owner occupied commercial real estate $ 932,109 $ 843,006 Non-owner occupied commercial real estate 1,503,782 1,461,672 Total commercial real estate 2,435,891 2,304,678 Construction/land/land development 1,076,756 945,625 Residential real estate 1,688,169 1,477,538 Total real estate 5,200,816 4,727,841 Commercial and industrial 2,058,073 2,051,161 Mortgage warehouse lines of credit 286,293 284,867 Consumer 22,881 26,153 Total LHFI (1) 7,568,063 7,090,022 Less: Allowance for loan credit losses (“ALCL”) 95,177 87,161 LHFI, net $ 7,472,886 $ 7,002,861 ____________________________ (1) Includes unamortized purchase accounting adjustment and net deferred loan fees of $11.5 million and $14.2 million at September 30, 2023, and December 31, 2022, respectively. As of September 30, 2023, and December 31, 2022, the remaining purchase accounting net loan discount was $179,000 and $2.2 million, respectively. Credit quality indicators. As part of the Company’s commitment to managing the credit quality of its loan portfolio, management annually and periodically updates and evaluates certain credit quality indicators, which include but are not limited to (i) weighted-average risk rating of the loan portfolio, (ii) net charge-offs, (iii) level of non-performing loans, (iv) level of classified loans (defined as substandard, doubtful and loss), and (v) the general economic conditions in the cities and states in which the Company operates. The Company maintains an internal risk rating system where ratings are assigned to individual loans based on assessed risk. Loan risk ratings are the primary indicator of credit quality for the loan portfolio and are continually evaluated to ensure they are appropriate based on currently available information. The following is a summary description of the Company’s internal risk ratings: • Pass (1-6) Loans within this risk rating are further categorized as follows: Minimal risk (1) Well-collateralized by cash equivalent instruments held by the Banks. Moderate risk (2) Borrowers with excellent asset quality and liquidity. Borrowers’ capitalization and liquidity exceed industry norms. Borrowers in this category have significant levels of liquid assets and have a low level of leverage. Better than average risk (3) Borrowers with strong financial strength and excellent liquidity that consistently demonstrate strong operating performance. Borrowers in this category generally have a sizable net worth that can be converted into liquid assets within 12 months. Average risk (4) Borrowers with sound credit quality and financial performance, including liquidity. Borrowers are supported by sufficient cash flow coverage generated through operations across the full business cycle. Marginally acceptable risk (5) Loans generally meet minimum requirements for an acceptable loan in accordance with lending policy, but possess one or more attributes that cause the overall risk profile to be higher than the majority of newly approved loans. Watch (6) A passing loan with one or more factors that identify a potential weakness in the overall ability of the borrower to repay the loan. These weaknesses are generally mitigated by other factors that reduce the risk of delinquency or loss. • Special Mention (7) This grade is intended to be temporary and includes borrowers whose credit quality has deteriorated and is at risk of further decline. • Substandard (8) This grade includes “Substandard” loans under regulatory guidelines. Substandard loans exhibit a well-defined weakness that jeopardizes debt repayment in accordance with contractual agreements, even though the loan may be performing. These obligations are characterized by the distinct possibility that a loss may be incurred if these weaknesses are not corrected and repayment may be dependent upon collateral liquidation or secondary source of repayment. • Doubtful (9) This grade includes “Doubtful” loans under regulatory guidelines. Such loans are placed on nonaccrual status and repayment may be dependent upon collateral with no readily determinable valuation or valuations that are highly subjective in nature. Repayment for these loans is considered improbable based on currently existing facts and circumstances. • Loss (0) This grade includes “Loss” loans under regulatory guidelines. Loss loans are charged-off or written down when repayment is not expected. In connection with the review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. The list of loans to be reviewed for possible individual evaluation consists of nonaccrual commercial loans over $100,000 with direct exposure, unsecured loans over 90 days past due, commercial loans classified as substandard or worse over $100,000 with direct exposure, modified loans to borrowers experiencing financial difficulty, consumer loans greater than $100,000 with a FICO score under 625, loans greater than $100,000 in which the borrower has filed bankruptcy, and all loans 180 days or more past due. Loans under $50,000 will be evaluated collectively in designated pools unless a loss exposure has been identified. Some additional risk elements considered by loan type include: • for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral; and • for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral. Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other individually evaluated loans. As a result of the merger with BT Holdings, Inc., (“BTH”), the Company held approximately $36.8 million and $48.1 million of unpaid principal balance PCD loans at September 30, 2023, and December 31, 2022, respectively. Please see Note 1 — Significant Accounting Policies included in the 2022 Form 10-K, filed with the SEC for a description of our accounting policies related to purchased financial assets with credit deterioration. The following table reflects recorded investments in loans by credit quality indicator and origination year at September 30, 2023, and gross charge-offs for the nine months ended September 30, 2023, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at September 30, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: Pass $ 269,854 $ 888,014 $ 485,198 $ 257,683 $ 223,348 $ 209,716 $ 76,329 $ 2,410,142 Special mention — — — — — 7,996 — 7,996 Classified 745 1,916 3,239 1,595 587 9,671 — 17,753 Total commercial real estate loans $ 270,599 $ 889,930 $ 488,437 $ 259,278 $ 223,935 $ 227,383 $ 76,329 $ 2,435,891 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 42 $ — $ 42 Construction/land/land development: Pass $ 203,868 $ 492,097 $ 235,360 $ 30,838 $ 17,281 $ 25,621 $ 35,821 $ 1,040,886 Special mention — 10,718 20,932 — — — — 31,650 Classified 1 180 54 245 667 754 2,319 4,220 Total construction/land/land development loans $ 203,869 $ 502,995 $ 256,346 $ 31,083 $ 17,948 $ 26,375 $ 38,140 $ 1,076,756 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 279,903 $ 517,755 $ 305,358 $ 242,179 $ 99,778 $ 149,748 $ 83,182 $ 1,677,903 Special mention 250 — — 145 — 309 — 704 Classified 342 1,988 1,471 420 1,378 3,853 110 9,562 Total residential real estate loans $ 280,495 $ 519,743 $ 306,829 $ 242,744 $ 101,156 $ 153,910 $ 83,292 $ 1,688,169 Current period year-to-date gross charge-offs $ — $ — $ — $ 5 $ — $ 22 $ — $ 27 Commercial and industrial: Pass $ 252,933 $ 328,833 $ 183,124 $ 40,747 $ 61,655 $ 53,379 $ 1,091,475 $ 2,012,146 Special mention 524 9,918 — 96 — — 3,026 13,564 Classified 2,492 1,488 8,724 313 1,005 430 17,911 32,363 Total commercial and industrial loans $ 255,949 $ 340,239 $ 191,848 $ 41,156 $ 62,660 $ 53,809 $ 1,112,412 $ 2,058,073 Current period year-to-date gross charge-offs $ 111 $ 263 $ 40 $ 141 $ — $ 411 $ 7,104 $ 8,070 Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 286,293 $ 286,293 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 8,423 $ 4,473 $ 1,659 $ 510 $ 522 $ 58 $ 7,113 $ 22,758 Classified 20 72 27 — 3 — 1 123 Total consumer loans $ 8,443 $ 4,545 $ 1,686 $ 510 $ 525 $ 58 $ 7,114 $ 22,881 Current period year-to-date gross charge-offs $ — $ 90 $ 7 $ — $ — $ — $ 10 $ 107 The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2022, and gross charge-offs for the year ended December 31, 2022, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2022. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: Pass $ 885,244 $ 502,287 $ 283,368 $ 230,040 $ 168,079 $ 131,411 $ 69,952 $ 2,270,381 Special mention — — — — 8,174 1,359 1,558 11,091 Classified 930 1,795 1,551 4,014 2,965 11,901 50 23,206 Total commercial real estate loans $ 886,174 $ 504,082 $ 284,919 $ 234,054 $ 179,218 $ 144,671 $ 71,560 $ 2,304,678 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 166 $ — $ 166 Construction/land/land development: Pass $ 445,943 $ 320,951 $ 58,880 $ 27,381 $ 27,753 $ 5,253 $ 48,436 $ 934,597 Special mention 6,217 — — — — — — 6,217 Classified 180 100 286 38 160 1,708 2,339 4,811 Total construction/land/land development loans $ 452,340 $ 321,051 $ 59,166 $ 27,419 $ 27,913 $ 6,961 $ 50,775 $ 945,625 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 535,739 $ 308,070 $ 261,293 $ 107,530 $ 48,652 $ 123,052 $ 80,375 $ 1,464,711 Special mention — — 390 — — — — 390 Classified 2,227 2,764 90 1,494 1,064 4,653 145 12,437 Total residential real estate loans $ 537,966 $ 310,834 $ 261,773 $ 109,024 $ 49,716 $ 127,705 $ 80,520 $ 1,477,538 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 91 $ — $ 91 Commercial and industrial: Pass $ 454,813 $ 239,411 $ 82,168 $ 75,043 $ 40,534 $ 29,745 $ 1,083,221 $ 2,004,935 Special mention 8,683 2,563 — — 187 — 1,620 13,053 Classified 3,641 11,455 188 1,978 1,224 3 14,684 33,173 Total commercial and industrial loans $ 467,137 $ 253,429 $ 82,356 $ 77,021 $ 41,945 $ 29,748 $ 1,099,525 $ 2,051,161 Current period year-to-date gross charge-offs $ 28 $ 726 $ 48 $ 869 $ 337 $ 1,103 $ 5,348 $ 8,459 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 282,298 $ 282,298 Special mention — — — — — — 2,042 2,042 Classified — — — — — — 527 527 Total mortgage warehouse lines of credit $ — $ — $ — $ — $ — $ — $ 284,867 $ 284,867 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 9,730 $ 3,822 $ 1,210 $ 784 $ 135 $ 15 $ 10,408 $ 26,104 Classified 22 19 — 6 — — 2 49 Total consumer loans $ 9,752 $ 3,841 $ 1,210 $ 790 $ 135 $ 15 $ 10,410 $ 26,153 Current period year-to-date gross charge-offs $ 3 $ 27 $ 7 $ 2 $ 1 $ 1 $ 2 $ 43 The following tables present the Company’s loan portfolio aging analysis at the dates indicated: September 30, 2023 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ — $ — $ 136 $ 136 $ 2,435,755 $ 2,435,891 $ — Construction/land/land development 1,085 23 55 1,163 1,075,593 1,076,756 — Residential real estate 261 3,076 4,425 7,762 1,680,407 1,688,169 — Total real estate 1,346 3,099 4,616 9,061 5,191,755 5,200,816 — Commercial and industrial 918 6,746 3,509 11,173 2,046,900 2,058,073 — Mortgage warehouse lines of credit — — — — 286,293 286,293 — Consumer 88 10 15 113 22,768 22,881 — Total LHFI $ 2,352 $ 9,855 $ 8,140 $ 20,347 $ 7,547,716 $ 7,568,063 $ — December 31, 2022 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ 31 $ — $ 104 $ 135 $ 2,304,543 $ 2,304,678 $ — Construction/land/land development 854 — 17 871 944,754 945,625 — Residential real estate 1,814 891 450 3,155 1,474,383 1,477,538 — Total real estate 2,699 891 571 4,161 4,723,680 4,727,841 — Commercial and industrial 3,878 1,972 544 6,394 2,044,767 2,051,161 — Mortgage warehouse lines of credit — — — — 284,867 284,867 — Consumer 350 16 11 377 25,776 26,153 — Total LHFI $ 6,927 $ 2,879 $ 1,126 $ 10,932 $ 7,079,090 $ 7,090,022 $ — The following tables detail activity in the ALCL by portfolio segment. Accrued interest of $33.0 million and $21.9 million was not included in the book value for the purposes of calculating the allowance at September 30, 2023 and 2022, respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Three Months Ended September 30, 2023 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 20,839 $ 8,729 $ 9,018 $ 54,173 $ 817 $ 777 $ 94,353 Charge-offs — — — 3,187 — 15 3,202 Recoveries 28 3 3 477 — 5 516 Provision (1) (1,758) 613 1,048 3,990 (359) (24) 3,510 Ending balance $ 19,109 $ 9,345 $ 10,069 $ 55,453 $ 458 $ 743 $ 95,177 Average balance $ 2,428,969 $ 1,044,180 $ 1,663,291 $ 2,024,675 $ 376,275 $ 23,704 $ 7,561,094 Net charge-offs to loan average balance (annualized) — % — % — % 0.53 % — % 0.17 % 0.14 % __________________________ (1) The $3.5 million provision for credit losses on the consolidated statements of income includes a $3.5 million provision for loan credit losses, a $50,000 provision for off-balance sheet commitments and $45,000 net benefit provision for held to maturity securities credit losses for the three months ended September 30, 2023. Three Months Ended September 30, 2022 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 16,112 $ 4,707 $ 5,851 $ 35,477 $ 459 $ 517 $ 63,123 Allowance for loan credit losses - BTH merger (1) 1 — — 5,525 — 1 5,527 Charge-offs — — — 1,618 — 10 1,628 Recoveries 17 200 6 325 — 2 550 Provision (2) 1,901 2,159 1,898 9,349 97 383 15,787 Ending balance $ 18,031 $ 7,066 $ 7,755 $ 49,058 $ 556 $ 893 $ 83,359 Average balance $ 2,046,411 $ 760,682 $ 1,249,746 $ 1,816,912 $ 491,584 $ 24,137 $ 6,389,472 Net charge-offs to loan average balance (annualized) — % (0.10) % — % 0.28 % — % 0.13 % 0.07 % ____________________________ (1) Excluded from the allowance is $10.8 million in PCD loans that were acquired in the merger with BTH that were added to the allowance and immediately written off. (2) The $16.9 million provision for credit losses on the consolidated statements of income includes a $15.8 million provision for loan losses, a $1.2 million provision for off-balance sheet commitments and no provision for held to maturity securities credit losses for the three months ended September 30, 2022. Nine Months Ended September 30, 2023 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 19,772 $ 7,776 $ 8,230 $ 50,148 $ 379 $ 856 $ 87,161 Charge-offs 42 — 27 8,070 — 107 8,246 Recoveries 113 3 13 2,189 — 12 2,330 Provision (1) (734) 1,566 1,853 11,186 79 (18) 13,932 Ending balance $ 19,109 $ 9,345 $ 10,069 $ 55,453 $ 458 $ 743 $ 95,177 Average balance $ 2,393,028 $ 997,296 $ 1,599,803 $ 2,051,272 $ 329,205 $ 24,836 $ 7,395,440 Net charge-offs to loan average balance (annualized) — % — % — % 0.38 % — % 0.51 % 0.11 % _________________________ (1) The $14.0 million provision for credit losses on the consolidated statement of income includes a $13.9 million provision for loan losses, a $95,000 provision for off-balance sheet commitments and a $9,000 net benefit provision for held to maturity securities credit losses for the nine months ended September 30, 2023. Nine Months Ended September 30, 2022 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 13,425 $ 4,011 $ 6,116 $ 40,146 $ 340 $ 548 $ 64,586 Allowance for loan credit losses - BTH merger (1) 1 — — 5,525 — 1 5,527 Charge-offs 166 — 75 5,943 — 38 6,222 Recoveries 19 200 98 1,505 — 15 1,837 Provision (2) 4,752 2,855 1,616 7,825 216 367 17,631 Ending balance $ 18,031 $ 7,066 $ 7,755 $ 49,058 $ 556 $ 893 $ 83,359 Average balance $ 1,865,658 $ 638,683 $ 1,042,397 $ 1,548,419 $ 453,658 $ 18,887 $ 5,567,702 Net charge-offs to loan average balance (annualized) 0.01 % (0.04) % — % 0.38 % — % 0.16 % 0.11 % _________________________ (1) Excluded from the allowance is $10.8 million in PCD loans that were acquired in the merger with BTH that were added to the allowance and immediately written off. (2) The $20.1 million provision for credit losses on the consolidated statements of income includes a $17.6 million provision for loan losses, a $1.7 million provision for off-balance sheet commitments and a $725,000 provision for held to maturity securities credit losses for the nine months ended September 30, 2022. The decrease in provision expense during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, was primarily due to the provision expense increase associated with the BTH merger which occurred on August 1, 2022, offset by an increase in loan provision primarily due to loan growth during the intervening period, as well as an increase in the provision for individually evaluated loan balances at September 30, 2023, compared to September 30, 2022. The Company’s credit quality profile in relation to the ALCL drove an increase of $7.3 million in the collectively evaluated portion of the reserve at September 30, 2023, when compared to September 30, 2022, primarily due to qualitative factor changes across the Company’s risk pools. The individually evaluated portion of the reserve increased $4.5 million at September 30, 2023, when compared to September 30, 2022. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ALCL allocated to these loans. September 30, 2023 (Dollars in thousands) Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total Real Estate $ 752 $ — $ 3,799 $ — $ — $ — $ 4,551 Equipment — — — 152 — — 152 Other — — — 529 — — 529 Total $ 752 $ — $ 3,799 $ 681 $ — $ — $ 5,232 ALCL Allocation $ — $ — $ — $ — $ — $ — $ — December 31, 2022 (Dollars in thousands) Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total Real Estate $ 273 $ 97 $ 6,731 $ — $ — $ — $ 7,101 Accounts Receivable — — — 831 — — 831 Equipment — — — 285 — — 285 Total $ 273 $ 97 $ 6,731 $ 1,116 $ — $ — $ 8,217 ALCL Allocation $ — $ — $ — $ 738 $ — $ — $ 738 Collateral-dependent loans consist primarily of residential real estate, commercial real estate and commercial and industrial loans. These loans are individually evaluated when foreclosure is probable or when the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral. In the case of commercial and industrial loans secured by equipment, the fair value of the collateral is estimated by third-party valuation experts. Loan balances are charged down to the underlying collateral value when they are deemed uncollectible. Note that the Company did not elect to use the collateral maintenance agreement practical expedient available under CECL. Nonaccrual LHFI was as follows: Nonaccrual With No Total Nonaccrual (Dollars in thousands) Loans secured by real estate: September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Commercial real estate $ 900 $ 435 $ 942 $ 526 Construction/land/land development — 59 235 270 Residential real estate 5,363 7,023 13,236 7,712 Total real estate 6,263 7,517 14,413 8,508 Commercial and industrial 4,592 527 17,072 1,383 Consumer — — 123 49 Total nonaccrual loans $ 10,855 $ 8,044 $ 31,608 $ 9,940 All interest formerly accrued but not received for loans placed on nonaccrual status is reversed from interest income. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. At September 30, 2023, and December 31, 2022, the Company had $682,000 and zero funding commitments for loans in which the terms were modified as a result of the borrowers experiencing financial difficulty, respectively. For the nine months ended September 30, 2023 and 2022, gross interest income that would have been recorded had the nonaccruing loans been current in accordance with their original terms, was $884,000 and $799,000, respectively. No interest income was recorded on these loans while they were considered nonaccrual during the nine months ended September 30, 2023 and 2022. The Company elects the fair value option for recording residential mortgage loans held for sale in accordance with U.S. GAAP. The Company transferred $7.1 million of nonperforming mortgage loans from the held for sale portfolio to the held for investment portfolio during the three months ended June 30, 2023. As a result, the company had zero nonaccrual mortgage loans held for sale that were recorded using the fair value option election at September 30, 2023, compared to $3.9 million at December 31, 2022. The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the dates indicated. Three Months Ended September 30, 2023 Term Extension Combination: Other-Than-Insignificant Payment Delay (Dollars in thousands) Amortized Cost % of Loans Amortized Cost % of Loans Amortized Cost % of Loans Loans secured by real estate: Commercial real estate $ 7,507 0.31 % $ — — % $ 427 0.02 % Construction/land/land development 3,807 0.35 — — — — Residential real estate 745 0.04 — — — — Total real estate 12,059 0.23 — — 427 0.01 Commercial and industrial 13,935 0.68 923 0.04 53 — Total $ 25,994 0.34 $ 923 0.01 $ 480 0.01 Nine Months Ended September 30, 2023 Term Extension Combination: Other-Than-Insignificant Payment Delay (Dollars in thousands) Amortized Cost % of Loans Amortized Cost % of Loans Amortized Cost % of Loans Loans secured by real estate: Commercial real estate $ 7,853 0.32 % $ — — % $ 427 0.02 % Construction/land/land development 3,808 0.35 — — — — Residential real estate 2,477 0.15 — — — — Total real estate 14,138 0.27 — — 427 0.01 Commercial and industrial 15,562 0.76 1,091 0.05 53 — Total $ 29,700 0.39 $ 1,091 0.01 $ 480 0.01 The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty during three and nine months ended September 30, 2023, respectively. Three Months Ended September 30, 2023 Interest Rate Reduction Term Extension Other-Than-Insignificant Payment Delay Commercial real estate N/A Added a weighted average 10.1 months to the life of the modified loans Delayed payment of weighted average 6 months Construction/land/land development N/A Added a weighted average 8.6 months to the life of the modified loans N/A Residential real estate N/A Added a weighted average 18.4 months to the life of the modified loans N/A Commercial and industrial Reduced weighted average contractual interest rate from 10.1% to 9.5% Added a weighted average 6.7 months to the life of the modified loans Delayed payment of weighted average 6 months Nine Months Ended September 30, 2023 Interest Rate Reduction Term Extension Other-Than-Insignificant Payment Delay Commercial real estate N/A Added a weighted average 12.1 months to the life of the modified loans Delayed payment of weighted average 6 months Construction/land/land development N/A Added a weighted average 13.1 months to the life of the modified loans N/A Residential real estate N/A Added a weighted average 9.3 months to the life of the modified loans N/A Commercial and industrial Reduced weighted average contractual interest rate from 9.9% to 9.0% Added a weighted average 9.0 months to the life of the modified loans Delayed payment of weighted average 6 months The following table depicts the performance of loans that have been modified Payment Status (Amortized Cost Basis) September 30, 2023 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due Loans secured by real estate: Commercial real estate $ 8,280 $ — $ — Construction/land/land development 3,808 — — Residential real estate 2,195 282 — Total real estate 14,283 282 — Commercial and industrial 16,705 — — Total LHFI $ 30,988 $ 282 $ — There were no loans to borrowers experiencing financial difficulty that defaulted during the nine months ended September 30, 2023, that were modified within the last nine months. A payment default is defined as a loan that was 90 or more days past due. The Company monitors the performance of modified loans on an ongoing basis. In the event of subsequent default, the ALCL is assessed on the basis of an individual evaluation of each loan. The modifications made during the periods presented did not significantly impact the Company’s determination of the allowance for credit losses. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5 — Fair Value of Financial Instruments Fair value is the exchange price that is expected to 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. Certain assets and liabilities are recorded in the Company’s consolidated financial statements at fair value. Some are recorded on a recurring basis and some on a non-recurring basis. The Company utilizes fair value measurement to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach to estimate the fair values of its financial instruments. Such valuation techniques are consistently applied. A hierarchy for fair value has been established, which categorizes the valuation techniques into three levels used to measure fair value. The three levels are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Fair value is based on significant other observable inputs that are generally determined based on a single price for each financial instrument provided to the Company by an unrelated third-party pricing service and is based on one or more of the following: • Quoted prices for similar, but not identical, assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in markets that are not active; • Inputs other than quoted prices that are observable, such as interest rate and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and • Other inputs derived from or corroborated by observable market inputs. Level 3 - Prices or valuation techniques that require inputs that are both significant and unobservable in the market. These instruments are valued using the best information available, some of which is internally developed, and reflects the Company’s own assumptions about the risk premiums that market participants would generally require and the assumptions they would use. These estimates can be inherently uncertain. There were no transfers between fair value reporting levels for any period presented. Fair Values of Assets and Liabilities Recorded on a Recurring Basis The following tables summarize financial assets and financial liabilities recorded at fair value on a recurring basis at September 30, 2023, and December 31, 2022, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. There were no changes in the valuation techniques during 2023 or 2022. September 30, 2023 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 264,912 $ 51,439 $ 316,351 Corporate bonds — 73,290 1,000 74,290 U.S. treasury securities 78,963 — — 78,963 U.S. government agency securities — 23,828 — 23,828 Commercial mortgage-backed securities — 90,020 — 90,020 Residential mortgage-backed securities — 500,748 — 500,748 Commercial collateralized mortgage obligations — 33,949 — 33,949 Residential collateralized mortgage obligations — 128,433 — 128,433 Asset-backed securities — 44,257 — 44,257 Securities available for sale 78,963 1,159,437 52,439 1,290,839 Securities carried at fair value through income — — 6,772 6,772 Loans held for sale — 14,944 — 14,944 Mortgage servicing rights — — 19,189 19,189 Other assets - derivatives — 29,493 — 29,493 Total recurring fair value measurements - assets $ 78,963 $ 1,203,874 $ 78,400 $ 1,361,237 Other liabilities - derivatives $ — $ (28,035) $ — $ (28,035) Total recurring fair value measurements - liabilities $ — $ (28,035) $ — $ (28,035) December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 334,708 $ 54,769 $ 389,477 Corporate bonds — 81,258 1,000 82,258 U.S. treasury securities 110,645 — — 110,645 U.S. government agency securities — 137,775 — 137,775 Commercial mortgage-backed securities — 91,943 — 91,943 Residential mortgage-backed securities — 572,303 — 572,303 Commercial collateralized mortgage obligations — 38,813 — 38,813 Residential collateralized mortgage obligations — 146,370 — 146,370 Asset-backed securities — 71,900 — 71,900 Securities available for sale 110,645 1,475,070 55,769 1,641,484 Securities carried at fair value through income — — 6,368 6,368 Loans held for sale — 25,389 — 25,389 Mortgage servicing rights — — 20,824 20,824 Other assets - derivatives — 26,733 — 26,733 Total recurring fair value measurements - assets $ 110,645 $ 1,527,192 $ 82,961 $ 1,720,798 Other liabilities - derivatives $ — $ (25,275) $ — $ (25,275) Total recurring fair value measurements - liabilities $ — $ (25,275) $ — $ (25,275) The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2023 and 2022, are summarized as follows: (Dollars in thousands) MSRs Securities Available for Sale Securities at Fair Value Through Income Balance at January 1, 2023 $ 20,824 $ 55,769 $ 6,368 Gain (loss) recognized in earnings: Mortgage banking revenue (1) (485) — — Other noninterest income — — 689 Loss recognized in AOCI — (703) — Purchases, issuances, sales and settlements: Originations 656 — — Sales (1,806) — — Settlements — (2,627) (285) Balance at September 30, 2023 $ 19,189 $ 52,439 $ 6,772 ___________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. (Dollars in thousands) MSRs Securities Available for Sale Securities at Fair Value Through Income Balance at January 1, 2022 $ 16,220 $ 41,461 $ 7,497 Gain (loss) recognized in earnings: Mortgage banking revenue (1) 2,409 — — Other noninterest income — — (875) Loss recognized in AOCI — (5,048) — Purchases, issuances, sales and settlements: Originations 1,926 — — Purchases — 25,112 — Acquired in BTH merger 1,099 5,000 — Settlements — (3,323) (275) Balance at September 30, 2022 $ 21,654 $ 63,202 $ 6,347 ___________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. The Company obtains fair value measurements for loans at fair value, securities available for sale and securities at fair value through income from an independent pricing service; therefore, quantitative unobservable inputs are unknown. The following methodologies were used to measure the fair value of financial assets and liabilities valued on a recurring basis: Securities Available for Sale Securities classified as available for sale are reported at fair value utilizing Level 1, Level 2 or Level 3 inputs. For Level 1 securities, the Company obtains the fair value measurements for those identical assets from an independent pricing service. For Level 2 securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, market consensus prepayment speeds, credit information and the security's terms and conditions, among other things. In order to ensure the fair values are consistent with ASC 820, Fair Value Measurements and Disclosures , the Company periodically checks the fair value by comparing them to other pricing sources, such as Bloomberg LP. The third-party pricing service is subject to an annual review of internal controls in accordance with the Statement on Standards for Attestation Engagements No. 16, which was made available to the Company. In certain cases where Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For level 3 securities, the Company determines the fair value of the instruments based on their callability, putability and prepay optionality. Putable instruments are valued at book value, non-putable instruments are priced mainly using a present value calculation based on the spread to the yield curve. Mortgage Servicing Rights (“MSRs”) The carrying amounts of the MSRs equal fair value, which are determined using a discounted cash flow valuation model. The significant assumptions used to value MSRs were as follows: September 30, 2023 December 31, 2022 Range Weighted Average (1) Range Weighted Average (1) Prepayment speeds 7.31% - 7.89% 7.64 % 7.65% - 9.20% 8.11 % Discount rates 10.25 - 12.75 10.31 9.50 - 22.07 12.55 __________________________ (1) The weighted average was calculated with reference to the principal balance of the underlying mortgages. Recently there have been significant market-driven fluctuations in the assumptions listed above. These fluctuations can be rapid and may continue to be significant. Typically, loans with higher average coupon rates have a greater likelihood of prepayment during comparatively low interest rate environments, while loans with lower average coupon rates have a lower likelihood of prepayment. The recent increase in rates has caused a decrease in the weighted average prepayment speed. Estimating these assumptions within ranges that market participants would use in determining the fair value of MSRs requires significant management judgment. Derivatives Fair values for interest rate swap agreements and interest rate lock commitments are based upon the amounts that would be required to settle the contracts. Fair values for risk participations, forward mortgage backed security purchases or loan sale commitments and future contracts to purchase United States treasury notes are based on the fair values of the underlying mortgage loans or securities and the probability of such commitments being exercised. Significant management judgment and estimation is required in determining these fair value measurements. Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected Certain assets are measured at fair value on a recurring basis due to the Company’s election to adopt fair value accounting treatment for those assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC Topic 815, Derivatives and Hedging. For assets for which the fair value has been elected, the earned current contractual interest payment is recognized in interest income, loan origination costs and fees on fair value option loans are recognized in earnings as incurred and not deferred. At September 30, 2023, and December 31, 2022, there were no gains or losses recorded attributable to changes in instrument-specific credit risk. The following tables summarize the difference between the fair value and the unpaid principal balance for financial instruments for which the fair value option has been elected: September 30, 2023 (Dollars in thousands) Aggregate Fair Value Principal Balance/Amortized Cost Difference Loans held for sale (1) $ 14,944 $ 14,715 $ 229 Securities carried at fair value through income 6,772 6,815 (43) Total $ 21,716 $ 21,530 $ 186 ____________________________ (1) There were no loans held for sale that were designated as nonaccrual or 90 days or more past due at September 30, 2023. December 31, 2022 (Dollars in thousands) Aggregate Fair Value Principal Balance/Amortized Cost Difference Loans held for sale (1) $ 25,389 $ 24,946 $ 443 Securities carried at fair value through income 6,368 7,100 (732) Total $ 31,757 $ 32,046 $ (289) ____________________________ (1) $3.9 million of loans held for sale were designated as nonaccrual or 90 days or more past due at December 31, 2022. Of this balance, $3.3 million was guaranteed by U.S. Government agencies. Changes in the fair value of assets for which the Company elected the fair value option are classified in the consolidated statements of income line items reflected in the following table: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Changes in fair value included in noninterest income: 2023 2022 2023 2022 Mortgage banking revenue (loans held for sale) $ (22) $ (309) $ (214) $ (741) Other income: Securities carried at fair value through income 666 (282) 689 (875) Total fair value option impact on noninterest income (1) $ 644 $ (591) $ 475 $ (1,616) ____________________________ (1) The fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 6 — Mortgage Banking for more detail. The following methodologies were used to measure the fair value of financial assets valued on a recurring basis for which the fair value option was elected: Securities at Fair Value through Income Securities carried at fair value through income are valued using a discounted cash flow with a credit spread applied to each instrument based on the creditworthiness of each issuer. Credit spreads ranged from 83 to 227 basis points at both September 30, 2023, and December 31, 2022. The Company believes the fair value approximates an exit price. Loans Held for Sale Fair values for loans held for sale are established using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans allocated. The Company believes the fair value approximates an exit price. Fair Value of Assets Recorded on a Nonrecurring Basis Equity Securities without Readily Determinable Fair Values Equity securities without readily determinable fair values totaled $63.8 million and $67.4 million at September 30, 2023, and December 31, 2022, respectively, and are shown on the face of the consolidated balance sheets. The majority of the Company’s equity investments qualify for the practical expedient allowed for equity securities without a readily determinable fair value, such that the Company has elected to carry these securities at cost adjusted for any observable transactions during the period, less any impairment. To date, no impairment has been recorded on the Company's investments in equity securities that do not have readily determinable fair values. During the three months ended September 30, 2023, the Company observed a price change in multiple orderly transactions for identical equity securities and adjusted the Company’s basis upwards in one of the Company’s equity securities by $10.1 million. Government National Mortgage Association Repurchase Asset The Company had zero and $24.6 million Government National Mortgage Association (“GNMA”) repurchase assets included in loans held for sale on the consolidated balance sheets at September 30, 2023, and December 31, 2022, respectively. The assets were valued at the lower of cost or market and, where market is lower than cost, valued using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans. During the second half of 2022, the Company entered into an agreement to sell its GNMA MSR portfolio, which met all final sale conditions in early 2023. The Company sold $1.8 million in GNMA MSR, with no significant additional gain or loss realized, and derecognized the related GNMA repurchase asset and offsetting liability during the quarter ended March 31, 2023. Individually Evaluated Loans with Credit Losses Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists. Allowable methods for determining the amount of credit loss include estimating the fair value using the fair value of the collateral for collateral-dependent loans and a discounted cash flow methodology for other evaluated loans that are not collateral dependent. If the loan is identified as collateral-dependent, the fair value method of measuring the amount of credit loss is utilized. Evaluating the fair value of the collateral for collateral-dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the loan is not collateral-dependent, the discounted cash flow method is utilized, which involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate. Loans that have experienced a credit loss with specific allocated losses are within Level 3 of the fair value hierarchy when the credit loss is determined using the fair value method. The fair value of loans that have experienced a credit loss with specific allocated losses was approximately $15.9 million and $20.7 million at September 30, 2023, and December 31, 2022, respectively. Non-Financial Assets Foreclosed assets held for sale are the only non-financial assets valued on a non-recurring basis that are initially recorded by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the ALCL. Additionally, valuations are periodically performed by management, and any subsequent reduction in value is recognized by a charge to income. The carrying value and fair value of foreclosed assets held for sale was estimated using Level 3 inputs based on observable market data and was $3.9 million and $806,000 at September 30, 2023, and December 31, 2022, respectively. At September 30, 2023, and December 31, 2022, the Company had zero and $10,000, respectively, in principal amount of residential mortgage loans in the process of foreclosure. Fair Values of Financial Instruments Not Recorded at Fair Value Loans The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and with no significant change in credit risk. The fair value of fixed rate loans and variable-rate loans, which reprice on an infrequent basis, is estimated by discounting future cash flows using exit level pricing, which combines the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality and an estimated additional rate to reflect a liquidity premium. An overall valuation adjustment is made for specific credit risks as well as general portfolio credit risk. Deposits The estimated fair value approximates carrying value for demand deposits. The fair value of fixed rate deposit liabilities with defined maturities is estimated by discounting future cash flows using the interest rates currently available for funding from the FHLB. The estimated fair value of deposits does not take into account the value of our long-term relationships with depositors, commonly known as core deposit intangibles, which are separate intangible assets, and not considered financial instruments. Nonetheless, the Company would likely realize a core deposit premium if the deposit portfolio were sold in the principal market for such deposits. Borrowed Funds The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed rate and fixed-to-floating-rate borrowings is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments. The estimated fair value approximates carrying value for variable-rate junior subordinated debentures that reprice quarterly. The carrying value and estimated fair values of financial instruments not recorded at fair value are as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Financial assets: Level 1 inputs: Carrying Estimated Carrying Estimated Cash and cash equivalents $ 305,278 $ 305,278 $ 358,972 $ 358,972 Level 2 inputs: Non-marketable equity securities held in other financial institutions 63,842 63,842 67,378 67,378 GNMA repurchase asset — — 24,569 24,569 Accrued interest and loan fees receivable 41,231 41,231 38,136 38,136 Level 3 inputs: Securities held to maturity 10,790 11,005 11,275 11,970 LHFI, net 7,472,886 7,094,772 7,002,861 6,835,770 Financial liabilities: Level 2 inputs: Deposits 8,374,488 8,358,211 7,775,702 7,753,966 FHLB advances and other borrowings 12,213 11,679 639,230 639,103 Subordinated indebtedness 196,825 187,369 201,765 181,624 Accrued interest payable 14,126 14,126 3,917 3,917 |
Mortgage Banking
Mortgage Banking | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | Note 6 — Mortgage Banking The following table presents the Company’s revenue from mortgage banking operations: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Mortgage banking revenue 2023 2022 2023 2022 Origination $ 124 $ 207 $ 384 $ 641 Gain on sale of loans held for sale 757 636 2,380 4,477 Originations of MSRs 225 462 656 1,926 Servicing 915 1,446 2,840 4,306 Total gross mortgage revenue 2,021 2,751 6,260 11,350 MSR valuation adjustments, net (1) (122) (2,034) (485) 2,409 Mortgage HFS and pipeline fair value adjustment (110) (410) (27) (971) MSR hedge impact (897) (1,236) (1,673) (7,267) Mortgage banking revenue $ 892 $ (929) $ 4,075 $ 5,521 ____________________________ (1) Based upon broker estimate, the Company recorded a $2.0 million impairment on the held for sale GNMA MSR portfolio during the quarter ended September 30, 2022. Management uses forward-settling mortgage-backed securities and U.S. Treasury futures to mitigate the impact of changes in fair value of MSRs. See Note 8 — Derivative Financial Instruments for further information. Mortgage Servicing Rights Activity in MSRs was as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 19,086 $ 22,127 $ 20,824 $ 16,220 Servicing acquired in BTH merger — 1,099 — 1,099 Addition of servicing rights 225 462 656 1,926 Settlement of sale of GNMA MSR — — (1,806) — Valuation adjustment, net of amortization (122) (2,034) (485) 2,409 Balance at end of period $ 19,189 $ 21,654 $ 19,189 $ 21,654 During the second half of 2022, the Company entered into an agreement to sell its GNMA MSR portfolio, which met all final sale conditions in early 2023. The Company sold $1.8 million in GNMA MSR, with no significant additional gain or loss realized, and derecognized the related GNMA repurchase asset and offsetting liability during the quarter ended March 31, 2023. The Company receives annual servicing fee income approximating 0.25% of the outstanding balance of the underlying loans. In connection with the Company's activities as a servicer of mortgage loans, the investors and the securitization trusts have no recourse to the Company’s assets for failure of debtors to pay when due. The Company is potentially subject to losses in its loan servicing portfolio due to loan foreclosures. The Company has obligations to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the economic benefits of a loan if it is determined that the loan sold violated representations or warranties made by the Company and/or the borrower at the time of the sale, which the Company refers to as mortgage loan servicing putback expenses. Such representations and warranties typically include those made regarding loans that had missing or insufficient file documentation and/or loans obtained through fraud by borrowers or other third parties. Putback claims may be made until the loan is paid in full. When a putback claim is received, the Company evaluates the claim and takes appropriate actions based on the nature of the claim. The Company is required by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to provide a response to putback claims within 60 days of the date of receipt. At September 30, 2023, and December 31, 2022, the reserve for mortgage loan servicing putback expenses totaled $146,000 and $217,000, respectively. There is inherent uncertainty in reasonably estimating the requirement for reserves against future mortgage loan servicing putback expenses. Future putback expenses depend on many subjective factors, including the review procedures of the purchasers and the potential refinance activity on loans sold with servicing released and the subsequent consequences under the representations and warranties. GNMA optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing. At the servicer’s option, and without GNMA's prior authorization, the servicer may repurchase a delinquent loan for an amount equal to 100% of the remaining principal balance of the loan. This buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When a financial institution is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be included in the consolidated balance sheets as mortgage loans held for sale, regardless of whether the institution intends to exercise the buy-back option. These loans totaled $24.6 million at December 31, 2022, and were recorded as mortgage loans held for sale at the lower of cost or fair value with a corresponding liability in FHLB advances and other borrowings on the Company’s consolidated balance sheets. The final sale conditions of the GNMA MSR portfolio were met during the quarter ended March 31, 2023, and, accordingly, there were no GNMA repurchase program loans on the balance sheet at September 30, 2023. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 7 — Borrowings Borrowed funds are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Short-term FHLB advances $ — $ 550,000 Long-term FHLB advances 6,541 6,740 GNMA repurchase liability — 24,569 Overnight repurchase agreements with depositors 5,672 27,921 Correspondent short-term borrowings — 30,000 Total FHLB advances and other borrowings $ 12,213 $ 639,230 Subordinated indebtedness, net $ 196,825 $ 201,765 Debt Security Issue Year Interest Rate Outstanding Amount (Dollars in thousands) Floating rate subordinated promissory notes due June 2025 2015 Prime +175 bps Min: 3.875% Max: 6.375% $ 5,500 Floating rate subordinated promissory notes due December 2023 2016 Prime +125 bps Min: 3.875% Max: 6.375% 3,000 Floating rate subordinated promissory notes due December 2026 2016 Prime +175 bps Min: 3.875% Max: 6.375% 6,750 Floating rate subordinated promissory notes due December 2024 2017 Prime +125 bps Min: 3.875% Max: 6.375% 10,850 Floating rate subordinated promissory notes due December 2027 2017 Prime +175 bps Min: 3.875% Max: 6.375% 5,200 Floating rate subordinated promissory notes due December 2025 2018 Prime +50 bps Min: 3.875% Max: 6.125% 3,200 Floating rate subordinated promissory notes due December 2028 2018 Prime +75 bps Min: 3.875% Max: 6.125% 1,900 Fixed to floating rate subordinated promissory notes due June 2031 2021 Through 6/30/26: 4.00% After 6/30/26: Prime +75 bps Min: 3.875% Max: 6.125% 1,000 Remaining unamortized merger-related fair value adjustment at September 30, 2023 (38) Total assumed subordinated notes 37,362 Legacy subordinated indebtedness 143,129 Total subordinated indebtedness, excluding junior subordinated debt $ 180,491 The following table is a summary of the terms of the current junior subordinated debentures at September 30, 2023: (Dollars in thousands) Issuance Trust Issuance Date Maturity Date Amount Outstanding Rate Type Current Rate Maximum Rate CTB Statutory Trust I 07/2001 07/2031 $ 6,702 Variable (1) 8.37 % 12.50 % First Louisiana Statutory Trust I 09/2006 12/2036 4,124 Variable (2) 7.47 16.00 BT Holdings Trust I 05/2007 09/2037 7,217 Variable (3) 7.30 N/A Par amount 18,043 Unamortized original issue discount (1,026) Unamortized purchase accounting discount (683) Total junior subordinated debt at September 30, 2023 $ 16,334 ____________________________ (1) The trust preferred securities reprice quarterly based on the three-month average SOFR plus 3.30%, with the last reprice date on July 27, 2023. (2) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 1.80%, plus 0.26161% SOFR spread adjustment, with the last reprice date on September 13, 2023. (3) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 1.64%, plus 0.26161% SOFR spread adjustment, with the last reprice date on September 1, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 8 — Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company enters into derivative financial instruments to manage risks related to differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments, as well as to manage changes in fair values of some assets which are marked at fair value through the consolidated statement of income on a recurring basis. Cash Flow Hedges of Interest Rate Risk The Company is a party to interest rate swap agreements under which the Company receives interest at a variable rate and pays at a fixed rate. The derivative instruments represented by these swap agreements are designated as cash flow hedges of the Company’s forecasted variable cash flows under a variable-rate term borrowing agreements. During the terms of the swap agreements, the effective portion of changes in the fair value of the derivative instruments are recorded in accumulated other comprehensive (loss) income and subsequently reclassified into earnings in the periods that the hedged forecasted variable-rate interest payments affected earnings. There was no ineffective portion of the change in fair value of the derivatives recognized directly in earnings. The entire swap fair value will be reclassified into earnings before the expiration dates of the swap agreements. Derivatives Not Designated as Hedges Customer interest rate derivative program The Company offers certain derivatives products, primarily interest rate swaps, directly to qualified commercial banking customers to facilitate their risk management strategies. In most instances, the Company acts only as an intermediary, simultaneously entering into offsetting agreements with unrelated financial institutions, thereby mitigating its net risk exposure resulting from such transactions without significantly impacting its results of operations. Because the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivatives and any offsetting derivatives are recognized directly in earnings as a component of noninterest income. From time to time, the Company shares in credit risk on interest rate swap arrangements, by entering into risk participation agreements with syndication partners. These are accounted for at fair value and disclosed as risk participation derivatives. Mortgage banking derivatives The Company enters into certain derivative agreements as part of its mortgage banking and related risk management activities. These agreements include interest rate lock commitments on prospective residential mortgage loans and forward commitments to sell these loans to investors on a mandatory delivery basis. The Company also economically hedges the value of MSRs by entering into a series of commitments to purchase mortgage-backed securities in the future and U.S. Treasury future contracts. Fair Values of Derivative Instruments on the Consolidated Balance Sheets The following tables disclose the fair value of derivative instruments in the Company’s consolidated balance sheets at September 30, 2023, and December 31, 2022, as well as the effect of these derivative instruments on the Company’s consolidated statements of income for the nine months ended September 30, 2023 and 2022. Derivative instruments and their related gains and losses are reported in other operating activities, net in the statements of cash flows. (Dollars in thousands) Notional Amounts (1) Fair Values Derivatives designated as cash flow hedging instruments: September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Interest rate swaps included in other assets $ 10,500 $ 10,500 $ 1,106 $ 1,043 Derivatives not designated as hedging instruments: Interest rate swaps included in other assets $ 366,934 $ 352,842 $ 27,991 $ 25,482 Interest rate swaps included in other liabilities 360,119 345,742 (27,517) (25,175) Risk participation agreements included in other assets 20,000 59,738 1 — Forward commitments to purchase forward-settling mortgage-backed securities included in other liabilities 10,000 7,000 (153) (100) Forward commitments to purchase treasury notes in other liabilities 23,500 31,500 (365) — Forward commitments to sell residential mortgage loans included in other assets 4,500 8,500 53 7 Interest rate-lock commitments on residential mortgage loans included in other assets 14,154 9,544 342 201 $ 799,207 $ 814,866 $ 352 $ 415 ____________________________ (1) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. The weighted-average rates paid and received for interest rate swaps at September 30, 2023, and December 31, 2022, were as follows: Weighted-Average Interest Rate September 30, 2023 December 31, 2022 Interest rate swaps: Paid Received Paid Received Cash flow hedges 4.24 % 8.25 % 4.98 % 5.72 % Non-hedging interest rate swaps - financial institution counterparties 4.77 7.87 3.72 5.75 Non-hedging interest rate swaps - customer counterparties 7.87 4.77 5.75 3.72 Gains and losses recognized on derivative instruments not designated as hedging instruments are as follows: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments: 2023 2022 2023 2022 Amount of loss recognized in mortgage banking revenue (1) $ (1,102) $ (1,317) $ (1,613) $ (3,537) Amount of gain recognized in other non-interest income 82 210 167 652 ____________________________ (1) Gains and losses on these instruments are largely offset by market fluctuations in mortgage servicing rights. See Note 6 — Mortgage Banking for more information on components of mortgage banking revenue. Some interest rate swaps included in other assets were subject to a master netting arrangement with the counterparty in all periods presented and could be offset against some amounts included in interest rate swaps included in other liabilities. The Company has chosen not to net these exposures in the consolidated balance sheets, and any impact of netting these amounts would not be significant. At September 30, 2023, and December 31, 2022, the Company had cash collateral on deposit with swap counterparties totaling $4.0 million and $7.6 million, respectively. These amounts are included in interest-bearing deposits in banks in the consolidated balance sheets and are considered restricted cash until such time as the underlying swaps are settled. |
Stock and Incentive Compensatio
Stock and Incentive Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock and Incentive Compensation Plans | Note 9 — Stock and Incentive Compensation Plans The Company has granted, and currently has outstanding, stock and incentive compensation awards subject to the provisions of the Company’s 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan is designed to provide flexibility to the Company regarding its ability to motivate, attract and retain the services of key officers, employees and directors. The 2012 Plan allows the Company to make grants of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards (“RSA”), restricted stock units (“RSU”), dividend equivalent rights, performance stock units (“PSU”) or any combination thereof. At September 30, 2023, the maximum number of shares of the Company’s common stock available for issuance under the 2012 Plan was 33,097 shares. Additionally, the Company’s stockholders approved an employee stock purchase plan (“ESPP”) which qualified as an ESPP under IRS guidelines. The ESPP provides for the purchase of up to an aggregate one million shares of the Company’s common stock by employees. Under the ESPP, employees of the Company, who elect to participate, have the right to purchase a limited number of shares of the Company’s common stock at a 15% discount from the lower of the market value of the common stock at the beginning or the end of each one year offering period, beginning on June 1st. The ESPP benefit is treated as compensation to the employee, and the compensation expense will be recognized over the service period based on the grant date fair value of the rights determined at the beginning of the purchase period, adjusted for forfeitures and certain modifications. At September 30, 2023, there was $312,000 of total unrecognized compensation cost related to estimated ESPP shares for the June 1, 2023, ESPP purchase period. These costs are expected to be recognized over a period of 0.67 year. The table below includes the weighted-average assumptions used to calculate the grant date fair value of the ESPP rights for the periods indicated using the Black-Scholes option pricing model: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Expected term (in years) 1.00 1.00 1.00 1.00 Dividend yield $ 2.08 $ 1.52 $ 1.81 $ 1.38 Risk-free interest rate 4.94 % 2.00 % 3.52 % 0.98 % Expected volatility 31.12 32.56 31.81 39.75 The ESPP shares purchased are as follows for the dates indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ESPP shares purchased — — 46,213 26,089 Shares available for issuance under the ESPP 927,698 973,911 927,698 973,911 The Compensation Committee (“Committee”) has approved and the Company has granted PSUs to select officers and employees under the 2012 Plan. Each PSU represents a right for the participant to receive shares of Company common stock or cash equal to the fair market value of such stock, as determined by the Committee. The number of PSUs to which the participant may be entitled will vary from 0% to 150% of the target number of PSUs, based on the Company’s achievement of specified performance criteria during the performance period compared to performance benchmarks adopted by the Committee and, further, the participant’s continuous service with the Company through the third anniversary of the date of the grant. Each performance period commences on January 1 and ends three years later on December 31, (“Performance Period”). Share-based compensation cost charged to income for the three and nine months ended September 30, 2023 and 2022, is presented below. There was no stock option expense for any of the periods shown. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 RSA & RSU $ 1,180 $ 753 $ 3,236 $ 2,030 PSU 41 134 336 283 ESPP 114 83 314 235 Total stock compensation expense $ 1,335 $ 970 $ 3,886 $ 2,548 Related tax benefits recognized in net income $ 280 $ 204 $ 816 $ 535 Restricted Stock and Performance Stock Grants The Company’s RSAs and RSUs are time-vested awards and are granted to the Company’s Board of Directors, executives and senior management team. The service period in which time-vested awards are earned ranges from one The Company’s PSU awards, excluding the CEO PSUs, are three-year cliff-vested awards, with each unit divided into two categories (“ROAA Unit Group” and “ROAE Unit Group”), composed of an equivalent number of initial PSUs granted. The PSUs do not reflect potential increases or decreases resulting from the interim performance results until the final performance results are determined at the end of the three-year period. The ROAA Unit Group is based upon the Company’s Performance Period Return on Average Assets performance, and the ROAE Unit Group is based upon the Company’s Performance Period Return on Average Equity performance. The PSUs are initially valued utilizing the fair value of the Company’s stock at the grant date, assuming 100% of the target number of units are achieved. Subsequent valuation of the PSUs is determined using the ratio of the actual Company’s Performance Period ROAA or ROAE to the Company’s targeted Performance Period ROAA or ROAE, applied to the PSUs awarded times the Company’s closing month end stock price for the month immediately preceding the period end date. Forfeitures are recognized as they occur. The following table summarizes the Company’s award activity: Nine Months Ended September 30, 2023 2022 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested RSAs, January 1, 27,391 $ 35.37 48,048 $ 35.27 Granted RSAs 16,788 28.61 12,840 37.39 Vested RSAs (17,237) 34.33 (22,682) 35.73 Nonvested RSAs, September 30, 26,942 31.82 38,206 35.71 Nonvested RSUs, January 1, 270,390 $ 39.63 73,977 $ 40.64 Granted RSUs 113,674 35.70 87,795 43.09 Vested RSUs (53,263) 41.94 (23,260) 40.40 Forfeited RSUs (10,014) 43.44 (1,841) 43.48 Nonvested RSUs, September 30, 320,787 37.73 136,671 42.21 Nonvested PSUs, January 1, 157,367 $ 29.06 — $ — Granted PSUs 43,591 30.69 27,632 40.85 Forfeited PSUs (3,116) 30.69 — — Nonvested PSUs, September 30, 197,842 27.96 27,632 40.85 At September 30, 2023, there was $342,000, $10.6 million and $2.8 million of total unrecognized compensation cost related to nonvested RSA shares, RSU shares and PSU shares under the 2012 Plan, respectively. Those costs are expected to be recognized over a weighted-average period of 0.4, 3.8 and 2.1 years for RSA, RSU and PSU shares, respectively. Stock Option Grants The Company has previously issued common stock options to select officers and employees primarily through individual agreements. The exercise price of each option varies by agreement and is based on the fair value of the stock at the date of the grant. No outstanding stock option has a term that exceeds twenty years, and all of the outstanding options are fully vested. The Company recognized compensation cost for stock option grants over the required service period based upon the grant date fair value, which is established using a Black-Scholes valuation model. The Black-Scholes valuation model uses assumptions of risk-free interest rate, expected term of stock options, expected stock price volatility and expected dividends. Forfeitures are recognized as they occur. In conjunction with the BTH merger, the Company assumed the BTH 2012 Equity Incentive Plan and converted all outstanding options to purchase BTH common stock into options to purchase an aggregate of 611,676 shares of the Company’s common stock. Under the terms of applicable change in control provisions within the BTH 2012 Equity Incentive Plan and BTH Notice Of Stock Option Award, all BTH stock options fully vested immediately prior to the closing of the merger that occurred on August 1, 2022. BTH converted options have no expiration dates past August 16, 2031, and no further grants will be made under the BTH 2012 Equity Incentive Plan. The table below summarizes the status of the Company’s stock options and changes during the nine months ended September 30, 2023 and 2022. (Dollars in thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Nine Months Ended September 30, 2023 Outstanding at January 1, 2023 504,437 $ 29.46 5.13 $ 3,736 Exercised (55,897) 17.35 — 918 Expired (11,081) 33.63 — — Outstanding and exercisable at September 30, 2023 437,459 30.90 3.88 917 Nine Months Ended September 30, 2022 Outstanding at January 1, 2022 39,200 $ 10.73 2.28 $ 1,262 BTH options converted to OBNK options 611,676 28.62 — — Exercised (60,687) 19.67 — 1,373 Expired (331) 37.01 — — Outstanding and exercisable at September 30, 2022 589,858 28.05 4.96 5,971 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Note 10 — Accumulated Other Comprehensive (Loss) Income Accumulated other comprehensive (loss) income (“AOCI”) includes the after-tax change in unrealized gains and losses on AFS securities and cash flow hedging activities. (Dollars in thousands) Unrealized (Loss) Gain on AFS Securities Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive (Loss) Income Balance at January 1, 2023 $ (160,700) $ 825 $ (159,875) Net change (12,904) 50 (12,854) Balance at September 30, 2023 $ (173,604) $ 875 $ (172,729) Balance at January 1, 2022 $ 5,809 $ (80) $ 5,729 Net change (181,919) 957 (180,962) Balance at September 30, 2022 $ (176,110) $ 877 $ (175,233) |
Capital and Regulatory Matters
Capital and Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Banking Regulation [Abstract] | |
Capital and Regulatory Matters | Note 11 — Capital and Regulatory Matters The Company (on a consolidated basis) and the Bank is subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Company is subject to the Basel III regulatory capital framework (“Basel III Capital Rules”), which includes a 2.5% capital conservation buffer. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, which include dividend payments, stock repurchases and to pay discretionary bonuses to executive officers. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1 capital, Tier 1 capital, Tier 1 capital, and total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average total consolidated assets (as defined). Management believes, at September 30, 2023, and December 31, 2022, that the Company and the Bank met all capital adequacy requirements to which they are subject, including the capital buffer requirement. At September 30, 2023, and December 31, 2022, Origin’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” Origin must maintain minimum total risk-based, common equity Tier 1 capital, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. A final rule adopted by the federal banking agencies in February 2019 provides banking organizations with the option to phase in, over a three-year period, the adverse day-one regulatory capital effects of the adoption of CECL. In addition, on March 27, 2020, the federal banking agencies issued an interim final rule that gives banking organizations that were required to implement CECL before the end of 2020 the option to delay for two years CECL’s adverse effects on regulatory capital. Origin elected to adopt CECL in the first quarter of 2020 and exercised the option to delay the estimated impact of the adoption of CECL on the Company’s regulatory capital for two years (from January 2020 through December 31, 2021). The two-year delay is followed by a three-year transition period of CECL’s initial impact on the Company’s regulatory capital (from January 1, 2022, through December 31, 2024). The amount representing the CECL impact to the Company’s regulatory capital that will be ratably transitioning back into regulatory capital over the transition period is $3.2 million and $5.1 million at September 30, 2023, and December 31, 2022, respectively. The actual capital amounts and ratios of the Company and the Bank at September 30, 2023, and December 31, 2022, are presented in the following table: (Dollars in thousands) September 30, 2023 Actual Minimum Capital Required - Basel III To be Well Capitalized Under Prompt Corrective Action Provisions Common Equity Tier 1 Capital to Risk-Weighted Assets Amount Ratio Amount Ratio Amount Ratio Origin Bancorp, Inc. $ 988,951 11.46 % $ 604,324 7.00 % N/A N/A Origin Bank 1,034,519 12.02 602,430 7.00 $ 559,399 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 1,004,742 11.64 733,823 8.50 N/A N/A Origin Bank 1,034,519 12.02 731,522 8.50 688,492 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 1,261,080 14.61 906,488 10.50 N/A N/A Origin Bank 1,201,282 13.96 903,647 10.50 860,616 10.00 Leverage Ratio Origin Bancorp, Inc. 1,004,742 10.00 402,029 4.00 N/A N/A Origin Bank 1,034,519 10.33 400,778 4.00 500,973 5.00 December 31, 2022 Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 906,859 10.93 580,857 7.00 N/A N/A Origin Bank 952,579 11.50 579,775 7.00 538,363 6.50 Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 922,584 11.12 705,327 8.50 N/A N/A Origin Bank 952,579 11.50 704,013 8.50 662,600 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 1,180,665 14.23 871,290 10.50 N/A N/A Origin Bank 1,109,257 13.39 869,661 10.50 828,249 10.00 Leverage Ratio Origin Bancorp, Inc. 922,584 9.66 381,955 4.00 N/A N/A Origin Bank 952,579 9.94 383,359 4.00 479,198 5.00 In the ordinary course of business, the Company depends on dividends from the Bank to provide funds for the payment of dividends to stockholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared and paid exceed the Bank’s year-to-date net income combined with the retained net income for the preceding year, which was $141.4 million at September 30, 2023. Stock Repurchases In July 2022, the Board of Directors of the Company authorized a stock repurchase program pursuant to which the Company may, from time to time, purchase up to $50 million of its outstanding common stock. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the SEC. The stock repurchase program is intended to expire in three years but may be terminated or amended by the Board of Directors at any time. The stock repurchase program does not obligate the Company to purchase any shares at any time. There have been no stock repurchases during the nine months ended September 30, 2023 or 2022. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 — Commitments and Contingencies Credit-Related Commitments In the ordinary course of business, the Company enters into financial instruments, such as commitments to extend credit and letters of credit, to meet the financing needs of its customers. Such instruments are not reflected in the accompanying consolidated financial statements until they are funded, although they expose the Company to varying degrees of credit risk and interest rate risk in much the same way as funded loans. Commitments to extend credit include revolving commercial credit lines, non-revolving loan commitments issued mainly to finance the merger and development or construction of real property or equipment, and credit card and personal credit lines. The availability of funds under commercial credit lines and loan commitments generally depends on whether the borrower continues to meet credit standards established in the underlying contract and has not violated other contractual conditions. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower. Credit card and personal credit lines are generally subject to cancellation if the borrower’s credit quality deteriorates. A number of commercial and personal credit lines are used only partially or, in some cases, not at all before they expire, and the total commitment amounts do not necessarily represent future cash requirements of the Company. A substantial majority of the letters of credit are standby agreements that obligate the Company to fulfill a customer’s financial commitments to a third party if the customer is unable to perform. The Company issues standby letters of credit primarily to provide credit enhancement to its customers’ other commercial or public financing arrangements and to help them demonstrate financial capacity to vendors of essential goods and services. The contract amounts of these instruments reflect the Company’s exposure to credit risk. The Company undertakes the same credit evaluation in making loan commitments and assuming conditional obligations as it does for on-balance sheet instruments and may require collateral or other credit support. The table below presents the Company’s commitments to extend credit by commitment expiration date for the dates indicated: (Dollars in thousands) September 30, 2023 Less than One-Three Three-Five Greater than Total Commitments to extend credit (1) $ 921,782 $ 961,365 $ 447,769 $ 101,953 $ 2,432,869 Standby letters of credit 102,449 6,958 32,957 — 142,364 Total off-balance sheet commitments $ 1,024,231 $ 968,323 $ 480,726 $ 101,953 $ 2,575,233 December 31, 2022 Commitments to extend credit (1) $ 1,093,744 $ 988,212 $ 553,069 $ 96,783 $ 2,731,808 Standby letters of credit 86,922 2,264 — — 89,186 Total off-balance sheet commitments $ 1,180,666 $ 990,476 $ 553,069 $ 96,783 $ 2,820,994 ____________________________ (1) Includes $723.3 million and $594.6 million of unconditionally cancellable commitments at September 30, 2023, and December 31, 2022, respectively. At September 30, 2023, the Company held 29 unfunded letters of credit from the FHLB totaling $584.1 million, with expiration dates ranging from October 2, 2023, to September 22, 2027. At December 31, 2022, the Company held 28 unfunded letters of credit from the FHLB totaling $277.4 million, with expiration dates ranging from January 14, 2023, to September 22, 2027. The Company has a total contingent liability of $1.8 million as of September 30, 2023, for retention bonuses and guaranteed minimum incentives associated with the BTH merger. The retention bonuses for former BTH employees total $846,000, with $423,000, or 50%, due at December 31, 2023, and the remaining $423,000, or 50%, due at December 31, 2024. The guaranteed minimum incentives for former BTH employees total $950,000, with approximately 50% due at February 28, 2024, and the remaining 50% due at February 28, 2025. In all cases, continued employment through the payout date is required in order to receive the compensation. In conjunction with the December 31, 2021, acquisitions of the Lincoln Agency, LLC and Pulley-White Insurance Agency, Inc., the Company has a total estimated fair value contingent liability of $1.5 million as of September 30, 2023. The Company expects 30% of the estimated fair value contingent liability will be payable on or about December 31, 2023, with the remaining 70% payable on or about December 31, 2024, if Davison Insurance Agency, LLC, the acquirer and surviving wholly-owned subsidiary of the Company, meets certain revenue growth objectives over three years. The fair value and probability of payout of this liability is reassessed annually at the fiscal year end of the Company. Management establishes an asset-specific allowance for certain lending-related commitments and computes a formula-based allowance for performing consumer and commercial lending-related commitments. These are computed using a methodology similar to that used for the commercial loan portfolio, modified for expected maturities and probabilities of drawdown. The reserve for lending-related commitments was $4.7 million and $4.6 million at September 30, 2023, and December 31, 2022, respectively, and is included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. Loss Contingencies From time to time, the Company is also party to various legal actions arising in the ordinary course of business. At this time, management does not expect that loss contingencies, if any, arising from any such proceedings, either individually or in the aggregate, would have a material adverse effect on the consolidated financial position or liquidity of the Company. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Note 13 — Business Combinations BT Holdings, Inc. On August 1, 2022, the Company completed its merger with BT Holdings, Inc. (“BTH”), a Texas corporation and the registered bank holding company of BTH Bank, acquiring 100% of the voting equity interests of BTH. The Company issued 6,794,910 shares of its common stock, and all outstanding BTH common stock options were converted into options to purchase an aggregate of 611,676 shares of Origin common stock. Based on the closing price of the Company’s common stock on July 29, 2022, of $43.07 per share, the aggregate consideration to be paid to holders of BTH common stock in connection with the merger is valued at approximately $307.8 million. Goodwill of $94.5 million was recorded as a result of the transaction. The merger added new markets for expansion and brings complementary businesses together to drive synergies and growth, which are the factors that gave rise to the goodwill recorded. The goodwill will not be deductible for tax purposes. Including the effects of the known purchase accounting adjustments, as of the merger date, Origin had approximately $9.84 billion in assets, $6.77 billion in loans and $7.99 billion in deposits on a consolidated basis. Origin Bank and BTH Bank, N.A. operated as separate banking subsidiaries of the Company until the merger of the banks, which Origin completed on October 7, 2022, concurrently with the data processing conversion. BTH formerly operated its banking business from 13 locations in East Texas, Dallas and Fort Worth, Texas, each of which now operates as a banking location of Origin Bank. The Company has determined that the merger of the net assets of BTH constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. The Company has finalized its analysis of the loans acquired along with the other acquired assets and assumed liabilities related to the merger with BT Holdings, Inc. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the merger date: BT Holdings, Inc. (Dollars in thousands) As Recorded by Origin Assets Acquired: Cash and cash equivalents $ 69,953 Investment securities 456,808 Loans acquired 1,239,532 Allowance for credit losses on loans (5,527) Loans receivable, net 1,234,005 Premises and equipment 17,825 Non-marketable equity securities held in other financial institutions 5,873 Core deposit intangible 38,356 Other assets 23,778 Total assets acquired $ 1,846,598 Liabilities Assumed: Noninterest-bearing deposits $ 398,089 Interest-bearing deposits 865,864 Time deposits 302,506 Total deposits 1,566,459 Securities sold under agreements to repurchase 10,133 Subordinated indebtedness, net 44,074 Accrued expenses and other liabilities 12,674 Total liabilities assumed 1,633,340 Net assets acquired 213,258 Purchase price 307,784 Goodwill $ 94,526 The Company’s operating results include the operating results of the acquired assets and assumed liabilities of BTH subsequent to the merger date. Acquisition Accounting. The following is a description of the methods used to determine the fair values of significant assets and liabilities acquired as part of a merger or acquisition. The Company elected to use the pushdown accounting method to record the merger. Loans acquired – Fair values for PCD loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates except when a fair value of collateral approach was applied. The discount rates used for PCD loans were based on current market rates and include adjustments for liquidity concerns. The discount rate does not include a factor for credit losses, as that has been included in the estimated cash flows. Non-PCD loans were grouped together according to similar characteristics and were treated in the aggregate when applying valuation techniques. See Note 4 — Loans in these condensed notes to the consolidated financial statements for more information related to loans acquired. Loan Acquisition Accounting – The Company accounts for its acquisitions/mergers under ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. The fair value for acquired loans at the time of acquisition or merger is based on a variety of factors, including discounted expected cash flows, adjusted for estimated prepayments and credit losses. In accordance with ASC 326, the fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. Loans that have been identified as having experienced a more-than-insignificant deterioration in credit quality since origination are PCD loans. The net premium or discount on PCD loans is adjusted by the Company’s allowance for credit losses recorded at the time of merger/acquisition. The remaining net premium or discount is accreted or amortized into interest income over the remaining life of the loan using the effective interest rate method. The net premium or discount on loans that are not classified as PCD (“non-PCD”), that includes credit and non-credit components, is accreted or amortized into interest income over the remaining life of the loan using a constant yield method. The Company then records the necessary allowance for credit losses on the non-PCD loans through provision for credit losses expense. Purchased loans that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans, the initial estimate of expected credit losses is recognized in the allowance for credit loss on the date of the merger using the same methodology as other loans held for investment as discussed in Note 4 — Loans in these condensed notes to the consolidated financial statements. The following table provides a summary of loans purchased with credit deterioration at the merger transaction date with BTH: August 1, 2022 (Dollars in thousands) Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total Unpaid principal balance $ 10,731 $ 1,315 $ 2,880 $ 37,117 $ — $ 169 $ 52,212 PCD allowance for credit loss at merger 1 — — 5,525 — 1 5,527 Non-credit related (premium)/discount (277) (92) 3 (77) — 1 (442) Fair value of PCD loans $ 11,007 $ 1,407 $ 2,877 $ 31,669 $ — $ 167 $ 47,127 Revenue and earnings of BTH since the acquisition date have not been disclosed as the acquired company was merged into the Company and separate financial information is not readily available. The following table presents unaudited pro-forma information as if the merger with BTH had occurred on January 1, 2022. This pro-forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit intangible and related income tax effects and is based on our historical results for the periods presented. Transaction-related costs related to the merger are not reflected in the pro-forma amounts. The pro-forma information does not necessarily reflect the results of operations that would have occurred had the Company acquired BTH at the beginning of fiscal year 2021. Cost savings are also not reflected in the unaudited pro-forma amounts. (Dollars in thousands except share and per share data) Pro-Forma for the Nine Months Ended September 30, 2022 Net interest income $ 243,932 Noninterest income 49,425 Net income 76,286 Pro-forma earnings per share: Basic $ 2.50 Diluted 2.48 Weighted average shares outstanding 32,092,071 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 24,313 | $ 21,760 | $ 24,302 | $ 16,243 | $ 21,311 | $ 20,683 | $ 70,375 | $ 58,237 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
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 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . The consolidated financial statements in this quarterly report on Form 10-Q include the accounts of the Company and all other entities in which Origin Bancorp, Inc. has a controlling financial interest, including the Bank and Davison Insurance Agency, LLC, doing business as Lincoln Agency, LLC, Lincoln Agency Transportation Insurance, Pulley-White Insurance Agency, Reeves, Coon and Funderburg, Simoneaux & Wallace Agency and Thomas & Farr Agency. All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s accounting and financial reporting policies conform, in all material respects, to generally accepted accounting principles in the United States (“U.S. GAAP”) and to general practices within the financial services industry. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated financial statements in this quarterly report on Form 10-Q have not been audited by an independent registered public accounting firm, excluding the figures as of December 31, 2022, but in the opinion of management, reflect all adjustments (which are of a normal recurring nature) necessary for a fair presentation of the Company’s financial position and results of operations for the periods presented. These consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2022, included in the Company’s annual report on Form 10-K (“2022 Form 10-K”) filed with the SEC. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year. Certain prior period amounts have been reclassified to conform to the current year financial statement presentations. These reclassifications did not impact previously reported net income or comprehensive income (loss). |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information that affect the amounts reported in the financial statements and disclosures provided, including the accompanying notes, and actual results could differ. Material estimates that are particularly susceptible to change include the allowance for credit losses for loans, off-balance sheet commitments and available for sale securities; fair value measurements of assets and liabilities; and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the Company’s consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual results could differ from those estimates. |
Allowance for Credit Losses | Allowance for Credit Losses . Accounting Standards Update (“ASU”) No. 2022-02 eliminated the accounting guidance for troubled debt restructurings (“TDRs”) and enhanced disclosure requirements for certain loan modifications. The Company may provide modifications to borrowers experiencing financial difficulty in the form of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, or term extensions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company may provide multiple types of concessions on one loan. The Company will evaluate whether the modification represents a new loan or a continuation of an existing loan. The Company assesses all loan modifications to determine whether they were made to borrowers experiencing financial difficulty. |
Reclassifications | Reclassifications . Certain amounts previously reported have been reclassified to conform to the current presentation. Such reclassifications had no effect on prior year net income or stockholders’ equity. |
Effect of Recently Adopted Accounting Standards and Effect of Newly Issued But Not Yet Effective Accounting Standards | Effect of Recently Adopted Accounting Standards ASU No. 2021-06, Presentation of Financial Statements (Topic 205), Financial Services —Depository and Lending (Topic 942), and Financial Services — Investment Companies (Topic 946) —Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants amends the Accounting Standards Codification (“ASC”) in order to codify to the new SEC releases 33-10786 and 33-10835 (the “Releases”). The Releases clearly define whether an acquired or disposed business subsidiary is significant; update, expand and eliminate certain disclosures; eliminate overlap with certain SEC and U.S. GAAP rules; and add a new subpart of Regulation S-K. The ASU is effective upon issuance; however, the SEC release on which the ASU is based is effective for registrants with the first fiscal year ending after December 15, 2021, while Guide 3 was rescinded effective January 1, 2023. Implementation of this ASU did not materially impact the Company’s financial statement disclosures. ASU No. 2021-08, Business Combinations (Topic 805) — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this Update affect accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Implementation of this ASU did not materially impact the Company’s financial statements or disclosures. ASU No. 2022-01, Derivatives and Hedging (Topic 815) — Fair Value Hedging - Portfolio Layer Method. The amendments in this Update clarify the accounting for and promote consistency in the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers. Additionally, this Update allows entities to elect to apply the portfolio layer method of hedge accounting in accordance with Topic 815. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Implementation of this ASU did not materially impact the Company’s financial statements or disclosures. ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326) — Troubled Debt Restructurings and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. For public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Implementation of this ASU did not materially impact the Company’s financial statements or disclosures. ASU No. 2022-06, Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848 — The amendments in this Update provide temporary relief during the transition period in complying with Update No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022 - 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. Because the relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective immediately. Implementation of this ASU did not materially impact the Company's financial statements or disclosures. Effect of Newly Issued But Not Yet Effective Accounting Standards ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method — The amendments in this Update allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. The amendments in this Update also eliminate certain low income housing tax credits (“LIHTC”)-specific guidance to align the accounting more closely for LIHTCs with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance apply only to tax equity investments accounted for using the proportional amortization method. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Implementation of this ASU is not expected to materially impact the Company's financial statements or disclosures. |
Fair Value of Financial Instruments | Fair value is the exchange price that is expected to 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. Certain assets and liabilities are recorded in the Company’s consolidated financial statements at fair value. Some are recorded on a recurring basis and some on a non-recurring basis. The Company utilizes fair value measurement to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach to estimate the fair values of its financial instruments. Such valuation techniques are consistently applied. A hierarchy for fair value has been established, which categorizes the valuation techniques into three levels used to measure fair value. The three levels are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Fair value is based on significant other observable inputs that are generally determined based on a single price for each financial instrument provided to the Company by an unrelated third-party pricing service and is based on one or more of the following: • Quoted prices for similar, but not identical, assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in markets that are not active; • Inputs other than quoted prices that are observable, such as interest rate and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and • Other inputs derived from or corroborated by observable market inputs. Level 3 - Prices or valuation techniques that require inputs that are both significant and unobservable in the market. These instruments are valued using the best information available, some of which is internally developed, and reflects the Company’s own assumptions about the risk premiums that market participants would generally require and the assumptions they would use. These estimates can be inherently uncertain. Securities Available for Sale Securities classified as available for sale are reported at fair value utilizing Level 1, Level 2 or Level 3 inputs. For Level 1 securities, the Company obtains the fair value measurements for those identical assets from an independent pricing service. For Level 2 securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, market consensus prepayment speeds, credit information and the security's terms and conditions, among other things. In order to ensure the fair values are consistent with ASC 820, Fair Value Measurements and Disclosures , the Company periodically checks the fair value by comparing them to other pricing sources, such as Bloomberg LP. The third-party pricing service is subject to an annual review of internal controls in accordance with the Statement on Standards for Attestation Engagements No. 16, which was made available to the Company. In certain cases where Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For level 3 securities, the Company determines the fair value of the instruments based on their callability, putability and prepay optionality. Putable instruments are valued at book value, non-putable instruments are priced mainly using a present value calculation based on the spread to the yield curve. Mortgage Servicing Rights (“MSRs”) Derivatives Fair values for interest rate swap agreements and interest rate lock commitments are based upon the amounts that would be required to settle the contracts. Fair values for risk participations, forward mortgage backed security purchases or loan sale commitments and future contracts to purchase United States treasury notes are based on the fair values of the underlying mortgage loans or securities and the probability of such commitments being exercised. Significant management judgment and estimation is required in determining these fair value measurements. Certain assets are measured at fair value on a recurring basis due to the Company’s election to adopt fair value accounting treatment for those assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC Topic 815, Derivatives and Hedging. The following methodologies were used to measure the fair value of financial assets valued on a recurring basis for which the fair value option was elected: Securities at Fair Value through Income Securities carried at fair value through income are valued using a discounted cash flow with a credit spread applied to each instrument based on the creditworthiness of each issuer. Credit spreads ranged from 83 to 227 basis points at both September 30, 2023, and December 31, 2022. The Company believes the fair value approximates an exit price. Loans Held for Sale Fair values for loans held for sale are established using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans allocated. The Company believes the fair value approximates an exit price. Fair Value of Assets Recorded on a Nonrecurring Basis Equity Securities without Readily Determinable Fair Values Equity securities without readily determinable fair values totaled $63.8 million and $67.4 million at September 30, 2023, and December 31, 2022, respectively, and are shown on the face of the consolidated balance sheets. The majority of the Company’s equity investments qualify for the practical expedient allowed for equity securities without a readily determinable fair value, such that the Company has elected to carry these securities at cost adjusted for any observable transactions during the period, less any impairment. To date, no impairment has been recorded on the Company's investments in equity securities that do not have readily determinable fair values. During the three months ended September 30, 2023, the Company observed a price change in multiple orderly transactions for identical equity securities and adjusted the Company’s basis upwards in one of the Company’s equity securities by $10.1 million. Government National Mortgage Association Repurchase Asset The Company had zero and $24.6 million Government National Mortgage Association (“GNMA”) repurchase assets included in loans held for sale on the consolidated balance sheets at September 30, 2023, and December 31, 2022, respectively. The assets were valued at the lower of cost or market and, where market is lower than cost, valued using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans. During the second half of 2022, the Company entered into an agreement to sell its GNMA MSR portfolio, which met all final sale conditions in early 2023. The Company sold $1.8 million in GNMA MSR, with no significant additional gain or loss realized, and derecognized the related GNMA repurchase asset and offsetting liability during the quarter ended March 31, 2023. Individually Evaluated Loans with Credit Losses Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists. Allowable methods for determining the amount of credit loss include estimating the fair value using the fair value of the collateral for collateral-dependent loans and a discounted cash flow methodology for other evaluated loans that are not collateral dependent. If the loan is identified as collateral-dependent, the fair value method of measuring the amount of credit loss is utilized. Evaluating the fair value of the collateral for collateral-dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the loan is not collateral-dependent, the discounted cash flow method is utilized, which involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate. Loans that have experienced a credit loss with specific allocated losses are within Level 3 of the fair value hierarchy when the credit loss is determined using the fair value method. The fair value of loans that have experienced a credit loss with specific allocated losses was approximately $15.9 million and $20.7 million at September 30, 2023, and December 31, 2022, respectively. Non-Financial Assets |
Derivative Financial Instruments | Risk Management Objective of Using Derivatives The Company enters into derivative financial instruments to manage risks related to differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments, as well as to manage changes in fair values of some assets which are marked at fair value through the consolidated statement of income on a recurring basis. Cash Flow Hedges of Interest Rate Risk The Company is a party to interest rate swap agreements under which the Company receives interest at a variable rate and pays at a fixed rate. The derivative instruments represented by these swap agreements are designated as cash flow hedges of the Company’s forecasted variable cash flows under a variable-rate term borrowing agreements. During the terms of the swap agreements, the effective portion of changes in the fair value of the derivative instruments are recorded in accumulated other comprehensive (loss) income and subsequently reclassified into earnings in the periods that the hedged forecasted variable-rate interest payments affected earnings. There was no ineffective portion of the change in fair value of the derivatives recognized directly in earnings. The entire swap fair value will be reclassified into earnings before the expiration dates of the swap agreements. Derivatives Not Designated as Hedges Customer interest rate derivative program The Company offers certain derivatives products, primarily interest rate swaps, directly to qualified commercial banking customers to facilitate their risk management strategies. In most instances, the Company acts only as an intermediary, simultaneously entering into offsetting agreements with unrelated financial institutions, thereby mitigating its net risk exposure resulting from such transactions without significantly impacting its results of operations. Because the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivatives and any offsetting derivatives are recognized directly in earnings as a component of noninterest income. From time to time, the Company shares in credit risk on interest rate swap arrangements, by entering into risk participation agreements with syndication partners. These are accounted for at fair value and disclosed as risk participation derivatives. Mortgage banking derivatives The Company enters into certain derivative agreements as part of its mortgage banking and related risk management activities. These agreements include interest rate lock commitments on prospective residential mortgage loans and forward commitments to sell these loans to investors on a mandatory delivery basis. The Company also economically hedges the value of MSRs by entering into a series of commitments to purchase mortgage-backed securities in the future and U.S. Treasury future contracts. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Information regarding the Company’s basic and diluted earnings per common share is presented in the following table: (Dollars in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, Numerator: 2023 2022 2023 2022 Net income $ 24,313 $ 16,243 $ 70,375 $ 58,237 Denominator: Weighted average common shares outstanding 30,856,649 28,298,984 30,797,399 25,263,681 Dilutive effect of stock-based awards 87,211 182,635 105,823 103,126 Weighted average diluted common shares outstanding 30,943,860 28,481,619 30,903,222 25,366,807 Basic earnings per common share $ 0.79 $ 0.57 $ 2.29 $ 2.31 Diluted earnings per common share 0.79 0.57 2.28 2.30 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Securities | The following table is a summary of the amortized cost and estimated fair value, including the allowance for credit losses and gross unrealized gains and losses, of available for sale, held to maturity and securities carried at fair value through income for the dates indicated: (Dollars in thousands) September 30, 2023 Amortized Gross Gross Fair Allowance for Credit Losses Net Carrying Amount Available for sale: State and municipal securities $ 382,677 $ 148 $ (66,474) $ 316,351 $ — $ 316,351 Corporate bonds 84,221 — (9,931) 74,290 — 74,290 U.S. government and agency securities 111,812 3 (9,024) 102,791 — 102,791 Commercial mortgage-backed securities 104,745 — (14,725) 90,020 — 90,020 Residential mortgage-backed securities 588,373 — (87,625) 500,748 — 500,748 Commercial collateralized mortgage obligations 39,672 — (5,723) 33,949 — 33,949 Residential collateralized mortgage obligations 154,301 — (25,868) 128,433 — 128,433 Asset-backed securities 44,855 1 (599) 44,257 — 44,257 Total $ 1,510,656 $ 152 $ (219,969) $ 1,290,839 $ — $ 1,290,839 Held to maturity: State and municipal securities $ 11,680 $ — $ (675) $ 11,005 $ (890) $ 10,790 Securities carried at fair value through income: State and municipal securities (1) $ 6,815 $ — $ — $ 6,772 $ — $ 6,772 December 31, 2022 Available for sale: State and municipal securities $ 447,086 $ 996 $ (58,605) $ 389,477 $ — $ 389,477 Corporate bonds 89,449 — (7,191) 82,258 — 82,258 U.S. government and agency securities 264,755 4 (16,339) 248,420 — 248,420 Commercial mortgage-backed securities 105,536 — (13,593) 91,943 — 91,943 Residential mortgage-backed securities 649,765 — (77,462) 572,303 — 572,303 Commercial collateralized mortgage obligations 44,330 — (5,517) 38,813 — 38,813 Residential collateralized mortgage obligations 170,136 — (23,766) 146,370 — 146,370 Asset-backed securities 73,918 — (2,018) 71,900 — 71,900 Total $ 1,844,975 $ 1,000 $ (204,491) $ 1,641,484 $ — $ 1,641,484 Held to maturity: State and municipal securities $ 12,174 $ 278 $ (482) $ 11,970 $ (899) $ 11,275 Securities carried at fair value through income: State and municipal securities (1) $ 7,100 $ — $ — $ 6,368 $ — $ 6,368 ________________________ (1) Securities carried at fair value through income have no unrealized gains or losses at the consolidated balance sheet dates as all changes in value have been recognized in the consolidated statements of income. See Note 5 — Fair Value of Financial Instruments for more information. |
Schedule of Unrealized Losses | Securities with unrealized losses at September 30, 2023, and December 31, 2022, aggregated by investment category and those individual securities that have been in a continuous unrealized loss position for less than 12 months, and for 12 months or more, were as follows. Less than 12 Months 12 Months or More Total (Dollars in thousands) September 30, 2023 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for sale: State and municipal securities $ 8,335 $ (493) $ 281,606 $ (65,981) $ 289,941 $ (66,474) Corporate bonds 5,624 (376) 67,667 (9,555) 73,291 (9,931) U.S. government and agency securities — — 102,465 (9,024) 102,465 (9,024) Commercial mortgage-backed securities — — 90,020 (14,725) 90,020 (14,725) Residential mortgage-backed securities 59 (8) 500,689 (87,617) 500,748 (87,625) Commercial collateralized mortgage obligations — — 33,949 (5,723) 33,949 (5,723) Residential collateralized mortgage obligations — — 128,433 (25,868) 128,433 (25,868) Asset-backed securities 5,222 (34) 36,626 (565) 41,848 (599) Total $ 19,240 $ (911) $ 1,241,455 $ (219,058) $ 1,260,695 $ (219,969) Held to maturity: State and municipal securities $ 5,105 $ (62) $ 5,900 $ (613) $ 11,005 $ (675) December 31, 2022 Available for sale: State and municipal securities $ 171,079 $ (14,947) $ 175,011 $ (43,658) $ 346,090 $ (58,605) Corporate bonds 69,618 (5,581) 11,640 (1,610) 81,258 (7,191) U.S. government and agency securities 152,471 (7,373) 95,576 (8,966) 248,047 (16,339) Commercial mortgage-backed securities 37,083 (3,416) 54,860 (10,177) 91,943 (13,593) Residential mortgage-backed securities 231,848 (20,465) 340,455 (56,997) 572,303 (77,462) Commercial collateralized mortgage obligations 21,999 (2,516) 16,814 (3,001) 38,813 (5,517) Residential collateralized mortgage obligations 48,749 (3,928) 97,621 (19,838) 146,370 (23,766) Asset-backed securities 62,047 (1,528) 9,853 (490) 71,900 (2,018) Total $ 794,894 $ (59,754) $ 801,830 $ (144,737) $ 1,596,724 $ (204,491) Held to maturity: State and municipal securities $ 6,518 $ (482) $ — $ — $ 6,518 $ (482) |
Schedule of Allowance for Credit Losses for Held-to-Maturity Securities | The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities. (Dollars in thousands) Municipal Securities Allowance for credit losses: 2023 Balance at January 1, 2023 $ 899 Credit loss expense (9) Balance at September 30, 2023 $ 890 Balance at January 1, 2022 $ 167 Credit loss expense 725 Balance at September 30, 2022 $ 892 |
Proceeds from Sales of Securities Available for Sale and Gross Gains | Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below. Nine Months Ended September 30, (Dollars in thousands) 2023 2022 Proceeds from sales/calls $ 214,302 $ 484,421 Gross realized gains 596 3,766 Gross realized losses (7,625) (2,102) |
Securities Classified by Contractual Maturity | The following table presents the amortized cost and fair value of securities available for sale and held to maturity at September 30, 2023, grouped by contractual maturity. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities will differ from contractual maturities as a result of prepayments made on the underlying loans. (Dollars in thousands) Held to Maturity Available for Sale September 30, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ — $ — $ 64,008 $ 63,004 Due after one year through five years — — 96,426 87,840 Due after five years through ten years 5,167 5,105 197,466 169,927 Due after ten years 6,513 5,900 220,810 172,661 Commercial mortgage-backed securities — — 104,745 90,020 Residential mortgage-backed securities — — 588,373 500,748 Commercial collateralized mortgage obligations — — 39,672 33,949 Residential collateralized mortgage obligations — — 154,301 128,433 Asset-backed securities — — 44,855 44,257 Total $ 11,680 $ 11,005 $ 1,510,656 $ 1,290,839 |
Securities Pledged as Collateral | The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements at the periods presented. (Dollars in thousands) September 30, 2023 December 31, 2022 Carrying value of securities pledged to secure public deposits $ 412,829 $ 769,691 Carrying value of securities pledged to repurchase agreements 5,530 6,797 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consist of the following: (Dollars in thousands) September 30, 2023 December 31, 2022 Loans held for sale $ 14,944 $ 49,957 LHFI: Loans secured by real estate: Owner occupied commercial real estate $ 932,109 $ 843,006 Non-owner occupied commercial real estate 1,503,782 1,461,672 Total commercial real estate 2,435,891 2,304,678 Construction/land/land development 1,076,756 945,625 Residential real estate 1,688,169 1,477,538 Total real estate 5,200,816 4,727,841 Commercial and industrial 2,058,073 2,051,161 Mortgage warehouse lines of credit 286,293 284,867 Consumer 22,881 26,153 Total LHFI (1) 7,568,063 7,090,022 Less: Allowance for loan credit losses (“ALCL”) 95,177 87,161 LHFI, net $ 7,472,886 $ 7,002,861 ____________________________ (1) Includes unamortized purchase accounting adjustment and net deferred loan fees of $11.5 million and $14.2 million at September 30, 2023, and December 31, 2022, respectively. As of September 30, 2023, and December 31, 2022, the remaining purchase accounting net loan discount was $179,000 and $2.2 million, respectively. |
Recorded Investment in Loans by Credit Quality Indicator | The following table reflects recorded investments in loans by credit quality indicator and origination year at September 30, 2023, and gross charge-offs for the nine months ended September 30, 2023, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at September 30, 2023. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: Pass $ 269,854 $ 888,014 $ 485,198 $ 257,683 $ 223,348 $ 209,716 $ 76,329 $ 2,410,142 Special mention — — — — — 7,996 — 7,996 Classified 745 1,916 3,239 1,595 587 9,671 — 17,753 Total commercial real estate loans $ 270,599 $ 889,930 $ 488,437 $ 259,278 $ 223,935 $ 227,383 $ 76,329 $ 2,435,891 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 42 $ — $ 42 Construction/land/land development: Pass $ 203,868 $ 492,097 $ 235,360 $ 30,838 $ 17,281 $ 25,621 $ 35,821 $ 1,040,886 Special mention — 10,718 20,932 — — — — 31,650 Classified 1 180 54 245 667 754 2,319 4,220 Total construction/land/land development loans $ 203,869 $ 502,995 $ 256,346 $ 31,083 $ 17,948 $ 26,375 $ 38,140 $ 1,076,756 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 279,903 $ 517,755 $ 305,358 $ 242,179 $ 99,778 $ 149,748 $ 83,182 $ 1,677,903 Special mention 250 — — 145 — 309 — 704 Classified 342 1,988 1,471 420 1,378 3,853 110 9,562 Total residential real estate loans $ 280,495 $ 519,743 $ 306,829 $ 242,744 $ 101,156 $ 153,910 $ 83,292 $ 1,688,169 Current period year-to-date gross charge-offs $ — $ — $ — $ 5 $ — $ 22 $ — $ 27 Commercial and industrial: Pass $ 252,933 $ 328,833 $ 183,124 $ 40,747 $ 61,655 $ 53,379 $ 1,091,475 $ 2,012,146 Special mention 524 9,918 — 96 — — 3,026 13,564 Classified 2,492 1,488 8,724 313 1,005 430 17,911 32,363 Total commercial and industrial loans $ 255,949 $ 340,239 $ 191,848 $ 41,156 $ 62,660 $ 53,809 $ 1,112,412 $ 2,058,073 Current period year-to-date gross charge-offs $ 111 $ 263 $ 40 $ 141 $ — $ 411 $ 7,104 $ 8,070 Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 286,293 $ 286,293 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 8,423 $ 4,473 $ 1,659 $ 510 $ 522 $ 58 $ 7,113 $ 22,758 Classified 20 72 27 — 3 — 1 123 Total consumer loans $ 8,443 $ 4,545 $ 1,686 $ 510 $ 525 $ 58 $ 7,114 $ 22,881 Current period year-to-date gross charge-offs $ — $ 90 $ 7 $ — $ — $ — $ 10 $ 107 The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2022, and gross charge-offs for the year ended December 31, 2022, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2022. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: Pass $ 885,244 $ 502,287 $ 283,368 $ 230,040 $ 168,079 $ 131,411 $ 69,952 $ 2,270,381 Special mention — — — — 8,174 1,359 1,558 11,091 Classified 930 1,795 1,551 4,014 2,965 11,901 50 23,206 Total commercial real estate loans $ 886,174 $ 504,082 $ 284,919 $ 234,054 $ 179,218 $ 144,671 $ 71,560 $ 2,304,678 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 166 $ — $ 166 Construction/land/land development: Pass $ 445,943 $ 320,951 $ 58,880 $ 27,381 $ 27,753 $ 5,253 $ 48,436 $ 934,597 Special mention 6,217 — — — — — — 6,217 Classified 180 100 286 38 160 1,708 2,339 4,811 Total construction/land/land development loans $ 452,340 $ 321,051 $ 59,166 $ 27,419 $ 27,913 $ 6,961 $ 50,775 $ 945,625 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 535,739 $ 308,070 $ 261,293 $ 107,530 $ 48,652 $ 123,052 $ 80,375 $ 1,464,711 Special mention — — 390 — — — — 390 Classified 2,227 2,764 90 1,494 1,064 4,653 145 12,437 Total residential real estate loans $ 537,966 $ 310,834 $ 261,773 $ 109,024 $ 49,716 $ 127,705 $ 80,520 $ 1,477,538 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 91 $ — $ 91 Commercial and industrial: Pass $ 454,813 $ 239,411 $ 82,168 $ 75,043 $ 40,534 $ 29,745 $ 1,083,221 $ 2,004,935 Special mention 8,683 2,563 — — 187 — 1,620 13,053 Classified 3,641 11,455 188 1,978 1,224 3 14,684 33,173 Total commercial and industrial loans $ 467,137 $ 253,429 $ 82,356 $ 77,021 $ 41,945 $ 29,748 $ 1,099,525 $ 2,051,161 Current period year-to-date gross charge-offs $ 28 $ 726 $ 48 $ 869 $ 337 $ 1,103 $ 5,348 $ 8,459 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 282,298 $ 282,298 Special mention — — — — — — 2,042 2,042 Classified — — — — — — 527 527 Total mortgage warehouse lines of credit $ — $ — $ — $ — $ — $ — $ 284,867 $ 284,867 Current period year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 9,730 $ 3,822 $ 1,210 $ 784 $ 135 $ 15 $ 10,408 $ 26,104 Classified 22 19 — 6 — — 2 49 Total consumer loans $ 9,752 $ 3,841 $ 1,210 $ 790 $ 135 $ 15 $ 10,410 $ 26,153 Current period year-to-date gross charge-offs $ 3 $ 27 $ 7 $ 2 $ 1 $ 1 $ 2 $ 43 |
Loan Portfolio Aging Analysis | The following tables present the Company’s loan portfolio aging analysis at the dates indicated: September 30, 2023 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ — $ — $ 136 $ 136 $ 2,435,755 $ 2,435,891 $ — Construction/land/land development 1,085 23 55 1,163 1,075,593 1,076,756 — Residential real estate 261 3,076 4,425 7,762 1,680,407 1,688,169 — Total real estate 1,346 3,099 4,616 9,061 5,191,755 5,200,816 — Commercial and industrial 918 6,746 3,509 11,173 2,046,900 2,058,073 — Mortgage warehouse lines of credit — — — — 286,293 286,293 — Consumer 88 10 15 113 22,768 22,881 — Total LHFI $ 2,352 $ 9,855 $ 8,140 $ 20,347 $ 7,547,716 $ 7,568,063 $ — December 31, 2022 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ 31 $ — $ 104 $ 135 $ 2,304,543 $ 2,304,678 $ — Construction/land/land development 854 — 17 871 944,754 945,625 — Residential real estate 1,814 891 450 3,155 1,474,383 1,477,538 — Total real estate 2,699 891 571 4,161 4,723,680 4,727,841 — Commercial and industrial 3,878 1,972 544 6,394 2,044,767 2,051,161 — Mortgage warehouse lines of credit — — — — 284,867 284,867 — Consumer 350 16 11 377 25,776 26,153 — Total LHFI $ 6,927 $ 2,879 $ 1,126 $ 10,932 $ 7,079,090 $ 7,090,022 $ — |
Allowance for Loan Losses by Portfolio Segment | The following tables detail activity in the ALCL by portfolio segment. Accrued interest of $33.0 million and $21.9 million was not included in the book value for the purposes of calculating the allowance at September 30, 2023 and 2022, respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Three Months Ended September 30, 2023 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 20,839 $ 8,729 $ 9,018 $ 54,173 $ 817 $ 777 $ 94,353 Charge-offs — — — 3,187 — 15 3,202 Recoveries 28 3 3 477 — 5 516 Provision (1) (1,758) 613 1,048 3,990 (359) (24) 3,510 Ending balance $ 19,109 $ 9,345 $ 10,069 $ 55,453 $ 458 $ 743 $ 95,177 Average balance $ 2,428,969 $ 1,044,180 $ 1,663,291 $ 2,024,675 $ 376,275 $ 23,704 $ 7,561,094 Net charge-offs to loan average balance (annualized) — % — % — % 0.53 % — % 0.17 % 0.14 % __________________________ (1) The $3.5 million provision for credit losses on the consolidated statements of income includes a $3.5 million provision for loan credit losses, a $50,000 provision for off-balance sheet commitments and $45,000 net benefit provision for held to maturity securities credit losses for the three months ended September 30, 2023. Three Months Ended September 30, 2022 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 16,112 $ 4,707 $ 5,851 $ 35,477 $ 459 $ 517 $ 63,123 Allowance for loan credit losses - BTH merger (1) 1 — — 5,525 — 1 5,527 Charge-offs — — — 1,618 — 10 1,628 Recoveries 17 200 6 325 — 2 550 Provision (2) 1,901 2,159 1,898 9,349 97 383 15,787 Ending balance $ 18,031 $ 7,066 $ 7,755 $ 49,058 $ 556 $ 893 $ 83,359 Average balance $ 2,046,411 $ 760,682 $ 1,249,746 $ 1,816,912 $ 491,584 $ 24,137 $ 6,389,472 Net charge-offs to loan average balance (annualized) — % (0.10) % — % 0.28 % — % 0.13 % 0.07 % ____________________________ (1) Excluded from the allowance is $10.8 million in PCD loans that were acquired in the merger with BTH that were added to the allowance and immediately written off. (2) The $16.9 million provision for credit losses on the consolidated statements of income includes a $15.8 million provision for loan losses, a $1.2 million provision for off-balance sheet commitments and no provision for held to maturity securities credit losses for the three months ended September 30, 2022. Nine Months Ended September 30, 2023 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 19,772 $ 7,776 $ 8,230 $ 50,148 $ 379 $ 856 $ 87,161 Charge-offs 42 — 27 8,070 — 107 8,246 Recoveries 113 3 13 2,189 — 12 2,330 Provision (1) (734) 1,566 1,853 11,186 79 (18) 13,932 Ending balance $ 19,109 $ 9,345 $ 10,069 $ 55,453 $ 458 $ 743 $ 95,177 Average balance $ 2,393,028 $ 997,296 $ 1,599,803 $ 2,051,272 $ 329,205 $ 24,836 $ 7,395,440 Net charge-offs to loan average balance (annualized) — % — % — % 0.38 % — % 0.51 % 0.11 % _________________________ (1) The $14.0 million provision for credit losses on the consolidated statement of income includes a $13.9 million provision for loan losses, a $95,000 provision for off-balance sheet commitments and a $9,000 net benefit provision for held to maturity securities credit losses for the nine months ended September 30, 2023. Nine Months Ended September 30, 2022 Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total (Dollars in thousands) Beginning balance $ 13,425 $ 4,011 $ 6,116 $ 40,146 $ 340 $ 548 $ 64,586 Allowance for loan credit losses - BTH merger (1) 1 — — 5,525 — 1 5,527 Charge-offs 166 — 75 5,943 — 38 6,222 Recoveries 19 200 98 1,505 — 15 1,837 Provision (2) 4,752 2,855 1,616 7,825 216 367 17,631 Ending balance $ 18,031 $ 7,066 $ 7,755 $ 49,058 $ 556 $ 893 $ 83,359 Average balance $ 1,865,658 $ 638,683 $ 1,042,397 $ 1,548,419 $ 453,658 $ 18,887 $ 5,567,702 Net charge-offs to loan average balance (annualized) 0.01 % (0.04) % — % 0.38 % — % 0.16 % 0.11 % _________________________ (1) Excluded from the allowance is $10.8 million in PCD loans that were acquired in the merger with BTH that were added to the allowance and immediately written off. (2) The $20.1 million provision for credit losses on the consolidated statements of income includes a $17.6 million provision for loan losses, a $1.7 million provision for off-balance sheet commitments and a $725,000 provision for held to maturity securities credit losses for the nine months ended September 30, 2022. |
Financing Receivable Individually Evaluated to Determine Expected Credit Losses and ACL Allocation | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ALCL allocated to these loans. September 30, 2023 (Dollars in thousands) Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total Real Estate $ 752 $ — $ 3,799 $ — $ — $ — $ 4,551 Equipment — — — 152 — — 152 Other — — — 529 — — 529 Total $ 752 $ — $ 3,799 $ 681 $ — $ — $ 5,232 ALCL Allocation $ — $ — $ — $ — $ — $ — $ — December 31, 2022 (Dollars in thousands) Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total Real Estate $ 273 $ 97 $ 6,731 $ — $ — $ — $ 7,101 Accounts Receivable — — — 831 — — 831 Equipment — — — 285 — — 285 Total $ 273 $ 97 $ 6,731 $ 1,116 $ — $ — $ 8,217 ALCL Allocation $ — $ — $ — $ 738 $ — $ — $ 738 |
Non-performing (Nonaccrual) Loans Held for Investment | Nonaccrual LHFI was as follows: Nonaccrual With No Total Nonaccrual (Dollars in thousands) Loans secured by real estate: September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Commercial real estate $ 900 $ 435 $ 942 $ 526 Construction/land/land development — 59 235 270 Residential real estate 5,363 7,023 13,236 7,712 Total real estate 6,263 7,517 14,413 8,508 Commercial and industrial 4,592 527 17,072 1,383 Consumer — — 123 49 Total nonaccrual loans $ 10,855 $ 8,044 $ 31,608 $ 9,940 |
Loans Classified as Troubled Debt Restructurings (TDRs) | The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the dates indicated. Three Months Ended September 30, 2023 Term Extension Combination: Other-Than-Insignificant Payment Delay (Dollars in thousands) Amortized Cost % of Loans Amortized Cost % of Loans Amortized Cost % of Loans Loans secured by real estate: Commercial real estate $ 7,507 0.31 % $ — — % $ 427 0.02 % Construction/land/land development 3,807 0.35 — — — — Residential real estate 745 0.04 — — — — Total real estate 12,059 0.23 — — 427 0.01 Commercial and industrial 13,935 0.68 923 0.04 53 — Total $ 25,994 0.34 $ 923 0.01 $ 480 0.01 Nine Months Ended September 30, 2023 Term Extension Combination: Other-Than-Insignificant Payment Delay (Dollars in thousands) Amortized Cost % of Loans Amortized Cost % of Loans Amortized Cost % of Loans Loans secured by real estate: Commercial real estate $ 7,853 0.32 % $ — — % $ 427 0.02 % Construction/land/land development 3,808 0.35 — — — — Residential real estate 2,477 0.15 — — — — Total real estate 14,138 0.27 — — 427 0.01 Commercial and industrial 15,562 0.76 1,091 0.05 53 — Total $ 29,700 0.39 $ 1,091 0.01 $ 480 0.01 The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty during three and nine months ended September 30, 2023, respectively. Three Months Ended September 30, 2023 Interest Rate Reduction Term Extension Other-Than-Insignificant Payment Delay Commercial real estate N/A Added a weighted average 10.1 months to the life of the modified loans Delayed payment of weighted average 6 months Construction/land/land development N/A Added a weighted average 8.6 months to the life of the modified loans N/A Residential real estate N/A Added a weighted average 18.4 months to the life of the modified loans N/A Commercial and industrial Reduced weighted average contractual interest rate from 10.1% to 9.5% Added a weighted average 6.7 months to the life of the modified loans Delayed payment of weighted average 6 months Nine Months Ended September 30, 2023 Interest Rate Reduction Term Extension Other-Than-Insignificant Payment Delay Commercial real estate N/A Added a weighted average 12.1 months to the life of the modified loans Delayed payment of weighted average 6 months Construction/land/land development N/A Added a weighted average 13.1 months to the life of the modified loans N/A Residential real estate N/A Added a weighted average 9.3 months to the life of the modified loans N/A Commercial and industrial Reduced weighted average contractual interest rate from 9.9% to 9.0% Added a weighted average 9.0 months to the life of the modified loans Delayed payment of weighted average 6 months The following table depicts the performance of loans that have been modified Payment Status (Amortized Cost Basis) September 30, 2023 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due Loans secured by real estate: Commercial real estate $ 8,280 $ — $ — Construction/land/land development 3,808 — — Residential real estate 2,195 282 — Total real estate 14,283 282 — Commercial and industrial 16,705 — — Total LHFI $ 30,988 $ 282 $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Recorded on a Recurring Basis | The following tables summarize financial assets and financial liabilities recorded at fair value on a recurring basis at September 30, 2023, and December 31, 2022, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. There were no changes in the valuation techniques during 2023 or 2022. September 30, 2023 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 264,912 $ 51,439 $ 316,351 Corporate bonds — 73,290 1,000 74,290 U.S. treasury securities 78,963 — — 78,963 U.S. government agency securities — 23,828 — 23,828 Commercial mortgage-backed securities — 90,020 — 90,020 Residential mortgage-backed securities — 500,748 — 500,748 Commercial collateralized mortgage obligations — 33,949 — 33,949 Residential collateralized mortgage obligations — 128,433 — 128,433 Asset-backed securities — 44,257 — 44,257 Securities available for sale 78,963 1,159,437 52,439 1,290,839 Securities carried at fair value through income — — 6,772 6,772 Loans held for sale — 14,944 — 14,944 Mortgage servicing rights — — 19,189 19,189 Other assets - derivatives — 29,493 — 29,493 Total recurring fair value measurements - assets $ 78,963 $ 1,203,874 $ 78,400 $ 1,361,237 Other liabilities - derivatives $ — $ (28,035) $ — $ (28,035) Total recurring fair value measurements - liabilities $ — $ (28,035) $ — $ (28,035) December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 334,708 $ 54,769 $ 389,477 Corporate bonds — 81,258 1,000 82,258 U.S. treasury securities 110,645 — — 110,645 U.S. government agency securities — 137,775 — 137,775 Commercial mortgage-backed securities — 91,943 — 91,943 Residential mortgage-backed securities — 572,303 — 572,303 Commercial collateralized mortgage obligations — 38,813 — 38,813 Residential collateralized mortgage obligations — 146,370 — 146,370 Asset-backed securities — 71,900 — 71,900 Securities available for sale 110,645 1,475,070 55,769 1,641,484 Securities carried at fair value through income — — 6,368 6,368 Loans held for sale — 25,389 — 25,389 Mortgage servicing rights — — 20,824 20,824 Other assets - derivatives — 26,733 — 26,733 Total recurring fair value measurements - assets $ 110,645 $ 1,527,192 $ 82,961 $ 1,720,798 Other liabilities - derivatives $ — $ (25,275) $ — $ (25,275) Total recurring fair value measurements - liabilities $ — $ (25,275) $ — $ (25,275) |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2023 and 2022, are summarized as follows: (Dollars in thousands) MSRs Securities Available for Sale Securities at Fair Value Through Income Balance at January 1, 2023 $ 20,824 $ 55,769 $ 6,368 Gain (loss) recognized in earnings: Mortgage banking revenue (1) (485) — — Other noninterest income — — 689 Loss recognized in AOCI — (703) — Purchases, issuances, sales and settlements: Originations 656 — — Sales (1,806) — — Settlements — (2,627) (285) Balance at September 30, 2023 $ 19,189 $ 52,439 $ 6,772 ___________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. (Dollars in thousands) MSRs Securities Available for Sale Securities at Fair Value Through Income Balance at January 1, 2022 $ 16,220 $ 41,461 $ 7,497 Gain (loss) recognized in earnings: Mortgage banking revenue (1) 2,409 — — Other noninterest income — — (875) Loss recognized in AOCI — (5,048) — Purchases, issuances, sales and settlements: Originations 1,926 — — Purchases — 25,112 — Acquired in BTH merger 1,099 5,000 — Settlements — (3,323) (275) Balance at September 30, 2022 $ 21,654 $ 63,202 $ 6,347 ___________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. |
Significant Assumptions Used to Value Mortgage Servicing Rights | The significant assumptions used to value MSRs were as follows: September 30, 2023 December 31, 2022 Range Weighted Average (1) Range Weighted Average (1) Prepayment speeds 7.31% - 7.89% 7.64 % 7.65% - 9.20% 8.11 % Discount rates 10.25 - 12.75 10.31 9.50 - 22.07 12.55 __________________________ (1) The weighted average was calculated with reference to the principal balance of the underlying mortgages. |
Difference Between Fair Value and the Unpaid Principal Balance for Financial Instruments for which the Fair Value Option has been Elected and Classification in Income Statement | The following tables summarize the difference between the fair value and the unpaid principal balance for financial instruments for which the fair value option has been elected: September 30, 2023 (Dollars in thousands) Aggregate Fair Value Principal Balance/Amortized Cost Difference Loans held for sale (1) $ 14,944 $ 14,715 $ 229 Securities carried at fair value through income 6,772 6,815 (43) Total $ 21,716 $ 21,530 $ 186 ____________________________ (1) There were no loans held for sale that were designated as nonaccrual or 90 days or more past due at September 30, 2023. December 31, 2022 (Dollars in thousands) Aggregate Fair Value Principal Balance/Amortized Cost Difference Loans held for sale (1) $ 25,389 $ 24,946 $ 443 Securities carried at fair value through income 6,368 7,100 (732) Total $ 31,757 $ 32,046 $ (289) ____________________________ (1) $3.9 million of loans held for sale were designated as nonaccrual or 90 days or more past due at December 31, 2022. Of this balance, $3.3 million was guaranteed by U.S. Government agencies. Changes in the fair value of assets for which the Company elected the fair value option are classified in the consolidated statements of income line items reflected in the following table: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Changes in fair value included in noninterest income: 2023 2022 2023 2022 Mortgage banking revenue (loans held for sale) $ (22) $ (309) $ (214) $ (741) Other income: Securities carried at fair value through income 666 (282) 689 (875) Total fair value option impact on noninterest income (1) $ 644 $ (591) $ 475 $ (1,616) ____________________________ (1) The fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 6 — Mortgage Banking for more detail. |
Carrying Value and Estimated Fair Value of Financial Instruments Not Measured at Fair Value | The carrying value and estimated fair values of financial instruments not recorded at fair value are as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Financial assets: Level 1 inputs: Carrying Estimated Carrying Estimated Cash and cash equivalents $ 305,278 $ 305,278 $ 358,972 $ 358,972 Level 2 inputs: Non-marketable equity securities held in other financial institutions 63,842 63,842 67,378 67,378 GNMA repurchase asset — — 24,569 24,569 Accrued interest and loan fees receivable 41,231 41,231 38,136 38,136 Level 3 inputs: Securities held to maturity 10,790 11,005 11,275 11,970 LHFI, net 7,472,886 7,094,772 7,002,861 6,835,770 Financial liabilities: Level 2 inputs: Deposits 8,374,488 8,358,211 7,775,702 7,753,966 FHLB advances and other borrowings 12,213 11,679 639,230 639,103 Subordinated indebtedness 196,825 187,369 201,765 181,624 Accrued interest payable 14,126 14,126 3,917 3,917 |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Operations | The following table presents the Company’s revenue from mortgage banking operations: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Mortgage banking revenue 2023 2022 2023 2022 Origination $ 124 $ 207 $ 384 $ 641 Gain on sale of loans held for sale 757 636 2,380 4,477 Originations of MSRs 225 462 656 1,926 Servicing 915 1,446 2,840 4,306 Total gross mortgage revenue 2,021 2,751 6,260 11,350 MSR valuation adjustments, net (1) (122) (2,034) (485) 2,409 Mortgage HFS and pipeline fair value adjustment (110) (410) (27) (971) MSR hedge impact (897) (1,236) (1,673) (7,267) Mortgage banking revenue $ 892 $ (929) $ 4,075 $ 5,521 ____________________________ (1) Based upon broker estimate, the Company recorded a $2.0 million impairment on the held for sale GNMA MSR portfolio during the quarter ended September 30, 2022. |
Schedule of Activity in Mortgages Servicing Rights (MSRs) | Activity in MSRs was as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 19,086 $ 22,127 $ 20,824 $ 16,220 Servicing acquired in BTH merger — 1,099 — 1,099 Addition of servicing rights 225 462 656 1,926 Settlement of sale of GNMA MSR — — (1,806) — Valuation adjustment, net of amortization (122) (2,034) (485) 2,409 Balance at end of period $ 19,189 $ 21,654 $ 19,189 $ 21,654 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Borrowed Funds | Borrowed funds are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Short-term FHLB advances $ — $ 550,000 Long-term FHLB advances 6,541 6,740 GNMA repurchase liability — 24,569 Overnight repurchase agreements with depositors 5,672 27,921 Correspondent short-term borrowings — 30,000 Total FHLB advances and other borrowings $ 12,213 $ 639,230 Subordinated indebtedness, net $ 196,825 $ 201,765 |
Summary of Terms of Current Debentures | Debt Security Issue Year Interest Rate Outstanding Amount (Dollars in thousands) Floating rate subordinated promissory notes due June 2025 2015 Prime +175 bps Min: 3.875% Max: 6.375% $ 5,500 Floating rate subordinated promissory notes due December 2023 2016 Prime +125 bps Min: 3.875% Max: 6.375% 3,000 Floating rate subordinated promissory notes due December 2026 2016 Prime +175 bps Min: 3.875% Max: 6.375% 6,750 Floating rate subordinated promissory notes due December 2024 2017 Prime +125 bps Min: 3.875% Max: 6.375% 10,850 Floating rate subordinated promissory notes due December 2027 2017 Prime +175 bps Min: 3.875% Max: 6.375% 5,200 Floating rate subordinated promissory notes due December 2025 2018 Prime +50 bps Min: 3.875% Max: 6.125% 3,200 Floating rate subordinated promissory notes due December 2028 2018 Prime +75 bps Min: 3.875% Max: 6.125% 1,900 Fixed to floating rate subordinated promissory notes due June 2031 2021 Through 6/30/26: 4.00% After 6/30/26: Prime +75 bps Min: 3.875% Max: 6.125% 1,000 Remaining unamortized merger-related fair value adjustment at September 30, 2023 (38) Total assumed subordinated notes 37,362 Legacy subordinated indebtedness 143,129 Total subordinated indebtedness, excluding junior subordinated debt $ 180,491 The following table is a summary of the terms of the current junior subordinated debentures at September 30, 2023: (Dollars in thousands) Issuance Trust Issuance Date Maturity Date Amount Outstanding Rate Type Current Rate Maximum Rate CTB Statutory Trust I 07/2001 07/2031 $ 6,702 Variable (1) 8.37 % 12.50 % First Louisiana Statutory Trust I 09/2006 12/2036 4,124 Variable (2) 7.47 16.00 BT Holdings Trust I 05/2007 09/2037 7,217 Variable (3) 7.30 N/A Par amount 18,043 Unamortized original issue discount (1,026) Unamortized purchase accounting discount (683) Total junior subordinated debt at September 30, 2023 $ 16,334 ____________________________ (1) The trust preferred securities reprice quarterly based on the three-month average SOFR plus 3.30%, with the last reprice date on July 27, 2023. (2) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 1.80%, plus 0.26161% SOFR spread adjustment, with the last reprice date on September 13, 2023. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments on the Balance Sheet | The following tables disclose the fair value of derivative instruments in the Company’s consolidated balance sheets at September 30, 2023, and December 31, 2022, as well as the effect of these derivative instruments on the Company’s consolidated statements of income for the nine months ended September 30, 2023 and 2022. Derivative instruments and their related gains and losses are reported in other operating activities, net in the statements of cash flows. (Dollars in thousands) Notional Amounts (1) Fair Values Derivatives designated as cash flow hedging instruments: September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Interest rate swaps included in other assets $ 10,500 $ 10,500 $ 1,106 $ 1,043 Derivatives not designated as hedging instruments: Interest rate swaps included in other assets $ 366,934 $ 352,842 $ 27,991 $ 25,482 Interest rate swaps included in other liabilities 360,119 345,742 (27,517) (25,175) Risk participation agreements included in other assets 20,000 59,738 1 — Forward commitments to purchase forward-settling mortgage-backed securities included in other liabilities 10,000 7,000 (153) (100) Forward commitments to purchase treasury notes in other liabilities 23,500 31,500 (365) — Forward commitments to sell residential mortgage loans included in other assets 4,500 8,500 53 7 Interest rate-lock commitments on residential mortgage loans included in other assets 14,154 9,544 342 201 $ 799,207 $ 814,866 $ 352 $ 415 ____________________________ (1) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. |
Weighted-average Rates Paid and Received for Interest Rate Swaps | The weighted-average rates paid and received for interest rate swaps at September 30, 2023, and December 31, 2022, were as follows: Weighted-Average Interest Rate September 30, 2023 December 31, 2022 Interest rate swaps: Paid Received Paid Received Cash flow hedges 4.24 % 8.25 % 4.98 % 5.72 % Non-hedging interest rate swaps - financial institution counterparties 4.77 7.87 3.72 5.75 Non-hedging interest rate swaps - customer counterparties 7.87 4.77 5.75 3.72 |
Gains and Losses Recognized on Derivative Instruments Not Designated as Hedging Instruments | Gains and losses recognized on derivative instruments not designated as hedging instruments are as follows: (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments: 2023 2022 2023 2022 Amount of loss recognized in mortgage banking revenue (1) $ (1,102) $ (1,317) $ (1,613) $ (3,537) Amount of gain recognized in other non-interest income 82 210 167 652 ____________________________ (1) Gains and losses on these instruments are largely offset by market fluctuations in mortgage servicing rights. See Note 6 — Mortgage Banking for more information on components of mortgage banking revenue. |
Stock and Incentive Compensat_2
Stock and Incentive Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Black-Scholes Option Pricing Model | The table below includes the weighted-average assumptions used to calculate the grant date fair value of the ESPP rights for the periods indicated using the Black-Scholes option pricing model: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Expected term (in years) 1.00 1.00 1.00 1.00 Dividend yield $ 2.08 $ 1.52 $ 1.81 $ 1.38 Risk-free interest rate 4.94 % 2.00 % 3.52 % 0.98 % Expected volatility 31.12 32.56 31.81 39.75 |
Schedule of ESPP Shares Purchased | The ESPP shares purchased are as follows for the dates indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 ESPP shares purchased — — 46,213 26,089 Shares available for issuance under the ESPP 927,698 973,911 927,698 973,911 |
Schedule of Share-Based Compensation Cost Charged to Income | Share-based compensation cost charged to income for the three and nine months ended September 30, 2023 and 2022, is presented below. There was no stock option expense for any of the periods shown. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 RSA & RSU $ 1,180 $ 753 $ 3,236 $ 2,030 PSU 41 134 336 283 ESPP 114 83 314 235 Total stock compensation expense $ 1,335 $ 970 $ 3,886 $ 2,548 Related tax benefits recognized in net income $ 280 $ 204 $ 816 $ 535 |
Schedule of Time-Vested Award Activity | The following table summarizes the Company’s award activity: Nine Months Ended September 30, 2023 2022 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested RSAs, January 1, 27,391 $ 35.37 48,048 $ 35.27 Granted RSAs 16,788 28.61 12,840 37.39 Vested RSAs (17,237) 34.33 (22,682) 35.73 Nonvested RSAs, September 30, 26,942 31.82 38,206 35.71 Nonvested RSUs, January 1, 270,390 $ 39.63 73,977 $ 40.64 Granted RSUs 113,674 35.70 87,795 43.09 Vested RSUs (53,263) 41.94 (23,260) 40.40 Forfeited RSUs (10,014) 43.44 (1,841) 43.48 Nonvested RSUs, September 30, 320,787 37.73 136,671 42.21 Nonvested PSUs, January 1, 157,367 $ 29.06 — $ — Granted PSUs 43,591 30.69 27,632 40.85 Forfeited PSUs (3,116) 30.69 — — Nonvested PSUs, September 30, 197,842 27.96 27,632 40.85 |
Schedule of Stock Option Activity | The table below summarizes the status of the Company’s stock options and changes during the nine months ended September 30, 2023 and 2022. (Dollars in thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Nine Months Ended September 30, 2023 Outstanding at January 1, 2023 504,437 $ 29.46 5.13 $ 3,736 Exercised (55,897) 17.35 — 918 Expired (11,081) 33.63 — — Outstanding and exercisable at September 30, 2023 437,459 30.90 3.88 917 Nine Months Ended September 30, 2022 Outstanding at January 1, 2022 39,200 $ 10.73 2.28 $ 1,262 BTH options converted to OBNK options 611,676 28.62 — — Exercised (60,687) 19.67 — 1,373 Expired (331) 37.01 — — Outstanding and exercisable at September 30, 2022 589,858 28.05 4.96 5,971 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | Accumulated other comprehensive (loss) income (“AOCI”) includes the after-tax change in unrealized gains and losses on AFS securities and cash flow hedging activities. (Dollars in thousands) Unrealized (Loss) Gain on AFS Securities Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive (Loss) Income Balance at January 1, 2023 $ (160,700) $ 825 $ (159,875) Net change (12,904) 50 (12,854) Balance at September 30, 2023 $ (173,604) $ 875 $ (172,729) Balance at January 1, 2022 $ 5,809 $ (80) $ 5,729 Net change (181,919) 957 (180,962) Balance at September 30, 2022 $ (176,110) $ 877 $ (175,233) |
Capital and Regulatory Matters
Capital and Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Banking Regulation [Abstract] | |
Actual Capital Amounts and Ratios | The actual capital amounts and ratios of the Company and the Bank at September 30, 2023, and December 31, 2022, are presented in the following table: (Dollars in thousands) September 30, 2023 Actual Minimum Capital Required - Basel III To be Well Capitalized Under Prompt Corrective Action Provisions Common Equity Tier 1 Capital to Risk-Weighted Assets Amount Ratio Amount Ratio Amount Ratio Origin Bancorp, Inc. $ 988,951 11.46 % $ 604,324 7.00 % N/A N/A Origin Bank 1,034,519 12.02 602,430 7.00 $ 559,399 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 1,004,742 11.64 733,823 8.50 N/A N/A Origin Bank 1,034,519 12.02 731,522 8.50 688,492 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 1,261,080 14.61 906,488 10.50 N/A N/A Origin Bank 1,201,282 13.96 903,647 10.50 860,616 10.00 Leverage Ratio Origin Bancorp, Inc. 1,004,742 10.00 402,029 4.00 N/A N/A Origin Bank 1,034,519 10.33 400,778 4.00 500,973 5.00 December 31, 2022 Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 906,859 10.93 580,857 7.00 N/A N/A Origin Bank 952,579 11.50 579,775 7.00 538,363 6.50 Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 922,584 11.12 705,327 8.50 N/A N/A Origin Bank 952,579 11.50 704,013 8.50 662,600 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 1,180,665 14.23 871,290 10.50 N/A N/A Origin Bank 1,109,257 13.39 869,661 10.50 828,249 10.00 Leverage Ratio Origin Bancorp, Inc. 922,584 9.66 381,955 4.00 N/A N/A Origin Bank 952,579 9.94 383,359 4.00 479,198 5.00 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Off-Balance Sheet Financial Instruments | The table below presents the Company’s commitments to extend credit by commitment expiration date for the dates indicated: (Dollars in thousands) September 30, 2023 Less than One-Three Three-Five Greater than Total Commitments to extend credit (1) $ 921,782 $ 961,365 $ 447,769 $ 101,953 $ 2,432,869 Standby letters of credit 102,449 6,958 32,957 — 142,364 Total off-balance sheet commitments $ 1,024,231 $ 968,323 $ 480,726 $ 101,953 $ 2,575,233 December 31, 2022 Commitments to extend credit (1) $ 1,093,744 $ 988,212 $ 553,069 $ 96,783 $ 2,731,808 Standby letters of credit 86,922 2,264 — — 89,186 Total off-balance sheet commitments $ 1,180,666 $ 990,476 $ 553,069 $ 96,783 $ 2,820,994 ____________________________ (1) Includes $723.3 million and $594.6 million of unconditionally cancellable commitments at September 30, 2023, and December 31, 2022, respectively. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Values of Assets Acquired and Liabilities Assumed | The following schedule is a breakdown of the assets acquired and liabilities assumed as of the merger date: BT Holdings, Inc. (Dollars in thousands) As Recorded by Origin Assets Acquired: Cash and cash equivalents $ 69,953 Investment securities 456,808 Loans acquired 1,239,532 Allowance for credit losses on loans (5,527) Loans receivable, net 1,234,005 Premises and equipment 17,825 Non-marketable equity securities held in other financial institutions 5,873 Core deposit intangible 38,356 Other assets 23,778 Total assets acquired $ 1,846,598 Liabilities Assumed: Noninterest-bearing deposits $ 398,089 Interest-bearing deposits 865,864 Time deposits 302,506 Total deposits 1,566,459 Securities sold under agreements to repurchase 10,133 Subordinated indebtedness, net 44,074 Accrued expenses and other liabilities 12,674 Total liabilities assumed 1,633,340 Net assets acquired 213,258 Purchase price 307,784 Goodwill $ 94,526 |
Financing Receivable, Purchased With Credit Deterioration | The following table provides a summary of loans purchased with credit deterioration at the merger transaction date with BTH: August 1, 2022 (Dollars in thousands) Commercial Real Estate Construction/ Land/ Land Development Residential Real Estate Commercial and Industrial Mortgage Warehouse Lines of Credit Consumer Total Unpaid principal balance $ 10,731 $ 1,315 $ 2,880 $ 37,117 $ — $ 169 $ 52,212 PCD allowance for credit loss at merger 1 — — 5,525 — 1 5,527 Non-credit related (premium)/discount (277) (92) 3 (77) — 1 (442) Fair value of PCD loans $ 11,007 $ 1,407 $ 2,877 $ 31,669 $ — $ 167 $ 47,127 |
Unaudited Pro-Forma Information Merger with BTH | The following table presents unaudited pro-forma information as if the merger with BTH had occurred on January 1, 2022. This pro-forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit intangible and related income tax effects and is based on our historical results for the periods presented. Transaction-related costs related to the merger are not reflected in the pro-forma amounts. The pro-forma information does not necessarily reflect the results of operations that would have occurred had the Company acquired BTH at the beginning of fiscal year 2021. Cost savings are also not reflected in the unaudited pro-forma amounts. (Dollars in thousands except share and per share data) Pro-Forma for the Nine Months Ended September 30, 2022 Net interest income $ 243,932 Noninterest income 49,425 Net income 76,286 Pro-forma earnings per share: Basic $ 2.50 Diluted 2.48 Weighted average shares outstanding 32,092,071 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2023 segment banking_center | |
Accounting Policies [Abstract] | |
Number of banking centers | banking_center | 60 |
Number of segments | segment | 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net income | $ 24,313 | $ 21,760 | $ 24,302 | $ 16,243 | $ 21,311 | $ 20,683 | $ 70,375 | $ 58,237 |
Denominator: | ||||||||
Weighted average common shares outstanding (in shares) | 30,856,649 | 28,298,984 | 30,797,399 | 25,263,681 | ||||
Dilutive effect of stock-based awards (in shares) | 87,211 | 182,635 | 105,823 | 103,126 | ||||
Weighted average diluted common shares outstanding (in shares) | 30,943,860 | 28,481,619 | 30,903,222 | 25,366,807 | ||||
Basic earnings per common share (in dollars per share) | $ 0.79 | $ 0.57 | $ 2.29 | $ 2.31 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.79 | $ 0.57 | $ 2.28 | $ 2.30 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 613,010 | 12,486 | 459,434 | 13,412 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Available for sale: | ||||
Available for sale, amortized cost | $ 1,510,656 | $ 1,844,975 | ||
Available for sale, gross unrealized gains | 152 | 1,000 | ||
Available for sale, gross unrealized losses | (219,969) | (204,491) | ||
Available for sale, fair value | 1,290,839 | 1,641,484 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 1,290,839 | 1,641,484 | ||
Held to maturity: | ||||
Held to maturity, amortized cost | 11,680 | |||
Held to maturity, fair value | 11,005 | 11,970 | ||
Held to maturity, allowance for credit losses | (890) | (899) | $ (892) | $ (167) |
Held to maturity, net carrying amount | 10,790 | 11,275 | ||
Securities carried at fair value through income: | ||||
Securities carried at fair value through income, fair value | 6,772 | 6,368 | ||
State and municipal securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 382,677 | 447,086 | ||
Available for sale, gross unrealized gains | 148 | 996 | ||
Available for sale, gross unrealized losses | (66,474) | (58,605) | ||
Available for sale, fair value | 316,351 | 389,477 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 316,351 | 389,477 | ||
Held to maturity: | ||||
Held to maturity, amortized cost | 11,680 | 12,174 | ||
Held to maturity, gross unrealized gains | 0 | 278 | ||
Held to maturity, gross unrealized losses | (675) | (482) | ||
Held to maturity, fair value | 11,005 | 11,970 | ||
Held to maturity, allowance for credit losses | (890) | (899) | ||
Held to maturity, net carrying amount | 10,790 | 11,275 | ||
Securities carried at fair value through income: | ||||
Securities carried at fair value through income, amortized cost | 6,815 | 7,100 | ||
Securities carried at fair value through income, fair value | 6,772 | 6,368 | ||
Securities carried at fair value through income, net carrying amount | 6,772 | 6,368 | ||
Corporate bonds | ||||
Available for sale: | ||||
Available for sale, amortized cost | 84,221 | 89,449 | ||
Available for sale, gross unrealized gains | 0 | 0 | ||
Available for sale, gross unrealized losses | (9,931) | (7,191) | ||
Available for sale, fair value | 74,290 | 82,258 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 74,290 | 82,258 | ||
U.S. government and agency securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 111,812 | 264,755 | ||
Available for sale, gross unrealized gains | 3 | 4 | ||
Available for sale, gross unrealized losses | (9,024) | (16,339) | ||
Available for sale, fair value | 102,791 | 248,420 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 102,791 | 248,420 | ||
Commercial mortgage-backed securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 104,745 | 105,536 | ||
Available for sale, gross unrealized gains | 0 | 0 | ||
Available for sale, gross unrealized losses | (14,725) | (13,593) | ||
Available for sale, fair value | 90,020 | 91,943 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 90,020 | 91,943 | ||
Residential mortgage-backed securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 588,373 | 649,765 | ||
Available for sale, gross unrealized gains | 0 | 0 | ||
Available for sale, gross unrealized losses | (87,625) | (77,462) | ||
Available for sale, fair value | 500,748 | 572,303 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 500,748 | 572,303 | ||
Commercial collateralized mortgage obligations | ||||
Available for sale: | ||||
Available for sale, amortized cost | 39,672 | 44,330 | ||
Available for sale, gross unrealized gains | 0 | 0 | ||
Available for sale, gross unrealized losses | (5,723) | (5,517) | ||
Available for sale, fair value | 33,949 | 38,813 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 33,949 | 38,813 | ||
Residential collateralized mortgage obligations | ||||
Available for sale: | ||||
Available for sale, amortized cost | 154,301 | 170,136 | ||
Available for sale, gross unrealized gains | 0 | 0 | ||
Available for sale, gross unrealized losses | (25,868) | (23,766) | ||
Available for sale, fair value | 128,433 | 146,370 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 128,433 | 146,370 | ||
Asset-backed securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 44,855 | 73,918 | ||
Available for sale, gross unrealized gains | 1 | 0 | ||
Available for sale, gross unrealized losses | (599) | (2,018) | ||
Available for sale, fair value | 44,257 | 71,900 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | $ 44,257 | $ 71,900 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 Months | $ 19,240 | $ 794,894 |
12 Months or More | 1,241,455 | 801,830 |
Total | 1,260,695 | 1,596,724 |
Unrealized Loss | ||
Less than 12 Months | (911) | (59,754) |
12 Months or More | (219,058) | (144,737) |
Total | (219,969) | (204,491) |
State and municipal securities | ||
Fair Value | ||
Less than 12 Months | 8,335 | 171,079 |
12 Months or More | 281,606 | 175,011 |
Total | 289,941 | 346,090 |
Unrealized Loss | ||
Less than 12 Months | (493) | (14,947) |
12 Months or More | (65,981) | (43,658) |
Total | (66,474) | (58,605) |
Fair Value | ||
Less than 12 Months | 5,105 | 6,518 |
12 Months or More | 5,900 | 0 |
Total | 11,005 | 6,518 |
Unrealized Loss | ||
Less than 12 Months | (62) | (482) |
12 Months or More | (613) | 0 |
Total | (675) | (482) |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 5,624 | 69,618 |
12 Months or More | 67,667 | 11,640 |
Total | 73,291 | 81,258 |
Unrealized Loss | ||
Less than 12 Months | (376) | (5,581) |
12 Months or More | (9,555) | (1,610) |
Total | (9,931) | (7,191) |
U.S. government and agency securities | ||
Fair Value | ||
Less than 12 Months | 0 | 152,471 |
12 Months or More | 102,465 | 95,576 |
Total | 102,465 | 248,047 |
Unrealized Loss | ||
Less than 12 Months | 0 | (7,373) |
12 Months or More | (9,024) | (8,966) |
Total | (9,024) | (16,339) |
Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 0 | 37,083 |
12 Months or More | 90,020 | 54,860 |
Total | 90,020 | 91,943 |
Unrealized Loss | ||
Less than 12 Months | 0 | (3,416) |
12 Months or More | (14,725) | (10,177) |
Total | (14,725) | (13,593) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 59 | 231,848 |
12 Months or More | 500,689 | 340,455 |
Total | 500,748 | 572,303 |
Unrealized Loss | ||
Less than 12 Months | (8) | (20,465) |
12 Months or More | (87,617) | (56,997) |
Total | (87,625) | (77,462) |
Commercial collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 0 | 21,999 |
12 Months or More | 33,949 | 16,814 |
Total | 33,949 | 38,813 |
Unrealized Loss | ||
Less than 12 Months | 0 | (2,516) |
12 Months or More | (5,723) | (3,001) |
Total | (5,723) | (5,517) |
Residential collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 0 | 48,749 |
12 Months or More | 128,433 | 97,621 |
Total | 128,433 | 146,370 |
Unrealized Loss | ||
Less than 12 Months | 0 | (3,928) |
12 Months or More | (25,868) | (19,838) |
Total | (25,868) | (23,766) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 5,222 | 62,047 |
12 Months or More | 36,626 | 9,853 |
Total | 41,848 | 71,900 |
Unrealized Loss | ||
Less than 12 Months | (34) | (1,528) |
12 Months or More | (565) | (490) |
Total | $ (599) | $ (2,018) |
Securities - Narrative (Details
Securities - Narrative (Details) | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |||
Number of securities in an unrealized loss position | security | 647 | ||
Held-to-maturity securities, accrued interest | $ 6,400,000 | $ 8,200,000 | |
Held to maturity, amortized cost | 11,680,000 | ||
Held-to-maturity securities, nonaccrual status | 0 | $ 0 | |
Total Past Due | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held to maturity, amortized cost | $ 0 | $ 0 |
Securities - Allowance for Cred
Securities - Allowance for Credit Losses for Held-to-Maturity Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses: | ||||
Beginning Balance | $ 899,000 | $ 167,000 | ||
Credit loss expense | $ (45,000) | $ 0 | (9,000) | 725,000 |
Ending Balance | $ 890,000 | $ 892,000 | $ 890,000 | $ 892,000 |
Securities - Proceeds from Sale
Securities - Proceeds from Sales of Securities Available for Sale and Gross Gains (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales/calls | $ 214,302 | $ 484,421 |
Gross realized gains | 596 | 3,766 |
Gross realized losses | $ (7,625) | $ (2,102) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 5,167 | |
Due after ten years | 6,513 | |
Held to maturity, amortized cost | 11,680 | |
Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 5,105 | |
Due after ten years | 5,900 | |
Held to maturity, fair value | 11,005 | $ 11,970 |
Amortized Cost | ||
Due in one year or less | 64,008 | |
Due after one year through five years | 96,426 | |
Due after five years through ten years | 197,466 | |
Due after ten years | 220,810 | |
Available for sale, amortized cost | 1,510,656 | 1,844,975 |
Fair Value | ||
Due in one year or less | 63,004 | |
Due after one year through five years | 87,840 | |
Due after five years through ten years | 169,927 | |
Due after ten years | 172,661 | |
Available for sale, fair value | 1,290,839 | 1,641,484 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 104,745 | |
Available for sale, amortized cost | 104,745 | 105,536 |
Fair Value | ||
Without single maturity date | 90,020 | |
Available for sale, fair value | 90,020 | 91,943 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 588,373 | |
Available for sale, amortized cost | 588,373 | 649,765 |
Fair Value | ||
Without single maturity date | 500,748 | |
Available for sale, fair value | 500,748 | 572,303 |
Commercial collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 39,672 | |
Available for sale, amortized cost | 39,672 | 44,330 |
Fair Value | ||
Without single maturity date | 33,949 | |
Available for sale, fair value | 33,949 | 38,813 |
Residential collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 154,301 | |
Available for sale, amortized cost | 154,301 | 170,136 |
Fair Value | ||
Without single maturity date | 128,433 | |
Available for sale, fair value | 128,433 | 146,370 |
Asset-backed securities | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 44,855 | |
Available for sale, amortized cost | 44,855 | 73,918 |
Fair Value | ||
Without single maturity date | 44,257 | |
Available for sale, fair value | $ 44,257 | $ 71,900 |
Securities - Securities Pledged
Securities - Securities Pledged as Collateral (Details) - Asset Pledged as Collateral - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying value of securities pledged to secure public deposits | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt securities | $ 412,829 | $ 769,691 |
Carrying value of securities pledged to repurchase agreements | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt securities | $ 5,530 | $ 6,797 |
Loans - Schedule of Loans (Deta
Loans - Schedule of Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Aug. 01, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held for sale | $ 14,944 | $ 49,957 | $ 14,944 | |||||
Total Loans Receivable | 7,568,063 | 7,090,022 | 7,568,063 | |||||
Less: Allowance for loan credit losses (“ALCL”) | 95,177 | 87,161 | 95,177 | $ 83,359 | $ 94,353 | $ 63,123 | $ 64,586 | |
LHFI, net | 7,472,886 | 7,002,861 | 7,472,886 | $ 6,770,000 | ||||
Net deferred loan fees | 11,500 | 14,200 | 11,500 | |||||
Net loan discounts | 179 | 2,200 | 2,067 | 1,187 | ||||
Real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 5,200,816 | 4,727,841 | 5,200,816 | |||||
Real estate | Commercial real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 2,435,891 | 2,304,678 | 2,435,891 | |||||
Less: Allowance for loan credit losses (“ALCL”) | 19,109 | 19,772 | 19,109 | 18,031 | 20,839 | 16,112 | 13,425 | |
Real estate | Owner occupied commercial real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 932,109 | 843,006 | 932,109 | |||||
Real estate | Non-owner occupied commercial real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 1,503,782 | 1,461,672 | 1,503,782 | |||||
Real estate | Construction/land/land development | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 1,076,756 | 945,625 | 1,076,756 | |||||
Less: Allowance for loan credit losses (“ALCL”) | 9,345 | 7,776 | 9,345 | 7,066 | 8,729 | 4,707 | 4,011 | |
Real estate | Residential real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 1,688,169 | 1,477,538 | 1,688,169 | |||||
Less: Allowance for loan credit losses (“ALCL”) | 10,069 | 8,230 | 10,069 | 7,755 | 9,018 | 5,851 | 6,116 | |
Commercial and Industrial | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 2,058,073 | 2,051,161 | 2,058,073 | |||||
Less: Allowance for loan credit losses (“ALCL”) | 55,453 | 50,148 | 55,453 | 49,058 | 54,173 | 35,477 | 40,146 | |
Mortgage warehouse lines of credit | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 286,293 | 284,867 | 286,293 | |||||
Less: Allowance for loan credit losses (“ALCL”) | 458 | 379 | 458 | 556 | 817 | 459 | 340 | |
Consumer | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total Loans Receivable | 22,881 | 26,153 | 22,881 | |||||
Less: Allowance for loan credit losses (“ALCL”) | $ 743 | $ 856 | $ 743 | $ 893 | $ 777 | $ 517 | $ 548 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
PCD loans | $ 36,800,000 | $ 48,100,000 | ||||||
Accrued interest | 33,000,000 | $ 33,000,000 | $ 21,900,000 | $ 33,000,000 | $ 21,900,000 | |||
Collectively evaluated portion of increase (decrease) related to reserve | 7,300,000 | 7,300,000 | 7,300,000 | |||||
Individually evaluated portion of increase (decrease) related to reserve | 4,500,000 | 4,500,000 | 4,500,000 | |||||
Funding commitments | 682,000 | 0 | 682,000 | 682,000 | $ 0 | |||
Gross interest income that would have been recorded | 3,202,000 | 1,628,000 | 8,246,000 | 6,222,000 | ||||
Transfer from held for sale portfolio to held for investment portfolio | $ 7,100,000 | |||||||
Nonaccrual mortgage loans held for sale recorded at fair value | $ 0 | $ 3,900,000 | 0 | 0 | 3,900,000 | |||
Nonperforming Financial Instruments | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross interest income that would have been recorded | 884,000 | 799,000 | ||||||
Interest income | 0 | 0 | ||||||
Real estate | Commercial real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross interest income that would have been recorded | 0 | 0 | 42,000 | 166,000 | 166,000 | |||
Commercial Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross interest income that would have been recorded | $ 3,187,000 | $ 1,618,000 | $ 8,070,000 | $ 5,943,000 | $ 8,459,000 |
Loans - Loans by Credit Quality
Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Charge-offs | $ 3,202 | $ 1,628 | $ 8,246 | $ 6,222 | |
Real estate | Commercial real estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 270,599 | 270,599 | $ 886,174 | ||
Year two | 889,930 | 889,930 | 504,082 | ||
Year three | 488,437 | 488,437 | 284,919 | ||
Year four | 259,278 | 259,278 | 234,054 | ||
Year five | 223,935 | 223,935 | 179,218 | ||
Prior | 227,383 | 227,383 | 144,671 | ||
Revolving Loans Amortized Cost Basis | 76,329 | 76,329 | 71,560 | ||
Total | 2,435,891 | 2,435,891 | 2,304,678 | ||
Year one | 0 | 0 | |||
Year two | 0 | 0 | |||
Year three | 0 | 0 | |||
Year four | 0 | 0 | |||
Year five | 0 | 0 | |||
More than 5 years | 42 | 166 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Charge-offs | 0 | 0 | 42 | 166 | 166 |
Real estate | Commercial real estate | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 269,854 | 269,854 | 885,244 | ||
Year two | 888,014 | 888,014 | 502,287 | ||
Year three | 485,198 | 485,198 | 283,368 | ||
Year four | 257,683 | 257,683 | 230,040 | ||
Year five | 223,348 | 223,348 | 168,079 | ||
Prior | 209,716 | 209,716 | 131,411 | ||
Revolving Loans Amortized Cost Basis | 76,329 | 76,329 | 69,952 | ||
Total | 2,410,142 | 2,410,142 | 2,270,381 | ||
Real estate | Commercial real estate | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 0 | 0 | 0 | ||
Year two | 0 | 0 | 0 | ||
Year three | 0 | 0 | 0 | ||
Year four | 0 | 0 | 0 | ||
Year five | 0 | 0 | 8,174 | ||
Prior | 7,996 | 7,996 | 1,359 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 1,558 | ||
Total | 7,996 | 7,996 | 11,091 | ||
Real estate | Commercial real estate | Classified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 745 | 745 | 930 | ||
Year two | 1,916 | 1,916 | 1,795 | ||
Year three | 3,239 | 3,239 | 1,551 | ||
Year four | 1,595 | 1,595 | 4,014 | ||
Year five | 587 | 587 | 2,965 | ||
Prior | 9,671 | 9,671 | 11,901 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 50 | ||
Total | 17,753 | 17,753 | 23,206 | ||
Real estate | Construction/land/land development | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 203,869 | 203,869 | 452,340 | ||
Year two | 502,995 | 502,995 | 321,051 | ||
Year three | 256,346 | 256,346 | 59,166 | ||
Year four | 31,083 | 31,083 | 27,419 | ||
Year five | 17,948 | 17,948 | 27,913 | ||
Prior | 26,375 | 26,375 | 6,961 | ||
Revolving Loans Amortized Cost Basis | 38,140 | 38,140 | 50,775 | ||
Total | 1,076,756 | 1,076,756 | 945,625 | ||
Year one | 0 | 0 | |||
Year two | 0 | 0 | |||
Year three | 0 | 0 | |||
Year four | 0 | 0 | |||
Year five | 0 | 0 | |||
More than 5 years | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Real estate | Construction/land/land development | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 203,868 | 203,868 | 445,943 | ||
Year two | 492,097 | 492,097 | 320,951 | ||
Year three | 235,360 | 235,360 | 58,880 | ||
Year four | 30,838 | 30,838 | 27,381 | ||
Year five | 17,281 | 17,281 | 27,753 | ||
Prior | 25,621 | 25,621 | 5,253 | ||
Revolving Loans Amortized Cost Basis | 35,821 | 35,821 | 48,436 | ||
Total | 1,040,886 | 1,040,886 | 934,597 | ||
Real estate | Construction/land/land development | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 0 | 0 | 6,217 | ||
Year two | 10,718 | 10,718 | 0 | ||
Year three | 20,932 | 20,932 | 0 | ||
Year four | 0 | 0 | 0 | ||
Year five | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total | 31,650 | 31,650 | 6,217 | ||
Real estate | Construction/land/land development | Classified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 1 | 1 | 180 | ||
Year two | 180 | 180 | 100 | ||
Year three | 54 | 54 | 286 | ||
Year four | 245 | 245 | 38 | ||
Year five | 667 | 667 | 160 | ||
Prior | 754 | 754 | 1,708 | ||
Revolving Loans Amortized Cost Basis | 2,319 | 2,319 | 2,339 | ||
Total | 4,220 | 4,220 | 4,811 | ||
Real estate | Residential real estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 280,495 | 280,495 | 537,966 | ||
Year two | 519,743 | 519,743 | 310,834 | ||
Year three | 306,829 | 306,829 | 261,773 | ||
Year four | 242,744 | 242,744 | 109,024 | ||
Year five | 101,156 | 101,156 | 49,716 | ||
Prior | 153,910 | 153,910 | 127,705 | ||
Revolving Loans Amortized Cost Basis | 83,292 | 83,292 | 80,520 | ||
Total | 1,688,169 | 1,688,169 | 1,477,538 | ||
Year one | 0 | 0 | |||
Year two | 0 | 0 | |||
Year three | 0 | 0 | |||
Year four | 5 | 0 | |||
Year five | 0 | 0 | |||
More than 5 years | 22 | 91 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Charge-offs | 0 | 0 | 27 | 75 | 91 |
Real estate | Residential real estate | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 279,903 | 279,903 | 535,739 | ||
Year two | 517,755 | 517,755 | 308,070 | ||
Year three | 305,358 | 305,358 | 261,293 | ||
Year four | 242,179 | 242,179 | 107,530 | ||
Year five | 99,778 | 99,778 | 48,652 | ||
Prior | 149,748 | 149,748 | 123,052 | ||
Revolving Loans Amortized Cost Basis | 83,182 | 83,182 | 80,375 | ||
Total | 1,677,903 | 1,677,903 | 1,464,711 | ||
Real estate | Residential real estate | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 250 | 250 | 0 | ||
Year two | 0 | 0 | 0 | ||
Year three | 0 | 0 | 390 | ||
Year four | 145 | 145 | 0 | ||
Year five | 0 | 0 | 0 | ||
Prior | 309 | 309 | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | ||
Total | 704 | 704 | 390 | ||
Real estate | Residential real estate | Classified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 342 | 342 | 2,227 | ||
Year two | 1,988 | 1,988 | 2,764 | ||
Year three | 1,471 | 1,471 | 90 | ||
Year four | 420 | 420 | 1,494 | ||
Year five | 1,378 | 1,378 | 1,064 | ||
Prior | 3,853 | 3,853 | 4,653 | ||
Revolving Loans Amortized Cost Basis | 110 | 110 | 145 | ||
Total | 9,562 | 9,562 | 12,437 | ||
Commercial and Industrial | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 255,949 | 255,949 | 467,137 | ||
Year two | 340,239 | 340,239 | 253,429 | ||
Year three | 191,848 | 191,848 | 82,356 | ||
Year four | 41,156 | 41,156 | 77,021 | ||
Year five | 62,660 | 62,660 | 41,945 | ||
Prior | 53,809 | 53,809 | 29,748 | ||
Revolving Loans Amortized Cost Basis | 1,112,412 | 1,112,412 | 1,099,525 | ||
Total | 2,058,073 | 2,058,073 | 2,051,161 | ||
Year one | 111 | 28 | |||
Year two | 263 | 726 | |||
Year three | 40 | 48 | |||
Year four | 141 | 869 | |||
Year five | 0 | 337 | |||
More than 5 years | 411 | 1,103 | |||
Revolving Loans Amortized Cost Basis | 7,104 | 5,348 | |||
Charge-offs | 3,187 | 1,618 | 8,070 | 5,943 | 8,459 |
Commercial and Industrial | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 252,933 | 252,933 | 454,813 | ||
Year two | 328,833 | 328,833 | 239,411 | ||
Year three | 183,124 | 183,124 | 82,168 | ||
Year four | 40,747 | 40,747 | 75,043 | ||
Year five | 61,655 | 61,655 | 40,534 | ||
Prior | 53,379 | 53,379 | 29,745 | ||
Revolving Loans Amortized Cost Basis | 1,091,475 | 1,091,475 | 1,083,221 | ||
Total | 2,012,146 | 2,012,146 | 2,004,935 | ||
Commercial and Industrial | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 524 | 524 | 8,683 | ||
Year two | 9,918 | 9,918 | 2,563 | ||
Year three | 0 | 0 | 0 | ||
Year four | 96 | 96 | 0 | ||
Year five | 0 | 0 | 187 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 3,026 | 3,026 | 1,620 | ||
Total | 13,564 | 13,564 | 13,053 | ||
Commercial and Industrial | Classified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 2,492 | 2,492 | 3,641 | ||
Year two | 1,488 | 1,488 | 11,455 | ||
Year three | 8,724 | 8,724 | 188 | ||
Year four | 313 | 313 | 1,978 | ||
Year five | 1,005 | 1,005 | 1,224 | ||
Prior | 430 | 430 | 3 | ||
Revolving Loans Amortized Cost Basis | 17,911 | 17,911 | 14,684 | ||
Total | 32,363 | 32,363 | 33,173 | ||
Mortgage warehouse lines of credit | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 284,867 | ||||
Total | 284,867 | ||||
Year one | 0 | 0 | |||
Year two | 0 | 0 | |||
Year three | 0 | 0 | |||
Year four | 0 | 0 | |||
Year five | 0 | 0 | |||
More than 5 years | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Mortgage warehouse lines of credit | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 0 | 0 | 0 | ||
Year two | 0 | 0 | 0 | ||
Year three | 0 | 0 | 0 | ||
Year four | 0 | 0 | 0 | ||
Year five | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 286,293 | 286,293 | 282,298 | ||
Total | 286,293 | 286,293 | 282,298 | ||
Mortgage warehouse lines of credit | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 2,042 | ||||
Total | 2,042 | ||||
Mortgage warehouse lines of credit | Classified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 0 | ||||
Year two | 0 | ||||
Year three | 0 | ||||
Year four | 0 | ||||
Year five | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 527 | ||||
Total | 527 | ||||
Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 8,443 | 8,443 | 9,752 | ||
Year two | 4,545 | 4,545 | 3,841 | ||
Year three | 1,686 | 1,686 | 1,210 | ||
Year four | 510 | 510 | 790 | ||
Year five | 525 | 525 | 135 | ||
Prior | 58 | 58 | 15 | ||
Revolving Loans Amortized Cost Basis | 7,114 | 7,114 | 10,410 | ||
Total | 22,881 | 22,881 | 26,153 | ||
Year one | 0 | 3 | |||
Year two | 90 | 27 | |||
Year three | 7 | 7 | |||
Year four | 0 | 2 | |||
Year five | 0 | 1 | |||
More than 5 years | 0 | 1 | |||
Revolving Loans Amortized Cost Basis | 10 | 2 | |||
Charge-offs | 15 | $ 10 | 107 | $ 38 | 43 |
Consumer | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 8,423 | 8,423 | 9,730 | ||
Year two | 4,473 | 4,473 | 3,822 | ||
Year three | 1,659 | 1,659 | 1,210 | ||
Year four | 510 | 510 | 784 | ||
Year five | 522 | 522 | 135 | ||
Prior | 58 | 58 | 15 | ||
Revolving Loans Amortized Cost Basis | 7,113 | 7,113 | 10,408 | ||
Total | 22,758 | 22,758 | 26,104 | ||
Consumer | Classified | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one | 20 | 20 | 22 | ||
Year two | 72 | 72 | 19 | ||
Year three | 27 | 27 | 0 | ||
Year four | 0 | 0 | 6 | ||
Year five | 3 | 3 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost Basis | 1 | 1 | 2 | ||
Total | $ 123 | $ 123 | $ 49 |
Loans - Loan Portfolio Aging An
Loans - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 7,568,063 | $ 7,090,022 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 20,347 | 10,932 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,352 | 6,927 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 9,855 | 2,879 |
Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 8,140 | 1,126 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 7,547,716 | 7,079,090 |
Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 5,200,816 | 4,727,841 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 9,061 | 4,161 |
Real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,346 | 2,699 |
Real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,099 | 891 |
Real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 4,616 | 571 |
Real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 5,191,755 | 4,723,680 |
Real estate | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,435,891 | 2,304,678 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 136 | 135 |
Real estate | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 31 |
Real estate | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Real estate | Commercial real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 136 | 104 |
Real estate | Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,435,755 | 2,304,543 |
Real estate | Construction/land/land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,076,756 | 945,625 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Construction/land/land development | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,163 | 871 |
Real estate | Construction/land/land development | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,085 | 854 |
Real estate | Construction/land/land development | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 23 | 0 |
Real estate | Construction/land/land development | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 55 | 17 |
Real estate | Construction/land/land development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,075,593 | 944,754 |
Real estate | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,688,169 | 1,477,538 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Residential real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 7,762 | 3,155 |
Real estate | Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 261 | 1,814 |
Real estate | Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,076 | 891 |
Real estate | Residential real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 4,425 | 450 |
Real estate | Residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 1,680,407 | 1,474,383 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,058,073 | 2,051,161 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Commercial and Industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 11,173 | 6,394 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 918 | 3,878 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 6,746 | 1,972 |
Commercial and Industrial | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 3,509 | 544 |
Commercial and Industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 2,046,900 | 2,044,767 |
Mortgage warehouse lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 286,293 | 284,867 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Mortgage warehouse lines of credit | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Mortgage warehouse lines of credit | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Mortgage warehouse lines of credit | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Mortgage warehouse lines of credit | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Mortgage warehouse lines of credit | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 286,293 | 284,867 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 22,881 | 26,153 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Consumer | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 113 | 377 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 88 | 350 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 10 | 16 |
Consumer | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 15 | 11 |
Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | $ 22,768 | $ 25,776 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 94,353,000 | $ 63,123,000 | $ 87,161,000 | $ 64,586,000 | $ 64,586,000 |
Allowance for loan credit losses - BTH merger | 5,527,000 | 5,527,000 | |||
Charge-offs | 3,202,000 | 1,628,000 | 8,246,000 | 6,222,000 | |
Recoveries | 516,000 | 550,000 | 2,330,000 | 1,837,000 | |
Provision | 3,510,000 | 15,787,000 | 13,932,000 | 17,631,000 | |
Ending balance | 95,177,000 | 83,359,000 | 95,177,000 | 83,359,000 | 87,161,000 |
Average balance | $ 7,561,094,000 | $ 6,389,472,000 | $ 7,395,440,000 | $ 5,567,702,000 | |
Net charge-offs to loan average balance (annualized) | 0.14% | 0.07% | 0.11% | 0.11% | |
PCD loans acquired | $ 10,800,000 | $ 10,800,000 | |||
Provision (benefit) for credit losses | $ 3,500,000 | 16,900,000 | $ 14,000,000 | 20,100,000 | |
Provision (release) for off-balance sheet commitments | 50,000 | 1,200,000 | 95,000 | 1,700,000 | |
Credit loss expense (benefit) for held to maturity securities | (45,000) | 0 | (9,000) | 725,000 | |
Real estate | Commercial real estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 20,839,000 | 16,112,000 | 19,772,000 | 13,425,000 | 13,425,000 |
Allowance for loan credit losses - BTH merger | 1,000 | 1,000 | |||
Charge-offs | 0 | 0 | 42,000 | 166,000 | 166,000 |
Recoveries | 28,000 | 17,000 | 113,000 | 19,000 | |
Provision | (1,758,000) | 1,901,000 | (734,000) | 4,752,000 | |
Ending balance | 19,109,000 | 18,031,000 | 19,109,000 | 18,031,000 | 19,772,000 |
Average balance | $ 2,428,969,000 | $ 2,046,411,000 | $ 2,393,028,000 | $ 1,865,658,000 | |
Net charge-offs to loan average balance (annualized) | 0% | 0% | 0% | 0.01% | |
Real estate | Construction/land/land development | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 8,729,000 | $ 4,707,000 | $ 7,776,000 | $ 4,011,000 | 4,011,000 |
Allowance for loan credit losses - BTH merger | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 3,000 | 200,000 | 3,000 | 200,000 | |
Provision | 613,000 | 2,159,000 | 1,566,000 | 2,855,000 | |
Ending balance | 9,345,000 | 7,066,000 | 9,345,000 | 7,066,000 | 7,776,000 |
Average balance | $ 1,044,180,000 | $ 760,682,000 | $ 997,296,000 | $ 638,683,000 | |
Net charge-offs to loan average balance (annualized) | 0% | (0.10%) | 0% | (0.04%) | |
Real estate | Residential real estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 9,018,000 | $ 5,851,000 | $ 8,230,000 | $ 6,116,000 | 6,116,000 |
Allowance for loan credit losses - BTH merger | 0 | 0 | |||
Charge-offs | 0 | 0 | 27,000 | 75,000 | 91,000 |
Recoveries | 3,000 | 6,000 | 13,000 | 98,000 | |
Provision | 1,048,000 | 1,898,000 | 1,853,000 | 1,616,000 | |
Ending balance | 10,069,000 | 7,755,000 | 10,069,000 | 7,755,000 | 8,230,000 |
Average balance | $ 1,663,291,000 | $ 1,249,746,000 | $ 1,599,803,000 | $ 1,042,397,000 | |
Net charge-offs to loan average balance (annualized) | 0% | 0% | 0% | 0% | |
Commercial and Industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 54,173,000 | $ 35,477,000 | $ 50,148,000 | $ 40,146,000 | 40,146,000 |
Allowance for loan credit losses - BTH merger | 5,525,000 | 5,525,000 | |||
Charge-offs | 3,187,000 | 1,618,000 | 8,070,000 | 5,943,000 | 8,459,000 |
Recoveries | 477,000 | 325,000 | 2,189,000 | 1,505,000 | |
Provision | 3,990,000 | 9,349,000 | 11,186,000 | 7,825,000 | |
Ending balance | 55,453,000 | 49,058,000 | 55,453,000 | 49,058,000 | 50,148,000 |
Average balance | $ 2,024,675,000 | $ 1,816,912,000 | $ 2,051,272,000 | $ 1,548,419,000 | |
Net charge-offs to loan average balance (annualized) | 0.53% | 0.28% | 0.38% | 0.38% | |
Mortgage warehouse lines of credit | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 817,000 | $ 459,000 | $ 379,000 | $ 340,000 | 340,000 |
Allowance for loan credit losses - BTH merger | 0 | 0 | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (359,000) | 97,000 | 79,000 | 216,000 | |
Ending balance | 458,000 | 556,000 | 458,000 | 556,000 | 379,000 |
Average balance | $ 376,275,000 | $ 491,584,000 | $ 329,205,000 | $ 453,658,000 | |
Net charge-offs to loan average balance (annualized) | 0% | 0% | 0% | 0% | |
Consumer | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 777,000 | $ 517,000 | $ 856,000 | $ 548,000 | 548,000 |
Allowance for loan credit losses - BTH merger | 1,000 | 1,000 | |||
Charge-offs | 15,000 | 10,000 | 107,000 | 38,000 | 43,000 |
Recoveries | 5,000 | 2,000 | 12,000 | 15,000 | |
Provision | (24,000) | 383,000 | (18,000) | 367,000 | |
Ending balance | 743,000 | 893,000 | 743,000 | 893,000 | $ 856,000 |
Average balance | $ 23,704,000 | $ 24,137,000 | $ 24,836,000 | $ 18,887,000 | |
Net charge-offs to loan average balance (annualized) | 0.17% | 0.13% | 0.51% | 0.16% |
Loans - Amortized Cost Basis of
Loans - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 5,232 | $ 8,217 |
ALCL Allocation | 0 | 738 |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 681 | 1,116 |
ALCL Allocation | 0 | 738 |
Mortgage warehouse lines of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
ALCL Allocation | 0 | 0 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
ALCL Allocation | 0 | 0 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 4,551 | 7,101 |
Real Estate | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Real Estate | Mortgage warehouse lines of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Real Estate | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Accounts Receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 831 | |
Accounts Receivable | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 831 | |
Accounts Receivable | Mortgage warehouse lines of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Accounts Receivable | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Equipment | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 152 | 285 |
Equipment | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 152 | 285 |
Equipment | Mortgage warehouse lines of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Equipment | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 529 | |
Other | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 529 | |
Other | Mortgage warehouse lines of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Other | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Commercial Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 752 | 273 |
ALCL Allocation | 0 | 0 |
Commercial Real Estate | Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 752 | 273 |
Commercial Real Estate | Accounts Receivable | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Commercial Real Estate | Equipment | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Commercial Real Estate | Other | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Construction/land/land development | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 97 |
ALCL Allocation | 0 | 0 |
Construction/land/land development | Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 97 |
Construction/land/land development | Accounts Receivable | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Construction/land/land development | Equipment | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | 0 |
Construction/land/land development | Other | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Residential Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 3,799 | 6,731 |
ALCL Allocation | 0 | 0 |
Residential Real Estate | Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 3,799 | 6,731 |
Residential Real Estate | Accounts Receivable | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | |
Residential Real Estate | Equipment | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | 0 | $ 0 |
Residential Real Estate | Other | Real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 0 |
Loans - Non Performing (Nonaccr
Loans - Non Performing (Nonaccrual) Loans Held For Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | $ 10,855 | $ 8,044 |
Total Nonaccrual | 31,608 | 9,940 |
Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 6,263 | 7,517 |
Total Nonaccrual | 14,413 | 8,508 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 900 | 435 |
Total Nonaccrual | 942 | 526 |
Real estate | Construction/land/land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 0 | 59 |
Total Nonaccrual | 235 | 270 |
Real estate | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 5,363 | 7,023 |
Total Nonaccrual | 13,236 | 7,712 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 4,592 | 527 |
Total Nonaccrual | 17,072 | 1,383 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 0 | 0 |
Total Nonaccrual | $ 123 | $ 49 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 25,994 | $ 29,700 |
% of Loans | 0.34% | 0.39% |
Term Extension | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 12,059 | $ 14,138 |
% of Loans | 0.23% | 0.27% |
Term Extension | Commercial and Industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 13,935 | $ 15,562 |
% of Loans | 0.68% | 0.76% |
Weighted average term extension (in months) | 6 months 21 days | 9 months |
Term Extension | Commercial real estate | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 7,507 | $ 7,853 |
% of Loans | 0.31% | 0.32% |
Weighted average term extension (in months) | 10 months 3 days | 12 months 3 days |
Term Extension | Construction/land/land development | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 3,807 | $ 3,808 |
% of Loans | 0.35% | 0.35% |
Weighted average term extension (in months) | 8 months 18 days | 13 months 3 days |
Term Extension | Residential real estate | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 745 | $ 2,477 |
% of Loans | 0.04% | 0.15% |
Weighted average term extension (in months) | 18 months 12 days | 9 months 9 days |
Term Extension And Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 923 | $ 1,091 |
% of Loans | 0.01% | 0.01% |
Term Extension And Interest Rate Reduction | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
% of Loans | 0% | 0% |
Term Extension And Interest Rate Reduction | Commercial and Industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 923 | $ 1,091 |
% of Loans | 0.04% | 0.05% |
Term Extension And Interest Rate Reduction | Commercial real estate | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
% of Loans | 0% | 0% |
Term Extension And Interest Rate Reduction | Construction/land/land development | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
% of Loans | 0% | 0% |
Term Extension And Interest Rate Reduction | Residential real estate | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
% of Loans | 0% | 0% |
Other-Than-Insignificant Payment Delay | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 480 | $ 480 |
% of Loans | 0.01% | 0.01% |
Other-Than-Insignificant Payment Delay | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 427 | $ 427 |
% of Loans | 0.01% | 0.01% |
Other-Than-Insignificant Payment Delay | Commercial and Industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 53 | $ 53 |
% of Loans | 0% | 0% |
Weighted average term extension (in months) | 6 months | 6 months |
Other-Than-Insignificant Payment Delay | Commercial real estate | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 427 | $ 427 |
% of Loans | 0.02% | 0.02% |
Weighted average term extension (in months) | 6 months | 6 months |
Other-Than-Insignificant Payment Delay | Construction/land/land development | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
% of Loans | 0% | 0% |
Other-Than-Insignificant Payment Delay | Residential real estate | Real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized Cost | $ 0 | $ 0 |
% of Loans | 0% | 0% |
Interest Rate Reduction | Commercial and Industrial | Minimum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-average contractual interest rate | 10.10% | 9.90% |
Interest Rate Reduction | Commercial and Industrial | Maximum | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-average contractual interest rate | 9.50% | 9% |
Loans - Payment Status (Amortiz
Loans - Payment Status (Amortized Cost Basis) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Current | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | $ 30,988 |
30-89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 282 |
90 Days or More Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Real estate | Current | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 14,283 |
Real estate | 30-89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 282 |
Real estate | 90 Days or More Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Real estate | Commercial real estate | Current | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 8,280 |
Real estate | Commercial real estate | 30-89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Real estate | Commercial real estate | 90 Days or More Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Real estate | Construction/land/land development | Current | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 3,808 |
Real estate | Construction/land/land development | 30-89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Real estate | Construction/land/land development | 90 Days or More Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Real estate | Residential real estate | Current | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 2,195 |
Real estate | Residential real estate | 30-89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 282 |
Real estate | Residential real estate | 90 Days or More Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Commercial and Industrial | Current | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 16,705 |
Commercial and Industrial | 30-89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | 0 |
Commercial and Industrial | 90 Days or More Past Due | |
Financing Receivable, Past Due [Line Items] | |
Total LHFI | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Assets and Liabilities Recorded on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | $ 1,290,839 | $ 1,641,484 | ||||
Securities carried at fair value through income | 6,772 | 6,368 | ||||
Loans held for sale | 14,944 | 25,389 | ||||
Mortgage servicing rights | 19,189 | $ 19,086 | 20,824 | $ 21,654 | $ 22,127 | $ 16,220 |
State and municipal securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 316,351 | 389,477 | ||||
Securities carried at fair value through income | 6,772 | 6,368 | ||||
Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 74,290 | 82,258 | ||||
Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 90,020 | 91,943 | ||||
Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 500,748 | 572,303 | ||||
Commercial collateralized mortgage obligations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 33,949 | 38,813 | ||||
Residential collateralized mortgage obligations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 128,433 | 146,370 | ||||
Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 44,257 | 71,900 | ||||
Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 1,290,839 | 1,641,484 | ||||
Securities carried at fair value through income | 6,772 | 6,368 | ||||
Loans held for sale | 14,944 | 25,389 | ||||
Mortgage servicing rights | 19,189 | 20,824 | ||||
Other assets - derivatives | 29,493 | 26,733 | ||||
Total recurring fair value measurements - assets | 1,361,237 | 1,720,798 | ||||
Other liabilities - derivatives | (28,035) | (25,275) | ||||
Total recurring fair value measurements - liabilities | (28,035) | (25,275) | ||||
Fair Value, Measurements, Recurring | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 78,963 | 110,645 | ||||
Securities carried at fair value through income | 0 | 0 | ||||
Loans held for sale | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Other assets - derivatives | 0 | 0 | ||||
Total recurring fair value measurements - assets | 78,963 | 110,645 | ||||
Other liabilities - derivatives | 0 | 0 | ||||
Total recurring fair value measurements - liabilities | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 1,159,437 | 1,475,070 | ||||
Securities carried at fair value through income | 0 | 0 | ||||
Loans held for sale | 14,944 | 25,389 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Other assets - derivatives | 29,493 | 26,733 | ||||
Total recurring fair value measurements - assets | 1,203,874 | 1,527,192 | ||||
Other liabilities - derivatives | (28,035) | (25,275) | ||||
Total recurring fair value measurements - liabilities | (28,035) | (25,275) | ||||
Fair Value, Measurements, Recurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 52,439 | 55,769 | ||||
Securities carried at fair value through income | 6,772 | 6,368 | ||||
Loans held for sale | 0 | 0 | ||||
Mortgage servicing rights | 19,189 | 20,824 | ||||
Other assets - derivatives | 0 | 0 | ||||
Total recurring fair value measurements - assets | 78,400 | 82,961 | ||||
Other liabilities - derivatives | 0 | 0 | ||||
Total recurring fair value measurements - liabilities | 0 | 0 | ||||
Fair Value, Measurements, Recurring | State and municipal securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 316,351 | 389,477 | ||||
Fair Value, Measurements, Recurring | State and municipal securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | State and municipal securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 264,912 | 334,708 | ||||
Fair Value, Measurements, Recurring | State and municipal securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 51,439 | 54,769 | ||||
Fair Value, Measurements, Recurring | Corporate bonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 74,290 | 82,258 | ||||
Fair Value, Measurements, Recurring | Corporate bonds | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 73,290 | 81,258 | ||||
Fair Value, Measurements, Recurring | Corporate bonds | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 1,000 | 1,000 | ||||
Fair Value, Measurements, Recurring | U.S. treasury securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 78,963 | 110,645 | ||||
Fair Value, Measurements, Recurring | U.S. treasury securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 78,963 | 110,645 | ||||
Fair Value, Measurements, Recurring | U.S. treasury securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | U.S. treasury securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | U.S. government agency securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 23,828 | 137,775 | ||||
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 23,828 | 137,775 | ||||
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 90,020 | 91,943 | ||||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 90,020 | 91,943 | ||||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 500,748 | 572,303 | ||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 500,748 | 572,303 | ||||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 33,949 | 38,813 | ||||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 33,949 | 38,813 | ||||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 128,433 | 146,370 | ||||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 128,433 | 146,370 | ||||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 44,257 | 71,900 | ||||
Fair Value, Measurements, Recurring | Asset-backed securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Asset-backed securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 44,257 | 71,900 | ||||
Fair Value, Measurements, Recurring | Asset-backed securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
MSRs | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | $ 20,824 | $ 16,220 |
Loss recognized in AOCI | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 656 | 1,926 |
Purchases | 0 | |
Acquired in BTH merger | 1,099 | |
Sales | (1,806) | |
Settlements | 0 | 0 |
Balance at end of period | 19,189 | 21,654 |
MSRs | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | (485) | 2,409 |
MSRs | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities Available for Sale | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 55,769 | 41,461 |
Loss recognized in AOCI | (703) | (5,048) |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Purchases | 25,112 | |
Acquired in BTH merger | 5,000 | |
Sales | 0 | |
Settlements | (2,627) | (3,323) |
Balance at end of period | 52,439 | 63,202 |
Securities Available for Sale | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities Available for Sale | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities at Fair Value Through Income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 6,368 | 7,497 |
Loss recognized in AOCI | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Purchases | 0 | |
Acquired in BTH merger | 0 | |
Sales | 0 | |
Settlements | (285) | (275) |
Balance at end of period | 6,772 | 6,347 |
Securities at Fair Value Through Income | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities at Fair Value Through Income | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | $ 689 | $ (875) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assumptions Used to Value Mortgage Servicing Rights (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment speeds | 7.31% | 7.65% |
Discount rates | 10.25% | 950% |
Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment speeds | 7.89% | 9.20% |
Discount rates | 12.75% | 2,207% |
Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment speeds | 7.64% | 8.11% |
Discount rates | 10.31% | 12.55% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Difference Between Fair Value and Unpaid Principal Balance (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 21,716,000 | $ 31,757,000 |
Principal Balance/Amortized Cost | 21,530,000 | 32,046,000 |
Difference | 186,000 | (289,000) |
Nonaccrual mortgage loans held for sale recorded at fair value | 0 | 3,900,000 |
Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 14,944,000 | 25,389,000 |
Principal Balance/Amortized Cost | 14,715,000 | 24,946,000 |
Difference | 229,000 | 443,000 |
Securities carried at fair value through income | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 6,772,000 | 6,368,000 |
Principal Balance/Amortized Cost | 6,815,000 | 7,100,000 |
Difference | $ (43,000) | (732,000) |
U.S. government agency securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, 90 days or more past due | $ 3,300,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Changes in Fair Value of Assets Classified in the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Mortgage banking revenue (loans held for sale) | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Total fair value option impact on noninterest income | $ (22) | $ (309) | $ (214) | $ (741) |
Other income | Securities carried at fair value through income | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Total fair value option impact on noninterest income | 666 | (282) | 689 | (875) |
Noninterest income | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Total fair value option impact on noninterest income | $ 644 | $ (591) | $ 475 | $ (1,616) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Non-marketable equity securities held in other financial institutions | $ 63,842,000 | $ 63,842,000 | $ 67,378,000 | |||
Impairment recorded on investments in equity securities that do not have readily determinable fair values | 0 | 0 | ||||
Change in fair value of equity investments | 10,100,000 | 10,097,000 | $ 0 | |||
Liability to repurchase past due GNMA loans | 0 | 0 | 24,600,000 | |||
Settlement of sale of GNMA MSR | 0 | $ 1,800,000 | $ 0 | 1,806,000 | $ 0 | |
Loan balance individually evaluated | 5,232,000 | 5,232,000 | 8,217,000 | |||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loan balance individually evaluated | 15,900,000 | 15,900,000 | 20,700,000 | |||
Foreclosed assets | 3,900,000 | 3,900,000 | 806,000 | |||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | Residential real estate | Real estate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Residential mortgage loans in the process of foreclosure | $ 0 | $ 0 | $ 10,000 | |||
Minimum | Measurement Input, Credit Spread | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Credit spread, securities at fair value through income | 0.83% | 0.83% | ||||
Maximum | Measurement Input, Credit Spread | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Credit spread, securities at fair value through income | 2.27% | 2.27% |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Values of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 11,005 | $ 11,970 |
Carrying Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 305,278 | 358,972 |
Carrying Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-marketable equity securities held in other financial institutions | 63,842 | 67,378 |
GNMA repurchase asset | 0 | 24,569 |
Accrued interest and loan fees receivable | 41,231 | 38,136 |
Deposits | 8,374,488 | 7,775,702 |
FHLB advances and other borrowings | 12,213 | 639,230 |
Subordinated indebtedness | 196,825 | 201,765 |
Accrued interest payable | 14,126 | 3,917 |
Carrying Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | 10,790 | 11,275 |
LHFI, net | 7,472,886 | 7,002,861 |
Estimated Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 305,278 | 358,972 |
Estimated Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-marketable equity securities held in other financial institutions | 63,842 | 67,378 |
GNMA repurchase asset | 0 | 24,569 |
Accrued interest and loan fees receivable | 41,231 | 38,136 |
Deposits | 8,358,211 | 7,753,966 |
FHLB advances and other borrowings | 11,679 | 639,103 |
Subordinated indebtedness | 187,369 | 181,624 |
Accrued interest payable | 14,126 | 3,917 |
Estimated Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | 11,005 | 11,970 |
LHFI, net | $ 7,094,772 | $ 6,835,770 |
Mortgage Banking - Mortgage Ban
Mortgage Banking - Mortgage Banking Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Mortgage Banking [Abstract] | ||||
Origination | $ 124 | $ 207 | $ 384 | $ 641 |
Gain on sale of loans held for sale | 757 | 636 | 2,380 | 4,477 |
Originations of MSRs | 225 | 462 | 656 | 1,926 |
Servicing | 915 | 1,446 | 2,840 | 4,306 |
Total gross mortgage revenue | 2,021 | 2,751 | 6,260 | 11,350 |
MSR valuation adjustments, net | (122) | (2,034) | (485) | 2,409 |
Mortgage HFS and pipeline fair value adjustment | (110) | (410) | (27) | (971) |
MSR hedge impact | (897) | (1,236) | (1,673) | (7,267) |
Mortgage banking revenue | $ 892 | (929) | 4,075 | 5,521 |
Mortgage servicing right impairment | $ 2,000 | $ 485 | $ (2,409) |
Mortgage Banking - Activity in
Mortgage Banking - Activity in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Balance at beginning of period | $ 19,086 | $ 20,824 | $ 22,127 | $ 20,824 | $ 16,220 |
Addition of servicing rights | 225 | 462 | 656 | 1,926 | |
Settlement of sale of GNMA MSR | 0 | $ (1,800) | 0 | (1,806) | 0 |
Valuation adjustment, net of amortization | (122) | (2,034) | (485) | 2,409 | |
Balance at end of period | 19,189 | 21,654 | 19,189 | 21,654 | |
BTH | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Addition of servicing rights | $ 0 | $ 1,099 | $ 0 | $ 1,099 |
Mortgage Banking - Narrative (D
Mortgage Banking - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Mortgage Banking [Abstract] | ||||||
Settlement of sale of GNMA MSR | $ 0 | $ 1,800,000 | $ 0 | $ 1,806,000 | $ 0 | |
Annual servicing fee income rate | 0.25% | |||||
Reserve for mortgage loan servicing putback expenses | 146,000 | $ 146,000 | $ 217,000 | |||
Liability to repurchase past due GNMA loans | $ 0 | $ 0 | $ 24,600,000 |
Borrowings - Summary of Borrowe
Borrowings - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument, Redemption [Line Items] | ||
Total FHLB advances and other borrowings | $ 12,213 | $ 639,230 |
FHLB advances | ||
Debt Instrument, Redemption [Line Items] | ||
Total FHLB advances and other borrowings | 6,541 | 6,740 |
GNMA repurchase liability | ||
Debt Instrument, Redemption [Line Items] | ||
Total FHLB advances and other borrowings | 0 | 24,569 |
Subordinated indebtedness, net | ||
Debt Instrument, Redemption [Line Items] | ||
Subordinated indebtedness, net | 196,825 | 201,765 |
FHLB advances | ||
Debt Instrument, Redemption [Line Items] | ||
Total FHLB advances and other borrowings | 0 | 550,000 |
Overnight repurchase agreements with depositors | ||
Debt Instrument, Redemption [Line Items] | ||
Total FHLB advances and other borrowings | 5,672 | 27,921 |
Correspondent short-term borrowings | ||
Debt Instrument, Redemption [Line Items] | ||
Total FHLB advances and other borrowings | $ 0 | $ 30,000 |
Borrowings - Schedule of Subord
Borrowings - Schedule of Subordinated Debt (Details) - Subordinated Debt Excluding Junior Subordinated Debt $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 180,491 |
BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | 37,362 |
Remaining unamortized merger-related fair value adjustment at September 30, 2023 | (38) |
Floating rate subordinated promissory notes due June 2025 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 5,500 |
Floating rate subordinated promissory notes due June 2025 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 1.75% |
Floating rate subordinated promissory notes due June 2025 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due June 2025 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.375% |
Floating rate subordinated promissory notes due December 2023 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 3,000 |
Floating rate subordinated promissory notes due December 2023 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 1.25% |
Floating rate subordinated promissory notes due December 2023 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due December 2023 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.375% |
Floating rate subordinated promissory notes due December 2026 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 6,750 |
Floating rate subordinated promissory notes due December 2026 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 1.75% |
Floating rate subordinated promissory notes due December 2026 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due December 2026 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.375% |
Floating rate subordinated promissory notes due December 2024 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 10,850 |
Floating rate subordinated promissory notes due December 2024 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 1.25% |
Floating rate subordinated promissory notes due December 2024 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due December 2024 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.375% |
Floating rate subordinated promissory notes due December 2027 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 5,200 |
Floating rate subordinated promissory notes due December 2027 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 1.75% |
Floating rate subordinated promissory notes due December 2027 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due December 2027 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.375% |
Floating rate subordinated promissory notes due December 2025 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 3,200 |
Floating rate subordinated promissory notes due December 2025 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 0.50% |
Floating rate subordinated promissory notes due December 2025 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due December 2025 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.125% |
Floating rate subordinated promissory notes due December 2028 | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 1,900 |
Floating rate subordinated promissory notes due December 2028 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 0.75% |
Floating rate subordinated promissory notes due December 2028 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Floating rate subordinated promissory notes due December 2028 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.125% |
Fixed to floating rate subordinated promissory notes due June 2031 | BTH | |
Debt Instrument [Line Items] | |
Interest Rate | 4% |
Subordinated indebtedness, net | $ 1,000 |
Fixed to floating rate subordinated promissory notes due June 2031 | BTH | Prime Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 0.75% |
Fixed to floating rate subordinated promissory notes due June 2031 | BTH | Prime Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 3.875% |
Fixed to floating rate subordinated promissory notes due June 2031 | BTH | Prime Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 6.125% |
Legacy subordinated indebtedness | BTH | |
Debt Instrument [Line Items] | |
Subordinated indebtedness, net | $ 143,129 |
Borrowings - Summary of Terms o
Borrowings - Summary of Terms of Current Debentures (Details) - Subordinated indebtedness, net - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 13, 2023 | Sep. 01, 2023 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | |||
Outstanding Amount | $ 18,043 | ||
Unamortized original issue discount | (1,026) | ||
Unamortized purchase accounting discount | (683) | ||
Total | 16,334 | ||
CTB Statutory Trust I | |||
Debt Instrument [Line Items] | |||
Outstanding Amount | $ 6,702 | ||
Current Rate | 8.37% | ||
CTB Statutory Trust I | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.30% | ||
CTB Statutory Trust I | Maximum | |||
Debt Instrument [Line Items] | |||
Maximum Rate | 12.50% | ||
First Louisiana Statutory Trust I | |||
Debt Instrument [Line Items] | |||
Outstanding Amount | $ 4,124 | ||
Current Rate | 7.47% | ||
First Louisiana Statutory Trust I | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.26161% | 1.80% | |
First Louisiana Statutory Trust I | Maximum | |||
Debt Instrument [Line Items] | |||
Maximum Rate | 16% | ||
BT Holdings Trust I | |||
Debt Instrument [Line Items] | |||
Outstanding Amount | $ 7,217 | ||
Current Rate | 7.30% | ||
BT Holdings Trust I | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.26161% | 1.64% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 799,207 | $ 814,866 |
Fair Values | 352 | 415 |
Interest Rate Swaps | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 366,934 | 352,842 |
Fair Values | 27,991 | 25,482 |
Interest Rate Swaps | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 360,119 | 345,742 |
Fair Values | (27,517) | (25,175) |
Risk Participation Derivative | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 20,000 | 59,738 |
Fair Values | 1 | 0 |
Forward Commitment To Purchase Forward-Settling Mortgage-Backed Securities | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 10,000 | 7,000 |
Fair Values | (153) | (100) |
Forward Commitment To Purchase Treasury Notes | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 23,500 | 31,500 |
Fair Values | (365) | 0 |
Forward Commitments to Sell | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 4,500 | 8,500 |
Fair Values | 53 | 7 |
Interest Rate-Lock Commitments | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 14,154 | 9,544 |
Fair Values | 342 | 201 |
Cash Flow Hedging | Interest Rate Swaps | Derivatives Designated as Cash Flow Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 10,500 | 10,500 |
Fair Values | $ 1,106 | $ 1,043 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Weighted-average Rates Paid and Received (Details) - Interest Rate Swaps | Sep. 30, 2023 | Dec. 31, 2022 |
Cash flow hedges | Paid | ||
Derivative [Line Items] | ||
Weighted-Average Interest Rate | 4.24% | 4.98% |
Cash flow hedges | Received | ||
Derivative [Line Items] | ||
Weighted-Average Interest Rate | 8.25% | 5.72% |
Non-Hedging | Financial Institution | Paid | ||
Derivative [Line Items] | ||
Weighted-Average Interest Rate | 4.77% | 3.72% |
Non-Hedging | Financial Institution | Received | ||
Derivative [Line Items] | ||
Weighted-Average Interest Rate | 7.87% | 5.75% |
Non-Hedging | Customer | Paid | ||
Derivative [Line Items] | ||
Weighted-Average Interest Rate | 7.87% | 5.75% |
Non-Hedging | Customer | Received | ||
Derivative [Line Items] | ||
Weighted-Average Interest Rate | 4.77% | 3.72% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gains and Losses Recognized on Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Amount of loss recognized in mortgage banking revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (loss) gain recognized on derivatives not designated as hedging instruments | $ (1,102) | $ (1,317) | $ (1,613) | $ (3,537) |
Amount of gain recognized in other non-interest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (loss) gain recognized on derivatives not designated as hedging instruments | $ 82 | $ 210 | $ 167 | $ 652 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash collateral on deposit | $ 4 | $ 7.6 |
Stock and Incentive Compensat_3
Stock and Incentive Compensation Plans - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Aug. 01, 2022 shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) category shares | Sep. 30, 2022 USD ($) | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Stock compensation expense | $ 1,335,000 | $ 970,000 | $ 3,886,000 | $ 2,548,000 | |
Common Stock | BTH | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Stock converted (in shares) | shares | 611,676 | ||||
Employee Stock | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Maximum number of common stock available for issuance (in shares) | shares | 1,000,000 | 1,000,000 | |||
Stock repurchase program, discount percentage | 15% | ||||
Offering period | 1 year | ||||
Unrecognized compensation cost | $ 312,000 | $ 312,000 | |||
Unrecognized compensation cost weighted average period for recognition | 8 months 1 day | ||||
Stock compensation expense | 114,000 | 83,000 | $ 314,000 | 235,000 | |
PSU | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Unrecognized compensation cost | 2,800,000 | $ 2,800,000 | |||
Unrecognized compensation cost weighted average period for recognition | 2 years 1 month 6 days | ||||
Target percentage | 100% | ||||
Performance period (in years) | 3 years | ||||
Stock compensation expense | 41,000 | 134,000 | $ 336,000 | 283,000 | |
Expiration period | 3 years | ||||
Number of categories | category | 2 | ||||
PSU | Minimum | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Target percentage | 0% | ||||
PSU | Maximum | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Target percentage | 150% | ||||
Stock Options | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Stock compensation expense | 0 | $ 0 | $ 0 | $ 0 | |
Expiration period | 20 years | ||||
RSAs | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Unrecognized compensation cost | 342,000 | $ 342,000 | |||
Unrecognized compensation cost weighted average period for recognition | 4 months 24 days | ||||
RSAs | Minimum | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Service period in which time-vested awards are earned | 1 year | ||||
RSAs | Maximum | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Service period in which time-vested awards are earned | 7 years | ||||
RSUs | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Unrecognized compensation cost | $ 10,600,000 | $ 10,600,000 | |||
Unrecognized compensation cost weighted average period for recognition | 3 years 9 months 18 days | ||||
RSUs | Minimum | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Service period in which time-vested awards are earned | 1 year | ||||
RSUs | Maximum | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Service period in which time-vested awards are earned | 7 years | ||||
2012 Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Maximum number of common stock available for issuance (in shares) | shares | 33,097 | 33,097 |
Stock and Incentive Compensat_4
Stock and Incentive Compensation Plans - Black-Scholes Option Pricing Model (Details) - Employee Stock - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 1 year | 1 year | 1 year | 1 year |
Dividend yield (in dollars per share) | $ 2.08 | $ 1.52 | $ 1.81 | $ 1.38 |
Risk-free interest rate | 4.94% | 2% | 3.52% | 0.98% |
Expected volatility | 31.12% | 32.56% | 31.81% | 39.75% |
Stock and Incentive Compensat_5
Stock and Incentive Compensation Plans - Compensation Expense (Details) - Employee Stock - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP shares purchased (in shares) | 0 | 0 | 46,213 | 26,089 |
Shares available for issuance under the ESPP (in shares) | 927,698 | 973,911 | 927,698 | 973,911 |
Stock and Incentive Compensat_6
Stock and Incentive Compensation Plans - Share-based Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation expense | $ 1,335 | $ 970 | $ 3,886 | $ 2,548 |
Related tax benefits recognized in net income | 280 | 204 | 816 | 535 |
RSA & RSU | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation expense | 1,180 | 753 | 3,236 | 2,030 |
PSU | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation expense | 41 | 134 | 336 | 283 |
ESPP | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock compensation expense | $ 114 | $ 83 | $ 314 | $ 235 |
Stock and Incentive Compensat_7
Stock and Incentive Compensation Plans - Time-vested Award Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
RSAs | ||
Shares | ||
Nonvested shares, beginning balance (in shares) | 27,391 | 48,048 |
Granted (in shares) | 16,788 | 12,840 |
Vested (in shares) | (17,237) | (22,682) |
Nonvested shares, ending balance (in shares) | 26,942 | 38,206 |
Weighted Average Grant-Date Fair Value | ||
Nonvested shares, beginning balance (in dollars per share) | $ 35.37 | $ 35.27 |
Granted (in dollars per share) | 28.61 | 37.39 |
Vested (in dollars per share) | 34.33 | 35.73 |
Nonvested shares, ending balance (in dollars per share) | $ 31.82 | $ 35.71 |
RSUs | ||
Shares | ||
Nonvested shares, beginning balance (in shares) | 270,390 | 73,977 |
Granted (in shares) | 113,674 | 87,795 |
Vested (in shares) | (53,263) | (23,260) |
Forfeited (in shares) | (10,014) | (1,841) |
Nonvested shares, ending balance (in shares) | 320,787 | 136,671 |
Weighted Average Grant-Date Fair Value | ||
Nonvested shares, beginning balance (in dollars per share) | $ 39.63 | $ 40.64 |
Granted (in dollars per share) | 35.70 | 43.09 |
Vested (in dollars per share) | 41.94 | 40.40 |
Forfeited (in dollars per share) | 43.44 | 43.48 |
Nonvested shares, ending balance (in dollars per share) | $ 37.73 | $ 42.21 |
PSUs | ||
Shares | ||
Nonvested shares, beginning balance (in shares) | 157,367 | 0 |
Granted (in shares) | 43,591 | 27,632 |
Forfeited (in shares) | (3,116) | 0 |
Nonvested shares, ending balance (in shares) | 197,842 | 27,632 |
Weighted Average Grant-Date Fair Value | ||
Nonvested shares, beginning balance (in dollars per share) | $ 29.06 | $ 0 |
Granted (in dollars per share) | 30.69 | 40.85 |
Forfeited (in dollars per share) | 30.69 | 0 |
Nonvested shares, ending balance (in dollars per share) | $ 27.96 | $ 40.85 |
Stock and Incentive Compensat_8
Stock and Incentive Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||||
Outstanding at beginning of period (in shares) | 504,437 | 39,200 | 39,200 | |
BTH options converted to OBNK options (in shares) | 611,676 | |||
Exercised (in shares) | (55,897) | (60,687) | ||
Expired (in shares) | (11,081) | (331) | ||
Outstanding at end of period (in shares) | 437,459 | 589,858 | 504,437 | 39,200 |
Outstanding and exercisable (in shares) | 437,459 | 589,858 | ||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 29.46 | $ 10.73 | $ 10.73 | |
BTH options converted to OBNK options (in dollars per share) | 28.62 | |||
Exercised (in dollars per share) | 17.35 | 19.67 | ||
Expired (in dollars per share) | 33.63 | 37.01 | ||
Outstanding at end of period (in dollars per share) | 30.90 | 28.05 | $ 29.46 | $ 10.73 |
Outstanding and exercisable (in dollars per share) | $ 30.90 | $ 28.05 | ||
Weighted average remaining contractual term (in years) | 3 years 10 months 17 days | 4 years 11 months 15 days | 5 years 1 month 17 days | 2 years 3 months 10 days |
Weighted average remaining contractual term, outstanding and exercisable (in years) | 3 years 10 months 17 days | 4 years 11 months 15 days | ||
Aggregate Intrinsic Value | $ 917 | $ 5,971 | $ 3,736 | $ 1,262 |
Aggregate Intrinsic Value, exercised | 918 | 1,373 | ||
Aggregate Intrinsic Value, outstanding and exercisable | $ 917 | $ 5,971 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ 997,859 | $ 992,587 | $ 949,943 | $ 646,373 | $ 676,865 | $ 730,211 | $ 949,943 | $ 730,211 |
Net change | (19,850) | (14,398) | 21,394 | (59,254) | (50,089) | (71,619) | (12,854) | (180,962) |
Ending balance | 998,945 | 997,859 | 992,587 | 907,024 | 646,373 | 676,865 | 998,945 | 907,024 |
Unrealized (Loss) Gain on AFS Securities | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (160,700) | 5,809 | (160,700) | 5,809 | ||||
Net change | (12,904) | (181,919) | ||||||
Ending balance | (173,604) | (176,110) | (173,604) | (176,110) | ||||
Unrealized Gain (Loss) on Cash Flow Hedges | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | 825 | (80) | 825 | (80) | ||||
Net change | 50 | 957 | ||||||
Ending balance | 875 | 877 | 875 | 877 | ||||
Accumulated Other Comprehensive (Loss) Income | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance | (152,879) | (138,481) | (159,875) | (115,979) | (65,890) | 5,729 | (159,875) | 5,729 |
Net change | (19,850) | (14,398) | 21,394 | (59,254) | (50,089) | (71,619) | ||
Ending balance | $ (172,729) | $ (152,879) | $ (138,481) | $ (175,233) | $ (115,979) | $ (65,890) | $ (172,729) | $ (175,233) |
Capital and Regulatory Matter_2
Capital and Regulatory Matters - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Resale Agreement Counterparty [Line Items] | ||||
Transition regulatory capital amount | $ 3,200,000 | $ 5,100,000 | ||
Purchase price | $ 50,000,000 | |||
Stock buyback program, period | 3 years | |||
Repurchase of stock (in shares) | 0 | 0 | ||
Origin Bank | Origin Bank | ||||
Resale Agreement Counterparty [Line Items] | ||||
Aggregate dividends without prior regulatory approval | $ 141,400,000 |
Capital and Regulatory Matter_3
Capital and Regulatory Matters - Actual Capital Amounts and Ratios (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Origin Bancorp, Inc. | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 988,951 | $ 906,859 |
Actual, ratio | 0.1146 | 0.1093 |
Minimum capital required, amount | $ 604,324 | $ 580,857 |
Minimum capital required, ratio | 7% | 7% |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 1,004,742 | $ 922,584 |
Actual, ratio | 0.1164 | 0.1112 |
Minimum capital required, amount | $ 733,823 | $ 705,327 |
Minimum capital required, ratio | 0.0850 | 0.0850 |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 1,261,080 | $ 1,180,665 |
Actual, ratio | 0.1461 | 0.1423 |
Minimum capital required, amount | $ 906,488 | $ 871,290 |
Minimum capital required, ratio | 0.1050 | 0.1050 |
Leverage Ratio | ||
Actual, amount | $ 1,004,742 | $ 922,584 |
Actual, ratio | 0.1000 | 0.0966 |
Minimum capital required, amount | $ 402,029 | $ 381,955 |
Minimum capital required, ratio | 0.0400 | 0.0400 |
Origin Bank | Origin Bank | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 1,034,519 | $ 952,579 |
Actual, ratio | 0.1202 | 0.1150 |
Minimum capital required, amount | $ 602,430 | $ 579,775 |
Minimum capital required, ratio | 7% | 7% |
Well capitalized, amount | $ 559,399 | $ 538,363 |
Well capitalized, ratio | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 1,034,519 | $ 952,579 |
Actual, ratio | 0.1202 | 0.1150 |
Minimum capital required, amount | $ 731,522 | $ 704,013 |
Minimum capital required, ratio | 0.0850 | 0.0850 |
Well capitalized, amount | $ 688,492 | $ 662,600 |
Well capitalized, ratio | 0.0800 | 0.0800 |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 1,201,282 | $ 1,109,257 |
Actual, ratio | 0.1396 | 0.1339 |
Minimum capital required, amount | $ 903,647 | $ 869,661 |
Minimum capital required, ratio | 0.1050 | 0.1050 |
Well capitalized, amount | $ 860,616 | $ 828,249 |
Well capitalized, ratio | 0.1000 | 0.1000 |
Leverage Ratio | ||
Actual, amount | $ 1,034,519 | $ 952,579 |
Actual, ratio | 0.1033 | 0.0994 |
Minimum capital required, amount | $ 400,778 | $ 383,359 |
Minimum capital required, ratio | 0.0400 | 0.0400 |
Well capitalized, amount | $ 500,973 | $ 479,198 |
Well capitalized, ratio | 0.0500 | 0.0500 |
Commitments and Contingencies -
Commitments and Contingencies - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Less than One Year | $ 1,024,231 | $ 1,180,666 |
One-Three Years | 968,323 | 990,476 |
Three-Five Years | 480,726 | 553,069 |
Greater than Five Years | 101,953 | 96,783 |
Off-balance sheet financial instrument | 2,575,233 | 2,820,994 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Less than One Year | 921,782 | 1,093,744 |
One-Three Years | 961,365 | 988,212 |
Three-Five Years | 447,769 | 553,069 |
Greater than Five Years | 101,953 | 96,783 |
Off-balance sheet financial instrument | 2,432,869 | 2,731,808 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Less than One Year | 102,449 | 86,922 |
One-Three Years | 6,958 | 2,264 |
Three-Five Years | 32,957 | 0 |
Greater than Five Years | 0 | 0 |
Off-balance sheet financial instrument | 142,364 | 89,186 |
Unconditional cancellable commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instrument | $ 723,300 | $ 594,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) letter_of_credit | Dec. 31, 2022 USD ($) letter_of_credit | |
Lending-related Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Reserve for lending related commitments | $ 4,700 | $ 4,600 |
BTH | Retention Bonuses And Guaranteed Minimum Incentives | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contingent liability | 1,800 | |
BTH | Retention Bonuses | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contingent liability | 846 | |
Contingent consideration, due in next fiscal year | $ 423 | |
Contingent consideration, due in next fiscal year, percentage | 50% | |
Contingent consideration, due in year two | $ 423 | |
Contingent consideration, due in year two, percentage | 50% | |
BTH | Guaranteed Minimum Incentives | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contingent liability | $ 950 | |
Contingent consideration, due in next fiscal year, percentage | 50% | |
Contingent consideration, due in year two, percentage | 50% | |
Lincoln Agency, LLC. and Pulley-White Insurance Agency, Inc. | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contingent liability | $ 1,500 | |
Contingent consideration, due in next fiscal year, percentage | 30% | |
Contingent consideration, due in year two, percentage | 70% | |
Revenue growth objectives, term | 3 years | |
Letter of credit | FHLB | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of instruments | letter_of_credit | 29 | 28 |
Maximum borrowing capacity | $ 584,100 | $ 277,400 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | Aug. 01, 2022 USD ($) shares | Jul. 29, 2022 USD ($) $ / shares | Sep. 30, 2023 USD ($) banking_center | Dec. 31, 2022 USD ($) | Jul. 31, 2022 location |
Business Acquisition [Line Items] | |||||
Goodwill | $ 128,679,000 | $ 128,679,000 | |||
Assets | $ 9,840,000,000 | 9,733,303,000 | 9,686,067,000 | ||
Loans | 6,770,000,000 | 7,472,886,000 | 7,002,861,000 | ||
Deposits | $ 7,990,000,000 | $ 8,374,488,000 | $ 7,775,702,000 | ||
Number of banking centers | banking_center | 60 | ||||
Common Stock | |||||
Business Acquisition [Line Items] | |||||
Stock price (in dollars per share) | $ / shares | $ 43.07 | ||||
BTH | |||||
Business Acquisition [Line Items] | |||||
Percentage of interests acquired | 100% | ||||
Consideration transaction value | $ 307,800,000 | ||||
Goodwill | $ 94,500,000 | $ 94,526,000 | |||
Goodwill, tax deductible amount | $ 0 | ||||
Number of banking centers | location | 13 | ||||
BTH | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued (in shares) | shares | 6,794,910 | ||||
Stock converted (in shares) | shares | 611,676 |
Business Combinations - Fair Va
Business Combinations - Fair Values of Assets Acquired and Liabilities Assumed from Acquisition of BTH (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Aug. 01, 2022 |
Liabilities Assumed: | |||
Goodwill | $ 128,679 | $ 128,679 | |
BTH | |||
Assets Acquired: | |||
Cash and cash equivalents | 69,953 | ||
Investment securities | 456,808 | ||
Loans acquired | 1,239,532 | ||
Allowance for credit losses on loans | (5,527) | ||
Loans receivable, net | 1,234,005 | ||
Premises and equipment | 17,825 | ||
Non-marketable equity securities held in other financial institutions | 5,873 | ||
Core deposit intangible | 38,356 | ||
Other assets | 23,778 | ||
Total assets acquired | 1,846,598 | ||
Liabilities Assumed: | |||
Noninterest-bearing deposits | 398,089 | ||
Interest-bearing deposits | 865,864 | ||
Time deposits | 302,506 | ||
Total deposits | 1,566,459 | ||
Securities sold under agreements to repurchase | 10,133 | ||
Subordinated indebtedness, net | 44,074 | ||
Accrued expenses and other liabilities | 12,674 | ||
Total liabilities assumed | 1,633,340 | ||
Net assets acquired | 213,258 | ||
Purchase price | 307,784 | ||
Goodwill | $ 94,526 | $ 94,500 |
Business Combinations - Purchas
Business Combinations - Purchased Credit Deteriorated ("PCD") Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Dec. 31, 2022 | Aug. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||||
PCD allowance for credit loss at merger | $ 5,527 | $ 5,527 | ||||
Non-credit related (premium)/discount | $ 179 | $ 2,200 | $ 2,067 | 1,187 | ||
Fair value of PCD loans | $ 36,800 | $ 48,100 | ||||
BTH | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | $ 52,212 | |||||
PCD allowance for credit loss at merger | 5,527 | |||||
Non-credit related (premium)/discount | (442) | |||||
Fair value of PCD loans | 47,127 | |||||
Real estate | Construction/land/land development | ||||||
Business Acquisition [Line Items] | ||||||
PCD allowance for credit loss at merger | 0 | 0 | ||||
Real estate | BTH | Commercial Real Estate | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | 10,731 | |||||
PCD allowance for credit loss at merger | 1 | |||||
Non-credit related (premium)/discount | (277) | |||||
Fair value of PCD loans | 11,007 | |||||
Real estate | BTH | Construction/land/land development | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | 1,315 | |||||
PCD allowance for credit loss at merger | 0 | |||||
Non-credit related (premium)/discount | (92) | |||||
Fair value of PCD loans | 1,407 | |||||
Real estate | BTH | Residential Real Estate | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | 2,880 | |||||
PCD allowance for credit loss at merger | 0 | |||||
Non-credit related (premium)/discount | 3 | |||||
Fair value of PCD loans | 2,877 | |||||
Commercial and Industrial | ||||||
Business Acquisition [Line Items] | ||||||
PCD allowance for credit loss at merger | 5,525 | 5,525 | ||||
Commercial and Industrial | BTH | Commercial and Industrial | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | 37,117 | |||||
PCD allowance for credit loss at merger | 5,525 | |||||
Non-credit related (premium)/discount | (77) | |||||
Fair value of PCD loans | 31,669 | |||||
Mortgage warehouse lines of credit | ||||||
Business Acquisition [Line Items] | ||||||
PCD allowance for credit loss at merger | 0 | 0 | ||||
Mortgage warehouse lines of credit | BTH | Mortgage warehouse lines of credit | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | 0 | |||||
PCD allowance for credit loss at merger | 0 | |||||
Non-credit related (premium)/discount | 0 | |||||
Fair value of PCD loans | 0 | |||||
Consumer | ||||||
Business Acquisition [Line Items] | ||||||
PCD allowance for credit loss at merger | $ 1 | $ 1 | ||||
Consumer | BTH | Consumer | ||||||
Business Acquisition [Line Items] | ||||||
Unpaid principal balance | 169 | |||||
PCD allowance for credit loss at merger | 1 | |||||
Non-credit related (premium)/discount | 1 | |||||
Fair value of PCD loans | $ 167 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - BTH $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Business Acquisition, Pro Forma Information [Abstract] | |
Net interest income | $ 243,932 |
Noninterest income | 49,425 |
Net income | $ 76,286 |
Pro-forma earnings per share, basic (in dollars per share) | $ / shares | $ 2.50 |
Pro-forma earnings per share, diluted (in dollars per share) | $ / shares | $ 2.48 |
Weighted average shares outstanding (in shares) | shares | 32,092,071 |