Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36722 | ||
Entity Registrant Name | TRIUMPH FINANCIAL, INC. | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 20-0477066 | ||
Entity Address, Address Line One | 12700 Park Central Drive, Suite 1700 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75251 | ||
City Area Code | 214) | ||
Local Phone Number | 365-6900 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,317,529,000 | ||
Entity Common Stock, Shares Outstanding | 23,329,596 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders, which will be filed within 120 days after December 31, 2023, are incorporated by reference into Part III of this Report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001539638 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Trading Symbol | TFIN | ||
Security Exchange Name | NASDAQ | ||
Series C Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | TFINP | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Crowe LLP |
Auditor Location | Dallas, TX |
Auditor Firm ID | 173 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 93,072 | $ 133,889 |
Interest-bearing deposits with other banks | 193,563 | 274,293 |
Total cash and cash equivalents | 286,635 | 408,182 |
Securities - equity investments | 4,488 | 5,191 |
Securities - available for sale | 299,644 | 254,504 |
Securities - held to maturity, net of allowance for credit losses of $3,190 and $2,444, respectively, fair value $4,015 and $5,476, respectively | 2,977 | 4,077 |
Loans held for sale | 1,236 | 5,641 |
Loans, net of allowance for credit losses of $35,219 and $42,807, respectively | 4,127,881 | 4,077,484 |
Federal Home Loan Bank and other restricted stock, at cost | 14,278 | 6,252 |
Premises and equipment, net | 113,457 | 103,339 |
Other real estate owned, net | 37 | 0 |
Goodwill | 233,709 | 233,709 |
Intangible assets, net | 23,646 | 32,058 |
Bank-owned life insurance | 41,946 | 41,493 |
Deferred tax asset, net | 8,800 | 16,473 |
Other assets | 188,600 | 145,380 |
Total assets | 5,347,334 | 5,333,783 |
Deposits | ||
Noninterest-bearing | 1,632,022 | 1,756,680 |
Interest-bearing | 2,345,456 | 2,414,656 |
Total deposits | 3,977,478 | 4,171,336 |
Customer repurchase agreements | 0 | 340 |
Federal Home Loan Bank advances | 255,000 | 30,000 |
Subordinated notes | 108,678 | 107,800 |
Junior subordinated debentures | 41,740 | 41,158 |
Other liabilities | 100,038 | 94,178 |
Total liabilities | 4,482,934 | 4,444,812 |
Commitments and contingencies - See Notes 14 and 15 | ||
Stockholders' equity - See Note 19 | ||
Preferred stock | 45,000 | 45,000 |
Common stock, 23,302,414 and 24,053,585 shares outstanding, respectively | 290 | 283 |
Additional paid-in-capital | 550,743 | 534,790 |
Treasury stock, at cost | (265,038) | (182,658) |
Retained earnings | 536,331 | 498,456 |
Accumulated other comprehensive income | (2,926) | (6,900) |
Total stockholders’ equity | 864,400 | 888,971 |
Total liabilities and stockholders' equity | $ 5,347,334 | $ 5,333,783 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||||
Securities - held to maturity, allowance for credit losses | $ 3,190 | $ 2,444 | $ 2,082 | $ 2,026 |
Securities - held to maturity, fair value | 4,015 | 5,476 | ||
Loans, allowance for credit losses | $ 35,219 | $ 42,807 | ||
Common stock, outstanding (in shares) | 23,302,414 | 24,053,585 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income: | |||
Loans, including fees | $ 228,428 | $ 181,188 | $ 183,555 |
Factored receivables, including fees | 160,607 | 223,193 | 197,835 |
Securities | 19,795 | 8,187 | 5,401 |
FHLB and other restricted stock | 1,030 | 258 | 156 |
Cash deposits | 12,561 | 6,413 | 608 |
Total interest and dividend income | 422,421 | 419,239 | 387,555 |
Interest expense: | |||
Deposits | 34,318 | 10,038 | 9,697 |
Subordinated notes | 5,253 | 5,212 | 6,445 |
Junior subordinated debentures | 4,449 | 2,662 | 1,775 |
Other borrowings | 10,322 | 835 | 508 |
Total interest expense | 54,342 | 18,747 | 18,425 |
Net interest income (expense) | 368,079 | 400,492 | 369,130 |
Credit loss expense (benefit) | 12,203 | 6,925 | (8,830) |
Net interest income (expense) after credit loss expense | 355,876 | 393,567 | 377,960 |
Noninterest income: | |||
Net OREO gains (losses) and valuation adjustments | 0 | (133) | (347) |
Net gains (losses) on sale or call of securities | 102 | 2,512 | 5 |
Net gains (losses) on sale of loans | 119 | 18,228 | 3,105 |
Insurance commissions | 5,028 | 5,145 | 5,127 |
Other | (503) | 19,100 | 12,448 |
Total noninterest income | 50,173 | 84,068 | 54,501 |
Noninterest expense: | |||
Salaries and employee benefits | 210,607 | 201,487 | 173,951 |
Occupancy, furniture and equipment | 28,885 | 26,774 | 24,473 |
FDIC insurance and other regulatory assessments | 2,624 | 1,815 | 2,251 |
Professional fees | 13,177 | 15,644 | 12,592 |
Amortization of intangible assets | 11,454 | 11,922 | 10,876 |
Advertising and promotion | 6,740 | 7,760 | 5,298 |
Communications and technology | 45,679 | 42,083 | 28,498 |
Other | 34,068 | 33,146 | 29,568 |
Total noninterest expense | 353,234 | 340,631 | 287,507 |
Net income (loss) before income tax expense | 52,815 | 137,004 | 144,954 |
Income tax expense | 11,734 | 34,693 | 31,980 |
Net income | 41,081 | 102,311 | 112,974 |
Dividends on preferred stock | (3,206) | (3,206) | (3,206) |
Net income available to common stockholders | $ 37,875 | $ 99,105 | $ 109,768 |
Earnings per common share | |||
Basic (in dollars per share) | $ 1.63 | $ 4.06 | $ 4.44 |
Diluted (in dollars per share) | $ 1.61 | $ 3.96 | $ 4.35 |
Service charges on deposits | |||
Noninterest income: | |||
Revenue | $ 7,001 | $ 6,844 | $ 7,724 |
Card income | |||
Noninterest income: | |||
Revenue | 8,181 | 8,150 | 8,811 |
Fee income | |||
Noninterest income: | |||
Revenue | $ 30,245 | $ 24,222 | $ 17,628 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 41,081 | $ 102,311 | $ 112,974 |
Unrealized gains (losses) on securities: | |||
Unrealized holding gains (losses) arising during the period | 5,208 | (10,865) | (2,424) |
Tax effect | (1,155) | 2,512 | 577 |
Unrealized holding gains (losses) arising during the period, net of taxes | 4,053 | (8,353) | (1,847) |
Reclassification of amount realized through sale or call of securities | (102) | (2,512) | (5) |
Tax effect | 23 | 636 | 1 |
Reclassification of amount realized through sale or call of securities, net of taxes | (79) | (1,876) | (4) |
Change in unrealized gains (losses) on securities, net of tax | 3,974 | (10,229) | (1,851) |
Unrealized gains (losses) on derivative financial instruments: | |||
Unrealized holding gains (losses) arising during the period | 0 | 3,152 | 5,255 |
Tax effect | 0 | (754) | (1,260) |
Unrealized holding gains (losses) arising during the period, net of taxes | 0 | 2,398 | 3,995 |
Reclassification of amount of (gains) losses recognized into income | 0 | (9,316) | 93 |
Tax effect | 0 | 2,213 | (22) |
Reclassification of amount of (gains) losses recognized into income, net of taxes | 0 | (7,103) | 71 |
Change in unrealized gains (losses) on derivative financial instruments | 0 | (4,705) | 4,066 |
Total other comprehensive income (loss) | 3,974 | (14,934) | 2,215 |
Comprehensive income | $ 45,055 | $ 87,377 | $ 115,189 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2020 | $ 726,781 | $ 45,000 | $ 280 | $ 489,151 | $ (103,052) | $ 289,583 | $ 5,819 |
Beginning balance, common stock (in shares) at Dec. 31, 2020 | 24,868,218 | ||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2020 | 3,083,503 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 241,014 | ||||||
Issuance of restricted stock awards | 0 | $ 2 | (2) | ||||
Stock based compensation | 20,315 | 20,315 | |||||
Forfeiture of restricted stock awards (in shares) | 5,129 | 5,129 | |||||
Forfeiture of restricted stock awards | 0 | 450 | $ (450) | ||||
Stock option exercises, net (in shares) | 59,844 | ||||||
Stock option exercises, net | $ 577 | $ 1 | 576 | ||||
Issuance of common stock pursuant to the employee stock purchase plan (in shares) | 9,101 | 9,101 | |||||
Issuance of common stock pursuant to the employee stock purchase plan | $ 449 | 449 | |||||
Purchase of treasury stock (in shares) | (14,169) | (14,169) | |||||
Purchase of treasury stock | (1,241) | $ (1,241) | |||||
Preferred stock dividends | (3,206) | (3,206) | |||||
Net income | 112,974 | 112,974 | |||||
Other comprehensive income (loss) | 2,215 | 2,215 | |||||
Ending Balance at Dec. 31, 2021 | 858,864 | 45,000 | $ 283 | 510,939 | $ (104,743) | 399,351 | 8,034 |
Ending balance, common stock (in shares) at Dec. 31, 2021 | 25,158,879 | ||||||
Ending balance, treasury stock (in shares) at Dec. 31, 2021 | 3,102,801 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 12,471 | ||||||
Vesting of performance stock units (in shares) | 20,996 | ||||||
Stock based compensation | 21,176 | 21,176 | |||||
Forfeiture of restricted stock awards (in shares) | 19,186 | 19,186 | |||||
Forfeiture of restricted stock awards | 0 | 1,201 | $ (1,201) | ||||
Stock option exercises, net (in shares) | 2,053 | ||||||
Stock option exercises, net | $ (74) | (74) | |||||
Issuance of common stock pursuant to the employee stock purchase plan (in shares) | 24,516 | 24,516 | |||||
Issuance of common stock pursuant to the employee stock purchase plan | $ 1,548 | 1,548 | |||||
Purchase of treasury stock (in shares) | (1,146,144) | (1,146,144) | |||||
Purchase of treasury stock | (76,714) | $ (76,714) | |||||
Preferred stock dividends | (3,206) | (3,206) | |||||
Net income | 102,311 | 102,311 | |||||
Other comprehensive income (loss) | (14,934) | (14,934) | |||||
Ending Balance at Dec. 31, 2022 | $ 888,971 | 45,000 | $ 283 | 534,790 | $ (182,658) | 498,456 | (6,900) |
Ending balance, common stock (in shares) at Dec. 31, 2022 | 24,053,585 | 24,053,585 | |||||
Ending balance, treasury stock (in shares) at Dec. 31, 2022 | 4,268,131 | 4,268,131 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of restricted stock awards (in shares) | 13,374 | ||||||
Vesting of performance stock units (in shares) | 600,620 | ||||||
Vesting of restricted stock and performance stock units | $ 0 | $ 7 | (7) | ||||
Stock based compensation | 13,228 | 13,228 | |||||
Forfeiture of restricted stock awards (in shares) | 13,306 | 13,306 | |||||
Forfeiture of restricted stock awards | 0 | 757 | $ (757) | ||||
Stock option exercises, net (in shares) | 12,636 | ||||||
Stock option exercises, net | $ 144 | 144 | |||||
Issuance of common stock pursuant to the employee stock purchase plan (in shares) | 37,909 | 37,909 | |||||
Issuance of common stock pursuant to the employee stock purchase plan | $ 1,831 | 1,831 | |||||
Purchase of treasury stock (in shares) | (1,402,404) | (1,402,404) | |||||
Purchase of treasury stock | (81,623) | $ (81,623) | |||||
Preferred stock dividends | (3,206) | (3,206) | |||||
Net income | 41,081 | 41,081 | |||||
Other comprehensive income (loss) | 3,974 | 3,974 | |||||
Ending Balance at Dec. 31, 2023 | $ 864,400 | $ 45,000 | $ 290 | $ 550,743 | $ (265,038) | $ 536,331 | $ (2,926) |
Ending balance, common stock (in shares) at Dec. 31, 2023 | 23,302,414 | 23,302,414 | |||||
Ending balance, treasury stock (in shares) at Dec. 31, 2023 | 5,683,841 | 5,683,841 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 41,081 | $ 102,311 | $ 112,974 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 13,801 | 13,302 | 12,037 |
Net accretion on loans | (5,242) | (8,643) | (9,289) |
Amortization of subordinated notes issuance costs | 878 | 843 | 1,224 |
Amortization of junior subordinated debentures | 582 | 556 | 530 |
Net amortization on securities | (844) | (882) | (992) |
Amortization of intangible assets | 11,454 | 11,922 | 10,876 |
Deferred taxes, net | 6,539 | (1,779) | (5,832) |
Credit loss expense (benefit) | 12,203 | 6,925 | (8,830) |
Stock based compensation | 13,228 | 21,176 | 20,315 |
Net (gains) losses on sale or call of debt securities | (102) | (2,512) | (5) |
Net (gains) losses on equity securities | (80) | (9,850) | 322 |
Net OREO (gains) losses and valuation adjustments | 0 | 133 | 347 |
Origination of loans held for sale | (5,273) | (12,024) | (37,542) |
Purchases of loans held for sale | 0 | (14,069) | (21,746) |
Proceeds from sale of loans originated or purchased for sale | 4,134 | 26,544 | 60,037 |
Net (gains) losses on sale of loans | (119) | (18,228) | (3,105) |
Net change in operating leases | (278) | 190 | 2,242 |
(Increase) decrease in other assets | (45,117) | (35,176) | (8,684) |
Increase (decrease) in other liabilities | (3,645) | (6,252) | 12,080 |
Net cash provided by (used in) operating activities | 43,200 | 74,487 | 136,959 |
Cash flows from investing activities: | |||
Purchases of securities available for sale | (72,041) | (140,774) | (58,787) |
Proceeds from sales of securities available for sale | 15,996 | 40,163 | 0 |
Proceeds from maturities, calls, and pay downs of securities available for sale | 28,780 | 26,339 | 99,152 |
Proceeds from maturities, calls, and pay downs of securities held to maturity | 529 | 679 | 1,003 |
Proceeds from sales of equity securities | 783 | 0 | 0 |
Purchases of loans held for investment | (18,842) | (147,809) | (94,314) |
Proceeds from sale of loans | 59,196 | 232,842 | 87,813 |
Net change in loans | (92,109) | 581,599 | 153,946 |
Purchases of premises and equipment, net | (23,919) | (10,912) | (14,362) |
Net proceeds from sale of OREO | 0 | 438 | 1,253 |
(Purchases) redemptions of FHLB and other restricted stock, net | (8,026) | 3,894 | (3,395) |
Proceeds from BOLI | 0 | 0 | 2,273 |
Acquired intangible assets | (3,042) | 0 | 0 |
Net cash (paid for) received in acquisitions | 0 | 0 | (96,926) |
Proceeds from sale of disposal group | 0 | 85,923 | 0 |
Net cash provided by (used in) investing activities | (112,695) | 672,382 | 77,656 |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | (193,858) | (464,512) | (69,921) |
Increase (decrease) in customer repurchase agreements | (340) | (1,763) | (996) |
Increase (decrease) in Federal Home Loan Bank advances | 225,000 | (150,000) | 75,000 |
Proceeds from other borrowings, net | 0 | 0 | 294,854 |
Repayment of other borrowings | 0 | (27,144) | (441,346) |
Preferred stock dividends | (3,206) | (3,206) | (3,206) |
Stock option exercises, net | 144 | 577 | |
Stock option exercises, net | (74) | ||
Proceeds from employee stock purchase plan common stock issuance | 1,831 | 1,548 | 449 |
Purchase of treasury stock, net | (81,623) | (76,714) | (1,241) |
Net cash provided by (used in) financing activities | (52,052) | (721,865) | (145,830) |
Net increase (decrease) in cash and cash equivalents | (121,547) | 25,004 | 68,785 |
Cash and cash equivalents at beginning of period | 408,182 | 383,178 | 314,393 |
Cash and cash equivalents at end of period | 286,635 | 408,182 | 383,178 |
Supplemental cash flow information: | |||
Interest paid | 48,283 | 16,328 | 18,950 |
Income taxes paid, net | 14,141 | 47,215 | 40,004 |
Cash paid for operating lease liabilities | 5,573 | 4,052 | 2,296 |
Supplemental noncash disclosures: | |||
Loans transferred to OREO | 37 | 47 | 692 |
Loans held for investment transferred to loans held for sale | 53,590 | 229,105 | 83,975 |
Assets transferred to assets held for sale | 0 | 80,819 | 0 |
Deposits transferred to deposits held for sale | 0 | 10,434 | 0 |
Lease liabilities arising from obtaining right-of-use assets | 3,507 | 5,267 | 19,571 |
Securities available for sale purchased, not settled | 11,998 | 7,960 | 0 |
Non-cash consideration received from sale of loan portfolio or disposal group | 0 | 5,529 | 0 |
Indemnification Asset | |||
Supplemental noncash disclosures: | |||
Indemnification reduction | $ 0 | $ 0 | $ 35,633 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Triumph Financial, Inc. (collectively with its subsidiaries, “Triumph Financial”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Triumph Financial Services LLC ("Triumph Financial Services"), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB. On December 1, 2022 we completed an extensive marketing rebranding effort, including a change of the company name from Triumph Bancorp, Inc. to Triumph Financial, Inc. and a change of our factoring subsidiary's company name from Triumph Business Capital LLC to Triumph Financial Services LLC ("Triumph Financial Services"). Said rebranding efforts had no impact to the composition of legal entities, financial reporting, employee roles, management structure, or work activities and expectations. See Note 2 – Acquisitions and Divestitures for additional information pertaining to the TPF sale and the impact of the transaction on the Company’s consolidated financial statements. Principles of Consolidation and Basis of Presentation The Company consolidates subsidiaries in which it holds, directly or indirectly, a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under U.S. generally accepted accounting principles (“GAAP”). Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has at least a majority of the voting interest. Variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. In consolidation, all significant intercompany accounts and transactions are eliminated. Investments in unconsolidated entities are accounted for using the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions. Investments that do not meet the criteria for equity method accounting are accounted for using the cost method of accounting. The accounting and reporting policies of the Company and its subsidiaries conform to GAAP and general practice within the banking industry. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company uses the accrual basis of accounting for financial reporting purposes. Use of Estimates To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, other short-term investments and federal funds sold. All highly liquid investments with an initial maturity of less than 90 days are considered to be cash equivalents. Certain items, including loan and deposit transactions, customer repurchase agreements, and FHLB advances and repayments, are presented net in the statement of cash flows. Debt Securities The Company determines the classification of debt securities at the time of purchase. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Debt securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity using the interest method, except for premiums on callable debt securities, which are amortized to their earliest call date. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest in other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2023, 2022 and 2021. Allowance for Credit Losses – Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in such a situation. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. Allowance for Credit Losses – Held to Maturity Securities The allowance for credit losses on held to maturity securities is estimated on a collective basis by major security type. At December 31, 2023 and 2022, the Company’s held to maturity securities consisted of investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call. Accrued interest receivable is excluded from the estimate of credit losses. Equity Securities Equity securities with readily determinable fair values are recorded at fair value, with realized and unrealized gains and losses included in earnings. Equity securities without readily determinable fair values are recorded at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Loans Held for Sale The Company elects the fair value option for recording 1-4 family residential mortgage loans and commercial loans held for sale. The fair value of loans held for sale is determined based on outstanding commitments from investors to purchase such loans or prevailing market rates. Increases or decreases in the fair value of loans held for sale, if any, are charged to earnings and are recorded in noninterest income in the consolidated statements of income. Gains and losses on sales of loans are based on the difference between the final selling price and the carrying value of the related loan sold. Mortgage loans held for sale are generally sold with servicing rights released. Management occasionally transfers loans held for investment to loans held for sale. Gains or losses on the transfer of loans to loans held for sale are recorded in noninterest income in the consolidated statements of income unless such loans have experienced a decline in fair value due to credit quality concerns. For such transfers experiencing a decline in fair value due to credit quality, the Company first applies its charge-off policy which requires recognizing the confirmed loss via a charge-off against the allowance for credit losses which is measured as the excess of the loan's amortized cost basis over the loan's fair value. The charge-off is reflected as a write-down of the loan resulting in a new amortized cost basis. To the extent that the loan’s fair value loss has not already been provided for in the allowance for credit losses, an additional credit loss expense is made to provide sufficient allowance to absorb the charge-off. If the allowance for credit losses amount on the transferred loan at the transfer date to the held for sale category exceeds the amount of the charge-off, any remaining excess allowance for credit loss is reversed into earnings through credit loss expense. After the write-down is taken, the loans is transferred from held to investment to held for sale at its new amortized cost basis which approximates fair value. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost basis, which is the unpaid principal balance outstanding, net of unearned income, deferred loan fees and costs, premiums and discounts associated with acquisition date fair value adjustments on acquired loans, and any direct principal charge-offs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the remaining life of the loan without anticipating prepayments. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income on loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection, or if full collection of interest or principal becomes uncertain. Consumer loans are typically charged off no later than 120 days past due. All interest accrued but not received for a loan placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Factored Receivables The Company purchases invoices from its factoring clients in schedules or batches. To a much lesser extent, the Company will also make short-term advances to its clients on transportation contracts for upcoming loads. Cash is advanced to the client to the extent of the applicable advance rate, less fees, as set forth in the individual factoring agreements. The face value of the invoices purchased or amount advanced is recorded by the Company as factored receivables, and the unadvanced portions of the invoices purchased, less fees, are considered client reserves. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits in the consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred and recognized over the weighted average collection period for each client. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include wire transfer fees, carrier payment fees, fuel advance fees, and other similar fees, are reported by the Company as non-interest income. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various 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 a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income or expense on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Credit Losses – Loans Under the current expected credit loss model, the allowance for credit losses on loans is a valuation allowance estimated at each balance sheet date in accordance with US GAAP that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL. Expected credit losses are reflected in the allowance for credit losses through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company’s methodologies for estimating the ACL consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company’s methodologies revert back to historical loss information on a straight-line basis over eight quarters when it can no longer develop reasonable and supportable forecasts. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Commercial Real Estate — This category of loans consists of the following loan types: Non-farm Non-residential — This category includes real estate loans for a variety of commercial property types and purposes, including owner occupied commercial real estate loans primarily secured by commercial office or industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. Repayment terms vary considerably, interest rates are fixed or variable, and are structured for full, partial, or no amortization of principal. This category also includes investment real estate loans that are primarily secured by office and industrial buildings, warehouses, small retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Multi-family residential — Investment real estate loans are primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Construction, land development, land —This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third-party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. 1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans. Farmland — These loans are principally loans to purchase farmland. Commercial — Commercial loans are loans for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, and other business loans for working capital and operational purposes. Commercial loans are generally secured by accounts receivable, inventory and other business assets. Agriculture — These are commercial loans made principally to finance agricultural operations. Equipment — Equipment finance loans are commercial loans primarily secured by new or used revenue producing, essential-use equipment from major manufacturers that is movable, may be used in more than one type of business, and generally has broad resale markets. Core markets include transportation, construction, and waste. Loan terms do not exceed the economic life of the equipment and typically are 60 months or less . Asset-based Lending — These loans are originated to borrowers to support general working capital needs. The asset-based loan structure involves advances of loan proceeds against a borrowing base which typically consists of accounts receivable, identified readily marketable inventory, or other collateral of the borrower. The maximum amount a customer may borrow at any time is fixed as a percentage of the borrowing base outstanding. Liquid Credit — Broadly syndicated leveraged loans collateralized by a variety of collateral types. Factored Receivables — The Company operates as a factor by purchasing accounts receivable from its clients, then collecting the receivable from the account debtor. The Company’s smaller factoring relationships are typically structured as “non-recourse” relationships ( i.e. , the Company retains the credit risk associated with the ability of the account debtor on a purchased invoice to ultimately make payment) and the Company’s larger factoring relationships are typically structured as “recourse” relationships ( i.e. , the Company’s client agrees to repurchase any invoices for which payment is not ultimately received from the account debtor). Advances initially made to the client to acquire the receivables are typically at a discount to the invoice value. The discount balance is held in client reserves, net of the Company’s compensation. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Consumer — Loans used for personal use, typically on an unsecured basis, and client overdrafts. Mortgage Warehouse — Mortgage Warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third-party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company has a policy that requires that it separately validate that each residential mortgage loan was underwritten consistent with the underwriting requirements of the final investor or market standards prior to advancing funds. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Discounted Cash Flow Method The Company uses the discounted cash flow method to estimate expected credit losses for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery tends to be less sensitive than other assumptions and such assumptions are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts national unemployment as a loss driver. Management also utilizes and forecasts either one-year percentage change in national retail sales, one-year percentage change in the national home price index, or one-year percentage change in national gross domestic product as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third-party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An ACL is established for the difference between the instrument’s NPV and its amortized cost basis. Loss-Rate Method The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, premium finance, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Collateral Dependent Financial Assets Loans the Company has identified as collateral dependent that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets, the ACL is measured based on the difference between the fair value of the collateral plus other sources of repayment and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. Prior to January 1, 2023, a loan that had been modified or renewed was considered a troubled debt restructuring (“TDR”) when two conditions were met: 1) the borrower was experiencing financial difficulty and 2) concessions were made for the borrower's benefit that would not otherwise have been considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACL reflected all effects of a TDR when an individual asset was specifically identified as a reasonably expected TDR. The Company had determined that a TDR was reasonably expected no later than the point when the lender concluded that modification was the best course of action and it was at least reasonably possible that the troubled borrower would accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed non-performing TDRs were evaluated individually to determine the required ACL. Subsequent to December 31, 2022, the TDR concept, and its impact on the ACL calculation, was eliminated in favor of disclosure of loan modifications made to troubled borrowers. Such modifications made to troubled borrowers are now subject to the Company's standard ACL process as previously disclosed. Paycheck Protection Program ("PPP") With the passage of the PPP, the Company has actively participated in assisting its customers with applications for loans through the program. Loans funded through the PPP program are fully guaranteed by the U.S. government subject to certain representations and warranties. This guarantee exists at the inception of the loans and throughout the lives of the loans and was not entered into separately and apart from the loans. ASC 326 requires credit enhancements that mitigate credit losses, such as the U.S. government guarantee on PPP loans, to be considered in estimating credit losses. The guarantee is considered “embedded” and, therefore, is considered when estimating credit loss on the PPP loans. Given that the loans are fully guaranteed by the U.S. government and absent any specific loss information on any of our PPP loans, the Company did not carry an ACL on its PPP loans at December 31, 2023 and 2022. The balance of PPP loans at December 31, 2023 was insignificant. Loan |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Equipment Loan Sale During the year ended December 31, 2022, the Company made the decision to sell a portfolio of equipment loans for cash consideration. The sale closed on June 23, 2022. A summary of the carrying amount of the assets sold and the gain on sale is as follows: (Dollars in thousands) Equipment loans $ 191,167 Accrued interest receivable $ 1,587 Assets sold $ 192,754 Cash consideration $ 197,454 Return of premium liability $ (708) Total consideration $ 196,746 Transaction costs $ 73 Gain on sale, net of transaction costs $ 3,919 The associated agreement contains a provision that in the event that a sold loan is prepaid in full prior to the due date of the final scheduled contractual payment, the Company will return a pro-rata portion of the premium calculated as of the date of such prepayment in full. As this transaction qualified as a sale of a group of entire financial assets, management must recognize, as proceeds, any assets obtained and liabilities incurred. Thus, management recorded a $708,000 liability for the potential return of premium measured at fair value as of the date of close. Management has elected the fair value option to account for the liability. It is recorded in other liabilities in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period and its balance was not significant at December 31, 2023 or 2022. The gain on sale, net of transaction costs, was included in net gains (losses) on sale of loans Factored Receivable Disposal Group On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. A summary of the carrying amounts of the assets and liabilities sold and the gains on sale are as follows: (Dollars in thousands) June 30, 2022 September 6, 2022 Total Factored receivables $ 67,888 $ 20,131 $ 88,019 Accrued interest and fee income — 17 17 Assets held for sale $ 67,888 $ 20,148 $ 88,036 Customer reserve noninterest bearing deposits $ 9,682 $ 1,149 $ 10,831 Liabilities held for sale $ 9,682 $ 1,149 $ 10,831 Net assets sold $ 58,206 $ 18,999 $ 77,205 Cash consideration $ 66,292 $ 19,054 $ 85,346 Revenue share asset 5,210 1,027 6,237 Total consideration $ 71,502 $ 20,081 $ 91,583 Transaction costs 82 49 131 Gain on sale, net of transaction costs $ 13,214 $ 1,033 $ 14,247 The June 30, 2022 agreement contains a revenue share provision that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. As this transaction qualified as a sale of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded a $5,210,000 asset for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close. This is a financial asset for which management elected the fair value option. It is recorded in other assets in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period. The September 6, 2022 agreement contains a revenue share provision that entitles the Company to an amount equal to a range of fifteen to twenty percent, depending on client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. As this transaction qualified as a sale of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded a $1,027,000 asset for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close. This is a financial asset for which management elected the fair value option. It is recorded in other assets in the Company's Consolidated Balance Sheet and will be marked to fair value through earnings at each reporting period. For further discussion of changes in the fair value of the revenue share provisions and the period end balance, see Note 16 – Fair Value Disclosures. The gains on sale, net of transaction costs, were included in net gains (losses) on sale of loans HubTran Inc. On June 1, 2021, the Company, through TriumphPay, a division of the Company's wholly-owned subsidiary TBK Bank, SSB, acquired HubTran, Inc. ("HubTran"), a cloud-based provider of automation software for the trucking industry's back-office. A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: (Dollars in thousands) Initial Values Measurement Period Adjustments Adjusted Values Assets acquired: Cash $ 170 $ — $ 170 Intangible assets - capitalized software 16,932 — 16,932 Intangible assets - customer relationship 10,360 — 10,360 Other assets 1,546 24 1,570 29,008 24 29,032 Liabilities assumed: Deferred income taxes 4,703 (3,248) 1,455 Other liabilities 906 16 922 5,609 (3,232) 2,377 Fair value of net assets acquired $ 23,399 $ 3,256 $ 26,655 Consideration: Cash paid $ 97,096 $ — $ 97,096 Goodwill $ 73,697 $ (3,256) $ 70,441 The Company has recognized goodwill of $70,441,000, which included measurement period adjustments related to customary settlement adjustments and the finalization of the HubTran stub period tax return and its impact on the acquired deferred tax liability. Goodwill was calculated as the excess of the fair value of consideration exchanged as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Payments segment. The goodwill in this acquisition resulted from expected synergies and progress in the development of a fully integrated open loop payments network for the transportation industry. The goodwill will not be deducted for tax purposes. The intangible assets recognized include a capitalized software intangible asset with an acquisition date fair value of $16,932,000 which will be amortized on a straight-line basis over its four year estimated useful life and customer relationship intangible assets with a total acquisition date fair value of $10,360,000 which will be amortized utilizing an accelerated method over their eleven year estimated useful lives. Revenue and earnings of HubTran 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. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES Equity Securities with Readily Determinable Fair Values The Company held equity securities with fair values of $4,488,000 and $5,191,000 at December 31, 2023 and 2022, respectively. The gross realized and unrealized gains (losses) recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: (Dollars in thousands) 2023 2022 2021 Unrealized gains (losses) on equity securities still held at the reporting date $ 62 $ (313) $ (322) Realized gains (losses) on equity securities sold during the period 18 — — $ 80 $ (313) $ (322) Equity Securities Without Readily Determinable Fair Values The following table summarizes the Company's investments in equity securities without readily determinable fair values: (Dollars in thousands) December 31, 2023 December 31, 2022 Equity Securities without readily determinable fair value, at cost $ 65,814 $ 39,019 Upward adjustments based on observable price changes, cumulative 10,163 10,163 Equity Securities without readily determinable fair value, carrying value $ 75,977 $ 49,182 Equity securities without readily determinable fair values include Federal Home Loan Bank and other restricted stock, which are reported separately in the Company's consolidated balance sheets. Equity securities without readily determinable fair values also include the Company's investments in the common stock of Trax Group, Inc. and Warehouse Solutions Inc., discussed below, and other investments, which are included in other assets in the Company's consolidated balance sheets. The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Unrealized gains (losses) on equity securities still held at the reporting date $ — $ 10,163 $ — Realized gains (losses) on equity securities sold during the period — — — $ — $ 10,163 $ — Trax Group, Inc. On June 22, 2023, the Company made a $9,700,000 minority investment in Trax Group, Inc. ("Trax"), a leader in transportation spend management solutions. The investment in Trax is accounted for as an equity investment without a readily determinable fair value measured under the measurement alternative and is included in other assets in the Company's consolidated balance sheets. Warehouse Solutions Inc. On October 17, 2019, the Company made a minority equity investment of $8,000,000 in Warehouse Solutions Inc. (“WSI”), purchasing 8% of the common stock of WSI and receiving warrants to purchase an additional 10% of the common stock of WSI upon exercise of the warrants at a later date. WSI provides technology solutions to help reduce supply chain costs for a global client base across multiple industries. Although the Company held less than 20% of the voting stock of WSI, the investment in common stock was initially accounted for using the equity method as the Company’s representation on WSI’s board of directors, which was disproportionately larger in size than the common stock investment held, demonstrated that it had significant influence over the investee. On June 10, 2022, the Company entered into two separate agreements with WSI. First, the Company entered into an Affiliate Agreement. The Affiliate Agreement canceled the Company’s outstanding warrants and modified the structure of the existing operating agreement to be consistent with TriumphPay operating as an open loop payments network. By modifying the operating agreement, the Company’s Payments segment operations now have greater ability to operate in the freight shipper audit space. As a result of the Affiliate Agreement, the Company recognized a total loss on impairment of the warrants of $3,224,000, which represented the full book balance of the warrants on the date the Affiliate Agreement was executed. The impairment loss was included in other noninterest income on the Company's consolidated statements of income during the year ended December 31, 2022. Separately, the Company also entered into an Amended and Restated Investor Rights Agreement (the “Investor Rights Agreement”). The Investor Rights Agreement eliminated the Company’s representation on WSI’s board of directors making the Company a completely passive investor. The Investor Rights Agreement also provided for the Company’s purchase of an additional 10% of WSI’s common stock for $23,000,000 raising the Company’s ownership of WSI’s common stock to 18%. As a passive investor, the Company no longer holds significant influence over the investee and the investment in WSI’s common stock no longer qualifies for equity method accounting. The investment in WSI’s common stock is now accounted for as an equity security without a readily determinable fair value measured under the measurement alternative. The measurement alternative requires the Company to remeasure its investment in the common stock of WSI only upon the execution of an orderly and observable transaction in an identical or similar instrument. The Company's additional investment in WSI under the Investor Rights Agreement qualified as an orderly and observable transaction for an identical investment in WSI, therefore the fair value of the Company's original 8% common stock investment was required to be adjusted from $4,925,000 at March 31, 2022 to $15,088,000, resulting in a gain of $10,163,000 that was recorded in other noninterest income on the Company's consolidated statements of income during the year ended December 31, 2022. The Company's investment in WSI totaled $38,088,000 at December 31, 2023 and 2022 and has been allocated to the Payments segment. Debt Securities Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities: (Dollars in thousands) Amortized Gross Gross Allowance for Credit Losses Fair December 31, 2023 Available for sale securities: Mortgage-backed securities, residential $ 60,411 $ 221 $ (4,793) $ — $ 55,839 Asset-backed securities 1,188 — (18) — 1,170 State and municipal 4,560 1 (46) — 4,515 CLO Securities 235,484 1,137 (330) — 236,291 Corporate bonds 268 7 — — 275 SBA pooled securities 1,642 3 (91) — 1,554 Total available for sale securities $ 303,553 $ 1,369 $ (5,278) $ — $ 299,644 (Dollars in thousands) Amortized Gross Gross Fair December 31, 2023 Held to maturity securities: CLO securities $ 6,167 $ 30 $ (2,182) $ 4,015 Allowance for credit losses (3,190) Total held to maturity securities, net of ACL $ 2,977 (Dollars in thousands) Amortized Gross Gross Allowance for Credit Losses Fair December 31, 2022 Available for sale securities: Mortgage-backed securities, residential $ 55,329 $ 235 $ (4,931) $ — $ 50,633 Asset-backed securities 6,389 — (58) — 6,331 State and municipal 13,553 1 (116) — 13,438 CLO Securities 185,068 161 (4,218) — 181,011 Corporate bonds 1,270 1 (8) — 1,263 SBA pooled securities 1,910 29 (111) — 1,828 Total available for sale securities $ 263,519 $ 427 $ (9,442) $ — $ 254,504 (Dollars in thousands) Amortized Gross Gross Fair December 31, 2022 Held to maturity securities: CLO securities $ 6,521 $ 458 $ (1,503) $ 5,476 Allowance for credit losses (2,444) Total held to maturity securities, net of ACL $ 4,077 The amortized cost and estimated fair value of debt securities at December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Securities Held to Maturity Securities (Dollars in thousands) Amortized Fair Amortized Fair Due in one year or less $ 357 $ 356 $ — $ — Due from one year to five years 2,434 2,404 4,766 2,584 Due from five years to ten years 69,494 69,516 1,401 1,431 Due after ten years 168,027 168,805 — — 240,312 241,081 6,167 4,015 Mortgage-backed securities, residential 60,411 55,839 — — Asset-backed securities 1,188 1,170 — — SBA pooled securities 1,642 1,554 — — $ 303,553 $ 299,644 $ 6,167 $ 4,015 Proceeds from sales of debt securities and the associated gross gains and losses are as follows: (Dollars in thousands) 2023 2022 2021 Proceeds $ 15,996 $ 40,163 $ — Gross gains 103 2,514 — Gross losses — — — Net gains and losses from calls of securities (1) (2) 5 Debt securities with a carrying amount of approximately $42,445,000 and $93,813,000 at December 31, 2023 and 2022, respectively, were pledged to secure public deposits, customer repurchase agreements, and for other purposes required or permitted by law. Accrued interest on available for sale securities totaled $3,789,000 and $2,593,000 at December 31, 2023 and 2022, respectively, and was included in other assets The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 Available for sale securities: Mortgage-backed securities, residential $ 13,157 $ (312) $ 32,885 $ (4,481) $ 46,042 $ (4,793) Asset-backed securities 1,170 (18) — — 1,170 (18) State and municipal 975 (13) 2,424 (33) 3,399 (46) CLO Securities 2,576 (13) 42,735 (317) 45,311 (330) Corporate bonds — — — — — — SBA pooled securities 216 (9) 1,059 (82) 1,275 (91) Total available for sale securities $ 18,094 $ (365) $ 79,103 $ (4,913) $ 97,197 $ (5,278) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Available for sale securities: Mortgage-backed securities, residential 26,030 (1,507) 15,828 (3,424) 41,858 (4,931) Asset-backed securities 1,337 (52) 4,994 (6) 6,331 (58) State and municipal 12,680 (116) — — 12,680 (116) CLO Securities 151,572 (3,407) 19,439 (811) 171,011 (4,218) Corporate bonds 261 (8) — — 261 (8) SBA pooled securities 1,262 (111) — — 1,262 (111) Total available for sale securities $ 193,142 $ (5,201) $ 40,261 $ (4,241) $ 233,403 $ (9,442) 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 cost, (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. At December 31, 2023, the Company had 97 available for sale debt securities in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities 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, as of December 31, 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, and therefore no losses have been recognized in the Company’s consolidated statements of income. The following table presents the activity in the allowance for credit losses for held to maturity debt securities: (Dollars in thousands) Year Ended December 31, Held to Maturity CLO Securities 2023 2022 2021 Allowance for credit losses: Beginning balance $ 2,444 $ 2,082 $ 2,026 Credit loss expense (benefit) 746 362 56 Allowance for credit losses ending balance $ 3,190 $ 2,444 $ 2,082 The Company’s held to maturity securities are investments in the unrated subordinated notes of collateralized loan obligation funds. These securities are the junior-most in securitization capital structures, and are subject to suspension of distributions if the credit of the underlying loan portfolios deteriorates materially. The ACL on held to maturity securities is estimated at each measurement date on a collective basis by major security type. At December 31, 2023 and 2022, the Company’s held to maturity securities consisted of three investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call. As of December 31, 2023, $4,766,000 of the Company’s held to maturity securities were classified as nonaccrual. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Held for Sale The following table presents loans held for sale: (Dollars in thousands) December 31, 2023 December 31, 2022 1-4 family residential $ 1,230 $ — Commercial 6 5,641 Total loans held for sale $ 1,236 $ 5,641 Loans Held for Investment and Allowance for Credit Losses The following table presents the amortized cost and unpaid principal for loans held for investment: December 31, 2023 December 31, 2022 (Dollars in thousands) Amortized Cost Unpaid Difference Amortized Cost Unpaid Difference Commercial real estate $ 812,704 $ 813,623 $ (919) $ 678,144 $ 679,239 $ (1,095) Construction, land development, land 136,720 137,209 (489) 90,976 91,147 (171) 1-4 family residential properties 125,916 126,096 (180) 125,981 126,185 (204) Farmland 63,568 63,728 (160) 68,934 69,185 (251) Commercial 1,170,365 1,176,243 (5,878) 1,251,110 1,262,493 (11,383) Factored receivables 1,116,654 1,119,544 (2,890) 1,237,449 1,241,032 (3,583) Consumer 8,326 8,328 (2) 8,868 8,871 (3) Mortgage warehouse 728,847 728,847 — 658,829 658,829 — Total 4,163,100 $ 4,173,618 $ (10,518) 4,120,291 $ 4,136,981 $ (16,690) Allowance for credit losses (35,219) (42,807) $ 4,127,881 $ 4,077,484 The difference between the amortized cost and unpaid principal balance is due to (1) premiums and discounts associated with acquired loans totaling $6,861,000 and $13,383,000 at December 31, 2023 and 2022, respectively, and (2) net deferred origination and factoring fees totaling $3,657,000 and $3,307,000 at December 31, 2023 and 2022, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $30,686,000 and $19,279,000 at December 31, 2023 and 2022, respectively, and was included in other assets in the Consolidated Balance Sheets. As of December 31, 2023, most of the Company’s non-factoring business activity is with customers located within certain states. The states of Texas (17%), Colorado (15%), Illinois (12%), and Iowa (6%), make up 50% of the Company’s gross loans, excluding factored receivables. Therefore, the Company’s exposure to credit risk is affected by changes in the economies in these states. At December 31, 2022, the states of Texas (23%), Colorado (11%), Illinois (11%), and Iowa (6%) made up 51% of the Company’s gross loans, excluding factored receivables. A majority (97%) of the Company’s factored receivables, representing approximately 26% of the total loan portfolio as of December 31, 2023, are transportation receivables. At December 31, 2022, 96% of our factored receivables, representing approximately 29% of our total loan portfolio, were transportation receivables. At December 31, 2023 and 2022, the Company had $253,492,000 and $249,288,000, respectively, of customer reserves associated with factored receivables which are held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer and are periodically released to or withdrawn by customers. Customer reserves are reported as deposits in the consolidated balance sheets. At December 31, 2023 and 2022 the balance of the Over-Formula Advance Portfolio, acquired from Transport Financial Solutions during 2020, included in factored receivables was $3,151,000 and $8,202,000, respectively. These amounts were fully reserved at both dates. During the year ended December 31, 2023, new adverse developments with one of the two remaining Over-Formula Advance clients caused the Company to charge-off the entire Over-Formula Advance amount due from that client. This resulted in a net charge-off of $3,330,000; however, this net charge-off had no impact on credit loss expense as the entire amount had been reserved in a prior period. In accordance with the Agreement reached with Covenant, Covenant reimbursed the Company for $1,665,000 of this charge-off. As of December 31, 2023 the Company carried a separate $19,361,000 receivable (the “Misdirected Payments”) payable by the United States Postal Service (“USPS”) arising from accounts factored to the largest Over-Formula Advance Portfolio carrier. This amount is separate from the acquired Over-Formula Advances. The amounts represented by this receivable were paid by the USPS directly to such customer in contravention of notices of assignment delivered to, and previously honored by, the USPS, which amount was then not remitted back to us by such customer as required. The USPS disputes their obligation to make such payment, citing purported deficiencies in the notices delivered to them. We are a party to litigation in the United States Court of Federal Claims against the USPS seeking a ruling that the USPS was obligated to make the payments represented by this receivable directly to us. Based on our legal analysis and discussions with our counsel advising us on this matter, we continue to believe it is probable that we will prevail in such action and that the USPS will have the capacity to make payment on such receivable. Consequently, we have not reserved for such balance as of December 31, 2023. Loans with carrying amounts of $1,588,532,000 and $1,356,922,000 at December 31, 2023 and 2022, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity and Federal Reserve Bank discount window borrowing capacity. Allowance for Credit Losses The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows: (Dollars in thousands) Beginning Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Year ended December 31, 2023 Commercial real estate $ 4,459 $ 1,593 $ (108) $ 86 $ 6,030 Construction, land development, land 1,155 (195) — 5 965 1-4 family residential properties 838 82 (5) 12 927 Farmland 483 (41) — — 442 Commercial 15,918 7,712 (9,804) 234 14,060 Factored receivables 19,121 2,961 (10,997) 811 11,896 Consumer 175 44 (563) 515 171 Mortgage warehouse 658 70 — — 728 $ 42,807 $ 12,226 $ (21,477) $ 1,663 $ 35,219 (Dollars in thousands) Beginning Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance Year ended December 31, 2022 Commercial real estate $ 3,961 $ 546 $ (108) $ 60 $ 4,459 Construction, land development, land 827 323 — 5 1,155 1-4 family residential properties 468 363 — 7 838 Farmland 562 (79) — — 483 Commercial 14,485 2,713 (2,205) 925 15,918 Factored receivables 20,915 3,045 (5,853) 1,014 19,121 Consumer 226 239 (435) 145 175 Mortgage warehouse 769 (111) — — 658 $ 42,213 $ 7,039 $ (8,601) $ 2,156 $ 42,807 (Dollars in thousands) Beginning Provision Charge-offs Recoveries Ending Year ended December 31, 2021 Commercial real estate $ 10,182 $ (6,214) $ (17) $ 10 $ 3,961 Construction, land development, land 3,418 (2,584) (12) 5 827 1-4 family residential properties 1,225 (849) (34) 126 468 Farmland 832 (270) — — 562 Commercial 22,040 (7,725) (481) 651 14,485 Factored receivables 56,463 10,038 (46,043) 457 20,915 Consumer 542 (92) (359) 135 226 Mortgage warehouse 1,037 (268) — — 769 $ 95,739 $ (7,964) $ (46,946) $ 1,384 $ 42,213 The decrease in required ACL during the year ended December 31, 2023 is a function of net charge-offs of $19,814,000 and credit loss expense of $12,226,000. The increase in required ACL during the year ended December 31, 2022 is a function of net charge-offs of $6,445,000 and credit loss expense of $7,039,000. The Company uses the discounted cash flow (DCF) method to estimate ACL for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit), and consumer loan pools. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment as a loss driver. The Company also utilizes and forecasts either one-year percentage change in national retail sales (commercial real estate – non multifamily, commercial general, commercial agriculture, commercial asset-based lending, commercial equipment finance, consumer), one-year percentage change in the national home price index (1-4 family residential and construction, land development, land), or one-year percentage change in national gross domestic product (commercial real estate – multifamily) as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. Consistent forecasts of the loss drivers are used across the loan segments. The Company also forecasts prepayments speeds for use in the DCF models with higher prepayment speeds resulting in lower required ACL levels and vice versa for shorter prepayment speeds. These assumed prepayment speeds are based upon our historical prepayment speeds by loan type adjusted for the expected impact of the current interest rate environment. Generally, the impact of these assumed prepayment speeds is lesser in magnitude than the aforementioned loss driver assumptions. For all DCF models at December 31, 2023, the Company has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. The Company leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by the Company when developing the forecast metrics. At December 31, 2023 as compared to December 31, 2022, the Company's forecasted national unemployment and one-year percentage change in national retail sales were virtually unchanged. The Company projected modest increases in one-year percentage change in the national home price index and one-year percentage change in national gross domestic product. At December 31, 2023 for national unemployment, the Company projected a low percentage in the first quarter followed by a gradual rise in the following three quarters. For percentage change in national retail sales, the Company projected a small increase in the first two projected quarters followed by a decline to negative levels over the last two projected quarters to a level below recent actual periods. For percentage change in national home price index, the Company projected a positive increase in the first projected quarter followed by a steep drop to negative levels for the remaining three quarters with such negative levels peaking in the fourth projected quarter. For percentage change in national gross domestic product, management projected low-to-near-zero growth for each projected quarter. At December 31, 2023, the Company slowed its historical prepayment speeds in response to the expected interest rate environment in the macro economy. The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss factors used to calculate the required ACL on pools that use the loss-rate method reflect the forecasted economic conditions described above. For the year ended December 31, 2023, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $1,978,000. Changes in the loan volume and mix of our portfolio decreased the required ACL by $2,325,000 and specific reserves decreased $7,241,000. Net charge-offs during the period were $19,814,000. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL December 31, 2023 Commercial real estate $ 2,518 $ — $ — $ — $ 2,518 $ 777 Construction, land development, land — — — — — — 1-4 family residential 1,156 — — 22 1,178 113 Farmland 291 — — 677 968 — Commercial 920 — 18,259 21,772 40,951 3,322 Factored receivables — 39,577 — — 39,577 6,717 Consumer — — — 133 133 — Mortgage warehouse — — — — — — Total $ 4,885 $ 39,577 $ 18,259 $ 22,604 $ 85,325 $ 10,929 Commercial loans secured by Other collateral primarily consist of large liquid credit loans secured by the underlying enterprise values of the borrowers. At December 31, 2023 the balance of the Over-Formula Advance Portfolio included in factored receivables was $3,151,000 and was fully reserved. At December 31, 2023 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation. (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL December 31, 2022 Commercial real estate $ 1,003 $ — $ — $ 140 $ 1,143 $ 283 Construction, land development, land 150 — — — 150 — 1-4 family residential 1,342 — — 49 1,391 108 Farmland 196 — 108 96 400 — Commercial 193 — 5,334 10,370 15,897 4,737 Factored receivables — 42,409 — — 42,409 13,042 Consumer — — — 91 91 — Mortgage warehouse — — — — — — Total $ 2,884 $ 42,409 $ 5,442 $ 10,746 $ 61,481 $ 18,170 At December 31, 2022 the balance of the Over-Formula Advance Portfolio included in factored receivables was $8,202,000 and was fully reserved. At December 31, 2022 the balance of Misdirected Payments included in factored receivables was $19,361,000 and carried no ACL allocation. Past Due and Nonaccrual Loans The following tables present an aging of contractually past due loans: (Dollars in thousands) Past Due Past Due Past Due 90 Total Past Due Current Total Past Due 90 December 31, 2023 Commercial real estate $ — $ 74 $ 1,369 $ 1,443 $ 811,261 $ 812,704 $ — Construction, land development, land — — — — 136,720 136,720 — 1-4 family residential properties 680 639 309 1,628 124,288 125,916 — Farmland 173 — — 173 63,395 63,568 — Commercial 4,585 4,699 5,423 14,707 1,155,658 1,170,365 — Factored receivables 32,177 6,438 26,332 64,947 1,051,707 1,116,654 26,332 Consumer 44 96 31 171 8,155 8,326 — Mortgage warehouse — — — — 728,847 728,847 — $ 37,659 $ 11,946 $ 33,464 $ 83,069 $ 4,080,031 $ 4,163,100 $ 26,332 (Dollars in thousands) Past Due Past Due Past Due 90 Total Past Due Current Total Past Due 90 December 31, 2022 Commercial real estate $ 1,301 $ — $ 455 $ 1,756 $ 676,388 $ 678,144 $ — Construction, land development, land — — 145 145 90,831 90,976 — 1-4 family residential properties 936 531 776 2,243 123,738 125,981 — Farmland — — — — 68,934 68,934 — Commercial 1,630 3,139 2,847 7,616 1,243,494 1,251,110 — Factored receivables 42,797 12,651 37,142 92,590 1,144,859 1,237,449 37,142 Consumer 52 41 2 95 8,773 8,868 — Mortgage warehouse — — — — 658,829 658,829 — $ 46,716 $ 16,362 $ 41,367 $ 104,445 $ 4,015,846 $ 4,120,291 $ 37,142 At December 31, 2023 and 2022, total past due Over-Formula Advances recorded in factored receivables was $3,151,000 and $8,202,000, respectively, all of which was considered past due 90 days or more. At December 31, 2023 and 2022, the Misdirected Payments totaled $19,361,000, all of which was considered past due 90 days or more. Given the nature of factored receivables, these assets are disclosed as past due 90 days or more still accruing; however, the Company is not recognizing income on the assets. Historically, any income recognized on factored receivables that are past due 90 days or more has not been material. The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses: December 31, 2023 December 31, 2022 (Dollars in thousands) Total Nonaccrual Nonaccrual Total Nonaccrual Nonaccrual Commercial real estate $ 2,447 $ 190 $ 871 $ 319 Construction, land development, land — — 150 150 1-4 family residential 1,178 1,028 1,391 1,238 Farmland 968 968 400 400 Commercial 40,951 33,188 15,393 3,662 Factored receivables — — — — Consumer 133 133 91 91 Mortgage warehouse — — — — $ 45,677 $ 35,507 $ 18,296 $ 5,860 The following table presents accrued interest on nonaccrual loans reversed through interest income: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Commercial real estate $ 17 $ — $ 8 Construction, land development, land — 2 — 1-4 family residential 8 1 3 Farmland 57 — 6 Commercial 105 28 36 Factored receivables — — — Consumer 4 — 3 Mortgage warehouse — — — $ 191 $ 31 $ 56 There was no interest earned on nonaccrual loans during the years ended December 31, 2023, 2022, and 2021. The following table presents information regarding nonperforming loans: (Dollars in thousands) December 31, 2023 December 31, 2022 Nonaccrual loans $ 45,677 $ 18,296 Factored receivables greater than 90 days past due 23,181 28,940 Other nonperforming factored receivables (1) — 491 Troubled debt restructurings accruing interest — 503 $ 68,858 $ 48,230 (1) Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification. This amount is also considered Classified from a risk rating perspective. Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass – Pass rated loans have low to average risk and are not otherwise classified. Classified – Classified loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Certain classified loans have the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. As of December 31, 2023 and 2022, based on the most recent analysis performed, the risk category of loans is as follows: Revolving Revolving Total (Dollars in thousands) Year of Origination December 31, 2023 2023 2022 2021 2020 2019 Prior Commercial real estate Pass $ 244,388 $ 119,169 $ 98,484 $ 116,078 $ 16,351 $ 34,724 $ 88,547 $ 159 $ 717,900 Classified 91,456 665 1,630 1,016 37 — — — 94,804 Total commercial real estate $ 335,844 $ 119,834 $ 100,114 $ 117,094 $ 16,388 $ 34,724 $ 88,547 $ 159 $ 812,704 YTD gross charge-offs $ 108 $ — $ — $ — $ — $ — $ — $ — $ 108 Construction, land development, land Pass $ 91,557 $ 34,683 $ 1,668 $ 2,996 $ 2,928 $ 276 $ 2,612 $ — $ 136,720 Classified — — — — — — — — — Total construction, land development, land $ 91,557 $ 34,683 $ 1,668 $ 2,996 $ 2,928 $ 276 $ 2,612 $ — $ 136,720 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential Pass $ 22,637 $ 16,336 $ 19,542 $ 7,229 $ 2,462 $ 20,950 $ 35,373 $ 174 $ 124,703 Classified 296 1 99 — 40 590 187 — 1,213 Total 1-4 family residential $ 22,933 $ 16,337 $ 19,641 $ 7,229 $ 2,502 $ 21,540 $ 35,560 $ 174 $ 125,916 YTD gross charge-offs $ 5 $ — $ — $ — $ — $ — $ — $ — $ 5 Farmland Pass $ 13,140 $ 13,628 $ 5,586 $ 7,876 $ 2,296 $ 18,542 $ 1,359 $ 155 $ 62,582 Classified 677 — — 18 86 205 — — 986 Total farmland $ 13,817 $ 13,628 $ 5,586 $ 7,894 $ 2,382 $ 18,747 $ 1,359 $ 155 $ 63,568 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 269,496 $ 196,731 $ 79,125 $ 61,440 $ 24,583 $ 10,476 $ 472,269 $ 370 $ 1,114,490 Classified 27,547 19,441 5,462 3,291 24 80 30 — 55,875 Total commercial $ 297,043 $ 216,172 $ 84,587 $ 64,731 $ 24,607 $ 10,556 $ 472,299 $ 370 $ 1,170,365 YTD gross charge-offs $ 100 $ 4,619 $ 4,493 $ 499 $ 44 $ 49 $ — $ — $ 9,804 Factored receivables Pass $ 1,075,428 $ — $ — $ 3,151 $ — $ — $ — $ — $ 1,078,579 Classified 18,714 — — 19,361 — — — — 38,075 Total factored receivables $ 1,094,142 $ — $ — $ 22,512 $ — $ — $ — $ — $ 1,116,654 YTD gross charge-offs $ 5,374 $ 2,293 $ — $ 3,330 $ — $ — $ — $ — $ 10,997 Consumer Pass $ 4,141 $ 1,442 $ 593 $ 406 $ 83 $ 1,488 $ 40 $ — $ 8,193 Classified 19 — 83 1 — 30 — — 133 Total consumer $ 4,160 $ 1,442 $ 676 $ 407 $ 83 $ 1,518 $ 40 $ — $ 8,326 YTD gross charge-offs $ 519 $ 25 $ 12 $ 3 $ — $ 4 $ — $ — $ 563 Mortgage warehouse Pass $ 728,847 $ — $ — $ — $ — $ — $ — $ — $ 728,847 Classified — — — — — — — — — Total mortgage warehouse $ 728,847 $ — $ — $ — $ — $ — $ — $ — $ 728,847 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 2,449,634 $ 381,989 $ 204,998 $ 199,176 $ 48,703 $ 86,456 $ 600,200 $ 858 $ 3,972,014 Classified 138,709 20,107 7,274 23,687 187 905 217 — 191,086 Total loans $ 2,588,343 $ 402,096 $ 212,272 $ 222,863 $ 48,890 $ 87,361 $ 600,417 $ 858 $ 4,163,100 YTD gross charge-offs $ 6,106 $ 6,937 $ 4,505 $ 3,832 $ 44 $ 53 $ — $ — $ 21,477 Revolving Revolving Total (Dollars in thousands) Year of Origination December 31, 2022 2022 2021 2020 2019 2018 Prior Commercial real estate Pass $ 231,427 $ 156,895 $ 198,541 $ 28,033 $ 17,786 $ 35,658 $ 3,675 $ — $ 672,015 Classified 3,668 551 1,855 39 — 16 — — 6,129 Total commercial real estate $ 235,095 $ 157,446 $ 200,396 $ 28,072 $ 17,786 $ 35,674 $ 3,675 $ — $ 678,144 Construction, land development, land Pass $ 71,236 $ 11,328 $ 4,535 $ 3,186 $ 35 $ 506 $ — $ — $ 90,826 Classified — — 5 — — 145 — — 150 Total construction, land development, land $ 71,236 $ 11,328 $ 4,540 $ 3,186 $ 35 $ 651 $ — $ — $ 90,976 1-4 family residential Pass $ 26,306 $ 22,639 $ 9,536 $ 2,929 $ 3,528 $ 20,910 $ 38,361 $ 300 $ 124,509 Classified 137 199 7 53 1 1,006 69 — 1,472 Total 1-4 family residential $ 26,443 $ 22,838 $ 9,543 $ 2,982 $ 3,529 $ 21,916 $ 38,430 $ 300 $ 125,981 Farmland Pass $ 18,190 $ 7,291 $ 10,027 $ 2,699 $ 6,742 $ 18,569 $ 1,016 $ 204 $ 64,738 Classified 1,062 2,796 120 108 — 110 — — 4,196 Total farmland $ 19,252 $ 10,087 $ 10,147 $ 2,807 $ 6,742 $ 18,679 $ 1,016 $ 204 $ 68,934 Commercial Pass $ 358,983 $ 181,933 $ 136,635 $ 41,912 $ 5,842 $ 12,145 $ 486,889 $ 161 $ 1,224,500 Classified 10,721 10,579 3,767 1,038 96 116 293 — 26,610 Total commercial $ 369,704 $ 192,512 $ 140,402 $ 42,950 $ 5,938 $ 12,261 $ 487,182 $ 161 $ 1,251,110 Factored receivables Pass $ 1,196,912 $ — $ 7,710 $ — $ — $ — $ — $ — $ 1,204,622 Classified 12,974 — 19,853 — — — — — 32,827 Total factored receivables $ 1,209,886 $ — $ 27,563 $ — $ — $ — $ — $ — $ 1,237,449 Consumer Pass $ 2,768 $ 1,981 $ 894 $ 304 $ 266 $ 2,418 $ 147 $ — $ 8,778 Classified — 1 2 — 8 79 — — 90 Total consumer $ 2,768 $ 1,982 $ 896 $ 304 $ 274 $ 2,497 $ 147 $ — $ 8,868 Mortgage warehouse Pass $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Classified — — — — — — — — — Total mortgage warehouse $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Total loans Pass $ 2,564,651 $ 382,067 $ 367,878 $ 79,063 $ 34,199 $ 90,206 $ 530,088 $ 665 $ 4,048,817 Classified 28,562 14,126 25,609 1,238 105 1,472 362 — 71,474 Total loans $ 2,593,213 $ 396,193 $ 393,487 $ 80,301 $ 34,304 $ 91,678 $ 530,450 $ 665 $ 4,120,291 Loan Modifications to Borrowers Experiencing Financial Difficulty The following tables present the amortized cost basis at the end of the reporting period of the loans modifications to borrowers experiencing financial difficulty: Term Extension Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial real estate $ 415 0.1 % 1-4 family residential 271 0.2 % Farmland 604 1.0 % Commercial 1,548 0.1 % $ 2,838 0.1 % Payment Delay Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial 22,547 1.9 % $ 22,547 0.5 % Term Extension and Rate Reduction Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial real estate $ 83,349 10.3 % Commercial 496 — % $ 83,845 2.0 % Payment Delay and Rate Reduction Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial real estate $ 23,001 2.8 % $ 23,001 0.6 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Year Ended December 31, 2023 Commercial real estate Modification added a weighted average 1.1 years to the life of the modified loans. 1-4 family residential Modification added a weighted average 0.5 years to the life of the modified loans. Farmland Modification added a weighted average 0.5 years to the life of the modified loans. Commercial Modification added a weighted average 1.5 years to the life of the modified loans. Payment Delay Year Ended December 31, 2023 Commercial Modification provided a weighted average payment delay of 0.6 years. Term Extension and Rate Reduction Year Ended December 31, 2023 Commercial real estate Modification added a weighted average 0.5 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.1% to 5.1%. Commercial Modification added a weighted average 0.3 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.5% to 9.5%. Payment Delay and Rate Reduction Year Ended December 31, 2023 Commercial real estate Modification provided a weighted average payment delay of 0.8 years and reduced the weighted average contractual interest rate from 9.4% to 6.0%. Generally, if a loan to a borrower experiencing financial difficulty is modified, the Company will seek to obtain credit enhancements when possible. The following table presents the payment status of loans that have been modified in the last twelve months: December 31, 2023 (Dollars in thousands) Current Past Due Past Due Commercial real estate $ 106,765 $ — $ — 1-4 family residential 271 — — Farmland 604 — — Commercial 23,838 753 — $ 131,478 $ 753 $ — At December 31, 2023, the Company had no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2023 and were modified in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance for credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly. Residential Real Estate Loans In Process of Foreclosure At December 31, 2023 and 2022, the Company had $0 and $129,000, respectively, in 1-4 family residential real estate loans for which formal foreclosure proceedings were in process. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | OTHER REAL ESTATE OWNED Other real estate owned activity was as follows: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Beginning balance $ — $ 524 $ 1,432 Loans transferred to OREO 37 47 692 Net OREO gains (losses) and valuation adjustments — (133) (347) Sales of OREO — (438) (1,253) Ending balance $ 37 $ — $ 524 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT Premises and Equipment Premises and equipment consisted of the following: (Dollars in thousands) December 31, December 31, Land $ 13,080 $ 13,080 Buildings 58,282 55,001 Leasehold improvements 39,499 37,406 Automobiles and aircraft 22,966 9,929 Furniture, fixtures and equipment 40,814 35,465 174,641 150,881 Accumulated depreciation (61,184) (47,542) $ 113,457 $ 103,339 Depreciation expense was $13,801,000, $13,302,000 and $12,037,000 for the years ended December 31, 2023, 2022, and 2021, respectively. Leases The Company leases certain premises and equipment under operating leases. At December 31, 2023 and 2022, the Company had lease liabilities totaling $32,311,000 and $34,035,000, respectively, and right-of-use assets totaling $29,527,000 and $30,973,000, respectively, related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities other assets Lease costs were as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Operating lease cost $ 5,294 $ 4,242 $ 4,538 Short-term lease cost 460 — — Variable lease cost 145 880 443 Total lease cost $ 5,899 $ 5,122 $ 4,981 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the year ended December 31, 2023. At December 31, 2023, the Company did not have any leases that had not yet commenced, but will create significant rights and obligations for the Company. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: (Dollars in thousands) December 31, 2023 Lease payments due: Within one year $ 6,443 After one but within two years 6,299 After two but within three years 5,376 After three but within four years 4,856 After four but within five years 3,979 After five years 8,971 Total undiscounted cash flows 35,924 Discount on cash flows (3,613) Total lease liability $ 32,311 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consist of the following: (Dollars in thousands) December 31, December 31, Goodwill $ 233,709 $ 233,709 December 31, 2023 December 31, 2022 (Dollars in thousands) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 43,578 $ (38,084) $ 5,494 $ 43,578 $ (35,347) $ 8,231 Software intangible asset 16,932 (10,935) 5,997 16,932 (6,702) 10,230 Other intangible assets 33,452 (21,297) 12,155 30,410 (16,813) 13,597 $ 93,962 $ (70,316) $ 23,646 $ 90,920 $ (58,862) $ 32,058 The changes in goodwill and intangible assets by operating segment during the year are as follows: (Dollars in thousands) December 31, 2023 Banking Factoring Payments Corporate Total Beginning balance $ 116,296 $ 60,982 $ 88,389 $ 100 $ 265,767 Acquired intangibles — — 3,042 — 3,042 Amortization of intangibles (2,950) (1,821) (6,683) — (11,454) Ending balance $ 113,346 $ 59,161 $ 84,748 $ 100 $ 257,355 (Dollars in thousands) December 31, 2022 Banking Factoring Payments Corporate Total Beginning balance $ 119,306 $ 63,275 $ 94,275 $ — $ 276,856 Acquired goodwill - measurement period adjustment — — (18) — (18) Acquired intangibles 751 — — 100 851 Amortization of intangibles (3,761) (2,293) (5,868) — (11,922) Ending balance $ 116,296 $ 60,982 $ 88,389 $ 100 $ 265,767 (Dollars in thousands) December 31, 2021 Banking Factoring Payments Corporate Total Beginning balance $ 123,882 $ 66,040 $ — $ — $ 189,922 Acquired goodwill — — 73,697 — 73,697 Acquired goodwill - measurement period adjustment — 59 (3,238) — (3,179) Acquired intangibles — — 27,292 — 27,292 Amortization of intangibles (4,576) (2,824) (3,476) — (10,876) Ending balance $ 119,306 $ 63,275 $ 94,275 $ — $ 276,856 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. The Company assesses goodwill for impairment at its reporting units that contain goodwill, Banking, Factoring, and Payments. A quantitative goodwill impairment test was performed on the Company's reporting units as of October 1, 2023 which indicated that the fair value of the reporting units exceeded the reporting units' carrying value. After performing an impairment test of intangible assets during the years ended December 31, 2023, 2022, and 2021, it was determined that no indicators of impairment were present and thus, no intangible asset impairment charge was recorded. Except for software intangible assets that are amortized utilizing a straight line method, material acquired intangible assets are being amortized utilizing an accelerated method over their estimated useful lives. The useful lives of the Company's intangible assets range from 4 to 11 years. The future amortization schedule for the Company’s intangible assets with finite lives is as follows: (Dollars in thousands) 2024 $ 10,312 2025 5,735 2026 2,611 2027 1,681 2028 1,007 Thereafter 1,449 $ 22,795 Amortization schedule excludes $851,000 of indefinite lived intangible assets. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Collateralized Loan Obligation Funds - Closed The Company holds investments in the subordinated notes of the following closed Collateralized loan Obligation ("CLO") funds: (Dollars in thousands) Offering Offering Trinitas CLO IV, LTD (Trinitas IV) June 2, 2016 $ 406,650 Trinitas CLO V, LTD (Trinitas V) September 22, 2016 $ 409,000 Trinitas CLO VI, LTD (Trinitas VI) June 20, 2017 $ 717,100 The net carrying amounts of the Company’s investments in the subordinated notes of the CLO funds, which represent the Company’s maximum exposure to loss as a result of its involvement with the CLO funds, totaled $2,977,000 and $4,077,000 at December 31, 2023 and 2022, respectively, and are classified as held to maturity securities within the Company’s consolidated balance sheets. The Company performed a consolidation analysis to confirm whether the Company was required to consolidate the assets, liabilities, equity or operations of the closed CLO funds in its financial statements. The Company concluded that the closed CLO funds are variable interest entities and that the Company holds variable interests in the entities in the form of its investments in the subordinated notes of the entities. However, the Company also concluded that the Company does not have the power to direct the activities that most significantly impact the entities’ economic performance. As a result, the Company is not the primary beneficiary and therefore is not required to consolidate the assets, liabilities, equity or operations of the CLO funds in the Company’s financial statements. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s interest bearing deposits. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Beginning in June 2020, such derivatives were used to hedge the variable cash flows associated with interest bearing deposits. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminated, or treatment of the derivative as a hedge is no longer appropriate or intended. During the year ended December 31, 2022, the Company terminated its single derivative with a notional value totaling $200,000,000, resulting in a termination value of $9,316,000. During the year ended December 31, 2022, the Company reclassified $465,000 into earnings through interest expense in the consolidated statements of income. On May 4, 2022, the Company terminated the hedged funding, incurring a termination fee of $732,000, which was recognized through interest expense in the consolidated statements of income, and reclassified the remaining $8,851,000 unrealized gain on the terminated derivative into earnings through other noninterest income in the consolidated statements of income. The following table presents the pre-tax impact of the terminated cash flow hedge on AOCI: Year Ended (Dollars in thousands) December 31, 2022 Unrealized gains on terminated hedges Beginning Balance $ — Unrealized gains arising during the period 9,316 Reclassification adjustments for amortization of unrealized (gains) into net income (9,316) Ending Balance $ — The Company did not have any derivative financial instruments at December 31, 2023 and 2022. The table below presents the effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax: Amount of Amount of Location of Amount of Amount of (Dollars in thousands) Year Ended December 31, 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 2,398 $ 2,398 Interest Expense $ 7,103 $ 7,103 Year Ended December 31, 2021 Derivatives in cash flow hedging relationships: Interest rate swaps $ 3,995 $ 3,995 Interest Expense $ (71) $ (71) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | DEPOSITS Deposits are summarized as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Noninterest-bearing demand $ 1,632,022 $ 1,756,680 Interest-bearing demand 757,455 856,512 Individual retirement accounts 52,195 68,125 Money market 568,772 508,534 Savings 555,047 551,780 Certificates of deposit 265,525 319,150 Brokered time deposits 146,458 110,555 Other brokered deposits 4 — Total deposits $ 3,977,478 $ 4,171,336 At December 31, 2023, scheduled maturities of time deposits, including certificates of deposits, individual retirement accounts and brokered time deposits, are as follows: (Dollars in thousands) December 31, 2023 Within one year $ 423,753 After one but within two years 27,762 After two but within three years 6,651 After three but within four years 4,043 After four but within five years 1,969 Total $ 464,178 Time deposits, including individual retirement accounts, certificates of deposit, and brokered time deposits, with individual balances of $250,000 and greater totaled $66,172,000 and $58,462,000 at December 31, 2023 and 2022, respectively. |
Borrowings and Borrowing Capaci
Borrowings and Borrowing Capacity | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings And Borrowing Capacity | BORROWINGS AND BORROWING CAPACITY Customer Repurchase Agreements Customer repurchase agreements are overnight customer sweep arrangements. Information concerning customer repurchase agreements is summarized as follows: (Dollars in thousands) December 31, December 31, Amount outstanding at end of the year $ — $ 340 Weighted average interest rate at end of the year — % 0.03 % Average daily balance during the year $ 723 $ 6,701 Weighted average interest rate during the year 0.03 % 0.03 % Maximum month-end balance during the year $ 3,208 $ 13,463 Customer repurchase agreements are secured by pledged securities with carrying amounts as follows: (Dollars in thousands) December 31, December 31, Asset-backed securities $ — $ 4,994 FHLB Advances FHLB advances are collateralized by assets, including a blanket pledge of certain loans. FHLB advances and weighted average interest rates at end of period by contractual maturity are summarized as follows: Fixed Rate Variable Rate (Dollars in thousands) Balance Outstanding Weighted Average Interest Rate Balance Outstanding Weighted Average Interest Rate 2023 $ 225,000 5.65 % $ — — % 2027 — — % 30,000 5.64 % $ 225,000 5.65 % $ 30,000 5.64 % Information concerning FHLB advances is summarized as follows: (Dollars in thousands) December 31, December 31, Amount outstanding at end of the year $ 255,000 $ 30,000 Weighted average interest rate at end of the year 5.65 % 4.25 % Average daily balance during the year $ 194,795 $ 69,658 Weighted average interest rate during the year 5.30 % 1.19 % Maximum month-end balance during the year $ 530,000 $ 230,000 The Company’s unused borrowing capacity with the FHLB is as follows: (Dollars in thousands) December 31, December 31, Borrowing capacity $ 842,016 $ 676,307 Borrowings outstanding (255,000) (30,000) Unused borrowing capacity $ 587,016 $ 646,307 Paycheck Protection Program Liquidity Facility (“PPPLF”) The PPPLF is a lending facility offered by the Federal Reserve Banks to facilitate lending to small businesses under the Paycheck Protection Program. Borrowings under the PPPLF are secured by Paycheck Protection Program Loans (“PPP loans”) guaranteed by the Small Business Administration (“SBA”) and mature at the same time as the PPP Loan pledged to secure the extension of credit. The maturity dates of the borrowings are accelerated if the underlying PPP Loan goes into default and the Company sells the PPP Loan to the SBA to realize on the SBA guarantee or if the Company receives any loan forgiveness reimbursement from the SBA for the underlying PPP Loan. Information concerning borrowings under the PPPLF is summarized as follows: (Dollars in thousands) December 31, December 31, December 31, Amount outstanding at end of period $ — $ — $ 27,144 Weighted average interest rate at end of period — % — % 0.35 % Average amount outstanding during the period — 670 118,880 Weighted average interest rate during the period — % 0.32 % 0.35 % Highest month end balance during the period — — 181,635 There were no PPPLF borrowings outstanding at December 31, 2023 and 2022. Federal Funds Purchased The Company had no federal funds purchased at December 31, 2023 and 2022. However, as of December 31, 2023, the Company had unsecured federal funds lines of credit with seven unaffiliated banks totaling $227,500,000. Federal Reserve Bank Discount Window The Company has entered into agreements with the Federal Reserve Bank of Dallas to borrow from its discount window. The Company had no Federal Reserve Bank discount window borrowings outstanding at December 31, 2023 and 2022. At December 31, 2023, the Company had $569,858,000 of unused borrowing capacity from the Federal Reserve Bank discount window, to which the Company pledged loans with an outstanding balance of $745,799,000. Subordinated Notes The following provides a summary of the Company’s subordinated notes: (Dollars in thousands) Face Value Carrying Value Maturity Date Current Interest Rate First Repricing Date Variable Interest Rate at Repricing Date Initial Issuance Costs Subordinated Notes issued November 27, 2019 $ 39,500 $ 39,180 2029 4.875% 11/27/2024 Three Month LIBOR plus 3.330% $ 1,218 Subordinated Notes issued August 26, 2021 70,000 69,498 2031 3.500% 9/01/2026 Three Month SOFR plus 2.860% $ 1,776 $ 109,500 $ 108,678 The Subordinated Notes bear interest payable semi-annually in arrears to, but excluding the first repricing date, and thereafter payable quarterly in arrears at an annual floating rate. The Company may, at its option, beginning on the respective first repricing date and on any scheduled interest payment date thereafter, redeem the Subordinated Notes, in whole or in part, at a redemption price equal to the outstanding principal amount of the Subordinated Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. The Subordinated Notes are included on the consolidated balance sheets as liabilities at their carrying values; however, for regulatory purposes, the $108,678,000 and $107,800,000 carrying value of these obligations at December 31, 2023 and 2022, respectively, were eligible for inclusion in Tier 2 regulatory capital. Issuance costs related to the Subordinated Notes have been netted against the subordinated notes liability on the balance sheet. The debt issuance costs are being amortized using the effective interest method through maturity and recognized as a component of interest expense. The Subordinated Notes are subordinated in right of payment to the Company’s existing and future senior indebtedness and are structurally subordinated to the Company’s subsidiaries’ existing and future indebtedness and other obligations. On September 30, 2016, the Company issued $50,000,000 of Fixed-to-Floating Rate Subordinated Notes due 2026 (the “2016 Notes”). The 2016 Notes initially bear interest at 6.50% per annum, payable semi-annually in arrears, to, but excluding, September 30, 2021, and, thereafter and to, but excluding, the maturity date or earlier redemption, interest shall be payable quarterly in arrears, at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 5.345%. The Company redeemed the 2016 Notes in whole on September 30, 2021 at which time $755,000 in remaining deferred costs were recognized through interest expense. Junior Subordinated Debentures The following provides a summary of the Company’s junior subordinated debentures: (Dollars in thousands) Face Value Carrying Value Maturity Date Variable Interest Rate At December 31, 2023 National Bancshares Capital Trust II $ 15,464 $ 13,632 September 2033 Three Month SOFR + 3.26% 8.65% National Bancshares Capital Trust III 17,526 13,640 July 2036 Three Month SOFR + 1.64% 7.30% ColoEast Capital Trust I 5,155 3,838 September 2035 Three Month SOFR + 1.86% 7.19% ColoEast Capital Trust II 6,700 4,958 March 2037 Three Month SOFR + 2.05% 7.38% Valley Bancorp Statutory Trust I 3,093 2,921 September 2032 Three Month SOFR + 3.66% 9.02% Valley Bancorp Statutory Trust II 3,093 2,751 July 2034 Three Month SOFR + 3.01% 8.39% $ 51,031 $ 41,740 These debentures are unsecured obligations due to trusts that are unconsolidated subsidiaries. The debentures were issued in conjunction with the trusts’ issuances of obligated capital securities. The trusts used the proceeds from the issuances of their capital securities to buy floating rate junior subordinated deferrable interest debentures that bear the same interest rate and terms as the capital securities. These debentures are the trusts’ only assets and the interest payments from the debentures finance the distributions paid on the capital securities. These debentures rank junior and are subordinate in the right of payment to all other debt of the Company. As part of the purchase accounting adjustments made with the National Bancshares, Inc. acquisition on October 15, 2013, the ColoEast acquisition on August 1, 2016, and the Valley acquisition on December 9, 2017, the Company adjusted the carrying value of the junior subordinated debentures to fair value as of the respective acquisition dates. The discount on the debentures will continue to be amortized through maturity and recognized as a component of interest expense. The debentures may be called by the Company at par plus any accrued but unpaid interest. Interest on the debentures is calculated quarterly. The distribution rate payable on the capital securities is cumulative and payable quarterly in arrears. The Company has the right to defer payments on interest on the debentures at any time by extending the interest payment period for a period not exceeding 20 consecutive quarters with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. The debentures are included on the consolidated balance sheet as liabilities; however, for regulatory purposes, the carrying value of these obligations are eligible for inclusion in Tier I regulatory capital, subject to certain limitations. All of the carrying value of $41,740,000 and $41,158,000 was allowed in the calculation of Tier I regulatory capital as of December 31, 2023 and 2022, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) Plan The Company sponsors a 401(k) benefit plan that allows employee contributions up to the maximum tax-deferred limitations established by the Internal Revenue Code, which are matched by the Company equal to 100% of the first 4% of the compensation contributed. Expense related to the 401(k) matching contributions for the years ended December 31, 2023, 2022, and 2021 was $4,320,000, $3,569,000 and $2,976,000, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense consisted of the following: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Income tax expense: Current $ 5,195 $ 36,472 $ 37,812 Deferred 6,549 (1,828) (5,832) Change in valuation allowance for deferred tax asset (10) 49 — Income tax expense $ 11,734 $ 34,693 $ 31,980 Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Tax provision computed at federal statutory rate $ 11,091 $ 28,771 $ 30,440 Effect of: State taxes, net 1,920 4,849 3,335 Stock-based compensation (2,661) (369) (1,778) Non-deductible executive compensation 1,943 1,510 492 Non-deductible meals and entertainment 808 441 508 Federal tax credits (835) (372) (372) Bank-owned life insurance (78) (89) (332) Tax exempt interest (60) (100) (201) Change in valuation allowance for deferred tax asset (10) 49 — Other (384) 3 (112) Income tax expense $ 11,734 $ 34,693 $ 31,980 Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: (Dollars in thousands) 2023 2022 Deferred tax assets Federal net operating loss carryforwards $ 5,562 $ 6,396 State net operating loss carryforwards 1,502 1,534 Stock-based compensation 3,658 7,825 Unrealized loss on securities available for sale 936 2,163 Allowance for credit losses 10,098 11,825 Accrued liabilities 5,362 4,179 Lease liability 7,620 8,062 Other 6,594 3,405 Total deferred tax assets 41,332 45,389 Deferred tax liabilities Goodwill and intangible assets 10,328 9,934 Fair value adjustment on junior subordinated debentures 2,103 2,237 Premises and equipment 10,220 6,339 Acquired loan basis 331 371 Lease right-of-use asset 6,988 7,339 Indemnification asset 358 935 Other 1,887 1,434 Total deferred tax liabilities 32,215 28,589 Net deferred tax asset before valuation allowance 9,117 16,800 Valuation allowance (317) (327) Net deferred tax asset $ 8,800 $ 16,473 The Company's federal and state net operating loss carryforwards as of December 31, 2023 were $26,484,000 and $26,220,000, respectively, which will expire at various dates from 2031 through 2035, with the exception of $15,855,000 of net operating loss carryforwards that will not expire. The Company has a valuation allowance on certain net operating loss carryforwards that are not expected to be realized before expiration. The Company's federal and state net operating loss carryforwards as of December 31, 2022 were $30,458,000 and $26,695,000, respectively. An Internal Revenue Code Section 382 (“Section 382”) ownership change was triggered as part of previous acquisitions. A significant portion of the deferred tax asset relating to the Company's net operating loss carryforwards is subject to the annual limitation rules under Section 382. The utilization of tax carryforward attributes acquired from the EJ Financial Corp. (2010) acquisition is subject to an annual limitation of $341,000, with $2,326,000 of carryforwards remaining at December 31, 2023. The utilization of tax carryforward attributes acquired from the National Bancshares, Inc. (2013) acquisition is subject to an annual limitation of $2,040,000, with $9,896,000 of carryforwards remaining at December 31, 2023. The utilization of tax carryforward attributes acquired from HubTran, Inc. (2021) is subject to an annual limitation of $1,594,000, with $14,262,000 of carryforwards remaining at December 31, 2023. The utilization of deferred tax assets related to the state net operating loss and tax credit carryforwards acquired from the ColoEast (2016) stock acquisition are subject to an annual limitation of $1,906,000 under Section 382 rules, with $2,445,000 of state carryforwards remaining at December 31, 2023. At December 31, 2023 and 2022, the Company had no amounts recorded for uncertain tax positions and does not expect any material changes in uncertain tax benefits during the next 12 months. The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company is subject to U.S. federal income tax as well as income tax in various states. The Company is generally not subject to examination by taxing authorities for years prior to 2020. |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | LEGAL CONTINGENCIES The Company, through its direct and indirect wholly owned subsidiaries, has purchased and received payments on accounts receivable payable to Surge Transportation, Inc. (‘Surge’), a licensed freight broker, as part of factoring services provided to such entity. On July 24, 2023, Surge filed for Chapter 11 Bankruptcy in the US Bankruptcy Court in the Middle District of Florida. In connection with the bankruptcy proceedings, certain claimants comprised of motor carriers, contingency collection agents, and factoring companies have filed complaints alleging that such entities have an ownership interest in, or other rights to, amounts paid to the Company in respect of such purchased accounts receivable. The Court has not yet ruled on such complaints. In the event of an adverse ruling with respect to such complaints, Triumph may be required to disgorge or pay to such claimants all or a portion of the amounts it has collected on such receivables. Due to the uncertainty of the existence of or extent of any loss exposure, Triumph is unable to calculate any reserve loss at this time. |
Off-Balance Sheet Loan Commitme
Off-Balance Sheet Loan Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Loan Commitments | OFF-BALANCE SHEET LOAN COMMITMENTS From time to time, the Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. The contractual amounts of financial instruments with off-balance sheet risk were as follows: December 31, 2023 December 31, 2022 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Unused lines of credit $ 53,822 $ 527,300 $ 581,122 $ 1,417 $ 487,965 $ 489,382 Standby letters of credit $ 15,013 $ 9,356 $ 24,369 $ 12,309 $ 4,897 $ 17,206 Commitments to purchase loans $ — $ 17,125 $ 17,125 $ — $ 53,572 $ 53,572 Mortgage warehouse commitments $ — $ 895,896 $ 895,896 $ — $ 1,055,117 $ 1,055,117 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. In the event of nonperformance by the customer, the Company has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The credit risk to the Company in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to its customers. Commitments to purchase loans represent loans purchased by the Company that have not yet settled. Mortgage warehouse commitments are unconditionally cancellable and represent the unused capacity on mortgage warehouse facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion. The Company records an allowance for credit losses on off-balance sheet credit exposures through a charge to credit loss expense on the Company’s consolidated statements of income. At December 31, 2023 and 2022, the allowance for credit losses on off balance sheet credit exposures totaled $2,838,000 and $3,606,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. The following table presents credit loss expense for off balance sheet credit exposures: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Credit loss expense (benefit) $ (769) $ (476) $ (922) |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and liabilities measured at estimated fair value on a recurring basis are summarized in the table below. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2023 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 55,839 $ — $ 55,839 Asset-backed securities — 1,170 — 1,170 State and municipal — 4,515 — 4,515 CLO securities — 236,291 — 236,291 Corporate bonds — 275 — 275 SBA pooled securities — 1,554 — 1,554 $ — $ 299,644 $ — $ 299,644 Equity securities with readily determinable fair values Mutual fund $ 4,488 $ — $ — $ 4,488 Loans held for sale $ — $ 1,236 $ — $ 1,236 Indemnification asset $ — $ — $ 1,497 $ 1,497 Revenue share asset $ — $ — $ 2,516 $ 2,516 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 50,633 $ — $ 50,633 Asset-backed securities — 6,331 — 6,331 State and municipal — 13,438 — 13,438 CLO Securities — 181,011 — 181,011 Corporate bonds — 1,263 — 1,263 SBA pooled securities — 1,828 — 1,828 $ — $ 254,504 $ — $ 254,504 Equity securities with readily determinable fair values Mutual fund $ 5,191 $ — $ — $ 5,191 Loans held for sale $ — $ 5,641 $ — $ 5,641 Indemnification asset $ — $ — $ 3,896 $ 3,896 Revenue share asset $ — $ — $ 5,515 $ 5,515 There were no transfers between levels for the years ended December 31, 2023 and 2022. The Company used the following methods and assumptions to estimate fair value of financial instruments that are measured at fair value on a recurring basis: Securities available for sale – The estimated fair values of debt securities available for sale are determined by third-party matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Equity securities with readily determinable fair values – The fair values of equity securities are determined based on quoted market prices in active markets and are classified in Level 1 of the valuation hierarchy. Loans held for sale – The estimated fair value of loans held for sale is determined using commitments on hand from investors or prevailing market prices and are classified in Level 2 of the valuation hierarchy. Indemnification Asset The estimated fair value of the indemnification asset is calculated as the present value of the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio. The cash flows are discounted at a rate to reflect the uncertainty of the timing and receipt of the payments from Covenant . The indemnification asset is reviewed quarterly and changes to the asset are recorded as adjustments to other noninterest income within the Consolidated Statements of Income. The indemnification asset estimated fair value is considered a Level 3 classification. At December 31, 2023 and 2022, the estimated cash payments expected to be received from Covenant for probable losses on the covered Over-Formula Advance Portfolio were $1,575,000 and $4,101,000, respectively, and a discount rate of 5.0% and 5.0%, respectively, was applied to calculate the present value of the indemnification asset. A reconciliation of the opening balance to the closing balance of the estimated fair value of the indemnification asset is as follows: (Dollars in thousands) 2023 2022 2021 Beginning balance $ 3,896 $ 4,786 $ 36,225 Indemnification asset recognized in business combination — — — Change in estimated fair value of indemnification asset recognized in earnings (734) (890) 4,194 Indemnification recognized (1,665) — (35,633) Ending balance $ 1,497 $ 3,896 $ 4,786 Revenue Share Asset On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. The June 30, 2022 agreement contains revenue share provisions that entitles the Company to an amount equal to fifteen percent of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The September 6, 2022 agreement contains revenue share provisions that entitles the Company to an amount ranging from fifteen to twenty percent, depending on the client, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolio. The estimated fair value of the revenue share assets is calculated each reporting period, and changes in the estimated fair value of the revenue share assets are recorded in noninterest income in the consolidated statements of income. The revenue share asset estimated fair value is considered a Level 3 classification. At December 31, 2023 and 2022, the estimated cash payments expected to be received from the purchaser for the Company's share of future gross monthly revenue was $3,329,000 and $7,613,000, respectively, and a discount rate of 10.0% was applied to calculate the present value of the revenue share asset. A reconciliation of the opening balance to the closing balance of the estimated fair value of the revenue share asset is as follows: (Dollars in thousands) 2023 2022 2021 Beginning balance $ 5,515 $ — $ — Revenue share asset recognized — 6,237 — Change in estimated fair value of revenue share asset recognized in earnings (1,743) (62) — Revenue share payments received (1,256) (660) — Ending balance $ 2,516 $ 5,515 $ — Assets measured at estimated fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at December 31, 2023 and 2022. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2023 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 1,480 $ 1,480 1-4 family residential — — 37 37 Commercial — — 20,870 20,870 Factored receivables — — 32,860 32,860 $ — $ — $ 55,247 $ 55,247 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 269 $ 269 1-4 family residential — — 46 46 Commercial — — 6,994 6,994 Factored receivables — — 29,367 29,367 Equity investment without readily determinable fair value 38,088 — — 38,088 $ 38,088 $ — $ 36,676 $ 74,764 Collateral Dependent Loans Specific Allocation of ACL A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The ACL is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying estimated fair value of the loan’s collateral. For real estate loans, estimated fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third-party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, estimated fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis were as follows: December 31, 2023 Carrying Fair Value Measurements Using Total (Dollars in thousands) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 286,635 $ 286,635 $ — $ — $ 286,635 Securities - held to maturity 2,977 — — 4,015 4,015 Loans not previously presented, gross 4,107,853 105,145 — 3,944,193 4,049,338 FHLB and other restricted stock 14,278 N/A N/A N/A N/A Accrued interest receivable 34,597 34,597 — — 34,597 Financial liabilities: Deposits 3,977,478 — 3,971,391 — 3,971,391 Federal Home Loan Bank advances 255,000 — 255,000 — 255,000 Subordinated notes 108,678 — 90,084 — 90,084 Junior subordinated debentures 41,740 — 43,072 — 43,072 Accrued interest payable 7,429 7,429 — — 7,429 December 31, 2022 Carrying Fair Value Measurements Using Total (Dollars in thousands) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 408,182 $ 408,182 $ — $ — $ 408,182 Securities - held to maturity 4,077 — — 5,476 5,476 Loans not previously presented, gross 4,088,411 187,729 — 3,805,701 3,993,430 FHLB and other restricted stock 6,252 N/A N/A N/A N/A Accrued interest receivable 21,977 21,977 — — 21,977 Financial liabilities: Deposits 4,171,336 — 4,159,695 — 4,159,695 Customer repurchase agreements 340 — 340 — 340 Federal Home Loan Bank advances 30,000 — 30,000 — 30,000 Subordinated notes 107,800 — 104,400 — 104,400 Junior subordinated debentures 41,158 — 42,721 — 42,721 Accrued interest payable 2,830 2,830 — — 2,830 For those financial instruments not previously described, the following methods and assumptions were used by the Company in estimating the fair values of financial instruments as disclosed herein: Cash and Cash Equivalents For financial instruments with a shorter term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value and are considered a Level 1 classification. Securities held to maturity The estimated fair values of the Company’s investments in the subordinated notes of Trinitas IV, Trinitas V, and Trinitas VI classified as securities held to maturity are determined based on the securities’ discounted projected future cash flows (net present value), resulting in a Level 3 classification. Loans Loans include loans held for investment, excluding collateral dependent loans previously described above. For variable rate loans that reprice frequently and have no significant changes in credit risk, excluding previously presented collateral dependent loans measured at estimated fair value on a non-recurring basis, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses. The discount rates used to determine the estimated fair value of loans use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. These loans are considered a Level 3 classification. The fair values of commercial loans in the Company’s liquid credit portfolio are determined based on quoted market prices in active markets and are considered a Level 1 classification. FHLB and other restricted stock FHLB and other restricted stock is restricted to member banks and there are restrictions placed on its transferability. As a result, the estimated fair value of FHLB and other restricted stock was not practicable to determine. Deposits The estimated fair values disclosed for demand deposits and non-maturity transaction accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered a Level 2 classification. Estimated fair values for fixed rate time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Customer repurchase agreements The carrying amount of customer repurchase agreements approximates fair value due to their short-term nature. The customer repurchase agreement estimated fair value is considered a Level 2 classification. Federal Home Loan Bank advances The Company’s FHLB advances have variable rates or a maturity of less than three months and therefore estimated fair value materially approximates carrying value and is considered a Level 2 classification. Subordinated notes The subordinated notes were valued based on quoted market prices, but due to limited trading activity for the subordinated notes in these markets, the subordinated notes are considered a Level 2 classification. Junior subordinated debentures The junior subordinated debentures were valued by discounting future cash flows using current interest rates for similar financial instruments, resulting in a Level 2 classification. Accrued Interest Receivable and Accrued Interest Payable The carrying amounts of accrued interest receivable and accrued interest payable approximate their fair values given the short-term nature of the receivables and are considered a Level 1 classification. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS In the ordinary course of business, we have granted loans to executive officers, directors, and their affiliates were as follows: Years Ended December 31, (Dollars in thousands) 2023 2022 Beginning balance $ — $ — New loans and advances 49,583 — Repayments and sales (442) — Ending balance $ 49,141 $ — At December 31, 2023 and 2022, there were no loans to executive officers, directors, or their affiliates that were considered non-performing or potential problem loans. Deposits from executive officers, directors, and their affiliates at December 31, 2023 and 2022 were $162,868,000 and $100,742,000, respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | REGULATORY MATTERS The Company (on a consolidated basis) and TBK Bank are 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 or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank must meet specific capital guidelines that involve quantitative measures of their 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. Quantitative measures established by regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2023, the Company and TBK Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2023, TBK Bank’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,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2023 that management believes have changed TBK Bank’s category. The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table: Actual Minimum for Capital To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to risk weighted assets) Triumph Financial, Inc. $806,667 16.7% $385,370 8.0% N/A N/A TBK Bank, SSB $758,656 15.9% $382,508 8.0% $478,135 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $661,833 13.7% $289,027 6.0% N/A N/A TBK Bank, SSB $725,383 15.2% $286,881 6.0% $382,508 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $575,093 11.9% $216,770 4.5% N/A N/A TBK Bank, SSB $725,383 15.2% $215,161 4.5% $310,787 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $661,833 12.6% $209,518 4.0% N/A N/A TBK Bank, SSB $725,383 13.9% $209,406 4.0% $261,758 5.0% As of December 31, 2022 Total capital (to risk weighted assets) Triumph Financial, Inc. $829,928 17.7% $375,109 8.0% N/A N/A TBK Bank, SSB $732,785 15.8% $371,030 8.0% $463,788 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $684,381 14.6% $281,252 6.0% N/A N/A TBK Bank, SSB $697,022 15.0% $278,809 6.0% $371,745 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $598,223 12.7% $211,969 4.5% N/A N/A TBK Bank, SSB $697,022 15.0% $209,107 4.5% $302,043 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $684,381 13.0% $210,579 4.0% N/A N/A TBK Bank, SSB $697,022 13.2% $211,219 4.0% $264,023 5.0% As permitted by the interim final rule issued on March 27, 2020 by the federal banking regulatory agencies, the Company elected the option to delay the estimated impact on regulatory capital of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which was effective January 1, 2020. The initial impact of adoption of ASU 2016-13 as well as 25% of the quarterly increases in the allowance for credit losses subsequent to adoption of ASU 2016-13 (collectively the “transition adjustments”) was delayed for two years. After two years, the cumulative amount of the transition adjustments became fixed and will be phased out of the regulatory capital calculations evenly over a three year period, with 75% recognized in year three, 50% recognized in year four, and 25% recognized in year five. After five years, the temporary regulatory capital benefits will be fully reversed. Dividends paid by TBK Bank are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years. The capital conservation buffer set forth by the Basel III regulatory capital framework was 2.5% at December 31, 2023 and 2022. 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, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At December 31, 2023, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The following summarizes the Company’s capital structure. Preferred Stock Series C December 31, (Dollars in thousands, except per share amounts) 2023 2022 Shares authorized 51,750 51,750 Shares issued 45,000 45,000 Shares outstanding 45,000 45,000 Par value per share $ 0.01 $ 0.01 Liquidation preference per share $ 1,000 $ 1,000 Liquidation preference amount $ 45,000 $ 45,000 Dividend rate 7.125 % 7.125 % Dividend payment dates Quarterly Quarterly On June 19, 2020, the Company issued 45,000 shares of 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, with a liquidation preference of $1,000 per share through an underwritten public offering of 1,800,000 depositary shares, each representing a 1/40 th ownership interest in a share of the Series C Preferred Stock. Total gross proceeds from the preferred stock offering were $45,000,000. Net proceeds after underwriting discounts and offering expenses were $42,364,000. The net proceeds will be used for general corporate purposes. Series C Preferred Stockholders are entitled to quarterly cash dividends accruing at the rate per annum of 7.125% beginning September 30, 2020, applied to the liquidation preference value of the stock. Any dividends not paid shall not accumulate but will be waived and not payable by the Company. Payments of dividends are subject to declaration by the board of the Company. The Series C Preferred Stock is not redeemable by the holder and is senior to the Company’s common stock. The Series C Preferred stock may be redeemed in whole or in part by the Company at liquidation value (i) on any dividend payment date on or after June 30, 2025 or (ii) within 90 days following a regulatory capital treatment event (as defined in the Statement of Designation), subject to regulatory approval. Common Stock December 31, (Dollars in thousands, except per share amounts) 2023 2022 Shares authorized 50,000,000 50,000,000 Shares issued 28,986,255 28,321,716 Treasury shares (5,683,841) (4,268,131) Shares outstanding 23,302,414 24,053,585 Par value per share $ 0.01 $ 0.01 Stock Repurchase Program On February 1, 2023, the Company entered into an accelerated share repurchase (“ASR”) agreement to repurchase $70,000,000 of the Company’s common stock. The ASR is part of the Company’s previously announced plan to repurchase up to $100,000,000 of the Company’s common stock and is within the remaining amount authorized by the Company’s Board of Directors pursuant to such plan. Under the terms of the ASR agreement, the Company received an initial delivery of 961,373 common shares representing approximately 80% of the expected total to be repurchased. On April 28, 2023, the ASR was completed and the Company received an additional delivery of 247,954 common shares. In connection with the completion of the ASR, on May 4, 2023, the Company announced that its board of directors had authorized the Company to repurchase up to an additional $50,000,000 of its outstanding common stock in open market transactions or through privately negotiated transactions at the Company's discretion. The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company's common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors. The repurchase program is authorized for a period of up to one year and does not require the Company to repurchase any specific number of shares. The repurchase program may be modified, suspended or discontinued at any time. The Company has not repurchased any shares under the new share repurchase program. On February 7, 2022, the Company announced that its board of directors had authorized the Company to repurchase up to $50,000,000 of its outstanding common stock. During the year ended December 31, 2022, the Company purchased 709,795 shares into treasury stock under the Company's stock repurchase program at an average price of $70.41, for a total of $50,000,000, completing the stock repurchase program. On May 23, 2022, the Company announced that its board of directors had authorized the Company to repurchase up to an additional $75,000,000 of its outstanding common stock. On November 7, 2022 the repurchase authorization was increased to $100,000,000 in connection with the commencement of a modified "Dutch auction" tender offer (the "Tender Offer"). In December 2022, the Company repurchased 408,615 shares of its common stock in the Tender Offer at a price of $58.00 per share, for an aggregate cost of $24,772,000, including fees and expenses related to the tender offer of $1,072,000. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION Stock based compensation expense that has been charged against income was $13,228,000, $21,176,000 and $20,315,000 for the years ended December 31, 2023, 2022, and 2021, respectively. 2014 Omnibus Incentive Plan The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The aggregate number of shares of common stock available for issuance under the Omnibus Incentive Plan is 2,900,000 shares. Restricted Stock Awards A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested RSAs Shares Weighted Average Nonvested at January 1, 2023 230,486 $ 70.34 Granted 13,374 59.69 Vested (107,623) 60.34 Forfeited (13,306) 74.95 Nonvested at December 31, 2023 122,931 $ 77.14 RSAs granted to employees under the Omnibus Incentive Plan generally vest immediately or over four years, but vesting periods may vary. The fair value of shares vested during the years ended December 31, 2023, 2022, and 2021, totaled $5,629,000, $8,918,000, and $6,604,000, respectively. Compensation expense for RSAs will be recognized on an accelerated basis over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2023, there was $1,862,000 of total unrecognized compensation cost related to nonvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 1.31 years. Restricted Stock Units A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested RSUs Shares Weighted Average Nonvested at January 1, 2023 211,300 $ 59.45 Granted 139,836 52.59 Vested (114,509) 43.19 Forfeited (6,593) 61.87 Nonvested at December 31, 2023 230,034 $ 63.30 RSUs granted to employees under the Omnibus Incentive Plan typically vest after four Market Based Performance Stock Units A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested Market Based PSUs Shares Weighted Average Nonvested at January 1, 2023 112,486 $ 55.57 Granted 78,872 78.15 Incremental shares earned 52,694 N/A Vested (122,969) 36.10 Forfeited (5,003) 77.71 Nonvested at December 31, 2023 116,080 $ 81.74 Market Based PSUs granted to employees under the Omnibus Incentive Plan vest after three The fair value of the Market Based PSUs granted was determined using the following weighted average assumptions: Year Ended December 31, 2023 2022 2021 Grant date May 1, 2023 May 1, 2022 May 1, 2021 Performance period 3.00 years 3.00 years 3.00 years Stock price $ 51.25 $ 69.44 $ 88.63 Stock price volatility 49.33 % 55.17 % 51.71 % Risk-free rate 3.76 % 2.84 % 0.35 % Expected volatilities were determined based on the historical volatilities of the Company and the specified peer group. The risk-free interest rate for the performance period was derived from the Treasury constant maturities yield curve on the valuation date. The fair value of shares vested during the years ended December 31, 2023 and 2022 totaled $6,302,000 and $1,458,000, respectively. No Market Based PSUs vested during the year ended December 31, 2021. As of December 31, 2023, there was $5,740,000 of unrecognized compensation cost related to the nonvested Market Based PSUs. The cost is expected to be recognized over a remaining period of 2.10 years. Performance Based Performance Stock Units A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested Performance Based PSUs Shares Weighted Average Nonvested at January 1, 2023 255,738 $ 39.57 Granted — — Incremental shares earned 107,404 N/A Vested (363,142) 39.57 Forfeited — — Nonvested at December 31, 2023 — $ — Performance Based PSUs granted to employees under the Omnibus Incentive Plan vested after the conclusion of a three year performance period. Under the terms of the agreement, the number of shares issued upon vesting could range from 0% to 200% of the shares granted based on the Company’s cumulative diluted earnings per share over the performance period. The performance period for the outstanding Performance Based PSUs ended on December 31, 2022, and the awards subsequently vested at 142% of the target shares granted. Compensation expense for the Performance Based PSUs was estimated during the performance period based on the fair value of the stock at the grant date and the most probable outcome of the performance condition at each period end, adjusted for the passage of time within the vesting period of the awards. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $0, $6,966,000, and $7,405,000, respectively, of stock based compensation expense related to Performance based PSUs. As of December 31, 2023, there was no unrecognized compensation cost related to the nonvested Performance Based PSUs. Stock Options A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Stock Options Shares Weighted Average Weighted Average Aggregate Outstanding at January 1, 2023 195,398 $ 39.48 Granted 57,930 51.25 Exercised (17,139) 22.74 Forfeited (3,195) 56.73 Expired — — Outstanding at December 31, 2023 232,994 $ 43.40 6.21 $ 8,713 Fully vested shares and shares expected to vest at December 31, 2023 232,994 $ 43.40 6.21 $ 8,713 Shares exercisable at December 31, 2023 137,216 $ 34.01 4.50 $ 6,407 Information related to the stock options for the years ended December 31, 2023, 2022, and 2021 was as follows: Year Ended December 31, (Dollars in thousands, except per share amounts) 2023 2022 2021 Aggregate intrinsic value of options exercised $ 723 $ 280 $ 5,304 Cash received from option exercises, net $ 144 $ (74) $ 577 Tax benefit realized from option exercises $ 152 $ 59 $ 1,114 Weighted average fair value of options granted (per share) $ 25.20 $ 32.15 $ 35.37 Fair value of vested awards $ 532 $ 423 $ 381 Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten years contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. The fair value of the stock options granted was determined using the following weighted average assumptions: 2023 2022 2021 Risk-free interest rate 3.38 % 2.77 % 1.16 % Expected term 6.25 years 6.25 years 6.25 years Expected stock price volatility 45.65 % 43.33 % 39.26 % Dividend yield — — — Beginning in 2022, expected volatilities are determined based on the Company’s historical volatility. Prior to 2022, expected volatilities were determined based on a blend of the Company’s historical volatility and historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. The expected term of the options granted was determined based on the SEC simplified method, which calculates the expected term as the mid-point between the weighted average time to vesting and the contractual term. The risk-free interest rate for the expected term of the options was derived from the Treasury constant maturity yield curve on the valuation date. As of December 31, 2023, there was $1,191,000 of unrecognized compensation cost related to nonvested stock options. The cost is expected to be recognized over a remaining weighted average period of 2.90 years. Employee Stock Purchase Plan |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The following tables present parent company only condensed financial information. Condensed Parent Company Only Balance Sheets: (Dollars in thousands) December 31, December 31, ASSETS Cash and cash equivalents $ 44,029 $ 92,338 Securities - held to maturity 2,977 4,077 Investment in bank subsidiary 969,894 943,084 Investment in non-bank subsidiaries 193 194 Other assets 2,930 4,568 Total assets $ 1,020,023 $ 1,044,261 LIABILITIES AND EQUITY Subordinated notes $ 108,678 $ 107,800 Junior subordinated debentures 41,740 41,158 Intercompany payables 346 365 Accrued expenses and other liabilities 4,859 5,967 Total liabilities 155,623 155,290 Stockholders' equity 864,400 888,971 Total liabilities and equity $ 1,020,023 $ 1,044,261 Condensed Parent Company Only Statements of Income: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Interest income $ 175 $ 174 $ 100 Interest expense (9,702) (7,874) (8,220) Credit loss (expense) benefit (746) (362) (56) Other income 134 80 53 Salaries and employee benefits expense (639) (729) (618) Other expense (3,378) (2,701) (2,379) Income (loss) before income tax and income from subsidiaries (14,156) (11,412) (11,120) Income tax (expense) benefit 2,944 2,150 2,202 Dividends from subsidiaries and equity in undistributed subsidiary income 52,293 111,573 121,892 Net income 41,081 102,311 112,974 Dividends on preferred stock (3,206) (3,206) (3,206) Net income available to common stockholders $ 37,875 $ 99,105 $ 109,768 Comprehensive income attributable to Parent $ 45,055 $ 87,377 $ 115,189 Condensed Parent Company Only Statements of Cash Flows: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 41,081 $ 102,311 $ 112,974 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed subsidiary income (10,293) 1,427 (121,892) Net accretion of securities (175) (171) (87) Amortization of junior subordinated debentures 582 556 530 Amortization of subordinated notes issuance costs 878 843 1,224 Stock based compensation 719 686 420 Credit loss expense (benefit) 746 362 56 Change in other assets 1,638 (4,089) 387 Change in accrued expenses and other liabilities (1,127) 3,650 546 Net cash provided by (used in) operating activities 34,049 105,575 (5,842) Cash flows from investing activities: Investment in subsidiaries (33) — 3,383 Proceeds from maturities, calls, and pay downs of securities held to maturity 529 679 1,003 Net cash provided by (used in) investing activities 496 679 4,386 Cash flows from financing activities: Proceeds from issuance of subordinated notes, net — — 68,224 Repayment of subordinated notes — — (50,000) Dividends on preferred stock (3,206) (3,206) (3,206) Purchase of treasury stock (81,623) (76,714) (1,241) Stock option exercises 144 (74) 577 Proceeds from employee stock purchase plan common stock issuance 1,831 1,548 449 Net cash provided by (used in) financing activities (82,854) (78,446) 14,803 Net increase (decrease) in cash and cash equivalents (48,309) 27,808 13,347 Cash and cash equivalents at beginning of period 92,338 64,530 51,183 Cash and cash equivalents at end of period $ 44,029 $ 92,338 $ 64,530 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The factors used in the earnings per share computation follow: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Basic Net income to common stockholders $ 37,875 $ 99,105 $ 109,768 Weighted average common shares outstanding 23,208,086 24,393,954 24,736,713 Basic earnings per common share $ 1.63 $ 4.06 $ 4.44 Diluted Net income to common stockholders $ 37,875 $ 99,105 $ 109,768 Weighted average common shares outstanding 23,208,086 24,393,954 24,736,713 Dilutive effects of: Assumed exercises of stock options 78,679 90,841 130,198 Restricted stock awards 98,408 148,630 170,276 Restricted stock units 91,454 98,139 76,049 Performance stock units - market based 84,869 122,123 136,199 Performance stock units - performance based — 167,187 — Employee stock purchase plan 881 2,694 2,617 Average shares and dilutive potential common shares 23,562,377 25,023,568 25,252,052 Diluted earnings per common share $ 1.61 $ 3.96 $ 4.35 Shares that were not considered in computing diluted earnings per common share because they were antidilutive or have not met the thresholds to be considered in the dilutive calculation are as follows: Year Ended December 31, 2023 2022 2021 Stock options 100,818 49,379 16,939 Restricted stock awards — 6,348 8,463 Restricted stock units 7,500 11,250 15,000 Performance stock units - market based 12,020 45,296 — Performance stock units - performance based — — 259,383 Employee stock purchase plan — — — |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices can be fixed or variable; charged either on a periodic basis or based on activity. Except as disclosed below, the Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. Banking and Factoring Segments The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry, and the Factoring segment derives the large majority of its revenue from interest income on purchased factored receivables. The majority of such revenue streams fall under Accounting Standards Codification Topic 310, “Receivables” (“Topic 310”) which is outside the scope of Topic 606. There are, however, certain Banking and Factoring activities that generate revenue under Topic 606. Descriptions of the Company's significant Banking and Factoring revenue-generating activities within the scope of Topic 606, which are included in non-interest income in the Company's consolidated statements of income, are as follows: • Service charges on deposits . Service charges on deposits primarily consists of fees from the Company's deposit customers for account maintenance, account analysis, and overdraft services. Account maintenance fees and analysis fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. • Card income. Card income primarily consists of interchange fees. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized when the transaction processing services are provided to the cardholder. • Net OREO gains (losses) and valuation adjustments. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. • Fee income. Fee income for the Banking and Factoring segments primarily consists of transaction-based fees, including wire transfer fees, ACH and check fees, early termination fees, and other fees, earned from the Company's banking and factoring customers. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company satisfies its performance obligations. • Insurance commissions . Insurance commissions are earned for brokering insurance policies. The Company's primary performance obligations for insurance commissions are satisfied and revenue is recognized when the brokered insurance policies are executed. Payments Segment The Payments segment derives a portion of its revenue from interest income on factored receivables and commercial loans related to invoice payments. These factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Payments segment also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The balance of such commercial loans was $0 at December 31, 2023. Such revenue falls under Topic 310 and is outside the scope of Topic 606. The Payments segment under its brand name, TriumphPay, connects Brokers, Shippers, Factors and Carriers through forward-thinking solutions that help each party successfully manage the life cycle of invoice presentment for services provided by Carrier through TriumphPay’s processing and audit of such invoice to its ultimate payment to the Carrier or the Factor. The Payments segment earns transaction revenue for such services from fees paid by its customers to receive auditing and payment processing of their invoices. Transaction revenue is recorded in Fee Income on the Consolidated Statements of Income and is subject to Topic 606. Transaction fees can be variable in nature. When such fees are variable, they are typically based upon the number of audit and payment transactions executed during a stated period; generally a calendar month. The customer is charged either a set fee per transaction or a set minimum fee for a stated number of transactions with the variable component being a per-invoice amount for transactions exceeding the stated minimum number. When applicable, the stated minimum number of transactions typically resets on a monthly basis. Transaction volume and related variable fees are known and recognized at each reporting period. Transaction fees can also be fixed in nature with such fees reflecting a set annual amount that is recognized ratably over the terms of the related contracts. In both variable and fixed arrangements, customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segment also earns network fees for providing its customers access to the TriumphPay network. Network fees are recorded in Fee Income on the Consolidated Statements of Income and are subject to Topic 606. Network fees are generally a fixed annual amount and are recognized ratably over the terms of the related contracts. Customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segme nt's service comprises a single performance obligation to provide stand-ready access to its payments and audit platforms for its customers which is satisfied over time as services are rendered. Given the nature of its services and related revenue, no significant judgments are made in applying Topic 606 and there are no refund, warranty, or similar obligations. The Payments segmen t's contracts with its customers are usually short-term in nature and can generally be terminated by either party without a termination penalty or refund after the notice period has lapsed. Therefore, the contracts are defined at the transaction level and do not extend beyond the service already provided. The contracts generally renew automatically without any significant material rights. Some of the contracts include tiered pricing, which is based primarily on volume. The fee charged per transaction is adjusted up or down based on the volume processed for a specified period. Management has concluded that this volume-based pricing approach does not constitute a future material right since changes in the fee ranges are typically offered to classes of customers with similar volume. The Payments seg ment recognizes fees charged to its customers on a gross basis as transaction revenue as it is the principal in respect of completing Payments segment transactions. As a principal to the transaction, the Payments segment controls the services on its platforms. The Payments segment bears primary responsibility for the fulfillment of the services, contracts directly with its customers, controls the product specifications, and defines the value proposal from its services. Further, the Payments segment has full discretion in determining the fee charged to its customers. The Payments segment is also responsible for providing customer support. Capitalized contract costs consist of (i) deferred sales commissions that are incremental costs of obtaining customer contracts and (ii) deferred set-up costs, primarily direct payroll costs, for implementation services provided to customers prior to the launching of the Company’s products for general availability (go-live) to customers. Deferred sales commissions are amortized ratably over two years, taking into consideration the initial contract term, expected renewal periods, and sales commissions paid on such renewal periods. Deferred set-up costs are amortized ratably over four years which estimates the benefit period of the capitalized costs starting on the go-live date of the service. Deferred sales commissions and deferred set-up costs were included in other assets in the accompanying consolidated balance sheets and were $394,000 and $505,000, respectively, at December 31, 2023. Such deferred costs were not significant at December 31, 2022. The amortization of deferred sales commissions and deferred set-up costs is included in salaries and employee benefits in the consolidated statements of income and was not significant for the years ended December 31, 2023, 2022, and 2021. Given the nature of services provided, the Payments segment does not carry any material contract balances. The table below shows the Payments segment’s revenue from transaction and network fees from external customers, which are disaggregated by customer category. (Dollars in thousands) 2023 2022 2021 Broker fee income $ 12,215 $ 8,441 $ 3,480 Factor fee income 5,256 5,029 2,588 Other fee income 460 226 $ 1,383 Total fee income $ 17,931 $ 13,696 $ 7,451 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company's reportable segments are Banking, Factoring, Payments, and Corporate, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of TBK Bank's TriumphPay division, which provides a presentment, audit, and payment solution to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables and commercial loans related to invoice payments. Payments’ factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Payments segment also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The balance of such commercial loans was $0 at December 31, 2023. Prior to January 1, 2023, the majority of salaries and benefits expense for the Company's executive leadership team, as well as other selling, general, and administrative shared services costs including human resources, accounting, finance, risk management and a significant amount of information technology expense, were allocated to the Banking segment. During the quarter ended March 31, 2023 management began allocating such shared service costs to its Corporate segment. The Company continues to make considerable investments in shared services that benefit the entire organization and by moving such expenses to the Corporate segment, the Company's chief operating decision maker and investors now have greater visibility into the operating performance of each reportable segment. Prior periods were revised to reflect such allocations and achieve appropriate comparability. Separately, prior to January 1, 2023, intersegment interest expense was allocated to the Factoring and Payments segments (when the Payments segment was not self-funded) based on a rolling average of Federal Home Loan Bank advance rates. When the Payments segment was self-funded with funding in excess of its factored receivables, intersegment interest income (i.e., float) was allocated based on the Federal Funds effective rate. During the quarter ended March 31, 2023, the Company began allocating intersegment interest expense to the Factoring and Payments segments based on one-month term SOFR for their funding needs. When the Payments segment is self-funded, with funding in excess of its factored receivables, intersegment interest income will continue to be allocated based on the Federal Funds effective rate. Management believes that such intersegment interest allocations are more intuitive in the current interest rate environment. Prior periods were revised to reflect such allocations and achieve appropriate comparability. Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. Transactions between segments consist primarily of borrowed funds, payment network fees, and servicing fees. Intersegment interest expense is allocated to the Factoring and Payments segments as described above. Beginning January 1, 2023, payment network fees are paid by the Factoring segment to the Payments segment for use of the payments network. Beginning prospectively on June 1, 2023, factoring transactions with freight broker clients were transferred from the Factoring segment to the Payments segment to align with TriumphPay's supply chain finance product offerings. Such receivables are serviced by the Factoring segment for which the Payments segment pays a servicing fee. Credit loss expense is allocated based on the segment’s ACL determination. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Corporate segment. Taxes are paid on a consolidated basis and are not allocated for segment purposes. The following presents the primary operating results of Company’s operating segments. (Dollars in thousands) Year Ended December 31, 2023 Banking Factoring Payments Corporate Consolidated Total interest income $ 261,639 $ 144,217 $ 16,390 $ 175 $ 422,421 Intersegment interest allocations 31,450 (38,157) 6,707 — — Total interest expense 44,640 — — 9,702 54,342 Net interest income (expense) 248,449 106,060 23,097 (9,527) 368,079 Credit loss expense (benefit) 8,498 2,900 60 745 12,203 Net interest income (expense) after credit loss expense 239,951 103,160 23,037 (10,272) 355,876 Noninterest income 23,964 7,829 18,087 293 50,173 Noninterest expense 127,713 79,612 61,695 84,214 353,234 Net intersegment noninterest income (expense) (1) — 123 (123) — — Net income (loss) before income tax expense $ 136,202 $ 31,500 $ (20,694) $ (94,193) $ 52,815 (Dollars in thousands) Year Ended December 31, 2022 Banking Factoring Payments Corporate Consolidated Total interest income $ 195,871 $ 207,114 $ 16,079 $ 175 $ 419,239 Intersegment interest allocations 19,912 (19,382) (530) — — Total interest expense 10,874 — — 7,873 18,747 Net interest income (expense) 204,909 187,732 15,549 (7,698) 400,492 Credit loss expense (benefit) 2,753 2,895 218 1,059 6,925 Net interest income (expense) after credit loss expense 202,156 184,837 15,331 (8,757) 393,567 Noninterest income 40,984 22,272 20,620 192 84,068 Noninterest expense 121,916 91,673 63,231 63,811 340,631 Net intersegment noninterest income (expense) (1) — — — — — Net income (loss) before income tax expense $ 121,224 $ 115,436 $ (27,280) $ (72,376) $ 137,004 (Dollars in thousands) Year Ended December 31, 2021 Banking Factoring Payments Corporate Consolidated Total interest income $ 189,621 $ 185,741 $ 12,093 $ 100 $ 387,555 Intersegment interest allocations 1,132 (1,057) (75) — — Total interest expense 10,205 — — 8,220 18,425 Net interest income (expense) 180,548 184,684 12,018 (8,120) 369,130 Credit loss expense (benefit) (19,016) 9,691 438 57 (8,830) Net interest income (expense) after credit loss expense 199,564 174,993 11,580 (8,177) 377,960 Gain on sale of subsidiary or division — — — — — Other noninterest income 33,374 13,005 7,451 671 54,501 Noninterest expense 121,325 74,928 39,768 51,486 287,507 Net intersegment noninterest income (expense) (1) — — — — — Net income (loss) before income tax expense $ 111,613 $ 113,070 $ (20,737) $ (58,992) $ 144,954 (1) Net intersegment noninterest income (expense) includes: (Dollars in thousands) Factoring Payments Year Ended December 31, 2023 Factoring revenue received from Payments $ 1,190 $ (1,190) Payments revenue received from Factoring (1,067) 1,067 Net intersegment noninterest income (expense) $ 123 $ (123) Total assets and gross loans below include intersegment loans, which eliminate in consolidation. (Dollars in thousands) December 31, 2023 Banking Factoring Payments Corporate Eliminations Consolidated Total assets $ 4,918,527 $ 1,077,367 $ 546,985 $ 1,056,646 $ (2,252,191) $ 5,347,334 Gross loans $ 3,595,527 $ 941,926 $ 174,728 $ — $ (549,081) $ 4,163,100 (Dollars in thousands) December 31, 2022 Banking Factoring Payments Corporate Eliminations Consolidated Total assets $ 4,910,628 $ 1,260,209 $ 371,948 $ 1,061,662 $ (2,270,664) $ 5,333,783 Gross loans $ 3,572,716 $ 1,151,727 $ 85,722 $ — $ (689,874) $ 4,120,291 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 41,081 | $ 102,311 | $ 112,974 |
Insider Trading Arrangements
Insider Trading Arrangements - shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | |
Trading Arrangements, by Individual | ||||
Rule 10b5-1 Arrangement Adopted | false | |||
Non-Rule 10b5-1 Arrangement Adopted | false | |||
Non-Rule 10b5-1 Arrangement Terminated | false | |||
Aaron Graft [Member] | ||||
Trading Arrangements, by Individual | ||||
Material Terms of Trading Arrangement | On June 15, 2023, Mr. Aaron Graft, the Company’s Vice Chairman and Chief Executive Officer, adopted a written plan for the sale of our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Graft Trading Plan”). The Graft Trading Plan covers the sale of up to 75,000 shares of the Company’s common stock in several transactions over a period commencing after the later of (1) 90 days from the execution of the Graft Trading Plan and (2) the second trading day following the public disclosure of the Company’s financial results on Form 10-Q for the quarter ended June 30, 2023, and will cease upon the earlier of June 11, 2024 or the sale of all shares subject to the Graft Trading Plan. As of December 13, 2023, all shares subject to the Graft Trading Plan had been sold. | |||
Name | Aaron Graft | |||
Title | Vice Chairman and Chief Executive Officer | |||
Rule 10b5-1 Arrangement Adopted | true | |||
Adoption Date | June 15, 2023 | |||
Rule 10b5-1 Arrangement Terminated | true | |||
Termination Date | December 13, 2023 | |||
Aggregate Available | 75,000 | |||
Edward J. Schreyer [Member] | ||||
Trading Arrangements, by Individual | ||||
Material Terms of Trading Arrangement | On August 23, 2023, Mr. Edward J. Schreyer, the Company’s Executive Vice President and Chief Operating Officer, adopted a written plan for the sale of our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Schreyer Trading Plan”). The Schreyer Trading Plan covers the sale of up to 25,282 shares of the Company’s common stock in several transactions over a period commencing after the later of (1) 90 days from the execution of the Schreyer Trading Plan and (2) the second trading day following the public disclosure of the Company’s financial results on Form 10-Q for the quarter ended September 30, 2023, and will cease upon the earlier of March 1, 2024 or the sale of all shares subject to the Schreyer Trading Plan. As of January 29, 2024, all shares subject to Schreyer Trading Plan had been sold. | |||
Name | Edward J. Schreyer | |||
Title | Executive Vice President and Chief Operating Officer | |||
Rule 10b5-1 Arrangement Adopted | true | |||
Adoption Date | August 23, 2023 | |||
Arrangement Duration | 191 days | |||
Aggregate Available | 25,282 | |||
Adam D. Nelson [Member] | ||||
Trading Arrangements, by Individual | ||||
Material Terms of Trading Arrangement | On September 6, 2023, Mr. Adam D. Nelson, the Company’s Executive Vice President and General Counsel, adopted a written plan for the exercise and sale of non-qualified stock options to purchase our common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (the “Nelson Trading Plan”). The Nelson Trading Plan covers the exercise and sale of up to 20,160 non-qualified stock options to purchase shares of the Company’s common stock in several transactions over a period commencing after the later of (1) 90 days from the execution of the Nelson Trading Plan and (2) the second trading day following the public disclosure of the Company’s financial results on Form 10-Q for the quarter ended September 30, 2023, and will cease upon the earlier of November 29, 2024 or the sale of all shares subject to the Nelson Trading Plan. | |||
Name | Adam D. Nelson | |||
Title | Executive Vice President and General Counsel | |||
Rule 10b5-1 Arrangement Adopted | true | |||
Adoption Date | September 6, 2023 | |||
Arrangement Duration | 450 days | |||
Aggregate Available | 20,160 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Triumph Financial, Inc. (collectively with its subsidiaries, “Triumph Financial”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas, offering a diversified line of payments, factoring and banking services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Triumph Financial Services LLC ("Triumph Financial Services"), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). TriumphPay operates as a division of TBK Bank, SSB. On December 1, 2022 we completed an extensive marketing rebranding effort, including a change of the company name from Triumph Bancorp, Inc. to Triumph Financial, Inc. and a change of our factoring subsidiary's company name from Triumph Business Capital LLC to Triumph Financial Services LLC ("Triumph Financial Services"). Said rebranding efforts had no impact to the composition of legal entities, financial reporting, employee roles, management structure, or work activities and expectations. See Note 2 – Acquisitions and Divestitures for additional information pertaining to the TPF sale and the impact of the transaction on the Company’s consolidated financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The Company consolidates subsidiaries in which it holds, directly or indirectly, a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under U.S. generally accepted accounting principles (“GAAP”). Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has at least a majority of the voting interest. Variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. In consolidation, all significant intercompany accounts and transactions are eliminated. Investments in unconsolidated entities are accounted for using the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions. Investments that do not meet the criteria for equity method accounting are accounted for using the cost method of accounting. The accounting and reporting policies of the Company and its subsidiaries conform to GAAP and general practice within the banking industry. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company uses the accrual basis of accounting for financial reporting purposes. |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, other short-term investments and federal funds sold. All highly liquid investments with an initial maturity of less than 90 days are considered to be cash equivalents. Certain items, including loan and deposit transactions, customer repurchase agreements, and FHLB advances and repayments, are presented net in the statement of cash flows. |
Debt Securities | Debt Securities The Company determines the classification of debt securities at the time of purchase. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Debt securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity using the interest method, except for premiums on callable debt securities, which are amortized to their earliest call date. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest in other assets in the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2023, 2022 and 2021. Allowance for Credit Losses – Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in such a situation. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the estimate of credit losses. Allowance for Credit Losses – Held to Maturity Securities The allowance for credit losses on held to maturity securities is estimated on a collective basis by major security type. At December 31, 2023 and 2022, the Company’s held to maturity securities consisted of investments in the subordinated notes of collateralized loan obligation (“CLO”) funds. Expected credit losses for these securities are estimated using a discounted cash flow methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Ultimately, the realized cash flows on CLO securities such as these will be driven by a variety of factors, including credit performance of the underlying loan portfolio, adjustments to the portfolio by the asset manager, and the timing of a potential call. Accrued interest receivable is excluded from the estimate of credit losses. |
Equity Securities | Equity Securities Equity securities with readily determinable fair values are recorded at fair value, with realized and unrealized gains and losses included in earnings. Equity securities without readily determinable fair values are recorded at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. |
Loans Held for Sale | Loans Held for Sale The Company elects the fair value option for recording 1-4 family residential mortgage loans and commercial loans held for sale. The fair value of loans held for sale is determined based on outstanding commitments from investors to purchase such loans or prevailing market rates. Increases or decreases in the fair value of loans held for sale, if any, are charged to earnings and are recorded in noninterest income in the consolidated statements of income. Gains and losses on sales of loans are based on the difference between the final selling price and the carrying value of the related loan sold. Mortgage loans held for sale are generally sold with servicing rights released. Management occasionally transfers loans held for investment to loans held for sale. Gains or losses on the transfer of loans to loans held for sale are recorded in noninterest income in the consolidated statements of income unless such loans have experienced a decline in fair value due to credit quality concerns. For such transfers experiencing a decline in fair value due to credit quality, the Company first applies its charge-off policy which requires recognizing the confirmed loss via a charge-off against the allowance for credit losses which is measured as the excess of the loan's amortized cost basis over the loan's fair value. The charge-off is reflected as a write-down of the loan resulting in a new amortized cost basis. To the extent that the loan’s fair value loss has not already been provided for in the allowance for credit losses, an additional credit loss expense is made to provide sufficient allowance to absorb the charge-off. If the allowance for credit losses amount on the transferred loan at the transfer date to the held for sale category exceeds the amount of the charge-off, any remaining excess allowance for credit loss is reversed into earnings through credit loss expense. After the write-down is taken, the loans is transferred from held to investment to held for sale at its new amortized cost basis which approximates fair value. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost basis, which is the unpaid principal balance outstanding, net of unearned income, deferred loan fees and costs, premiums and discounts associated with acquisition date fair value adjustments on acquired loans, and any direct principal charge-offs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the remaining life of the loan without anticipating prepayments. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income on loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection, or if full collection of interest or principal becomes uncertain. Consumer loans are typically charged off no later than 120 days past due. All interest accrued but not received for a loan placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Factored Receivables The Company purchases invoices from its factoring clients in schedules or batches. To a much lesser extent, the Company will also make short-term advances to its clients on transportation contracts for upcoming loads. Cash is advanced to the client to the extent of the applicable advance rate, less fees, as set forth in the individual factoring agreements. The face value of the invoices purchased or amount advanced is recorded by the Company as factored receivables, and the unadvanced portions of the invoices purchased, less fees, are considered client reserves. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits in the consolidated balance sheets. Unearned factoring fees and unearned net origination fees are deferred and recognized over the weighted average collection period for each client. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include wire transfer fees, carrier payment fees, fuel advance fees, and other similar fees, are reported by the Company as non-interest income. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various 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 a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income or expense on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Credit Losses – Loans Under the current expected credit loss model, the allowance for credit losses on loans is a valuation allowance estimated at each balance sheet date in accordance with US GAAP that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL. Expected credit losses are reflected in the allowance for credit losses through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company’s methodologies for estimating the ACL consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company’s methodologies revert back to historical loss information on a straight-line basis over eight quarters when it can no longer develop reasonable and supportable forecasts. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Commercial Real Estate — This category of loans consists of the following loan types: Non-farm Non-residential — This category includes real estate loans for a variety of commercial property types and purposes, including owner occupied commercial real estate loans primarily secured by commercial office or industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. Repayment terms vary considerably, interest rates are fixed or variable, and are structured for full, partial, or no amortization of principal. This category also includes investment real estate loans that are primarily secured by office and industrial buildings, warehouses, small retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Multi-family residential — Investment real estate loans are primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Construction, land development, land —This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third-party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. 1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans. Farmland — These loans are principally loans to purchase farmland. Commercial — Commercial loans are loans for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, and other business loans for working capital and operational purposes. Commercial loans are generally secured by accounts receivable, inventory and other business assets. Agriculture — These are commercial loans made principally to finance agricultural operations. Equipment — Equipment finance loans are commercial loans primarily secured by new or used revenue producing, essential-use equipment from major manufacturers that is movable, may be used in more than one type of business, and generally has broad resale markets. Core markets include transportation, construction, and waste. Loan terms do not exceed the economic life of the equipment and typically are 60 months or less . Asset-based Lending — These loans are originated to borrowers to support general working capital needs. The asset-based loan structure involves advances of loan proceeds against a borrowing base which typically consists of accounts receivable, identified readily marketable inventory, or other collateral of the borrower. The maximum amount a customer may borrow at any time is fixed as a percentage of the borrowing base outstanding. Liquid Credit — Broadly syndicated leveraged loans collateralized by a variety of collateral types. Factored Receivables — The Company operates as a factor by purchasing accounts receivable from its clients, then collecting the receivable from the account debtor. The Company’s smaller factoring relationships are typically structured as “non-recourse” relationships ( i.e. , the Company retains the credit risk associated with the ability of the account debtor on a purchased invoice to ultimately make payment) and the Company’s larger factoring relationships are typically structured as “recourse” relationships ( i.e. , the Company’s client agrees to repurchase any invoices for which payment is not ultimately received from the account debtor). Advances initially made to the client to acquire the receivables are typically at a discount to the invoice value. The discount balance is held in client reserves, net of the Company’s compensation. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Consumer — Loans used for personal use, typically on an unsecured basis, and client overdrafts. Mortgage Warehouse — Mortgage Warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third-party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company has a policy that requires that it separately validate that each residential mortgage loan was underwritten consistent with the underwriting requirements of the final investor or market standards prior to advancing funds. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Discounted Cash Flow Method The Company uses the discounted cash flow method to estimate expected credit losses for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery tends to be less sensitive than other assumptions and such assumptions are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts national unemployment as a loss driver. Management also utilizes and forecasts either one-year percentage change in national retail sales, one-year percentage change in the national home price index, or one-year percentage change in national gross domestic product as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third-party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An ACL is established for the difference between the instrument’s NPV and its amortized cost basis. Loss-Rate Method The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, premium finance, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Collateral Dependent Financial Assets Loans the Company has identified as collateral dependent that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets, the ACL is measured based on the difference between the fair value of the collateral plus other sources of repayment and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. Prior to January 1, 2023, a loan that had been modified or renewed was considered a troubled debt restructuring (“TDR”) when two conditions were met: 1) the borrower was experiencing financial difficulty and 2) concessions were made for the borrower's benefit that would not otherwise have been considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACL reflected all effects of a TDR when an individual asset was specifically identified as a reasonably expected TDR. The Company had determined that a TDR was reasonably expected no later than the point when the lender concluded that modification was the best course of action and it was at least reasonably possible that the troubled borrower would accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed non-performing TDRs were evaluated individually to determine the required ACL. Subsequent to December 31, 2022, the TDR concept, and its impact on the ACL calculation, was eliminated in favor of disclosure of loan modifications made to troubled borrowers. Such modifications made to troubled borrowers are now subject to the Company's standard ACL process as previously disclosed. Paycheck Protection Program ("PPP") With the passage of the PPP, the Company has actively participated in assisting its customers with applications for loans through the program. Loans funded through the PPP program are fully guaranteed by the U.S. government subject to certain representations and warranties. This guarantee exists at the inception of the loans and throughout the lives of the loans and was not entered into separately and apart from the loans. ASC 326 requires credit enhancements that mitigate credit losses, such as the U.S. government guarantee on PPP loans, to be considered in estimating credit losses. The guarantee is considered “embedded” and, therefore, is considered when estimating credit loss on the PPP loans. Given that the loans are fully guaranteed by the U.S. government and absent any specific loss information on any of our PPP loans, the Company did not carry an ACL on its PPP loans at December 31, 2023 and 2022. The balance of PPP loans at December 31, 2023 was insignificant. Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commitments to purchase broadly syndicated loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to credit loss expense in the Company’s consolidated statements of income. The ACL on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in other liabilities on the Company’s consolidated balance sheets. |
Federal Home Loan Bank ("FHLB") Stock | Federal Home Loan Bank (“FHLB”) Stock The Company is a member of the FHLB system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from five three The Company leases certain properties and equipment under operating leases. The Company recognizes a liability to make lease payments, the “lease liability”, and an asset representing the right to use the underlying asset during the lease term, the “right-of-use asset”. The lease liability is measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use asset. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. The Company’s leases do not contain residual value guarantees or material variable lease payments. The Company does not have any material restrictions or covenants imposed by leases that would impact the Company’s ability to pay dividends or cause the Company to incur additional financial obligations. The Company has made an accounting policy election to not apply the recognition requirements to short-term leases. The Company has also elected to use the practical expedient to make an accounting policy election for property leases to include both lease and non-lease components as a single component and account for it as a lease. The Company’s leases are not complex; therefore there were no significant assumptions or judgements made as part of the determination of whether the contracts contained a lease, the allocation of consideration in the contracts between lease and non-lease components, and the determination of the discount rates for the leases. |
Foreclosed Assets | Foreclosed Assets Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan and lease losses. After foreclosure, foreclosed assets are carried at the lower of the recorded investment in the asset or the fair value less costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Goodwill | Goodwill Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. The Company’s annual goodwill impairment testing date is October 1st. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualitative method, that the fair value is more likely than not less than the carrying amount, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the Company will record an impairment charge based on that difference. Our annual goodwill impairment test did not identify any goodwill impairment for the years ended December 31, 2023, 2022 and 2021. |
Identifiable Intangible Assets | Identifiable Intangible Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets primarily relate to core deposits, customer relationships and software. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value with a charge to amortization of intangible assets. Intangible assets with indefinite lives are not significant. |
Software Developed for Internal Use | Software Developed for Internal Use The Company capitalizes internal and external costs related to internal-use software during the application development stage, including consulting costs and compensation expenses related to employees who devote time to the development of the projects. The Company records capitalized software development costs in other assets in the Consolidated Balance Sheets. Costs incurred in preliminary stages of development activities and post implementation activities are expensed in the period incurred. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Once the software is substantially complete and ready for its intended use, capitalization ceases and the asset is amortized straight line over its estimated useful life, which ranges between three |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. The Company did not have any derivatives at December 31, 2023 and 2022. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. Unrealized gains or losses are reported as other comprehensive income or loss. To qualify for the use of hedge accounting, a derivative must be effective at inception and expected to be continuously effective in offsetting the risk being hedged. A statistical regression analysis is performed at inception and at each reporting period thereafter to evaluate hedge effectiveness. In accordance with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
Income Taxes | Income Taxes The Company files a consolidated tax return with its subsidiaries and is taxed as a C corporation. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in income tax expense. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that may use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and/or the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Changes in assumptions or in market conditions could significantly affect these estimates. In the ordinary course of business, the Company generally does not sell or transfer non-impaired loans and deposits. As such, the disclosures that present the December 31, 2023 and 2022 estimated fair value for non-impaired loans and deposits are judgmental and may not represent amounts to be received if the Company were to sell or transfer such items. |
Operating Segments | Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of Triumph Financial, Inc. Management has determined that the Company has four reportable segments consisting of Banking, Factoring, Payments, and Corporate. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of the TBK Bank's TriumphPay division, which is the payments network for presentment, audit, and payment of over-the-road trucking invoices. The Payments segment derives its revenue from transaction fees and interest income on factored receivables related to invoice payments. Payments’ factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. Payments also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The Corporate segment includes holding company financing and investment activities as well as management and administrative expenses that support the overall operations of the Company such as human resources, accounting, finance, risk management and information technology expense. For further discussion of management's operating segments and allocation methodology, see Note 24 – Business Segment Information. The Company's reportable segments are Banking, Factoring, Payments, and Corporate, which have been determined based upon their business processes and economic characteristics. This determination also gave consideration to the structure and management of various product lines. The Banking segment includes the operations of TBK Bank. The Banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The Factoring segment includes the operations of Triumph Financial Services with revenue derived from factoring services. The Payments segment includes the operations of TBK Bank's TriumphPay division, which provides a presentment, audit, and payment solution to Shipper, Broker, and Factor clients in the trucking industry. The Payments segment derives its revenue from transaction fees and interest income on factored receivables and commercial loans related to invoice payments. Payments’ factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Payments segment also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The balance of such commercial loans was $0 at December 31, 2023. Prior to January 1, 2023, the majority of salaries and benefits expense for the Company's executive leadership team, as well as other selling, general, and administrative shared services costs including human resources, accounting, finance, risk management and a significant amount of information technology expense, were allocated to the Banking segment. During the quarter ended March 31, 2023 management began allocating such shared service costs to its Corporate segment. The Company continues to make considerable investments in shared services that benefit the entire organization and by moving such expenses to the Corporate segment, the Company's chief operating decision maker and investors now have greater visibility into the operating performance of each reportable segment. Prior periods were revised to reflect such allocations and achieve appropriate comparability. Separately, prior to January 1, 2023, intersegment interest expense was allocated to the Factoring and Payments segments (when the Payments segment was not self-funded) based on a rolling average of Federal Home Loan Bank advance rates. When the Payments segment was self-funded with funding in excess of its factored receivables, intersegment interest income (i.e., float) was allocated based on the Federal Funds effective rate. During the quarter ended March 31, 2023, the Company began allocating intersegment interest expense to the Factoring and Payments segments based on one-month term SOFR for their funding needs. When the Payments segment is self-funded, with funding in excess of its factored receivables, intersegment interest income will continue to be allocated based on the Federal Funds effective rate. Management believes that such intersegment interest allocations are more intuitive in the current interest rate environment. Prior periods were revised to reflect such allocations and achieve appropriate comparability. Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on debt securities available for sale and cash flow hedges, net of taxes, which are also recognized as a separate component of equity. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe such matters exist that will have a material effect on the financial statements. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be relinquished when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the transferee to return specific assets. |
Stock-Based Compensation | Stock Based Compensation Compensation cost is recognized for stock based payment awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, a Monte Carlo simulation is utilized to estimate the fair value of market based performance stock units, and the market price of the Company’s common stock at the date of grant is used for restricted stock awards, restricted stock units, and performance based performance stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. The Company recognizes forfeitures of nonvested awards as they occur. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is net income less dividends on preferred stock divided by the weighted average number of common shares outstanding during the period excluding nonvested restricted stock awards. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock warrants, restricted stock, stock options, and preferred shares that are convertible to common shares. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Adoption of New Accounting Standards and Newly Issued, But Not Yet Effective Accounting Standards | Adoption of New Accounting Standards In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings ("TDRs") in ASC 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the current expected credit loss ("CECL") model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13"). ASU 2022-02 also requires that public business entities disclose current-period gross charge-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 Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. See Note 4 – Loans and Allowance for Credit Losses for new disclosures required by ASU 2022-02. Newly Issued, But Not Yet Effective Accounting Standards In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 Requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity’s chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. ASU 2023-07 is effective for the Company for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update its segment related disclosures upon adoption. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company will update its income tax disclosures upon adoption. |
Revenue Recognition | The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices can be fixed or variable; charged either on a periodic basis or based on activity. Except as disclosed below, the Company presents disaggregated revenue from contracts with customers in the consolidated statements of income. Banking and Factoring Segments The Banking segment derives its revenue principally from investments in interest-earning assets as well as noninterest income typical for the banking industry, and the Factoring segment derives the large majority of its revenue from interest income on purchased factored receivables. The majority of such revenue streams fall under Accounting Standards Codification Topic 310, “Receivables” (“Topic 310”) which is outside the scope of Topic 606. There are, however, certain Banking and Factoring activities that generate revenue under Topic 606. Descriptions of the Company's significant Banking and Factoring revenue-generating activities within the scope of Topic 606, which are included in non-interest income in the Company's consolidated statements of income, are as follows: • Service charges on deposits . Service charges on deposits primarily consists of fees from the Company's deposit customers for account maintenance, account analysis, and overdraft services. Account maintenance fees and analysis fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. • Card income. Card income primarily consists of interchange fees. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized when the transaction processing services are provided to the cardholder. • Net OREO gains (losses) and valuation adjustments. The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. • Fee income. Fee income for the Banking and Factoring segments primarily consists of transaction-based fees, including wire transfer fees, ACH and check fees, early termination fees, and other fees, earned from the Company's banking and factoring customers. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company satisfies its performance obligations. • Insurance commissions . Insurance commissions are earned for brokering insurance policies. The Company's primary performance obligations for insurance commissions are satisfied and revenue is recognized when the brokered insurance policies are executed. Payments Segment The Payments segment derives a portion of its revenue from interest income on factored receivables and commercial loans related to invoice payments. These factored receivables consist of (i) invoices where we offer a Carrier a quick pay opportunity to receive payment at a discount in advance of the standard payment term for such invoice in exchange for the assignment of such invoice to us and (ii) factoring transactions where we purchase receivables payable to such freight brokers from their shipper clients. The Payments segment also offers commercial loans that result from our offering certain Brokers an additional liquidity option through the ability to settle their invoices with us on an extended term following our payment to their Carriers. The balance of such commercial loans was $0 at December 31, 2023. Such revenue falls under Topic 310 and is outside the scope of Topic 606. The Payments segment under its brand name, TriumphPay, connects Brokers, Shippers, Factors and Carriers through forward-thinking solutions that help each party successfully manage the life cycle of invoice presentment for services provided by Carrier through TriumphPay’s processing and audit of such invoice to its ultimate payment to the Carrier or the Factor. The Payments segment earns transaction revenue for such services from fees paid by its customers to receive auditing and payment processing of their invoices. Transaction revenue is recorded in Fee Income on the Consolidated Statements of Income and is subject to Topic 606. Transaction fees can be variable in nature. When such fees are variable, they are typically based upon the number of audit and payment transactions executed during a stated period; generally a calendar month. The customer is charged either a set fee per transaction or a set minimum fee for a stated number of transactions with the variable component being a per-invoice amount for transactions exceeding the stated minimum number. When applicable, the stated minimum number of transactions typically resets on a monthly basis. Transaction volume and related variable fees are known and recognized at each reporting period. Transaction fees can also be fixed in nature with such fees reflecting a set annual amount that is recognized ratably over the terms of the related contracts. In both variable and fixed arrangements, customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segment also earns network fees for providing its customers access to the TriumphPay network. Network fees are recorded in Fee Income on the Consolidated Statements of Income and are subject to Topic 606. Network fees are generally a fixed annual amount and are recognized ratably over the terms of the related contracts. Customers are typically billed monthly in arrears with payment due on 30 day terms and as such, no revenue is deferred. The Payments segme nt's service comprises a single performance obligation to provide stand-ready access to its payments and audit platforms for its customers which is satisfied over time as services are rendered. Given the nature of its services and related revenue, no significant judgments are made in applying Topic 606 and there are no refund, warranty, or similar obligations. The Payments segmen t's contracts with its customers are usually short-term in nature and can generally be terminated by either party without a termination penalty or refund after the notice period has lapsed. Therefore, the contracts are defined at the transaction level and do not extend beyond the service already provided. The contracts generally renew automatically without any significant material rights. Some of the contracts include tiered pricing, which is based primarily on volume. The fee charged per transaction is adjusted up or down based on the volume processed for a specified period. Management has concluded that this volume-based pricing approach does not constitute a future material right since changes in the fee ranges are typically offered to classes of customers with similar volume. The Payments seg ment recognizes fees charged to its customers on a gross basis as transaction revenue as it is the principal in respect of completing Payments segment transactions. As a principal to the transaction, the Payments segment controls the services on its platforms. The Payments segment bears primary responsibility for the fulfillment of the services, contracts directly with its customers, controls the product specifications, and defines the value proposal from its services. Further, the Payments segment has full discretion in determining the fee charged to its customers. The Payments segment is also responsible for providing customer support. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Carrying Amount of Assets in Disposal Group and Gain on Sale | A summary of the carrying amount of the assets sold and the gain on sale is as follows: (Dollars in thousands) Equipment loans $ 191,167 Accrued interest receivable $ 1,587 Assets sold $ 192,754 Cash consideration $ 197,454 Return of premium liability $ (708) Total consideration $ 196,746 Transaction costs $ 73 Gain on sale, net of transaction costs $ 3,919 (Dollars in thousands) June 30, 2022 September 6, 2022 Total Factored receivables $ 67,888 $ 20,131 $ 88,019 Accrued interest and fee income — 17 17 Assets held for sale $ 67,888 $ 20,148 $ 88,036 Customer reserve noninterest bearing deposits $ 9,682 $ 1,149 $ 10,831 Liabilities held for sale $ 9,682 $ 1,149 $ 10,831 Net assets sold $ 58,206 $ 18,999 $ 77,205 Cash consideration $ 66,292 $ 19,054 $ 85,346 Revenue share asset 5,210 1,027 6,237 Total consideration $ 71,502 $ 20,081 $ 91,583 Transaction costs 82 49 131 Gain on sale, net of transaction costs $ 13,214 $ 1,033 $ 14,247 |
Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: (Dollars in thousands) Initial Values Measurement Period Adjustments Adjusted Values Assets acquired: Cash $ 170 $ — $ 170 Intangible assets - capitalized software 16,932 — 16,932 Intangible assets - customer relationship 10,360 — 10,360 Other assets 1,546 24 1,570 29,008 24 29,032 Liabilities assumed: Deferred income taxes 4,703 (3,248) 1,455 Other liabilities 906 16 922 5,609 (3,232) 2,377 Fair value of net assets acquired $ 23,399 $ 3,256 $ 26,655 Consideration: Cash paid $ 97,096 $ — $ 97,096 Goodwill $ 73,697 $ (3,256) $ 70,441 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities | The gross realized and unrealized gains (losses) recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: (Dollars in thousands) 2023 2022 2021 Unrealized gains (losses) on equity securities still held at the reporting date $ 62 $ (313) $ (322) Realized gains (losses) on equity securities sold during the period 18 — — $ 80 $ (313) $ (322) The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Unrealized gains (losses) on equity securities still held at the reporting date $ — $ 10,163 $ — Realized gains (losses) on equity securities sold during the period — — — $ — $ 10,163 $ — |
Summary of Equity Securities without Readily Determinable Fair Value | The following table summarizes the Company's investments in equity securities without readily determinable fair values: (Dollars in thousands) December 31, 2023 December 31, 2022 Equity Securities without readily determinable fair value, at cost $ 65,814 $ 39,019 Upward adjustments based on observable price changes, cumulative 10,163 10,163 Equity Securities without readily determinable fair value, carrying value $ 75,977 $ 49,182 |
Schedule of Amortized Cost of Securities and Their Estimated Fair Values | Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities: (Dollars in thousands) Amortized Gross Gross Allowance for Credit Losses Fair December 31, 2023 Available for sale securities: Mortgage-backed securities, residential $ 60,411 $ 221 $ (4,793) $ — $ 55,839 Asset-backed securities 1,188 — (18) — 1,170 State and municipal 4,560 1 (46) — 4,515 CLO Securities 235,484 1,137 (330) — 236,291 Corporate bonds 268 7 — — 275 SBA pooled securities 1,642 3 (91) — 1,554 Total available for sale securities $ 303,553 $ 1,369 $ (5,278) $ — $ 299,644 (Dollars in thousands) Amortized Gross Gross Fair December 31, 2023 Held to maturity securities: CLO securities $ 6,167 $ 30 $ (2,182) $ 4,015 Allowance for credit losses (3,190) Total held to maturity securities, net of ACL $ 2,977 (Dollars in thousands) Amortized Gross Gross Allowance for Credit Losses Fair December 31, 2022 Available for sale securities: Mortgage-backed securities, residential $ 55,329 $ 235 $ (4,931) $ — $ 50,633 Asset-backed securities 6,389 — (58) — 6,331 State and municipal 13,553 1 (116) — 13,438 CLO Securities 185,068 161 (4,218) — 181,011 Corporate bonds 1,270 1 (8) — 1,263 SBA pooled securities 1,910 29 (111) — 1,828 Total available for sale securities $ 263,519 $ 427 $ (9,442) $ — $ 254,504 (Dollars in thousands) Amortized Gross Gross Fair December 31, 2022 Held to maturity securities: CLO securities $ 6,521 $ 458 $ (1,503) $ 5,476 Allowance for credit losses (2,444) Total held to maturity securities, net of ACL $ 4,077 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities at December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Securities Held to Maturity Securities (Dollars in thousands) Amortized Fair Amortized Fair Due in one year or less $ 357 $ 356 $ — $ — Due from one year to five years 2,434 2,404 4,766 2,584 Due from five years to ten years 69,494 69,516 1,401 1,431 Due after ten years 168,027 168,805 — — 240,312 241,081 6,167 4,015 Mortgage-backed securities, residential 60,411 55,839 — — Asset-backed securities 1,188 1,170 — — SBA pooled securities 1,642 1,554 — — $ 303,553 $ 299,644 $ 6,167 $ 4,015 |
Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses | Proceeds from sales of debt securities and the associated gross gains and losses are as follows: (Dollars in thousands) 2023 2022 2021 Proceeds $ 15,996 $ 40,163 $ — Gross gains 103 2,514 — Gross losses — — — Net gains and losses from calls of securities (1) (2) 5 |
Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position with No Allowance | The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2023 Available for sale securities: Mortgage-backed securities, residential $ 13,157 $ (312) $ 32,885 $ (4,481) $ 46,042 $ (4,793) Asset-backed securities 1,170 (18) — — 1,170 (18) State and municipal 975 (13) 2,424 (33) 3,399 (46) CLO Securities 2,576 (13) 42,735 (317) 45,311 (330) Corporate bonds — — — — — — SBA pooled securities 216 (9) 1,059 (82) 1,275 (91) Total available for sale securities $ 18,094 $ (365) $ 79,103 $ (4,913) $ 97,197 $ (5,278) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2022 Available for sale securities: Mortgage-backed securities, residential 26,030 (1,507) 15,828 (3,424) 41,858 (4,931) Asset-backed securities 1,337 (52) 4,994 (6) 6,331 (58) State and municipal 12,680 (116) — — 12,680 (116) CLO Securities 151,572 (3,407) 19,439 (811) 171,011 (4,218) Corporate bonds 261 (8) — — 261 (8) SBA pooled securities 1,262 (111) — — 1,262 (111) Total available for sale securities $ 193,142 $ (5,201) $ 40,261 $ (4,241) $ 233,403 $ (9,442) |
Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities | The following table presents the activity in the allowance for credit losses for held to maturity debt securities: (Dollars in thousands) Year Ended December 31, Held to Maturity CLO Securities 2023 2022 2021 Allowance for credit losses: Beginning balance $ 2,444 $ 2,082 $ 2,026 Credit loss expense (benefit) 746 362 56 Allowance for credit losses ending balance $ 3,190 $ 2,444 $ 2,082 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Held for Sale | The following table presents loans held for sale: (Dollars in thousands) December 31, 2023 December 31, 2022 1-4 family residential $ 1,230 $ — Commercial 6 5,641 Total loans held for sale $ 1,236 $ 5,641 |
Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment | The following table presents the amortized cost and unpaid principal for loans held for investment: December 31, 2023 December 31, 2022 (Dollars in thousands) Amortized Cost Unpaid Difference Amortized Cost Unpaid Difference Commercial real estate $ 812,704 $ 813,623 $ (919) $ 678,144 $ 679,239 $ (1,095) Construction, land development, land 136,720 137,209 (489) 90,976 91,147 (171) 1-4 family residential properties 125,916 126,096 (180) 125,981 126,185 (204) Farmland 63,568 63,728 (160) 68,934 69,185 (251) Commercial 1,170,365 1,176,243 (5,878) 1,251,110 1,262,493 (11,383) Factored receivables 1,116,654 1,119,544 (2,890) 1,237,449 1,241,032 (3,583) Consumer 8,326 8,328 (2) 8,868 8,871 (3) Mortgage warehouse 728,847 728,847 — 658,829 658,829 — Total 4,163,100 $ 4,173,618 $ (10,518) 4,120,291 $ 4,136,981 $ (16,690) Allowance for credit losses (35,219) (42,807) $ 4,127,881 $ 4,077,484 |
Summary of Allowance for Loan and Lease Losses | The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows: (Dollars in thousands) Beginning Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Year ended December 31, 2023 Commercial real estate $ 4,459 $ 1,593 $ (108) $ 86 $ 6,030 Construction, land development, land 1,155 (195) — 5 965 1-4 family residential properties 838 82 (5) 12 927 Farmland 483 (41) — — 442 Commercial 15,918 7,712 (9,804) 234 14,060 Factored receivables 19,121 2,961 (10,997) 811 11,896 Consumer 175 44 (563) 515 171 Mortgage warehouse 658 70 — — 728 $ 42,807 $ 12,226 $ (21,477) $ 1,663 $ 35,219 (Dollars in thousands) Beginning Credit Loss Expense (Benefit) Charge-offs Recoveries Ending Balance Year ended December 31, 2022 Commercial real estate $ 3,961 $ 546 $ (108) $ 60 $ 4,459 Construction, land development, land 827 323 — 5 1,155 1-4 family residential properties 468 363 — 7 838 Farmland 562 (79) — — 483 Commercial 14,485 2,713 (2,205) 925 15,918 Factored receivables 20,915 3,045 (5,853) 1,014 19,121 Consumer 226 239 (435) 145 175 Mortgage warehouse 769 (111) — — 658 $ 42,213 $ 7,039 $ (8,601) $ 2,156 $ 42,807 (Dollars in thousands) Beginning Provision Charge-offs Recoveries Ending Year ended December 31, 2021 Commercial real estate $ 10,182 $ (6,214) $ (17) $ 10 $ 3,961 Construction, land development, land 3,418 (2,584) (12) 5 827 1-4 family residential properties 1,225 (849) (34) 126 468 Farmland 832 (270) — — 562 Commercial 22,040 (7,725) (481) 651 14,485 Factored receivables 56,463 10,038 (46,043) 457 20,915 Consumer 542 (92) (359) 135 226 Mortgage warehouse 1,037 (268) — — 769 $ 95,739 $ (7,964) $ (46,946) $ 1,384 $ 42,213 |
Individual And Collective Allowance For Credit Losses On Financing Receivables And Loan Balances | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans: (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL December 31, 2023 Commercial real estate $ 2,518 $ — $ — $ — $ 2,518 $ 777 Construction, land development, land — — — — — — 1-4 family residential 1,156 — — 22 1,178 113 Farmland 291 — — 677 968 — Commercial 920 — 18,259 21,772 40,951 3,322 Factored receivables — 39,577 — — 39,577 6,717 Consumer — — — 133 133 — Mortgage warehouse — — — — — — Total $ 4,885 $ 39,577 $ 18,259 $ 22,604 $ 85,325 $ 10,929 (Dollars in thousands) Real Estate Accounts Equipment Other Total ACL December 31, 2022 Commercial real estate $ 1,003 $ — $ — $ 140 $ 1,143 $ 283 Construction, land development, land 150 — — — 150 — 1-4 family residential 1,342 — — 49 1,391 108 Farmland 196 — 108 96 400 — Commercial 193 — 5,334 10,370 15,897 4,737 Factored receivables — 42,409 — — 42,409 13,042 Consumer — — — 91 91 — Mortgage warehouse — — — — — — Total $ 2,884 $ 42,409 $ 5,442 $ 10,746 $ 61,481 $ 18,170 |
Summary of Contractually Past Due and Nonaccrual Loans | The following tables present an aging of contractually past due loans: (Dollars in thousands) Past Due Past Due Past Due 90 Total Past Due Current Total Past Due 90 December 31, 2023 Commercial real estate $ — $ 74 $ 1,369 $ 1,443 $ 811,261 $ 812,704 $ — Construction, land development, land — — — — 136,720 136,720 — 1-4 family residential properties 680 639 309 1,628 124,288 125,916 — Farmland 173 — — 173 63,395 63,568 — Commercial 4,585 4,699 5,423 14,707 1,155,658 1,170,365 — Factored receivables 32,177 6,438 26,332 64,947 1,051,707 1,116,654 26,332 Consumer 44 96 31 171 8,155 8,326 — Mortgage warehouse — — — — 728,847 728,847 — $ 37,659 $ 11,946 $ 33,464 $ 83,069 $ 4,080,031 $ 4,163,100 $ 26,332 (Dollars in thousands) Past Due Past Due Past Due 90 Total Past Due Current Total Past Due 90 December 31, 2022 Commercial real estate $ 1,301 $ — $ 455 $ 1,756 $ 676,388 $ 678,144 $ — Construction, land development, land — — 145 145 90,831 90,976 — 1-4 family residential properties 936 531 776 2,243 123,738 125,981 — Farmland — — — — 68,934 68,934 — Commercial 1,630 3,139 2,847 7,616 1,243,494 1,251,110 — Factored receivables 42,797 12,651 37,142 92,590 1,144,859 1,237,449 37,142 Consumer 52 41 2 95 8,773 8,868 — Mortgage warehouse — — — — 658,829 658,829 — $ 46,716 $ 16,362 $ 41,367 $ 104,445 $ 4,015,846 $ 4,120,291 $ 37,142 |
Summary of Amortized Cost Basis of Loans on Nonaccrual Status | The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses: December 31, 2023 December 31, 2022 (Dollars in thousands) Total Nonaccrual Nonaccrual Total Nonaccrual Nonaccrual Commercial real estate $ 2,447 $ 190 $ 871 $ 319 Construction, land development, land — — 150 150 1-4 family residential 1,178 1,028 1,391 1,238 Farmland 968 968 400 400 Commercial 40,951 33,188 15,393 3,662 Factored receivables — — — — Consumer 133 133 91 91 Mortgage warehouse — — — — $ 45,677 $ 35,507 $ 18,296 $ 5,860 |
Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income | The following table presents accrued interest on nonaccrual loans reversed through interest income: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Commercial real estate $ 17 $ — $ 8 Construction, land development, land — 2 — 1-4 family residential 8 1 3 Farmland 57 — 6 Commercial 105 28 36 Factored receivables — — — Consumer 4 — 3 Mortgage warehouse — — — $ 191 $ 31 $ 56 |
Schedule of Nonperforming Loans | The following table presents information regarding nonperforming loans: (Dollars in thousands) December 31, 2023 December 31, 2022 Nonaccrual loans $ 45,677 $ 18,296 Factored receivables greater than 90 days past due 23,181 28,940 Other nonperforming factored receivables (1) — 491 Troubled debt restructurings accruing interest — 503 $ 68,858 $ 48,230 (1) Other nonperforming factored receivables represent the portion of the Over-Formula Advance Portfolio that is not covered by Covenant's indemnification. This amount is also considered Classified from a risk rating perspective. |
Summary of Risk Category of Loans | As of December 31, 2023 and 2022, based on the most recent analysis performed, the risk category of loans is as follows: Revolving Revolving Total (Dollars in thousands) Year of Origination December 31, 2023 2023 2022 2021 2020 2019 Prior Commercial real estate Pass $ 244,388 $ 119,169 $ 98,484 $ 116,078 $ 16,351 $ 34,724 $ 88,547 $ 159 $ 717,900 Classified 91,456 665 1,630 1,016 37 — — — 94,804 Total commercial real estate $ 335,844 $ 119,834 $ 100,114 $ 117,094 $ 16,388 $ 34,724 $ 88,547 $ 159 $ 812,704 YTD gross charge-offs $ 108 $ — $ — $ — $ — $ — $ — $ — $ 108 Construction, land development, land Pass $ 91,557 $ 34,683 $ 1,668 $ 2,996 $ 2,928 $ 276 $ 2,612 $ — $ 136,720 Classified — — — — — — — — — Total construction, land development, land $ 91,557 $ 34,683 $ 1,668 $ 2,996 $ 2,928 $ 276 $ 2,612 $ — $ 136,720 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1-4 family residential Pass $ 22,637 $ 16,336 $ 19,542 $ 7,229 $ 2,462 $ 20,950 $ 35,373 $ 174 $ 124,703 Classified 296 1 99 — 40 590 187 — 1,213 Total 1-4 family residential $ 22,933 $ 16,337 $ 19,641 $ 7,229 $ 2,502 $ 21,540 $ 35,560 $ 174 $ 125,916 YTD gross charge-offs $ 5 $ — $ — $ — $ — $ — $ — $ — $ 5 Farmland Pass $ 13,140 $ 13,628 $ 5,586 $ 7,876 $ 2,296 $ 18,542 $ 1,359 $ 155 $ 62,582 Classified 677 — — 18 86 205 — — 986 Total farmland $ 13,817 $ 13,628 $ 5,586 $ 7,894 $ 2,382 $ 18,747 $ 1,359 $ 155 $ 63,568 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 269,496 $ 196,731 $ 79,125 $ 61,440 $ 24,583 $ 10,476 $ 472,269 $ 370 $ 1,114,490 Classified 27,547 19,441 5,462 3,291 24 80 30 — 55,875 Total commercial $ 297,043 $ 216,172 $ 84,587 $ 64,731 $ 24,607 $ 10,556 $ 472,299 $ 370 $ 1,170,365 YTD gross charge-offs $ 100 $ 4,619 $ 4,493 $ 499 $ 44 $ 49 $ — $ — $ 9,804 Factored receivables Pass $ 1,075,428 $ — $ — $ 3,151 $ — $ — $ — $ — $ 1,078,579 Classified 18,714 — — 19,361 — — — — 38,075 Total factored receivables $ 1,094,142 $ — $ — $ 22,512 $ — $ — $ — $ — $ 1,116,654 YTD gross charge-offs $ 5,374 $ 2,293 $ — $ 3,330 $ — $ — $ — $ — $ 10,997 Consumer Pass $ 4,141 $ 1,442 $ 593 $ 406 $ 83 $ 1,488 $ 40 $ — $ 8,193 Classified 19 — 83 1 — 30 — — 133 Total consumer $ 4,160 $ 1,442 $ 676 $ 407 $ 83 $ 1,518 $ 40 $ — $ 8,326 YTD gross charge-offs $ 519 $ 25 $ 12 $ 3 $ — $ 4 $ — $ — $ 563 Mortgage warehouse Pass $ 728,847 $ — $ — $ — $ — $ — $ — $ — $ 728,847 Classified — — — — — — — — — Total mortgage warehouse $ 728,847 $ — $ — $ — $ — $ — $ — $ — $ 728,847 YTD gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 2,449,634 $ 381,989 $ 204,998 $ 199,176 $ 48,703 $ 86,456 $ 600,200 $ 858 $ 3,972,014 Classified 138,709 20,107 7,274 23,687 187 905 217 — 191,086 Total loans $ 2,588,343 $ 402,096 $ 212,272 $ 222,863 $ 48,890 $ 87,361 $ 600,417 $ 858 $ 4,163,100 YTD gross charge-offs $ 6,106 $ 6,937 $ 4,505 $ 3,832 $ 44 $ 53 $ — $ — $ 21,477 Revolving Revolving Total (Dollars in thousands) Year of Origination December 31, 2022 2022 2021 2020 2019 2018 Prior Commercial real estate Pass $ 231,427 $ 156,895 $ 198,541 $ 28,033 $ 17,786 $ 35,658 $ 3,675 $ — $ 672,015 Classified 3,668 551 1,855 39 — 16 — — 6,129 Total commercial real estate $ 235,095 $ 157,446 $ 200,396 $ 28,072 $ 17,786 $ 35,674 $ 3,675 $ — $ 678,144 Construction, land development, land Pass $ 71,236 $ 11,328 $ 4,535 $ 3,186 $ 35 $ 506 $ — $ — $ 90,826 Classified — — 5 — — 145 — — 150 Total construction, land development, land $ 71,236 $ 11,328 $ 4,540 $ 3,186 $ 35 $ 651 $ — $ — $ 90,976 1-4 family residential Pass $ 26,306 $ 22,639 $ 9,536 $ 2,929 $ 3,528 $ 20,910 $ 38,361 $ 300 $ 124,509 Classified 137 199 7 53 1 1,006 69 — 1,472 Total 1-4 family residential $ 26,443 $ 22,838 $ 9,543 $ 2,982 $ 3,529 $ 21,916 $ 38,430 $ 300 $ 125,981 Farmland Pass $ 18,190 $ 7,291 $ 10,027 $ 2,699 $ 6,742 $ 18,569 $ 1,016 $ 204 $ 64,738 Classified 1,062 2,796 120 108 — 110 — — 4,196 Total farmland $ 19,252 $ 10,087 $ 10,147 $ 2,807 $ 6,742 $ 18,679 $ 1,016 $ 204 $ 68,934 Commercial Pass $ 358,983 $ 181,933 $ 136,635 $ 41,912 $ 5,842 $ 12,145 $ 486,889 $ 161 $ 1,224,500 Classified 10,721 10,579 3,767 1,038 96 116 293 — 26,610 Total commercial $ 369,704 $ 192,512 $ 140,402 $ 42,950 $ 5,938 $ 12,261 $ 487,182 $ 161 $ 1,251,110 Factored receivables Pass $ 1,196,912 $ — $ 7,710 $ — $ — $ — $ — $ — $ 1,204,622 Classified 12,974 — 19,853 — — — — — 32,827 Total factored receivables $ 1,209,886 $ — $ 27,563 $ — $ — $ — $ — $ — $ 1,237,449 Consumer Pass $ 2,768 $ 1,981 $ 894 $ 304 $ 266 $ 2,418 $ 147 $ — $ 8,778 Classified — 1 2 — 8 79 — — 90 Total consumer $ 2,768 $ 1,982 $ 896 $ 304 $ 274 $ 2,497 $ 147 $ — $ 8,868 Mortgage warehouse Pass $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Classified — — — — — — — — — Total mortgage warehouse $ 658,829 $ — $ — $ — $ — $ — $ — $ — $ 658,829 Total loans Pass $ 2,564,651 $ 382,067 $ 367,878 $ 79,063 $ 34,199 $ 90,206 $ 530,088 $ 665 $ 4,048,817 Classified 28,562 14,126 25,609 1,238 105 1,472 362 — 71,474 Total loans $ 2,593,213 $ 396,193 $ 393,487 $ 80,301 $ 34,304 $ 91,678 $ 530,450 $ 665 $ 4,120,291 |
Summary of Loan Modifications | The following tables present the amortized cost basis at the end of the reporting period of the loans modifications to borrowers experiencing financial difficulty: Term Extension Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial real estate $ 415 0.1 % 1-4 family residential 271 0.2 % Farmland 604 1.0 % Commercial 1,548 0.1 % $ 2,838 0.1 % Payment Delay Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial 22,547 1.9 % $ 22,547 0.5 % Term Extension and Rate Reduction Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial real estate $ 83,349 10.3 % Commercial 496 — % $ 83,845 2.0 % Payment Delay and Rate Reduction Year Ended December 31, 2023 (Dollars in thousands) Amortized Cost % of Portfolio Commercial real estate $ 23,001 2.8 % $ 23,001 0.6 % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Year Ended December 31, 2023 Commercial real estate Modification added a weighted average 1.1 years to the life of the modified loans. 1-4 family residential Modification added a weighted average 0.5 years to the life of the modified loans. Farmland Modification added a weighted average 0.5 years to the life of the modified loans. Commercial Modification added a weighted average 1.5 years to the life of the modified loans. Payment Delay Year Ended December 31, 2023 Commercial Modification provided a weighted average payment delay of 0.6 years. Term Extension and Rate Reduction Year Ended December 31, 2023 Commercial real estate Modification added a weighted average 0.5 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.1% to 5.1%. Commercial Modification added a weighted average 0.3 years to the life of the modified loans and reduced the weighted average contractual interest rate from 10.5% to 9.5%. Payment Delay and Rate Reduction Year Ended December 31, 2023 Commercial real estate Modification provided a weighted average payment delay of 0.8 years and reduced the weighted average contractual interest rate from 9.4% to 6.0%. The following table presents the payment status of loans that have been modified in the last twelve months: December 31, 2023 (Dollars in thousands) Current Past Due Past Due Commercial real estate $ 106,765 $ — $ — 1-4 family residential 271 — — Farmland 604 — — Commercial 23,838 753 — $ 131,478 $ 753 $ — |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate [Abstract] | |
Summary of Other Real Estate Owned Activity | Other real estate owned activity was as follows: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Beginning balance $ — $ 524 $ 1,432 Loans transferred to OREO 37 47 692 Net OREO gains (losses) and valuation adjustments — (133) (347) Sales of OREO — (438) (1,253) Ending balance $ 37 $ — $ 524 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment consisted of the following: (Dollars in thousands) December 31, December 31, Land $ 13,080 $ 13,080 Buildings 58,282 55,001 Leasehold improvements 39,499 37,406 Automobiles and aircraft 22,966 9,929 Furniture, fixtures and equipment 40,814 35,465 174,641 150,881 Accumulated depreciation (61,184) (47,542) $ 113,457 $ 103,339 |
Schedule of Lease Cost | Lease costs were as follows: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Operating lease cost $ 5,294 $ 4,242 $ 4,538 Short-term lease cost 460 — — Variable lease cost 145 880 443 Total lease cost $ 5,899 $ 5,122 $ 4,981 |
Schedule of Total Operating Lease Liability | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: (Dollars in thousands) December 31, 2023 Lease payments due: Within one year $ 6,443 After one but within two years 6,299 After two but within three years 5,376 After three but within four years 4,856 After four but within five years 3,979 After five years 8,971 Total undiscounted cash flows 35,924 Discount on cash flows (3,613) Total lease liability $ 32,311 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets consist of the following: (Dollars in thousands) December 31, December 31, Goodwill $ 233,709 $ 233,709 December 31, 2023 December 31, 2022 (Dollars in thousands) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Core deposit intangibles $ 43,578 $ (38,084) $ 5,494 $ 43,578 $ (35,347) $ 8,231 Software intangible asset 16,932 (10,935) 5,997 16,932 (6,702) 10,230 Other intangible assets 33,452 (21,297) 12,155 30,410 (16,813) 13,597 $ 93,962 $ (70,316) $ 23,646 $ 90,920 $ (58,862) $ 32,058 |
Schedule of Changes in Goodwill and Intangible Assets by Operating Segment | The changes in goodwill and intangible assets by operating segment during the year are as follows: (Dollars in thousands) December 31, 2023 Banking Factoring Payments Corporate Total Beginning balance $ 116,296 $ 60,982 $ 88,389 $ 100 $ 265,767 Acquired intangibles — — 3,042 — 3,042 Amortization of intangibles (2,950) (1,821) (6,683) — (11,454) Ending balance $ 113,346 $ 59,161 $ 84,748 $ 100 $ 257,355 (Dollars in thousands) December 31, 2022 Banking Factoring Payments Corporate Total Beginning balance $ 119,306 $ 63,275 $ 94,275 $ — $ 276,856 Acquired goodwill - measurement period adjustment — — (18) — (18) Acquired intangibles 751 — — 100 851 Amortization of intangibles (3,761) (2,293) (5,868) — (11,922) Ending balance $ 116,296 $ 60,982 $ 88,389 $ 100 $ 265,767 (Dollars in thousands) December 31, 2021 Banking Factoring Payments Corporate Total Beginning balance $ 123,882 $ 66,040 $ — $ — $ 189,922 Acquired goodwill — — 73,697 — 73,697 Acquired goodwill - measurement period adjustment — 59 (3,238) — (3,179) Acquired intangibles — — 27,292 — 27,292 Amortization of intangibles (4,576) (2,824) (3,476) — (10,876) Ending balance $ 119,306 $ 63,275 $ 94,275 $ — $ 276,856 |
Schedule of Future Amortization Schedule for the Company's Intangible Assets | The future amortization schedule for the Company’s intangible assets with finite lives is as follows: (Dollars in thousands) 2024 $ 10,312 2025 5,735 2026 2,611 2027 1,681 2028 1,007 Thereafter 1,449 $ 22,795 Amortization schedule excludes $851,000 of indefinite lived intangible assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company holds investments in the subordinated notes of the following closed Collateralized loan Obligation ("CLO") funds: (Dollars in thousands) Offering Offering Trinitas CLO IV, LTD (Trinitas IV) June 2, 2016 $ 406,650 Trinitas CLO V, LTD (Trinitas V) September 22, 2016 $ 409,000 Trinitas CLO VI, LTD (Trinitas VI) June 20, 2017 $ 717,100 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI | The following table presents the pre-tax impact of the terminated cash flow hedge on AOCI: Year Ended (Dollars in thousands) December 31, 2022 Unrealized gains on terminated hedges Beginning Balance $ — Unrealized gains arising during the period 9,316 Reclassification adjustments for amortization of unrealized (gains) into net income (9,316) Ending Balance $ — |
Schedule of Fair Value and Cash Flow Hedge Accounting on AOCI | The table below presents the effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Income, net of tax: Amount of Amount of Location of Amount of Amount of (Dollars in thousands) Year Ended December 31, 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 2,398 $ 2,398 Interest Expense $ 7,103 $ 7,103 Year Ended December 31, 2021 Derivatives in cash flow hedging relationships: Interest rate swaps $ 3,995 $ 3,995 Interest Expense $ (71) $ (71) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are summarized as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Noninterest-bearing demand $ 1,632,022 $ 1,756,680 Interest-bearing demand 757,455 856,512 Individual retirement accounts 52,195 68,125 Money market 568,772 508,534 Savings 555,047 551,780 Certificates of deposit 265,525 319,150 Brokered time deposits 146,458 110,555 Other brokered deposits 4 — Total deposits $ 3,977,478 $ 4,171,336 |
Scheduled Maturities of Time Deposits, Including Certificates of Deposits, Individual Retirement Accounts and Brokered Deposits | At December 31, 2023, scheduled maturities of time deposits, including certificates of deposits, individual retirement accounts and brokered time deposits, are as follows: (Dollars in thousands) December 31, 2023 Within one year $ 423,753 After one but within two years 27,762 After two but within three years 6,651 After three but within four years 4,043 After four but within five years 1,969 Total $ 464,178 |
Borrowings and Borrowing Capa_2
Borrowings and Borrowing Capacity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Customer Repurchase Agreements | Information concerning customer repurchase agreements is summarized as follows: (Dollars in thousands) December 31, December 31, Amount outstanding at end of the year $ — $ 340 Weighted average interest rate at end of the year — % 0.03 % Average daily balance during the year $ 723 $ 6,701 Weighted average interest rate during the year 0.03 % 0.03 % Maximum month-end balance during the year $ 3,208 $ 13,463 Customer repurchase agreements are secured by pledged securities with carrying amounts as follows: (Dollars in thousands) December 31, December 31, Asset-backed securities $ — $ 4,994 |
Schedule of FHLB Advances and Weighted Average Interest Rates by Contractual Maturity | FHLB Advances FHLB advances are collateralized by assets, including a blanket pledge of certain loans. FHLB advances and weighted average interest rates at end of period by contractual maturity are summarized as follows: Fixed Rate Variable Rate (Dollars in thousands) Balance Outstanding Weighted Average Interest Rate Balance Outstanding Weighted Average Interest Rate 2023 $ 225,000 5.65 % $ — — % 2027 — — % 30,000 5.64 % $ 225,000 5.65 % $ 30,000 5.64 % |
Schedule of Information Concerning FHLB Advances | Information concerning FHLB advances is summarized as follows: (Dollars in thousands) December 31, December 31, Amount outstanding at end of the year $ 255,000 $ 30,000 Weighted average interest rate at end of the year 5.65 % 4.25 % Average daily balance during the year $ 194,795 $ 69,658 Weighted average interest rate during the year 5.30 % 1.19 % Maximum month-end balance during the year $ 530,000 $ 230,000 |
Schedule of FHLB Advances | The Company’s unused borrowing capacity with the FHLB is as follows: (Dollars in thousands) December 31, December 31, Borrowing capacity $ 842,016 $ 676,307 Borrowings outstanding (255,000) (30,000) Unused borrowing capacity $ 587,016 $ 646,307 |
Schedule of Information Concerning Paycheck Protection Program Borrowings | Information concerning borrowings under the PPPLF is summarized as follows: (Dollars in thousands) December 31, December 31, December 31, Amount outstanding at end of period $ — $ — $ 27,144 Weighted average interest rate at end of period — % — % 0.35 % Average amount outstanding during the period — 670 118,880 Weighted average interest rate during the period — % 0.32 % 0.35 % Highest month end balance during the period — — 181,635 |
Schedule of Subordinated Notes | The following provides a summary of the Company’s subordinated notes: (Dollars in thousands) Face Value Carrying Value Maturity Date Current Interest Rate First Repricing Date Variable Interest Rate at Repricing Date Initial Issuance Costs Subordinated Notes issued November 27, 2019 $ 39,500 $ 39,180 2029 4.875% 11/27/2024 Three Month LIBOR plus 3.330% $ 1,218 Subordinated Notes issued August 26, 2021 70,000 69,498 2031 3.500% 9/01/2026 Three Month SOFR plus 2.860% $ 1,776 $ 109,500 $ 108,678 |
Summary of Junior Subordinated Debentures | The following provides a summary of the Company’s junior subordinated debentures: (Dollars in thousands) Face Value Carrying Value Maturity Date Variable Interest Rate At December 31, 2023 National Bancshares Capital Trust II $ 15,464 $ 13,632 September 2033 Three Month SOFR + 3.26% 8.65% National Bancshares Capital Trust III 17,526 13,640 July 2036 Three Month SOFR + 1.64% 7.30% ColoEast Capital Trust I 5,155 3,838 September 2035 Three Month SOFR + 1.86% 7.19% ColoEast Capital Trust II 6,700 4,958 March 2037 Three Month SOFR + 2.05% 7.38% Valley Bancorp Statutory Trust I 3,093 2,921 September 2032 Three Month SOFR + 3.66% 9.02% Valley Bancorp Statutory Trust II 3,093 2,751 July 2034 Three Month SOFR + 3.01% 8.39% $ 51,031 $ 41,740 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | Income tax expense consisted of the following: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Income tax expense: Current $ 5,195 $ 36,472 $ 37,812 Deferred 6,549 (1,828) (5,832) Change in valuation allowance for deferred tax asset (10) 49 — Income tax expense $ 11,734 $ 34,693 $ 31,980 |
Summary of Effective Income Tax Rate Reconciliation | Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Tax provision computed at federal statutory rate $ 11,091 $ 28,771 $ 30,440 Effect of: State taxes, net 1,920 4,849 3,335 Stock-based compensation (2,661) (369) (1,778) Non-deductible executive compensation 1,943 1,510 492 Non-deductible meals and entertainment 808 441 508 Federal tax credits (835) (372) (372) Bank-owned life insurance (78) (89) (332) Tax exempt interest (60) (100) (201) Change in valuation allowance for deferred tax asset (10) 49 — Other (384) 3 (112) Income tax expense $ 11,734 $ 34,693 $ 31,980 |
Significant Components of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: (Dollars in thousands) 2023 2022 Deferred tax assets Federal net operating loss carryforwards $ 5,562 $ 6,396 State net operating loss carryforwards 1,502 1,534 Stock-based compensation 3,658 7,825 Unrealized loss on securities available for sale 936 2,163 Allowance for credit losses 10,098 11,825 Accrued liabilities 5,362 4,179 Lease liability 7,620 8,062 Other 6,594 3,405 Total deferred tax assets 41,332 45,389 Deferred tax liabilities Goodwill and intangible assets 10,328 9,934 Fair value adjustment on junior subordinated debentures 2,103 2,237 Premises and equipment 10,220 6,339 Acquired loan basis 331 371 Lease right-of-use asset 6,988 7,339 Indemnification asset 358 935 Other 1,887 1,434 Total deferred tax liabilities 32,215 28,589 Net deferred tax asset before valuation allowance 9,117 16,800 Valuation allowance (317) (327) Net deferred tax asset $ 8,800 $ 16,473 |
Off-Balance Sheet Loan Commit_2
Off-Balance Sheet Loan Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments with Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk were as follows: December 31, 2023 December 31, 2022 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Unused lines of credit $ 53,822 $ 527,300 $ 581,122 $ 1,417 $ 487,965 $ 489,382 Standby letters of credit $ 15,013 $ 9,356 $ 24,369 $ 12,309 $ 4,897 $ 17,206 Commitments to purchase loans $ — $ 17,125 $ 17,125 $ — $ 53,572 $ 53,572 Mortgage warehouse commitments $ — $ 895,896 $ 895,896 $ — $ 1,055,117 $ 1,055,117 |
Securities Borrowed, Allowance for Credit Loss | The following table presents credit loss expense for off balance sheet credit exposures: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Credit loss expense (benefit) $ (769) $ (476) $ (922) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at estimated fair value on a recurring basis are summarized in the table below. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2023 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 55,839 $ — $ 55,839 Asset-backed securities — 1,170 — 1,170 State and municipal — 4,515 — 4,515 CLO securities — 236,291 — 236,291 Corporate bonds — 275 — 275 SBA pooled securities — 1,554 — 1,554 $ — $ 299,644 $ — $ 299,644 Equity securities with readily determinable fair values Mutual fund $ 4,488 $ — $ — $ 4,488 Loans held for sale $ — $ 1,236 $ — $ 1,236 Indemnification asset $ — $ — $ 1,497 $ 1,497 Revenue share asset $ — $ — $ 2,516 $ 2,516 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Assets measured at fair value on a recurring basis Securities available for sale Mortgage-backed securities, residential $ — $ 50,633 $ — $ 50,633 Asset-backed securities — 6,331 — 6,331 State and municipal — 13,438 — 13,438 CLO Securities — 181,011 — 181,011 Corporate bonds — 1,263 — 1,263 SBA pooled securities — 1,828 — 1,828 $ — $ 254,504 $ — $ 254,504 Equity securities with readily determinable fair values Mutual fund $ 5,191 $ — $ — $ 5,191 Loans held for sale $ — $ 5,641 $ — $ 5,641 Indemnification asset $ — $ — $ 3,896 $ 3,896 Revenue share asset $ — $ — $ 5,515 $ 5,515 |
Reconciliation of Fair Value of Contingent Consideration | A reconciliation of the opening balance to the closing balance of the estimated fair value of the indemnification asset is as follows: (Dollars in thousands) 2023 2022 2021 Beginning balance $ 3,896 $ 4,786 $ 36,225 Indemnification asset recognized in business combination — — — Change in estimated fair value of indemnification asset recognized in earnings (734) (890) 4,194 Indemnification recognized (1,665) — (35,633) Ending balance $ 1,497 $ 3,896 $ 4,786 (Dollars in thousands) 2023 2022 2021 Beginning balance $ 5,515 $ — $ — Revenue share asset recognized — 6,237 — Change in estimated fair value of revenue share asset recognized in earnings (1,743) (62) — Revenue share payments received (1,256) (660) — Ending balance $ 2,516 $ 5,515 $ — |
Schedule of Fair Value of Assets Measured on Non-recurring Basis | Assets measured at estimated fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at December 31, 2023 and 2022. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2023 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 1,480 $ 1,480 1-4 family residential — — 37 37 Commercial — — 20,870 20,870 Factored receivables — — 32,860 32,860 $ — $ — $ 55,247 $ 55,247 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2022 Level 1 Level 2 Level 3 Collateral dependent loans Commercial real estate $ — $ — $ 269 $ 269 1-4 family residential — — 46 46 Commercial — — 6,994 6,994 Factored receivables — — 29,367 29,367 Equity investment without readily determinable fair value 38,088 — — 38,088 $ 38,088 $ — $ 36,676 $ 74,764 |
Schedule of Estimated Fair Value of Company's Financial Assets and Financial Liabilities | The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis were as follows: December 31, 2023 Carrying Fair Value Measurements Using Total (Dollars in thousands) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 286,635 $ 286,635 $ — $ — $ 286,635 Securities - held to maturity 2,977 — — 4,015 4,015 Loans not previously presented, gross 4,107,853 105,145 — 3,944,193 4,049,338 FHLB and other restricted stock 14,278 N/A N/A N/A N/A Accrued interest receivable 34,597 34,597 — — 34,597 Financial liabilities: Deposits 3,977,478 — 3,971,391 — 3,971,391 Federal Home Loan Bank advances 255,000 — 255,000 — 255,000 Subordinated notes 108,678 — 90,084 — 90,084 Junior subordinated debentures 41,740 — 43,072 — 43,072 Accrued interest payable 7,429 7,429 — — 7,429 December 31, 2022 Carrying Fair Value Measurements Using Total (Dollars in thousands) Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 408,182 $ 408,182 $ — $ — $ 408,182 Securities - held to maturity 4,077 — — 5,476 5,476 Loans not previously presented, gross 4,088,411 187,729 — 3,805,701 3,993,430 FHLB and other restricted stock 6,252 N/A N/A N/A N/A Accrued interest receivable 21,977 21,977 — — 21,977 Financial liabilities: Deposits 4,171,336 — 4,159,695 — 4,159,695 Customer repurchase agreements 340 — 340 — 340 Federal Home Loan Bank advances 30,000 — 30,000 — 30,000 Subordinated notes 107,800 — 104,400 — 104,400 Junior subordinated debentures 41,158 — 42,721 — 42,721 Accrued interest payable 2,830 2,830 — — 2,830 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Loans to Executive Officers, Directors, and Affiliates | In the ordinary course of business, we have granted loans to executive officers, directors, and their affiliates were as follows: Years Ended December 31, (Dollars in thousands) 2023 2022 Beginning balance $ — $ — New loans and advances 49,583 — Repayments and sales (442) — Ending balance $ 49,141 $ — |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts and ratios for the Company and TBK Bank are presented in the following table: Actual Minimum for Capital To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to risk weighted assets) Triumph Financial, Inc. $806,667 16.7% $385,370 8.0% N/A N/A TBK Bank, SSB $758,656 15.9% $382,508 8.0% $478,135 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $661,833 13.7% $289,027 6.0% N/A N/A TBK Bank, SSB $725,383 15.2% $286,881 6.0% $382,508 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $575,093 11.9% $216,770 4.5% N/A N/A TBK Bank, SSB $725,383 15.2% $215,161 4.5% $310,787 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $661,833 12.6% $209,518 4.0% N/A N/A TBK Bank, SSB $725,383 13.9% $209,406 4.0% $261,758 5.0% As of December 31, 2022 Total capital (to risk weighted assets) Triumph Financial, Inc. $829,928 17.7% $375,109 8.0% N/A N/A TBK Bank, SSB $732,785 15.8% $371,030 8.0% $463,788 10.0% Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $684,381 14.6% $281,252 6.0% N/A N/A TBK Bank, SSB $697,022 15.0% $278,809 6.0% $371,745 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Financial, Inc. $598,223 12.7% $211,969 4.5% N/A N/A TBK Bank, SSB $697,022 15.0% $209,107 4.5% $302,043 6.5% Tier 1 capital (to average assets) Triumph Financial, Inc. $684,381 13.0% $210,579 4.0% N/A N/A TBK Bank, SSB $697,022 13.2% $211,219 4.0% $264,023 5.0% |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Capital Structure | The following summarizes the Company’s capital structure. Preferred Stock Series C December 31, (Dollars in thousands, except per share amounts) 2023 2022 Shares authorized 51,750 51,750 Shares issued 45,000 45,000 Shares outstanding 45,000 45,000 Par value per share $ 0.01 $ 0.01 Liquidation preference per share $ 1,000 $ 1,000 Liquidation preference amount $ 45,000 $ 45,000 Dividend rate 7.125 % 7.125 % Dividend payment dates Quarterly Quarterly Common Stock December 31, (Dollars in thousands, except per share amounts) 2023 2022 Shares authorized 50,000,000 50,000,000 Shares issued 28,986,255 28,321,716 Treasury shares (5,683,841) (4,268,131) Shares outstanding 23,302,414 24,053,585 Par value per share $ 0.01 $ 0.01 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Changes in Company's Nonvested Restricted Stock Awards | A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested RSAs Shares Weighted Average Nonvested at January 1, 2023 230,486 $ 70.34 Granted 13,374 59.69 Vested (107,623) 60.34 Forfeited (13,306) 74.95 Nonvested at December 31, 2023 122,931 $ 77.14 |
Summary of Changes in Company's Nonvested Restricted Stock Units | A summary of changes in the Company’s nonvested Restricted Stock Units (“RSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested RSUs Shares Weighted Average Nonvested at January 1, 2023 211,300 $ 59.45 Granted 139,836 52.59 Vested (114,509) 43.19 Forfeited (6,593) 61.87 Nonvested at December 31, 2023 230,034 $ 63.30 |
Summary of Changes in Company's Nonvested Performance Stock Units | A summary of changes in the Company’s nonvested Market Based Performance Stock Units (“Market Based PSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested Market Based PSUs Shares Weighted Average Nonvested at January 1, 2023 112,486 $ 55.57 Granted 78,872 78.15 Incremental shares earned 52,694 N/A Vested (122,969) 36.10 Forfeited (5,003) 77.71 Nonvested at December 31, 2023 116,080 $ 81.74 A summary of changes in the Company’s nonvested Performance Based Performance Stock Units (“Performance Based PSUs”) under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Nonvested Performance Based PSUs Shares Weighted Average Nonvested at January 1, 2023 255,738 $ 39.57 Granted — — Incremental shares earned 107,404 N/A Vested (363,142) 39.57 Forfeited — — Nonvested at December 31, 2023 — $ — |
Schedule of Fair Value of Market Based Performance Stock Units, Weighted Average Assumptions | The fair value of the Market Based PSUs granted was determined using the following weighted average assumptions: Year Ended December 31, 2023 2022 2021 Grant date May 1, 2023 May 1, 2022 May 1, 2021 Performance period 3.00 years 3.00 years 3.00 years Stock price $ 51.25 $ 69.44 $ 88.63 Stock price volatility 49.33 % 55.17 % 51.71 % Risk-free rate 3.76 % 2.84 % 0.35 % |
Summary of Changes in Company's Stock Options | A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2023 were as follows: Stock Options Shares Weighted Average Weighted Average Aggregate Outstanding at January 1, 2023 195,398 $ 39.48 Granted 57,930 51.25 Exercised (17,139) 22.74 Forfeited (3,195) 56.73 Expired — — Outstanding at December 31, 2023 232,994 $ 43.40 6.21 $ 8,713 Fully vested shares and shares expected to vest at December 31, 2023 232,994 $ 43.40 6.21 $ 8,713 Shares exercisable at December 31, 2023 137,216 $ 34.01 4.50 $ 6,407 |
Schedule of Information Related to Stock Options | Information related to the stock options for the years ended December 31, 2023, 2022, and 2021 was as follows: Year Ended December 31, (Dollars in thousands, except per share amounts) 2023 2022 2021 Aggregate intrinsic value of options exercised $ 723 $ 280 $ 5,304 Cash received from option exercises, net $ 144 $ (74) $ 577 Tax benefit realized from option exercises $ 152 $ 59 $ 1,114 Weighted average fair value of options granted (per share) $ 25.20 $ 32.15 $ 35.37 Fair value of vested awards $ 532 $ 423 $ 381 |
Fair Value of Stock Options Granted Weighted-Average Assumptions | The fair value of the stock options granted was determined using the following weighted average assumptions: 2023 2022 2021 Risk-free interest rate 3.38 % 2.77 % 1.16 % Expected term 6.25 years 6.25 years 6.25 years Expected stock price volatility 45.65 % 43.33 % 39.26 % Dividend yield — — — |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Company Only Balance Sheets | Condensed Parent Company Only Balance Sheets: (Dollars in thousands) December 31, December 31, ASSETS Cash and cash equivalents $ 44,029 $ 92,338 Securities - held to maturity 2,977 4,077 Investment in bank subsidiary 969,894 943,084 Investment in non-bank subsidiaries 193 194 Other assets 2,930 4,568 Total assets $ 1,020,023 $ 1,044,261 LIABILITIES AND EQUITY Subordinated notes $ 108,678 $ 107,800 Junior subordinated debentures 41,740 41,158 Intercompany payables 346 365 Accrued expenses and other liabilities 4,859 5,967 Total liabilities 155,623 155,290 Stockholders' equity 864,400 888,971 Total liabilities and equity $ 1,020,023 $ 1,044,261 |
Condensed Parent Company Only Statements of Income | Condensed Parent Company Only Statements of Income: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Interest income $ 175 $ 174 $ 100 Interest expense (9,702) (7,874) (8,220) Credit loss (expense) benefit (746) (362) (56) Other income 134 80 53 Salaries and employee benefits expense (639) (729) (618) Other expense (3,378) (2,701) (2,379) Income (loss) before income tax and income from subsidiaries (14,156) (11,412) (11,120) Income tax (expense) benefit 2,944 2,150 2,202 Dividends from subsidiaries and equity in undistributed subsidiary income 52,293 111,573 121,892 Net income 41,081 102,311 112,974 Dividends on preferred stock (3,206) (3,206) (3,206) Net income available to common stockholders $ 37,875 $ 99,105 $ 109,768 Comprehensive income attributable to Parent $ 45,055 $ 87,377 $ 115,189 |
Condensed Parent Company Only Statements of Cash Flows | Condensed Parent Company Only Statements of Cash Flows: Years Ended December 31, (Dollars in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 41,081 $ 102,311 $ 112,974 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed subsidiary income (10,293) 1,427 (121,892) Net accretion of securities (175) (171) (87) Amortization of junior subordinated debentures 582 556 530 Amortization of subordinated notes issuance costs 878 843 1,224 Stock based compensation 719 686 420 Credit loss expense (benefit) 746 362 56 Change in other assets 1,638 (4,089) 387 Change in accrued expenses and other liabilities (1,127) 3,650 546 Net cash provided by (used in) operating activities 34,049 105,575 (5,842) Cash flows from investing activities: Investment in subsidiaries (33) — 3,383 Proceeds from maturities, calls, and pay downs of securities held to maturity 529 679 1,003 Net cash provided by (used in) investing activities 496 679 4,386 Cash flows from financing activities: Proceeds from issuance of subordinated notes, net — — 68,224 Repayment of subordinated notes — — (50,000) Dividends on preferred stock (3,206) (3,206) (3,206) Purchase of treasury stock (81,623) (76,714) (1,241) Stock option exercises 144 (74) 577 Proceeds from employee stock purchase plan common stock issuance 1,831 1,548 449 Net cash provided by (used in) financing activities (82,854) (78,446) 14,803 Net increase (decrease) in cash and cash equivalents (48,309) 27,808 13,347 Cash and cash equivalents at beginning of period 92,338 64,530 51,183 Cash and cash equivalents at end of period $ 44,029 $ 92,338 $ 64,530 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Factors Used in Computation of Earnings Per Share | The factors used in the earnings per share computation follow: Year Ended December 31, (Dollars in thousands) 2023 2022 2021 Basic Net income to common stockholders $ 37,875 $ 99,105 $ 109,768 Weighted average common shares outstanding 23,208,086 24,393,954 24,736,713 Basic earnings per common share $ 1.63 $ 4.06 $ 4.44 Diluted Net income to common stockholders $ 37,875 $ 99,105 $ 109,768 Weighted average common shares outstanding 23,208,086 24,393,954 24,736,713 Dilutive effects of: Assumed exercises of stock options 78,679 90,841 130,198 Restricted stock awards 98,408 148,630 170,276 Restricted stock units 91,454 98,139 76,049 Performance stock units - market based 84,869 122,123 136,199 Performance stock units - performance based — 167,187 — Employee stock purchase plan 881 2,694 2,617 Average shares and dilutive potential common shares 23,562,377 25,023,568 25,252,052 Diluted earnings per common share $ 1.61 $ 3.96 $ 4.35 |
Schedule of Shares not Considered in Computing Diluted Earnings per Common Share | Shares that were not considered in computing diluted earnings per common share because they were antidilutive or have not met the thresholds to be considered in the dilutive calculation are as follows: Year Ended December 31, 2023 2022 2021 Stock options 100,818 49,379 16,939 Restricted stock awards — 6,348 8,463 Restricted stock units 7,500 11,250 15,000 Performance stock units - market based 12,020 45,296 — Performance stock units - performance based — — 259,383 Employee stock purchase plan — — — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Payment Segment Revenue | The table below shows the Payments segment’s revenue from transaction and network fees from external customers, which are disaggregated by customer category. (Dollars in thousands) 2023 2022 2021 Broker fee income $ 12,215 $ 8,441 $ 3,480 Factor fee income 5,256 5,029 2,588 Other fee income 460 226 $ 1,383 Total fee income $ 17,931 $ 13,696 $ 7,451 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | The following presents the primary operating results of Company’s operating segments. (Dollars in thousands) Year Ended December 31, 2023 Banking Factoring Payments Corporate Consolidated Total interest income $ 261,639 $ 144,217 $ 16,390 $ 175 $ 422,421 Intersegment interest allocations 31,450 (38,157) 6,707 — — Total interest expense 44,640 — — 9,702 54,342 Net interest income (expense) 248,449 106,060 23,097 (9,527) 368,079 Credit loss expense (benefit) 8,498 2,900 60 745 12,203 Net interest income (expense) after credit loss expense 239,951 103,160 23,037 (10,272) 355,876 Noninterest income 23,964 7,829 18,087 293 50,173 Noninterest expense 127,713 79,612 61,695 84,214 353,234 Net intersegment noninterest income (expense) (1) — 123 (123) — — Net income (loss) before income tax expense $ 136,202 $ 31,500 $ (20,694) $ (94,193) $ 52,815 (Dollars in thousands) Year Ended December 31, 2022 Banking Factoring Payments Corporate Consolidated Total interest income $ 195,871 $ 207,114 $ 16,079 $ 175 $ 419,239 Intersegment interest allocations 19,912 (19,382) (530) — — Total interest expense 10,874 — — 7,873 18,747 Net interest income (expense) 204,909 187,732 15,549 (7,698) 400,492 Credit loss expense (benefit) 2,753 2,895 218 1,059 6,925 Net interest income (expense) after credit loss expense 202,156 184,837 15,331 (8,757) 393,567 Noninterest income 40,984 22,272 20,620 192 84,068 Noninterest expense 121,916 91,673 63,231 63,811 340,631 Net intersegment noninterest income (expense) (1) — — — — — Net income (loss) before income tax expense $ 121,224 $ 115,436 $ (27,280) $ (72,376) $ 137,004 (Dollars in thousands) Year Ended December 31, 2021 Banking Factoring Payments Corporate Consolidated Total interest income $ 189,621 $ 185,741 $ 12,093 $ 100 $ 387,555 Intersegment interest allocations 1,132 (1,057) (75) — — Total interest expense 10,205 — — 8,220 18,425 Net interest income (expense) 180,548 184,684 12,018 (8,120) 369,130 Credit loss expense (benefit) (19,016) 9,691 438 57 (8,830) Net interest income (expense) after credit loss expense 199,564 174,993 11,580 (8,177) 377,960 Gain on sale of subsidiary or division — — — — — Other noninterest income 33,374 13,005 7,451 671 54,501 Noninterest expense 121,325 74,928 39,768 51,486 287,507 Net intersegment noninterest income (expense) (1) — — — — — Net income (loss) before income tax expense $ 111,613 $ 113,070 $ (20,737) $ (58,992) $ 144,954 (1) Net intersegment noninterest income (expense) includes: (Dollars in thousands) Factoring Payments Year Ended December 31, 2023 Factoring revenue received from Payments $ 1,190 $ (1,190) Payments revenue received from Factoring (1,067) 1,067 Net intersegment noninterest income (expense) $ 123 $ (123) Total assets and gross loans below include intersegment loans, which eliminate in consolidation. (Dollars in thousands) December 31, 2023 Banking Factoring Payments Corporate Eliminations Consolidated Total assets $ 4,918,527 $ 1,077,367 $ 546,985 $ 1,056,646 $ (2,252,191) $ 5,347,334 Gross loans $ 3,595,527 $ 941,926 $ 174,728 $ — $ (549,081) $ 4,163,100 (Dollars in thousands) December 31, 2022 Banking Factoring Payments Corporate Eliminations Consolidated Total assets $ 4,910,628 $ 1,260,209 $ 371,948 $ 1,061,662 $ (2,270,664) $ 5,333,783 Gross loans $ 3,572,716 $ 1,151,727 $ 85,722 $ — $ (689,874) $ 4,120,291 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) reportableSegment derivativeInstument | Dec. 31, 2022 USD ($) derivativeInstument | Dec. 31, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Accrued interest reversed | $ 0 | $ 0 | $ 0 |
Number of days within which accrual of interest income discontinues | 90 days | ||
Period after which consumer loans are charged off | 120 days | ||
Interest income not recognized until loan balance reduced, amount | $ 0 | ||
Equipment loan term | 60 months | ||
Change in national retail sales forecast period | 1 year | ||
Change in national home price index forecast period | 1 year | ||
Change in national gross domestic product forecast period | 1 year | ||
Number of derivative instruments | derivativeInstument | 0 | 0 | |
Number of reportable segments | reportableSegment | 4 | ||
Automobiles | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of assets | 5 years | ||
Aircraft | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of assets | 20 years | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Nonaccrual status term | 90 days | ||
Useful life of software | 4 years | ||
Minimum | Capitalized Software | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of software | 3 years | ||
Minimum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of assets | 5 years | ||
Minimum | Furniture, fixtures and equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of assets | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of software | 11 years | ||
Maximum | Capitalized Software | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of software | 5 years | ||
Maximum | Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of assets | 40 years | ||
Maximum | Furniture, fixtures and equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of assets | 10 years |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Summary of Assets and Liabilities in Disposal Group, Equipment Loan Sale (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 06, 2022 | Jun. 30, 2022 | Jun. 23, 2022 | Dec. 31, 2022 |
Equipment Loans Disposal Group | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equipment loans | $ 191,167 | ||||
Accrued interest receivable | 1,587 | ||||
Assets sold | 192,754 | ||||
Cash consideration | 197,454 | ||||
Return of premium liability | $ 0 | (708) | $ 0 | ||
Total consideration | 196,746 | ||||
Transaction costs | 73 | ||||
Gain on sale, net of transaction costs | $ 3,919 | ||||
Factored Receivable Disposal Group | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets sold | 88,036 | $ 20,148 | $ 67,888 | ||
Cash consideration | 85,346 | 19,054 | 66,292 | ||
Total consideration | 91,583 | 20,081 | 71,502 | ||
Transaction costs | 131 | 49 | 82 | ||
Gain on sale, net of transaction costs | 14,247 | 1,033 | 13,214 | ||
Customer reserve noninterest bearing deposits | 10,831 | 1,149 | 9,682 | ||
Liabilities held for sale | 10,831 | 1,149 | 9,682 | ||
Net assets sold | 77,205 | 18,999 | 58,206 | ||
Revenue share asset | 6,237 | 1,027 | 5,210 | ||
Factored Receivable Disposal Group | Factored receivables | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equipment loans | 88,019 | 20,131 | 67,888 | ||
Accrued interest and fee income | $ 17 | $ 17 | $ 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Narrative (Details) $ in Thousands | 2 Months Ended | |||||||||
Sep. 30, 2022 | Sep. 06, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 23, 2022 USD ($) | Sep. 06, 2022 USD ($) portfolio agreement | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 01, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net gains (losses) on sale of loans | Net gains (losses) on sale of loans | Net gains (losses) on sale of loans | Net gains (losses) on sale of loans | ||||||
Number of agreements to sell factored receivables | agreement | 2 | |||||||||
Number of portfolios of factored receivables sold | portfolio | 2 | |||||||||
Goodwill | $ 233,709 | $ 233,709 | ||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Equipment Loans Disposal Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Return of premium liability | $ 708 | 0 | $ 0 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Revenue share asset | $ 1,027 | $ 5,210 | $ 1,027 | $ 6,237 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | Factored receivables | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Future gross monthly revenue to be received (as a percent) | 15% | |||||||||
Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated useful lives | 11 years | |||||||||
Maximum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | Factored receivables | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Future gross monthly revenue to be received (as a percent) | 20% | 20% | ||||||||
Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated useful lives | 4 years | |||||||||
Minimum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored Receivable Disposal Group | Factored receivables | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Future gross monthly revenue to be received (as a percent) | 15% | 15% | ||||||||
Capitalized Software | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated useful lives | 5 years | |||||||||
Capitalized Software | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Estimated useful lives | 3 years | |||||||||
HubTran, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 70,441 | $ 73,697 | ||||||||
Acquisition-related expenses | $ 2,992 | |||||||||
HubTran, Inc. | Capitalized Software | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | 16,932 | $ 16,932 | ||||||||
Estimated useful lives | 4 years | |||||||||
HubTran, Inc. | Customer Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 10,360 | $ 10,360 | ||||||||
Estimated useful lives | 11 years |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed, HubTran, Inc. (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 01, 2022 | Jun. 01, 2021 | Dec. 31, 2022 | Jun. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Consideration: | ||||||
Goodwill | $ 233,709 | $ 233,709 | ||||
Goodwill, measurement period adjustments | $ (18) | $ (3,179) | ||||
HubTran, Inc. | ||||||
Assets acquired: | ||||||
Cash | $ 170 | $ 170 | $ 170 | |||
Other assets | 1,570 | 1,546 | 1,570 | |||
Other assets, measurement period adjustments | 24 | |||||
Total assets | 29,032 | 29,008 | 29,032 | |||
Total assets, measurement period adjustments | 24 | |||||
Liabilities assumed: | ||||||
Deferred income taxes | 1,455 | 4,703 | 1,455 | |||
Deferred income taxes, measurement period adjustments | (3,248) | |||||
Other liabilities | 922 | 906 | 922 | |||
Other liabilities, measurement period adjustments | 16 | |||||
Total liabilities | 2,377 | 5,609 | 2,377 | |||
Total liabilities, measurement period adjustments | (3,232) | |||||
Fair value of net assets acquired | 26,655 | 23,399 | 26,655 | |||
Fair value of net assets acquired, measurement period adjustments | 3,256 | |||||
Consideration: | ||||||
Cash paid | 97,096 | 97,096 | ||||
Goodwill | 70,441 | 73,697 | 70,441 | |||
Goodwill, measurement period adjustments | (3,256) | |||||
HubTran, Inc. | Capitalized Software | ||||||
Assets acquired: | ||||||
Intangible assets | 16,932 | 16,932 | 16,932 | |||
HubTran, Inc. | Customer Relationships | ||||||
Assets acquired: | ||||||
Intangible assets | $ 10,360 | $ 10,360 | $ 10,360 |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | 12 Months Ended | |||||
Jun. 10, 2022 USD ($) agreement | Dec. 31, 2023 USD ($) security investment | Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | Oct. 17, 2019 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Equity securities with readily determinable fair values | $ 4,488 | $ 5,191 | ||||
Investment | 75,977 | 49,182 | ||||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 0 | 10,163 | $ 0 | |||
Accrued interest on available for sale securities | $ 3,789 | $ 2,593 | ||||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||||
Number of securities in an unrealized loss position | security | 97 | |||||
Unrealized losses recognized | $ 0 | |||||
Number of investments | investment | 3 | 3 | ||||
Debt securities, held-to-maturity, nonaccrual | $ 4,766 | |||||
WSI | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Investment | 38,088 | $ 38,088 | ||||
Equity method investments and warrants | $ 8,000 | |||||
Equity method investment, ownership percentage | 8% | |||||
Equity method investment, ownership percentage to be purchased through exercise of warrant | 10% | |||||
Number of agreements with affiliate | agreement | 2 | |||||
Equity method investment, loss on impairment of warrants | 3,224 | |||||
Equity securities without readily determinable fair value, percentage of common stock agreed to purchase | 10% | |||||
Payment to acquire interest in common stock | $ 23,000 | |||||
Sale of stock, percentage of ownership after transaction | 18% | |||||
Equity method investments, fair value disclosure | $ 4,925 | |||||
Equity securities without readily determinable fair value, discontinuation of equity method, amount after adjustment | 15,088 | |||||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 10,163 | |||||
Trax Group, Inc. | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Investment | $ 9,700 | |||||
Asset Pledged as Collateral | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Debt securities | $ 42,445 | $ 93,813 |
Securities - Schedule of Gross
Securities - Schedule of Gross Realized and Unrealized Gains (Losses) Recognized on Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized gains (losses) on equity securities still held at the reporting date | $ 62 | $ (313) | $ (322) |
Realized gains (losses) on equity securities sold during the period | 18 | 0 | 0 |
Gross realized and unrealized gains (losses) recognized on equity securities | $ 80 | $ (313) | $ (322) |
Securities - Summary of Equity
Securities - Summary of Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity Securities without readily determinable fair value, at cost | $ 65,814 | $ 39,019 |
Upward adjustments based on observable price changes, cumulative | 10,163 | 10,163 |
Equity Securities without readily determinable fair value, carrying value | $ 75,977 | $ 49,182 |
Securities - Gross Realized and
Securities - Gross Realized and Unrealized Gains (Losses) on Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized gains (losses) on equity securities still held at the reporting date | $ 0 | $ 10,163 | $ 0 |
Realized gains (losses) on equity securities sold during the period | 0 | 0 | 0 |
Equity securities without readily determinable fair value, upward price adjustment, annual amount | $ 0 | $ 10,163 | $ 0 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost of Securities and Their Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Available for sale securities: | ||||
Amortized Cost | $ 303,553 | $ 263,519 | ||
Gross Unrealized Gains | 1,369 | 427 | ||
Gross Unrealized Losses | (5,278) | (9,442) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 299,644 | 254,504 | ||
Held to maturity securities: | ||||
Fair Value | 4,015 | 5,476 | ||
Allowance for credit losses | (3,190) | (2,444) | $ (2,082) | $ (2,026) |
Total held to maturity securities, net of ACL | 2,977 | 4,077 | ||
Mortgage-backed securities, residential | ||||
Available for sale securities: | ||||
Amortized Cost | 60,411 | 55,329 | ||
Gross Unrealized Gains | 221 | 235 | ||
Gross Unrealized Losses | (4,793) | (4,931) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 55,839 | 50,633 | ||
Asset-backed securities | ||||
Available for sale securities: | ||||
Amortized Cost | 1,188 | 6,389 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (18) | (58) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 1,170 | 6,331 | ||
State and municipal | ||||
Available for sale securities: | ||||
Amortized Cost | 4,560 | 13,553 | ||
Gross Unrealized Gains | 1 | 1 | ||
Gross Unrealized Losses | (46) | (116) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 4,515 | 13,438 | ||
CLO Securities | ||||
Available for sale securities: | ||||
Amortized Cost | 235,484 | 185,068 | ||
Gross Unrealized Gains | 1,137 | 161 | ||
Gross Unrealized Losses | (330) | (4,218) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 236,291 | 181,011 | ||
Held to maturity securities: | ||||
Amortized Cost | 6,167 | 6,521 | ||
Gross Unrecognized Gains | 30 | 458 | ||
Gross Unrecognized Losses | (2,182) | (1,503) | ||
Fair Value | 4,015 | 5,476 | ||
Allowance for credit losses | (3,190) | (2,444) | ||
Total held to maturity securities, net of ACL | 2,977 | 4,077 | ||
Corporate bonds | ||||
Available for sale securities: | ||||
Amortized Cost | 268 | 1,270 | ||
Gross Unrealized Gains | 7 | 1 | ||
Gross Unrealized Losses | 0 | (8) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | 275 | 1,263 | ||
SBA pooled securities | ||||
Available for sale securities: | ||||
Amortized Cost | 1,642 | 1,910 | ||
Gross Unrealized Gains | 3 | 29 | ||
Gross Unrealized Losses | (91) | (111) | ||
Allowance for Credit Losses | 0 | 0 | ||
Fair Value | $ 1,554 | $ 1,828 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available for Sale Securities, Amortized Cost | ||
Due in one year or less, amortized cost | $ 357 | |
Due from one year to five years, amortized cost | 2,434 | |
Due from five years to ten years, amortized cost | 69,494 | |
Due after ten years, amortized cost | 168,027 | |
Available for sale securities, with single maturity date, amortized cost | 240,312 | |
Amortized Cost | 303,553 | $ 263,519 |
Available for Sale Securities, Fair Value | ||
Due in one year or less, fair value | 356 | |
Due from one year to five years, fair value | 2,404 | |
Due from five years to ten years, fair value | 69,516 | |
Due after ten years, fair value | 168,805 | |
Available for sale securities, with single maturity date, fair value | 241,081 | |
Available for Sale Securities, Fair Value | 299,644 | 254,504 |
Held to Maturity Securities, Amortized Cost | ||
Due in one year or less, amortized cost | 0 | |
Due from one year to five years, amortized cost | 4,766 | |
Due from five years to ten years, amortized cost | 1,401 | |
Due after ten years, amortized cost | 0 | |
Held to maturity securities, with single maturity date, amortized cost | 6,167 | |
Amortized Cost | 6,167 | |
Held to Maturity Securities, Fair Value | ||
Due in one year or less, fair value | 0 | |
Due from one year to five years, fair value | 2,584 | |
Due from five years to ten years, fair value | 1,431 | |
Due after ten years, fair value | 0 | |
Held to maturity securities, with single maturity date, fair value | 4,015 | |
Held to Maturity Securities, Fair Value | 4,015 | 5,476 |
Mortgage-backed securities, residential | ||
Available for Sale Securities, Amortized Cost | ||
Available for sale securities, without single maturity date, amortized cost | 60,411 | |
Amortized Cost | 60,411 | 55,329 |
Available for Sale Securities, Fair Value | ||
Securities- held to maturity, net of allowance for credit losses, fair value | 55,839 | |
Available for Sale Securities, Fair Value | 55,839 | 50,633 |
Held to Maturity Securities, Amortized Cost | ||
Held to maturity securities, without single maturity date, amortized cost | 0 | |
Held to Maturity Securities, Fair Value | ||
Held to maturity securities, without single maturity date, fair value | 0 | |
Asset-backed securities | ||
Available for Sale Securities, Amortized Cost | ||
Available for sale securities, without single maturity date, amortized cost | 1,188 | |
Amortized Cost | 1,188 | 6,389 |
Available for Sale Securities, Fair Value | ||
Securities- held to maturity, net of allowance for credit losses, fair value | 1,170 | |
Available for Sale Securities, Fair Value | 1,170 | 6,331 |
Held to Maturity Securities, Amortized Cost | ||
Held to maturity securities, without single maturity date, amortized cost | 0 | |
Held to Maturity Securities, Fair Value | ||
Held to maturity securities, without single maturity date, fair value | 0 | |
SBA pooled securities | ||
Available for Sale Securities, Amortized Cost | ||
Available for sale securities, without single maturity date, amortized cost | 1,642 | |
Amortized Cost | 1,642 | 1,910 |
Available for Sale Securities, Fair Value | ||
Securities- held to maturity, net of allowance for credit losses, fair value | 1,554 | |
Available for Sale Securities, Fair Value | 1,554 | $ 1,828 |
Held to Maturity Securities, Amortized Cost | ||
Held to maturity securities, without single maturity date, amortized cost | 0 | |
Held to Maturity Securities, Fair Value | ||
Held to maturity securities, without single maturity date, fair value | $ 0 |
Securities - Schedule of Procee
Securities - Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 15,996 | $ 40,163 | $ 0 |
Gross gains | 103 | 2,514 | 0 |
Gross losses | 0 | 0 | 0 |
Net gains and losses from calls of securities | $ (1) | $ (2) | $ 5 |
Securities - Schedule of Inform
Securities - Schedule of Information Pertaining to Debt Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 18,094 | $ 193,142 |
Less than 12 months, unrealized losses | (365) | (5,201) |
12 months or more, fair value | 79,103 | 40,261 |
12 months or more, unrealized losses | (4,913) | (4,241) |
Total, fair value | 97,197 | 233,403 |
Total, unrealized losses | (5,278) | (9,442) |
Mortgage-backed securities, residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 13,157 | 26,030 |
Less than 12 months, unrealized losses | (312) | (1,507) |
12 months or more, fair value | 32,885 | 15,828 |
12 months or more, unrealized losses | (4,481) | (3,424) |
Total, fair value | 46,042 | 41,858 |
Total, unrealized losses | (4,793) | (4,931) |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 1,170 | 1,337 |
Less than 12 months, unrealized losses | (18) | (52) |
12 months or more, fair value | 0 | 4,994 |
12 months or more, unrealized losses | 0 | (6) |
Total, fair value | 1,170 | 6,331 |
Total, unrealized losses | (18) | (58) |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 975 | 12,680 |
Less than 12 months, unrealized losses | (13) | (116) |
12 months or more, fair value | 2,424 | 0 |
12 months or more, unrealized losses | (33) | 0 |
Total, fair value | 3,399 | 12,680 |
Total, unrealized losses | (46) | (116) |
CLO Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 2,576 | 151,572 |
Less than 12 months, unrealized losses | (13) | (3,407) |
12 months or more, fair value | 42,735 | 19,439 |
12 months or more, unrealized losses | (317) | (811) |
Total, fair value | 45,311 | 171,011 |
Total, unrealized losses | (330) | (4,218) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 0 | 261 |
Less than 12 months, unrealized losses | 0 | (8) |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized losses | 0 | 0 |
Total, fair value | 0 | 261 |
Total, unrealized losses | 0 | (8) |
SBA pooled securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | 216 | 1,262 |
Less than 12 months, unrealized losses | (9) | (111) |
12 months or more, fair value | 1,059 | 0 |
12 months or more, unrealized losses | (82) | 0 |
Total, fair value | 1,275 | 1,262 |
Total, unrealized losses | $ (91) | $ (111) |
Securities - Summary of Activit
Securities - Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Beginning balance | $ 2,444 | $ 2,082 | $ 2,026 |
Credit loss expense (benefit) | 746 | 362 | 56 |
Allowance for credit losses ending balance | $ 3,190 | $ 2,444 | $ 2,082 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Schedule of Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 1,236 | $ 5,641 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | 1,230 | 0 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans held for sale | $ 6 | $ 5,641 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 4,163,100 | $ 4,120,291 |
Unpaid Principal | 4,173,618 | 4,136,981 |
Difference | (10,518) | (16,690) |
Allowance for credit losses | (35,219) | (42,807) |
Loans, net | 4,127,881 | 4,077,484 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 812,704 | 678,144 |
Unpaid Principal | 813,623 | 679,239 |
Difference | (919) | (1,095) |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 136,720 | 90,976 |
Unpaid Principal | 137,209 | 91,147 |
Difference | (489) | (171) |
1-4 family residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 125,916 | 125,981 |
Unpaid Principal | 126,096 | 126,185 |
Difference | (180) | (204) |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 63,568 | 68,934 |
Unpaid Principal | 63,728 | 69,185 |
Difference | (160) | (251) |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,170,365 | 1,251,110 |
Unpaid Principal | 1,176,243 | 1,262,493 |
Difference | (5,878) | (11,383) |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,116,654 | 1,237,449 |
Unpaid Principal | 1,119,544 | 1,241,032 |
Difference | (2,890) | (3,583) |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 8,326 | 8,868 |
Unpaid Principal | 8,328 | 8,871 |
Difference | (2) | (3) |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 728,847 | 658,829 |
Unpaid Principal | 728,847 | 658,829 |
Difference | $ 0 | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Premiums and discounts on acquired loans | $ 6,861 | $ 13,383 | ||
Net deferred origination and factoring fees | 3,657 | 3,307 | ||
Accrued interest on loans | $ 30,686 | $ 19,279 | ||
Percentage of factored receivables | 97% | 96% | ||
Percentage of factored receivables to total loan portfolio | 26% | 29% | ||
Misdirected payments | $ 4,163,100 | $ 4,120,291 | ||
Pledged loans | 1,588,532 | 1,356,922 | ||
Credit loss expense | 12,203 | 6,925 | $ (8,830) | |
ACL allocation | 35,219 | 42,807 | ||
Total past due advances | 45,677 | 18,296 | ||
Interest earned on nonaccrual loans | 0 | 0 | 0 | |
Commitments to lend | 0 | |||
Loans to borrowers experiencing financial difficulty that had payment default | 0 | |||
Past Due 90 Days or More | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Misdirected payments | 33,464 | 41,367 | ||
Loans Held for Investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net charge-offs | 19,814 | 6,445 | ||
Credit loss expense | 12,226 | 7,039 | (7,964) | |
ACL allocation | 35,219 | 42,807 | 42,213 | $ 95,739 |
Changes In Allowance For Credit Losses | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase in allowance for credit losses due to changes in projected loss drivers and prepayment assumptions | 1,978 | |||
Decrease in allowance for credit losses due to changes in loan volume and mix | 2,325 | |||
Decrease in allowance for credit losses due to decrease in specific reserves | 7,241 | |||
Factored receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer reserves associated with factored receivables | 253,492 | 249,288 | ||
Misdirected payments | 1,116,654 | 1,237,449 | ||
Total past due advances | 0 | 0 | ||
Factored receivables | Past Due 90 Days or More | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Misdirected payments | 26,332 | 37,142 | ||
Factored receivables | Over-Formula Advances | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Misdirected payments | 3,151 | 8,202 | ||
Net charge-offs | 3,330 | |||
Impact of net charge-off on credit loss expense | 0 | |||
Reimbursement for charge-off | 1,665 | |||
Factored receivables | Over-Formula Advances | Past Due 90 Days or More | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total past due advances | 3,151 | 8,202 | ||
Factored receivables | Misdirected Payments Receivable | United States Postal Service | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Misdirected payments | 19,361 | 19,361 | ||
ACL allocation | 0 | 0 | ||
Factored receivables | Loans Held for Investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit loss expense | 2,961 | 3,045 | 10,038 | |
ACL allocation | 11,896 | 19,121 | 20,915 | 56,463 |
1-4 family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Misdirected payments | 125,916 | 125,981 | ||
Total past due advances | 1,178 | 1,391 | ||
1-4 family residential | Past Due 90 Days or More | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Misdirected payments | 309 | 776 | ||
1-4 family residential | Loans Held for Investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit loss expense | 82 | 363 | (849) | |
ACL allocation | 927 | 838 | $ 468 | $ 1,225 |
1-4 family residential | Real Eatate Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential real estate loans in process of foreclosure | $ 0 | $ 129 | ||
Texas | Accounts Receivable | Geographic Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of customers located within states | 17% | 23% | ||
Colorado | Accounts Receivable | Geographic Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of customers located within states | 15% | 11% | ||
Illinois | Accounts Receivable | Geographic Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of customers located within states | 12% | 11% | ||
Iowa | Accounts Receivable | Geographic Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of customers located within states | 6% | 6% | ||
Texas, Colorado, Illinois, And Iowa | Accounts Receivable | Geographic Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of customers located within states | 50% | 51% |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Summary of Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 42,807 | ||
Credit Loss Expense (Benefit) | 12,203 | $ 6,925 | $ (8,830) |
Charge-offs | (21,477) | ||
Ending Balance | 35,219 | 42,807 | |
Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 42,807 | 42,213 | 95,739 |
Credit Loss Expense (Benefit) | 12,226 | 7,039 | (7,964) |
Charge-offs | (21,477) | (8,601) | (46,946) |
Recoveries | 1,663 | 2,156 | 1,384 |
Ending Balance | 35,219 | 42,807 | 42,213 |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (108) | ||
Commercial real estate | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 4,459 | 3,961 | 10,182 |
Credit Loss Expense (Benefit) | 1,593 | 546 | (6,214) |
Charge-offs | (108) | (108) | (17) |
Recoveries | 86 | 60 | 10 |
Ending Balance | 6,030 | 4,459 | 3,961 |
Construction, land development, land | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | 0 | ||
Construction, land development, land | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 1,155 | 827 | 3,418 |
Credit Loss Expense (Benefit) | (195) | 323 | (2,584) |
Charge-offs | 0 | 0 | (12) |
Recoveries | 5 | 5 | 5 |
Ending Balance | 965 | 1,155 | 827 |
1-4 family residential properties | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (5) | ||
1-4 family residential properties | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 838 | 468 | 1,225 |
Credit Loss Expense (Benefit) | 82 | 363 | (849) |
Charge-offs | (5) | 0 | (34) |
Recoveries | 12 | 7 | 126 |
Ending Balance | 927 | 838 | 468 |
Farmland | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | 0 | ||
Farmland | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 483 | 562 | 832 |
Credit Loss Expense (Benefit) | (41) | (79) | (270) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 442 | 483 | 562 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (9,804) | ||
Commercial | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 15,918 | 14,485 | 22,040 |
Credit Loss Expense (Benefit) | 7,712 | 2,713 | (7,725) |
Charge-offs | (9,804) | (2,205) | (481) |
Recoveries | 234 | 925 | 651 |
Ending Balance | 14,060 | 15,918 | 14,485 |
Factored receivables | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (10,997) | ||
Factored receivables | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 19,121 | 20,915 | 56,463 |
Credit Loss Expense (Benefit) | 2,961 | 3,045 | 10,038 |
Charge-offs | (10,997) | (5,853) | (46,043) |
Recoveries | 811 | 1,014 | 457 |
Ending Balance | 11,896 | 19,121 | 20,915 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (563) | ||
Consumer | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 175 | 226 | 542 |
Credit Loss Expense (Benefit) | 44 | 239 | (92) |
Charge-offs | (563) | (435) | (359) |
Recoveries | 515 | 145 | 135 |
Ending Balance | 171 | 175 | 226 |
Mortgage warehouse | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | 0 | ||
Mortgage warehouse | Loans Held for Investment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 658 | 769 | 1,037 |
Credit Loss Expense (Benefit) | 70 | (111) | (268) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | $ 728 | $ 658 | $ 769 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Individual and Collective Allowance for Credit Losses on Financing Receivables and Loan Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
ACL Allocation | $ 35,219 | $ 42,807 |
Collateral dependent loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 85,325 | 61,481 |
ACL Allocation | 10,929 | 18,170 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 2,518 | 1,143 |
ACL Allocation | 777 | 283 |
Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 150 |
ACL Allocation | 0 | 0 |
1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 1,178 | 1,391 |
ACL Allocation | 113 | 108 |
Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 968 | 400 |
ACL Allocation | 0 | 0 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 40,951 | 15,897 |
ACL Allocation | 3,322 | 4,737 |
Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 39,577 | 42,409 |
ACL Allocation | 6,717 | 13,042 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 133 | 91 |
ACL Allocation | 0 | 0 |
Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
ACL Allocation | 0 | 0 |
Real Estate | Collateral dependent loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 4,885 | 2,884 |
Real Estate | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 2,518 | 1,003 |
Real Estate | Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 150 |
Real Estate | 1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 1,156 | 1,342 |
Real Estate | Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 291 | 196 |
Real Estate | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 920 | 193 |
Real Estate | Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Real Estate | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Real Estate | Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | Collateral dependent loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 39,577 | 42,409 |
Accounts Receivable | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | 1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 39,577 | 42,409 |
Accounts Receivable | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Accounts Receivable | Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Equipment | Collateral dependent loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 18,259 | 5,442 |
Equipment | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Equipment | Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Equipment | 1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Equipment | Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 108 |
Equipment | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 18,259 | 5,334 |
Equipment | Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Equipment | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Equipment | Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Other | Collateral dependent loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 22,604 | 10,746 |
Other | Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 140 |
Other | Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Other | 1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 22 | 49 |
Other | Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 677 | 96 |
Other | Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 21,772 | 10,370 |
Other | Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 0 | 0 |
Other | Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | 133 | 91 |
Other | Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis of collateral dependent loans | $ 0 | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Summary of Contractually Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 4,163,100 | $ 4,120,291 |
Past Due 90 Days or More Still Accruing | 26,332 | 37,142 |
Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 83,069 | 104,445 |
Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 37,659 | 46,716 |
Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 11,946 | 16,362 |
Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 33,464 | 41,367 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 4,080,031 | 4,015,846 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 812,704 | 678,144 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
Commercial real estate | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,443 | 1,756 |
Commercial real estate | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 1,301 |
Commercial real estate | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 74 | 0 |
Commercial real estate | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,369 | 455 |
Commercial real estate | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 811,261 | 676,388 |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 136,720 | 90,976 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
Construction, land development, land | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 145 |
Construction, land development, land | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Construction, land development, land | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Construction, land development, land | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 145 |
Construction, land development, land | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 136,720 | 90,831 |
1-4 family residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 125,916 | 125,981 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
1-4 family residential properties | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,628 | 2,243 |
1-4 family residential properties | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 680 | 936 |
1-4 family residential properties | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 639 | 531 |
1-4 family residential properties | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 309 | 776 |
1-4 family residential properties | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 124,288 | 123,738 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 63,568 | 68,934 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
Farmland | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 173 | 0 |
Farmland | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 173 | 0 |
Farmland | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Farmland | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Farmland | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 63,395 | 68,934 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,170,365 | 1,251,110 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
Commercial | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 14,707 | 7,616 |
Commercial | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 4,585 | 1,630 |
Commercial | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 4,699 | 3,139 |
Commercial | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 5,423 | 2,847 |
Commercial | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,155,658 | 1,243,494 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,116,654 | 1,237,449 |
Past Due 90 Days or More Still Accruing | 26,332 | 37,142 |
Factored receivables | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 64,947 | 92,590 |
Factored receivables | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 32,177 | 42,797 |
Factored receivables | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 6,438 | 12,651 |
Factored receivables | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 26,332 | 37,142 |
Factored receivables | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,051,707 | 1,144,859 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 8,326 | 8,868 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
Consumer | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 171 | 95 |
Consumer | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 44 | 52 |
Consumer | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 96 | 41 |
Consumer | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 31 | 2 |
Consumer | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 8,155 | 8,773 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 728,847 | 658,829 |
Past Due 90 Days or More Still Accruing | 0 | 0 |
Mortgage warehouse | Total Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Mortgage warehouse | Past Due 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Mortgage warehouse | Past Due 60-90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Mortgage warehouse | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Mortgage warehouse | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 728,847 | $ 658,829 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis of Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | $ 45,677 | $ 18,296 |
Nonaccrual With No ACL | 35,507 | 5,860 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 2,447 | 871 |
Nonaccrual With No ACL | 190 | 319 |
Construction, land development, land | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 0 | 150 |
Nonaccrual With No ACL | 0 | 150 |
1-4 family residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 1,178 | 1,391 |
Nonaccrual With No ACL | 1,028 | 1,238 |
Farmland | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 968 | 400 |
Nonaccrual With No ACL | 968 | 400 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 40,951 | 15,393 |
Nonaccrual With No ACL | 33,188 | 3,662 |
Factored receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 0 | 0 |
Nonaccrual With No ACL | 0 | 0 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 133 | 91 |
Nonaccrual With No ACL | 133 | 91 |
Mortgage warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total Nonaccrual | 0 | 0 |
Nonaccrual With No ACL | $ 0 | $ 0 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | $ 191 | $ 31 | $ 56 |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 17 | 0 | 8 |
Construction, land development, land | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 0 | 2 | 0 |
1-4 family residential | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 8 | 1 | 3 |
Farmland | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 57 | 0 | 6 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 105 | 28 | 36 |
Factored receivables | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 0 | 0 | 0 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | 4 | 0 | 3 |
Mortgage warehouse | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accrued interest reversed through interest income | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Schedule of Nonperforming Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 45,677 | $ 18,296 |
Factored receivables greater than 90 days past due | 26,332 | 37,142 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Factored receivables greater than 90 days past due | 26,332 | 37,142 |
Nonperforming Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 45,677 | 18,296 |
Other nonperforming factored receivables | 0 | 491 |
Troubled debt restructurings accruing interest | 0 | 503 |
Total loans | 68,858 | 48,230 |
Nonperforming Loans | Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Factored receivables greater than 90 days past due | $ 23,181 | $ 28,940 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Analysis Performed Risk Category Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | $ 2,588,343 | $ 2,593,213 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 6,106 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 402,096 | 396,193 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 6,937 | |
Financing receivable, year three, originated, two years before current fiscal year | 212,272 | 393,487 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 4,505 | |
Financing receivable, year four, originated, three years before current fiscal year | 222,863 | 80,301 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 3,832 | |
Financing receivable, year five, originated, four years before current fiscal year | 48,890 | 34,304 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 44 | |
Prior | 87,361 | 91,678 |
Prior, gross charge-offs | 53 | |
Revolving Loans | 600,417 | 530,450 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 858 | 665 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 4,163,100 | 4,120,291 |
Charge-offs | 21,477 | |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 2,449,634 | 2,564,651 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 381,989 | 382,067 |
Financing receivable, year three, originated, two years before current fiscal year | 204,998 | 367,878 |
Financing receivable, year four, originated, three years before current fiscal year | 199,176 | 79,063 |
Financing receivable, year five, originated, four years before current fiscal year | 48,703 | 34,199 |
Prior | 86,456 | 90,206 |
Revolving Loans | 600,200 | 530,088 |
Revolving Loans Converted To Term Loans | 858 | 665 |
Total | 3,972,014 | 4,048,817 |
Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 138,709 | 28,562 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 20,107 | 14,126 |
Financing receivable, year three, originated, two years before current fiscal year | 7,274 | 25,609 |
Financing receivable, year four, originated, three years before current fiscal year | 23,687 | 1,238 |
Financing receivable, year five, originated, four years before current fiscal year | 187 | 105 |
Prior | 905 | 1,472 |
Revolving Loans | 217 | 362 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 191,086 | 71,474 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 335,844 | 235,095 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 108 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 119,834 | 157,446 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 100,114 | 200,396 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 117,094 | 28,072 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 16,388 | 17,786 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 34,724 | 35,674 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 88,547 | 3,675 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 159 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 812,704 | 678,144 |
Charge-offs | 108 | |
Commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 244,388 | 231,427 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 119,169 | 156,895 |
Financing receivable, year three, originated, two years before current fiscal year | 98,484 | 198,541 |
Financing receivable, year four, originated, three years before current fiscal year | 116,078 | 28,033 |
Financing receivable, year five, originated, four years before current fiscal year | 16,351 | 17,786 |
Prior | 34,724 | 35,658 |
Revolving Loans | 88,547 | 3,675 |
Revolving Loans Converted To Term Loans | 159 | 0 |
Total | 717,900 | 672,015 |
Commercial real estate | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 91,456 | 3,668 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 665 | 551 |
Financing receivable, year three, originated, two years before current fiscal year | 1,630 | 1,855 |
Financing receivable, year four, originated, three years before current fiscal year | 1,016 | 39 |
Financing receivable, year five, originated, four years before current fiscal year | 37 | 0 |
Prior | 0 | 16 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 94,804 | 6,129 |
Construction, land development, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 91,557 | 71,236 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 34,683 | 11,328 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 1,668 | 4,540 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 2,996 | 3,186 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 2,928 | 35 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 276 | 651 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 2,612 | 0 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 136,720 | 90,976 |
Charge-offs | 0 | |
Construction, land development, land | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 91,557 | 71,236 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 34,683 | 11,328 |
Financing receivable, year three, originated, two years before current fiscal year | 1,668 | 4,535 |
Financing receivable, year four, originated, three years before current fiscal year | 2,996 | 3,186 |
Financing receivable, year five, originated, four years before current fiscal year | 2,928 | 35 |
Prior | 276 | 506 |
Revolving Loans | 2,612 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 136,720 | 90,826 |
Construction, land development, land | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 5 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 145 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 0 | 150 |
1-4 family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 22,933 | 26,443 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 5 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 16,337 | 22,838 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 19,641 | 9,543 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 7,229 | 2,982 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 2,502 | 3,529 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 21,540 | 21,916 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 35,560 | 38,430 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 174 | 300 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 125,916 | 125,981 |
Charge-offs | 5 | |
1-4 family residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 22,637 | 26,306 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 16,336 | 22,639 |
Financing receivable, year three, originated, two years before current fiscal year | 19,542 | 9,536 |
Financing receivable, year four, originated, three years before current fiscal year | 7,229 | 2,929 |
Financing receivable, year five, originated, four years before current fiscal year | 2,462 | 3,528 |
Prior | 20,950 | 20,910 |
Revolving Loans | 35,373 | 38,361 |
Revolving Loans Converted To Term Loans | 174 | 300 |
Total | 124,703 | 124,509 |
1-4 family residential | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 296 | 137 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 1 | 199 |
Financing receivable, year three, originated, two years before current fiscal year | 99 | 7 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 53 |
Financing receivable, year five, originated, four years before current fiscal year | 40 | 1 |
Prior | 590 | 1,006 |
Revolving Loans | 187 | 69 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 1,213 | 1,472 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 13,817 | 19,252 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 13,628 | 10,087 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 5,586 | 10,147 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 7,894 | 2,807 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 2,382 | 6,742 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 18,747 | 18,679 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 1,359 | 1,016 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 155 | 204 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 63,568 | 68,934 |
Charge-offs | 0 | |
Farmland | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 13,140 | 18,190 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 13,628 | 7,291 |
Financing receivable, year three, originated, two years before current fiscal year | 5,586 | 10,027 |
Financing receivable, year four, originated, three years before current fiscal year | 7,876 | 2,699 |
Financing receivable, year five, originated, four years before current fiscal year | 2,296 | 6,742 |
Prior | 18,542 | 18,569 |
Revolving Loans | 1,359 | 1,016 |
Revolving Loans Converted To Term Loans | 155 | 204 |
Total | 62,582 | 64,738 |
Farmland | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 677 | 1,062 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 2,796 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 120 |
Financing receivable, year four, originated, three years before current fiscal year | 18 | 108 |
Financing receivable, year five, originated, four years before current fiscal year | 86 | 0 |
Prior | 205 | 110 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 986 | 4,196 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 297,043 | 369,704 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 100 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 216,172 | 192,512 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 4,619 | |
Financing receivable, year three, originated, two years before current fiscal year | 84,587 | 140,402 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 4,493 | |
Financing receivable, year four, originated, three years before current fiscal year | 64,731 | 42,950 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 499 | |
Financing receivable, year five, originated, four years before current fiscal year | 24,607 | 5,938 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 44 | |
Prior | 10,556 | 12,261 |
Prior, gross charge-offs | 49 | |
Revolving Loans | 472,299 | 487,182 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 370 | 161 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 1,170,365 | 1,251,110 |
Charge-offs | 9,804 | |
Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 269,496 | 358,983 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 196,731 | 181,933 |
Financing receivable, year three, originated, two years before current fiscal year | 79,125 | 136,635 |
Financing receivable, year four, originated, three years before current fiscal year | 61,440 | 41,912 |
Financing receivable, year five, originated, four years before current fiscal year | 24,583 | 5,842 |
Prior | 10,476 | 12,145 |
Revolving Loans | 472,269 | 486,889 |
Revolving Loans Converted To Term Loans | 370 | 161 |
Total | 1,114,490 | 1,224,500 |
Commercial | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 27,547 | 10,721 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 19,441 | 10,579 |
Financing receivable, year three, originated, two years before current fiscal year | 5,462 | 3,767 |
Financing receivable, year four, originated, three years before current fiscal year | 3,291 | 1,038 |
Financing receivable, year five, originated, four years before current fiscal year | 24 | 96 |
Prior | 80 | 116 |
Revolving Loans | 30 | 293 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 55,875 | 26,610 |
Factored receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 1,094,142 | 1,209,886 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 5,374 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 2,293 | |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 27,563 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 22,512 | 0 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 3,330 | |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 0 | 0 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 0 | 0 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 1,116,654 | 1,237,449 |
Charge-offs | 10,997 | |
Factored receivables | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 1,075,428 | 1,196,912 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 7,710 |
Financing receivable, year four, originated, three years before current fiscal year | 3,151 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 1,078,579 | 1,204,622 |
Factored receivables | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 18,714 | 12,974 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 19,853 |
Financing receivable, year four, originated, three years before current fiscal year | 19,361 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 38,075 | 32,827 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 4,160 | 2,768 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 519 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 1,442 | 1,982 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 25 | |
Financing receivable, year three, originated, two years before current fiscal year | 676 | 896 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 12 | |
Financing receivable, year four, originated, three years before current fiscal year | 407 | 304 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 3 | |
Financing receivable, year five, originated, four years before current fiscal year | 83 | 274 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 1,518 | 2,497 |
Prior, gross charge-offs | 4 | |
Revolving Loans | 40 | 147 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 8,326 | 8,868 |
Charge-offs | 563 | |
Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 4,141 | 2,768 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 1,442 | 1,981 |
Financing receivable, year three, originated, two years before current fiscal year | 593 | 894 |
Financing receivable, year four, originated, three years before current fiscal year | 406 | 304 |
Financing receivable, year five, originated, four years before current fiscal year | 83 | 266 |
Prior | 1,488 | 2,418 |
Revolving Loans | 40 | 147 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 8,193 | 8,778 |
Consumer | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 19 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 1 |
Financing receivable, year three, originated, two years before current fiscal year | 83 | 2 |
Financing receivable, year four, originated, three years before current fiscal year | 1 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 8 |
Prior | 30 | 79 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 133 | 90 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 728,847 | 658,829 |
Financing receivable, year one, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year four, originated, three years before current fiscal year, gross charge-offs | 0 | |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year, gross charge-offs | 0 | |
Prior | 0 | 0 |
Prior, gross charge-offs | 0 | |
Revolving Loans | 0 | 0 |
Revolving loans, gross charge-offs | 0 | |
Revolving Loans Converted To Term Loans | 0 | 0 |
Revolving loans converted to term loans, gross charge-offs | 0 | |
Total | 728,847 | 658,829 |
Charge-offs | 0 | |
Mortgage warehouse | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 728,847 | 658,829 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | 728,847 | 658,829 |
Mortgage warehouse | Classified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, year five, originated, four years before current fiscal year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted To Term Loans | 0 | 0 |
Total | $ 0 | $ 0 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Amortized Cost Basis of Loan Modifications (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Term Extension | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 2,838 |
% of Portfolio | 0.10% |
Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 22,547 |
% of Portfolio | 0.50% |
Term Extension and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 83,845 |
% of Portfolio | 2% |
Payment Delay and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 23,001 |
% of Portfolio | 0.60% |
Commercial real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 415 |
% of Portfolio | 0.10% |
Commercial real estate | Term Extension and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 83,349 |
% of Portfolio | 10.30% |
Commercial real estate | Payment Delay and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 23,001 |
% of Portfolio | 2.80% |
1-4 family residential | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 271 |
% of Portfolio | 0.20% |
Farmland | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 604 |
% of Portfolio | 1% |
Commercial | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 1,548 |
% of Portfolio | 0.10% |
Commercial | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 22,547 |
% of Portfolio | 1.90% |
Commercial | Term Extension and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Amortized Cost | $ 496 |
% of Portfolio | 0% |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Financial Effect of Loan Modifications (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Commercial real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 1 year 1 month 6 days |
Commercial real estate | Term Extension and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 6 months |
Weighted average contractual interest rate, before modification | 10.10% |
Weighted average contractual interest rate, after modification | 5.10% |
Commercial real estate | Payment Delay and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 9 months 18 days |
Weighted average contractual interest rate, before modification | 9.40% |
Weighted average contractual interest rate, after modification | 6% |
1-4 family residential | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 6 months |
Farmland | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 6 months |
Commercial | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 1 year 6 months |
Commercial | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 7 months 6 days |
Commercial | Term Extension and Rate Reduction | |
Financing Receivable, Modified [Line Items] | |
Weighted average years added to life of modified loans | 3 months 18 days |
Weighted average contractual interest rate, before modification | 10.50% |
Weighted average contractual interest rate, after modification | 9.50% |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Performance of Modified Loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Current | |
Financing Receivable, Modified [Line Items] | |
Modified loans | $ 131,478 |
Current | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 106,765 |
Current | 1-4 family residential | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 271 |
Current | Farmland | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 604 |
Current | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 23,838 |
Past Due 30-89 Days | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 753 |
Past Due 30-89 Days | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | 1-4 family residential | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | Farmland | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 30-89 Days | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 753 |
Past Due 90 Days or More | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | Commercial real estate | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | 1-4 family residential | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | Farmland | |
Financing Receivable, Modified [Line Items] | |
Modified loans | 0 |
Past Due 90 Days or More | Commercial | |
Financing Receivable, Modified [Line Items] | |
Modified loans | $ 0 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 0 | $ 524 | $ 1,432 |
Loans transferred to OREO | 37 | 47 | 692 |
Net OREO gains (losses) and valuation adjustments | 0 | (133) | (347) |
Sales of OREO | 0 | (438) | (1,253) |
Ending balance | $ 37 | $ 0 | $ 524 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 174,641 | $ 150,881 |
Accumulated depreciation | (61,184) | (47,542) |
Premises and equipment, net | 113,457 | 103,339 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,080 | 13,080 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 58,282 | 55,001 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 39,499 | 37,406 |
Automobiles and aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 22,966 | 9,929 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 40,814 | $ 35,465 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 13,801 | $ 13,302 | $ 12,037 |
Lease liabilities | 32,311 | 34,035 | |
Operating lease right-of-use assets | $ 29,527 | $ 30,973 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Remaining lease term | 6 years 7 months 2 days | 7 years 8 months 12 days | |
Discount rate (as a percent) | 3% | 2.90% |
Premises and Equipment - Sche_2
Premises and Equipment - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Operating lease cost | $ 5,294 | $ 4,242 | $ 4,538 |
Short-term lease cost | 460 | 0 | 0 |
Variable lease cost | 145 | 880 | 443 |
Total lease cost | $ 5,899 | $ 5,122 | $ 4,981 |
Premises and Equipment - Sche_3
Premises and Equipment - Schedule of Total Operating Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Within one year | $ 6,443 | |
After one but within two years | 6,299 | |
After two but within three years | 5,376 | |
After three but within four years | 4,856 | |
After four but within five years | 3,979 | |
After five years | 8,971 | |
Total undiscounted cash flows | 35,924 | |
Discount on cash flows | (3,613) | |
Total lease liability | $ 32,311 | $ 34,035 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 233,709 | $ 233,709 |
Gross Carrying Amount | 93,962 | 90,920 |
Accumulated Amortization | (70,316) | (58,862) |
Net Carrying Amount | 23,646 | 32,058 |
Core deposit intangibles | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43,578 | 43,578 |
Accumulated Amortization | (38,084) | (35,347) |
Net Carrying Amount | 5,494 | 8,231 |
Software intangible asset | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,932 | 16,932 |
Accumulated Amortization | (10,935) | (6,702) |
Net Carrying Amount | 5,997 | 10,230 |
Other intangible assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,452 | 30,410 |
Accumulated Amortization | (21,297) | (16,813) |
Net Carrying Amount | $ 12,155 | $ 13,597 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Changes in Goodwill and Intangible Assets by Operating Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill and intangible assets, beginning balance | $ 265,767 | $ 276,856 | $ 189,922 |
Acquired goodwill | 73,697 | ||
Acquired goodwill - measurement period adjustment | (18) | (3,179) | |
Acquired intangibles | 3,042 | 851 | 27,292 |
Amortization of intangibles | (11,454) | (11,922) | (10,876) |
Goodwill and intangible assets, ending balance | 257,355 | 265,767 | 276,856 |
Operating Segments | Banking | |||
Goodwill [Roll Forward] | |||
Goodwill and intangible assets, beginning balance | 116,296 | 119,306 | 123,882 |
Acquired goodwill | 0 | ||
Acquired goodwill - measurement period adjustment | 0 | 0 | |
Acquired intangibles | 0 | 751 | 0 |
Amortization of intangibles | (2,950) | (3,761) | (4,576) |
Goodwill and intangible assets, ending balance | 113,346 | 116,296 | 119,306 |
Operating Segments | Factoring | |||
Goodwill [Roll Forward] | |||
Goodwill and intangible assets, beginning balance | 60,982 | 63,275 | 66,040 |
Acquired goodwill | 0 | ||
Acquired goodwill - measurement period adjustment | 0 | 59 | |
Acquired intangibles | 0 | 0 | 0 |
Amortization of intangibles | (1,821) | (2,293) | (2,824) |
Goodwill and intangible assets, ending balance | 59,161 | 60,982 | 63,275 |
Operating Segments | Payments | |||
Goodwill [Roll Forward] | |||
Goodwill and intangible assets, beginning balance | 88,389 | 94,275 | 0 |
Acquired goodwill | 73,697 | ||
Acquired goodwill - measurement period adjustment | (18) | (3,238) | |
Acquired intangibles | 3,042 | 0 | 27,292 |
Amortization of intangibles | (6,683) | (5,868) | (3,476) |
Goodwill and intangible assets, ending balance | 84,748 | 88,389 | 94,275 |
Operating Segments | Corporate | |||
Goodwill [Roll Forward] | |||
Goodwill and intangible assets, beginning balance | 100 | 0 | 0 |
Acquired goodwill | 0 | ||
Acquired goodwill - measurement period adjustment | 0 | 0 | |
Acquired intangibles | 0 | 100 | 0 |
Amortization of intangibles | 0 | 0 | 0 |
Goodwill and intangible assets, ending balance | $ 100 | $ 100 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset impairment charge | $ 0 | $ 0 | $ 0 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 4 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives | 11 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization Related to Company's Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 10,312 |
2025 | 5,735 |
2026 | 2,611 |
2027 | 1,681 |
2028 | 1,007 |
Thereafter | 1,449 |
Net Carrying Amount | 22,795 |
Indefinite lived intangible assets | $ 851 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Closed CLO Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 20, 2017 | Sep. 22, 2016 | Jun. 02, 2016 |
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 109,500 | |||
Trinitas IV | CLO securities | ||||
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 406,650 | |||
Trinitas V | CLO securities | ||||
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 409,000 | |||
Trinitas VI | CLO securities | ||||
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 717,100 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Net carrying amount of investment in CLO funds | $ 2,977 | $ 4,077 |
CLO securities | ||
Variable Interest Entity [Line Items] | ||
Net carrying amount of investment in CLO funds | $ 2,977 | $ 4,077 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 04, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||||
Derivative, notional amount | $ 0 | $ 0 | ||
Reclassification into earnings | $ 0 | 9,316 | $ (93) | |
Discontinued Cash Flow Hedge | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Derivative [Line Items] | ||||
Derivative termination value | 9,316 | |||
Other Assets | Interest rate swaps | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 200,000 | |||
Interest Expense | Discontinued Cash Flow Hedge | ||||
Derivative [Line Items] | ||||
Hedging termination fee | $ 732 | |||
Interest Expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Reclassification into earnings | $ 465 | |||
Other Noninterest Income | Discontinued Cash Flow Hedge | ||||
Derivative [Line Items] | ||||
Reclassification into earnings | $ 8,851 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Pre-Tax Impact of Terminated Cash Flow Hedge on AOCI (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | |
Beginning Balance | $ 858,864 |
Ending Balance | 888,971 |
Discontinued Cash Flow Hedge | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | |
Beginning Balance | 0 |
Unrealized gains arising during the period | 9,316 |
Reclassification adjustments for amortization of unrealized (gains) into net income | (9,316) |
Ending Balance | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect on Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI on Derivative and Included Component | $ 0 | $ (4,705) | $ 4,066 |
Amount of Gain or (Loss) Reclassified from AOCI into Income and Included Component | $ 0 | 7,103 | (71) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI on Derivative and Included Component | 2,398 | 3,995 | |
Interest rate swaps | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Reclassified from AOCI into Income and Included Component | $ 7,103 | $ (71) |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 1,632,022 | $ 1,756,680 |
Interest-bearing demand | 757,455 | 856,512 |
Individual retirement accounts | 52,195 | 68,125 |
Money market | 568,772 | 508,534 |
Savings | 555,047 | 551,780 |
Certificates of deposit | 265,525 | 319,150 |
Brokered time deposits | 146,458 | 110,555 |
Other brokered deposits | 4 | 0 |
Total deposits | $ 3,977,478 | $ 4,171,336 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits, Including Certificates of Deposits, Individual Retirement Accounts and Brokered Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits [Abstract] | |
Within one year | $ 423,753 |
After one but within two years | 27,762 |
After two but within three years | 6,651 |
After three but within four years | 4,043 |
After four but within five years | 1,969 |
Total | $ 464,178 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Time deposits with individual balances of $250,000 and greater | $ 66,172 | $ 58,462 |
Borrowings and Borrowing Capa_3
Borrowings and Borrowing Capacity - Summary of Customer Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Amount outstanding at end of the year | $ 0 | $ 340 |
Weighted average interest rate at end of the year | 0% | 0.03% |
Average daily balance during the year | $ 723 | $ 6,701 |
Weighted average interest rate during the year | 0.03% | 0.03% |
Maximum month-end balance during the year | $ 3,208 | $ 13,463 |
Borrowings and Borrowing Capa_4
Borrowings and Borrowing Capacity - Summary of Customer Repurchase Agreements are Secured by Pledged Securities with Carrying Amount (Details) - Asset Pledged as Collateral - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt securities | $ 42,445 | $ 93,813 |
Asset-backed securities | Customer Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Debt securities | $ 0 | $ 4,994 |
Borrowings and Borrowing Capa_5
Borrowings and Borrowing Capacity - Summary of FHLB Advances and Weighted Average Interest Rates by Contractual Maturity (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023, balance outstanding, fixed rate | $ 225,000 |
2023, fixed weighted average interest rate | 5.65% |
2023, balance outstanding, variable rate | $ 0 |
2023, variable weighted average interest rate | 0% |
2027, balance outstanding, fixed rate | $ 0 |
2027, fixed weighted average interest rate | 0% |
2027, balance outstanding, variable rate | $ 30,000 |
2027, variable weighted average interest rate | 5.64% |
Total balance outstanding, fixed rate | $ 225,000 |
Total fixed weighted average interest rate | 5.65% |
Total balance outstanding, variable rate | $ 30,000 |
Total variable weighted average interest rate | 5.64% |
Borrowings and Borrowing Capa_6
Borrowings and Borrowing Capacity - Summary of Information Concerning FHLB Advances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Amount outstanding at end of the year | $ 255,000,000 | $ 30,000,000 |
Weighted average interest rate at end of the year | 5.65% | 4.25% |
Average daily balance during the year | $ 194,795,000 | $ 69,658,000 |
Weighted average interest rate during the year | 5.30% | 1.19% |
Maximum month-end balance during the year | $ 530,000,000 | $ 230,000,000 |
Borrowings and Borrowing Capa_7
Borrowings and Borrowing Capacity - Schedule of FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Borrowing capacity | $ 842,016 | $ 676,307 |
Borrowings outstanding | (255,000) | (30,000) |
Unused borrowing capacity | $ 587,016 | $ 646,307 |
Borrowings and Borrowing Capa_8
Borrowings and Borrowing Capacity - Summary of Paycheck Protection Program Borrowings (Details) - Paycheck Protection Program - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Amount outstanding at end of period | $ 0 | $ 0 | $ 27,144 |
Weighted average interest rate at end of period | 0% | 0% | 0.35% |
Average amount outstanding during the period | $ 0 | $ 670 | $ 118,880 |
Weighted average interest rate during the period | 0% | 0.32% | 0.35% |
Highest month end balance during the period | $ 0 | $ 0 | $ 181,635 |
Borrowings and Borrowing Capa_9
Borrowings and Borrowing Capacity - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2021 USD ($) | Sep. 30, 2016 USD ($) | Dec. 31, 2023 USD ($) bank quarter | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Federal funds purchased | $ 0 | $ 0 | |||
Number of banks containing unsecured federal funds lines of credit | bank | 7 | ||||
Unsecured federal funds line of credit | $ 227,500 | ||||
Loans pledged as collateral | 4,127,881 | 4,077,484 | |||
Subordinated notes | 108,678 | 107,800 | |||
Subordinated notes issued | 109,500 | ||||
Deferred costs recognized as interest expense | $ 755 | ||||
Junior subordinated debentures | $ 41,740 | 41,158 | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Maximum interest deferment period on junior subordinated debentures | quarter | 20 | ||||
Federal Reserve Bank Discount Window Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 0 | 0 | |||
Unused borrowing capacity, amount | 569,858 | ||||
Federal Reserve Bank Discount Window Facility | Asset Pledged as Collateral | |||||
Debt Instrument [Line Items] | |||||
Loans pledged as collateral | 745,799 | ||||
Paycheck Protection Program | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 0 | $ 0 | $ 27,144 | ||
Fixed-to-Floating Rate Subordinated Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Subordinated notes issued | $ 50,000 | ||||
Current Interest Rate | 6.50% | ||||
Fixed-to-Floating Rate Subordinated Notes due 2026 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Spread on variable interest rate | 5.345% |
Borrowings and Borrowing Cap_10
Borrowings and Borrowing Capacity - Summary of Subordinated Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Face Value | $ 109,500 | |
Carrying Value | 108,678 | $ 107,800 |
Fixed-to-Floating Rate Subordinated Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Face Value | 39,500 | |
Carrying Value | $ 39,180 | |
Current Interest Rate | 4.875% | |
Initial Issuance Costs | $ 1,218 | |
Fixed-to-Floating Rate Subordinated Notes due 2029 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 3.33% | |
Fixed-to-Floating Rate Subordinated Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 70,000 | |
Carrying Value | $ 69,498 | |
Current Interest Rate | 3.50% | |
Initial Issuance Costs | $ 1,776 | |
Fixed-to-Floating Rate Subordinated Notes due 2031 | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 2.86% |
Borrowings and Borrowing Cap_11
Borrowings and Borrowing Capacity - Summary of Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Face Value | $ 51,031 | |
Carrying Value | 41,740 | $ 41,158 |
National Bancshares Capital Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | 15,464 | |
Carrying Value | $ 13,632 | |
Interest rate | 8.65% | |
National Bancshares Capital Trust II | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 3.26% | |
National Bancshares Capital Trust III | ||
Debt Instrument [Line Items] | ||
Face Value | $ 17,526 | |
Carrying Value | $ 13,640 | |
Interest rate | 7.30% | |
National Bancshares Capital Trust III | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 1.64% | |
ColoEast Capital Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 5,155 | |
Carrying Value | $ 3,838 | |
Interest rate | 7.19% | |
ColoEast Capital Trust I | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 1.86% | |
ColoEast Capital Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 6,700 | |
Carrying Value | $ 4,958 | |
Interest rate | 7.38% | |
ColoEast Capital Trust II | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 2.05% | |
Valley Bancorp Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,093 | |
Carrying Value | $ 2,921 | |
Interest rate | 9.02% | |
Valley Bancorp Statutory Trust I | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 3.66% | |
Valley Bancorp Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,093 | |
Carrying Value | $ 2,751 | |
Interest rate | 8.39% | |
Valley Bancorp Statutory Trust II | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 3.01% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Employer contribution percent towards compensation | 100% | ||
Compensation contributed percentage | 4% | ||
Compensation expense | $ 4,320 | $ 3,569 | $ 2,976 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expense: | |||
Current | $ 5,195 | $ 36,472 | $ 37,812 |
Deferred | 6,549 | (1,828) | (5,832) |
Change in valuation allowance for deferred tax asset | (10) | 49 | 0 |
Income tax expense | $ 11,734 | $ 34,693 | $ 31,980 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax provision computed at federal statutory rate | $ 11,091 | $ 28,771 | $ 30,440 |
State taxes, net | 1,920 | 4,849 | 3,335 |
Stock-based compensation | (2,661) | (369) | (1,778) |
Non-deductible executive compensation | 1,943 | 1,510 | 492 |
Non-deductible meals and entertainment | 808 | 441 | 508 |
Federal tax credits | (835) | (372) | (372) |
Bank-owned life insurance | (78) | (89) | (332) |
Tax exempt interest | (60) | (100) | (201) |
Change in valuation allowance for deferred tax asset | (10) | 49 | 0 |
Other | (384) | 3 | (112) |
Income tax expense | $ 11,734 | $ 34,693 | $ 31,980 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Federal net operating loss carryforwards | $ 5,562 | $ 6,396 |
State net operating loss carryforwards | 1,502 | 1,534 |
Stock-based compensation | 3,658 | 7,825 |
Unrealized loss on securities available for sale | 936 | 2,163 |
Allowance for credit losses | 10,098 | 11,825 |
Accrued liabilities | 5,362 | 4,179 |
Lease liability | 7,620 | 8,062 |
Other | 6,594 | 3,405 |
Total deferred tax assets | 41,332 | 45,389 |
Deferred tax liabilities | ||
Goodwill and intangible assets | 10,328 | 9,934 |
Fair value adjustment on junior subordinated debentures | 2,103 | 2,237 |
Premises and equipment | 10,220 | 6,339 |
Acquired loan basis | 331 | 371 |
Lease right-of-use asset | 6,988 | 7,339 |
Indemnification asset | 358 | 935 |
Other | 1,887 | 1,434 |
Total deferred tax liabilities | 32,215 | 28,589 |
Net deferred tax asset before valuation allowance | 9,117 | 16,800 |
Valuation allowance | (317) | (327) |
Net deferred tax asset | $ 8,800 | $ 16,473 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Taxes [Line Items] | ||
Operating loss carryforwards, not subject to expiration | $ 15,855 | |
Uncertain tax position | 0 | $ 0 |
EJ Acquisition | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 341 | |
Tax credit carryforwards remaining | 2,326 | |
NBI Acquisition | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 2,040 | |
Tax credit carryforwards remaining | 9,896 | |
HubTran, Inc. | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 1,594 | |
Tax credit carryforwards remaining | 14,262 | |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, net | 26,484 | 30,458 |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, net | 26,220 | $ 26,695 |
State | ColoEast Acquisition | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 1,906 | |
Tax credit carryforwards remaining | $ 2,445 |
Off-Balance Sheet Loan Commit_3
Off-Balance Sheet Loan Commitments - Summary of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 53,822 | $ 1,417 |
Variable Rate | 527,300 | 487,965 |
Total | 581,122 | 489,382 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 15,013 | 12,309 |
Variable Rate | 9,356 | 4,897 |
Total | 24,369 | 17,206 |
Commitments to purchase loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 17,125 | 53,572 |
Total | 17,125 | 53,572 |
Mortgage warehouse commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 0 | 0 |
Variable Rate | 895,896 | 1,055,117 |
Total | $ 895,896 | $ 1,055,117 |
Off-Balance Sheet Loan Commit_4
Off-Balance Sheet Loan Commitments - Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Noninterest Expense | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Credit loss expense (benefit) | $ (769) | $ (476) | $ (922) |
Other Liabilities | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Allowance for credit losses on off balance sheet credit exposures | $ 2,838 | $ 3,606 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets measured at fair value on a recurring basis | ||
Securities available for sale | $ 299,644 | $ 254,504 |
Equity securities with readily determinable fair values | 4,488 | 5,191 |
Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 299,644 | 254,504 |
Equity securities with readily determinable fair values | 4,488 | 5,191 |
Loans held for sale | 1,236 | 5,641 |
Indemnification asset | 1,497 | 3,896 |
Revenue share asset | 2,516 | 5,515 |
Mortgage-backed securities, residential | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 55,839 | 50,633 |
Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 55,839 | 50,633 |
Asset-backed securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,170 | 6,331 |
Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,170 | 6,331 |
State and municipal | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 4,515 | 13,438 |
State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 4,515 | 13,438 |
CLO Securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 236,291 | 181,011 |
CLO Securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 236,291 | 181,011 |
Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 275 | 1,263 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 275 | 1,263 |
SBA pooled securities | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,554 | 1,828 |
SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,554 | 1,828 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Equity securities with readily determinable fair values | 4,488 | 5,191 |
Loans held for sale | 0 | 0 |
Indemnification asset | 0 | 0 |
Revenue share asset | 0 | 0 |
Level 1 | Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | CLO Securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 1 | SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 299,644 | 254,504 |
Equity securities with readily determinable fair values | 0 | 0 |
Loans held for sale | 1,236 | 5,641 |
Indemnification asset | 0 | 0 |
Revenue share asset | 0 | 0 |
Level 2 | Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 55,839 | 50,633 |
Level 2 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,170 | 6,331 |
Level 2 | State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 4,515 | 13,438 |
Level 2 | CLO Securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 236,291 | 181,011 |
Level 2 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 275 | 1,263 |
Level 2 | SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 1,554 | 1,828 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Equity securities with readily determinable fair values | 0 | 0 |
Loans held for sale | 0 | 0 |
Indemnification asset | 1,497 | 3,896 |
Revenue share asset | 2,516 | 5,515 |
Level 3 | Mortgage-backed securities, residential | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | Asset-backed securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | State and municipal | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | CLO Securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | Corporate bonds | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | 0 | 0 |
Level 3 | SBA pooled securities | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Sep. 06, 2022 agreement portfolio | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of agreements to sell factored receivables | agreement | 2 | |||
Number of portfolios of factored receivables sold | portfolio | 2 | |||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value on a non-recurring basis | $ 0 | $ 0 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored receivables | Factored Receivable Disposal Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Future gross monthly revenue to be received (as a percent) | 15% | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Indemnification asset, expected cash payments to be received | $ 1,575 | $ 4,101 | ||
Discount rate | 5% | 5% | ||
Revenue share asset, expected cash payments to be received | $ 3,329 | $ 7,613 | ||
Level 3 | Measurement Input Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue share asset, discount rate | 10% | 10% | ||
Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Selling and closing costs for loans as a percentage of appraised value | 5% | |||
Minimum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored receivables | Factored Receivable Disposal Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Future gross monthly revenue to be received (as a percent) | 15% | |||
Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Selling and closing costs for loans as a percentage of appraised value | 8% | |||
Maximum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Factored receivables | Factored Receivable Disposal Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Future gross monthly revenue to be received (as a percent) | 20% |
Fair Value Disclosures - Reconc
Fair Value Disclosures - Reconciliation of Fair Value of Contingent Consideration (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Indemnification Asset | |||
Indemnification Asset and Revenue Share Asset | |||
Beginning balance | $ 3,896 | $ 4,786 | $ 36,225 |
Asset recognized | 0 | 0 | 0 |
Change in estimated fair value of asset recognized in earnings | (734) | (890) | 4,194 |
Recognized / payments received | (1,665) | 0 | (35,633) |
Ending balance | 1,497 | 3,896 | 4,786 |
Revenue Share Asset | |||
Indemnification Asset and Revenue Share Asset | |||
Beginning balance | 5,515 | 0 | 0 |
Asset recognized | 0 | 6,237 | 0 |
Change in estimated fair value of asset recognized in earnings | (1,743) | (62) | 0 |
Recognized / payments received | (1,256) | (660) | 0 |
Ending balance | $ 2,516 | $ 5,515 | $ 0 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value of Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investment without readily determinable fair value | $ 75,977 | $ 49,182 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 55,247 | 74,764 |
Equity investment without readily determinable fair value | 38,088 | |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,480 | 269 |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | 1-4 family residential properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 37 | 46 |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 20,870 | 6,994 |
Fair Value, Measurements, Nonrecurring | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 32,860 | 29,367 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 38,088 |
Equity investment without readily determinable fair value | 38,088 | |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | 1-4 family residential properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Equity investment without readily determinable fair value | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | 1-4 family residential properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 55,247 | 36,676 |
Equity investment without readily determinable fair value | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 1,480 | 269 |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | 1-4 family residential properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 37 | 46 |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | 20,870 | 6,994 |
Fair Value, Measurements, Nonrecurring | Level 3 | Collateral dependent loans | Factored receivables | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure, nonrecurring | $ 32,860 | $ 29,367 |
Fair Value Disclosures - Estima
Fair Value Disclosures - Estimated Fair Value of Company's Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and cash equivalents, carrying amount | $ 286,635 | $ 408,182 |
FHLB and other restricted stock, carrying amount | 14,278 | 6,252 |
Securities - held to maturity, fair value | 4,015 | 5,476 |
Financial liabilities: | ||
Customer repurchase agreements | 0 | 340 |
Federal Home Loan Bank advances | 255,000 | 30,000 |
Subordinated notes, carrying amount | 108,678 | 107,800 |
Junior subordinated debentures, carrying amount | 41,740 | 41,158 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents, carrying amount | 286,635 | 408,182 |
Securities - held to maturity, carrying amount | 2,977 | 4,077 |
Loans not previously presented, gross, carrying amount | 4,107,853 | 4,088,411 |
FHLB and other restricted stock, carrying amount | 14,278 | 6,252 |
Accrued interest receivable, carrying amount | 34,597 | 21,977 |
Financial liabilities: | ||
Deposits, carrying amount | 3,977,478 | 4,171,336 |
Customer repurchase agreements | 340 | |
Federal Home Loan Bank advances | 255,000 | 30,000 |
Subordinated notes, carrying amount | 108,678 | 107,800 |
Junior subordinated debentures, carrying amount | 41,740 | 41,158 |
Accrued interest payable, carrying amount | 7,429 | 2,830 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 286,635 | 408,182 |
Securities - held to maturity, fair value | 4,015 | 5,476 |
Loans not previously presented, gross, fair value | 4,049,338 | 3,993,430 |
Accrued interest receivable, fair value | 34,597 | 21,977 |
Financial liabilities: | ||
Deposits, fair value | 3,971,391 | 4,159,695 |
Customer repurchase agreements, fair value | 340 | |
Federal Home Loan Bank advances, fair value | 255,000 | 30,000 |
Subordinated notes, fair value | 90,084 | 104,400 |
Junior subordinated debentures, fair value | 43,072 | 42,721 |
Accrued interest payable, fair value | 7,429 | 2,830 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 286,635 | 408,182 |
Securities - held to maturity, fair value | 0 | 0 |
Loans not previously presented, gross, fair value | 105,145 | 187,729 |
Accrued interest receivable, fair value | 34,597 | 21,977 |
Financial liabilities: | ||
Deposits, fair value | 0 | 0 |
Customer repurchase agreements, fair value | 0 | |
Federal Home Loan Bank advances, fair value | 0 | 0 |
Subordinated notes, fair value | 0 | 0 |
Junior subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | 7,429 | 2,830 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 0 | 0 |
Securities - held to maturity, fair value | 0 | 0 |
Loans not previously presented, gross, fair value | 0 | 0 |
Accrued interest receivable, fair value | 0 | 0 |
Financial liabilities: | ||
Deposits, fair value | 3,971,391 | 4,159,695 |
Customer repurchase agreements, fair value | 340 | |
Federal Home Loan Bank advances, fair value | 255,000 | 30,000 |
Subordinated notes, fair value | 90,084 | 104,400 |
Junior subordinated debentures, fair value | 43,072 | 42,721 |
Accrued interest payable, fair value | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 0 | 0 |
Securities - held to maturity, fair value | 4,015 | 5,476 |
Loans not previously presented, gross, fair value | 3,944,193 | 3,805,701 |
Accrued interest receivable, fair value | 0 | 0 |
Financial liabilities: | ||
Deposits, fair value | 0 | 0 |
Customer repurchase agreements, fair value | 0 | |
Federal Home Loan Bank advances, fair value | 0 | 0 |
Subordinated notes, fair value | 0 | 0 |
Junior subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | $ 0 | $ 0 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Loans to Executive Officers, Directors, and Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transactions [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
New loans and advances | 49,583 | 0 |
Repayments and sales | (442) | 0 |
Ending balance | $ 49,141 | $ 0 |
Related-Party Transactions - Na
Related-Party Transactions - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transactions [Abstract] | ||
Deposits | $ 162,868 | $ 100,742 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Triumph Financial, Inc. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), actual amount | $ 806,667 | $ 829,928 |
Total capital (to risk weighted assets), actual ratio | 0.167 | 0.177 |
Total capital (to risk weighted assets), minimum for capital adequacy purposes amount | $ 385,370 | $ 375,109 |
Total capital (to risk weighted assets), minimum for capital adequacy purposes ratio | 0.080 | 0.080 |
Tier 1 capital (to risk weighted assets), actual amount | $ 661,833 | $ 684,381 |
Tier 1 capital (to risk weighted assets), actual ratio | 0.137 | 0.146 |
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount | $ 289,027 | $ 281,252 |
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio | 0.060 | 0.060 |
Common equity Tier 1 capital (to risk weighted assets), actual amount | $ 575,093 | $ 598,223 |
Common equity Tier 1 capital (to risk weighted assets), actual ratio | 0.119 | 0.127 |
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount | $ 216,770 | $ 211,969 |
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio | 0.045 | 0.045 |
Tier 1 capital (to average assets), actual amount | $ 661,833 | $ 684,381 |
Tier 1 capital (to average assets) , actual ratio | 0.126 | 0.130 |
Tier 1 capital (to average assets), minimum for capital adequacy purposes amount | $ 209,518 | $ 210,579 |
Tier 1 capital (to average assets), minimum for capital adequacy purposes ratio | 0.040 | 0.040 |
TBK Bank, SSB | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk weighted assets), actual amount | $ 758,656 | $ 732,785 |
Total capital (to risk weighted assets), actual ratio | 0.159 | 0.158 |
Total capital (to risk weighted assets), minimum for capital adequacy purposes amount | $ 382,508 | $ 371,030 |
Total capital (to risk weighted assets), minimum for capital adequacy purposes ratio | 0.080 | 0.080 |
Total capital (to risk weighted assets), amount to be well capitalized under prompt corrective action provisions | $ 478,135 | $ 463,788 |
Total capital (to risk weighted assets), ratio to be well capitalized under prompt corrective action provisions | 0.100 | 0.100 |
Tier 1 capital (to risk weighted assets), actual amount | $ 725,383 | $ 697,022 |
Tier 1 capital (to risk weighted assets), actual ratio | 0.152 | 0.150 |
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount | $ 286,881 | $ 278,809 |
Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio | 0.060 | 0.060 |
Tier 1 capital (to risk weighted assets), amount to be well capitalized under prompt corrective action provisions | $ 382,508 | $ 371,745 |
Tier 1 capital (to risk weighted assets), ratio to be well capitalized under prompt corrective action provisions | 0.080 | 0.080 |
Common equity Tier 1 capital (to risk weighted assets), actual amount | $ 725,383 | $ 697,022 |
Common equity Tier 1 capital (to risk weighted assets), actual ratio | 0.152 | 0.150 |
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes amount | $ 215,161 | $ 209,107 |
Common equity Tier 1 capital (to risk weighted assets), minimum for capital adequacy purposes ratio | 0.045 | 0.045 |
Common equity Tier 1 capital (to risk weighted assets), amount to be well capitalized under prompt corrective action provisions | $ 310,787 | $ 302,043 |
Common equity Tier 1 capital (to risk weighted assets), ratio to be well capitalized under prompt corrective action provisions | 0.065 | 0.065 |
Tier 1 capital (to average assets), actual amount | $ 725,383 | $ 697,022 |
Tier 1 capital (to average assets) , actual ratio | 0.139 | 0.132 |
Tier 1 capital (to average assets), minimum for capital adequacy purposes amount | $ 209,406 | $ 211,219 |
Tier 1 capital (to average assets), minimum for capital adequacy purposes ratio | 0.040 | 0.040 |
Tier 1 capital (to average assets), amount to be well capitalized under prompt corrective action provisions | $ 261,758 | $ 264,023 |
Tier 1 capital (to average assets), ratio to be well capitalized under prompt corrective action provisions | 0.050 | 0.050 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Preferred Stock (Details) - Series C Preferred Stock - USD ($) | 12 Months Ended | ||
Jun. 19, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||
Shares authorized (in shares) | 51,750 | 51,750 | |
Shares issued (in shares) | 45,000 | 45,000 | 45,000 |
Shares outstanding (in shares) | 45,000 | 45,000 | |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Liquidation preference amount | $ 45,000,000 | $ 45,000,000 | |
Dividend rate | 7.125% | 7.125% | 7.125% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||
May 04, 2023 USD ($) | Apr. 28, 2023 shares | Feb. 01, 2023 USD ($) shares | Jun. 19, 2020 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) shares | Nov. 07, 2022 USD ($) | May 23, 2022 USD ($) | Feb. 07, 2022 USD ($) | |
Class of Stock [Line Items] | |||||||||||
Payments for repurchase of common stock | $ 81,623,000 | $ 76,714,000 | $ 1,241,000 | ||||||||
Series C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock issued (in shares) | shares | 45,000 | 45,000 | 45,000 | 45,000 | |||||||
Dividend rate | 7.125% | 7.125% | 7.125% | ||||||||
Par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||||
Depositary shares (in shares) | shares | 1,800,000 | ||||||||||
Depositary shares, ownership interest | 0.025 | ||||||||||
Proceeds from issuance of preferred stock, gross | $ 45,000,000 | ||||||||||
Issuance of preferred stock, net of issuance costs | $ 42,364,000 | ||||||||||
Stock Repurchase Program | |||||||||||
Class of Stock [Line Items] | |||||||||||
Amount authorized under stock repurchase program | $ 50,000,000 | $ 75,000,000 | $ 50,000,000 | ||||||||
Shares repurchased into treasury stock (in shares) | shares | 709,795 | 0 | |||||||||
Repurchase program authorization period | 1 year | ||||||||||
Average price of shares repurchased into treasury stock (in dollars per share) | $ / shares | $ 70.41 | ||||||||||
Payments for repurchase of common stock | $ 50,000,000 | ||||||||||
Dutch Auction Tender Offer | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares repurchased into treasury stock (in shares) | shares | 408,615 | ||||||||||
Average price of shares repurchased into treasury stock (in dollars per share) | $ / shares | $ 58 | ||||||||||
Payments for repurchase of common stock | $ 24,772,000 | ||||||||||
Tender offer fees and expenses | $ 1,072,000 | ||||||||||
ASR Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Amount authorized under stock repurchase program | $ 70,000,000 | $ 100,000,000 | |||||||||
Shares repurchased into treasury stock (in shares) | shares | 247,954 | 961,373 | |||||||||
Percent of authorized shares repurchased | 80% |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Common Stock (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
Shares issues (in shares) | 28,986,255 | 28,321,716 |
Treasury shares (in shares) | (5,683,841) | (4,268,131) |
Shares outstanding (in shares) | 23,302,414 | 24,053,585 |
Par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 13,228 | $ 21,176 | $ 20,315 | ||
Issuance of common stock pursuant to the employee stock purchase plan (in shares) | 37,909 | 24,516 | 9,101 | ||
2014 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares approved for issuance (in shares) | 2,900,000 | ||||
2014 Omnibus Incentive Plan | Restricted Stock Awards (RSAs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, fair value of shares vested | $ 5,629 | $ 8,918 | $ 6,604 | ||
Total unrecognized compensation cost | $ 1,862 | ||||
Weighted-average period to recognize cost | 1 year 3 months 21 days | ||||
2014 Omnibus Incentive Plan | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, fair value of shares vested | $ 5,863 | 0 | 0 | ||
Weighted-average period to recognize cost | 2 years 9 months 10 days | ||||
Total unrecognized compensation cost, options | $ 7,679 | ||||
2014 Omnibus Incentive Plan | Performance stock units - market based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, fair value of shares vested | 6,302 | 1,458 | 0 | ||
Total unrecognized compensation cost | $ 5,740 | ||||
Weighted-average period to recognize cost | 2 years 1 month 6 days | ||||
2014 Omnibus Incentive Plan | Performance Based Performance Stock Units (Performance Based PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 0 | $ 6,966 | $ 7,405 | ||
Total unrecognized compensation cost | $ 0 | ||||
Stock based compensation, award vesting percentage | 142% | ||||
Award performance period before vesting period | 3 years | ||||
2014 Omnibus Incentive Plan | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting period | 4 years | ||||
Weighted-average period to recognize cost | 2 years 10 months 24 days | ||||
Total unrecognized compensation cost, options | $ 1,191 | ||||
Employees stock options contractual terms | 10 years | ||||
2014 Omnibus Incentive Plan | Maximum | Restricted Stock Awards (RSAs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting period | 4 years | ||||
2014 Omnibus Incentive Plan | Maximum | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting period | 5 years | ||||
2014 Omnibus Incentive Plan | Maximum | Performance stock units - market based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting period | 5 years | ||||
Stock based compensation, award vesting percentage | 175% | ||||
Stock based compensation, award vesting percentage, potential multiplier | 200% | ||||
2014 Omnibus Incentive Plan | Maximum | Performance Based Performance Stock Units (Performance Based PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting percentage | 200% | ||||
2014 Omnibus Incentive Plan | Minimum | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting period | 4 years | ||||
2014 Omnibus Incentive Plan | Minimum | Performance stock units - market based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting period | 3 years | ||||
Stock based compensation, award vesting percentage | 0% | ||||
2014 Omnibus Incentive Plan | Minimum | Performance Based Performance Stock Units (Performance Based PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation, award vesting percentage | 0% | ||||
2019 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 2,500,000 | ||||
Purchase price of common stock, percentage | 85% | ||||
Purchase offering period | 6 months |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Company's Nonvested Awards (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock Awards (RSAs) | |
Shares | |
Beginning balance (in shares) | 230,486 |
Granted (in shares) | 13,374 |
Vested (in shares) | (107,623) |
Forfeited (in shares) | (13,306) |
Ending balance (in shares) | 122,931 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 70.34 |
Granted (in dollars per share) | $ / shares | 59.69 |
Vested (in dollars per share) | $ / shares | 60.34 |
Forfeited (in dollars per share) | $ / shares | 74.95 |
Ending balance (in dollars per share) | $ / shares | $ 77.14 |
Restricted Stock Units (RSUs) | |
Shares | |
Beginning balance (in shares) | 211,300 |
Granted (in shares) | 139,836 |
Vested (in shares) | (114,509) |
Forfeited (in shares) | (6,593) |
Ending balance (in shares) | 230,034 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 59.45 |
Granted (in dollars per share) | $ / shares | 52.59 |
Vested (in dollars per share) | $ / shares | 43.19 |
Forfeited (in dollars per share) | $ / shares | 61.87 |
Ending balance (in dollars per share) | $ / shares | $ 63.30 |
Market Based Performance Stock Units (Market Based PSUs) | |
Shares | |
Beginning balance (in shares) | 112,486 |
Granted (in shares) | 78,872 |
Incremental shares earned (in shares) | 52,694 |
Vested (in shares) | (122,969) |
Forfeited (in shares) | (5,003) |
Ending balance (in shares) | 116,080 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 55.57 |
Granted (in dollars per share) | $ / shares | 78.15 |
Vested (in dollars per share) | $ / shares | 36.10 |
Forfeited (in dollars per share) | $ / shares | 77.71 |
Ending balance (in dollars per share) | $ / shares | $ 81.74 |
Performance Based Performance Stock Units (Performance Based PSUs) | |
Shares | |
Beginning balance (in shares) | 255,738 |
Granted (in shares) | 0 |
Incremental shares earned (in shares) | 107,404 |
Vested (in shares) | (363,142) |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 0 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 39.57 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 39.57 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 0 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Market Based Performance Stock Units, Valuation Assumptions (Details) - Market Based Performance Stock Units (Market Based PSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | 3 years | 3 years |
Stock price (in dollars per share) | $ 51.25 | $ 69.44 | $ 88.63 |
Stock price volatility | 49.33% | 55.17% | 51.71% |
Risk-free rate | 3.76% | 2.84% | 0.35% |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Changes in Company's Stock Options (Details) - Stock options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 195,398 |
Granted (in shares) | shares | 57,930 |
Exercised (in shares) | shares | (17,139) |
Forfeited (in shares) | shares | (3,195) |
Expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 232,994 |
Fully vested and shares expected to vest (in shares) | shares | 232,994 |
Shares exercisable (in shares) | shares | 137,216 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per shares) | $ / shares | $ 39.48 |
Granted (in dollars per shares) | $ / shares | 51.25 |
Exercised (in dollars per shares) | $ / shares | 22.74 |
Forfeited (in dollars per shares) | $ / shares | 56.73 |
Expired (in dollars per shares) | $ / shares | 0 |
Ending balance (in dollars per shares) | $ / shares | 43.40 |
Fully vested shares and shares expected to vest (in dollars per shares) | $ / shares | 43.40 |
Shares exercisable (in dollars per shares) | $ / shares | $ 34.01 |
Outstanding, weighed average remaining contractual term | 6 years 2 months 15 days |
Fully vested shares and shares expected to vest, weighed average remaining contractual term | 6 years 2 months 15 days |
Shares exercisable, weighed average remaining contractual term | 4 years 6 months |
Outstanding, aggregate intrinsic value | $ | $ 8,713 |
Fully vested shares and shares expected to vest, aggregate intrinsic value | $ | 8,713 |
Shares exercisable, aggregate intrinsic value | $ | $ 6,407 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule of Information Related to Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from option exercises, net | $ 144 | $ 577 | |
Cash received from option exercises, net | $ (74) | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of options exercised | 723 | 280 | 5,304 |
Cash received from option exercises, net | 144 | 577 | |
Cash received from option exercises, net | (74) | ||
Tax benefit realized from option exercises | $ 152 | $ 59 | $ 1,114 |
Weighted average fair value of options granted (per share) (in dollars per share) | $ 25.20 | $ 32.15 | $ 35.37 |
Fair value of vested awards | $ 532 | $ 423 | $ 381 |
Stock Based Compensation - Fair
Stock Based Compensation - Fair Value of Stock Options Granted Using Weighted-Average Assumptions (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.38% | 2.77% | 1.16% |
Expected term | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Expected stock price volatility | 45.65% | 43.33% | 39.26% |
Dividend yield | 0% | 0% | 0% |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash and cash equivalents | $ 286,635 | $ 408,182 | ||
Securities - held to maturity | 2,977 | 4,077 | ||
Other assets | 188,600 | 145,380 | ||
Total assets | 5,347,334 | 5,333,783 | ||
LIABILITIES AND EQUITY | ||||
Subordinated notes | 108,678 | 107,800 | ||
Junior subordinated debentures | 41,740 | 41,158 | ||
Total liabilities | 4,482,934 | 4,444,812 | ||
Stockholders' equity | 864,400 | 888,971 | $ 858,864 | $ 726,781 |
Total liabilities and stockholders' equity | 5,347,334 | 5,333,783 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 44,029 | 92,338 | ||
Securities - held to maturity | 2,977 | 4,077 | ||
Investment in bank subsidiary | 969,894 | 943,084 | ||
Investment in non-bank subsidiaries | 193 | 194 | ||
Other assets | 2,930 | 4,568 | ||
Total assets | 1,020,023 | 1,044,261 | ||
LIABILITIES AND EQUITY | ||||
Subordinated notes | 108,678 | 107,800 | ||
Junior subordinated debentures | 41,740 | 41,158 | ||
Intercompany payables | 346 | 365 | ||
Accrued expenses and other liabilities | 4,859 | 5,967 | ||
Total liabilities | 155,623 | 155,290 | ||
Stockholders' equity | 864,400 | 888,971 | ||
Total liabilities and stockholders' equity | $ 1,020,023 | $ 1,044,261 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest income | $ 422,421 | $ 419,239 | $ 387,555 |
Interest expense | (54,342) | (18,747) | (18,425) |
Credit loss (expense) benefit | (12,203) | (6,925) | 8,830 |
Other income | 54,501 | ||
Salaries and employee benefits expense | (210,607) | (201,487) | (173,951) |
Other expense | (34,068) | (33,146) | (29,568) |
Income tax (expense) benefit | (11,734) | (34,693) | (31,980) |
Net income | 41,081 | 102,311 | 112,974 |
Dividends on preferred stock | (3,206) | (3,206) | (3,206) |
Net income available to common stockholders | 37,875 | 99,105 | 109,768 |
Comprehensive income attributable to Parent | 45,055 | 87,377 | 115,189 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest income | 175 | 174 | 100 |
Interest expense | (9,702) | (7,874) | (8,220) |
Credit loss (expense) benefit | (746) | (362) | (56) |
Other income | 134 | 80 | 53 |
Salaries and employee benefits expense | (639) | (729) | (618) |
Other expense | (3,378) | (2,701) | (2,379) |
Income (loss) before income tax and income from subsidiaries | (14,156) | (11,412) | (11,120) |
Income tax (expense) benefit | 2,944 | 2,150 | 2,202 |
Dividends from subsidiaries and equity in undistributed subsidiary income | 52,293 | 111,573 | 121,892 |
Net income | 41,081 | 102,311 | 112,974 |
Dividends on preferred stock | (3,206) | (3,206) | (3,206) |
Net income available to common stockholders | 37,875 | 99,105 | 109,768 |
Comprehensive income attributable to Parent | $ 45,055 | $ 87,377 | $ 115,189 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 41,081 | $ 102,311 | $ 112,974 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Net accretion of securities | (844) | (882) | (992) |
Amortization of junior subordinated debentures | 582 | 556 | 530 |
Amortization of subordinated notes issuance costs | 878 | 843 | 1,224 |
Stock based compensation | 13,228 | 21,176 | 20,315 |
Change in other assets | (45,117) | (35,176) | (8,684) |
Net cash provided by (used in) operating activities | 43,200 | 74,487 | 136,959 |
Cash flows from investing activities: | |||
Proceeds from maturities, calls, and pay downs of securities held to maturity | 529 | 679 | 1,003 |
Net cash provided by (used in) investing activities | (112,695) | 672,382 | 77,656 |
Cash flows from financing activities: | |||
Dividends on preferred stock | (3,206) | (3,206) | (3,206) |
Purchase of treasury stock | (81,623) | (76,714) | (1,241) |
Stock option exercises | 144 | 577 | |
Stock option exercises | (74) | ||
Proceeds from employee stock purchase plan common stock issuance | 1,831 | 1,548 | 449 |
Net cash provided by (used in) financing activities | (52,052) | (721,865) | (145,830) |
Net increase (decrease) in cash and cash equivalents | (121,547) | 25,004 | 68,785 |
Cash and cash equivalents at end of period | 286,635 | 408,182 | 383,178 |
Cash and cash equivalents at beginning of period | 408,182 | 383,178 | 314,393 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 41,081 | 102,311 | 112,974 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed subsidiary income | (10,293) | 1,427 | (121,892) |
Net accretion of securities | (175) | (171) | (87) |
Amortization of junior subordinated debentures | 582 | 556 | 530 |
Amortization of subordinated notes issuance costs | 878 | 843 | 1,224 |
Stock based compensation | 719 | 686 | 420 |
Credit loss expense (benefit) | 746 | 362 | 56 |
Change in other assets | 1,638 | (4,089) | 387 |
Change in accrued expenses and other liabilities | (1,127) | 3,650 | 546 |
Net cash provided by (used in) operating activities | 34,049 | 105,575 | (5,842) |
Cash flows from investing activities: | |||
Investment in subsidiaries | (33) | 0 | 3,383 |
Proceeds from maturities, calls, and pay downs of securities held to maturity | 529 | 679 | 1,003 |
Net cash provided by (used in) investing activities | 496 | 679 | 4,386 |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated notes, net | 0 | 0 | 68,224 |
Repayment of subordinated notes | 0 | 0 | (50,000) |
Dividends on preferred stock | (3,206) | (3,206) | (3,206) |
Purchase of treasury stock | (81,623) | (76,714) | (1,241) |
Stock option exercises | 144 | 577 | |
Stock option exercises | (74) | ||
Proceeds from employee stock purchase plan common stock issuance | 1,831 | 1,548 | 449 |
Net cash provided by (used in) financing activities | (82,854) | (78,446) | 14,803 |
Net increase (decrease) in cash and cash equivalents | (48,309) | 27,808 | 13,347 |
Cash and cash equivalents at end of period | 44,029 | 92,338 | 64,530 |
Cash and cash equivalents at beginning of period | $ 92,338 | $ 64,530 | $ 51,183 |
Earnings Per Share - Factors Us
Earnings Per Share - Factors Used in Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net income to common stockholders | $ 37,875 | $ 99,105 | $ 109,768 |
Weighted average common shares outstanding (in shares) | 23,208,086 | 24,393,954 | 24,736,713 |
Basic earnings per common share (in dollars per share) | $ 1.63 | $ 4.06 | $ 4.44 |
Diluted | |||
Net income to common stockholders | $ 37,875 | $ 99,105 | $ 109,768 |
Weighted average common shares outstanding (in shares) | 23,208,086 | 24,393,954 | 24,736,713 |
Dilutive effects of: | |||
Average shares and dilutive potential common shares (in shares) | 23,562,377 | 25,023,568 | 25,252,052 |
Diluted earnings per common share (in dollars per share) | $ 1.61 | $ 3.96 | $ 4.35 |
Stock options | |||
Dilutive effects of: | |||
Stock based compensation (in shares) | 78,679 | 90,841 | 130,198 |
Restricted stock awards | |||
Dilutive effects of: | |||
Stock based compensation (in shares) | 98,408 | 148,630 | 170,276 |
Restricted stock units | |||
Dilutive effects of: | |||
Stock based compensation (in shares) | 91,454 | 98,139 | 76,049 |
Performance stock units - market based | |||
Dilutive effects of: | |||
Stock based compensation (in shares) | 84,869 | 122,123 | 136,199 |
Performance stock units - performance based | |||
Dilutive effects of: | |||
Stock based compensation (in shares) | 0 | 167,187 | 0 |
Employee stock purchase plan | |||
Dilutive effects of: | |||
Stock based compensation (in shares) | 881 | 2,694 | 2,617 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Shares not Considered in Computing Diluted Earnings per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 100,818 | 49,379 | 16,939 |
Restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 0 | 6,348 | 8,463 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 7,500 | 11,250 | 15,000 |
Performance stock units - market based | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 12,020 | 45,296 | 0 |
Performance stock units - performance based | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 0 | 0 | 259,383 |
Employee stock purchase plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares (in shares) | 0 | 0 | 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Gross loans | $ 4,163,100 | $ 4,120,291 |
Commercial loans | ||
Disaggregation of Revenue [Line Items] | ||
Gross loans | $ 1,170,365 | 1,251,110 |
Payments Segment | ||
Disaggregation of Revenue [Line Items] | ||
Deferred sales commissions amortization period | 2 years | |
Deferred set-up costs amortization period | 4 years | |
Deferred sales commissions | $ 394 | 0 |
Deferred set-up costs | 505 | $ 0 |
Payments Segment | Broker | Commercial loans | ||
Disaggregation of Revenue [Line Items] | ||
Gross loans | $ 0 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Payment Segment Revenue (Details) - Payments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total fee income | $ 17,931 | $ 13,696 | $ 7,451 |
Broker fee income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee income | 12,215 | 8,441 | 3,480 |
Factor fee income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee income | 5,256 | 5,029 | 2,588 |
Other fee income | |||
Disaggregation of Revenue [Line Items] | |||
Total fee income | $ 460 | $ 226 | $ 1,383 |
Business Segment Information -
Business Segment Information - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Gross loans | $ 4,163,100 | $ 4,120,291 |
Commercial | ||
Segment Reporting Information [Line Items] | ||
Gross loans | 1,170,365 | $ 1,251,110 |
Broker fee income | Commercial | Payments | ||
Segment Reporting Information [Line Items] | ||
Gross loans | $ 0 |
Business Segment Information _2
Business Segment Information - Summary of Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total interest income | $ 422,421 | $ 419,239 | $ 387,555 |
Intersegment interest allocations | 0 | 0 | 0 |
Total interest expense | 54,342 | 18,747 | 18,425 |
Net interest income (expense) | 368,079 | 400,492 | 369,130 |
Credit loss expense (benefit) | 12,203 | 6,925 | (8,830) |
Net interest income (expense) after credit loss expense | 355,876 | 393,567 | 377,960 |
Gain on sale of subsidiary or division | 0 | ||
Noninterest income | 50,173 | 84,068 | 54,501 |
Other noninterest income | 54,501 | ||
Noninterest expense | 353,234 | 340,631 | 287,507 |
Net intersegment noninterest income (expense) | 0 | 0 | 0 |
Net income (loss) before income tax expense | 52,815 | 137,004 | 144,954 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Net intersegment noninterest income (expense) | 0 | 0 | 0 |
Total assets | 5,347,334 | 5,333,783 | |
Gross loans | 4,163,100 | 4,120,291 | |
Operating Segments | Banking | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 261,639 | 195,871 | 189,621 |
Total interest expense | 44,640 | 10,874 | 10,205 |
Net interest income (expense) | 248,449 | 204,909 | 180,548 |
Credit loss expense (benefit) | 8,498 | 2,753 | (19,016) |
Net interest income (expense) after credit loss expense | 239,951 | 202,156 | 199,564 |
Gain on sale of subsidiary or division | 0 | ||
Noninterest income | 23,964 | 40,984 | |
Other noninterest income | 33,374 | ||
Noninterest expense | 127,713 | 121,916 | 121,325 |
Net income (loss) before income tax expense | 136,202 | 121,224 | 111,613 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Total assets | 4,918,527 | 4,910,628 | |
Gross loans | 3,595,527 | 3,572,716 | |
Operating Segments | Factoring | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 144,217 | 207,114 | 185,741 |
Total interest expense | 0 | 0 | 0 |
Net interest income (expense) | 106,060 | 187,732 | 184,684 |
Credit loss expense (benefit) | 2,900 | 2,895 | 9,691 |
Net interest income (expense) after credit loss expense | 103,160 | 184,837 | 174,993 |
Gain on sale of subsidiary or division | 0 | ||
Noninterest income | 7,829 | 22,272 | |
Other noninterest income | 13,005 | ||
Noninterest expense | 79,612 | 91,673 | 74,928 |
Net income (loss) before income tax expense | 31,500 | 115,436 | 113,070 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Total assets | 1,077,367 | 1,260,209 | |
Gross loans | 941,926 | 1,151,727 | |
Operating Segments | Payments | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 16,390 | 16,079 | 12,093 |
Total interest expense | 0 | 0 | 0 |
Net interest income (expense) | 23,097 | 15,549 | 12,018 |
Credit loss expense (benefit) | 60 | 218 | 438 |
Net interest income (expense) after credit loss expense | 23,037 | 15,331 | 11,580 |
Gain on sale of subsidiary or division | 0 | ||
Noninterest income | 18,087 | 20,620 | |
Other noninterest income | 7,451 | ||
Noninterest expense | 61,695 | 63,231 | 39,768 |
Net income (loss) before income tax expense | (20,694) | (27,280) | (20,737) |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Total assets | 546,985 | 371,948 | |
Gross loans | 174,728 | 85,722 | |
Operating Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 175 | 175 | 100 |
Total interest expense | 9,702 | 7,873 | 8,220 |
Net interest income (expense) | (9,527) | (7,698) | (8,120) |
Credit loss expense (benefit) | 745 | 1,059 | 57 |
Net interest income (expense) after credit loss expense | (10,272) | (8,757) | (8,177) |
Gain on sale of subsidiary or division | 0 | ||
Noninterest income | 293 | 192 | |
Other noninterest income | 671 | ||
Noninterest expense | 84,214 | 63,811 | 51,486 |
Net income (loss) before income tax expense | (94,193) | (72,376) | (58,992) |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Total assets | 1,056,646 | 1,061,662 | |
Gross loans | 0 | 0 | |
Eliminations | |||
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Total assets | (2,252,191) | (2,270,664) | |
Gross loans | (549,081) | (689,874) | |
Eliminations | Banking | |||
Segment Reporting Information [Line Items] | |||
Intersegment interest allocations | 31,450 | 19,912 | 1,132 |
Net intersegment noninterest income (expense) | 0 | 0 | 0 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Net intersegment noninterest income (expense) | 0 | 0 | 0 |
Eliminations | Factoring | |||
Segment Reporting Information [Line Items] | |||
Intersegment interest allocations | (38,157) | (19,382) | (1,057) |
Net intersegment noninterest income (expense) | 123 | 0 | 0 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Factoring revenue received from Payments | 1,190 | ||
Payments revenue received from Factoring | (1,067) | ||
Net intersegment noninterest income (expense) | 123 | 0 | 0 |
Eliminations | Payments | |||
Segment Reporting Information [Line Items] | |||
Intersegment interest allocations | 6,707 | (530) | (75) |
Net intersegment noninterest income (expense) | (123) | 0 | 0 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Factoring revenue received from Payments | (1,190) | ||
Payments revenue received from Factoring | 1,067 | ||
Net intersegment noninterest income (expense) | (123) | 0 | 0 |
Eliminations | Corporate | |||
Segment Reporting Information [Line Items] | |||
Intersegment interest allocations | 0 | 0 | 0 |
Net intersegment noninterest income (expense) | 0 | 0 | 0 |
Net Intersegment Noninterest Income (Expense) [Abstract] | |||
Net intersegment noninterest income (expense) | $ 0 | $ 0 | $ 0 |